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CLOSE UP. WE’RE LOOKING AT THE STATE OF IOWA BUSINESSES. 2024 BROUGHT THE CLOSURE OF SOME OF THE BIGGEST FACTORIES AND PLANTS IN THE STATE, AND MASSIVE LAYOFFS AT SOME OF THE OTHERS. HOW THE STATE IS DEALING WITH THE SKILLED LABOR SHORTAGE AND HOW BUSINESSES ARE HANDLING THE ISSUE OF INFLATION. WE’RE BREAKING IT ALL DOWN. IN A CONVERSATION WITH THE LEADER OF THE LARGEST STATEWIDE BUSINESS ORGANIZATION, AS HE PREPARES FOR HIS NEXT CHAPTER. THIS IS IOWA’S NEWS LEADER. THIS IS ����vlog EIGHT NEWS CLOSE UP. GOOD MORNING AND WELCOME TO ����vlog EIGHT NEWS CLOSE UP. I’M CHIEF POLITICAL REPORTER AMANDA ROOKER. THE IOWA ASSOCIATION OF BUSINESS AND INDUSTRY, OR ABI, HAS SERVED AS THE STATE’S UNIFIED VOICE FOR BUSINESS SINCE 1903. IT’S THE LARGEST STATEWIDE BUSINESS ORGANIZATION REPRESENTING AROUND 330,000 WORKING IOWANS. I’M JOINED THIS MORNING BY THE PRESIDENT OF ABI AND MIKE RALSTON. THANK YOU SO MUCH FOR FOR JOINING US. HE HAS LED THE ORGANIZATION SINCE 2005, AND AT THE END OF THE YEAR, HE IS HANGING UP HIS HAT AND RETIRING. MIKE, THANKS FOR BEING WITH US. THANKS FOR HAVING ME, AMANDA. WELL, WE WANT TO START TALKING A LITTLE BIT ABOUT YOUR TIME. YOU KNOW, A LONG TIME LEADING, ABI. YOU KNOW, TELL ME A LITTLE BIT ABOUT JUST THE SIGNIFICANCE OF THIS ORGANIZATION, BUT ALSO ABOUT YOUR TIME LEADING IT. YOU BET. WELL, FIRST, LET ME TELL YOU ABOUT ABI. THERE’S NOTHING I LIKE TO TALK ABOUT MORE. BECAUSE I’M A TRUE BELIEVER IN WHAT ABI IS AND DOES. AND ABI IS REALLY. IOWA’S MANUFACTURING AND GENERAL BUSINESS TRADE ASSOCIATION. AS YOU MENTIONED, IT’S THE STATE’S LARGEST STATEWIDE BUSINESS ORGANIZATION. WE HAVE A LITTLE OVER 1500 MEMBER COMPANIES AS MEMBERS. IT STARTED A 121 YEARS AGO AS THE IOWA MANUFACTURERS ASSOCIATION. SO THE LARGEST INDUSTRY SEGMENT AMONG THOSE COMPANIES IS STILL MANUFACTURERS. BUT NOW WE HAVE WAREHOUSING, UTILITIES, INSURANCE COMPANIES, ALL SORTS OF THINGS. AND THE GOAL, OBVIOUSLY, OF ANY TRADE ASSOCIATION IS TO ADD VALUE TO THOSE MEMBERS. AND THAT’S WHAT WE SEEK TO DO EVERY DAY. WHAT WHAT DREW YOU TO THAT INITIALLY? YEAH. WELL, I’LL TELL YOU, I WAS A IMMEDIATELY PRIOR TO ABI. I WAS THE STATE’S TAX COMMISSIONER. I WAS THE DIRECTOR OF THE DEPARTMENT OF REVENUE AND HAD WORKED CLOSELY WITH ABI AND DIFFERENT JOBS THROUGH THE YEARS, AND THEY WERE AT A TIME WHERE THEY WERE LOOKING FOR NEW LEADERSHIP. I TALKED TO SOME PEOPLE AND APPLIED FOR THE JOB AND WAS HAPPY TO GET IT, AND REALLY FEEL FORTUNATE TO HAVE BEEN THERE ALL THESE YEARS LATER, AND A WHILE AGO, YOU WERE ACTUALLY THE MAYOR OF GRUNDY CENTER AS WELL. BUT A LOT OF TIMES WHEN WE TALK ABOUT BUSINESS, THERE IS A LOT OF INTERACTION WITH LOCAL ENTITIES. SO IS THERE ANYTHING THAT YOU LEARNED FROM YOUR TIME IN LOCAL POLITICS AS MAYOR THAT YOU KNOW, INFLUENCED YOUR LEADERSHIP AT ABI? WELL, I THINK SO. AND ONE OF THE THINGS I LEARNED IS THAT THE IOWA COMMUNITIES THAT SEEM TO SUCCEED AND DO THE BEST ARE THOSE THAT REALLY SEE GOVERNMENT AS A PARTNER TO THEIR CITIZENS AND THEIR LOCAL BUSINESSES. AND