10
JANUARY 2018 Manufacturing in Iowa INSIDE: SECTOR SIZE 2 COMPOSITION 4 AVERAGE EARNINGS 5 EXPORTS 6 RECENT TRENDS 7 STATE RANKINGS 9 COUNTY DEPENDENCE 10 HIGHLIGHTS Iowa is home to approximately 6,080 manufacturing firms. Manufacturing contributed $34.0 billion to Iowa’s economy in 2016, representing 18.4 percent of the state’s total gross domestic product (GDP). Iowa ranks seventh among all states in its percentage of GDP from manufacturing. The manufacturing sector’s 220,989 jobs accounted for 10.6 percent of Iowa’s total employment in 2016. More than half (53.4 percent) of Iowa’s manufacturing jobs are located in its non-metropolitan counties. Earnings from manufacturing jobs account for 12.1 percent of total earnings in Iowa’s metropolitan areas and 24.0 percent of total earnings in non-metropolitan regions. The average manufacturing job in Iowa paid $56,080 in wages and salaries in 2016. Iowa exported $10.35 billion worth of manufactured goods to other countries in 2016.

Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

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Page 1: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

J A N U A R Y 2 0 1 8

Manufacturing in Iowa

I N S I D E :

S E C T O R S I Z E 2

C O M P O S I T I O N 4

A V E R A G E E A R N I N G S 5

E X P O R T S 6

R E C E N T T R E N D S 7

S T A T E R A N K I N G S 9

C O U N T Y D E P E N D E N C E 1 0

H I G H L I G H T S

Iowa is home to approximately 6,080 manufacturing firms.

Manufacturing contributed $34.0 billion to Iowa’s economy in 2016, representing 18.4 percent of the state’s

total gross domestic product (GDP).

Iowa ranks seventh among all states in its percentage of GDP from manufacturing.

The manufacturing sector’s 220,989 jobs accounted for 10.6 percent of Iowa’s total employment in 2016.

More than half (53.4 percent) of Iowa’s manufacturing jobs are located in its non-metropolitan counties.

Earnings from manufacturing jobs account for 12.1 percent of total earnings in Iowa’s metropolitan areas and

24.0 percent of total earnings in non-metropolitan regions.

The average manufacturing job in Iowa paid $56,080 in wages and salaries in 2016.

Iowa exported $10.35 billion worth of manufactured goods to other countries in 2016.

Page 2: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

Iowa is home to approximately 6,080

manufacturing firms operating from 6,570

physical establishments throughout the state.

A large fraction of Iowa’s manufacturing

firms are small proprietorships or

partnerships with no paid employees

other than the principals. Known as

“nonemployer firms,” these

establishments comprise 50 percent of

Iowa’s manufacturing firms.

45 percent of Iowa’s manufacturing firms

are owned by small or medium-sized

enterprises (SMEs) with fewer than 500

paid employees.

Large manufacturing enterprises, with

500 or more employees, account for 5

percent of Iowa’s manufacturing firms. Source: U.S. Census Bureau

N U M B E R O F F I R M S

Page 2 M A N U F A C T U R I N G S E C T O R S I Z E

G R O S S D O M E S T I C P R O D U C T

Source: U.S. Bureau of Economic Analysis

Note: Agriculture and natural resources industries include production agriculture, agricultural services, forestry, fishing, hunting, and mining. Activities such as grain processing,

ethanol production, meat slaughtering and processing, agricultural chemical and fertilizer production, and agricultural equipment manufacturing are classified within the manufac-

turing sector, per national industrial accounting standards. The financial activities sector includes finance, insurance, and real estate industries.

Gross domestic product (GDP) measures

the contributions of labor and capital to

the market value of goods and services

produced in a state. The total GDP for

Iowa’s industries in 2016 was $185.2

billion.

The manufacturing sector contributed

$34.0 billion to Iowa’s economy in 2016,

representing 18.4 percent of the state’s

total GDP. Iowa ranks seventh among all

states in the percentage of GDP derived

from the manufacturing sector.

