Q&A: Manufacturing Boosts Iowa Economy

With U.S. Sen. Chuck Grassley

Q: How important is manufacturing to Iowa's economy?

A: Iowa ranks among the top five states in the country for our manufacturing sector's impact on the state economy. It generates nearly $35 billion annually, accounting for 17% of our state's gross domestic product and employs roughly 14% of workers in rural and metropolitan areas across 99 counties. In 2025, wages from manufacturing jobs in Iowa exceeded $16 billion. These wages from more than 200,000 jobs support Iowa families whose paychecks circulate in communities across the state to boost local businesses and expand the tax base for schools, infrastructure and services. Last year the Republican-led Congress passed the Working Families Tax Cuts Act that stopped the largest tax increase in U.S. history and primed the pump for economic growth. The tax law increased take-home pay for workers and refueled domestic manufacturing by boosting investment, job creation and economic growth.

Signed into law by President Trump, the tax law delivered much-needed certainty for businesses and manufacturers, including full expensing for newly constructed or improved factory structures. Other key provisions include:

• Permanent full expensing for machinery and equipment
• Permanent immediate deductibility for domestic research and development expenses
• Permanent 20 percent small business deduction
• Permanent increased cap on the business interest deduction
• Permanent America-first international tax reforms

From the policymaking tables in the U.S. Senate, I'll continue championing pro-growth tax laws, workforce development, commonsense regulations and infrastructure to help keep Iowa punching above its weight and welcoming business and industry to create good-paying jobs in our state.

Q: How are you working to ready the workforce for manufacturing jobs?

A: During my annual county meetings, I hear directly from workers on the factory floor to learn about the challenges and success stories of local businesses and industry across the state. I often say Iowa manufacturers don't brag enough about the high-quality products and services delivered with world class worker productivity. Iowa's advanced manufacturing supports construction, agriculture, aerospace electronics, medical devices, transportation, renewable energy, biofuels, the food supply chain and much more. These businesses put increased demand for a skilled workforce to fill good paying jobs.

The Working Families Tax Cuts Act included my legislation known as the Workforce Pell Grant that expanded eligibility for students enrolled in short-term, job-specific technical training programs available in community colleges across the country, including here in Iowa. My legislation essentially kills two birds with one stone. Eligible students obtain skilled training for high-wage jobs with little-to-no student debt. And local employers benefit from a partnership with local community colleges to access a direct pipeline of homegrown talent.

As a member of the Senate Career and Technical Education Caucus, I welcome the recently awarded $10.8 million Department of Labor grant to Iowa's community college network to invest in workforce training programs that connect student graduates with local employers. Hawkeye Community College will manage implementation of more than 50 Workforce Pell-eligible training programs in advanced manufacturing, construction, skilled trades and healthcare jobs. The federal funding will help Iowa community colleges fill workforce gaps for high-demand skills and allow workers to climb the ladder of prosperity. I also welcome the largest steel plant investment in U.S. history. This is a major win for Iowa workers and our state economy. The decision to build in Iowa is testament to our workforce, natural resources and competitive environment for economic development. This is a transformational opportunity for economic prosperity in America's heartland that also would strengthen national security and address offshore supply chain disruptions with American-made steel.

October is National Manufacturing Month

• Print
• Email
• Like
• Tweet