strategic doing THE 2011 ANNUAL REPORT OF THE IOWA CITY AREA DEVELOPMENT GROUP
The Iowa City Area Development Group provides economic and workforce development services for our investors and clients in Iowa City, Coralville, North Liberty, Kalona, Solon, Tiffin, Tipton, West Branch, West Liberty, the Amana Society and Johnson County. With the support of these communities and more than 150 investors, we remain steadfast to enhance the quality of our communities by serving the business development needs of interstate commerce companies. ICAD Group creates, collaborates and leads regional economic development initiatives that contribute to the creation and growth of companies, wealth and quality jobs through a spirit of innovation and a culture of sharing that transforms knowledge into economic opportunity.
Last year’s rousing keynote from author Richard Longworth, combined with a new vision and strategic plan approved by the ICAD Group Board of Directors, presented this organization with an interesting challenge: create programming that advances business development and this region far into the future, all within a framework that is focused locally, regionally and globally. And, do this amidst ongoing economic strife at home and abroad. No doubt, these were daunting challenges, complete with some inherent paradoxes. The approach would need to be measured, taking into consideration what ICAD Group could influence, what it could impact and certainly what it could control. Time and resources were both in finite supply, so creativity would also be paramount in facing these tasks.
As I reflect on ICAD Group’s response, and its many accomplishments over the past year, two words kept resurfacing: “Strategic doing.” Strategic doing is action with implied strategy. It’s working with an end goal in mind; a goal that may not be realized for decades, but nonetheless, one worth pursuing. Strategic doing goes beyond standing still. It requires research and planning, vision and innovation, trial and error. Strategic doing has been the mantra of ICAD Group this past year, keeping the organization on the right track, dedicated to the needs of its clients, the advancement of its communities, and providing results to its investors. The pages ahead detail the outcomes of our efforts from the last twelve months. We have also included data from Chmura Economics, measuring local economic impact over the past five years of our “Creating Advantage | Investing for Results” campaign. I’m confident you’ll agree that considerable work was done and it was done well. ICAD Group is committed to helping this region grow now and well in to the future in the most efficient and effective ways possible. On behalf of the ICAD Group Board of Directors and its staff, thank you for your continuing support. You’ve invested in a bright future for this area and have helped ICAD Group build a solid foundation, one that we can use to enhance performance, engage clients, delight investors and achieve our long term vision.
Scott R. Fisher, Chair Iowa City Area Development Group The 2011 Annual Report of the Iowa City Area Development Group | 1
FY2007–FY2011 Campaign Goals & Accomplishments
Projects Jobs (New & Retained) Average Wage Capital Investment
Primary Sector Job Growth in the Iowa City Area
GOAL
RESULTS
42
34
2,880
3,114
$18/hr
$20.30/hr*
$250 million
$276 million
*With an average wage of $20.30/hr, the annual payroll for new and retained jobs is $131 million.
INDUSTRY
FY2007
FY2011
RESULT
Manufacturing
7,977
8,147*
+2.1%
Educational Services
2,824
3,207
+13.6%
Finance/Insurance
541
664
+22.7%
Technology
612
725
+18.3%
Ag Related
48
Transportation/Warehousing Total Primary Sector Employment
109 +127.1%
737
1,022
+38.7%
12,739
13,874
+8.9%
*165 committed manufacturing jobs are included in the 2011 job total based on project announcements. Data provided from annual company interviews and project announcements.
THE ICAD GROUP BOARD OF DIRECTORS
set some lofty economic impact goals at the start of the “Creating Advantage | Investing For Results” five-year investment campaign in 2007. Even with the worst economic environment since the Great Depression, our market has been very resilient and produced results considered to be some of the best in the nation.
RESULTS 2 | The 2011 Annual Report of the Iowa City Area Development Group
We’ve continued to maintain one of the lowest unemployment rates in the state and nation, while at the same time growing our population at a pace almost four-times the state average and 64% faster than the national average. ICAD Group continues to focus on those sectors that add good wages, benefits and tax base to our communities and state: Life Sciences, Educational Testing & Support Services, Consumer Products, Information Technology, and Renewable Energy.
Impact of ICAD Group Assisted Projects on the Iowa City Area The tables across the top of this section detail our accomplishments in projects, job retention and growth, as well as investment in our area. Additionally, we have compared data from the first and last years of our campaign examining the future plans of existing industry.
