Iowa has gained little competitive advantage relative to other states over the past 10 years, according to an analysis released today by the Iowa Business Council (IBC).  
 
Looking at it another way, Iowa “held its own,” said Tom Aller, the IBC’s chairman and president of Alliant Energy Co., who highlighted the report’s findings during a press conference this morning at Mercy Medical Center. The IBC’s members include the chief executives of the state’s 20 largest employers, along with the presidents of the three regent universities and the president of the Iowa Bankers Association.
 
The idea of producing an annual report card of Iowa’s competitiveness grew out of a report released by the IBC in January, “A Competitiveness Blueprint: Iowa 2025,” which identified five key issue areas to improve the state’s economy:
–         economic growth
–         education and workforce readiness
–         governance and fiscal matters
–         health and well-being
–         workforce demographics and diversity
 
The Competitiveness Index analysis rated each of the five areas as either: improving (green), no significant progress (yellow) or worsening (red), as compared to the state’s business climate as it was assessed in a 2001 report. Each of the five indicators received a “no significant progress” score, with the exception of health and well-being, which was marked as “improving” overall.
 
“I wouldn’t view that as a negative,” Aller said. “I would view that as a positive. We’ve got some real strengths, and if we build on these we can make some real progress moving forward.”
 
The goal of the initiative is “to leverage the state’s competitive advantages and mitigate its identified weaknesses to build a strong, vibrant and welcoming business climate that attracts a skilled and diverse workforce,” according to the report. 

“One of the most important things is that the business council is saying, ‘We really ought to have a report card,’ and that we’re willing to engage in that discussion as we try to make Iowa an even better state,” Aller said.
 
Among indicators that have worsened in the state in the past decade is per-capita income, which slipped to 31st highest among the states in 2010 compared to 23rd in 2001. Proficiency in 8th grade reading and math scores also worsened, as did the rate of net overall migration from the state.
 
On the plus side, manufacturing value as a percent of the gross state product increased to second in the nation, up from eighth in 2001. The rate of smoking and infant mortality both declined and the average amount of education attained beyond high school increased.
 
The business council plans to release an updated Competitiveness Index report at its annual meeting in January.
 
To view the 2011 Iowa Competitiveness Index report, click here.