Pierre: Economy
Major Industries and Commercial Activity
Pierre serves as the major trading center for central South Dakota. Its economy is supported by government, agriculture, and recreational activities tied in with the Missouri River reservoirs. Pierre's retail area has a radius of 100 miles and comprises approximately 100,000 people. Nearby lakes Oahe and Sharpe, both reservoirs on the Missouri River, make it possible for Pierre businesses to enjoy low electric rates and abundant water for production processes.
Pierre's economy depends largely on the state government, which has its operations in the city and is the largest local employer. The largest private employer is St. Mary's Hospital, with 485 employees. Small businesses and tourism are the remaining sources of jobs and income. Tourism was spurred by the lakes created by the Missouri Basin Development Plan.
Agriculture remains an important part of the economy of Hughes County, home to about 380 farms. The principal crops in the area are wheat, rye, oats, wild hay, flax, corn, barley, mint, soy beans, and alfalfa. Farmers raise cattle, chickens, hogs, buffalo, and horses, and produce eggs and milk.
Items and goods produced: assembly metal works, water conditioners, helicopters, dairy products, bottled beverages, wheat, corn, barley, processed furs
Incentive Programs—New and Existing Companies
Local programs
Development assistance and financing programs are offered by the Pierre Economic Development Corporation (PEDCO) and the Economic Development Administration. Free business consultation and a local revolving loan fund have helped dozens of new businesses get started and older ones to expand. PEDCO also works with business owners contemplating selling their businesses, and offers a free office and manufacturing space database to help in finding locations for businesses. E-commerce is well supported through seminars and other programs. The Small Business Administration Development Center helps with business plan development, market surveys, cash flow projections, and financing options.
State programs
The South Dakota MicroLOAN program offers funds of up to $20,000 to qualifying businesses for working capital, equipment, real estate, or other fixed costs. The USDA Business & Industry Guaranteed Loans make funds available for working capital, equipment, buildings, and debt refinancing.
Job training programs
The Work Force Development Program provides companies with the money needed to train new and existing employees. Job Service of South Dakota and Capital University Center provide training in leadership, customer service, and business. The Capital University Center offers short-term training and certificate programs to meet the needs of businesses in central South Dakota. The Right Turn, a career learning center, offers programs to help individuals train for employment; programs include GED preparation and testing, the Alternative High School program, medical transcription, clerical/computer skills, and other short term training programs, a basic skills brush-up class, career/education counseling, and job search assistance.
Development Projects
Building projects that have been completed since the beginning of the new century include dedication of the $3.9 million Aquatic Center, the opening of a 72,000-square-foot distribution center for Running Supply Inc., and a $2 million city golf course renovation. On top of the recent $11 million addition to St. Mary's Healthcare Center, another $12 million expansion is underway there, and will include a new area for transitional care, kidney dialysis and rehabilitation. A ribbon cutting was held for the expanded, four-lane Pierre-to-Interstate connection. A brand new soccer complex also held its first statewide tournaments.
Economic Development Information: Pierre Economic Development Corporation (PEDCO), Business Expansion Office; telephone (605)224-6610; toll-free (800)962-2034
Commercial Shipping
In addition to the Pierre Municipal Airport, the city is served by numerous trucking companies, and package service is provided by Federal Express, United Parcel Service, DHL, and Airborne Express. The Dakota, Minnesota & Eastern Railroad also serves the city.
Labor Force and Employment Outlook
Well-known for its superb labor force, the Greater Pierre area has a labor force of approximately 14,000 people, and they have among the highest educational level in the state. The area has a good balance of skilled, semi-skilled, technical, and entry-level workers.
According to the Pierre Area Chamber of Commerce, the total number of employed residents was 13,480 out of a labor force figure for the entire area of 14,055. The South Dakota Department of Labor affirms that the fastest growing industries in the state are health care and social assistance, followed by accommodation and food services, finance and insurance, and construction. Industries that are declining on a statewide basis include local government positions, manufacturing, agriculture, forestry, fishing and hunting.
The following is a summary of data regarding the Pierre labor force as of April 2005.
Size of civilian labor force: 13,430
Number of workers employed in . . .
natural resources/mining/construction: 750
manufacturing: 100
trade, transportation, and utilities: 2,575
information: 185
financial activities: 680
professional and business services: 535
educational and health services: 1,360
leisure and hospitality: 1,590
other services: 725
government: 4,930
Average hourly earnings of production workers employed in manufacturing: Not reported
Unemployment rate: 3.7% (March 2005, South Dakota)
| Largest employers | Number of employees |
| South Dakota State Government | 2,140 |
| St. Mary's Healthcare Center | 485 |
| Pierre School District | 350 |
| Federal government | 240 |
| Dakotamart | 200 |
| Morris, Inc. | 150 |
| Pierre Indian Learning Center | 150 |
Cost of Living
The following is a summary of data regarding several key cost of living factors for the Pierre area.
2004 ACCRA Average House Price: Not reported
2004 ACCRA Cost of Living Index: Not reported
State income tax rate: None
State sales tax rate: 4.0%
Local income tax rate: None
Local sales tax rate: 2.0% (plus 1.0% on hotel/motel, restaurant, and liquor establishments. Food and drugs are exempt)
Property tax rate: $3.71 per $1,000 of assessed valuation, city of Pierre, plus $23.53 per $1,000, Hughes County and schools (2001)
Economic Information: Pierre Area Chamber of Commerce, PO Box 548, Pierre, SD 57501; telephone (605)224-7361