CLEARLY, IN GRUNDY CENTER, IT’S A COUNTY SEAT TOWN, AND I WAS 18 AT THE TIME. WE TALKED ABOUT IT. SO IT WAS ABOUT 100 YEARS AGO. I LEARNED EARLY ON THAT IF WE DON’T HAVE ECONOMIC OPPORTUNITY IN OUR COMMUNITY, NOT A LOT IS GOING TO HAPPEN. AND SO CERTAINLY THAT HAS INFLUENCED THE WAY I APPROACH ABI. I MENTIONED I’M A TRUE BELIEVER. I THINK THAT THERE’S NO GREATER CALLING THAN PROVIDING ECONOMIC OPPORTUNITY FOR IOWA FAMILIES AND IOWA COMMUNITIES. AND THAT’S WHAT OUR MEMBER COMPANIES DO. AND I’M REALLY EXCITED TO BE A PART OF THAT. THAT’S SOMETHING I LEARNED IN GRUNDY CENTER, FOR SURE. AND WHEN YOU STARTED YOUR LEADERSHIP AT ABI, IT WAS 2005. CORRECT ME IF I’M WRONG. I IMAGINE A LOT HAS CHANGED, YOU KNOW, OVER THE PAST 20 YEARS. WALK ME THROUGH A LITTLE BIT ABOUT SOME OF THE THE LARGEST CHANGES THAT YOU’VE SEEN. WELL, I THINK THE BIGGEST CHANGE IS THAT WE’RE ECONOMICALLY SOUND, AND I’M NOT SURE WE COULD SAY THAT BACK IN 2005, THE ORGANIZATION, I SUPPOSE ANY ORGANIZATION THAT’S AS OLD AS ABI IS, YOU KNOW, THERE’S A LOT OF THERE ARE EBBS AND FLOWS AND THERE HAD BEEN A LOT OF EBBING. AND SO CERTAINLY THE BOARD REALIZED THAT AND DETERMINED THAT WE NEEDED TO MAKE SOME CHANGES. AND WE CERTAINLY DID. WHEN I CAME ON, WE DID A BUNCH OF DIFFERENT THINGS. AND SO TO ANSWER YOUR QUESTION, IN 2005, ABI WAS SORT OF A SLEEPY, MAYBE GOVERNMENT RELATIONS FIRM, AND NOW WE DO A TON OF DIFFERENT THINGS. CERTAINLY PUBLIC POLICY ADVOCACY IS STILL ONE OF THE MAIN THINGS WE DO. WE HAVE TWO FULL TIME LOBBYISTS. I’M BIASED. I THINK THEY ARE TWO OF THE BEST AT THE CAPITOL, AND THEY WORK HARD TO REPRESENT BUSINESSES IN THIS STATE. BUT IN ADDITION TO THAT, WE HAVE A AN EVENTS TEAM THAT PUTS ON A LOT OF EVENTS AND MEETINGS AROUND THE STATE. I THINK WE DO OVER 100 MEETINGS AROUND THE STATE EVERY YEAR, AND THEN WE HAVE A FOUNDATION TEAM THAT SEEKS TO BUILD COMMUNITIES THROUGH PROGRAMS LIKE LEADERSHIP IOWA, BUSINESS HORIZONS, WHICH IS A WEEK LONG ENTREPRENEURIAL CAMP FOR HIGH SCHOOL STUDENTS, AND SOME OTHER PROGRAMS. AND THEN WE DO A WHOLE BUNCH OF THINGS. WE CONNECT OUR MEMBERS TO CAPITAL IF THEY NEED IT, IF THEY HAVE A DESIGN PROBLEM OR, YOU KNOW, A PRODUCT PROBLEM, THEY MIGHT COME TO US AND WE’LL CONNECT THEM TO SOME PEOPLE WHO CAN HELP. SO IF THERE’S A BUSINESS ISSUE THEY’RE FACING, WE CAN HELP WITH ALL THAT. AND THAT’S CERTAINLY NOT THE WAY IT WAS BACK IN 2005. YEAH, THERE’S A LOT THERE FOR SURE. YEAH. TELL ME ABOUT JUST THE MEMBERS OF THE ORGANIZATION. DO THEY RANGE IN SIZE? THEY DO. I’LL TELL YOU WHEN. A LOT OF TIMES WHEN PEOPLE THINK OF ABI, THEY THINK OF GLOBAL COMPANIES LIKE JOHN DEERE OR COLLINS AEROSPACE OR ARCONIC OR PRINCIPLE. AND THOSE ARE GREAT COMPANIES. AREN’T WE GRATEFUL IN IOWA THAT WE HAVE THOSE FOLKS HERE? BUT A TYPICAL ABI MEMBER COMPANY IS SMALLER, MAYBE TWO TO 3 TO 400 EMPLOYEES, PRIVATELY HELD, OFTENTIMES HELD BY A FAMILY, A MANUFACTURER THAT MIGHT BE THE LARGEST EMPLOYER IN THEIR COUNTY. AND WE HAVE A TON OF THOSE IN IOWA. WE’RE REALLY LUCKY THAT WE DO. BUT WE HAVE YOU MENTIONED WE DO HAVE ALL SIZES. WE HAVE. PR