THURSDAY, JULY 2, 2020 | IN THIS ISSUE

• Iowa leaders hail USMCA as trade deal goes into effect
• Steven Bradford elected ABI chair
• Iowa economy inches closer to growth-neutral in June
• Kirkwood creates support program for fall students
• Initial unemployment claims were flat last week
• Corridor events, KCRG-TV9 headlines and First Alert Forecast

Ed. note: The CBJ will be closed and there will be no newsletters tomorrow as our staff breaks for the Fourth of July. We'll be back on Monday. Have a safe and fun holiday weekend!
Iowa leaders hail USMCA as trade deal goes into effect
Iowa leaders lauded the start of the U.S.-Mexico-Canada trade agreement (USMCA) on Wednesday, saying it will help the state’s farmers and small businesses grow through exports in the years to come.

Ratified in January, the USMCA replaces 1994’s North American Free Trade Agreement (NAFTA), and was one of President Donald Trump’s biggest policy priorities coming into office. The completed deal promises to open food and agricultural markets between the three countries, improve IP and labor protections, and add regulatory provisions for biotechnologies, including gene editing.

“Canada and Mexico are our two largest trading partners with $6.6 billion in exports in 2018 alone. I look forward to USMCA opening new markets for high-quality Iowa exports, increasing wages, jobs, and economic activity,” Gov. Kim Reynolds said in a statement. “With USMCA officially in force, our state and the entire nation will reap the benefits in the years to come.”

Among the biggest benefits for Iowa producers could be the USMCA’s expansion of chicken, egg and turkey exports. Iowa leads the nation in egg production , producing around 16.5 billion eggs per year, and ranks No. 7 for turkey production. The industries directly employ almost 12,000 people in total, according to the Iowa Area Development Group.

A broad array of Iowa manufacturers and farmers will also benefit from the continued free trade agreement, however. The state exported $1.7 billion in machinery, $1.3 billion in processed foods, $1.1 billion in ag products and $867 million in chemicals to Mexico and Canada alone in 2018, according to a U.S. Trade Representative analysis .

“Today, Iowa farmers gain greater access to our two largest export markets: Canada and Mexico,” Iowa Ag Secretary Mike Naig said in a statement. “Because of the Trump administration’s efforts to renegotiate unbalanced trade agreements, our producers will see significant improvements to rules of origin and intellectual property protections, and new opportunities with expanded market access. USMCA’s entry into force marks the beginning of a welcome new chapter for North American trade.”

The new trade deal is projected to increase annual U.S. exports to Canada and Mexico by a combined $33 billion above the current NAFTA baseline, and increase U.S. GDP by $68 billion, according to an analysis by the American Trucking Associations.
Steven Bradford elected ABI chair
Steven Bradford of HNI Corporation in Muscatine, has been elected chair of the Iowa Association of Business and Industry board of directors for its 2020 fiscal year.
 
Mr. Bradford is senior vice president, general counsel and corporate secretary of HNI Corp., a leading manufacturer of workplace furnishings and building products. He is active on numerous boards and commissions in Iowa and nationally, including the Iowa Access to Justice Commission and the American Law Institute.
 
“Steven Bradford’s strong, thoughtful leadership ensures ABI will have a successful year,” ABI President Mike Ralston said in a statement. “His focus on principled business decisions and what is best for Iowa will mean terrific things for ABI and for our state.”
 
The 2020 fiscal year began Wednesday. As chair, Mr. Bradford is responsible for leading the board in developing ABI’s strategic goals and objectives, implementing them and communicating ABI’s mission to Iowans.
 
Additional officers elected included:

  • Jack Hasken (Jackson Manufacturing, Maquoketa) – Vice Chair
  • Kim Augspurger (Saxton, Des Moines) – Treasurer
  • Richard Phelan (LyondellBasell, Clinton) – Secretary
  • Cindy Dietz (Collins Aerospace, Cedar Rapids) – Immediate Past Chair
 
Executive committee members were also elected, including returning members Andy Bramstedt (SSAB, Muscatine), Peter Voorhees (Standard Golf, Cedar Falls) and Bruce Tamisiea (Tecton Industries, Spencer). New executive committee members are Casey Cason (Wells Fargo, Des Moines) and Kellan Longenecker (General Mills, Carlisle).
 
The ABI Executive Committee is comprised of business leaders from across Iowa who provide leadership and direction for the board of directors and ABI.
 
