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Iowa: A Smart Investment in America’s Midwest
IOWA:
A Smart Investment in America’s Midwest
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By Mark Laurenzo, Business Development Manager, Iowa Economic Development Authority (IEDA)
As we refl ect on lessons learned in the year 2020, many words come to mind that encapsulate a year unlike any in our lifeঞ mes. But the word that stands out in my mind is transformaࢼ onal. The collective impact of the COVID-19 pandemic has truly transformed not only how we live, but how we do business. Many newly implemented ways of working will remain well a[ er the pandemic has come to an end and ulঞ mately become part of whatever normalcy looks like moving forward. In the midst of these unprecedented circumstances, the state of Iowa (centrally located in North America) has gone the extra mile to support impacted businesses through relief grants, tax deferrals, assistance with access to federal resources, workforce development initiatives and other targeted programs designed to sustain businesses in the early days of the pandemic. And as businesses have reopened and resumed operaঞ ons over the past few months, we've seen countless examples of Iowan ingenuity and our state’s indominable work ethic in the eff ort to push forward safely and effi ciently. Though this year has presented a series of unusual challenges, there have been bright spots, including this month’s announcement that Iowa was named as European Business Magazine's Best State to Invest for the second year in a row. We’re appreciaঞ ve of the editorial board and subscribers for granঞ ng us with this great honor that we could not have achieved without our top-ranked workforce and the ongoing partnership of nearly 450 internaঞ onal employers operating in Iowa. This incredible recogniঞ on demonstrates that though the business landscape has changed, Iowa’s low cost of doing business, skilled workforce and efficient infrastructure continue to cement our state as a great place for industry. Even in the face of adversity, we’re commi ed to fostering an environment where businesses achieve sustained growth and people enjoy a rewarding quality of life. Read on to learn more about why Iowa may be a smart investment for your business.
As a state that’s home to top-ranked research-based universiঞ es, high-tech startups and a dogged commitment to innovaঞ on, companies and insঞ - tuঞ ons operaঞ ng in Iowa are tackling tomorrow’s challenges today. In fact, Iowa has emerged as a bioscience epicenter through unique research and development specialঞ es in bio-based products, animal health, precision agriculture and immunotherapies. Beyond our research-first approach, companies and insঞ tuঞ ons operaঞ ng in the state have access to abundant raw materials and a pipeline of world-class talent stemming from the University of
Northern Iowa, Iowa State University and the University of Iowa. Coupled with one of the United States’ lowest costs of doing business and a trained workforce, Iowa off ers a business-friendly regulatory environment where innovaঞ on and growth aren’t only encouraged, they’re incenঞ vized. Iowa’s Renewable Chemical Producঞ on Tax Credit (which benefi ts companies that produce renewable chemicals in Iowa by off ering up to $1 million annually) was named by the U.S. Department of Agriculture as the strongest state incenঞ ve for the biobased chemical industry in the naঞ on. Iowa off ers innovaঞ on-based incenঞ ves as well — the Research Acঞ viঞ es Tax Credit alleviates the potenঞ al fi nancial risk associated with R&D investments, and ulঞ mately, improves the potenঞ al for profi tability.
Infrastructure that ships globally
Iowa’s central geographic location in the heart of the United States provides for a transportaঞ on infrastructure that can support mulঞ -modal logisঞ cs in an effi cient and cost-effective manner. Two major coast-to-coast, border-to-border interstate arteries travel through Iowa, and the state boasts more public road miles than the enঞ re United States Interstate System. This vast network of roads, highways and interstates connects to more than 3,800 miles of rail freight track as well as 60 barge terminals on the nearby Mississippi and Missouri rivers. Through the air, more than 616 million pounds of cargo make their way through Iowa’s airports each year.
Aff ordable sustainable energy
As industrial energy costs increase, the demand for cost-effi cient energy solutions has never been greater. Compounding this challenge is the need for companies to implement sustainable pracঞ ces across all operaঞ ons given the ever-changing regulatory landscape and premiums placed on limited natural resources. Thanks to an abundant supply of raw materials, Iowa is the naঞ on’s leader in renewable fuel producঞ on with 43 ethanol refi neries capable of producing more than 4.5 billion gallons each year. Additionally, Iowa is home to 10 biodiesel faciliঞ es with the capacity to produce more than 428 million gallons annually. Iowa also ranks first in the nation in wind energy (as a percentage of total power output), and numerous companies have invested heavily in the state’s wind power to fuel their operaঞ ons. Both the public and private sectors are committed to furthering investments in wind energy with more than $19 billion allocated to wind-related projects and an additional 1,211 MW to wind capacity planned by the state’s uঞ liঞ es.
Development-ready sites
When considering operaঞ onal expansion, ঞ me is of the essence as companies typically don’t have the luxury of invesঞ ng signifi cant amounts of ঞ me into the site selection process. As business needs rapidly change, scaling up quickly can be a game-changer for long-term profi tability. With that need in mind, Iowa’s Cerঞfi ed Sites program off ers sites with large square footage opঞ ons that are well-suited for fast-tracked projects. The Certified Sites program considers national site location standards, Iowa’s natural assets and the needs of key business sectors, including advanced manufacturing, fi nance and insurance and biosciences. Unlike some states that cerঞ fy shovel-ready sites by their own criteria (which can vary widely), Iowa’s cerঞfi caঞ on program leverages naঞ onally recognized standards and an independent, thirdparty site selecঞ on fi rm. To become cerঞfi ed, sites go through a rigorous review process and all resulting issues must be mitigated within a pre-determined ঞ meline. The outcome is a “risk-free” site which accelerates the development schedule for today’s fast-moving business environment. Though the number of Iowa’s cerঞfi ed sites has steadily grown since 2012, having the most cerঞfi ed sites is not the state’s goal. “We’re using the most robust cerঞfi caঞ on program in the country,” said Amy Kuhlers, IEDA’s Cerঞfi ed Sites program manager. “Our focus on quality, not quanঞ ty, is driving the program’s success.” A smart investment A unique combination of innate characterisঞ cs and strategic iniঞ aঞ ves have posiঞ oned our state as a premier option for international businesses. A vibrant economy provides the ideal climate for business growth and innovaঞ on, while our central North American locaঞ on, naঞ onally recognized research centers and low cost of doing business give companies operaঞ ng in the state a huge compeঞঞ ve edge. For all of the great success we’ve experienced with our European counterparts thus far, we’re looking forward to conঞ nued growth and new opportuniঞ es in the days ahead and invite you to give our state a closer look. For more informaঞ on, please contact opportuniঞ es@iowaeda.com or visit www.IowaEDA.com.
