Iowa City Companies Faired Better than National Companies During 09 Economic Downturn

ICAD Group Updates Existing Industry Report with New Data

The Iowa City Area Development Group (ICAD Group) has updated its most recent existing industry report, “Minding Our Own Businesses Volume 5,” with new data recently released by Blane Canada, Ltd.  Comparing local data with the Blane Canada, Ltd., “2008/2009 National Data Study,” Iowa City area companies are faring significantly better across the board on their potential to remain competitive and sustain growth.

Specifically, local companies are innovating with products in the emerging and growing phases of the product life cycle.  Area industry is showing higher levels of sales, increase in market share, and more plans to expand as compared with national companies.  Additionally, key workforce indicators, such as stability and quality are higher locally.

ICAD Group interviewed 60 area companies in 2009 and released its first report in September 2009 (available here).  Now, for the first time, ICAD Group is reporting a true “apples-to-apples” comparison of national data collected during the same time period.

Using Blane Canada, Ltd.’s Synchronist Business Information System, ICAD Group conducts confidential interviews with area interstate commerce executives annually to review business activities, discuss economic development issues, and forecast trends and opportunities for the Iowa City area.  This same tool is used by other economic development groups across the state and North America, allowing real time data comparisons on a variety of key performance indicators.

Performance Indicators

Sales and market share have fallen on average, but not at the levels seen nationally.  More than half of all local companies surveyed reported an increase in sales and plan to increase staffing levels over the next three years.  More than 65% plan to expand in the next three years.

Growth Indicators 

The Key Growth Indicators reflect a similar story.  A vast majority of local companies have introduced products in the past five years and 85% are planning to introduce new products and services in the next two years.  The innovation of Iowa City area companies is a primary factor.  Over the past two years, 80% of our surveyed companies report their products as emerging or growing in the product life cycle.  Nationally, only 68% of companies report this.

Workforce Rankings

Much of our area’s success and innovation is made possible through the high quality workforce in our region.  This data shows a consistently strong level of employee quality and stability that outpaces national trends.  Availability of employees has also risen as fewer companies are hiring.  Those who are hiring are finding a better candidate pool from which to choose.

Company Satisfaction with Community Attributes

As with the workforce data, executives are asked to rank their satisfaction on a 1-7 Likert scale (1 is low and 7 is high) across a variety of specific community amenities.  Amenities are grouped into six sectors:  Educational Opportunities, Health and Safety, Utilities, Transportation Assets, Government Services and Business Support.  The scores show that the Iowa City area offers community strengths across the board as compared to national data.  Continued optimism by area companies is predicated on the quality of life and business climate the area offers.  The strength of our community translates into the ability to retain companies and help them remain competitive in this unstable global downturn.

For more information, contact Mark Nolte in the ICAD Office at (319) 354-3939.