FIRMS. WE I KNOW OF A FIRM THAT HAS TWO EMPLOYEES IN CENTRAL IOWA THAT IS A LONGTIME MEMBER. AND SO WE SEEK TO REPRESENT ALL THOSE FOLKS. ALTHOUGH I WILL SAY WE PRIMARILY FOCUS PROBABLY ON MANUFACTURING. SO WHEN YOU’RE PUSHING FOR PUBLIC POLICY, HOW DO YOU MAKE SURE THAT THAT POLICY SUPPORTS BOTH YOUR LARGEST BUSINESSES BUT ALSO YOUR SMALLEST ONES? YEAH, I OFTEN SAY THAT ONE OF THE GREAT THINGS ABOUT ABI IS THAT WE HAVE THIS HUGE, DIVERSE MEMBERSHIP. ONE OF THE CHALLENGES THAT ABI IS THAT WE HAVE THIS HUGE, DIVERSE MEMBERSHIP. AND SO YOUR YOUR QUESTION IS A GOOD ONE. EVERY MEMBER, REGARDLESS OF SIZE, GETS A VOTE. POLICY POSITIONS AT ABI DETERMINED BY OUR BOARD OF DIRECTORS. IT’S LARGE. THERE ARE 62 MEMBERS OF THAT BOARD. THEY REPRESENT ALL KINDS OF INDUSTRIES, ALL KINDS OF SIZES OF COMPANY, DIFFERENT GEOGRAPHICAL LOCATIONS IN IOWA. AND, YOU KNOW, THE WAY THIS WORKS IS THAT WE HAVE A POLICY DEVELOPMENT PROCESS THAT TAKES SEVERAL MONTHS, INVOLVES HUNDREDS OF MEMBERS. THEN THEY’LL DEVELOP A SLATE OF POLICY POSITIONS. THE BOARD WILL CONSIDER THOSE AND AND VOTE ON THEM IF THERE’S A DISAGREEMENT. AND IT’S RARE, BUT THERE HAVE BEEN DISAGREEMENTS OVER THE YEARS, THEN WE MAY MEET AGAIN. MAKE SURE WE GIVE FULL VOICE TO THOSE WHO DON’T AGREE WITH THE POSITION THAT WAS ADOPTED BY THE BOARD, AND THEN SEEK TO BRING EVERYBODY TOGETHER AROUND IT. AT THAT POINT. WELL, LATER IN THE SHOW, WE’RE GOING TO DISCUSS A LITTLE BIT MORE ABOUT WHAT SOME OF THE LEGISLATION, SOME OF YOUR MEMBERS MAY BE ASKING FOR. BUT FIRST, WE’RE GOING TO PAUSE NOW FOR A BRIEF BREAK WITH MUCH MORE TO COME WITH MIKE RALSTON. WHEN CLOSE-UP RETURNS. WELCOME BACK TO CLOSE UP. WE CONTINUE OUR CONVERSATION NOW WITH MIKE RALSTON, WHO’S THE OUTGOING PRESIDENT OF THE IOWA ASSOCIATION OF BUSINESS AND INDUSTRY. MIKE, I WANT TO TALK TO YOU NOW ABOUT KIND OF THE STATE OF BUSINESS. WHAT ARE SOME CHALLENGES THAT EMPLOYERS IN IOWA ARE FACING RIGHT NOW? WELL, WE’RE FORTUNATE, AMANDA, THAT MOST EMPLOYERS IN IOWA ARE IN A PRETTY GOOD SPOT. BUT THERE DEFINITELY ARE CHALLENGES RIGHT NOW. FIRST AND FOREMOST, ALWAYS IS THE NEED FOR PEOPLE. AND RIGHT NOW, SOME ESPECIALLY LARGER COMPANIES, HAVE GONE THROUGH LAYOFFS. THAT’S NEVER FUN FOR THOSE EMPLOYEES AND THEIR FAMILIES. BUT THE GOOD NEWS IS THAT A LOT OF THEM ARE BEING PICKED UP BY SMALLER COMPANIES, SMALLER MANUFACTURERS, AND SMALLER FIRMS. SO THAT’S GOOD NEWS BECAUSE OUR SMALLER FIRMS ALWAYS ARE LOOKING FOR PEOPLE. SO THAT’S CHALLENGE NUMBER ONE. NUMBER TWO IS A IS REALLY TO RETAIN THOSE EMPLOYEES. AND WHEN I STARTED AT ABI IN 2005, CHILD CARE HOUSING, HEALTH CARE THOSE WEREN’T REALLY BUSINESS ISSUES, BUT THEY CERTAINLY ARE NOW. AND SO A LOT OF COMPANIES ARE HELPING TO ADDRESS THOSE WHEN MAYBE THEY DIDN’T LOOK AT THOSE KINDS OF ISSUES BEFORE. I KNOW OF MANY, MANY COMPANIES THAT HAVE OPENED UP A HEALTH CARE FACILITY ON THEIR CAMPUS, NO MATTER HOW SMALL. I KNOW OF MANY, MANY, MANY COMPANIES WHO HAVE PARTNERED WITH OTHER COMMUNITY ORGANIZATIONS, MAYBE TO OPEN A DAYCARE OR HAVE PUT A DAYCARE INTO THEIR FACILITY. AND