Iowa is Centrally Located in the North American Market

IOWA’S STRATEGIC ADVANTAGES 

Iowa Department of Economic Development 

December 2010

Iowa’s Key Components for Success 

•Access to Markets 

•Diversified Economy 

•Productive Workforce 

•Profitable Business Climate

Access to Markets

Access to 

Markets 

Iowa is in the heart 

of an 8-state market 

(neighboring states: 

MN, WI, IL, MO, 

NE, SD, KS) of 

35.5 million people 

with a total of $902 

billion in personal 

income.

� Iowa is centrally located within the NAFTA region 

� Excellent Interstate system 

Access to 

Markets 

America‘s most traveled thoroughfares, Interstates 

80 and 35, intersect in the state and connect 

Canada, the United States and Mexico 

� Excellent rail infrastructure; barge shipping possible

Iowa Facts 

� The land area of Iowa is 56,271 square miles 

(145,741 sq. km), making it the 26th largest state 

� 1.6 million workforce 

� 21% of gross state products from manufacturing 

� Exports exceeded $9.04 billion in 2009

Iowa’s Diverse Economy

Iowa’s Economy: Facts 

� Unemployment Rate (10/2010) 6.7% (112,400) 

� Per Capita Income (2008) $36,680 

� Median Wage (10/2010) $16.82 (hourly) 

� Labor Force (10/2010) 1,674,200 

� Manufacturing Employment (2010) 206,300 

� Farmland Values (2010) + 6% 

� Exports (2009) $9.04 billion

Iowa’s Industries Include … 

�Renewable Energy 

�Advanced Manufacturing 

�Agriculture 

�Food and Ingredients 

�Biosciences

• Ethanol Production 

Renewable Energy 

– Iowa is the number one producer of ethanol in the U.S. 

– Companies such as POET are working to commercialize cellulosic 

ethanol from corn stover 

• Biodiesel Production 

– 15 plants have the capacity to produce about 325 million gallons per 

year; Iowa is a top producer of biodiesel from soybeans 

• Biomass capabilities 

– Iowa is "First in the Nation" in raw biomass production nationwide 

• Alternative Energy Industry Leader 

– Business Facilities 2010 - Iowa is ranked as the 2nd best state for 

alternative energy


Iowa’s Leadership in Wind Energy 

• Iowa ranks 2nd nationally in current wind energy production 

• 3,670 megawatts installed with 2,534 turbines across the state (AWEA, 

2010) 

• Iowa leads the nation in wind generation as percentage of total power 

output at 14% (AWEA 2010) 

• Iowa and Texas are the only two states in the nation to manufacture all 

of the main components of a wind turbine — turbines, blades and 

towers


� Spanish companies active in Wind Energy in Iowa 

– Acciona Energía 

• Assembles wind turbines 

• Located in West Branch, Iowa 

– Goian Elevadores 

• Manufacture elevation systems for wind turbines 

• Located in Ankeny, Iowa 

– Iberdrola 

• Developer of wind energy projects 

• Operater of wind farms in Joice, Iowa

Advanced Manufacturing 

� Manufacturing is Iowa’s largest economic sector 

� 12.3% percent of Iowa’s workforce versus 7.8% 

nationally 

� $28 billion of Iowa’s Gross State Product (GSP) 

� Generates 21% of Iowa’s GSP, 2nd among the 

states

Companies include: 

Advanced Manufacturing 

• Siemens 

• Pella Corporation 

• Rockwell Collins 

• John Deere 

• 3M 

• ALCOA 

• Eaton Corporation 

• Bridgestone 

• HON Industries 

• Magna International 

• Sauer-Danfoss 

• Gerdau 

• Terex Corporation 

• Case New Holland 

• Lennox Manufacturing 

• Vermeer Manufacturing 

• Winnebago Industries 

Inc. 

