<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1iRWw9_1H31mRhe00" alt="https://img.particlenews.com/image.php?url=1iRWw9_1H31mRhe00" width="1500" height="1098" ><figcaption>A worker at Vermeer Corp.’s Des Moines factory. Submitted photo</figcaption></figure>Iowa’s economy is largely concentrated around agriculture, finance and insurance and manufacturing, but no industry employs more people or contributes more to the state’s gross domestic product than manufacturing, according to a study from the Common Sense Institute. Manufacturing accounts for 17% of the state’s gross domestic product and contributes $35 billion annually to the state’s economy. Despite economic pressures, such as inflation and tariffs, manufacturers are expanding in Iowa. Among those efforts are Mesabi Metallics’ plan to build a steel plant in Lee County; a new Vermeer Corp. manufacturing facility in Bondurant and a 50,000-square-foot expansion at Accumold’s Ankeny facility. According to the Iowa Economic Development Authority, Iowa leads in the manufacturing of heavy equipment, renewable energy and food and ingredients. About one-third of the largest 100 food manufacturers have operations in Iowa, and the state has the highest concentration of machinery manufacturing employees. Manufacturing’s economic impact runs through metro and rural Iowa. Last year, 82.8% of counties had a greater share of employment in manufacturing than the United States, according to a study on Iowa’s manufacturing economy from the Common Sense Institute. More than 4 out of every 5 Iowa counties exceed the national norm of manufacturing concentration. The industry paid about $16.6 billion in wages in 2025 and employed about 216,000 Iowans, which is about 14% of the state’s workers. Over the next five years, manufacturing is estimated to contribute about $511 billion in GDP, $1.1 trillion in economic output, $234 billion in personal income and 500,000 jobs annually in Iowa, according to the study. “As the importance of manufacturing has waned across the United States over the past several decades, the industry remains the single largest engine of Iowa’s economy,” the Common Sense Institute report states.However, when the manufacturing sector loses workers, Iowa’s economy amplifies the effects due to its significant reliance on the industry. “Manufacturing has pulled more weight in Iowa’s GDP growth than in the nation’s while subtracting far more from its employment growth,” the report states. “The concentration that makes manufacturing Iowa’s greatest economic asset also makes the state unusually exposed to the industry’s structural shifts. How Iowa navigates that exposure will shape the state’s economic trajectory for decades to come.” <h2>Mesabi Metallics steel plant in Lee County </h2>Mesabi Metallics is seeking a $1.36 billion incentive through the Major Economic Growth Attraction (MEGA) program.The MEGA program, administered by IEDA, provides tax incentives for advanced manufacturing, bioscience or research and development projects with a capital investment of more than $1 billion. Following a special legislative session in October to amend the MEGA program, IEDA now has two incentive options it can offer — a tax credit of up to 5% of a company’s investment paid over five years or a credit up to 10% paid over 10 years for a project in a rural county. Lee County is a rural county in Southeast Iowa with 33,555 residents. Credits under the MEGA program are given once a project is completed and operational, at least 50% of the promised jobs are on the payroll and those jobs meet wage requirements.Mesabi plans to invest $18 billion in the project, including a $15 billion Iowa facility and $3 billion to complete an iron ore mine in Minnesota.The development incentive still has to go before the IEDA board of directors and will be considered on Nov. 20. If approved, it would be the largest investment in a steel complex in U.S. history, the governor’s office said in a news release.Mesabi Metallics will pair domestic iron ore from its Minnesota mine with a modern electric arc furnace steelmaking complex in Iowa. Construction and the first 10 years of operations are anticipated to produce $95 billion in economic output. The facility is expected to create 1,750 permanent jobs at $48 per hour, plus an additional 6,000 construction jobs. “Our policies are to make sure that we are partnering with companies that are good corporate citizens that will remain good corporate citizens not only for the state but for the community,” IEDA Director Debi Durham told the Senate Ways and Means Subcommittee in October. “We want jobs where our people are paid living wages, jobs that raise the standard of living for Iowans, jobs that can put people on that wealth-creating opportunity.” A Mesabi Metallics spokesperson told the Business Record the company has acquired a site in Iowa, but did not disclose the location. The company is also working with the Iowa Department of Natural Resources, Lee County officials and the federal government on permitting. During the special legislative session, Joe Broking, president and CEO of Mesabi Metallics, told senators the company completed an extensive site selection process and chose Iowa for its proximity to the Minnesota mine and its access to railroads and the Mississippi River. The mine in Nashwauk, Minn., is about 595 miles by car from Lee County, Iowa. “At the same time, when we move into Iowa, we are at the heart of manufacturing, in close proximity to customers, which is critically important to the success and sustainability of this business,” Broking said. The spokesperson added that Iowa also provides wind power and utility partners. “Add a state government that moves with purpose and a business community that has welcomed us from day one, and the choice was clear,” the spokesperson said. “Our vision has always been a fully integrated American steel company, mining, melting and pouring right here in the United States. Iowa is where that vision comes together.”