Iowa Q2 BRE Update

IEDA Business Retention & Expansion (BRE) Survey – Q2 2025 Report Summary

Overview

The BRE Survey is a collaborative effort by the Iowa Economic Development Authority (IEDA), MidAmerican Energy, and local economic developers (including the Iowa Lakes Corridor) to assess the current landscape and future plans of Iowa’s employers. The survey, conducted quarterly, helps shape statewide economic development policies, such as the “This is Iowa” campaign and the Employer Child Care Tax Credit.

Key Findings – Q2 2025

Business Expansion Outlook

• 42.4% of surveyed businesses plan to expand within the next three years.
  • This is down from 44.2% in 2024, but a modest rise from 40.1% in Q1 2025.
• Anticipated capital investment: $545.4 million, with a notable focus on real estate over machinery/tech.
• Projected job creation: 323 new positions.

Barriers to Local Expansion

• Only 18.0% of businesses cited reasons their current community may not be considered for expansion—lowest since Q1 2024.
• Top concerns:
  • Workforce challenges (12 businesses).
  • Other issues (11 businesses).

Leadership Transition Trends

• 31.5% of companies reported recent or upcoming changes in top leadership—highest rate to date.
  • Up from 19.8% in 2024 and 23.1% in Q1 2025.

International Business Concerns

• 31.5% of respondents reported facing logistics or regulatory issues in international markets.
  • This is a significant spike from the previous high of 13.9% in Q3 2024.

Thank You to Participating Organizations

Special thanks to these local partners for their support: Ames Regional Economic Alliance, Cedar Rapids Metro Economic Alliance, Greater Dubuque Development Corp., Greater Iowa City Inc., Grow Cedar Valley, Hiawatha Economic Development Corp., Iowa Lakes Corridor Development Corporation, Kossuth/Palo Alto County Economic Development Corp.