When measured by GDP size,

manufacturing ranks second among

Iowa’s major economic sectors.

Manufacturing ranks fifth in GDP size

among major economic sectors

nationally.

N U M B E R O F I O W A M A N U F A C T U R I N G F I R M S B Y

E M P L O Y M E N T S I Z E O F T H E P A R E N T E N T E R P R I S E

P E R C E N T A G E O F I O W A G D P B Y M A J O R S E C T O R

3,040

1,005

499398

569

267 305

1–4 5–9 10–19 20–99 100–499 500+

NonemployerFirms

Small to Medium Enterprises (SMEs) LargeEnterprises

18.4%

2.1%

2.1%

2.9%

4.6%

5.2%

6.2%

7.5%

11.2%

15.7%

24.1%

Other services

Information

Leisure and hospitality

Construction

Agriculture and natural resources

Professional and administrative services

Education and health services

Government

Trade, transportation, and utilities

Manufacturing

Financial activities

Page 3: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

Iowa’s manufacturing sector had

220,989 jobs in 2016, accounting for

10.6 percent of the state’s total

employment. In the United States,

manufacturing accounted for 6.8

percent of total employment.

Measured by employment size,

manufacturing ranks fourth among

Iowa’s major economic sectors. In the

United States, manufacturing ranks

seventh among major sectors.

More than half (53.4 percent) of Iowa’s

manufacturing jobs are located in non-

metropolitan areas. By county,

manufacturing employment was highest

in Linn (18,405 jobs), followed by Polk

(17,431 jobs).

E M P L O Y M E N T

10.6%

1.3%

5.3%

5.3%

5.8%

8.1%

9.1%

9.7%

13.0%

13.0%

18.8%

Information

Other services

Agriculture and natural resources

Construction

Leisure and hospitality

Professional and business services

Financial activities

Manufacturing

Government

Education and health services

Trade, transportation, and utilities

Page 3 M A N U F A C T U R I N G S E C T O R S I Z E

P E R C E N T A G E O F I O W A J O B S B Y M A J O R S E C T O R

N U M B E R O F M A N U F A C T U R I N G J O B S B Y C O U N T Y

Source: U.S. Bureau of Economic Analysis

Note: These employment statistics count the number of full-time and part-time jobs, as opposed to the number of employed persons.