<h2>Expansions across the state</h2>Accumold, which makes small plastic parts for the medical, microelectronics and optics industries, is building a 50,000-square-foot addition to its campus at 1711 SE Oralabor Road in Ankeny. Company officials have said the expansion, the second since the original facility was built in 2000, is needed to meet the growing demand for its products.The Ankeny City Council approved a development agreement with Accumold in October, and in September, IEDA approved more than $1.08 million in tax incentives from the Business Incentives for Growth (BIG) Program. The expansion will create 150 jobs, with more than 100 to be created in the first three years. At least 20 of those jobs will be paid more than $34 per hour. With the new jobs, Accumold will employ more than 500 people in Ankeny. The development agreement with the city also includes seven years of Tax Increment Financing rebates on the property’s increased valuation, beginning the second year after it is completed. TIF payments will follow a sliding scale over those seven years and will not exceed $910,000.According to city documents, the expansion on the west side of Accumold’s current facility will increase the property’s taxable value by about $8.1 million.In Southeast Iowa, Musco Lighting is expanding its Oskaloosa headquarters and its Muscatine facility. The renovation of the headquarters, completed in 2025, includes additional workspace, conference rooms, collaboration areas, a greenhouse and a coffee bar. The project also added a parking garage and new amenities designed to support employees and visitors.Musco manufactures customized lighting systems for venues ranging from neighborhood ballfields to iconic sports facilities such as Wrigley Field and AT&amp;T Stadium, and its products are used in more than 135 countries. The investments come as manufacturing continues to play a major role in Southeast Iowa’s economy. Manufacturing accounts for 26% of the workforce in Mahaska County, where Oskaloosa is the county seat, compared with 14.2% statewide, according to Iowa Workforce Development. Manufacturing employment in the county grew 4% last year, while employers across the region continue to report plans for expansion and growth.“We were running out of space,” Shelly Herr, president of Musco, told the Business Record in June. “We wanted to make sure that we’re providing opportunities for our team not only to have a place to sit, but to grow and learn.”In Charles City, Cambrex recently broke ground on a $120 million expansion. Cambrex manufactures ingredients for prescription medications. The expansion will increase the plant’s production of active pharmaceutical ingredients by 25%, Radio Iowa reported. About 400 employees will work at the facility when the expansion is finished in late 2028. Cambrex is a significant contributor to the local economy and to Floyd County’s wages being higher than the average rate of surrounding counties by 20%. <figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0uYzPt_1H31mRhe00" alt="https://img.particlenews.com/image.php?url=0uYzPt_1H31mRhe00" width="1500" height="566" ><figcaption>Vermeer Corp. began construction on a new manufacturing facility on the 186-acre Timmins Certified Site on the southeast side of Bondurant, near Interstate 80. Construction is anticipated to be complete by mid-2027. Submitted rendering</figcaption></figure><h2>Vermeer’s new Bondurant facility</h2>Vermeer Corp. began construction of its new manufacturing facility in Bondurant in May. Manufacturing is expected to begin in mid-2027.The new facility is located on the 186-acre Timmins Certified Site on the southeast side of Bondurant, near Interstate 80. The facility will employ more than 300 people. <figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0UjXEu_1H31mRhe00" alt="https://img.particlenews.com/image.php?url=0UjXEu_1H31mRhe00" width="300" height="350" ></figure>“Vermeer designs and manufactures equipment used in underground utility and pipeline installation, surface mining, tree care, recycling and forestry, agriculture and markets that ultimately feed and fuel communities, manage natural resources and connect people to the daily necessities of life,” Vermeer’s Vice President of Human Resources Kate Guess wrote in an email. The company’s new building, which will serve as a center for aftermarket components, will feature natural lighting, conditioned air throughout, dedicated training space and break rooms. It will include full-spectrum operations and incorporate advanced manufacturing tools and practices.“The facility will expand our production capacity and support future business growth while complementing our existing operations in Pella and other locations,” Guess wrote. “As demand for our equipment continues to grow, the additional manufacturing space will help us better serve our customers.”The Bondurant location is near interstates and provides access to logistics companies and employees across the region. The site also provides easy connectivity to the company’s headquarters in Pella.“This expansion helps ensure we have the capacity, talent and operational flexibility needed to support our customers and business growth for decades to come, and just as importantly, the community of Bondurant shares many of the values we look for in a long-term partner,” Guess wrote. Vermeer received $5.13 million in incentives for the project from IEDA in February. The project will include 12,000 square feet of office space, parking, and shipping and receiving space. The jobs created will pay $35.11 per hour.“Major manufacturing investments require long-term planning and significant capital commitments,” Guess wrote. “The incentive demonstrates the state’s commitment to advanced manufacturing and economic development and reinforces Iowa’s competitiveness when companies like Vermeer are considering where to make substantial growth investments.”Bondurant will contribute more than $29.45 million in incentives, including a six-year sliding-scale property tax abatement, infrastructure, connection fee waivers and building permit discounts. The city is also investing in a new road to the site. “We believe Iowa is a great place to build, innovate and grow, and we’re excited about the opportunities ahead for both our company and the communities where our team members live and work,” Guess wrote. </div></body>

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Iowa’s economy is largely concentrated around agriculture, finance and insurance and manufacturing, but no industry employs more people or contributes more to the state’s gross domestic product than manufacturing, according to a study from the Common Sense Institute. Manufacturing accounts for 17% of the state’s gross domestic product...

Manufacturing remains economic engine as projects take shape

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Iowa’s economy is largely concentrated around agriculture, finance and insurance and manufacturing, but no industry employs more people or contributes more

Manufacturing remains economic engine as projects take shape

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