Rapid City, South Dakota - Industry and Economy

Industry and Economy

Rapid City's economy is diverse, but has only a moderate amount of industry. Heavy and medium industrial activities include a Portland cement plant (constructed and owned for 84 years by the State of South Dakota and sold in 2003 to GCC, a Mexican-based conglomerate), Black Hills Ammunition an ammunition and reloading supplies manufacturing company, several custom sawmills, a lime plant, a computer peripheral component manufacturing plant, and several farm and ranch equipment manufacturers. Of particular note, Rapid City is the center for the manufacture of Black Hills Gold, a popular product with tourists and Westerners in general. Rapid City is also the location of the only manufacturer of stamping machines used for the labeling of plywood and chipboard products.

Although most gold mining has ceased in the Black Hills and was never done in or near Rapid City, mining of sand and gravel, as well as the raw materials for lime and Portland cement (including chemical-grade limestone, taconite iron ore, and gypsum) remains an important part of the economy.

The largest sector of the Rapid City economy is government services, including local, state, and federal. Major employers include Ellsworth Air Force Base, home of the 28th Bomb Wing flying the B-1B long-range bomber; the Army National Guard based at Camp Rapid and hosting annual exercises in the Black Hills drawing troops from five to ten states; and various federal agencies including the National Park Service, US Forest Service, and Indian Health Service.

The Rapid City Regional Hospital Healthcare System covers one of the largest expansions of territory in the United States. The health care sector employs over 8,000 persons in the Rapid City area.

Tourism is also a major portion of the Rapid City economy, due to the proximity of Mount Rushmore, Sturgis, home of the Sturgis Motorcycle Rally, Deadwood, and other attractions in the Black Hills. Rapid City is the major source of services for the Motorcycle Rally, and the Rally's demand for motel rooms, camp sites, and other services for tourists during the first week of August means that Rapid City has the capacity to host large conventions and large numbers of tourists year-round. Various minor tourist attractions, including wildlife parks, specialty shops, caves, water parks, private museums, and other businesses are found in and near Rapid City.

Other economic sectors include financial service and investing companies such as Waddell and Reed, Citibank, WaMu, Merrill Lynch, and Northwestern Mutual. Rapid City is the headquarters for Assurant Insurance's pre-need division and Rapid City has a strong medical services sector, and institutions of higher education. Rapid City is also the major market town for much of five states, drawing commerce from more than half of South Dakota, and large portions of North Dakota, Montana, Wyoming, and the Nebraska Panhandle.