By O. Kay Henderson (Radio Iowa)
The latest Iowa Business Council survey finds “a significant increase in optimism” about the economy among some of the state’s largest employers. The council represents 21 Iowa-based companies that employ over 160,000 people, with a combined payroll of over $10 billion.
“While we do represent big business, keep in mind all of our companies have engagements from a contract basis or a client basis or other sort of strategic partnerships with small and medium sized firms all across the state,” said Iowa Business Council president Joe Murphy, “so it does really give us a great sense of where the state is heading from an economic standpoint.”
The survey indicates over the next six months that vast majority of Iowa Business Council members will either hire more employees or don’t expect to make changes in their workforce, “meaning a lack of layoffs, which is obviously good thing,” Murphy said.
“We’ve had some seasonality adjustments in the labor force and some softening in the labor market with respect to ag manufacturing, but our members are very positive about future employment opportunities in this state and are constantly looking for people to hire up and down the spectrum of occupations.”
The survey found almost 70% of Iowa Business Council members plan to make capital investments in infrastructure or technology over the next six months that are higher than what was spent on physical assets in the last half of 2024, “which is a really important metric,” Murphy said. “This is about investment in Iowa, investment in Iowa communities and firms across the state and that really gives us a good sense of optimism and a good sense of momentum heading into 2025.”
Over 60% of Iowa Business Council members expect sales increases in 2025. Surveys of Iowa Business Council executives during the first, second and third quarter of 2024 reflected a general sense of uncertainty about the economy, but Murphy said that evaporated during the survey conducted in December. “We’ve got some very clear indication now at the federal level of where policymakers are going to go. We have a very clear understanding of where policymakers in Iowa want to go,” Murphy said. “And I think also from a national market perspective or business perspective, we’ve got some certainty around federal rate making and the markets in general.”
The Federal Reserve, for instance, has signaled it will cut interest rates a half a point in 2025.
The following companies are Iowa Business Council members: Alliant Energy; Atlantic Coca-Cola Bottling Company; Casey’s General Stores, Inc.; Collins Aerospace; Corteva Agriscience; Deere & Company; Fareway; HNI Corporation; Hy-Vee, Inc., Iowa Bankers Association; Kent Corporation; MercyOne; MidAmerican Energy Company; Pella Corporation; Principal; Ruan Transportation Management Systems; The Weitz Company; UnityPoint Health; Vermeer Corporation; Wellmark Blue Cross Blue Shield of Iowa; and Workiva.