• NSK 

• Emerson Electric 

• Whirlpool 

• Goodyear 

• Sukup Manufacturing 

• SSAB

Agricultural Leadership 

• 1st in production of CORN (55 million metric tons) 

• 1st in production of SOYBEANS (12.1 million metric tons) 

• 1st in production of PORK (19.9 million head) 

• 1st in production of EGGS (14.4 billion eggs annually) 

• 6th in production of BEEF (3.9 million head) 

• 9th in production of TURKEY ( 9 million birds)

Quality Food Industry 

• Iowa is among the top 10 food producing states 

• 30 of the 100 largest food companies manufacture in Iowa 

• The food industry contributes over $4.5 billion to Iowa’s 

Gross State Product (GSP) 

• Food processing represents 17% of the manufacturing GSP 

of Iowa

Bioscience in Iowa 

� Bioscience is 24% more concentrated in Iowa than 

compared to the national average 

� Leader in Green and White Biotechnology 

� Companies at work in Iowa 

� ADM, Metabolix, Tate & Lyle, Novartis, Monsanto, Roquette, 

Cargill, Genencor (Danisco), DSM, Wacker Chemie, Kerry 

Foods, Syngenta, DuPont, etc. 

� Leading centers for research: 

� Center for Biorenewable Chemicals 

� Center for Biocatalysis and Bioprocessing 

� National Ag-Based Lubricants Center 

� Bioeconomy Institute

Foreign Direct Investment in Iowa 

• 225 foreign-owned companies in Iowa 

• Employing over 32,000 people 

• Foreign firms account for 9.5% of Iowa’s 

manufacturing employment 

• Foreign firms in Iowa have $8.3 billion of capital 

investment

Productive Workforce

Iowa’s Quality Education = High Quality Workforce 

89% of Iowa’s workforce have finished high school, with 

over 90% of these attending post-secondary education

Iowa’s Quality Education = High Quality Workforce 

� Iowa ranks #1 in the US for 

SAT college entrance exams 

� Higher education institutions 

• 47 public and private colleges 

• 15 community colleges with a 

total of 31 campuses

Skilled and Productive Workforce 

Employee Training Programs 

• Iowa's job training program provides state funding 

for training services and expenses required by a 

business for training new employees 

• Through this training program, Iowa is able to 

customize training services to meet a company’s 

specific training needs 

• This employee training fund can provide significant 

funding for on-the-job training

Profitable Business Climate

Iowa’s Business Climate 

• Iowa has the lowest business costs in the nation, 

according to CNBC 2010 (compares costs for labor, 

electricity, taxes, lease rates, workers’ compensation) 

• Iowa is home to two of top 100 “Fastest Growing Cities” 

in the United States (Source: U.S. Bureau of Economic 

Analysis) 

– Des Moines ranked #24 

– Cedar Rapids ranked #57

Iowa’s Key Business Factors 

• Iowa Corporate Income Tax 

– Single-factor, non-unitary tax, based only on the 

percentage of total sales income within the state 

– 50 percent deductibility of federal taxes from Iowa 

corporate income 

• Local Tax Abatement 

– Iowa law allows cities and counties to abate local 

property taxes for value added to industrial real 

estate.


• No Sales and Use Tax on 

Manufacturing Machinery and 

Equipment Purchases 

• No Sales or Use Taxes on 

Energy Used 

in the Manufacturing Process 

• Low rates regarding 

Unemployment Insurance & 

Workers’ Compensation (28% 

below U.S. average) 

• No Personal Property 

(Inventory) Tax 

• No Property Tax on Industrial 

Machinery and Equipment


• Research and Development 

Tax Credits 

– Qualifying companies can 

receive up to 13% tax credits 

• Regulatory/Permit Assistance 

• Export Trade Assistance 

• Employee Training Programs


Assistance Programs 

• Iowa has a series of programs that benefit companies through: 

– Direct financial assistance (forgivable loans and low interest 

loans) 

– Refunds 

– Tax Credits 

– Tax Abatements 

– Job Training 

• Programs are based on Financial Need and Project Criteria, such 

as: 

– Number of Jobs 

– Quality of Job (wages + benefits) 

– Capital Investment

For Further Information 

State of Iowa European Office 

Director: Ms. Anke Goebel de Méndez 

Kleine Hochstrasse 8 

D-60313 Frankfurt 

GERMANY 

Tel: +49 69 28 38 58 

Fax: +49 69 28 14 93 

E-mail: iowa@iowa-eu.de

Iowa is Centrally Located in the North American Market

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