Loebsack sees opportunities for area's small businesses

MARION – Landing a large business employing hundreds would be a great boon to Eastern Iowa, U.S. Rep. Dave Loebsack said July 6, but he thinks it's more likely small businesses will drive growth in the region.

Loebsack, a Mount Vernon Democrat who's up for re-election this fall, is touring small businesses around the 15-county 2

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District to learn about the challenges they face, especially in light of the current economic conditions.

“First and foremost, the tour is a recognition that small businesses are economic drivers, are jobs drivers,” Loebsack said while visiting Involta, a Marion company that provides secure off-site computer data storage. Involta, which had been located in downtown Cedar Rapids, last fall moved to an $8.5 million 18,000-square-foot data center in Marion to meet its space needs.

“I'm focusing on the importance of small business to this area,” Loebsack said.

He expects to hear frustrations with the economy as well as concerns about access to capital, and taxes and regulation.

He recently called for reinvigorating the manufacturing base to put Iowans back to work.

“For far too long we have watched as jobs are shipped overseas and factories are left empty,” Loebsack said. “In addition to good-paying jobs, a strong manufacturing industry provides us with the base we need for national defense and boosts our nation's clean energy economy.”

There have been some successes, Loebsack said, and there could be more as existing manufacturers take advantage of growth in larger industries.

For example, Loebsack said, Acciona Energia, a Spanish company with a plant in West Branch, provides an opportunity for small manufacturers to supply some of the parts its needs to build wind turbines.

“Maintaining larger firms in our area creates opportunities for small manufacturers,” he said.

Loebsack also called for changing tax policies that make it cheaper for companies to operate overseas.

“I refuse to let other countries take the lead in manufacturing the equipment, materials, and new technologies that the rest of the world will use,” he said. “We must start building things in America again.”

In the case of Involta, its chief executive officer, Bruce Lehrman, told Loebsack a new Chicago-area client has expressed interest in hiring 10 to 15 employees to work near the Marion data storage facility. After learning more about the costs of land, labor, utilities and inputs, Lehrman said, the firm also talked about relocating jobs from India to the Cedar Rapids area.

Loebsack continues his tour through the week. He has visits scheduled:

July 7 -- 3 p.m., Greater Burlington Partnership;

July 8 – 11:10 a.m., LISCO, Fairfield; 3:30 p.m., Neely Manufacturing, Corydon;

July 9 – 11:45 a.m., Cutting Edge Engraving, Palo; 1 p.m., AES Corporation, Cedar Rapids; 2:45 pm., TMone, Iowa City; 4 p.m., River Product Company, Coralville.