Future Plans of Existing Industry in the Iowa City Area
FY2011 Annual Expenditures
FY2007
FY2011
Plans to expand in the next three years
67%
72%
Plans to introduce new products and services in the next two years
82%
89%
Plans to increase employment
69%
69%
No objections to future growth in the area
73%
82%
Community infrastructure has been adequate for their growth
80%
96%
Data provided from annual company interviews with primary sector clients
CATEGORY
AMOUNT
PERCENTAGE
Food
$18.5 million
12.5%
Housing
$48.3 million
32.5%
$5 million
3.4%
$26.1 million
17.6%
Healthcare
$9.5 million
6.4%
Entertainment
$8.6 million
5.8%
Personal Insurance & Pensions
$17.2 million
11.6%
Cash Contributions
$5.3 million
3.6%
Personal Care/Education/ Miscellaneous
$9.7 million
6.6%
Apparel and Services Transportation
Indirect jobs and expenditures analysis provided by Chmura Economics and Analytics
The 34 projects and 3,114 new and retained jobs have provided our area economy such a significant number of payroll, tax and business-to-business expenditures that an additional 2,197 jobs have been created/ supported in this market. As noted in the FY2011 Annual Expenditures table, employment created directly or indirectly by ICAD Group clients is providing more than $148 million in annual expenditures to our market. Not only do these expenditures provide revenue for our private sector businesses, our cities, counties and state receive significant tax revenue from property and sales taxes. This past year alone, nearly $3.5 million in sales taxes went to state, county and community governments in our market.
Economic Growth in the Iowa City Area Working with the University of Northern Iowa’s Institute for Decision Making this past year, ICAD Group compiled a report examining economic growth and stability within the ICAD Group service territory since 2002. This report provides our board, investors and the community an accurate representation of economic development impact and market growth during the past nine years. Additionally, this report serves as a benchmark to gauge the effect of future economic development activity.
Among the major findings (2007–2011): UÊ
iÀV > ÊÌ>Ý>L iÊÛ> Õ>tion is more than $2.4 billion, a 22.6 percent increase from 2007 to 2011
UÊ
,ià `i Ì > ÊÌ>Ý>L iÊÛ> Õ>Ì Ê is more than $7.6 billion, a 22 percent increase from 2007 to 2011
UÊ
/ Ì> Ê`i« Ã ÌÃÊ >ÛiÊ VÀi>Ãi`Ê $1.5 billion, or 64 percent, in the past five years among the 31 banks/credit unions in the ICAD Group service territory
UÊ
*ÕL VÊÃV Êi À i ÌÊ >ÃÊ increased by 1,030 students, or 5.8 percent, since 2007
During our five year campaign, over 80 ICAD Group clients have contributed more than $3.5 billion in payroll to nearly 14,000 employees. The 2011 Annual Report of the Iowa City Area Development Group | 3
No. 13 “Best Cities for Business and Careers” (smaller metros), Forbes, July 2011
EXISTING BUSINESS REPRESENTS MORE THAN
70 percent of the growth of an area economy. ICAD Group focuses time and resources on growing our strongest industry sectors. Using survey tools, such as our annual existing industry survey, we measure business value, growth, risk and satisfaction. With this information, we direct efforts to ensure facilities,
infrastructure, business policies and workforce are addressed to serve existing industry needs. During this past year, we worked several existing industry projects, including CIVCO, Green Team Technologies, Integrated DNA Technologies, Innovative Software Engineering, and Meta Communications. These projects included expansion of operations,
EXISTING INDUST TARGETED BUSIN RECRUITMENT
4 | The 2011 Annual Report of the Iowa City Area Development Group
ICAD Group celebrated an internal project years in the making with the certification of two shovel ready sites in Tipton and on the University of Iowa Research Park. The Shovel Ready Iowa program dates back to discovery meetings in 2008 and culminated with an appearance by Governor Terry Branstad and other local officials at the first Shovel Ready Certification ceremony in Tipton. Sites that receive this certification must meet or exceed multiple criteria and standards regarding the development potential for commercial or industrial facilities in one of five certification categories: General Manufacturing, Light Industrial, Rural Industrial, Smart Office or Technology Center. These sites are being marketed to national site location consultants through newly created marketing materials and a new website at shovelreadyiowa.com. ICAD Group is presently working with the state of Iowa on transforming this program into a statewide application.
new business development and new workforce recruitment. Meeting with over 80 clients this year, we were able to talk faceto-face with many of the owners, CEOs and decision makers who oversee operations of major employers in our service territory. Besides our visits with key decision makers at the local level, we conducted a dozen out-of-state
TRY & ESS
headquarter visits to companies such as Whirlpool, Procter & Gamble, Acciona, Pearson, Vangent, and EdLink. These meetings and surveys allow ICAD Group to accurately measure the current business climate and enables our organization to focus proactive marketing efforts to site location consultants and targeted industries as we diversify the area’s growing economy. Using the most recent industry research, as well as a local industry consortium, we have identified strategic targets for business recruitment including renewable energy (wind), life sciences (medical devices and technology), educational testing and support services, IT (data centers, software, consulting), consumer products and computer simulation/modeling. Maintaining relationships with companies and consultants around the globe is key in business recruitment. Targeted recruitment trips were coordinated with the Iowa
Department of Economic Development and Priority One. Representatives attended the European Wind Energy Association Conference and the American Wind Energy Association Conference. ICAD Group attended two consultant roundtables and met with sixteen national consultants throughout the United States. Additionally, communication with another six consultants was arranged via trips to Iowa and at state conferences. In spite of slower than normal project activity this past year, our efforts still resulted in three new businesses deciding to start operations in the Iowa City area. All three have connections to renewable energy and “green” building. PNE WIND USA, Zero Energy Systems and the North American Ductile Iron Company were all announced this fiscal year.
