A new CNBC study ranks South Dakota in the lower half of the country overall for business in 2025.
Some state leaders aren’t taking the rank as a negative, but as a goal to move forward.
South Dakota ranks 35th across 135 metrics in 10 categories of business competitiveness. That’s two spots lower than the same ranking last year.
The state scored particularly poorly in infrastructure, workforce and technology & innovation, receiving an “F” for all three categories. South Dakota and Nevada were tied for last for technology & innovation.
One factor in technology & innovation that’s measured is “each state’s role in the artificial intelligence revolution.” As Artificial Intelligence data centers begin to eye the state for potential sites, that’s an area South Dakota could see growth in the future.
Mike Bockorny is the CEO of the South Dakota Economic Development Professionals Association. He said this is a “tremendous opportunity for us to grow and be better.”
“If we’re not willing or able to look at data such as that and say, ‘Okay this is how others perceive us and how we score,’ and we don’t accept their criticism, then that’s shame on us," Bockorny said. "It’s a great opportunity for us to grow, and I will tell you the thing I look at and the thing that stuck out to me the most is with the exception of one state that borders us, which is Montana, that scores less than us on that survey.”
He said he’s planning to investigate why South Dakota is behind bordering states and see how we can move up the chain.
Gov. Larry Rhoden echoed similar sentiments saying, “we should look at it with open eyes.”
“Whatever their criteria was, the outcome is the same, and we should look at it not from a defensive standpoint, but to glean what information we can,” Rhoden said.
Rhoden added he’d like to take a deeper look at the study to gauge the results and see how fair they are. However, the report isn’t all bad said Lt. Gov. Tony Venhuizen.
“I do think it’s worth mentioning if you look at the subscores for business friendliness, South Dakota is second behind only North Dakota," Venhuizen said. "I mean as the governor says they take all these different categories and average them together, but if you believe South Dakota is a worse state for business than Minnesota, you just need to have your head examined.”
South Dakota also received a B+ for cost of doing business, and a B- for cost of living, both ranked 16th in the country.