Newly elected board members include:

  • Tim Coonan (Davis Brown Law Firm, Des Moines)
  • Robert Feeney (Atlantic Bottling Company, Des Moines)
  • Karen Harrison (Hard Rock Hotel and Casino, Sioux City)
  • Adam Steen (Syverson Strege, West Des Moines)
 
Jenny Steffensmeier (Steffensmeier Welding, Pilot Grove) was selected by the 2019-20 Leadership Iowa class to serve as an honorary board representative.

IMAGE: Steven Bradford. CREDIT ABI
Iowa economy inches closer to neutral growth in June
Iowa’s economy continued to slump in June but showed slight improvement, creeping closer to a neutral growth index, according to Creighton University's latest Mid-America Business Conditions Index and reported by the Des Moines Business Record.

The index ranges between zero and 100, with 50 being neutral growth, and an index ranking of greater than 50 indicating an expanding economy over the next three to six months. It measures the average of indexes for new orders, production or sales, employment, inventories and delivery lead time.

In Iowa, the index continued to slump below neutral growth in June, but climbed to 47.1, up from 41.9 in June.

"Since the onset of COVID-19, Iowa has lost 161,000 jobs, or approximately 10% of its employment," said Ernie Goss, director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business. "Our surveys point to a flattening of employment with only slight job gains in the months ahead."

In Iowa, the index for new orders was 50.2, production or sales was at 56.1, delivery lead time lagged at 43.2, inventories measured at 50.2, with the employment index at 35.7.

The overall index for the nine-state Midwest region included in the monthly analysis rose into positive territory last month, after three straight months of falling below neutral growth. The index increased to 50.3, up from 43.5 in May, according to Wednesday’s report .

"While the June reading was much higher than I expected, it provides no grounds for celebration," Mr. Goss said in the report. "June’s above growth neutral reading indicates that between May and June, business conditions improved. It will take many months of above 50.0 before the regional economy returns to pre-COVID-19 levels."

Highlights from the June report include:

  • The Business Conditions Index expanded to a reading slightly above growth-neutral.
  • Job losses continued for June with an employment index well below growth-neutral.
  • In terms of hiring for the rest of 2020, 51% expect no changes, 17% anticipate bringing back furloughed workers, 26% expect to bring back furloughed workers and add new workers, and 6% predicted a continuation of layoffs.
  • Regional trade numbers remain near record lows.
Kirkwood creates support program for fall students
Kirkwood Community College has announced a new support program aimed at incoming students that combines grants for students adversely affected by the novel coronavirus with free technology classes.

As part of the program, called Kirkwood Kickstart, the college will offer grants of up to $2,000 from federal CARES Act funds to students financially affected by the COVID-19 pandemic for use toward education-related expenses. According to Financial Aid Director Matt Falduto, the goal is to help ease the burden of monthly expenses so that students can focus on their education.

“Historically, college students face a lot of challenges to earning a degree and financial issues are toward the very top,” Mr. Falduto said in a release. “Many students have had to juggle working with attending classes and completing their schoolwork. Now with COVID-19, a good number of these students have lost their jobs and are having difficulty affording basic necessities. The grant that we are awarding to students will help ease their financial burdens and help them concentrate on their studies.”

Free technology classes for the classroom and workplace will also be offered to those who need them, such as those recently laid off or those looking to learn new skills. Courses will include Computer Basics, Computer Safety, Effective Communication, Effective Online Learning, Virtual Employment, and Resiliency in a Changing World.

“The free Kickstart classes are designed to help people who need to update their technology skills,” said Kim Becicka, Kirkwood’s vice president of continuing education. “We have found that there are many people who don’t have a basic level knowledge when it comes to computers. Whether they plan to use these skills to get a degree, or take them straight to the workforce, with these classes under their belt they will have the tools they need for whatever path they choose.”

Kirkwood officials said last month that they plan to reopen with in-person classes this fall , with an assortment of modifications to reduce COVID-19 transmission risk. The institution will offer online and hybrid learning formats, allowing students to choose the option that best fits them. Class sizes will be smaller for social distancing.

For more information on Kirkwood Kickstart, visit the college’s website .
Initial unemployment claims were flat last week
The number of Iowans filing initial unemployment claims for the week ended June 27 remained essentially flat, while the state’s number of continuing claims continued to ebb from a high point set in May.

Unemployment claims for the week ended June 27 were 8,300, a 1.1% increase over the 8,208 claims filed during the week ended June 20. The week before that, initial claims totaled 9,069, according to data from Iowa Workforce Development (IWD).

