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Presentation to Cedar Rapids Rotary

• Mike Tramontina, Director
• Iowa Dept of Economic Development
• January 7, 2008

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Iowas Economy Today

• Unemployment Rate 3.9 (64,700)
• Per Capita Income (2006) 33,236
• Median Wage (2006) 13.77/ 28,600 (32nd)
• Non-Farm Employment 1,610,600
• Manufacturing Employment 230,700
• Farmland Values up 22 (50 3 yrs)
• Tourism (2006) 5.8 Bil up 8
• Exports (2006) 8.4 Bil up 14.4
• SBA Loans (FY07) 821/182.3 Mil up 7.5

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Economic Performance

• Job Creation 1
• Employment grew yearly at 0.38 between 2000 and
  2007, lower than the U.S. Average of 0.60
  
• Unemployment 1
• Unemployment rate of 3.90 in August 2007 was
  lower than the U.S. rate of 4.60
  
• Unemployment rate in August 2000 was 2.80 as
  compared to 4.10 of the U.S.
  
• Population 2
• Current state population is 2,982,085,
  representing a change of 1.82 from 2000-2006
  compared to the U.S. rate of 6.1
  
• Average Wages 1
• Average wages of 33,878 in 2006 was 79.89 of
  the U.S. average of 42,405
  
• Growth rate for average wages was 3.54 from 2000
  to 2006, above the U.S. rate of 3.09
  
• Manufacturing Export Dollars 3
• Merchandise exports per worker in 2006 was
  6,697, lower than the U.S. average of 9,083
  
• Growth rate for merchandise exports was 10.82
  from 2000 to 2006, above the U.S. rate of 4.36
  
• Gross State Product 4
• In 2006, GSP per worker was 98,718, 85.7 of the
  U.S. average of 115,157 per worker
  
• Annual Growth per worker of 5.15 from 2000 to
  2006 was higher then the U.S. rate of 4.62

Source (1) Bureau of Labor Statistics (2) U.S.
Census Bureau (3) http//tse.export.gov (4)
Bureau of Economic Analysis
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Iowas GDP 2006 123,970 B
Agriculture, Forestry Fishing 4,051
Transportation, Warehousing 4,429
Manufacturing 26,068
Construction 5,191
Wholesale Trade 7,177
Retail Trade 7,537
Government 14,266
Health Care Social Asst. 8,184
Finance Insurance 15,055
Real Estate, Rental Leasing 11,312
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Employment by Traded Cluster
These Clusters represent 88 of Iowas traded
cluster employment
Source Monitor Cluster Mapping Dataset, U.S.
Census Bureau
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Wages by Traded Cluster
Source Monitor Cluster Mapping Dataset, U.S.
Census Bureau
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Job Creation by Traded Cluster
Change in total traded jobs from 2000 2006 -
42,879
Source Monitor Cluster Mapping Dataset, U.S.
Census Bureau
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Wages and Employment in Leading Traded Cluster
Source Monitor Cluster Mapping Dataset, U.S.
Census Bureau
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Foreign Direct Investment
FY 00 64.6 million 872 FTEs 13.05/hr
FY 02 112.7 million 1,398 FTEs 14.83/hr
FY 06 211.5 million 923 FTEs 20.47/hr
Leads Domestic 327 International 131 Total
458 Foreign Companies Employ 36,000, Includi
ng 54 of Manufacturing State Offices/Representat
ives in Mexico, Japan, Germany China.
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Grow Iowa Values Fund - July 03Nov. 07

• Total Projects 501
• Cap Investment 12.6 Billion
• New/Retained Job Potential 39,026
• State Taxes to State Incentives 2.07
• Small Under 100 Employees 55.4
• Medium 100-500 Employees 19.2
• Large Over 500 Employees 25.4
• Cities Under 10,000 51.3
• Cities 10,000 or Larger 48.7
• Iowa Expansion 59.4
• New Business to Iowa 9.5
• Start-up Business 31.1

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Iowa Values Fund and Other IDED Programs July 1,
2003 July 2007
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Average Wage of Jobs Funded by IDED Programs
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Long Term Economic Growth Strategy

• Invest Grow Targeted Industries
• Renewable Energy
• Biosciences
• Advanced Manufacturing
• Information Technology
• Increase Entrepreneurship

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Renewable Energy
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Available Biomass ResourcesNormalized by county
area
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Iowa Renewable Energy
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Iowa is Within a 600 Mile Radius of a 3.2 billion
Wind Turbine Market
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Office of Energy Independence Iowa Power Fund

• Roya Stanley, Director
• 11 Member Board, 7 Member Due Diligence
• 1st Meeting Convened September 26, 2007
• 100 m, 25 m/yr, 1st Awards February 2008
• Uses Commercialization, Research, Education

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Encourage Innovation Commercialization

• Private/University Partnerships- Bioscience
  Alliance, Advanced Manufacturing Council, Info
  Tech Council
  
• Skilled Workforce Initiatives
• Promote In-State Supply Chain, Lean Operations
• Build statewide network Provide funding for early
  stage development
  
• Identify Commercialization, Company Formation
  and Accelerated Growth
  
• Demonstration Fund (Prototypes)
• IT Joint Venture Fund (Orphan IP)

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Strengthen Advanced Manufacturing

• Establish Iowa Advanced Manufacturing Council
• Strengthen Iowa supply chains
• Develop/attract high skill employees
• Project Lead the Way

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Grow Bioscience

• Establish Bioscience Alliance of Iowa
• Leverage human animal drug development
• Attain leadership in advanced foods
• Develop Centers of Excellence
• Integrate skills in biosecurity