WE KNOW A LOT OF BUSINESSES IN THIS STATE ARE SEEKING TO WORK ON HOUSING ISSUES AND MAKE SURE THEY’RE HOUSING FOR THEIR EMPLOYEES. SO THAT WHOLE RETENTION PART OF THE EQUATION HAS GOTTEN A LOT BIGGER. AND THEN I GUESS I’LL END WITH THE SUPPLY CHAIN INFLATION, COST OF MATERIALS. THOSE ARE ISSUES TOO, THAT FACE IOWA BUSINESSES. A LOT OF ASPECTS THERE. I’M CURIOUS ON THE CHILDCARE FRONT BECAUSE THIS IS SOMETHING WE’VE, YOU KNOW, TALKED ABOUT AT THE LEGISLATIVE LEVEL, WE’VE TALKED ABOUT IN THE PRIVATE SECTOR. YOU KNOW, WHAT DO YOU SEE AS THE THE BEST PATH FORWARD FOR HELPING EMPLOYEES, YOU KNOW, HAVE AFFORDABLE ACCESS TO CHILD CARE, BUT ALSO HELPING BUSINESSES, YOU KNOW, HAVE THAT AS SOMETHING THAT’S AVAILABLE TO THEIR EMPLOYEES, RIGHT. NOT EVERY BUSINESS CAN AFFORD TO OPEN A CHILD CARE FACILITY ON THEIR CAMPUS. AND MORE GOOD NEWS IN IOWA IS THAT THE GOVERNOR AND THE LEGISLATURE, MEMBERS OF THE LEGISLATURE FROM BOTH PARTIES HAVE REALLY COME TOGETHER, ESPECIALLY TO ADDRESS THAT CHILD CARE ISSUE. THERE ARE ALL KINDS OF INCENTIVES TO HELP COMMUNITIES ADDRESS THE ISSUE, AND I’M PROBABLY BIASED. I THINK THAT’S GREAT BECAUSE THAT ALLOWS COMMUNITIES TO DEVELOP THE SOLUTION THAT WORKS BEST FOR THEM. I’M GOING TO GIVE YOU A COUPLE OF SPECIFIC EXAMPLES. VERMEER CORPORATION HAS A YELLOW IRON ACADEMY. IT’S A CHILD CARE FACILITY ON THEIR CORPORATE CAMPUS. THAT’S WONDERFUL. AGAIN, NOT EVERY BUSINESS CAN AFFORD THAT. IN THE TOWN OF FAIRFIELD IN SOUTHEAST IOWA, AGROINDUSTRIAL PLASTICS AND WHEATON COMPANIES AND MANY OTHER COMPANIES HAVE COME TOGETHER WITH OTHER COMMUNITY PARTNERS TO BUILD A DAYCARE THAT ALL THE COMMUNITY CAN USE. SO THOSE KINDS OF THINGS MIGHT NOT HAVE BEEN POSSIBLE WITHOUT THE INCENTIVES PROVIDED BY STATE GOVERNMENT. SO IT’S REALLY, AS IT ALWAYS IS, A PARTNERSHIP THAT SEEMS TO BE WORKING. WE NEED MORE OF IT. ARE YOUR MEMBERS WEIGHING THE PROS AND COSTS OF SOMETHING LIKE THAT? OBVIOUSLY A LARGE EXPENDITURE, BUT DO YOU, YOU KNOW, HAVE CONVERSATIONS WITH THEM ABOUT WHAT THE PAYOFF OF THAT WOULD BE LONG TERM? OH BOY. FOR SURE. AND YOU’RE RIGHT. IT’S ALL REALLY A COST BENEFIT ANALYSIS. IF YOU WANT TO RETAIN GOOD EMPLOYEES, THEY’RE GOING TO NEED CHILDCARE. AND SO IT MIGHT MAKE SENSE AND USUALLY DOES TO PARTICIPATE FINANCIALLY IN THAT SOLUTION. AGAIN IF YOU YOU’RE THE KIND OF COMPANY AND YOU HAVE THE CAPITAL, YOU CAN BUILD A DAYCARE FACILITY IN YOUR CAMPUS. THAT’S GREAT. AGAIN, NOT EVERYBODY CAN, BUT THEY CAN WORK WITH PARTNERS TO DO IT. AND SO AT THE END OF THE DAY, IT’S ALL ABOUT WE DON’T WANT TO HAVE TO SPEND MONEY ON RECRUITING A WHOLE BUNCH OF NEW EMPLOYEES ALL THE TIME AND TRAINING THEM. IF WE CAN KEEP OUR GREAT EMPLOYEES, LET’S DO THAT. AND PROVIDING CHILDCARE OPTIONS IS CERTAINLY ONE PART OF THAT. TALKING ABOUT THE WORKFORCE SHORTAGE IN GENERAL, I KNOW, ESPECIALLY COMING OUT OF THE PANDEMIC, THERE WAS SO MUCH CONVERSATION NATIONWIDE ABOUT THE WORKFORCE SHORTAGE. HOW HAVE YOU SEEN THAT CHANGE, YOU KNOW, IN THE PAST FOUR YEARS, SINCE 2020? OH, BOY. A LOT OF CHANGE. AND I’LL EVEN GO BACK FURTHER. I KNOW