Iowa Businesses Poised for Growth Amid Economic Shifts and Opportunities

DES MOINES, Iowa – As Iowa’s business leaders gear up for the new year and a new administration in Washington, the Iowa Association of Business and Industry (ABI) shares key findings from its latest Quarterly Business Survey, conducted in early December 2024.

Key highlights include:

• Capital Expenditures: More than 70% of respondents plan to make capital expenditures in the first quarter of 2025, a notable increase from 53% in Q4 2024 and the highest this number has been since the 3^rd quarter of 2022. This growth reflects Iowa businesses' confidence and commitment to investing in their business. By prioritizing these investments, they are positioning themselves to seize growth opportunities in the year ahead.

• Sales Expectations: Iowa businesses demonstrate resilience and adaptability, effectively responding to shifting market dynamics and evolving challenges. This is reflected in the fact that 55% of respondents expect stable sales and 40% anticipate growth in the first quarter.

• Employment and Workforce Trends: Workforce management is a priority for Iowa businesses entering 2025. Most respondents, 57%, expect stable employee numbers. Companies are addressing challenges like labor shortages and skills gaps to meet future demands.

• Policy Concerns: Proposed tariffs on Canadian, Mexican, and Chinese goods remain a major concern, with nearly 80% of respondents expressing varying degrees of apprehension about their potential impact on costs and supply chains.

Business leaders shared insights including adjusting material and vendor costs to mitigate external pricing pressures and evaluating the effects of the incoming administration’s trade policies on operations and supply chains.

"After a neutral outlook at the end of 2024, ABI members’ views on the first quarter of 2025 are positive,” said Nicole Crain, ABI President. “In order to ensure economic success for members, ABI, will advocate for continued reform of Iowa’s property tax system and unemployment insurance reductions. The changes will help keep Iowa a competitive state