MONDAY, AUG. 5, 2019  |  IN THIS ISSUE  

CREDIT: Ball State University Center for Business and Economic Research
Iowa maintained top marks in manufacturing and human capital, while slipping slightly in a few categories, according to Ball State University's latest Manufacturing Scorecard report.

The 2019 Manufacturing Scorecard from Ball State's Center for Business and Economic Research analyzes how each state ranks among its peers in several areas of the economy that underpin the success of manufacturing and logistics. Specific measures include: manufacturing and logistics industry health, human capital, cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, tax climate, and global reach.

Iowa earned 'A' grades in manufacturing and human capital, a 'C-' in benefit costs and productivity and innovation and an 'F' in tax climate.

The grade for Iowa's logistics industry slipped slightly from 'B+' to 'B,' while the grade for Iowa's liability gap slipped from 'B' to 'B-' due to unfunded liability per capital and the grade for global position and diversification slipped from 'C' to 'C-'. Specific  measures include: manufacturing and logistics industry health, human capital, cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, tax climate, and global reach.
 
To view the performance history for each state and an archive of past reports with insight into the manufacturing industry, click here.
Link2State's investment returns for FY 2019 set a record

State Treasurer Michael Fitzgerald today announced record earnings for the state's fiscal year 2019, which ended on June 30.

Iowa earned over $56 million in its investment pool, the largest amount in over a decade, the Des Moines Business Record reported.

"Increased interest income reduces the tax burden, and that is great news for Iowa taxpayers," Mr. Fitzgerald said in a press release.

Mr. Fitzgerald's office is responsible for investing idle funds in a combined short-term investment pool, which in fiscal 2019 totaled over $2.7 billion. This includes such funds as the state's general fund, the road tax fund and the state's two reserve funds. The funds are invested under a conservative investment policy that emphasizes the safety of the funds, then looks to ensure liquidity to make payments. The pool earned 2.04 percent on the funds in fiscal year 2019.

Tyler Ebnet
Shereen Bender
CEC has announced the appointment of Tyler Ebnet as vice president of sales and marketing and Shereen Bender as executive vice president of operations.

When Ms. Bender joined CEC more than five years ago, she was tasked with launching CEC's first-ever training department and leading the newly created People and Organizational Excellence (POE) group. In this role, she made noticeable improvements to employee engagement and organizational effectiveness while directing HR, training and onboarding, and continuous improvement processes.

In her new role, Ms. Bender will continue to oversee the POE group while adding operations to her responsibilities.

"We know Shereen will help operations make impactful progress," says CEO Matt Dlouhy said in a news release. "And progress matters in achieving our mission to make technology simple and to be the most recommended technology partner out there."

Mr. Ebnet most recently held a senior level position at Marco Technologies, where he helped companies cut costs and improve operational efficiency through the use of technology. In his new role, he will create streamlined processes to improved client experiences and expand the managed service part of CEC's business to provide organizations with purchasing flexibility and superior end-user experiences.

"We are thrilled to have Tyler join CEC in a crucial role as part of our growing team," Mr. Doughy said in a release. "His expertise is already helping us better support our customers, sales teams, and technology suites."

Established in 1946, Hiawatha-based CEC has evolved from a small, two-way radio shop into a nationally recognized technology integrator with eight offices across Iowa, Wisconsin, and Minnesota.

A index used by Iowa's Department of Revenue to forecast future tax collections slipped for the third consecutive month in June, although only slightly.

The Iowa Leading Indicators Index (ILII) decreased to 107.1 in June 2019 from a revised 107.2 (100=1999) in May, a decrease of 0.1 percent. This is the third consecutive month of negative change. With half of the eight components contributing positively, the monthly diffusion index was 50.0 in June, up from 31.3 in May.

The annualized six-month change in the ILII moderated to -0.7 from a revised May figure of -1.5 percent.
 
With a 0.05 percent increase in June, Iowa's non-farm employment index has experienced 20 consecutive months of positive growth, although the last five months have averaged the slowest growth since 2017. The negative annualized six-month ILII value and the six-month diffusion index at 37.5 suggest the broad-based signals of weakness in the Iowa economy continue. The goal of the ILII is to signal turning points in the Iowa economy as measured by employment. This report suggests that over the next three to six months, employment growth will remain weak.
 
Four of the eight components were negative contributors to the ILII in June: the agricultural futures profits index, the new orders index, national yield spread and diesel fuel consumption. Compared to last year, new crop soybean prices were 3.3 percent lower while corn prices were 16.5 percent higher, reflecting reduced expectations for the 2019 harvest after spring flooding. 
 
The June 2019 monthly value of the new orders index increased to 53.5 from 49.9 in May yet was lower than the June 2018 value of 63.3.  The national yield spread inverted to -0.15 percent as the long-term rate decreased 33 basis points and the short-term rate decreased 18 basis points. The decrease in the long-term interest rate was the eighth month in a row of decreases, suggesting weakening expectations for long-term national economic growth.
 
The Iowa stock market index, residential building permits, average manufacturing hours, and average weekly unemployment claims (inverted) were the four components that contributed positively to the index. 