The state’s manufacturing sector took the biggest hit last week, accounting for 2,172 claims. Those categorized as self-employed and independent contractors – termed “industry not available” by IWD – filed 1,247 claims, while those in the state’s health care and social assistance sector accounted for 610 claims.

There were 143,488 continuing weekly unemployment claims for the week ended June 27, down from 152,781 the week before, and well below the mark of 178,816 set the week of May 9.

More than $1.1 billion in federal Pandemic Unemployment Compensation benefits have been paid to Iowans since April 4, along with $21.8 million in Pandemic Emergency Unemployment Compensation benefits.

IMAGE: A chart from IWD showing weekly initial unemployment claims in the state (brown line). The darker line represents the 52-week moving average. Note that the most recent week's data is preliminary. CREDIT IWD
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Short Term Event Planner

July 2 
Ignite ICR: The Great Outdoors , by ICR Iowa, noon. Liz Hubing, an avid cyclist, will talk about how she enjoys the local scenery and share her favorite spots to enjoy a drink while taking a break from the trails. Free. To register, visit bit.ly/2YhR8Kh .
 
July 7
Coffee, Calm, and Community , by Iowa City Area Development Group, 10-10:45 a.m., online. These weekly Tuesday coffee meetings will be a time to reflect, share resources and connect with other business and HR leaders. Free. To join the meeting, visit bit.ly/3fsjqsu .

Personal Branding Tips for Entrepreneurs , by Iowa Center for Economic Success, noon-1 p.m., online. Join the discussion on personal branding and your online presence. Free. To register, visit bit.ly/2YXSjyS . 
 
July 8-9
2020 Nonprofit Training Days , by Association for Talent Development-Hawkeye Chapter, 8 a.m.-3 p.m., online. Event includes a keynote address by speaker and author Patti Seda and breakout sessions focusing on skills and strategies to apply in your professional or volunteer positions. Cost: $25. To register, visit bit.ly/2YK71dO .
 
July 9 
Wake Up Marion , by Marion Chamber of Commerce, 8-9 a.m., D-BAT Marion, 1783 Red Fox Way. Get to know the D-BAT Marion team while talking with other Marion Chamber members. Free. To register, visit bit.ly/3dsUvn2 . 
 
Understanding Remote Workers , by Project Management Institute – Eastern Iowa, noon, online. This program on remote workers will be led by Douglas Williams. Free. To register, visit bit.ly/2YG9vIX .
See something we missed?
Send tips, leads,  corrections,  etc. to  news@corridorbusiness.com .
Headlines from KCRG-TV9
These news items are provided by KCRG-TV9  
 
The state is reporting 676 more cases of COVID-19 over the last 24-hours, but no more deaths were reported. As of 10:15 a.m. the state’s data shows a total of 29,966 confirmed COVID-19 cases and 717 COVID-19 related deaths. In total, 316,379 have been tested since the pandemic began. That’s an increase of 7,721 since this time yesterday. According to state data, 310 people have recovered in the last 24 hours as well. That puts the total number of people who have recovered from the virus at 23,757. There are currently 145 patients hospitalized, with 18 having been admitted in the last 24 hours. Of those, 36 are in the ICU and 18 are on ventilators.

The Iowa State Patrol and Iowa Department of Transportation said citations for speeding over 100 mph have increased 84% compared to the four-year average. The Iowa State Patrol released data from speeding violations that showed 1,635 drivers exceeded the speed limit by 25 mph or more from January 1-June 10. Citations for these speeds totaled 912 in April and May compared to 764 citations for the previous three months combined. The data also shows that a younger demographic, mainly males between the ages of 14-29 years of age, has been the most common speeding violators. Most citations occurred on Saturday afternoons. But, perhaps more importantly, the data shows that nearly one-third of the violations during that time period were for speeds exceeding 100 mph. Read the full story here.

These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
July is here and our weather will feel like it for some time. Highs are warmer today, reaching the middle 80s, thanks to more sunshine than the past couple of days. Tomorrow should be a tad warmer with more of us hitting the upper 80s under a partly cloudy sky. For the holiday weekend, plan on humid highs in the upper 80s with lots of sunshine. The temperature pattern stays pretty much the same right through next week with highs in the upper 80s each day. The wind is going to be light, so don't count on a breeze to cut into the warmth and mugginess. As far as rain goes, we probably won't see anything again until Tuesday at the earliest.