Tag Archives: Economic Development

Making the Cedar Valley one of the Best Job Markets in the U.S.

Waterloo, Iowa – Sept. 28, 2018—Joel Robinson can still remember his first day at Advanced Heat Treat (AHT). “I was the 50^th employee hired in 1999.” Fast forward 19 years, and Robinson is now the continuous improvement manager at one of the best heat-treating companies in the country, and he couldn’t imagine working anywhere else. Robinson says the people and culture at AHT are what make coming to work every day, “We have a lot of external people that come in and visit, and they frequently comment about our people and the services that we provide.”

Galya Hoppenworth has worked at AHT for 15 years, and says the people in the Cedar Valley are the key to the company’s success, “Our CEO, Gary Sharp, chose to have the business here (Waterloo) and continues to keep it here. I think that says a lot about the Cedar Valley and the people that we have working for us.”

In a recent national survey done by Zippia, a San Mateo, Calif.–based job search site, the Cedar Falls-Waterloo area was ranked ninth in the country for job markets in the U.S. The site used data from the Bureau of Labor Statistics to rank the top job markets in the U.S. based on how much local wages rose, unemployment dipped and the current jobless rate. While the national unemployment rate is 3.8 percent (May 2018), the Cedar Falls-Waterloo metro stands at 2.7 percent.

One important aspect of business in the Cedar Valley that stands out from the rest of the state is the company culture and people here.

“Our mission really is one reason why I love what I do; creating those fulfilling lifestyles,” explained Amanda Lynch. Lynch is a Cedar Valley native and has been the wellness coordinator at Western Home Communities for the past six years. “It’s not just for our residents, but it is also for our employees and their families. We have flexible schedules. I have an amazing boss who, if I have something come up or have a sick kid, they understand that, they make it work, they work around that, and not every boss is like that.”

Having a company that understands the realities of life and having a true work-life balance is exactly why Therese Stevens was drawn to a career at BraceAbility, now serving as the chief operations officer/COO.

“I was definitely in a higher pressure, high stress, high expectation, fast-paced position previously, taken its toll on me,” says Stevens. “I think our culture, attitude and whole approach is genuine, honest and adult. We have realized that we live and work in a 24/7 world, so no one here is really worried about which hours you choose to work, it’s more about getting the work done, and that’s a breath of fresh air to know when you show up every day.”

For Waterloo-based VGM Group, highlighting a unique company culture, non-traditional benefits and workplace amenities are key factors in employee recruitment and retention efforts. Along with being employee-owned, offering a free health clinic for employees and their families and other work perks, VGM’s recent expansions in the Cedar Valley have included distinct amenities to enhance the work environment for its employees.

Renovations to its annex building located at 4024 Alexandria Drive in Waterloo included redesign of 8,200 square feet of workspace to accommodate VGM’s programmers. The new Tech Center includes collaboration rooms, treadmill desks, a Lego wall, custom built bar and a four-player video game console with more than 2,000 games. The break area offers strength and fitness equipment, golf simulator, ping-pong, pool table and a lactation room.

“We’ve made substantial investments in our business to position us for future success,” said Mike Mallaro, CEO of VGM Group, Inc. “The Tech Center serves as a central hub for all things related to data and programming for VGM’s companies. The new workspace creates an environment that fosters idea creation and promotes collaboration for our programmers – all in a non-traditional, comfortable space designed to serve any generation of worker.”

As businesses in the Cedar Valley compete for new talent, it’s no secret that catering to today’s workforce is key in drawing new recruits through the front doors. Today’s employee looks for flexibility, a relaxed work environment and opportunities to connect with the community they call home. With Zippia’s ranking of Waterloo-Cedar Falls as #9 on its Top Job Markets list, coupled with Iowa ranked best state by U.S. News & World Report, the opportunity to recruit talent to the Cedar Valley has never been more attractive.

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METRO AREA MAKES LIST OF SUCCESSFUL MANUFACTURING COMMUNITIES

CEDAR FALLS/ WATERLOO, Iowa – Waterloo/Cedar Falls positioned among the top 22 successful manufacturing intensive communities according to the W.E. Upjohn Institute for Employment Research.

In May 2018, Timothy J. Bartik of the W.E. Upjohn Institute released a study identifying manufacturing intensive communities in the United States that were performing well from 2000 – 2015, when most of these types of communities were suffering.

Bartik identified three strategies that were utilized in the successful communities.

“Expand customized services to small and medium-sized manufacturers.”
“Invest in infrastructure and services that make the community’s land better for business development.”
“Increase public spending on services that increase local workers’ job skills.”

The greater Cedar Falls/ Waterloo manufacturing hub attributes this success to the partnering of private organizations with public entities to develop programs that create and carry out all three of the strategies mentioned. The Cedar Valley Alliance and Chamber has seen this to be true; reporting that 75% of manufacturers interviewed since 2010 have reported that they are growing. There are a large number of programs and initiatives working to promote manufacturing growth in the Cedar Valley.

