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Metal Cutting Sparks

Value of Manufacturing to Iowa

$13.6 Billion Manufactured Exports

$74,637 Average Wage

$44 Billion GDP

Over 220,000 direct jobs!

Iowa manufacturers turn agricultural products, raw materials, technology, and ingenuity into goods used across the country and around the world. Their facilities create high-value jobs, support household income, anchor local economies, expand the tax base, and drive investment and innovation.

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For many manufacturers, energy is a production input, not simply an overhead expense. Iowa's ability to provide affordable, reliable, stable, predictable, and sustainable energy directly affects whether manufacturers can compete, invest, expand, and create jobs in the state.

Manufacturing powers Iowa's economy - and depends on sound energy policy.

Direct Contribution to Iowa GDP in 2025

Manufacturing generated $43.98 billion in current-dollar state gross domestic product, representing approximately 15.9% of Iowa's total GDP - nearly $1 of every $6 in statewide economic output as measured by GDP. [1]

Direct manufacturing jobs in 2024

Manufacturing accounted for 14.2% of Iowa's covered public and private employment. [2]

Average annual manufacturing wage in 2024

The average manufacturing wage was 21.7% higher than Iowa's all-industry average of $61,352. [2]

Iowa-Manufactured Product Exports in 2025

Manufactured-product exports supported an estimated 61,000 Iowa jobs in 2023, the latest year available for that employment estimate. [3]

Manufacturing Locations Across Iowa in 2024

The sector includes food processing, machinery, fabricated metals, chemicals, transportation equipment, electronics, medical devices, and other advanced manufacturing operations. [2] [7]

Value of Manufacturing Shipments per Resident

Iowa recorded $46,745 in manufacturing shipments per resident, ranking third among the states based on the 2022 Economic Census. [4]

Manufacturing facilities frequently operate capital-intensive processes in which electricity and natural gas are essential production inputs. Outages, fuel constraints, voltage disturbances, unexpected rate increases, and poorly allocated infrastructure costs can disrupt production and weaken Iowa's competitiveness.
 

Sound energy policy should provide:

Rates should be grounded in sound ratemaking, cost-causation, and cost-allocation principles. Iowa manufacturers must be able to compete with facilities in other states and countries.

Iowa needs adequate generation, transmission, distribution, and fuel infrastructure capable of serving existing manufacturers and future economic growth.

Transparent planning, rate structures, and regulatory processes allow manufacturers to evaluate long-term investments and make informed decisions about expansion, modernization, and employment.

Manufacturers increasingly face customer, market, investor, and corporate expectations related to energy and environmental performance. Iowa should offer practical energy options that help customers meet those expectations without compromising reliability or cost discipline.

Infrastructure and system costs should be allocated in a manner that reflects cost causation and avoids unreasonable cost shifts among customer classes.
 

When Iowa gets energy policy right, manufacturers are better positioned to invest, modernize, hire, expand, and compete.
 

Protecting the competitiveness of Iowa manufacturing protects jobs, communities, exports, the tax base, and Iowa's capacity for future growth.

Steel Rolls Stacked

An Economic Foundation for Iowa

Manufacturing contributed $43.98 billion directly to Iowa's economy in 2025. Based on current-dollar annual data from the U.S. Bureau of Economic Analysis, manufacturing represented approximately 15.9% of Iowa's total GDP. [1]

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GDP measures the value manufacturers add through production. It does not include the full value of all gross sales or every downstream effect created when manufacturers purchase materials, transportation, construction, professional services, technology, and other inputs. The direct GDP figure therefore provides a conservative and independently verifiable measure of the sector's economic importance.

Nearly $1 of Every $6 in Iowa GDP is Generated Directly by Manufacturing.

High-Value Jobs and Household Income

  • Iowa manufacturing directly employed 222,328 people in 2024 - 14.2% of all covered public and private employment in the state. [2]
     

  • The sector's average annual wage was $74,637, which was 21.7% higher than Iowa's all-industry average of $61,352 with a statewide wage base of approximately $16.6 billion. [2]
     

  • Those wages support Iowa households and generate additional economic activity in housing, retail, transportation, education, health care, and other local businesses and services.

The Average Iowa Manufacturing Job Pays Approximately 22% More Than the Statewide All-Industry Average.

Statewide Reach and Community Value

Manufacturing is not confined to one metropolitan area or one type of product. Iowa had 4,246 manufacturing locations in 2024. [2]
 

The largest categories of manufacturing locations included:
 

  • Fabricated metal product manufacturing: 641 locations

  • Food manufacturing: 640 locations

  • Machinery manufacturing: 468 locations

  • Nonmetallic mineral product manufacturing: 365 locations

  • Printing and related support activities: 350 locations
     

Food manufacturing alone employed 58,679 workers in the fourth quarter of 2024, accounting for 26.9% of Iowa manufacturing employment. This value-added activity connects Iowa agriculture with processing, packaging, logistics, domestic markets, and global customers. [2]

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Manufacturing and other industrial facilities also contribute significantly to Iowa's public revenue base. Property classified as industrial generated approximately $474.5 million in statewide property taxes in fiscal year 2026, including tax increment financing property taxes. [5]

Important Tax-Data Qualification

Scope of the Figure

Iowa's industrial property classification is not identical to the manufacturing sector as defined under the North American Industry Classification System. The $474.5 million figure is therefore an indicator of the industrial property-tax base - not a comprehensive measure of all taxes paid by Iowa manufacturers.

