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Investment Climate
Economic Infrastructure
Industry Summary
Key industries: Major industries in Iowa from a standpoint of output is agriculture of corn (No. 1 in the U.S.) and soybeans (No. 1), livestock industry for raising hogs (No. 1 in the U.S.) and beef cattle (No. 5) that are fed on corn and soybeans. And also, industrial machinery and electrical equipment manufacturing, the insurance industry comprising life insurance/health care insurance (No. 2 in the U.S.) and non-life insurance (No. 4) attract attention as vital industries in Iowa. It is also an attractive state for the banking and printing businesses.
Furthermore, noticeable progress has been made in the development of infrastructure for the IT industry as well as in the field of life science that has been promoted in cooperation with Iowa State University and the University of Iowa, capturing the attention of related industries.
Agriculture/Livestock Industry/Food Processing Industry
Production Item Ranking in the U.S Output
Corn 1 2.36 billion bushels
Soybeans 1  0.438 billion bushels
Hogs 1 18.1 million hogs
Poultry eggs 1 13.8 billion eggs
Red meat 2 6.53 billion lbs (beef, veal, pork and lamb)
Beef 5  1.8billion lbs
 
Manufacturing Industry
In the manufacturing industry, over 500 kinds of products are exported to other countries worldwide. Main export products include chemical agents, pharmaceutical products, clothings, machinery and appliances, automobile components, tires, processed foods, and agricultural equipment.
Of Fortune 1,000 companies, the head offices of the following companies are located in Iowa: HON Industries, Meredith, Pioneer Hi-Bred International, Principal Mutual Life Insurance, etc. In addition, more than 100 companies own related facilities in the State of Iowa.
Insurance Industry
Ninety-tree insurance companies currently domicile in Iowa.
Insurance businesses are considered to concentrate in Iowa for the following reasons.
● Low insurance premium taxes of 1%
● High worker productivity
● Low wage level
● High education level
● Tax exemption for computers
Biotechnology
Please request the brochure of the "Biotechnology in Iowa" for a detailed description.
Location of the State of Iowa
Iowa is positioned roughly at the center of the U.S.
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Location of Iowa
Motor Carrier, Licensing and Transportation
www.state.ia.us/government/dot/
1.
Location
Since Interstates 80 and 35, which run almost straight east to west and north to south respectively, intersect at Des Moines, the city capital located in the central part of the state. From Des Moines, it is possible to reach Chicago (Illinois), Minneapolis/Saint Paul (Minnesota), Kansas City (Kansas), St. Louis (Missouri), Oklahoma City (Oklahoma) and Milwaukee (Wisconsin) in several hours.
2.
Waterway
Iowa faces the Mississippi River, along with the Missouri River, the only rivers in the U.S., where the large vessels can travel, both of which are directly linked with overseas ports via the Gulf of Mexico.
3.
Air route
Given that the state boasts a commercial airport servicing arrival and departure of eleven regular flights and over a hundred airports of varying size scattered throughout the state that allow use by private planes, it is possible to reach one of these airports by car within thirty minutes from any place in Iowa.
4.
Railroads
The freight transportation network of the Norfolk Southern Railway running through the state enables commodities and products to be transported by rail across the U.S. It is easy to lay an exclusive railway, for which government funds are available. There are six stations in the state where AMTRAK passenger-carrying cars stop.
Industrial Electric Power Costs
2003 Industrial Electric Power Costs
Source: Energy Power Monthly - Energy Information Administration - Augst 2007
Industrial Natural Gas Costs
2003 Industrial Natural Gas Costs
Source: Natural Gas Monthly - Energy Information Administration - September 2006
Source of Energy
Coal  75.6%
Nuclear  11.2%
Natural gas 5.3%
Wind  5.1%
Hydraulic power, etc. 2.3%
Oil  5%
Total 100%
 
Source : Electric Power Annual
Energy Information Administration
www.state.ia.us/government/com/util/util/energy/electric_profile.html
Export
China occupies an important position as an export counterpart of Iowa, as seen in its performance in 2006 when it ranked 6rd, behind Germany and UK.
Total US exports via Iowa
Top 10 countries based on 2006 Dollar Value
Rank Country $USD % Share
1 Canada 3,065,278,684  36.45%
2 Mexico 1,285,892,597 15.27%
3 Japan  656,125,810 7.8%
4 Germany  395,942,470 4.71%
5 United Kingdom   245,070,465 2.91%
6 China  243,635,795 2.90%
7 France 243,403,714 2.89%
8 Australia  199,476,477  2.37%
9 Korean Republic   186,972,036 2.22%
10 Russia  122,740,550 1.46%
Source: Global Trade Information Services, Inc. 2006