ABI Survey: Workforce, Trade Policies Shape Business Outlook for Q4
September 23, 2025 | Download PDF
DES MOINES, Iowa – Iowa business leaders are entering the fourth quarter of 2025 with steady confidence in growth and investment plans, balanced by caution over external pressures, according to the latest quarterly survey conducted by the Iowa Association of Business and Industry (ABI).
Q4 Survey Highlights:
- Sales: 39% expect sales to expand—up from 33% in Q3—while fewer respondents (30%) anticipate flat sales compared to 45% last quarter.
- Capital Expenditures: 60% plan to make capital investments in Q4, reflecting confidence in long-term growth.
- Tariffs and Trade: 34% say Chinese tariffs have negatively impacted business, and an even stronger 78% report U.S. trade policy with Canada and Mexico has had negative effects.
- Workforce and Costs: 86% are concerned about finding and retaining skilled workers, and most report moderate or significant increases in health care renewal costs.
Workforce shortages, cost pressures, and trade policy remain top concerns. Business leaders also pointed to supply chain resourcing, acquisition strategies, commodity pricing, and automation as ongoing priorities.
ABI’s survey findings mirror national trends. According to the National Association of Manufacturers’ Q3 2025 Outlook Survey, manufacturers across the country identified many of the same concerns as Iowa businesses: trade uncertainty (78%), rising raw material costs (68%), and increasing health care costs (65%).
“This alignment underscores the fact that Iowa manufacturers are navigating the same set of challenges as their peers nationwide” said ABI President Nicole Crain. “ABI members are clear: they’re ready to grow, but external pressures like trade policy, health care costs, and the workforce shortage could hold them back. That’s why ABI will continue to advocate for policies that reduce uncertainty, strengthen the talent pipeline, and keep Iowa competitive.”
ABI surveys its board each quarter to track business sentiment, identify common concerns, and inform advocacy and programming priorities. For previous survey results, business resources, and upcoming events, visit www.iowaabi.org.