Author Archives: AllianceChamber

5 on Friday: Fuel for Thought December 1, 2017

by Steve Dust, CEO, Greater Cedar Valley Alliance & Chamber

Remember 5 on Friday is a two-way street: please send me recommendations on books, reports, articles, blogs, videos, or anything you’re reading or watching that impacts business and the economy.

One: We Know This!

Iowa is tops for business and Forbes ratified that again, ranking our state No. 12 in its annual ranking. The comparisons that draw my eye are Iowa No. 12 vs. neighboring No. 4 and No. 13, nearby No. 10, and of course, No. 1 North Carolina.

Best States for Business – Iowa, Forbes, November 2017

Two: Our Use of Broadband Expands Infrastructure

The article linked below is from Chicago, so it’s not about the specific Cedar Valley. However, it is about you and me in the sense that our continuing, increasing use of broadband and cloud-based software, etc., is driving the demand for electricity to energize increasing levels of technology in our plants, offices, homes, and data centers. Data center development is one of the Alliance & Chamber’s business recruitment targets; we have a perfect site for a major center.

Our broadband use doesn’t come free. We are in great shape because we have utility providers in the Cedar Valley that not only have excellent generation capacity but also do a terrific job of planning and keeping up with increased demand across sectors. That demand is not likely to slow down.

You’re why ComEd needs to boost power output near O’Hare, John Pletz, Crain’s Chicago Business, November 22, 2017

Three: Smart Cities!

The educational/think piece this week is an excellent capture of the concept and possible outcomes of pursuing smart cities technology development. Smart cities are not about street design or council candidates. Instead, the concept speaks to attitudes about and applications of technologies across sectors to improve business, municipal, and human services as well as citizens experiences. It’s where we must go, to achieve the future state we desire. After reading this article, I challenge you to think about this: how do Cedar Valley cities collaborate to jointly make these big, complicated, and sometimes expensive investments?

Meeting the Needs of the Smart Citizen: The Quadruple Helix Approach in a Local, European and Global Perspective, Karl-Filip Coenegrachts, chief strategy officer for the city of Ghent, Belgium, LinkedIn, September 2, 2016

Now the public policy stuff

Four: Alliance & Chamber’s 2018 Policies for Economic Progress

Annually, the Alliance & Chamber assembles the issues and policies to advocate for — and sometimes oppose — in the upcoming legislative session. We’ll present this on Tuesday, December 5 at our Pre-session Legislative Reception, with Premier Sponsor Isle Casino Hotel. (Investors only). Our emphasis will be familiar: talent, business climate, economic development tools, and infrastructure. Here is a first look at the full policy statement. A big “thank you” goes to our Government Relations Committee.

2018 Greater Cedar Valley Alliance & Chamber Legislative Agenda

Five: How A Federal Corporate Tax Reduction Can Be Spent

The federal tax reform/reduction bill is getting a lot of play as it nears the Senate floor (maybe even today). There’s been a lot of discussion about the impact of tax credits on investment and growth. Here’s a good short article on the intent side.

CEOs Plan For Increase In Capex As Talks Of Tax Cuts Intensify, Melanie C. Nolen, Chief Executive, November 16, 2017

5 ON FRIDAY: FUEL FOR THOUGHT, NOVEMBER 24, 2017

by Steve Dust, CEO, Greater Cedar Valley Alliance & Chamber

Remember: 5 on Friday is a two-way street: please send me recommendations on books, reports, articles, blogs, videos, or anything you’re reading or watching that impacts business and the economy.

ONE: Standard Distribution Announces Next Project

I can never say “thank you” often enough to the risk-taking capitalists in the Cedar Valley who see a need and fill it with a product or service. This week, I pass along the announcement of another new industrial sector investment by Standard Distribution. Thank you.

Standard Distribution planning large expansion at airport, Tim Jamison, The Courier, November 18, 2017

TWO: The Geopolitics of Thanksgiving

You thought it was about making it through a very bad year and Europeans building alliances with the indigenous people of North America. You were kind of right. This is a lengthy, but fascinating look at the global context in which that first Thanksgiving took place. It’s an eye-opening history lesson, courtesy of Stratfor.

Thanksgiving and Puritan Geopolitics in the Americas, Starfor, November 24, 2017

THREE: Classroom Tech Advances

Here’s a great look at how technology startups are impacting education. So, if the Cedar Valley has the University of Northern Iowa — the highly ranked institution that teaches to be teachers — how do we capture economic development value from this trend?

A Silicon Valley startup is quietly taking over U.S. classrooms, Kia Kokalitcheva , Axios, November 22, 2017

FOUR: Your 2018 Reading List?

If you’re looking for books to read during holiday travel or just to stock up for 2018, here’s what the Gates-Bezos-Buffets of the world are reading.

