Our Next Big Industry

Article Body

Our Next Big Industry

By: Gov. Larry Rhoden

January 16, 2026

In my first year as Governor, we've taken some important steps to keep South Dakota safe. And while we do that, South Dakota is keeping the entire nation safe and secure.

In my State of the State Address, I declared that National Security would be South Dakota's next big industry. This builds on the proclamation of my predecessor, Former Governor Kristi Noem, who declared that cybersecurity would be South Dakota's "next big industry," and we've put real action behind those words. My declaration takes that success a step further.

This will be the major focus of my economic development efforts. National security creates major opportunities for South Dakota, and we need to seize them.

South Dakota is already punching above our weight in national security. Of course, Kristi Noem is our Secretary of Homeland Security; John Thune is our U.S. Senate Majority Leader; Senator Mike Rounds serves on the armed services committee, where he focuses on defense, intelligence, and cybersecurity; and the Secretary of the Air Force is a South Dakotan, Dr. Troy Meink.

Beyond those leaders, the next generation B-21 bomber is coming to Ellsworth Air Force Base in Western South Dakota. And our cybersecurity industry has grown by 350% over the last decade - the second-fastest growth in the nation.

Businesses are already recognizing South Dakota as a great place for national security companies. In my State of the State Address, I recognized MMS Products. They're a Sioux Falls-based warfare-technology company, and they're leading the field for innovation of drone munitions. Just last month, we announced that they received a $35 million contract from the Department of War to produce groundbreaking warheads for America's drone fleet.

And they won't be the last announcement we make. The continued growth and leadership of Ellsworth Air Force base will pave the way for economic development in national security. Dakota State University will continue leading the field in cybersecurity. And bold, innovative companies like MMS Products will continue to make important contributions to America's security. I talked to Senator Rounds about this last month, and he agreed that there is huge potential in this area.

We also recognize that food security is national security, and that is why I will continue to prioritize value-added ag. The new High Plains Processing plant near Mitchell and the CJ Schwan's development in Sioux Falls are each half-a-billion-dollar investments in our state. Both will create new markets and better prices for our farmers. I look forward to more announcements in value-added ag as well.

South Dakota's growing national security industry will tie all these elements - and more - together in a cohesive strategy. My Commissioner of Economic Development, Bill Even, calls it a "systems approach," and he is well positioned to help me deliver on this declaration.

With South Dakota's growing national security industry, we will keep our nation safe, and we will continue to keep South Dakota strong, safe, and free.

###