'Report card' shows Iowa far less than competitive

A report released Wednesday shows Iowa has not achieved a competitive advantage over the last decade in four of five measurements of competitiveness with other states.

The Iowa Business Council, comprised of the leaders of the largest employers in the state and the three public universities, said its first IBC Competitiveness Index is an assessment of historical and current economic prosperity and growth.

The five measurements of competitiveness, identified by the Business Council in a January "call to action," are economic growth, education and work force readiness, governance and fiscal matters, health and well-being, and work force demographics and diversity.

The report, which the Business Council terms a "report card," also found that Iowa consistently ranks in the third, fourth, or fifth quintile of many public- and private-sector rankings, surveys, and measures. The only area where Iowa has achieved any improvement is health and well-being, improving in three of the five metrics identified.

"The Iowa Competitiveness Index identifies Iowa's current strengths and challenges, providing our government and private sector leaders with the opportunity to examine the different aspects of Iowa's regional and national competitiveness,” said Tom Aller, Iowa Business Council chairman and president of Interstate Power and Light Co. in Cedar Rapids.

"“The challenge is leveraging Iowa's competitive advantages and mitigating its identified weaknesses to build a strong, vibrant, and welcoming business climate that attracts a skilled and diverse work force.," Aller said in a statement accompanying release of the report.

Aller said Iowa should target economic development efforts on a regional basis to remain competitive with other parts of the country that are moving forward with more dynamic economic growth models, education reform initiatives, government efficiency practices, and work force attraction results.

The Iowa Competitiveness Index found that Iowa's economy grew between 2000 and 2010, but not fast enough to improve its ranking against other states. The report says Iowa must remain focused on pursuing and adopting new innovations that will attract talent and enable the state to respond to change and develop an advantage in the global marketplace.

In the area of education and work force readiness, the report found that Iowa test scores have remained steady or risen slightly, while other states have made substantial progress. Minimal changes have occurred in test scores between the fourth and eighth grades where most national experts and reports suggest that strengthening the learning and understanding of math and science must occur.

With regard to governance and fiscal matters, the Iowa Competitiveness Index notes that the cost of a primary and secondary education, social services, infrastructure, and public safety continue to increase in Iowa. That has put a strain on local and state budgets as some areas of Iowa also have experienced lower tax receipts due to declining population.

The report suggests that the LEAN initiative, which focuses on continuous process improvement, needs to be applied at all levels of government to achieve more cost-effective results. The report recommends that the Office of LEAN Enterprise in the Executive Branch be revitalized and an accountable organization should be identified to address the use of LEAN concepts in local government.

In the area of work force demographics and diversity, the index shows Iowa has made little or no progress over the last decade. While the state's population increased slightly between 2000 and 2010, the rate of growth was not sufficient to offset the number of residents leaving the state.

The report said Iowa still lacks the ability to attract populations with diverse skill sets as well as retaining its “best and brightest” talent graduating from the state's private and public colleges and universities.

The Iowa Business Council said it plans to periodically revisit and review relevant data and information that measure Iowa‘s business environment and identify areas that need attention.

View the complete Iowa Competitiveness Index report at http://www.iowabusinesscouncil.org/content/iowa-competitiveness-index