Silver Bay (2010 Census 1,887) was originally built for employees of the local taconite plant, and mining remains a major industry with a pilot iron nugget plant paving the way for regional growth.

Shipping and tourism also are strong industries. Great Lakes freighters regularly visit Silver Bay, as do hikers, snowmobilers, skiers and golfers. Lately, the city can add site selectors to that list, due to nearly 200 acres being designated tax-free property through the JOBZ initiative.