Economy Continues Growth Locally and Statewide

DES MOINES -- The Iowa Business Council (IBC) released its annual, nonpartisan review of the state's economic competitiveness. Known as Iowa's Competitive Dashboard, the report measures the state's national rankings in five categories: economic growth; workforce & education; governance; health & wellness; and demographics & diversity. For each category, Iowa is awarded a cumulative score that determines whether it is outperforming, competitive, or underperforming. The report can be measured consistently across all 50 states, providing an accurate depiction of how Iowa is competing nationally. Among the key findings of the report, Iowa's overall standing in the face of national and international uncertainty remains strong. Under the Economic Growth category, Iowa's Gross State Product (GSP) increased by more than 9.5% to $238.3 billion compared to last year's report. Noting Iowa's strong standing in manufacturing value as a percentage of its GSP, Iowa is well diversified across multiple industries which highlights the state's continued economic resiliency. Iowa's economy is poised for even more growth with significant increases in competitiveness relative to its tax climate. Iowa's state ranking for Corporate Tax Climate have improved from 46th in 2010, to 29th in 2023. For the Individual Tax Climate, Iowa's standing has improved from 41st to 22nd in the same timeframe. The report also calls out opportunities for growth and improvement. Specifically, metrics contained within the Demographics & Diversity category should be highlighted for Iowa policymakers. Iowa's population has grown at a far slower rate than the rest of the country. Furthermore, while the state remains in the top ten nationally for its labor force participation rate, the state is essentially "tapped out" with respect to that participation. Combined with Iowa's low unemployment rates, the labor shortage continues to hamper all companies' ability to expand throughout Iowa. Stephanie Fromm, Executive Director of Winneshiek County Development and Tourism, hinted at the county's comparatively exceptional economic performance. "Winneshiek County stands as a vibrant thread in Iowa's economic landscape, weaving opportunity and prosperity. Our county's blend of rural innovation, agriculture, and community spirit fuels growth and resilience," Fromm continued. "Together, we cultivate an environment where businesses thrive, families flourish, and dreams take root. In Winneshiek County, the Iowa economic landscape is not just observed—it's actively nurtured and celebrated." "Although Iowa remains in a strong economic position compared to the previous year, our available workforce remains strained. To conquer these challenges, IBC companies continue to support and provide opportunities for advanced work-based learning opportunities for Iowa's students while engaging in new strategies to bring in talent from outside of Iowa to fill unmet needs," said Phil Jasper, IBC chair and President of Raytheon. "The IBC will continue to support policy initiatives that increases economic opportunity for every Iowa while increasing our competitiveness across every Dashboard metric," added Joe Murphy, IBC president. The dashboard, which has been released annually since 2011, serves as a tool for policymakers and business leaders to use when making sound economic decisions. IBC members encourage community leaders to join in implementing the report's recommendations, or use the data to develop their own action items. Over the course of the next several months, the IBC will present the report's findings throughout the state. To view the full report, visit www.IowaBusinessCouncil.org.