The present municipality was formed in 1971 when the City of Skövde was amalgamated with five surrounding municipalities. The number of original entities (as of 1863) is nearly 30. They had in 1952 been reduced to six.
Industry
The sole largest employer in the municipality is Volvo, with Volvo Powertrain and Volvo Cars together employing approximately 5,000 people.
Other major employers are the hospital (Skaraborg Hospital, serving the Skaraborg region), the local regiments (among Sweden's largest) and the municipality itself.