Iowa businesses are preparing for growth in 2025, according to the latest quarterly survey from the Iowa Association of Business and Industry (ABI). Over 70 percent of respondents plan capital expenditures in the first quarter, up from 53 percent in late 2024. This marks the highest investment optimism since 2022, signaling businesses’ confidence in seizing growth opportunities. Sales outlooks also remain strong, with 55 percent expecting stable sales and 40 percent forecasting growth. Workforce trends are steady, as 57 percent of respondents anticipate maintaining current employee levels while tackling labor shortages and skill gaps. The Q4 survey was not all positive, however, as policy concerns linger. The most frequently cited issue from businesses is the Trump administration’s proposed tariffs on goods from Canada, Mexico, and China. Nearly 80 percent of businesses expressed worries about cost and supply chain impacts. ABI President Nicole Crain highlighted the importance of regulatory reforms, noting, “After a neutral outlook at the end of 2024, ABI members’ views on the first quarter of 2025 are positive. In order to ensure economic success for members, ABI, will advocate for continued reform of Iowa’s property tax system and unemployment insurance reductions. The changes will help keep Iowa a competitive state in which to do business. The regulatory and tax certainty in Iowa has kept Iowa businesses growing, and we look forward to working with Gov. Reynolds and the Legislature in the year head to keep Iowa moving in the right direction.” Results from previous surveys are available online at www.iowaabi.org.
