A TALE OF TWO CITIES: SIOUX FALLS

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A TALE OF TWO CITIESSIOUX FALLS SIOUX CITY

• Ralph J. Brown
• Professor of Economics
• University of South Dakota
• www.usd.edu/rbrown

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Sioux Falls at the Falls
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Sioux City Skyline
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PURPOSE

• Study Sioux Falls Sioux City economies to
  determine
• a. Why is there such a difference in growth?
• b. How do these economies differ today?
• To gain some insights into factors explaining
  differential growth.

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DEFINITIONS

• Metropolitan Statistical Area (MSA)
• Old Definition
• SF(ML) SF (Minnehaha, Lincoln)
• SC(WD) SC (Woodbury, Dakota)
• New Definition-2003
• SF(MLMT) SF (Minnehaha, Lincoln, McCook, Turner
• SC(WDDU) SC (Woodbury, Dakota, Dixon, Union)

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POPULATION TRENDS
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POPULATION

• Population SF(MLMT) SC(WDDU)
• 1969 123,539 133,099
• 1980 139,185 135,714
• 1990 154,148 131,671
• 2002 194,802 142,714

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DEMOGRAPHIC DATA

• 2000 Census SF(MLMT) SC(SDDU)
• Median Age 34.1 34.2
• White 94 87
• Hispanic 2 10
• HS Grad 88 81
• Bach 25 19
• Poverty 7 10

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EMPLOYMENT TRENDS
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EMPLOYMENT PATTERNS

• 2000 CENSUS SF(MLMT) SC(WDDU)
• GOODS-
• PRODUCING 20 32
• SERVICE-
• PRODUCING 80 68

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MANUFACTURING EMPLOYMENT
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MANUFACTURING
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Manufacturing Companies

• Sioux Falls Sioux City
• John Morrell John Morrell
• Raven Ind Tyson
• Sencore Sioux Bee Honey
• Hutchinson Tech Jolly Time Popcorn
• Starmark Palmer Candy
• BSI Tech Beef Products
• Interbake Foods
• SC Brick Tile
• Terra Ind
• Wilson Trailer
• Kind Knox Gelatin
• Diosynth
• Prince Mfg

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SERVICE EMPLOYMENT
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Sioux Falls Important Events

• Mid 1970s 4 year medical school rural doctors
• Early 1980s Citibank
• Late 1980s Forward Sioux Falls

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HEALTH CARE EMPLOYMENT
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Hospitals

• Sioux Falls Sioux City
• Avera McKennan Mercy Medical Center
• Sioux Valley St. Lukes Medical Center
• Avera Heart Hospital Siouxland Surgery
• Childrens Care Hospital June Nylen Cancer
  Center
• Select Specialty Hospital
• Sioux Falls Surgical Center
• Veteran Affairs Medical Center
• Prairie States Surgical Center

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FINANCE, INS., REAL ESTATEEMPLOYMENT
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SF Customer Service Operations

• Company Employment
• Citigroup 3,200
• Wells Fargo 1,873
• First Premier 1,073
• HSBC 935
• Cigna Tel-Drug 700
• Dial 683
• Mid-Cont Comm 586
• CSD 504
• .
• .
• .
• Total 13,000 (2004)

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Income Growth

• Sioux Falls pulls ahead of Sioux City

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REAL INCOME PER CAPITA
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What Accounts for this Income Divergence?

• PI PERSONAL INCOME
• POP POPULATION
• EMP EMPLOYMENT
• PI/POP EMP X PI
• POP EMP

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MAJOR EXPLANATION HIGHER EMPLOYMENT/POPULATION
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EMP/POP RATIOS BY MSA

• US 58.0
• Boulder Co 77.3
• Madison WI 77.3
• Sioux Falls SD 76.7
• .
• .
• .
• Sioux City IA 65.3

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PER CAPITA INCOME DIFFERENCES
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ITS ALMOST ALL ABOUT JOB GROWTH

• Demographics-Age 18 to 65
• 61 vs 59
• Commuters
• 5.3 vs 8.9
• Part-time vs full-time workers
• 17.1 vs 16.9
• Higher participation rates by women 69 vs 61
  (1/4 of emp/pop ratio)

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Sioux Falls vs Adjacent States
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CONCLUSIONS

• Old Economy vs New Economy
• Diversification
• Mfg vs Service and employment growth
• Human Capital college degrees
• 25 vs 19
• Service
• financial
• health care

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THE END
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SF SC Total Employment

• Note growth differences
• SF passes SC in 1973.
• Note sensitivity of SC to recessions (shaded
  area).
• Note declining employment in SC in recent years.

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MANUFACTURING EMPLOYMENT
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Manufacturing Notes

• SC - High volatility of mfg employment and still
  above 20,000.
• SF - Steady decline of mfg to about 11 of total.