If you ask someone what is made in Iowa, the first answer and often the only answer is corn. However, Iowa is a major regional manufacturer as well. North Iowa is enjoying a massive boost thanks to both agriculture and manufacturing. Let’s look at the state of North Iowa’s economy and the factors driving it today compared to the slowdown experienced from 2008 until recently.
Agriculture
Agriculture from North Iowa generates more than eight billion dollars in revenue per year. And it accounts for more than 23,000 of the region’s jobs. More than 40% of jobs in North Iowa are directly or only one step in the chain away from agriculture.
It isn’t just raising food for people that fuel North Iowa’s economy but fuel for our economy as well. This is why North Iowa is home to the largest oat processing plant in the United States. Golden Grain Energy, POET Biorefining and Absolute Energy, all big ethanol producers, are also located close to Iowa’s cornfields. There is a biodiesel plant, several ethanol plants, and multiple wind farms in North Iowa, making it one of the nation’s leaders in renewable energy. Many of these companies are hiring again after cuts several years ago.
Food Processing
It is cheaper to process food close to where it is produced, which is why many major food processors are located in rural areas. They benefit, too, from the low cost of labor in rural areas. Cargill, MOM Brands, and Smithfield Foods, the supplier of brands like Butterball and Eckrich, are major employers in North Iowa. Cargill Kitchen Solutions, a major egg processor, is based in North Iowa. And Kraft makes Jello and Jello pudding snacks in Mason City, Iowa. Purina Animal Nutrition produces pet food.
Manufacturing
The low cost of labor in rural North Iowa has attracted a number of manufacturers. Winnebago Industries in Forest City employs about 2,500 people in North Iowa. Woodharbor Cabinetry provides several hundred jobs in the area. The Cambrex plant in Charles City is a chemical production facility. Mitas, Sukup Manufacturing, Iowa Mold Tooling Company and a number of other manufacturing plants make agricultural equipment. Assa Abloy, Serta, the bedding manufacturer, and Heidelberg Cement are some of the other manufacturers in North Iowa.
Services
In many rural communities, service providers like hospitals and schools tend to be the biggest employers. And this is true with Mercy Medical Center of North Iowa. Unlike Des Moines, you don’t find any major colleges in this area, which drives many people to complete an online MPA program since there isn’t a local alternative.
Transportation and logistics are significant employers in North Iowa. This is due to Interstate 35 and the Avenue of the Saints Expressway passing through North Iowa. This is in addition to two Class 1 railroads, two short line railroads, and one commercial airport. North Iowa’s transportation nexus is why Titan Pro SCI and Wess Incorporated are located here. And distributors like Kabrick Distributing have operations in North Iowa. Those who earn an online masters in public administration from Rutgers Online are ideally suited to managing these types of businesses.
Rebounding agricultural prices and growing demand for renewable fuels are driving demand for talent in North Iowa, while food processors’ demand for labor only changes in response to consumer shifts in taste. Service providers like logistics firms are seeing an uptake in demand. The economy’s slow recovery from the 2008 Great Recession accelerating under President Trump is leading to companies like Winnebago hiring people they were laying off a few years before.
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