As Iowa businesses prepare to navigate ongoing economic changes in the second quarter of 2025, the Iowa Association of Business and Industry (ABI) has shared key insights from its latest Quarterly Business Survey, conducted in early March 2025.
Highlights from the survey include:
- Capital expenditures – 64% of respondents intend to make capital expenditures this quarter, demonstrating a commitment to business growth and operational improvements.
- Workforce trends – 86% of businesses expect the number of employees to remain unchanged, signaling stability in workforce demands.
- Trade policy – 80% of respondents are concerned with tariffs. Nearly half of businesses are very concerned over tariffs on Canadian or Mexican goods, and 60% of respondents are somewhat concerned about tariffs on Chinese imports.
According to ABI, Iowa business leaders are closely monitoring trade policy developments to understand the potential impact on supply chains and costs. At the same time, companies are increasingly turning to artificial intelligence to drive efficiency while investing in workforce training to strengthen employee skills and improve margins. Overall, business sentiment on the economy remains cautious, with most respondents expressing a neutral outlook.
“Despite economic uncertainties, Iowa businesses remain focused on finding opportunities for growth and innovation,” ABI president Nicole Crain said. “Their ability to adapt and invest in the future is what keeps our state’s economy strong.”
For more than 120 years, ABI has helped businesses navigate regulatory challenges and provide resources and programming for employers to recruit and retain top talent. ABI remains committed to advocate for policies that support economic stability and provide a competitive advantage for Iowa businesses.
“Thanks to Governor Reynolds and our legislative leaders, Iowa is fortunate to have a business-friendly environment that positions our state and employers for success,” Ms. Crain said.
For previous survey results, business resources, and upcoming events, visit www.iowaabi.org.