The 2011 Annual Report of the Iowa City Area Development Group | 5
Employers in biotechology, renewable energy, information technology and innovation‐based sectors are projecting the need for more than 11,000 new and replacement workers in the coming years, and many of these positions require specific educational backgrounds and skill sets. Skills 2014 Report
WORKFORCE DEVELOPMENT ICAD GROUP TAKES A MULTI-PRONGED
and links are provided, organized by categories such as housing, schools, and community amenities, as well as short videos that can be seen on a laptop or smart phone. Over 100 packets were distributed last year and the website is averaging low bounce rates and high time-on-site statistics. Currently, area employers are developing their own landing pages to provide candidates quick links to careers and information on workplace culture.
The number one issue facing our clients is the ability to attract and retain a quality workforce. When recruiting employees from outside of the area, there are often misperceptions or lack of knowledge about life in Iowa. One of the most successful programs implemented just after last year’s annual meeting was creating a website to accompany the Pick Your Pace new hire/candidate information kit. The PYP packet and website help build awareness and answer questions candidates often have about the area. Information
Workforce programming for clients and investors in FY2011 also included providing career guidance for former Budcat employees as well as consultative services for GoDaddy, Yellowbook, CIVCO, Green Team Technologies and Innovative Software Engineering. ICAD Group connected 40 area supervisors with ACT’s research department to help ACT collect data for a new workforce tool.
approach to workforce development services provided for clients, investors and communities. Based on research through annual existing industry reports, conferences, professional organizations, and regional skills analyses, proactive, strategic programming is focused in five areas: Guidance, Retention, Education, Attraction and Training.
6 | The 2011 Annual Report of the Iowa City Area Development Group
ICAD Group continues to work to address long term workforce de-
Many of the videos on the Pick Your Pace website include comments from workers who have recently moved to the area.
velopment issues through partnerships with the University of Iowa, Kirkwood Community College, local school districts and others. Many of our educational partnerships include work with both career centers and alumni groups. For example, ICAD Group capitalizes on its relationship with the University of Iowa Alumni Association to connect alums with community members and businesses to aid in recruitment and retention. Partnership programming also includes work with Iowa Workforce Development, hosting monthly HR advisory meetings and HR roundtables, sending weekly HR e-mails, developing laborshed and salary reports, and promoting Iowa’s National Career Readiness Certificate and regional skills reports such as Skills 2014. The Skills 2014 report was produced cooperatively by Kirkwood Community College, ICAD Group and its Corridor Alliance partners
this year. It focuses on the projected workforce demand in the sevencounty region Kirkwood serves, through 2014. Based on the Skills 2014 report, the Cedar Rapids/ Iowa City region continues to experience growth in biotechology, renewable energy, information technology and innovation based sectors. Employers are projecting more than 11,000 new and replacement workers will be needed in the coming years and many of these positions require specific educational backgrounds and skill sets. ICAD Group and its Corridor Alliance partners continue to work with employers and educators to address skill gaps, develop training programs, and recruit workforce. In addition to the Skills 2014 report, ICAD Group introduced the Strategic Skills Alignment report, commissioned by ACT. The purpose of the Strategic Skills Alignment report is to support the regional workforce and economic development planning process. The report provides
a summary of the current and projected industry and occupation employment mix for the region as well as skills required for in-demand occupations and training capacity of the region to meet current and prospective employer needs. Lastly, ICAD Group regularly works to educate clients and other employers on recruitment and retention issues. This past year topics such as H1B Visas and social media in the workplace were discussed during a lunch and learn series. Also, with more than 3,000 military members returning to the state in 2011, ICAD Group continued its “Military to Civilian Transition” programming and hosted a four part webinar series that was available statewide. The webinar, led by Lisa Rosser of The Value of a Veteran, helped local employers, business owners, hiring managers and HR directors learn valuable skills such as translating military resumes and where to post positions to reach veterans.