Dickinson

2,131Allamakee

1,165

Winneshiek

1,462

Howard

1,358

Osceola

397

Emmet

806Kossuth

1,375

Lyon

699 Mitchell

845

Winnebago

800

Worth

430

Sioux

5,371O'Brien

662

Cerro

Gordo

2,631

Hancock

3,627

Clay

874

Palo

Alto

468

Chickasaw

1,290Floyd

1,286

Fayette

652

Clayton

1,098Cherokee

722

Plymouth

2,528

Buena

Vista

3,326

Pocahontas

517Wright

1,448Franklin

871

Humboldt

1,044 Butler

999

Bremer

1,828

Dubuque

9,327Delaware

1,777Webster

2,468

Buchanan

1,385

Black

Hawk

15,672Woodbury

5,475

Ida

1,243Sac

497Calhoun

111Hamilton

732Hardin

660

Grundy

378

Jackson

954Benton

723

Linn

18,997Tama

430

Jones

1,032Monona

107Crawford

2,458

Carroll

1,258Marshall

4,961

Boone

651Greene

711

Story

4,570Clinton

4,887Cedar

686Harrison

399Shelby

601Dallas

2,104Polk

17,827

Audubon

242

Guthrie

190

Jasper

2,256

Iowa

4,385Poweshiek

1,856Johnson

5,634

Scott

12,047

Muscatine

7,555

Warren

586

Madison

330Washington

1,098

Keokuk

188Mahaska

1,623

Marion

6,407

Pottawattamie

4,856Cass

752Adair

450 Louisa

1,416

Jefferson

1,048 Henry

2,190

Wapello

3,498

Clarke

1,130

Monroe

1,333

Lucas

166

Mills

246Montgomery

691Adams

186

Union

1,666 Des

Moines

4,956Fremont

899Page

1,047

Van

Buren

648

Taylor

556

Davis

238

Ringgold

48

Decatur

136

Appanoose

925

Wayne

539Lee

4,574

Number of jobs

Below 500

500 - 2,500

More than 2,500

Page 4: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

I O W A ’ S D I V E R S E M A N U F A C T U R I N G S E C T O R

Page 4 M A N U F A C T U R I N G S E C T O R C O M P O S I T I O N B Y I N D U S T R Y

2015 GDP Location

($ mill ions) GDP Jobs Establishments GDP Jobs Establishments Quotient

Machinery................................................................. 7,790 22.7% 17.5% 8.3% 6.7% 8.6% 6.2% 2.04

Food and beverages............................................... 7,249 21.1% 25.1% 15.1% 12.4% 14.5% 13.5% 1.73

Chemicals................................................................. 6,466 18.8% 5.1% 4.2% 17.4% 6.5% 4.3% 0.79

Computers and electronics................................... 1,964 5.7% 5.5% 1.6% 12.8% 8.4% 3.5% 0.66

Fabricated metals................................................... 1,927 5.6% 9.6% 15.3% 6.7% 11.5% 14.4% 0.83

Transportation equipment..................................... 1,599 4.7% 6.1% 3.3% 13.5% 12.6% 3.5% 0.48

Plastics and rubber products................................ 1,186 3.5% 5.2% 3.1% 3.7% 5.5% 2.6% 0.95

Primary metals......................................................... 958 2.8% 3.2% 1.6% 2.5% 2.9% 1.4% 1.10

Nonmetallic mineral products.............................. 913 2.7% 2.7% 5.9% 2.4% 3.3% 3.7% 0.81

Paper.......................................................................... 829 2.4% 1.7% 1.0% 2.7% 2.9% 0.9% 0.58

Furniture and related products............................. 811 2.4% 3.4% 4.6% 1.3% 3.3% 5.1% 1.02

Electrical equipment and appliances.................. 766 2.2% 3.0% 1.2% 2.6% 3.1% 2.0% 0.99

Wood products......................................................... 652 1.9% 4.2% 7.2% 1.3% 3.3% 6.1% 1.26

Printing and related................................................. 493 1.4% 3.1% 7.3% 1.8% 3.9% 8.1% 0.81

Miscellaneous.......................................................... 381 1.1% 1.9% 13.5% 3.8% 5.5% 15.6% 0.35

Petroleum and coal................................................. 277 0.8% 0.2% 0.4% 7.3% 0.9% 0.6% 0.20

Textile and textile product mills........................... 54 0.2% 0.4% 2.0% 0.8% 1.9% 2.2% 0.20

Apparel...................................................................... 46 0.1% 0.7% 4.2% 0.4% 1.6% 6.2% 0.43

% of Iowa Manufacturing Totals Comparative U.S. Percentages

Sources: U.S. Bureau of Economic Analysis and County Business Patterns, U.S. Census Bureau

I O W A ’ S M A N U F A C T U R I N G I N D U S T R I E S R A N K E D B Y G D P

D U R A B L E A N D N O N D U R A B L E G O O D S

Industries within the manufacturing sector are frequently grouped into two

broad categories: durable goods and nondurable goods. Durable goods are

tangible products that can be stored or inventoried and that have an average

life of at least three years. Nondurable goods have an average life of less

than three years.

Iowa’s durable goods industries account for a higher fraction of jobs and GDP

than nondurable goods industries. Durable goods production accounts for

50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its

manufacturing jobs. Nationally, durable goods production accounts for 54.0

percent of manufacturing GDP and 62.4 percent of manufacturing jobs.

S P E C I A L I Z A T I O N B Y I N D U S T R Y

Areas of relative industrial specialization within the manufacturing sector may

be identified using “location quotients,” which divide a state’s percentage of

employment in a given industry by that same industry’s percentage of U.S.

employment. A location quotient greater than one indicates specialization

and suggests the state has a relative competitive advantage in that industry.

