Corridor businesses, organizations honored at Business 380 award events

Economic development and transportation must be critically linked for Iowa to succeed in an increasingly competitive global economy.

Debi Durham, director of the Iowa Economic Development Authority, and Paul Trombino, director of the Iowa Department of Transportation, discussed the importance of that relationship as keynote speakers Thursday at the Business 380 Excellence Awards dinner at The Hotel at Kirkwood Center in Cedar Rapids.

The event, which recognized excellence in finance, not-for-profits, corporate culture, health care, technology, manufacturing, commercial real estate, education and civic partnership, was attended by 255 people.

Durham said a 2014 report from Battelle Technology Partnership Practice in Ohio showed Iowa has made substantial economic progress focusing on industry clusters over the last decade. But the report said that approach has its limits.

'Battelle said 'If you continue to focus on industry clusters, you will only see economic growth of about 1 percent per year and that's not enough to sustain your economy,'' Durham said.

Durham said Iowa needs to 'own' an industry sector that will set the state apart from other states. She said the biochemical industry offers significant potential for long-term growth.

'We need to start thinking like a petroleum company,' Durham said. 'Most of their profits are coming from chemicals. We need to surround every ethanol and biodiesel plants with chemical harvesting plants.'

Durham said a bill offering state incentives for biochemical manufacturing failed to make it through the Legislature in the recent session.

Trombino said Iowa's transportation infrastructure plays a key role in the movement of people and products to national and global markets.

'Iowa is a manufacturing state and we do it pretty well,' Trombino said. 'Manufacturing has changed dramatically in recent years. Auto manufacturers are sourcing thousands of components from different suppliers.

'All of those parts are moving on the global transportation system. And the resiliency and productivity of that system is directly linked to the cost of those products.'

Trombino said IDOT has compiled data on the movement of commodities between towns and counties in Iowa and the nation.

'That information will help us make better decisions about the transportation system inside Iowa to hopefully make it more resilient and cost-effective,' Trombino said.

IDOT is looking at initiatives, such as freight consolidation and construction of an intermodal facility for shipping containers, that could save shippers hundreds of millions of dollars annually.