The 2011 Annual Report of the Iowa City Area Development Group | 7
Iowa City was ranked #9 in the Milken Institute’s Best Performing Cities Index “Where America’s Jobs are Created and Sustained,” October 2010
AS NOTED IN LAST YEAR’S REPORT, ICAD GROUP IS dedicated to creating a culture of innovation through connections, spaces, and programming. The area is rich with examples of entrepreneurial start-ups that have grown into major employers, including Integrated DNA Technologies, ACT, and National Computer Systems, now known as Pearson
Education. Using these companies as inspiration, we are working to transform this region into an epicenter of innovation where people, ideas and investment converge to create companies and jobs. ICAD Group continues to support our regional partners, including new start-ups such as Seed Here and established organizations like the Entrepreneurial Development
ENTREPRENEURIAL INNOVATION DEVEL 8 | The 2011 Annual Report of the Iowa City Area Development Group
Press-Citizen / Matthew Holst
Center in Cedar Rapids. This support directly helps emerging companies by providing networking opportunities, assistance with business plans and planning, as well as connections to future investors and business partners. Over the past year, we also worked with the Technology Association of Iowa, as well as COWRKIC, the Mission Creek Festival and Cramer IT, to host entrepreneurial targeted
&
LOPMENT
events such as Tech Brews, Jellys, Meetups, and Pitch & Grow. Planning is actively underway to see that StartUp Weekend, BarCamp, and TEDx Iowa City become annual events as well. Much of our time was spent completing research for a permanent coworking space in the Iowa City area; the first coworking space in the nation to be operated by an economic development group. Coworking facilities around the nation were surveyed, including visits to facilities in Illinois, New York, Nebraska and Texas, to detail best practices and hear firsthand the dos and don’ts of opening and operating a facility. More and more workers identify themselves as mobile and coworking facilities help foster interactions by creating an organic, innovative ecosystem. To date, a business plan has been completed and approved by the ICAD Group board and fundraising continues to support our efforts of opening IQCoLab by year’s end.
The IQCoLab is part of a larger concept, referred to as IQ, which ICAD Group has been developing over the past year. IQ is a movement, or quest, dedicated to furthering innovation in the region. The State of Iowa has provided entrepreneurial development funding to further enhance, evolve and promote the IQ concept. Ultimately, the goal is to see IQ on events and spaces statewide. Like “Intel Inside” or the Good Housekeeping seal, the IQ brand will be made available to any activity, space, or function that creates an enriching, interactive experience dedicated to innovation.
The 2011 Annual Report of the Iowa City Area Development Group | 9
COMMUNICATIONS AND OUR WORK WITH
regional and statewide partners touch all ICAD Group core programming areas. Often times clients, the community and investors first learn of ICAD Group activity through our e-mails, newsletters, or social media posts. Additionally, materials must be consistent with the vision of the organization when we share our ideas with elected officials,
consultants, clients, and partners on the local and state level. ICAD Group dedicates considerable effort to providing proactive and award-winning communications through print, web and social media. These multiple platforms allow us to target project announcements, marketing, event reminders, and organizational news to the proper audiences. This past year, ICAD Group communication pieces re-
COMMUNICAT & PARTNERSH 10 | The 2011 Annual Report of the Iowa City Area Development Group
During this fiscal year, ICAD Group updated icadgroup.com and tech-corridor.com, and launched shovelreadyiowa.com, techcorridorwind.com, and pickyourpace.com. ICAD Group also maintains profiles on Facebook, YouTube, Twitter and LinkedIn. ICAD Group Social Media Statistics (July 1, 2010 – June 30, 2011) 35,560 Facebook page post views 16,374 absolute unique visitors to icadgroup.com 36 countries/territories visited icadgroup.com Pageviews up 9%, visits up 18% and bounce rates improved 28% comparing last six months to first six months of pickyourpace.com Average over 100 views a month on ICAD Group’s YouTube Channel
ceived recognition and awards from the American Advertising Federation, the International Economic Development Council, and the Iowa Motion Picture Association. Outreach to elected officials in our investor communities is ongoing and includes a revamped Small Cities Meeting series, now known as our Elected Officials Breakfast. These meetings provide community specific economic and workforce
TIONS HIPS
development updates and allow our elected officials to share issues among peers. Additionally, we present results and updates each year to economic development boards, county supervisors and city councils throughout our service territory. ICAD Group has endeavored to build attendance for its Investor Council Meetings and reached record attendance this past year. These breakfasts focused on pressing economic development issues including innovation; public sector investment and infrastructure; and the importance of Science, Technology, Engineering and Math (STEM) in education and workforce. ICAD Group continues to play a lead role in the development of the Corridor Business Alliance’s regional economic development strategic plan. Data for the plan was collected via committee task forces, a regional summit, input from county and city leadership, and a targeted committee focused
on developing the actionable items. The Regional Strategic Plan, which focuses on land use, transportation, capital formation and workforce development, was developed in partnership with East Central Iowa Council on Governments (ECICOG), Priority One, and the Entrepreneurial Development Center. The State of Iowa’s Department of Economic Development granted our area a new regional marketing designation with the creation of the seven county Corridor Alliance. Building on the relationship between ICAD Group and Priority One and the Technology Corridor, this new territory includes Benton, Cedar, Iowa, Johnson, Jones, Linn, and Washington counties. In developing this new territory, the alliance has sponsored regional workforce development programming, created a new protocol for lead generation, and will revise the Tech Corridor website and marketing materials.