Iowa demonstrates relative specialization in the following manufacturing

industries: machinery, food and beverages, wood products, primary metals,

and furniture and related products.

Machinery.................................................. 38,625

Fabricated metals.................................... 21,140

Transportation equipment...................... 13,442

Computers and electronics.................... 12,231

Wood products.......................................... 9,219

Furniture and related products.............. 7,415

Primary metals.......................................... 7,082

Electrical equipment and appliances... 6,717

Nonmetallic mineral products............... 5,896

Miscellaneous........................................... 4,279

Total, durable goods............................... 126,046

Food and beverages................................ 55,489

Plastics and rubber products................. 11,525

Chemicals.................................................. 11,347

Printing and related.................................. 6,935

Paper........................................................... 3,687

Apparel....................................................... 1,532

Textile and textile product mills............ 854

Petroleum and coal.................................. 389

Total, non-durable goods....................... 91,758

D U R A B L E G O O D S E M P L O Y M E N T

N O N D U R A B L E G O O D S E M P L O Y M E N T

Page 5: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

Iowa’s manufacturing workers earned an average of $56,080 in wages

and salaries in 2016. Workers across all sectors of Iowa’s economy

earned an average of $44,910 in wages and salaries per job.

Average earnings per job in Iowa’s manufacturing sector were 86.5

percent of the U.S. average for manufacturing jobs. Iowa’s all-sector

average earnings per job were 83.8 percent of the U.S. average.

Manufacturing ranked third among Iowa’s major sectors in average

wage and salary earnings per job.

By detailed manufacturing industry, average earnings were highest in

computers and electronics manufacturing, at $89,541 per job.

Manufacturing wages vary across the state, with higher levels often

found in and near metropolitan areas and larger cities. In 2016, the

top three counties by average manufacturing wages and salaries were

Linn ($85,764), Fremont ($70,804), and Webster ($66,186).

Manufacturing jobs in 20 of Iowa’s 99 counties paid more than the

statewide sector average of $56,080 in wages and salaries per job in

2016. Manufacturing pay levels in 34 counties were below 80 percent

of the statewide sector average.

Page 5 M A N U F A C T U R I N G E A R N I N G S

Sources: U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics

A V E R A G E W A G E A N D

S A L A R Y E A R N I N G S

P E R J O B I N I O W A

( $ 0 0 0 S )

A V E R A G E M A N U F A C T U R I N G E A R N I N G S P E R J O B

A V E R A G E M A N U F A C T U R I N G W A G E S B Y C O U N T Y

Average for all sectors................................ 44.9

Financial activities...................................... 68.9

Construction................................................. 58.1

Manufacturing.............................................. 56.1

Information................................................... 53.9

Professional and business services........ 50.5

Government.................................................. 48.0

Education and health services................. 41.4

Agriculture and natural resources............ 40.3

Trade, transportation, and utilities........... 37.8

Other services.............................................. 32.6

Leisure and hospitality............................... 15.8

Computers and electronics....................... 89.5

Chemicals..................................................... 69.5

Petroleum and coal..................................... 67.5

Primary metals............................................. 66.0

Machinery..................................................... 61.7

Paper.............................................................. 58.9

Nonmetallic minerals................................. 54.0

Food............................................................... 52.0

Wood products............................................. 50.8

Furniture and related.................................. 50.3

Plastics and rubber products.................... 50.1

Transportation equipment......................... 50.0

Fabricated metals....................................... 50.0

Electrical equipment and appliances...... 49.7

Miscellaneous.............................................. 45.7

Printing and related..................................... 42.2

Textile mills................................................... 41.1

Beverage and tobacco............................... 38.3

Apparel.......................................................... 38.0

Leather and allied products...................... 34.1

Textile product mills.................................... 31.8

By Manufacturing Industry

By Major Sector

Percentage of statewidemanufacturing average

Below 80 percent

80 to 100 percent

Above 100 percent

No data

Page 6: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

B Y T Y P E O F G O O D

In 2016, the state of Iowa was the

transportation origin for $12.1 billion worth

of merchandise exports including

agricultural commodities, raw materials,

and manufactured goods. Manufactured

goods accounted for 86 percent of the

state’s total exports.

