The ABI Survey results are out and energy is now a growing concern alongside healthcare and talent acquisition for Iowa leaders. Nicole Crain, President of the Iowa Association of Business and Industry (ABI), breaks down fresh Q2 survey data out today.
To be clear, energy is cheap and accessible in Iowa, but Iowa business leaders wonder how long that will last as new data centers pop up, all with future Ai energy demands. The quarterly survey from ABI board members shows cautious optimism, but may show two very different Iowa economies developing. Traditional manufacturing vs advanced manufacturing.
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Iowa leaders cautiously optimisic
Iowa business leaders remain cautiously optimistic despite a landscape of increasing economic volatility. Early data from ABI’s quarterly survey indicates that 48% of leaders feel optimistic about the next quarter, while nearly 75% of businesses are planning capital expenditures. Crain notes that while these numbers are on par with previous results, the willingness to reinvest suggests a deep-seated confidence in individual business health.
“Anytime we see businesses reinvesting into the business, there is some type of positive feeling of what’s happening with their own business,” Crain observed. She emphasized that Iowa’s regulatory environment and stable state policies provide a necessary anchor for leaders as they navigate national uncertainty.
Addressing the Talent Pipeline and Rising Costs
Workforce remains the most pressing challenge, with 85% of ABI members identifying talent acquisition as their primary hurdle. Crain argues that the solution requires engaging students as early as elementary school to showcase manufacturing careers. Beyond talent, energy and healthcare have emerged as dominant cost drivers. Concerns regarding energy capacity have spiked due to local ordinances and the rising demands of AI data centers.
“Workforce is still the number one issue,” Crain stated, later adding that regarding healthcare, “there’s only so much as those costs continue to climb that employers can continue to take on”. As businesses pivot to address these pressures, many are turning to internal promotion and employee stock ownership plans (ESOPs) as vital retention tools. Crain concluded by highlighting the “Coolest Thing Made in Iowa” campaign, noting, “There are thousands of products made in Iowa that we just haven’t told our story to let people know they’re made here”.
ABI Survey Results Overview
Over the next quarter, do you expect sales to:
- 62% Expand
- 0% Retract
- 38% Stay about the same
Over the next quarter, do you expect the number of employees in your business to:
- 57% Grow
- 0% Decrease
- 43% Stay About the Same
Do you plan to make capital expenditures in the next quarter?
- 19% Yes, significant investment
- 52% Yes, modest investment
- 19% No
- 10% Undecided
What is your overall outlook on the economy going into the second quarter of 2026?
- 48% Optimistic
- 14% Pessimistic
- 38% Neutral
- 0% Other
How would you describe your company’s financial health entering Q2 2026?
- 38% Strong and growing
- 48% Stable
- 14% Beginning to experience a downturn
- 0% Under significant pressure
Please select the issues that are creating challenges for your business.
- Healthcare costs
- Energy
- Workforce and talent
- Property taxes
- Supply chain
- Other