WHEN I STARTED, YOU KNOW, COMPANIES WOULD PUT OUT A SIGN SAYING THEY WERE HIRING AND THEY’D GET, YOU KNOW, SIX, SEVEN, EIGHT APPLICANTS FOR EVERY OPEN POSITION THAT QUICKLY WENT AWAY. SINCE THE PANDEMIC, EMPLOYERS HAVE HAD TO MAYBE BE BETTER PARTNERS WITH THEIR EMPLOYEES. AND AGAIN, I’M BIASED. I THINK OUR MEMBERS SEEK TO BE THAT KIND OF A PARTNER WITH THEIR EMPLOYEES, AND SO THEY DON’T NECESSARILY JUST ADVERTISE. THEY WORK CLOSELY WITH THEIR LOCAL SCHOOL DISTRICT, CLOSELY WITH THE COMMUNITY COLLEGE IN THEIR REGION TO IDENTIFY STUDENTS AND MAYBE EVEN HELP THOSE STUDENTS PAY TUITION TO GET THEM INTO THEIR PLANT. USUALLY, IF THEY CAN GET THEM INTO THEIR PLANT OR OFFICE, THEY MIGHT BE ABLE TO HELP THEM UNDERSTAND WHY THIS CAREER OPPORTUNITY IS REALLY GOOD FOR THEM. AND THEN YOU ALSO MENTIONED INFLATION AND SUPPLY CHAIN ISSUES. YOU KNOW, HOW ARE BUSINESSES ADDRESSING THAT. THAT’S SOMETHING TO THAT OF COURSE, REALLY CAME HOME TO ROOST IN THE PANDEMIC. A LOT OF SUPPLY CHAIN ISSUES. WE HAD MEMBER COMPANIES THAT HAD BEEN WORKING WITH VENDORS FOR PARTS FOR DECADES, AND THEN THEY WERE IN STATES WHERE THEIR BUSINESSES WERE SHUT DOWN. SO WE HELPED THEM IDENTIFY NEW PARTNERS, NEW VENDORS. AND NOW, OF COURSE, TALK OF TARIFFS IS ALWAYS CONCERNING. AND SO THERE’S A LOT OF SEARCHING FOR NEW VENDORS, SEARCHING FOR NEW SUPPLIERS. AND AND AGAIN, THE GOOD NEWS IS SO FAR MOST PEOPLE ARE ABLE TO ADDRESS IT. THE QUESTION IS OF COURSE HOW LONG WILL THEY HAVE TO DO SOMETHING THAT’S NOT THEIR NORMAL COURSE OF BUSINESS? BUT FOR NOW, THEY’RE OKAY. I’M ALSO CURIOUS, SINCE YOU MENTIONED TARIFFS, YOU KNOW, WHEN YOU’RE TALKING WITH SOME OF YOUR MEMBERS, WHAT ARE YOU HEARING ABOUT POTENTIAL WAYS THAT TARIFFS COULD IMPACT THEM? WELL, A LOT OF OUR FOLKS I SHOULDN’T SAY A LOT, BUT THOSE FOLKS THAT ARE MEMBERS OF OUR ORGANIZATION THAT DO BUSINESS WITH CHINA ARE ESPECIALLY TRYING TO IDENTIFY OTHER VENDORS, OTHER SUPPLIERS, AND HOPEFULLY THEY CAN. THEIR GOAL, OBVIOUSLY, IS TO IDENTIFY A NEW SUPPLIER BEFORE TARIFFS ARE EVER PUT IN INTO PLACE. IF THEY ARE AND YOU KNOW, THERE’S THERE’S A LOT OF TALK ABOUT TARIFFS. BUT IN MANY RESPECTS PRESIDENT ELECT TRUMP SEEMS TO THROW THINGS OUT THERE IN THE WAY OF STARTING A NEGOTIATION. AND WE HOPE THAT’S WHAT IT IS. WE’RE IN A VERY MUCH AN OPEN MARKET GROUP. WE THINK THAT MORE MARKETS ARE GOOD FOR FOR BUSINESS. AND SO THE TARIFFS ARE SCARY. BUT THERE ARE WAYS TO ADDRESS THEM. AND THAT’S WHAT’S HAPPENING. WELL MIKE OUR CONVERSATION WILL CONTINUE. WE’LL BE RIGHT BACK AFTER THIS BREAK. STAY WITH US. WELCOME BACK TO CLOSE UP. WE CONTINUE OUR CONVERSATION WITH MIKE RALSTON, WHO LEADS THE IOWA ASSOCIATION OF BUSINESS AND INDUSTRY. MIKE, NOW, I WANT TO TALK TO YOU A LITTLE BIT ABOUT THE FUTURE OF MANUFACTURING. YOU KNOW, WE SAW WE’VE SEEN LARGE LAYOFFS, YOU KNOW, PARTICULARLY FROM JOHN DEERE, FROM OTHER COMPANIES. WE SAW THE CLOSURE OF THE TYSON PLANT IN PERRY. SO JUST SOME SOME DIFFICULT THINGS THAT, YOU KNOW, TOWNS AND BUSINESSES HAVE HAD TO NAVIGATE, ESPECIALLY IN THIS PAST YEAR. WHAT DO YOU SEE THE PATH