Manufacturing Plays Central Role in Iowa’s Diverse Economic Landscape

As National Manufacturing Day approaches on October 3, Iowa reaffirms the pivotal role of industrial production in its economic foundation. While the state is widely recognized for its agricultural output, including corn and soybeans, its economic strength is increasingly driven by a broad range of sectors such as construction, information technology, transportation, health care, renewable energy, and gaming. n nManufacturing stands out as a major contributor, adding $44.5 billion in value—accounting for 17.3% of the state’s GDP, according to the National Association of Manufacturers. In 2024 alone, Iowa exported $16.2 billion worth of goods. This output is supported by over 216,000 workers employed across more than 3,000 manufacturing establishments. n nOne of the sector’s most compelling attributes is its compensation levels. The average annual wage for manufacturing employees in Iowa reaches $89,429, significantly above the $60,628 average for non-farm jobs. n nThe industry is also undergoing transformation through innovation and investment. JBS USA plans a $135 million facility in Perry dedicated to sausage production, expected to generate 500 permanent positions and around 250 construction roles. ADR Axles, an Italian manufacturer of components for agricultural machinery, is establishing its North American headquarters in the same city. Additionally, a joint venture between Cargill and Germany’s HELM has launched a $300 million plant in Eddyville to produce BDO, a chemical derived from corn, highlighting the integration of agriculture and advanced manufacturing. n nUSG Corp., with operations in Fort Dodge since 1902 and Sperry since 1960, exemplifies long-term industrial commitment. The company employs over 400 people across both sites and continues to expand. The Fort Dodge facility, one of USG’s original mines, produces Hydrocal bases used in investment casting, along with joint compounds and gypsum products. The Sperry plant operates an underground mine 600 feet deep and has adopted digital technologies such as machine vision to improve wallboard production, reduce energy use, and enhance quality. n nWorkforce development remains essential to sustaining this growth. A skilled labor pool depends on strong educational institutions, from community colleges to universities like Iowa State and the University of Iowa. Iowa State’s Bioeconomy Institute, for instance, focuses on converting agricultural resources into renewable fuels, chemicals, and materials. n nEqually important are employer practices that support career advancement, continuous training, and inclusion. Companies must cultivate environments where employees feel valued and equipped for high-skill roles. n nEconomic resilience stems from strategic investments in infrastructure, research, and human capital. By fostering innovation and empowering diverse talent, Iowa strengthens its position in advanced manufacturing and broader economic vitality. n

— News Original —nManufacturing just one diverse contributor to Iowa’s economic strength | Opinion n nWe all know that corn and soybean crops grow strong in Iowa. However, in addition to agriculture and food processing, the state’s diverse economy cultivates strong contributions from other sectors, including construction and infrastructure, information technologies, transportation, health care, renewable energy for electricity generation, and the gaming industry. n nMoreover, as we approach National Manufacturing Day on Oct. 3, we are further reminded that manufacturing remains a leading fiber of Iowa’s economy. According to the National Association of Manufacturers, manufacturing accounts for $44.5 billion value added to the economy, comprising 17.3% of Iowa GDP. Moreover, $16.2 billion worth of goods were exported from Iowa in 2024. This value is generated by more than 216,000 individuals that are employed by more than 3,000 Iowa manufacturers. n nA key focus of National Manufacturing Day is to celebrate the reality and future of modern manufacturing careers. It’s important to note that the average annual earnings for manufacturing employees in Iowa is $89,429, versus a $60,628 non-farm average. n nMore: The Iowa model of energy produced at home is one all of America should copy | Opinion n nNew investment in Iowa manufacturing n nClearly, manufacturing in Iowa is an essential contributor to advanced technologies of the present and future, growing our nation’s productivity and knowledge base, while supplying a large range of needed products and materials. n nIn doing so, the manufacturing sector will make significant new investment in new facilities, including the smart factories of tomorrow where real-time data analytics and precision engineering increase both efficiency and safety. Practically speaking, manufacturing has one of the highest multiplier effects of any economic sector in terms of employment and economic output. n nRecent major manufacturing investments include plans by JBS USA to invest $135 million to build a state-of-the-art sausage production facility in Perry, which is projected to create 500 direct jobs and an estimated 250 local construction jobs. Also in Perry, ADR Axles, an Italian company that makes axles, braking systems and suspensions for agricultural and industrial machines, plans to build its 54,000-square-foot North American headquarters. And a joint venture of Minnesota-based Cargill and Germany-based HELM recently opened a $300 million facility at its Eddyville site to produce the industrial chemical BDO, which is derived from Iowa corn. n nWe welcome the continued new manufacturing investment in Iowa, where our company, USG Corp., has been a state economic partner since 1902 at our location in Fort Dodge (Gypsum rock-joint compounds and surfaces) and since 1960 in Sperry (Gypsum rock-wallboard and other gypsum products). Across our two Iowa plants, we employ over 400 people and we are actively hiring. n nNotably, our Fort Dodge plant, established in 1902, is one of the company’s original mines and manufacturing operations. Fort Dodge is one of only two USG plants nationwide that produce Hydrocal bases, whose uses include investment casting. It manufactures joint compounds, surfaces and gypsum rock for a wide range of North American markets. Our Sperry plant operates one of the company’s three underground mines, located 600 feet below ground. The Sperry plant has embraced innovation, leveraging machine vision and digital cameras to enhance wallboard operations, reduce energy consumption, and improve product quality. n nMore: Tariffs will hurt my small business. But they’ll hurt my customers even more. | Opinion n nWorkforce development n nWe are proud that both plants are active in the community, including our longstanding commitment to workforce development, for, as we know, economic strength relies on the skills, experience, and productivity of our workforce. n nThese are two key aspects in crafting and building this workforce. The first is having a strong educational system, from technical training at community colleges to our colleges, universities, and professional schools, to prepare individuals for the knowledge- and skill-based careers of the future. Iowa is fortunate in having a quality network of major universities, including the University of Iowa and Iowa State University, home to the Bioeconomy Institute, focused on the role of agricultural resources to derive renewable fuel, energy, chemicals, and other materials; as well as nationally revered smaller schools like Grinnell College and Drake University. n nThe second aspect is what individual companies do to be companies that people want to work for and where they foster career growth for all of its people. n nThis requires a complex brew of intangible and tangible factors, which includes ongoing training and development, and upskilling individuals for the demanding, high value jobs of tomorrow. n nPutting it all together n nBusinesses prosper when leadership invests wisely in their company’s facilities and other infrastructure. And when leadership supports the research and product development appropriate to their industry or service sector, and, as just indicated, solicits contributions from and invests in all people. n nIn the face of ever-present competitive challenges, we must make the best use we can of the skills, experiences, motivations, and insights of all people in our society, catalyzed by strong doses of trust, acceptance, and empowerment. n nAs we celebrate National Manufacturing Day, we are reminded that our people are what ultimately helps our nation — and Iowa—maintain its leadership in advanced manufacturing and overall economic strength. n nMichael Ensminger is plant manager at USG Sperry. Ashley Little is plant manager at USG Fort Dodge.

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