Iowa has recently emerged as a hub of business activity, marked by a series of expansions across various industries.
This growth wave is not only invigorating the state’s economy but also cementing Iowa’s reputation as a prime destination for business development.
Iowa offers a business-friendly environment characterized by competitive tax rates, financial incentives for businesses, and a regulatory framework that encourages entrepreneurship and innovation. This supportive environment helps attract and retain businesses across various industries.
Key Sectors Leading the Expansion
Advanced manufacturing is at the forefront of Iowa’s business expansion. Companies like John Deere and Collins Aerospace are investing heavily in their Iowa operations, driven by increased demand and technological advancements. John Deere has announced a major expansion in its Waterloo facility, which is expected to create hundreds of new jobs and significantly boost production capacity. This expansion underscores the critical role of agriculture and manufacturing in Iowa’s economy.
The Technology and Innovation sector in Iowa is also experiencing a boom. Major tech companies are setting up shop in the state, attracted by its skilled workforce and business-friendly environment. Companies like Workiva, a software firm based in Ames, have seen rapid growth, leading to the opening of new offices and the hiring of additional staff. The state’s focus on fostering innovation through initiatives like the Iowa Innovation Council has been pivotal in attracting tech investments.
Renewable Energy in the state continues to thrive, driven by the state’s commitment to sustainable energy solutions. With abundant wind and solar resources, Iowa has become a leader in renewable energy production. Companies like MidAmerican Energy are expanding their renewable energy projects, contributing to Iowa’s goal of achieving 100 percent renewable energy for its customers. This expansion not only provides environmental benefits but also creates numerous jobs in construction and maintenance.
The Logistics and Distribution industry in the state is growing rapidly, thanks to the state’s strategic location and excellent transportation infrastructure. Companies like Amazon have recognized the benefits of Iowa’s central location, leading to the establishment of new fulfillment centers. These facilities are not only enhancing the efficiency of supply chains but also creating thousands of jobs in the process.
Economic Impact and Job Creation
The recent business expansions in Iowa are having a profound impact on the state’s economy. The influx of investments is creating a ripple effect, leading to the development of ancillary industries and services. The increase in job opportunities is attracting a diverse workforce, contributing to population growth and urban development in key cities like Des Moines, Cedar Rapids, and Davenport.
State officials and business leaders are optimistic about the future, emphasizing the importance of continued investment in infrastructure, education, and workforce development. Programs aimed at upskilling workers and promoting STEM education are crucial in sustaining this growth trajectory.
Other Notable Expansions
Daisy Brand LLC, the leading manufacturer and largest brand of sour cream and cottage cheese in the U.S., announced last month its plans to expand operations to Boone, Iowa. This expansion is driven by the rising demand for Daisy’s products, necessitating an additional manufacturing facility.
The company plans to invest $626.5 million in a 750,000 square-foot facility, which will initially create 106 new jobs, with the potential to increase to 255 as demand grows. The Iowa Economic Development Authority (IEDA) board approved $7 million in direct financial assistance and tax benefits for the company.
“Daisy Brands investment in Iowa further reinforces our standing as a manufacturing powerhouse and our reputation for fostering an environment where businesses succeed and grow,” said Governor Reynolds. “With a third of the nations top food manufacturers located in Iowa and 26 percent of our manufacturing industry attributed to food processing, Iowa and Daisy are a perfect fit. From our dairy industry and farmers to our skilled workforce, there is no better place for Daisy to expand, and I am confident the company will continue to flourish in our great state.”
In other news, Stellar, a manufacturer of mechanic trucks, cranes, tire service trucks, hooklifts, trailers, and accessories, announced in March 2024 the purchase of a warehouse facility in Mason City, Iowa. Stellar, with more than 800 employee-owners companywide, is excited to continue growing job opportunities and contributing to the community. The company plans to expand its manufacturing capacity at this new facility over the next few years.
Additionally, SPAL Automotive, headquartered in Italy, announced last year its plans to expand its presence in Ankeny with the construction of a $35 million state-of-the-art manufacturing, distribution, and office facility in Crosswinds Business Park. SPAL Automotive, founded in Correggio, Italy, in 1959, designs, produces, and markets high-quality electric fans, blowers, and fluid pumps for various vehicles and machinery, with subsidiaries worldwide.
SPAL USA plans to build the facility on about 25 acres between Southeast Convenience Boulevard and Southeast Crosswinds Drive, near Kreg Tool Co.s new headquarters. The construction will occur in up to three phases, with the first phase including 215,000 square feet of office and manufacturing space. When fully built out, the facility could encompass up to 360,000 square feet.
Iowa makes a good business location by encompassing its business-friendly environment, skilled workforce, strategic location, robust infrastructure, and quality of life. Situated in the heart of the United States, Iowa provides strategic access to major markets across the country. This central location is advantageous for logistics and distribution, and the state has well-developed transportation infrastructure, including interstate highways, railroads, and airports, facilitating efficient movement of goods and people.
Overall, Iowas combination of a supportive business environment, skilled workforce, strategic location, excellent infrastructure, high quality of life, and proactive government support makes it an ideal location for businesses to start, grow, and thrive.