FORWARD FOR MANUFACTURING IN IOWA? BEAU BOWMAN I THINK THE PATH FORWARD IS REALLY, REALLY GOOD. HERE ARE A COUPLE OF THINGS IOWA BUSINESSES IN GENERAL OPERATE CONSERVATIVELY, AND I DON’T MEAN POLITICALLY CONSERVATIVE. I MEAN THEY DON’T HAVE A LOT OF DEBT. THEY DON’T HAVE A LOT OF INVENTORY. THEY’RE CAPITAL. THEY’RE WELL POSITIONED WITH CAPITAL. THEY THEY’RE IN A POSITION TO RIDE OUT PROBLEMS AND CHALLENGES. AND OF COURSE, AGAIN, AS WE TALKED EARLIER, THE ISSUE IS ALWAYS HOW LONG WILL IT LAST? THOSE COMPANIES THAT WENT THROUGH LAYOFFS MADE VERY DIFFICULT BUSINESS DECISIONS. AND IT’S POSITIONED THEM TO BE ABLE TO CONTINUE TO BE IN BUSINESS AND TO PROVIDE EMPLOYMENT FOR A LONG TIME. AND SO THOSE ARE ALL OVERALL VERY POSITIVE. BUT AGAIN, IF I WAS ONE OF THOSE PEOPLE WHO WAS LAID OFF, I WOULD NOT BE SO HAPPY ABOUT IT. THERE ARE A LOT OF FOLKS WHO ARE TRYING TO PICK UP THOSE WORKERS. EVEN IN PERRY, THERE’S A GREAT SMALLER MANUFACTURER. THERE NAMED OSMUNDSON MANUFACTURING. THEY PICKED UP A LOT OF THOSE FOLKS WHO WERE AT THE TYSON PLANT, AND THAT’S HAPPENING ALL OVER THE STATE. WE TALKED ABOUT DEERING COMPANY AND THEIR LAYOFFS. SO I THINK EVERYBODY IS TRYING TO DO THE BEST THING THEY CAN TO RIDE OUT THE STORM. BUT THERE’S ONE OTHER THING THAT’S REALLY IMPORTANT THAT’S HAPPENING THAT DOESN’T GET A LOT OF ATTENTION. AND I ALREADY GAVE SOME POSITIVE SPIN TO THE GOVERNOR AND THE LEGISLATURE. I’M GOING TO DO IT AGAIN. THE GENERAL ASSEMBLY AND THE GOVERNOR CREATED A PROGRAM FOCUSED ON MANUFACTURING 2.0, WHICH IS MEANT TO BRING AUTOMATION AND OTHER THINGS TO IOWA. MANUFACTURERS. IT’S ALREADY MAKING A BIG DIFFERENCE. I. ARTIFICIAL INTELLIGENCE IS MAKING A BIG DIFFERENCE. THOSE KINDS OF PROGRAMS ARE REALLY HELPING IOWA MANUFACTURERS IN PARTICULAR POSITION FOR THE FUTURE. AND THAT’S REALLY TERRIFIC. SO FOR PEOPLE WHO MAY BE SOUNDING THE ALARM, SEEING THESE CLOSURES, SEEING THESE ISSUES, YOU MAY BE PUSHING BACK ON THAT A LITTLE BIT, SAYING, YOU KNOW, WE’RE NOT HEADED TOWARDS, YOU KNOW, DESTRUCTION. NO. RIGHT. I WOULD SAY JUST THE OPPOSITE. AND AGAIN, IF I’M GOING THROUGH THAT, IT’S NO FUN. AND I, YOU KNOW, I SOMEBODY CAN SPIN IT ALL THEY WANT. BUT I WILL TELL YOU OVERALL IOWA MANUFACTURERS IN PARTICULAR, BUT IOWA BUSINESSES OF ALL KINDS ARE REALLY WELL POSITIONED. ONE OF THE BIGGEST CHALLENGES RIGHT NOW IS COMMODITY PRICES. YOU KNOW, WE’VE GOT WHAT CORN UNDER $5, BEANS UNDER $10. THERE’S SOME THOUGHT THAT DURING THE THIRD QUARTER OF NEXT YEAR, THOSE WILL COME UP AGAIN. THAT WOULD MEAN A BIG THING FOR IOWA AG MANUFACTURERS. SO WE ALL WANT THAT TO HAPPEN. LOTS OF CHALLENGES, BUT I THINK WE’RE WELL POSITIONED. WELL, WHEN WE COME BACK, WE WANT TO TURN TO LOOK AT THE 2025 LEGISLATIVE SESSION AND SOME THINGS THAT YOUR MEMBERS MAY BE PUSHING FOR THERE. WE’LL BE RIGHT BACK AFTER THIS BREAK. STAY WITH US. WELCOME BACK TO CLOSE UP. WE CONTINUE OUR CONVERSATION WITH MIKE RALSTON, WHO LEADS THE IOWA ASSOCIATION OF BUSINESS AND INDUSTRY. THANKS FOR BEING WITH US. WE’RE TURNING NOW TO THE 2025 LEGISLATIVE SESSION. STATE LAWMAKERS