The 2011 Annual Report of the Iowa City Area Development Group | 11
Case Study: PNE WIND USA The state of Iowa continues to set the pace in terms of generation and use of energy derived from wind. Wind farms are becoming common place in Western and Northern Iowa, but the Eastern third of the state has yet to see its share. Infrastructure is prevalent, but a developer hasn’t researched or committed significant investment to the area. That was the case until PNE WIND USA, Inc. starting researching Johnson County. ICAD Group had met with PNE WIND several times during conferences and trade shows around the country. The company, based in Chicago, was interested in the potential of our area not only as a site for energy production, but also for locating a Midwestern operations and maintenance center to support their US wind projects.
The Opportunity PNE WIND USA, Inc. develops and constructs wind power projects in North America. As part of the German PNE WIND AG group its core competencies lie in developing, planning, financing and installing wind power projects. PNE WIND AG group has developed close to 100 wind farms and PNE WIND USA currently has 28 projects in different phases of development throughout the United States, including Iowa. There were many moving parts connected to the Solon wind farm project, among them the need for Johnson County to adopt wind farms into its land use practices. ICAD Group served as an intermediary with both groups, helping provide guidance to Johnson County supervisors on the wind energy industry and helping PNE WIND navigate the processes and procedures of our county.
Additionally, ICAD Group showcased many of the educational and workforce advantages of our area, including training programs available with Kirkwood Community College.
The Outcome Officials from PNE WIND announced plans to locate an operations and maintenance center in Solon. This new facility would support the planned 3,000 acre, 30-megawatt wind farm, which would include 10 to 20 wind turbines. Keith Kurtz, a developer for PNE WIND, said the facility would initially hire operations and maintenance staff. “We project hiring at least five staff to start,” said Kurtz. “With training available through Kirkwood Community College, we’re confident we can identify local candidates who can help PNE grow in this area.”
12 | The 2011 Annual Report of the Iowa City Area Development Group
Hiring would begin in 2012 and starting salaries would be above the county average. PNE WIND is currently negotiating supply opportunities for its energy and plans to distribute power locally. Additionally, PNE WIND is also exploring the installation of Acciona and Clipper windturbines which are manufactured in Eastern Iowa. Not only will the area benefit from the jobs, revenue and tax base PNE WIND’s projects will create, but having reputable developers like this significantly helps our ability to retain and attract more manufacturing jobs in this sector. ICAD Group will continue to work with PNE WIND as they establish operations and recruit workforce.
Case Study: CIVCO Medical Solutions 2011 was becoming one of the biggest years in the history of CIVCO Medical Solutions. Among the challenges of planning its 30th anniversary and launching a new corporate website, this world leader in image guided medical devices also needed to expand its physical footprint in the region. With manufacturing operations firmly rooted in the Kalona community, CIVCO wanted to select a new location for their expanding professional staff. They wanted to be close to Kalona, but find a location well suited to attracting talent unfamiliar with the area. They selected a site in Coralville, Iowa.
M E D I C A L
S O L U T I O N S
Through annual existing industry interviews and headquarter visits, ICAD Group provided guidance and information to executives regarding their future plans and has been handson providing assistance in public relations and workforce development for the expansion.
The Opportunity CIVCO designs, manufactures and markets innovative products for the medical imaging and radiation oncology fields. The Multi-Modality Imaging unit designs and manufactures accessories for use in diagnostic and therapeutic imaging and interventional procedures, with a strong focus on ultrasound. CIVCO’s Radiation Oncology division designs and manufactures products for radiation oncology treatment, including basic patient positioning equipment as well as high technology robotic motion management. After starting in a Kalona storefront, CIVCO moved to its current location in 1992 and expanded the facility twice, growing from 30 to over 180 employees. The company has locations in Kalona and Orange City, Iowa, as well as Reeuwijk, the Netherlands. Its products are sold in more than 80 countries worldwide.
As recent operations continued to expand, CIVCO sought information and locations for its future plans. Scott Rude, CIVCO’s VP of Human Resources credits their relationship with ICAD Group for helping to narrow locations and opening conversations with area communities. “As CIVCO contemplated expansion to new facilities in the area, ICAD Group was an effective resource and advisor in our location search and a key partner in working with local officials.”
The Outcome CIVCO broke ground on April 13, 2011, on a new $1.1 million, 11,400 square foot office in Coralville. The company plans to employ more than 50 associates at this new location in positions such as product sales, marketing, engineering and corporate leadership.