With $10.35 billion worth of manufactured

exports in 2016, Iowa ranked 28th among

all states on this measure (see Export Data

Notes for information about export

measurement).

Iowa’s single largest manufacturing export

industry was processed foods

manufacturing, which accounted for 27.7

percent of the state’s total manufacturing

exports.

B Y D E S T I N A T I O N

The greatest share (45.5 percent) of Iowa’s

manufactured exports are shipped to its

trading partners in North America. Asia

and Europe follow as the top importers of

manufactured goods from Iowa.

Canada was the top destination country for

Iowa’s manufactured exports in 2016,

followed by Mexico and Japan.

E X P O R T S F R O M I O W A

D E S T I N A T I O N S O F I O W A M A N U F A C T U R I N G E X P O R T S

I O W A ’ S T O P 1 0 M A N U F A C T U R I N G E X P O R T I N D U S T R I E S

Origin of Movement

It is important to note that Iowa’s export totals do not reflect the value of agricultural and other goods that were

originally produced in Iowa but ultimately exported from other states. The trade statistics on this page are based on

origin of movement (OM) data from the U.S. Department of Commerce. The OM method credits exports to the state

where the goods began their final journey to the point of exit from the United States, as specified on official U.S. export

declarations filed by shippers. The place from which merchandise began its export journey is not necessarily the place

where the merchandise was produced. In many cases, the OM is the location of a distributor, warehouse, or cargo

processing facility. Consequently, OM cannot be used to reliably describe the production origin of U.S. exports.

Source: ITA Trade Stats Express, Office of Trade and Industry Information, International Trade Administration, U.S.

Department of Commerce

Page 6 M A N U F A C T U R I N G E X P O R T S

T O P 1 0 D E S T I N A T I O N

C O U N T R I E S

F O R I O W A

M A N U F A C T U R I N G

E X P O R T S

E X P O R T D A T A N O T E S

252

279

282

345

386

602

741

1,631

2,412

2,871

Miscellaneous

Electrical equipment and appliances

Fabricated metals

Beverage and tobacco

Primary metals

Computers and electronics

Transportation equipment

Chemicals

Machinery

Processed Foods

Value of manufacturing exports in $ millions

North America (NAFTA), 4,713

Asia, 2,694

Europe, 1,839

Other Americas, 593Australia, 293 All Other, 220

Value of manufacturing

exports

in $ millions

Canada............................ 3,313

Mexico............................. 1,401

Japan............................... 900

China................................ 435

Germany.......................... 425

Australia.......................... 293

France.............................. 267

South Korea.................... 248

Brazil................................ 248

Hong Kong....................... 225

Exports ($ mill ions)

Page 7: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

Page 7 M A N U F A C T U R I N G S E C T O R T R E N D S

M A N U F A C T U R I N G G D P

Source: U.S. Bureau of

Economic Analysis

M A N U F A C T U R I N G J O B S

I O W A E M P L O Y M E N T

G A I N S A N D L O S S E S I N

T H O U S A N D S O F J O B S ,

2 0 0 6 - 2 0 1 6

B Y M A J O R S E C T O R

B Y D E T A I L E D

M A N U F A C T U R I N G

I N D U S T R Y

Financial activities 37.5

Education and health services 31.1

Professional and business services 22.8

Leisure and hospitality 10.6

Trade, transportation, and utilities 8.9

Agriculture and natural resources 8.0

Government 7.9

Other services 4.7

Construction 2.1

Information (9.5)

Manufacturing (16.2)

Durable Goods

Machinery 1.3

Computers and electronics (0.4)

Nonmetallic mineral products (0.7)

Fabricated metals (0.7)

Primary metals (1.1)

Electrical equipt. & appliances (3.2)

Furniture and related products (3.3)

Wood products (4.2)