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Grow Information Technology

• Establish Information Technology Council
• Build linkages between small large firms
• Address cap. gaps development barriers
• Develop and attract IT workforce
• Raise Iowas profile as a technology state

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Challenges to Continued Growth

• Shortage of Skilled Workforce
• 150,000 Jobs Surplus
• Skilled Worker Shortage particularly in Rural
  Areas
  
• Too Few Students Teachers in Science,
  Technology, Engineering Math
  
• Too Little Diversity
• Lagging Entrepreneurship
• Increase Return on University Research
• Lack of Serial Entrepreneurs Skilled
  Management
  

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Innovation Output

• Patents 1
• Patents per 10,000 workers of 5.83 was 65.08 of
  the U.S. average of 8.96 in 2006
  
• A total of 732 patents were assigned to
  individuals in Iowa in 2006
  
• Patent Growth 1
• Growth rate per worker for patents was 1.05 for
  2000 to 2006, while the U.S. growth rate per
  worker was 0.41
  
• Establishment Formation 2
• Number of total establishments decreased at 0.78
  per year from 2000 to 2006 as compared to the
  U.S. growth of 1.85 per year
  
• Decline rate of 0.78 in private establishments
  was equal to the decline rate for the total
  establishment from 2000 to 2006
  
• Venture Capital Investments 3
• VC funding was 2 per worker in 2006-07 as
  compared to the U.S. average of 239 per worker
  
• VC funding decreased 10.51 in Iowa as compared
  to decline of 2.26 in the U.S. from 2001-02 to
  2006-07
  
• Fast Growth Firms 4
• Iowa hosted 0.4. of the Inc. 500 fast growing
  companies in 2007
  
• Iowa accounted for 1.11 of total employment in
  the U.S. in 2007

Source (1) USPTO (2) Bureau of Labor
Statistics (3) PwC Money Tree (4) Inc. Magazine
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Meeting the Challenges for Workforce

• Governors Workforce Summit http//www.iowalifecha
  nging.com/summit/
  
• Coordination with Community Colleges
• Generation Iowa Commission
• Enhance www.smartcareermoves.com
• Expand Project Lead the Way
• Career Awareness Campaign
• Student Internships, Student Competitions
• IT Upskilling Pilot
• Regents Initiative to increase Teachers in STEM

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Meeting the Challenges for Entrepreneurship

• Encourage Entrepreneurs and Commercialization at
  Universities Colleges
  
• Demonstration Fund Entrepreneurial Ventures
  Assistance
  
• Venture Capital Networking
• Statewide Network of Accelerators and Small
  Business Assistance,
  
• Identify Orphan IT opportunities
• Encourage Networking within Targeted Industries

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Meeting the Challenges of Community Development

• Continue Vision Iowa/CAT Programs
• Enhance Recreation, Tourism Cultural
  Opportunities
  
• Expand Downtown Resource Center/Main Street Iowa
• Develop New Rehab Workforce Housing
• Promote Opportunities for Civic Engagement
• Tell Iowas Story Better

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Increase Community Developmentwith
GreenStreets

• Reform IDEDs Community Development Programs
• Web Page With Green Links And TA
• Annual Green Conference on Eco-Tourism And Green
  Certification
  
• LEED Certification For Housing
• Promote Historic Preservation
• Green Teams For Community Volunteerism
• Promote Sustainable Growth
• Alternative Sewer And Water Control Technologies
• Green Grants Through Federal And State Dollars
• Promote Brownfield Redevelopment

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Recreation, Tourism Events

• Develop Natural Resources as Attractions
• Bike Trails
• River fronts, Water Trails and Lakes, Prairies
• Loess Hills Initiative
• Destination Parks
• Events Featuring Cultural Diversity

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Vision Iowa Cultural Attractions Tourism

• Created to Help Foster Large and Small Community
  Recreation and Attraction Projects
  
• Vision Iowa12 Projects218.5 million in
  Funding
  
• Communities Attractions and Tourism281 Projects
  Funded 94.8 million in Funding

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Main Streets, Downtowns, Neighborhoods
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Regional Marketing
1 Northwest Iowa Development
2 Iowa Lakes Corridor Development Corp.
3 Mid Iowa Growth Partnership
4 North Central Iowa Alliance
5 Cedar Valley Regional Partnership
6 Northeast Iowa Business Network
7 Western Iowa Advantage 8 Iowa Connections
9 Technology Corridor 10 Prosperity Eastern I
owa 11 Greater Council Bluffs Partnership 12
Triangle of Opportunity 13 Greater Des Moines
Partnership 14 South Central Iowa Partnership
15 River Hills Initiative 16 Great River Regi
on
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Questions?

• Iowa Department of Economic Development
• Michael.tramontina_at_iowalifechanging.com
• 515-242-4814

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IDED New Transitioning Staff

• Vince Lintz, Deputy Director of IDED
• Tim Waddell, Division Administrator, CD
• Cali Beals, Division Coordinator, CD
• Karen Merrick, Administrator, Innovation
  Commercialization Division
  
• Amy Johnson, Division Coordinator, BD
• Shawn Rolland, Public Information Officer
• Kay Snyder, Communications Director
• Diane Foss, Legislative Liaison

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Education and Labor
Source Monitor Executive Insight Survey
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Capital and Research
Source Monitor Executive Insight Survey
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Priorities for Government
Source Monitor Executive Insight Survey
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Future Threats
Source Monitor Executive Insight Survey
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Cali Beals

• Community Development
• 515-242-4822
• Cali.beals_at_iowalifechanging.com