The local economy in Skagafjörður benefits from great variety. As a service center for the agricultural region, Sauðárkrókur has prospered as a town with diverse service and production companies. The obvious industrial clusters in Skagafjörður are food production, tourism and light industry, all benefiting from good infrastructure that has its foundations in years and years of craftsmanship and hospitality best described in the history of Sauðárkrókur, since the first inhabitant in the town was blacksmith that with his family opened an Inn, shortly after he built his home in 1871.
The growing number of projects and employees within biology and biotechnology in the area has proven to be a solid foundation supported with a local university. This cluster is still small, but taking leaps forward with new research labs and new projects.
A small cluster of IT companies and projects has been cultivating in the area. One of the largest IT company in Iceland operates a branch in Sauðárkrókur and freelancers and employees from other IT companies are taking advance of the good data connections the region. The local project of Fiber To the Home, has also resulted in great local IT knowledge in the region and is paving the path for the community towards becoming a SMART community.
Composites and manmade fibers is here defined as an upcoming cluster. The green and low priced energy in Iceland are ideal for producers of manmade fiber as well as other energy intensive industries. Skagafjörður has the objective of being the center of excellence in composites and manmade fibers in Iceland, by attracting researchers, institutes and companies in to the region.
Filmmaking is a new cluster in Skagafjörður. The scenic landscape of Skagafjörður with almost infinite possibilities of varied locations has attracted lot of directors in to the area through the years. The inhabitants are as well a great resource, since you can find in the area people with experience in lightning, sound, makeup and even a handful of directors. The service industry in the region is well capable of servicing large as well as small crews, with the hospitality sector and "we can..." state of mind leading the pact.