Transportation equipment (6.6)

Nondurable Goods

Food and beverages 3.6

Chemicals 3.2

Textile and textile product mills 0.0

Petroleum and coal 0.0

Paper (0.7)

Apparel (0.8)

Plastics and rubber products (1.9)

Printing and related (2.0)

Miscellaneous Manufacturing (1.9)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Durable 146.9 145.9 142.8 121.8 120.4 126.2 130.6 133.1 134.9 133.4 129.2

Non-durable 90.3 90.1 90.5 88.0 86.4 86.2 86.7 88.3 88.8 89.9 91.8

Thousandsof jobs

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Durable 15.5 15.4 14.5 11.6 13.3 13.2 17.1 14.3 16.2 16.1 15.4

Non-durable 13.4 13.5 14.2 13.8 13.8 13.1 11.8 13.6 13.8 13.9 13.7

RealGDP

in 2009

$billions

I O W A M A N U F A C T U R I N G W A G E & S A L A R Y E A R N I N G S P E R J O B

C O M P A R E D T O U . S . A V E R A G E S

R E C E N T T R E N D S I N I O W A M A N U F A C T U R I N G

80%

82%

84%

86%

88%

90%

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

%of

U.S.

average

Durable Non-durable

Page 8: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

Manufacturing has accounted for a declining share of U.S. GDP in recent

decades, with the manufacturing sector’s contribution falling from 24.4

percent to 12.3 percent between 1970 and 2010. In 2016, the national

percentage was 11.8 percent.

In Iowa, the share of total GDP contributed by manufacturing dropped

from 22.1 percent in 1970 to 18.9 percent in 2010. The manufacturing

sector’s share fell to 18.4 percent in 2016.

Manufacturing activity also requires a smaller share of jobs compared to

decades past. Manufacturing jobs accounted for 21.6 percent of total

U.S. jobs in 1970, compared to 7.0 percent in 2010. The share was

slightly lower at 6.8 percent nationally in 2016. In Iowa, manufacturing

jobs now account for 10.6 percent of total employment, compared to 10.6

percent in 2010 and 17.1 percent in 1970.

Page 8 H I S T O R I C A L P E R S P E C T I V E S

M A N U F A C T U R I N G S E C T O R P E R C E N T A G E

S H A R E S O F G D P A N D E M P L O Y M E N T

I O W A ’ S H I S T O R I C A L M A N U F A C T U R I N G E M P L O Y M E N T

R E C E N T M O N T H L Y M A N U F A C T U R I N G J O B L E V E L S I N I O W A

Sources: U.S. Bureau of Economic Analysis and U.S. Bureau of Labor Statistics

*SIC and NAICS

The North American Industry

Classification System (NAICS) is

used by Federal statistical

agencies in classifying business

establishments for the purpose of

collecting, analyzing, and

publishing statistical data. NAICS

replaced the Standard Industrial

Classification (SIC) system in

1997. Historical data compiled

under the SIC system, indicated

with an asterisk (*) on this page,

are not directly comparable to

data compiled on a NAICS basis.

150,000

200,000

250,000

300,000

1970 1980 1990 2000 2010

Number of jobs on SIC basis* Number of jobs on NAICS basis

200,000

210,000

220,000

230,000

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Number of wage and salary manufacturing jobs

0%

30%

1970* 1980* 1990* 2000 2010 2016

Iowa 22.1% 24.8% 25.9% 21.5% 18.9% 18.4%

U.S. 24.4% 21.3% 18.1% 15.2% 12.3% 11.8%

GDP %

0%

30%

1970* 1980* 1990* 2000 2010 2016

Iowa 17.1% 16.2% 14.8% 13.4% 10.6% 10.6%

U.S. 21.6% 18.2% 14.2% 10.7% 7.0% 6.8%

Jobs %

Page 9: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

I N D I C A T O R S O F I N N O V A T I O N P O T E N T I A L : W H E R E I O W A R A N K S

A M O N G A L L S T A T E S

Page 9 S T A T E R A N K I N G S

Source: U.S. Bureau of

Economic Analysis

T O P 1 0 S T A T E S B Y

% O F G D P F R O M

M A N U F A C T U R I N G

Iowa’s economy

employs 8.5

engineers for

every thousand

workers.

