The biggest standout fact about South Dakota is its small-town success in industrial development. But then again, with a population of 764,000 that is nearly evenly split between rural and metro residency, what other kinds of towns would there be? In fact, judging a small town as 50,000 or fewer residents leaves two cities in South Dakota above that watermark: Sioux Falls (134,000) near the eastern state line and Rapid City (61,000) near the western state line.
      In 2003, four towns in the state hovering in the 18,000 to 24,000 range — Aberdeen, Brookings, Mitchell and Watertown — combined for 39 corporate projects, according to the Conway New Plant Database. And another one — Vermillion, a town of 10,000 tucked into the far southeastern corner of the state — garnered a plum in 2004.
      Moving from Akron, Iowa, mining equipment manufacturer Masaba Mining Equipment Inc. is bringing up to 50 jobs to the town, where it's building a 70,000-sq.-ft. (6,503-sq.-m.) facility in the Vermillion Industrial Park. Jerad Higman, president of Masaba, told the Lemars (Iowa) Daily Sentinel in September 2004, "We tried to stay here and went out of the way to do so. I am disappointed in the State of Iowa and Plymouth County. Akron should not have to shoulder the burden by itself."
      However, the environment in South Dakota was just more welcoming. "Masaba would like to thank Governor Rounds and all those involved at the State of South Dakota and the City of Vermillion for their commitment and efforts to make this project possible," said Higman.
      Clay County has a resolution that provides for a savings of property taxes in the first five years of construction for new structures as well as additions made to existing structures with a value greater than $30,000. In addition, the city council in November approved annexation of private property to allow construction of an access road to the Masaba property. Plans call for the creation of a tax increment financing district to support the project.
      Vermillion is also home to the University of South Dakota, the city's largest employer. The town's other major employers include Polaris Industries and Phase 2 Solutions.
      Watertown, a town of 20,000 that saw 27-percent population growth between 1990 and 2000, saw a big announcement in the fall of 2004 as well. AcroTech Midwest, whose parent firm AcroMetal Companies is based in Plymouth, Minn., said it was moving 125 jobs from its Minnesota home base in order to manufacture plastic fuel tanks for the RV market. In addition to leasing a $6-million build-to-suit, AcroTech is investing $10 million in equipment needed to help it meet new EPA requirements regarding fuel emissions. Acrotech, moving operations from Crosby, Minn., also operates a plant in Kerrville, Texas.
      "We determined that Watertown was the best fit for our business because of the work force and the rail spurs already in place," said AcroTech CEO Robert Levy. "The low utility costs and Lake Area Technical Institute were also critical factors in this decision." Among Acrotech's customers is the aforementioned Polaris.
      Local economic developers with Focus Watertown pointed out that the rail spur infrastructure had been completed for an ethanol plant two years previous, but with future development in mind. "It demonstrates how infrastructure development investment is essential to economic growth," said Focus Watertown President Richard Benda.
      Like Aberdeen, Brookings and Sioux Falls itself, Watertown is situated close to the Minnesota state line, ready to welcome companies looking west for opportunities to grow and profit.