The figure does not include corporate income taxes, employee income and sales taxes, fuel taxes, or taxes generated through manufacturing suppliers and employee household spending.

Iowa Makes Products for the World

Iowa exported $13.6 billion in manufactured products in 2025. The Office of the U.S. Trade Representative estimates that manufactured-product exports supported approximately 61,000 Iowa jobs in 2023, the latest year for which that employment estimate is available. [3]
 

Iowa's leading manufacturing export categories in 2025 were:
 

  • Food and kindred products: $3.4 billion

  • Machinery, except electrical: $3.3 billion

  • Chemicals: $2.9 billion

  • Transportation equipment: $950 million

  • Computer and electronic products: $661 million
     

Iowa's manufacturing strength is particularly significant relative to the state's population. Although Iowa ranked 31st in population, it ranked third in manufacturing shipments per resident - $46,745 - based on the 2022 Economic Census. [4]

Iowa manufacturing Competes Not Only Across the United States, but Throughout the Global Economy.

Agricultural Equipment Machinery

Adding Value to Iowa Agriculture

Manufacturing multiplies the value of Iowa's agricultural production.

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Food and ingredient manufacturers transform corn, soybeans, livestock, eggs, dairy products, and other agricultural commodities into higher-value products for consumers and industrial customers. These operations support farmers, transportation providers, packaging companies, equipment manufacturers, laboratories, professional services, and other Iowa businesses.

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With 58,679 workers, food manufacturing was Iowa's largest manufacturing subsector in the fourth quarter of 2024. [2]

The connection between agriculture and manufacturing allows more of the economic value created by Iowa resources to remain in Iowa.

Innovation, Productivity, and Capital Investment

Iowa manufacturers produce food and ingredients, agricultural and construction equipment, aerospace and electronic products, chemicals, metals, medical devices, transportation equipment, and other advanced products. [7]

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The sector continues to invest in:

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  • Automation and robotics

  • Data-driven production systems

  • Advanced machinery

  • Process improvement

  • Cybersecurity

  • Energy efficiency

  • Workforce training and development

  • Supply-chain resilience

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Iowa's Manufacturing 4.0 initiative and the Center for Industrial Research and Service provide resources to help manufacturers modernize, improve productivity, address workforce challenges, and remain competitive. [6] [7]

Competitive Manufacturing Requires Competitive Energy Policy

IBEC is the voice of Iowa's industrial energy users. We advocate for policies that advance affordable, reliable, stable, predictable, and sustainable energy while strengthening Iowa's economic competitiveness.

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Sources & Links

[01]

Manufacturing GDP and Total Iowa GDP

U.S. Bureau of Economic Analysis data provided through the Federal Reserve Bank of St. Louis FRED system

Manufacturing GDP in Iowa: https://fred.stlouisfed.org/series/IAMANNGSP

Total Iowa GDP: https://fred.stlouisfed.org/series/IANGSP

The 15.9% manufacturing share is an IBEC calculation using 2025 current-dollar annual figures: $43.980 billion divided by $277.1101 billion.

[02]

Employment, Wages, Establishments, and Manufacturing Subsectors

Iowa Workforce Development - 2024 Iowa Manufacturing Industry Profile

Report: https://workforce.iowa.gov/media/805/download

The estimated $16.6 billion annual wage base is an IBEC calculation using 222,328 jobs multiplied by the published average annual wage of $74,637.

[03]

Manufactured Exports and Export-Supported Employment

Office of the United States Trade Representative - Iowa Exports and Foreign Investment

Webpage: https://ustr.gov/map/state-benefits/ia

The manufactured-export value is for 2025. The export-supported employment estimate is for 2023, the latest year available.

[04]

Manufacturing Shipments per Resident

U.S. Census Bureau - Some Less Populous States Have High Manufacturing Revenue Per Capita

Article: https://www.census.gov/library/stories/2025/09/manufacturing-week.html

The comparison is based on the 2022 Economic Census and 2022 population estimates.

[05]

Industrial Property Taxes

Iowa Legislative Services Agency - Iowa Statewide Property Taxes by Class of Property

Report: https://www.legis.iowa.gov/docs/publications/FCTA/1529579.pdf

Figures are reported in thousands and include tax increment financing property taxes.

[06]

Current Iowa Manufacturing Conditions and Resources

Center for Industrial Research and Service, Iowa State University - 2026 State of Manufacturing in Iowa

Webpage: https://www.ciras.iastate.edu/2026/04/24/2026-state-of-manufacturing-in-iowa/

[07]

Iowa Advanced Manufacturing

State of Iowa Economic Development & Finance Authority - Advanced Manufacturing

Webpage: https://opportunityiowa.gov/business/iowa-advantage/key-industries/advanced-manufacturing

The state webpage provides useful descriptions of Iowa's manufacturing sectors and Manufacturing 4.0 initiative. The older GDP figures displayed on that page should not replace the more current 2025 BEA figures used above.

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