WILL RETURN TO THE IOWA STATE HOUSE NEXT MONTH. MIKE, WHAT DOES ABI WHAT TYPE OF LEGISLATION WOULD THEY LIKE STATE LAWMAKERS TO TAKE UP? THE THINGS THAT OUR MEMBERS ALWAYS ASK ABOUT AMANDA ARE RELATED TO IMPEDIMENTS TO DOING BUSINESS. AND SO THIS STATE’S MADE A LOT OF PROGRESS IN THOSE AREAS GOING FORWARD. ONE THING THAT LEGISLATORS HAVE SPENT A LOT OF TIME ON IN RECENT YEARS, AND THE GOVERNOR IS REDUCTION IN IOWA’S TAX BURDEN. THERE’S THERE IS A LOT OF TALK IN THIS COMING SESSION THAT THE FOCUS WILL BE ON PROPERTY TAX. WE THINK THERE ARE SOME THINGS THAT CAN BE DONE THERE. OUR ISSUE IS IF WE’RE GOING TO DO SOME SORT OF PROPERTY TAX REFORM, LET’S MAKE SURE IT INCLUDES COMMERCIAL AND INDUSTRIAL PROPERTY TAXPAYERS AND NOT JUST THE OTHER CLASS, BUT FOR THE MOST PART, THE STATE’S DONE A GOOD JOB OF ADDRESSING THAT. YOU KNOW THAT YESTERDAY, THE IOWA REVENUE ESTIMATING CONFERENCE MET AND SET A BUDGET TARGET FOR THE YEAR OR A REVENUE TARGET FOR THE YEAR. IT’S DOWN SIGNIFICANTLY FROM THE YEAR BEFORE. BUT THAT WAS PLANNED. AND SO AS LONG AS THE LEGISLATURE AND THE GOVERNOR CONTINUE TO DO THE GREAT JOB THEY’VE DONE ON ON PLANNING, WE CAN ALL EXPECT CERTAIN THINGS. THAT’S REALLY A BIG THING FOR BUSINESS. YOU KNOW, CONTINUITY AND BE ABLE TO KNOW WHAT’S COMING ON PROPERTY TAX. WE’VE TALKED A LOT TO TO HOMEOWNERS ABOUT WHAT THEY’D LIKE TO SEE. BUT FROM THE COMMERCIAL AND INDUSTRY SIDE, WHAT WOULD THEY LIKE TO SEE, WHAT COULD BE SHIFTED TO HELP THEM? WELL, A COUPLE OF THINGS. EVERYBODY ALWAYS TALKS ABOUT THE RATE. BUT, YOU KNOW, TAX IS A NECESSARY COST OF DOING BUSINESS. OUR GROUP IS NOT AN ANTI-TAX ORGANIZATION AT ALL. WE WANT TO BE ABLE TO HAVE PLOWS FOR THE ROADS AND AND THOSE SORTS OF THINGS. AND THAT AGAIN TAKES A PARTNERSHIP BETWEEN STATE AND LOCAL GOVERNMENT AND BUSINESS. ONE OF THE THINGS THAT WE’D LIKE THEM TO LOOK AT IS A IS THE ROLLBACK THAT ALL RESIDENTIAL PROPERTY TAXPAYERS, BECAUSE IT IMPACTS OUR EMPLOYEES, AND THAT’S A ROLLBACK OF THE ASSESSED VALUE OF SOMEONE’S HOME. SO IT IMPACTS THE RATE OF TAX THEY PAY. AND THEN ALSO SOMETHING THAT HAPPENS FOR COMMERCIAL AND INDUSTRIAL PROPERTY TAXPAYERS IS THE WAY THEIR TAXES ARE CALCULATED. SOME OF OUR MEMBERS ARE CENTRALLY ASSESSED, WHICH MEANS THE LOCAL ASSESSOR DOESN’T ASSESS THEM. THEY’RE ASSESSED BY THE DEPARTMENT OF REVENUE. AND SO WE’D LIKE THE STATE TO TAKE A LOOK AT THAT PROCESS AND MAKE SURE IT’S WORKING THE WAY IT SHOULD. ANYTHING ON WORKFORCE OR RECRUITMENT OR ANYTHING LIKE THAT? I KNOW THE LEGISLATURE HAS TAKEN SOME STEPS THERE ALREADY, BUT IS THERE ANYTHING MORE YOU’D LIKE THEM TO DO? THEY’VE DONE A TON, AND WE ALWAYS THINK THE BEST TAX POLICY IS AN INVESTMENT IN PEOPLE. AND SO ANYTHING THAT PROMOTES A TRAINING OR INCENTIVES FOR BUSINESSES TO HIRE MORE EMPLOYEES, WE THINK THOSE ARE GOOD THINGS. AND YOU’RE RIGHT, THE GOVERNOR AND THE LEGISLATURE HAVE DONE AMAZING THINGS ON THEIR ON THAT FRONT, WE HAVE A PARTNERSHIP PROGRAM WITH IOWA COMMUNITY COLLEGES THAT WORKS REALLY WELL. IT’S CALLED ELEVATE ADVANCED MANUFACTURING. ANYTHING THAT WOULD INCENT THOSE