Cedar Rapids’ robust logistics industry makes the Corridor a hub for manufacturing

This story first appeared in The Long Haul 2024, an annual special section that celebrates National Truck Driver Appreciation Week by looking at Eastern Iowa’s trucking industry.

Reliable transportation is one of the building blocks for growing any local economy.

“A strong logistics industry is the foundation,” said David Connolly, Cedar Rapids’ senior economic development specialist. “So many manufacturers that locate in Cedar Rapids depend on inbound and outbound logistics.”

The area’s historic role as a processor of the region’s farm crops into food (or at least ingredients) made Cedar Rapids a hub for transport and distribution. That emphasis shifted from rail to road with the development of the Interstate highway system, although railroads remain a fundamental tool, too.

“Our community’s largely a production facility for the food manufacturers,” said Chris Hummer, president of Cedar Rapids-based Don Hummer Trucking. His grandfather launched his namesake company in the 1950s, hauling cattle and hogs to local packing plants.

Today, Hummer is one of 138 trucking and warehousing-related businesses supporting the region’s manufacturers, as counted by Connolly.

“We’ve got a tremendously robust carrier network, whether it’s truck or rail,” said Jeff Woods, director of business development for Travero. The Alliant Energy subsidiary provides transloading, distribution, warehousing and other logistics services at its Logistics Park Cedar Rapids.

The symbiotic relationship affords the Corridor an advantage in attracting new manufacturers.

“You have to have a good logistics system in your community to advocate for manufacturing to locate here,” said Ron Corbett, vice president of economic development for the Cedar Rapids Metro Economic Alliance.

Corbett estimates the organization has fielded about 70 serious requests over the past three years from companies interested in locating in the area — most of them manufacturers. A reliable supply and distribution chain is among their top priorities.

“When a manufacturer comes into town, they’re looking at a community,” Corbett said. “We can say, ‘If you come, we can build it.’ We can support a facility with logistics and transportation.”

The roots of today's Cedar Rapids-based Don Hummer Trucking were planted in the 1950s in Oxford, Iowa. Buck Hummer, father of Don, started hauling cattle from farms and feedlots to local packing plants. (Submitted photo)

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Facilities like Logistics Park Cedar Rapids support the trucking industry. Incoming trucks are unloaded and their cargoes sorted for local delivery or forwarding to regional Midwest markets. (Submitted photo)

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Since 2021, Cedar Rapids’ incentives in land acquisition and development have drawn four major logistics-related projects:

The simple fact of Cedar Rapids’ location within four or five hours of major Midwest markets makes it a natural center for distribution to regional markets.

“We’re certainly blessed, being located where we are,” Corbett said. “With Minneapolis, Kansas City, Omaha, Chicago, St. Louis, that does give us a selling point of being in a sweet spot for those markets.”

In addition to transport, any regional hub needs warehousing and distribution to ensure a smooth flow of products. Places like Travero’s Logistics Park specialize in taking inbound loads and shuffling them to build outbound loads for transport to end users.

“Cedar Rapids is in a hub-and-spoke system,” Woods said. “We’re on the end of the spoke, but we have a lot of industries that locate here as a hub. We offer a one-stop shop for people, whether they’re dealing with a rail car or a truck.”

A critical mass of such services is a key factor for manufacturers looking to locate a new facility.

“What companies want is a choice between service providers and choice between modes,” Connolly said. “One of the advantages of having that depth in our labor market for trucking is to give them competition.”

“Transportation is one of the biggest costs they have,” Woods said of manufacturers. “They pay very close attention to rates. People look for optionalities, or cheaper ways to move goods. Now, you see a lot of capacity and fairly low truck rates. When that happens, trucks get very aggressive” in pricing.

Those choices also mean more options for drivers, warehouse workers, mechanics and other support services. Which in turn draws qualified workers to the area.

“One of the reasons strategically that we’ve gone after manufacturing is the multiplier effect,” Corbett said. “It’s not just all the jobs they create, but he secondary economy that revolves around manufacturing.”

“Any business is going to tell you hiring is a challenge,” said Hummer, whose company employs 300 drivers nationwide. “I’m always hesitant to say that hiring is easy. It’s never easy, but I feel pretty good where we’re at with our current local workforce.”