The Iowa Association of Business and Industry released its fourth-quarter survey today.

Results from the survey of ABI members include:

• Sales: 39% expect sales to expand — up from 33% in Q3 — while fewer respondents (30%) anticipate flat sales compared to 45% last quarter.
• Capital expenditures: 60% plan to make capital investments in Q4, reflecting confidence in long-term growth.
• Tariffs and trade: 34% say Chinese tariffs have negatively impacted business, and 78% report U.S. trade policy with Canada and Mexico has had negative effects.
• Workforce and costs: 86% are concerned about finding and retaining skilled workers, and most report moderate or significant increases in health care renewal costs. 26% expected to hire more employees in Q4, compared to 33% in Q3.

Workforce shortages, cost pressures and trade policy remain top concerns, according to the survey. Business leaders also pointed to supply chain resourcing, acquisition strategies, commodity pricing and automation as ongoing priorities.

ABI’s survey findings mirror national trends. According to the National Association of Manufacturers’ Q3 2025 Outlook Survey, manufacturers across the country identified similar concerns as Iowa businesses: trade uncertainty (78%), rising raw material costs (68%) and increasing health care costs (65%).

“This alignment underscores the fact that Iowa manufacturers are navigating the same set of challenges as their peers nationwide,” ABI President Nicole Crain said in a news release. “ABI members are clear: they’re ready to grow, but external pressures like trade policy, health care costs, and the workforce shortage could hold them back.”

ABI surveys its board each quarter to track business sentiment, identify common concerns and inform advocacy and programming priorities.