ICAD Group’s New Existing Industry Surveys Show Recovery and Growth in Area

Sixth Industry Report Projects 1,100 New Jobs in Next Three Years

The latest existing industry survey conducted by the Iowa City Area Development (ICAD) Group shows steady employment growth among interstate commerce companies operating in our area.  The survey, conducted during the second quarter of 2010, included employment and other data from seventy-two companies.

Over the past year, interstate commerce firms in the ICAD Group service territory added back 760 of the 1,370 jobs lost between 2008-2009.  These employers had a combined full time employment level of 13,425; a 6% increase in employment from this time last year.

Despite the lagging effects of the recession, firms in the Iowa City area show significant optimism, with 69% of companies surveyed planning to expand in the next three years.  Collectively these companies anticipate creating approximately 1,100 new jobs in the near future, with more opportunities expected in manufacturing and the financial/insurance sectors.

Joe Raso, ICAD Group President, says the numbers show a stable economic environment that continues to grow.  “We haven’t been immune from the global recession, by any means, but our area has shown remarkable resilience,” said Raso.  “We are fortunate to have such a vibrant mix of innovative companies, a consistently supportive business climate and talented workforce.”

Other leading indicators, such as investment in employee training and research and development, suggest continuing growth.  “Ninety-one percent of the companies we interviewed anticipate adding new products or services in the next two years,” added Raso.  “Area executives were relatively pleased with the business climate and area workforce and are planning to ramp up operations.”

The ICAD Group annual existing industry survey includes the perspectives and data collected from a series of in-depth interviews with local executives from interstate commerce companies in its service territory.  Using the Blane, Canada Synchronist® Business Information System, the growth, risk, value, and satisfaction of each company is measured.

Among other key findings:

• 68% of companies reported an increase in sales from the year prior, 16% higher when surveyed a year ago.
• Satisfaction with the educational systems, health and safety retained the highest ratings while transportation and governmental services continue to see the lowest satisfaction scores.
• All community rankings were higher than national data.
• Employer satisfaction for workforce quality, availability, stability and productivity remain high, with a 7% uptick reported in productivity over last year’s findings.

“Collecting this data annually is part of our larger development strategy,” explained Raso.  “We are able to see trends developing in our area and can compare data with markets across the United States.  We are fortunate that our business community continues to provide this information each year.”

Barring another major economic downturn, the outlook for interstate commerce firms in the Iowa City area is positive, with new products being launched and jobs created.  Challenges moving forward are predominately workforce related, including H1-B Visas; targeting specific skill sets and work experience levels for professional, scientific and technical positions; and addressing some misperceptions of the area by those considering employment here.