The new office will allow for CIVCO to renovate its existing manufacturing and distribution facility in Kalona, and ICAD Group is ready to assist CIVCO and the community of Kalona with this next phase. “ICAD Group is a critical resource for area businesses. They provide actionable information and make essential connections to area leaders and services,” added Rude. The future looks bright for CIVCO, Kalona and Coralville. Our region benefits from a balanced portfolio of companies, both small and large, that embrace creativity and innovation. ICAD Group continues to work with CIVCO’s workforce and communications divisions, helping the company publicize its broader presence in the area.
The 2011 Annual Report of the Iowa City Area Development Group | 13
Case Study: Zero Energy Systems Any other business would have given up, but Scott Long was determined to open a manufacturing facility in or around Iowa City. Even with backing from the Small Business Administration and a proven 14 year track record for his business technology, he couldn’t get the support he needed to establish operations. To add to his challenges, a poor national economy was limiting passive capital resources, which in turn was hurting partnership structures and lending support for startups. ICAD Group worked with Scott Long and his company Zero Energy Systems through the entire process. The potential for a new area employer was there, one that could create real jobs, but the story had to be told many times. Business plans were fined tuned and multiple applications were completed. Meetings were arranged with lenders, along with community and state economic development leaders. Years of dead ends and roadblocks finally paid off in 2011 when a private financing package through outside investment and MidWestOne Bank was structured. This allowed Zero Energy Systems to then leverage TIF funding from the City of Coralville and apply to the State of Iowa for economic development assistance.
The Opportunity Zero Energy Systems, a developer of proprietary building systems for commercial and residential concrete construction, recently completed development of an advanced computer-automated production system. This system allows for high volume production of smaller, more detailed components. The benefits of this product were numerous, including energy efficiency, speed, and resistance to natural disasters such as flooding and fires. ZES was ready to compete in areas where insulated concrete wall panels have not been present, thus dramatically expanding market share. Applications could be realized nationwide, including governmental, retail, residential, storage and cold storage, schools, hospitals and churches.
But, establishing a primary manufacturing facility in Iowa was practically impossible. Scott Long came to ICAD Group with specific frustrations: there was lack of venture capital resources in the state, there was uncertainty of market demand and a lack of familiarity of the product in local markets.
The Outcome
Knowing that every project needs a certain amount of time and attention, ICAD Group worked strategically, first helping ZES get its story in front of the local business community and potential investors. Next, meetings were set up with government leaders locally and from the State of Iowa. It was certain that ZES could get off the ground; the trick was putting all the pieces together in the right order.
“This has been a lengthy process and we certainly appreciate all of the help provided by the state, the city of Coralville and the Iowa City Area Development Group,” said Scott Long, ZES CEO. “This is an area dedicated to innovation and helping entrepreneurs, and we are excited to start operations in Coralville.”
14 | The 2011 Annual Report of the Iowa City Area Development Group
ZES received state funding to assist with the proposed construction of a 45,000 square foot manufacturing facility in the Westcor development in Coralville. The facility will be the first of its kind in the U.S. and will take approximately 12 months to complete.
The project represents $7.5 million in capital investment and will create 25 jobs over the next three years, with a projected payroll threshold of 130% of Johnson County’s average private sector wage. Facility design and planning will begin in the fourth quarter of 2011 and construction will start in March 2012.
Case Study: Innovative Software Engineering Company growth and expansion is not without its set of challenges. Once a company hits a certain rhythm with operations and customer interaction, the need for more employees, more marketing, and more human resources can be daunting. On top of that, plans to expand operations and physical space bring additional hurdles. Innovative Software Engineering of Coralville experienced many of these growing pains during the past six to twelve months. On the heels of launching a brand new product, they simultaneously were planning a building project and were hiring highly targeted, specifically skilled positions throughout the company. Ongoing communication between ICAD Group and members of the ISE team helped connect the right individuals to the right information for workforce development, funding and public relations.
The Opportunity Innovative Software Engineering is a leading full-service software development and systems integration firm providing Business Strategy, Program Management, Systems Engineering, Software Development and Quality Assurance services. ISE grew from its first location in the University of Iowa Technology Innovation Center to a larger space on the UI Research Campus. As the business continued to grow, demands within its main division and its new Fleet Services division prompted a search for bigger space and more employees. ISE needed space where teams could work independently to develop solutions for John Deere or Qualcomm, or help tackle safety and compliance demands for commercial fleets throughout North America.
Regular attendance at ICAD Group workforce and investor functions provided both the ISE company president and controller information on new hiring strategies, how to use disaster recovery bonds for business development, and developing social media profiles for public relations. “Attending ICAD Group events and receiving weekly e-mails and updates provides information we can use,” said Deb Droll, ISE Controller. “We’re appreciative of their expertise.”
The Outcome These functions, combined with discussions with the city of Coralville, ultimately led to the groundbreaking on a new, 11,000 square foot facility, double the size of ISE’s former offices in the University of Iowa Research Park.