KINDS OF PROGRAMS AND OTHER INDUSTRIES. YOU KNOW, WE’VE GOT A TRUCK DRIVER SHORTAGE. WE’VE GOT A CONSTRUCTION WORKER SHORTAGE, A NURSING SHORTAGE. ANYTHING THAT HELPS ADDRESS THOSE PARTICULAR AREAS WE THINK IS A GOOD THING. AND THE LEGISLATURE IS CERTAINLY OPEN TO DOING THAT IF THEY CAN. THERE WAS A RECENT REPORT ON THE AGRICULTURE INDUSTRY AND AGRICULTURE MANUFACTURING THAT TALKED JUST ABOUT SOME OF THE STRUGGLES THEY WERE FACING, INCLUDING, YOU KNOW, COMMODITY PRICES, FARM BILL STUFF IS OBVIOUSLY AT THE FEDERAL LEVEL. BUT IS THERE ANYTHING, YOU KNOW, LOOKING TO THE NEW CONGRESS THAT COULD HELP AT A FEDERAL LEVEL FOR SOME OF YOUR AGRICULTURAL AGRICULTURE MANUFACTURERS? OR, I MEAN, IF IT’S OUTSIDE OF THAT, IF THERE ARE OTHER FEDERAL THINGS YOU’D LIKE TO SEE, FEEL FREE TO TOUCH ON THAT AS WELL. SENATOR GRASSLEY WAS IN IN TOWN, OH, A MONTH OR SO AGO, SPEAKING AT A CONFERENCE, AND WE HAD AN OPPORTUNITY TO TALK ABOUT THIS VERY THING. THE FIRST AND MOST IMPORTANTLY, IF THEY COULD PASS A FARM BILL, IT’D BE GREAT BECAUSE AGAIN, JUST CERTAINTY IS SO IMPORTANT TO BUSINESS PEOPLE. SO JUST TO KNOW THE PARAMETERS OF DIFFERENT PROGRAMS IS A BIG, BIG DEAL. SO JUST PASSING A FARM BILL, NO MATTER WHAT IT SAYS, WOULD BE REALLY, REALLY HELPFUL. BUT THE KINDS OF THINGS THEY CAN DO THAT THEY’VE DONE IN PAST FARM BILLS RELATE TO TRAINING AND EMPLOYMENT INCENTIVES RELATE TO FUNDING OF AG SUPPORT PROGRAMS. THOSE ARE A BIG DEAL FOR IOWA FARMERS, OBVIOUSLY, AND THUS FOR FOLKS WHO MAKE THE PRODUCTS THAT THEY USE. SO I DON’T KNOW IF I HAVE ANYTHING SPECIFIC TO SAY, JUST LET’S GET IT PASSED IF WE CAN. CERTAINLY, SENATOR GRASSLEY AND THE IOWA DELEGATION AS A WHOLE ARE REALLY EAGER TO SEE THAT HAPPEN. AND THEN LASTLY, JUST BACK TO THE STATE LEVEL, ANYTHING PARTICULAR TO SMALL BUSINESS, SOMETHING THAT I HEAR AND I TALK TO, YOU KNOW, SMALL BUSINESSES IS I’M NOT QUITE SURE WHAT THE STATE LEGISLATURE COULD DO, BUT MAN, IT’S TOUGH TO COMPETE WITH A LOT OF THESE, YOU KNOW, MORE NATIONALIZED BUSINESSES. IS THERE ANYTHING PARTICULARLY THAT COULD HELP THEM REGULATORY WISE OR OTHERWISE? WELL, I THINK THE BIGGEST THING IS IF THE STATE COULD DO AN EVEN BETTER JOB. THEY WORK HARD AT IT NOW, BUT IF THEY COULD DO A BETTER JOB OF MAKING SURE SMALLER BUSINESSES KNEW THE KINDS OF INCENTIVES AND ASSISTANCE THAT THAT THAT’S OUT THERE, BECAUSE THE GENERAL ASSEMBLY AND THE GOVERNOR HAVE DONE A GREAT JOB OF PROVIDING THESE KINDS OF PROGRAMS. BUT THE TROUBLE IS, TOO MANY TIMES WE DON’T ALL KNOW ABOUT THEM. AND SO AND WE TRY TO HELP WITH THAT, TOO. WE WORK HARD TO PROMOTE THEM AND MAKE SURE FOLKS KNOW ABOUT THEM. BUT ANYTHING THAT COULD DO THAT WOULD BE HELPFUL. WELL, MIKE, WE REALLY APPRECIATE YOU MAKING TIME TO JOIN US, AND WE’RE SO HAPPY FOR YOU AS YOU ENTER THIS NEXT CHAPTER OF RETIREMENT. BUT THANKS FOR FOR JOINING US AND FOR THIS CONVERSATION THIS MORNING. THANK YOU VERY MUCH. AND THANK YOU ALL FOR JOINING US FOR ����vlog EIGHT NEWS CLOSE UP. WE WISH YOU ALL THE BEST THIS HOLIDAY SEASON, AND WE’LL SEE YOU BACK HERE NEXT SUNDAY. HAVE A GREAT DAY.