9 Recommended Books That Bill Gates, Jeff Bezos, and Warren Buffett Think You Should Read, Marcel Schwantes

FIVE: Another Good News Source

Here’s another media source that I’ve included in my bundle, and I thought I’d refer it to you.

Axios

In the Media: Waterloo airport board proposes switch from American to United

Board member Steve Dust stressed the importance of eventually adding other destinations. “If we don’t find a way to get people west of here we’re going to continue to be very constrained,” he said.

Steve Dust, CEO Greater Cedar Valley Alliance & Chamber and airport board member is quoted in an article by Andrew Wind, education reporter for The Courier, about the Waterloo Regional Airport Board’s recommendation to switch to United Airlines as the airport’s sole carrier. The airport has been served by American Airlines for nearly six years. The U.S. Department of Transportation’s Office of Aviation Analysis will make the final decision.

Waterloo airport board proposes switch from American to United, Andrew Wind, The Courier, Nov 18, 2017

5 on Friday: Fuel for Thought, November 17, 2017

by Steve Dust, CEO, Greater Cedar Valley Alliance & Chamber

Remember: 5 on Friday is a two-way street: please send me recommendations on books, reports, articles, blogs, videos, or anything you’re reading or watching that impacts business and the economy.

ONE: Logistics Disruptors

Logistics is a big business in the Cedar Valley. Companies move materials in and products out to fulfill the needs of businesses and consumers — all over the globe. Just last night, Tesla unveiled an electric/battery-powered semi-transport. The PDF attached is a good, high-level research summary on the disruptors in the logistics space. These are things the Cedar Valley must pay attention to, from the perspective of current and future economic activity, and tax base for local government.

[PDF] THE TOP 5 DISRUPTIVE Trends Shaping Transportation and Logistics.September 2017, The Business Insider Research Team, September 2017

TWO: Will Iowa Grads Stay?

Here’s an overview of how Iowa is doing when it comes to keeping our grads at home. Use the Data Tool provided on this page to dig deeper into your industry.

Iowa College Student Retention, Iowa Workforce Development, 2017 Report

THREE: Economic Inclusion

This an excellent and well-documented, but lengthy, report from Brookings on how economic inclusion across sectors benefits the firm and the worker, as well as the overall regional economy.

A key point early in the report: One reason for this is that faster metro-level growth creates the tight labor markets that make broad-based wage gains more likely. One study found that a 10 percent increase in metropolitan employment raises average real earnings per person by around 4 percent. These gains are greater in percentage terms for African-Americans, lower-income individuals, and workers with less education.

Opportunity for growth: How reducing barriers to economic inclusion can benefit workers, firms, and local economies, Joseph Parilla, Brookings Institution, Thursday, September 28, 2017

FOUR: State of New Economy Index

Although this particular ranking only puts Iowa in the middle of the pack of states, you should be pleased with the progress made at the state level to accommodate the New Economy. This progress isn’t necessarily picked up in the Index.

The Index measures new economy activity, regardless of the particular focus of a regional or state economy. However, a defining trend of this era is the degree to which all have become more reliant on innovation as new technologies have become critical drivers of productivity and competitiveness.

The publisher of the Index, the Information Technology & Innovation Foundation (ITIF), is one of the most credible and knowledgeable voices in tech and innovation policy and practice.

The Index measures the degree to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven, and innovation-based. The report then discusses overarching strategic issues facing states, examines the role of large and small businesses in driving growth, and finally discusses a number of innovative models around the nation to spur workforce training and technology commercialization.

This message aligns very nicely with the second of three goals for our Greater Cedar Valley 2021 economic development initiative: Target Technology for Growth, recognizing that it’s the best allocation of our scarce talent resource, moving us farther, faster in creating wealth and economic vitality in the Cedar Valley.

The 2017 State New Economy Index: Benchmarking Economic Transformation in the States, Robert D. Atkinson and J. John Wu, Information Technology & Innovation Foundation, November 2017

FIVE: Irvine CA’s proposal to Amazon

I’ve become more curious about Irvine, California because our youngest son, Andrew, and his spouse, Emily, moved there this week. (She’s a data scientist with a United Healthcare-related firm.) Irvine has been known as the safest city in the nation since the early 1990’s.

Irvine is the home and playpen for billionaire Donald Bren, the wealthiest real estate developer in the nation. Starting as Irvine Ranch, then becoming The Irvine Company, it owns about 20 percent of Orange County. Recently, Bren proposed to Jeff Bezos that Irvine become the location of the new, second Amazon headquarters. Bren offers to bankroll the entire $5 billion project, building initial building space available immediately then constructing new space as necessary. The expected 50,000 employees would fit well in this city that is near, but not adjacent to, Los Angeles, where the mean income level is already above that anticipated for Amazon’s new employees (over $100,000).