“Besides making us aware of the Midwest Disaster Recovery Bonds, which were used to assist in financing our recent expansion, ICAD Group has also provided us with very important public relations and workforce development assistance that is helping us with our growing workforce demands,” said Hass Machlab, President & CEO of ISE. ICAD Group continues to work with ISE on its workforce development strategy. New tools, such as the Pick Your Pace website, are being utilized to help show candidates unfamiliar with the area what it is like to live and work in the Iowa City area. ISE currently employs 30 associates and continues to actively hire for its new Coralville office.
The 2011 Annual Report of the Iowa City Area Development Group | 15
Iowa City Area Development Group Staff Our mission and vision are accomplished thanks to the leadership of a volunteer board of directors and a team of five economic development professionals.
Joe Raso President
FY2011 Financial Report Funding for our work primarily comes from private and public investments, grants, event revenue, and in-kind support. At the close of FY2011, total income was favorable to budget thanks in large part to grants and reimbursements from the state and our partners. Still, private and public sector investments came in lower than budgeted, and ICAD Group realized all investment pledges not paid over the life of the “Creating Advantage | Investing for Results Campaign” in this fiscal year. Revenue for FY2011 was $783,732, up $4,893 from the previous year. Total expenses for the year were $797,753. Resource allocation this year was greater for Existing Business Retention and Expansion as well as Entrepreneurial Development. Expenses were lower in Business Recruitment and remaining core areas were roughly equal to last year. ICAD Group dedicated additional resources this fiscal year to upgrades in computer software and equipment and multiple industry research projects. Savings were gained primarily in reduced travel and partner support for the shovel ready sites program.
Sheri Jelinek Executive Assistant
FY2011 ICAD Group Investment in Economic Development Existing Business Retention and Expansion $147,550 (19%) Business Recruitment – $127,343 (16%)
Mark Nolte Business Development Director
Entrepreneurial Development and Creating a Culture of Innovation – $85,614 (11%) Workforce Business Services $137,282 (17%)
DaLayne Williamson Workforce Business Services Director
Eric Hanson Communications Director 16 | The 2011 Annual Report of the Iowa City Area Development Group
Communications and Partnerships $138,839 (17%)
Administration – $161,125 (20%)
FY2011 Investors A M Management A W Welt Ambrisco Insurance Acciona Windpower NA Acme Electric Company ACT, Inc. AdPro Design Group AEGON USA Aero Rental
Clear Channel – KKRQ & KXIC
Holiday Inn Hotel & Conference Center
Mechanical Contractors of Iowa
Cook Appraisal
Hospers & Brother Printers
Mediacom
Coral Ridge Mall Corridor Business Journal CRANDIC Railway Creative Management dba McDonald’s Dream Catcher
Mercer Administration
Shive-Hattery Shoemaker & Haaland Professional Engineers
Mercy Iowa City
Shuttleworth & Ingersol PLC
Merit Construction Company
Integrated DNA Technologies
Skog Development/Town Square Development
Merit Electric Ltd.
SourceMedia Group
Iowa Book LLC
MidAmerican Energy MidWestOne Bank
South Slope Cooperative Communications Company
H R Green Inc. Innovative Software Engineering
Alliant Energy
The Eastern Iowa Airport
Alpla of Iowa
Iowa City Area Chamber of Commerce
Economy Advertising aka Bankers Advertising/TruArt Color Graphics
Iowa City/Coralville Convention & Visitors Bureau
MMS Consultants
Iowa City Landscaping
Neumann Monson PC
Story Construction Company
Johnson County Board of Supervisors
New Ventures (Eastern Iowa Light & Power Cooperative)
Tall Grass Business Resources (formerly Frohwein Office Plus)
OPN Architects Inc.
Tipton Economic Development Corporation
Amana Society, Inc. Ambrose Development Arlington Development Steve Atkins
Executive Coaching/Rod Wittich
Bachmeier Interiors
Ewers Men’s Store
Beisser Lumber Company
Farmers & Merchants Savings Bank
Benson & Hepker Design
First American Bank
King’s Material, Inc.
First Trust & Savings Bank
Kirkwood Community College
Bradley & Riley PC
Fleck Sales/Miller Distributing
Knutson Construction Services
Brandt Heating & Air Conditioning
Freedom Security Bank
John & Audrey Kofoed
Build to Suit Ltd.
GEICO
Carlson, Hartsock & Guither PLC
Graham Packaging
KZIA Z102.9 / 1600 KGYM
Carousel Motors
Hawkeye Harley Davidson
David Biancuzzo
Central Iowa Power Cooperative (CIPCO)
Hall & Hall Engineers
Hawkeye Ready Mix
Circle Computer Resources (formerly Cramer IT Consulting)
Hawkeye Title & Settlement Services LLC
City Carton Recycling City of Coralville
Hayek, Brown, Moreland & Smith LLP
City of Iowa City
Henry Russell Bruce
City of Kalona
Herteen & Stocker Jewelers
City of North Liberty
Kelly Heating Service Keystone IT, Inc.