Starting in area high schools, the Waterloo Career Center and Cedar Falls CAPS (Center for Advanced Professional Studies) are offering manufacturing programs to expose students to the industry as well as connect them with area organizations. Higher education institutions have developed technical training programs designed to provide college students with the skills to be successful and the connections to build great careers here in the Cedar Valley.

Hawkeye Community College (HCC) uses the 260E and 260F training programs. 260E is a program for training of new employees and 260F is a training program to upskill current employees. Furthermore, HCC and the University of Northern Iowa (UNI) partnered to create the UNI Metal Casting Additive Manufacturing Center. This center is housed within TechWorks, the first technology park of its kind in Iowa to combine world-class business amenities within a Brownfield industrial redevelopment project.

The study notes that from 2000 – 2015, the United States saw an 8.5% increase in the overall job growth while manufacturing intensive communities saw a 2.7% decrease. Waterloo and Cedar Falls governments and the Alliance & Chamber continuously recognize the importance of providing resources to existing business, to encourage and support their growth.

To attract new manufacturers to the area and encourage the growth of current manufacturers, the cities are proactive about developing land and allotting land to be used by manufacturing operations. Additionally, businesses can receive tax credits when developing and building on brownfields through Iowa Economic Development Authority.

The Alliance & Chamber assists with this application process. This has allowed the area to use the Cedar Valley’s city space efficiently.

For small to mid-sized manufacturers, CIRAS (Center for Industrial Research and Service) has been a phenomenal asset to organizations here in the Cedar Valley; providing high quality consulting at a more affordable rate.

All these efforts by the city governments, educational institutions, the Alliance & Chamber and the hard work of Cedar Valley manufacturers contributed to the growth of the region, earning its spot in Upjohn’s top 22 successful manufacturing intensive communities.

Greater Cedar Valley Alliance & Chamber Report: Four Years of Economic Development Will Spur $1.8 Billion in Economic Output

Study Finds Every Dollar Invested Generates $64 in Output

Dorothy de Souza Guedes, Independent Writer

Waterloo, Iowa, May 7, 2018: Regional businesses will benefit from more than $1.8 billion in economic output generated over 10 years due to investments in economic development projects supported by the Greater Cedar Valley Alliance & Chamber from 2013-2017.

That is the conclusion drawn from analyzing data gathered by the Alliance & Chamber and reported in “The Economic Impact of the Greater Cedar Valley Alliance & Chamber from 2013-2017,” a report prepared by Impact DataSource, an Austin, Texas consulting, research, and analysis firm.

The Cedar Valley of Iowa is in northeast Iowa and is within a day’s drive of all major Midwest markets only 180 miles south of the Minneapolis/St. Paul and 265 miles west of Chicago and 315 miles southwest of Kansas City with a regional population of 236,038.

The Alliance & Chamber assisted 23 existing business expansions and new locations in the Cedar Valley of Iowa creating $260.3 million in new capital investment. Together, creating 558 jobs and retaining an additional 30 direct jobs and anticipated creation of 400 indirect jobs.

The report noted that for every $1 in new capital investment generated by these project, the businesses supported and generated:

$13.62 in additional worker earnings
$9.63 in additional local taxable sales
$2.01 in additional net benefits for cities
$5.61 in net benefits for all local taxing districts

During that five-year period, the Alliance & Chamber supported new or expanding existing businesses in economic development projects that created employment opportunities and spent money on supplies, services and other inputs. Direct expenditures include both those by the expanding businesses and earnings paid to new workers. This created a positive ripple effect on regional businesses as workers spend money in area businesses such as restaurants, banks, grocery stores, apartment complexes, convenience stores, and service companies.

“The Greater Cedar Valley Alliance & Chamber’s one-stop center for economic development services is critical to a community’s economic growth and many of these investments may not have occurred without the efforts of the Alliance & Chamber,” the report’s authors concluded.

“We act as a catalyst for economic and community development through strategies for growth, which prove to increase the economic vitality of this region like no other place in the state of Iowa. We are the Cedar Valley’s One-Voice for business and development interests. We believe in strong community development that feeds a strong economic development goal.,” said Cary Darrah, Acting CEO, Greater Cedar Valley Alliance & Chamber.

Local and state governments committed $24.9 million for incentives. After accounting for costs associated with increased demand for city services from new or expanding businesses and new households, the cities are expected to receive approximately $49.9 million in net benefits over the 10-year period.

The Alliance & Chamber plans to have the economic impact analysis done annually to review the impact of economic development projects on businesses and works in the Greater Cedar Valley of Iowa.

The Greater Cedar Valley Alliance & Chamber’s mission is to increase economic vitality and wealth by leading Collaborative economic and community development in Northeast Iowa.

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In the Media: Ashley Furniture warehouse opens in Cedar Falls

“There’s a new neighbor in the Cedar Falls Industrial Park — a 153,000-square-foot neighbor.

Furniture Mart USA of Sioux Falls, S.D., has opened its new $7.2 million Ashley Furniture distribution center at 2615 Capital Way, between Bossard-IIP and the Target Distribution Center..

Stewart said city officials have been ‘very responsive’ with assistance through the start-up process, and the Greater Cedar Valley Alliance & Chamber has assisted in recruiting employees.”