The richest real estate developer in the US wrote a letter to Amazon CEO Jeff Bezos offering to pay for the insanely sought-after HQ2, by Tanza Loudenback. Business Insider, Oct. 19, 2017

In the Media: Cutting historic preservation tax credits

“There are a lot of buildings that would continue to sit empty or would have been demolished by now had that tax credit not been available to make the project economically sound,” said Steve Dust, president and CEO of the Greater Cedar Valley Alliance and Chamber. “And that’s repeated all over Iowa.”

Steve Dust is quoted in an article by Erin Murphy, State house reporter for The Courier/Lee Enterprises, about Iowa projects helped by federal historic preservation tax credits and the possible effect on Iowa projects if Congress’ tax reform proposal is approved.

Cutting historic tax credits could cripple economic development, officials warn, Erin Murphy, The Courier, November 13, 2017

5 on Friday: Fuel for Thought November 10, 2017

ONE: Cedar Valley Brags

We have a lot to brag about in our Cedar Valley. We see it every day, and we love it when others recognize us. Here is a link to the web page where we collect those bragging points. But we don’t find them all. If you find a brag, we should be sharing with our talented workforce, business, and influencer targets, send it to us. We’ll add them to the list.

Cedar Valley Alliance & Chamber website, Brags & Rankings

TWO: Computer Science in K-12 by 2019

This year, the Iowa legislature mandated the Iowa Department of Education complete a plan to offer instruction by July 1, 2019in the fundamentals of computer science in elementary schools, exploratory computer science in middle school, and at least one high-quality computer science course in high schools. The report linked below was issued November 1. Do you have comments on this? Let me know by email so I can collect your views, add mine, and send it along to the Iowa Department of Education and Governor’s Special Assistant for Education.

Computer Science Education Work Group, State of Iowa Department of Education, November 1, 2017

THREE: Eldorado Resorts

One of our newest Cedar Valley corporate names is Eldorado Resorts, Inc. (ERI). Eldorado purchased the Isle Hotel Waterloo along with other Isle of Capri assets this year. I’m still learning about the company, and its vision for the industry and the Waterloo property, specifically. Here’s a link to their October investor presentation.

Investor Presentation October 2017, Eldorado Resorts

FOUR: Iowa Taxes

The closer the calendar gets to January, the more we’ll read and hear about the priorities of associations and legislators about priorities for the 2018 session. Tax reform in many forms will be discussed, whether or not any (useful) action is taken. The Tax Foundation, a national think tank researches taxes of all classes at the federal and state level. One of the interesting takeaways is that their State Business Tax System Ranking places Iowa’s overall tax system as 40th in the nation, and our business tax system as 49th in the US. That isn’t good. Below is a link to their recommendations for Iowa. Follow the link below for details.

Iowa Tax Reform Options: Building a Tax System for the 21st Century, Tax Foundation, May 5, 2016

FIVE: International Trade in Solar Panels

The rules of the road for international trade and commerce is at the forefront – NAFTA, Brexit, and all that. But international trade impacts us at a granular level: the Cedar Valley exports a lot of ag commodities as well as equipment from tractors to winches, and we import components, ingredients, and more. But the rules of trade aren’t straightforward. Here’s an article that shows how complex, if not plainly goofy, the rules of trade get contorted. And there are a couple of links within the item that are good reads, too. (There’s advertising at the end that will allow you to sign up for the newsletter if you wish.)

Tariffs on Your Roof, Patrick Watson, Connecting the Dots(Mauldin Economics), November 7, 2017

5 on Friday: Fuel for Thought November 3, 2017

by Steve Dust, CEO, Greater Cedar Valley Alliance & Chamber

Fuel for Thought What's Steve Dust Reading this Week? November 3, 2017

One: Cedar Valley in Top 100 Places to Start a Biz

The website How to Start an LLC has ranked U.S. metros where it’s easiest to start a business, according to their matrix. The criteria, plus the entire list, is available at this link.

Top Cities to Start a Business, How to Start an LLC, 2017

Two: Your Comment Needed — Future Ready Iowa

I recently linked the Future Ready Iowa Alliance board’s website in this space. The recommendations to achieve 70 percent of the Iowa workforce holding post-secondary credentials are listed there. Your comments are needed. Are the goals on the right track?

Comment on the page at this link: Future Ready Iowa Alliance Final Recommendations

Three: Iowa’s Leading Indicators

The Iowa Department of Revenue publishes a monthly report. Spoiler alert for September: Industrials are good, Ag, not so good.

Iowa Leading Indicators Index September 2017 Report, Iowa Department of Revenue, September 2017

Four: Which Cities Are Attracting Tech Talent?

We’re learning how to attract talented people, as well as businesses to the Cedar Valley. This is an article that features some attributes of (much larger) places where tech-specific talent is willing to go. It’s a slide show, see button at top of web site.

