Iowa emerges as key player in aerospace

When aerospace and defense firms look beyond traditional hubs, Iowa is increasingly on the shortlist. The state exports nearly $1 billion in aviation parts and electronics to more than 125 countries and ranks third in concentration of mechanical engineers, third for manufacturing workers, and second for the share of its workforce in STEM occupations.

A sustained talent pipeline of apprenticeships, community colleges, and research universities underpins that strength. The aerospace and defense industry in Iowa employs 19,286 people at an average wage of $109,596. Iowa also makes a strong cost case. The corporate tax rate is set to be reduced to a target of 5.5%, industrial construction costs run roughly 18% below the national average, and corporate rental rates are about 15% lower.

Companies can benefit from a sales and use tax exemption on digital goods and services purchased for commercial use, a Research and Development Tax Credit Program, and the Industrial New Jobs Training (260E) Program.

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