IOWA OFFICIAL REGISTER

IOWA'S DIVERSIFIED ECONOMY

For more information about Iowa's economy contact: Iowa Department of Economic Development, 200 E. Grand Ave., Des Moines 50309; 515/242-4700

 

Iowa is known throughout the world as America's heartland, the source of an abundant supply of top quality agricultural and manufactured goods. The natural wealth of Iowa's soil, our cutting edge technology, world-class educational system and quality workforce has allowed Iowa to yield a diversified economy.

While the trend of consolidation has resulted in a diminished farm population, the contribution of agriculture to Gross State Product assures that all Iowans maintain an interest and awareness in that portion of our economy. But it would be a mistake to restrict perception of the state to farm-related goods and services, or to conclude that all Iowans are farmers.

The information in this section underscores Iowa's economy.

Iowa's Top Personal Income Source: Service Sector and Manufacturing
It is clear from these charts that only a small percentage of our population derives its personal income directly from agriculture. But indirectly, agriculture-generated dollars have spawned vigorous growth in other sectors. Because our economy is in the early stages of diversification, we are still vulnerable to fluctuations in demand for agricultural products. As new industries mature, a broader consumer base will bring increasing stability.

Total Personal Income
by Industrial Source, 1997
Services
15%
   Manufacturing
15%
Government
10%
   Retail Trade
7%
Agriculture
5%
   Wholesale Trade
5%
Finance/Insurance/Real Estate
5%
   Transportation/Public Utilities
4%
Construction 4%
   
 
   

Value of Agricultural Export, FY97

(in millions of dollars)

All Commodities
$4,180.9
   Soybeans
$1,615.0
Feed Grains
$1,504.0
   Live Animals
$515.5
Feeds and Fodder
$126.8
   Hides and Skins
$70.0
Seeds
$64.0
   Fats and Oils
$47.1
Dairy Products
$24.9
   Vegetables
$ 7.5
Poultry
$37.1
   Wheat
$2.0
Other
$167.1
   
 
   

Value of Iowa Factory Exports by Selected Industries, 1997
(in millions of dollars)

Total
$5,175.2
    
Machinery
$1,770.2
   Food Products, Processed
$1,162.3
Chemicals
$454.1
   Electronics
$418.8
Transportation Equipment
$264.8
   Instruments
$213.5
Rubber & Plastics
$199.7
   Primary Metal
$223.8
Fabricated Metal
$151.1
   Miscellaneous
$75.2
Paper Products
$50.4
   Furniture & Fixtures
$71.4
Printing & Publishing
$43.9
   Lumber Products
$27.1
Apparel
$17.3
   Stone, Clay & Glass
$15.9
Leather Products
$8.4
   Petroleum Products
$1.9
Textiles
$5.4
   

Manufacturers Laud our Productivity

Iowa's agricultural profile is so strong that many people forget that our state is surprisingly industrial. Approximately 18 percent of the Iowa workforce is employed in manufacturing. Historically, our manufacturing sector has focused on heavy machinery, food processing, electronics and chemicals.

Taking advantage of Iowa's fine reputation for agricultural products, our food processors enjoy ready access to raw materials and an excellent workforce. Manufacturers of rubber and plastic products, machinery, electronics and pharmaceuticals all note the Iowa work ethic as a positive factor in their location here.

Impact of Agriculture Felt Throughout Iowa Economy
Though agriculture represents between 4 and 8 percent of Iowa's personal income, approximately 97,000 Iowa farms raise 18 percent of the U.S. corn crop and 18 percent of the U.S. soybean crop. In addition, Iowa produces 18 percent of U.S. pork, 4 percent of our grain-fed beef, and 8 percent of the egg production.

Financial Sector Targeted for Continued Growth
The Iowa work ethic has resulted in a well-deserved reputation for productivity. While we are proud of this characteristic, high productivity is responsible for economic shifts that continue to challenge our versatility.

Productivity on the farm generated development of our manufacturing sector. Productivity in manufacturing, combined with sophisticated technology, has revealed an emerging financial sector. Iowa has seen employment growth in the home offices of its many insurance and financial service companies in an industry that has experienced cutbacks in other states.

Analysts consider the people of Iowa particularly suited to strong performance in this sector. Our well-educated workforce, stable social environment, traditional values and conservative ideology provide a solid base from which to evaluate and satisfy service needs in recreation, medicine, communication and business.