5 U.S. Cities Luring Tech Talent Away From Silicon Valley, Entrepreneur, October 31, 2017

Five: What is a Smart City?

And in the vein of “what does it take,” the talent equation fundamentally depends on quality of place. This is a long think piece by someone paid to think about how to connect a complex system – a city – to meaningful data and information. The role of data, ignored as a frill by many, is essential to the city’s ability to thrive as a service deliverer and keeper of place. For those who volunteer countless hours over many years to improve their cities, and those in city government in any way, this is a good article to crunch through.

The Search for a Theory of Cities, Colin Harrison, Meeting of the Minds, November 2, 2017

5 on Friday: Fuel for Thought

by Steve Dust, CEO, Greater Cedar Valley Alliance & Chamber

Fuel for Thought What's Steve Dust Reading this Week? October 30, 2017

One: The Next Industrial Revolution

Joe Kaeser knows manufacturing: he has a high perch from which to view the industrial landscape at Siemens. This is a lengthy, but thought-provoking interview with the Siemens CEO.

Siemens CEO Joe Kaeser on the Next Industrial Revolution, Daniel Gross, strategy+business, February 9, 2016

Two: Dalio on the Two Economies

Honestly, I didn’t really know much about Ray Dalio/Bridgewater until he recently hit the tour circuit for his new book, Principles. I’m about one-third through that book – it’s really good — but recently came across this article he posted on LinkedIn, dealing with what Dalio sees, as many do, with two economies.

Our Biggest Economic, Social and Political Issue The Two Economies: The Top 40% and the Bottom 60%, Ray Dalio, LinkedIn, October 23, 2017

Three: Impact of a Federal Tax Rate Reduction

There’s a lot of rhetoric being thrown – well, shouted — about the proposal to drop the corporate tax rate. When the noise gets too goofy, dive into the data. How many people would get hired or how much of the savings goes to employees? Savings from lower tax payments go to the bottom line, where it is redistributed to investment in productivity – technology, training, and facilities as needed; and shareholders, and employees.

Here’s a short but technical observation that plays off another by Greg Mankiw, with a link to that content in the article linked below.

It’s All About the Rectangles, Steve Landsburg, The Big Questions, October 22, 2017

Four: Nebraska State Budget Woes

Iowa budget issues, attributed in large part to the farm slump, are shared by our neighbors. Here’s a story on Nebraska’s work to identify both the scope of the problem and the priorities needed to adjust spending. Thanks to Jim McKernan for passing this along.

Tough decisions on horizon, senator says, after $195 million drop in projected Nebraska tax revenue, Martha Stoddard, World-Herald Bureau, October 28, 2017

Five: It’s the Halloween Edition

Here’s insight and career advice to a witch who doesn’t want to be a witch anymore. Courtesy of The Muse blog.

Ask a Witch: What Do I Do if Brewing Potions Doesn’t Excite Me Anymore? Jenni Maier, Break Room, The Muse

“5 on Friday” is a two-way street: please send me recommendations on books, reports, articles, blogs, videos, or anything you’re reading or watching that impacts business and the economy.

Live it Up! Nick Kostner of Kryton Manufactured Metals, Inc.

How does Nick Kostner #livethevalley?

Nick Kostner, Megan Vogt-Kostner

What Nick Kostner does as Supply Chain Manager for state-of-the-art manufacturer KRYTON Engineered Metals in Cedar Falls can change from one hour to the next. You might find Nick working at his desk, on the shop floor, or in a customer location. He loves being empowered to try new things. “I’ve been given a lot of freedom in my day-to-day job to research and create new strategies, procedures, and processes to improve operations throughout the entire company.” Nick helped create the role that he began during an internship that almost didn’t happen: about a year earlier he was unenrolled from the University of Northern Iowa due to poor academic achievement. Ouch. He presented a detailed plan, was granted readmission, and got his act together. In 2016, he graduated from UNI with a Bachelor of Arts in Supply Chain Management. Newlyweds Nick and wife Megan live in Waverly: small enough to see people they know everywhere but with the conveniences of a larger metro. #liveitup

One: We Know This!

Two: Our Use of Broadband Expands Infrastructure

Three: Smart Cities!

Now the public policy stuff

Four: Alliance & Chamber’s 2018 Policies for Economic Progress

Five: How A Federal Corporate Tax Reduction Can Be Spent

ONE: Standard Distribution Announces Next Project

TWO: The Geopolitics of Thanksgiving

THREE: Classroom Tech Advances

FOUR: Your 2018 Reading List?

FIVE: Another Good News Source

ONE: Logistics Disruptors

TWO: Will Iowa Grads Stay?

THREE: Economic Inclusion

FOUR: State of New Economy Index

Grow Cedar Valley