Miron Construction
Myriad Developers LC
Pearson Peterson Contractors, Inc. Phelan, Tucker, Mullen, Walker, Tucker & Gelman LLP PIP Printing & Document Services
Spielman’s Event Services
Towncrest Pharmacy Toyota-Scion of Iowa City TrueNorth Companies LC University of Iowa Research Foundation
L L Pelling
Plumbers Supply Company
Latta, Harris, Hanon & Penningroth LLP
Prime Ventures Development, Inc.
Leepfrog Technologies
Procter & Gamble/Oral B Laboratories
Lenoch & Cilek Ace Hardware
Pulkrabek Law Office
Lensing Funeral & Cremation Service
Quad City International Airport
Lepic-Kroeger Realtors
River City Radio - KCJJ
Liberty Bank
Roberts Dairy Company
Liberty Communications
Rockwell Collins
Vetter’s Inc. dba Culligan Water Technologies
Liberty Growth
Rohrbach Associates PC
Wells Fargo Bank
University of Iowa Research Park University of Iowa Community Credit Union University of Iowa Hospitals & Clinics Unzeitig Construction US Bank Van Meter Industrial, Inc.
City of Solon
Hills Bank & Trust Company
Linn County REC
RSM McGladrey, Inc.
West Bank
City of Tiffin
HJR Financial Group
MainStreet Partners
Ryan Companies US
West Liberty State Bank
City of West Branch
Hodge Construction Company
McComas-Lacina Construction
Schiller Solutions LLC
West Music Company
Holiday Inn Express Hotel & Suites
Selzer Werderitsch Associates
Wolf Construction
McCrossen Consulting Meardon, Sueppel & Downer PLC
Sheraton Iowa City Hotel/hotelVetro
City of West Liberty CIVCO Medical Instruments
The 2011 Annual Report of the Iowa City Area Development Group | 17
FY2011 board of directors Dee Baird*, Interim President Cedar Rapids Area Chamber of Commerce and President Priority One Tim Bradshaw, Airport Director The Eastern Iowa Airport David Bywater, Vice President/COO Economy Advertising Jordan Cohen, Vice President Research and Economic Development University of Iowa Kevin Digmann, Project Manager Hodge Construction Company Jeffrey A. Disterhoft, President/CEO University of Iowa Community Credit Union Scott Fisher, ICAD Group Chair President, McCrossen Consulting LLC Bart Floyd, President US Bank
Iowa City Area Development Group 325 East Washington Street Suite 101 Iowa City, Iowa 52240 (319) 354-3939 | Fax (319) 338-9958
www.iowacityareadevelopment.com
Report prepared by Eric Hanson Report design by Benson & Hepker Design Strategic Doing used with permission from the Purdue Center for Regional Development www.purdue.edu/strategicdoing
Tom Gelman, Partner Phelan, Tucker, Mullen, Walker, Tucker & Gelman LLP Tom Goedken, Vice President ACT, Inc. Pat Harney**, Supervisor Johnson County Board of Supervisors Matt Hayek, Mayor City of Iowa City Kelly Hayworth, City Administrator City of Coralville
Ryan Heiar, City Administrator City of North Liberty Dale Helling***, Interim City Manager City of Iowa City Tom Hobson, Senior Manager of Government Relations Rockwell Collins George Hollins, University Business Manager University of Iowa Gary Hood, General Manager MidAmerican Energy Kim Johnson*, Executive Vice President, Continuing Education & Training Services Kirkwood Community College Kenneth Kates, Chief Executive Officer University of Iowa Hospitals & Clinics Brad Langguth, Vice President Hills Bank & Trust Company Hass Machlab, President Innovative Software Engineering Tom Markus***, City Manager City of Iowa City Jerry Melick, Manager Liberty Communications Kevin Monson, President Neumann Monson PC Architects Chuck Peters, ICAD Group Chair-Elect President & COO, SourceMedia Group
Nancy Quellhorst, President/CEO Iowa City Area Chamber of Commerce Ronald R. Reed, ICAD Group Past Chair President/CEO, Mercy Iowa City Janelle Rettig**, Supervisor Johnson County Board of Supervisors Lynn Rowat, Market President West Bank Jim Schreck, Technical Services Leader Procter & Gamble/ Oral-B Laboratories Damon Terrill, Senior Vice President & General Council, International Legal & Regulatory Affairs Integrated DNA Technologies Madeline Windauer, Director of Tax RSM McGladrey Pamela York, Executive Director University of Iowa Research Foundation IOWA Centers for Enterprise *Kim Johnson joined the ICAD Group board in October 2010, replacing Dee Baird **Janelle Rettig joined the ICAD Group board in January 2011, replacing Pat Harney ***Tom Markus joined the ICAD Group board in January 2011, replacing Dale Helling