The U.S. economy

demands 12.4

engineers per

thousand workers.

R E S E A R C H A N D T E C H N O L O G Y

P E R C E N T A G E O F S T A T E G D P F R O M M A N U F A C T U R I N G

W O R K F O R C E

9

36

39

42

Percentage of adults with high school diploma or higher....................................

Percentage of adults with bachelor's degree or higher.......................................

Engineers as a percentage of the workforce......................................................

Science & engineering degrees as % of higher education degrees conferred....

16

25

28

49

Academic R&D in science & engineering fields per $1 million in GDP................

Business R&D performance as a percentage of private sector GDP.................

Utility patents awarded per 1,000 jobs..............................................................

High-technology firms as a percentage of all business establishments..............

Sources: 2016 American Community Survey, U.S. Census Bureau; Science & Engineering Indicators 2016, National Science Foundation; and U.S. Patent and

Trademark Office

Indiana 28.7%

Oregon 21.7%

Louisiana 20.7%

North Carolina 19.8%

Kentucky 19.0%

Michigan 19.0%

Iowa 18.4%

Wisconsin 18.0%

Alabama 17.4%

Ohio 16.9%

R A N K

R A N K

Below 10 percent 10 to 15 percent Above 15 percent

Page 10: Manufacturing in Iowa - CIRAS · 50.6 percent of Iowa’s manufacturing GDP and 58.5 percent of its manufacturing jobs. Nationally, durable goods production accounts for 54.0 percent

On average, manufacturing jobs account for

10.6 percent of total employment in Iowa.

This fraction is lower in the state’s

metropolitan counties (8.1 percent) and

higher in non-metropolitan counties (14.7

percent), according to data for 2016.

Manufacturing accounts for 16.3 percent of

total worker earnings in Iowa. The sector’s

earnings percentage exceeds its

employment percentage because

manufacturing jobs tend to pay higher

wages than many other sectors.

Manufacturing accounts for 12.1 percent of

total earnings in Iowa’s metropolitan areas

and 24.0 percent of total earnings in non-

metropolitan regions.

Of Iowa’s 99 counties, 29 counties derive

more than one quarter of total worker

earnings from manufacturing jobs.

The top three counties by percentage of total

earnings from manufacturing in 2016 were

Hancock (51.2%), Iowa (48.9%), and Marion

(45.9%).

Iowa State University does not discriminate on the

basis of race, color, age, religion, national origin, sexual

orientation, gender identity, genetic information, sex, marital

status, disability, or status as a U.S. veteran. Inquiries

can be directed to the Director of Equal Opportunity and

Compliance, 3280 Beardshear Hall, 515-294-7612.

The ISU Center for Industrial Research and Service (CIRAS) provides applied

research, education, and technical assistance to Iowa industry through

partnerships with Iowa's universities, community colleges, and government

agencies. Assistance is supported in part by the DoC/NIST Hollings Manufacturing

Extension Partnership, the DoD/DLA Procurement Technical Assistance Program,

and the DoC/EDA University Center Program. For additional information, contact

Dr. Ronald Cox at [email protected] or 515-294-0099.

Page 10 C O U N T Y D E P E N D E N C E O N M A N U F A C T U R I N G

C O N T R I B U T I O N S T O L O C A L E C O N O M I E S

The manufacturing sector contributes to local economies in Iowa in a number of ways. Manufacturing firms pay wages to

local workers, they purchase raw materials and services from local producers and firms, their profits accrue to local owners

and investors, and they pay taxes to local and state governments.

M A N U F A C T U R I N G P E R C E N T A G E O F T O T A L E A R N I N G S

Source: U.S. Bureau of Economic Analysis

Percentage oftotal earnings

Below 10 percent

10 to 25 percent

Above 25 percent

Data suppressed