Read the entire article here: Ashley Furniture warehouse opens in Cedar Falls, Pat Kinney, The Courier, January 17, 2018

In the Media: Steve Dust to leave Greater Cedar Valley Alliance after 14 years

“‘I’m not retiring,'” Dust said. ‘I think what made me successful here, to the extent that I was, was my experience and skills in helping organizations find that vision, refine it, and create the organization and build the organization. That’s what I’ve done. That’s what I enjoy and that’s what I’m successful with.’

‘Just as I arrived at a time when the community was trying to come together to create the Cedar Valley, now we have another generation of leadership that’s emerging,’ Dust said. ‘There’s a whole raft of new business owners and senior manager who are going to be making decisions about what this economy is going to be.'”

Steve Dust to leave Greater Cedar Valley Alliance after 14 years, Pat Kinney, The Courier, January 16, 2018

In the Media: Courtyard by Marriott opens on TechWorks Campus

“I’m really excited about it,” she said. “It’s a seven-year commitment coming full circle,” since the hotel project first was conceived in 2010. “First it was one step forward, two steps back; then two steps forward and one step back; then just full steam ahead. It’s been an interesting progression. And we couldn’t find a better developer or better hotel partners.”

Cary Darrah, President of TechWorks Campus and Vice President of Community Development for the Greater Cedar Valley Alliance & Chamber, is quoted in this article about the opening of Courtyard by Marriott Waterloo Cedar Falls.

Courtyard by Marriott opens in former Deere building, Pat Kinney, The Courier, December 19, 2017

In the Media: Dust comments on possible ALO runway closing

“Steve Dust, an airport board member and director of the Greater Cedar Valley Alliance and Chamber, said he believes the airport property could be attractive to new employers.

‘We’ve got 300 acres around our airport that’s been planned for industrial development,” Dust said. ‘One of the things that’s becoming more and more important again is rail service.”

Potential Waterloo runway closure draws fire, Tim Jamison, The Courier, December 21, 2017

5 on Friday: Fuel for Thought December 8, 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: Chicago Fed on the Midwest Economy

The most recent Midwest Economy Index, from the Chicago Federal Reserve, measures nonfarm business activity in the Fed District’s multi-state area of the Upper Midwest.

Midwest Economy Index (MEI), Federal Reserve Bank of Chicago, November 30, 2017

TWO: What NAFTA Means to Iowa

A still-hot topic is whether the 25-year-old North American Free Trade Agreement (NAFTA) will survive, and, if so, in what form. This is a simple infographic that shows what NAFTA means to states. Spoiler alert: nearly half of all exports are headed for NAFTA nations. Tariffs would be damaging to our manufacturers and producers. Iowa is No. 7.

Which States Would Be Hit Hardest by Withdrawing from NAFTA?, U.S. Chamber of Commerce, November 17, 2017

THREE: The Reconciliation on the Federal Tax Reduction Bill

There’s a lot of discussion now about what a tax reform/reduction should look like. Each of us must decide our view on business tax, and then again how it impacts us at home. This is a good article about what the reconciliation process will look like as the Senate and House meet to smooth differences to the final bill.

Tax Package Next Steps: Reconciling Differences, Wells Fargo Economics, December 4, 2017

Four and Five: What Does A Blockchain Do?

The final two links of the day are about something called blockchain, a “distributed electronic ledger that uses software algorithms to record transactions with reliability and anonymity.” We see it starting in transactions of various kinds that require collaboration among parties, whether distance is an issue or not. I’ve been learning about it as a part of our emphasis on technology in our Greater Cedar Valley 2021 business development plan. Two of the better items I’ve read include the following. The IBM article is a detailed primer.

FOUR: Strategist’s Guide to Blockchain, John Plansky, Tim O’Donnell, and Kimberly Richards, Strategy+Business, January 11, 2016

FIVE: Blockchain for Dummies, Manav Gupta, IBM Limited Edition, 2017

In the Media: Waterloo renews contract to fund Alliance & Chamber

The City of Waterloo approved a new contract with the Greater Cedar Valley Alliance & Chamber: $28,500 plus $56,500 in incentive payments.

“Lisa Skubal, GCVAC vice president of economic development, said those efforts landed $37 million in projects and 246 new jobs in the first six months of the fiscal year, primarily from expansions at Crystal Distribution Services and Tyson Fresh Meats…

Skubal said the city’s internal economic development staff is ‘transaction oriented’ and willing to work with prospects to get deals done. The challenge was Waterloo’s high property tax rate.

Alliance and Chamber CEO Steve Dust said the city is generally able to cover the property tax discrepancy through additional incentives to businesses.

‘You burn through incentives overcoming the property tax issue,’ he said.

Dust said one of the biggest issues on the horizon involves talent development, which is why the GCVAC is working on programs to recruit and train the work force businesses need to thrive locally.”

Waterloo renews GVCA contract, Tim Jamison, The Courier, November 28, 2017

ONE: Chicago Fed on the Midwest Economy

TWO: What NAFTA Means to Iowa

THREE: The Reconciliation on the Federal Tax Reduction Bill

Four and Five: What Does A Blockchain Do?

Grow Cedar Valley