Alliant Energy reported second quarter earnings of 38 cents per share, a decline of three cents from year-prior results, due to milder weather and higher depreciation expenses.

The two factors, along with the timing of income tax expenses, overcame the positive impact of rate increases. Alliant's Interstate Power and Light Utility recognized 12 cents per share of higher electric margins in the second quarter due to interim retail electric rate increases implemented in April.

Interstate Power and Light filed a request with the Iowa Utilities Board to increase annual rates for its Iowa electric customers by $204 million, and concurrently filed for interim retail electric rates. The April interim rate increase totals about $90 million on an annual basis, and a final decision from the Iowa Utilities Board is expected in the fourth quarter on the interim rate increase and the remaining $114 million of final rates.

"Our results reflect that our continued investments in cleaner energy are delivering tangible benefits to our customers," said  John Larsen , Alliant Energy chairman, president and CEO, in a news release Aug. 1.  "With continued focus on cost management, and higher year-to-date sales due to temperatures, we are forecasting 2019 earnings toward the top half of our 2019 earnings guidance range."

In  December 2018, Alliant's Wisconsin Power & Light (WPL) utility received an order from the Public Service Commission of  Wisconsin approving WPL's proposed settlement for its retail electric and gas rate review. Under the settlement, WPL's retail electric and gas base rates will not change from current levels through the end of 2020.  

The  $61 million retail electric revenue requirement increase for 2019, resulting from increasing investments in rate base, was offset by lower fuel-related costs and federal tax reform refunds. WPL recognized five cents per share of higher electric margins from increasing investments in rate base in the second quarter of 2019.

Aug. 6
On the Menu: Shaking the Money Tree, by Marion Chamber of Commerce, 11:30 a.m.-1 p.m., Marion City Hall, 1225 Sixth Ave., Suite 136. Explore a wide range of funding sources and how
business owners should prepare themselves to take advantage of funding opportunities. Cost: Free for chamber members, $10 for non-members. To register, visit  bit.ly/2SV535R.

Iowa City Roundtable, by Iowa City Area Chamber of Commerce, noon-1 p.m., Mosley's, 525 S. Gilbert St., Iowa City. Members are invited to network and keep up-to-date with chamber and community events. Free. For more information, visit  bit.ly/2YyO4Yi.

Aug. 7
1 Million Cups, by 1MC Cedar Rapids, 8:15-9:15 a.m., Geonetric, 415 12th Ave. SE, Cedar Rapids. Join for community connections, free coffee, and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit  facebook.com/1MCICR.

1 Million Cups, by 1MC Iowa City, 9-10 a.m., MERGE, 136 S. Dubuque St., Iowa City. Join for community connections, free coffee, and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit  facebook.com/1MillionCupsIC/.

Siren Wednesday, by ImpactCR, 5-7 p.m., Lion Bridge Brewing Co., 59 16th Ave. SW, Cedar Rapids. This is a monthly social for young professionals at Cedar Rapids Metro Economic Alliance member bars and restaurants. Free. To register, visit  bit.ly/31Oa705.
See and Be Seen

in the CBJ Book of Lists - THE definitive resource guide for business leaders. Ranked information on Corridor companies by sector, regional market facts and profiles of the most influential people under one cover. Don't be left out - Be Seen! For advertising information, contact Andrea Rhoades at  [email protected] .

Note: The CBJ is now observing summer hours through Aug. 30. The CBJ offices will be open Monday-Thursday, 8 a.m.-5 p.m., and Fridays, 8 a.m.-noon. 
Headlines from CBS2/FOX 28
These news items are provided by CBS2/FOX 28  
 
Authorities in Linn County were called to a familiar scene just before 1 p.m. Sunday. That's when a car slammed into a minivan along Highway 151 at Springville Road. Authorities say the car pulled out onto the highway and into the path of the minivan. Both drivers were taken to local hospitals for non-life threatening injuries. Two children also in the minivan were not hurt.  The Iowa Department of Transportation has gone back and forth with the City of Springville and its residents for years trying to find a solution. Earlier this year, the two sides came together for a public meeting to discuss a new intersection, some fear, would hurt local business. Right now, the DOT is proposing a new intersection that would cost just under $20 million to construct. But it is still not on the state's five year construction schedule as those opposed to it say it would force some out of their homes and a loss of local road access.

J.D. Scholten is running for Congress again, releasing an  official campaign video on Facebook early Monday. Mr.  Scholten is running again in Iowa's 4th Congressional District, which is currently
represented by Republican Steve King. Mr.  King narrowly defeated Mr. Scholten, the Democrat challenger, in the heavily Republican district. The two were separated in last November's election by about 10,000 votes.  Iowa's 4th District covers much of northwest Iowa and stretches as far east as Chickasaw County. Mr.  King has a number of Republicans also vying for his seat, including State Sen.  Randy Feenstra , business owner  Bret Richards , and  Jeremy Taylor , who serves in the Iowa National Guard.  A primary election on June 2, 2020, will determine who will get the Republican Party's nomination. Mr.  Scholten is the first Democrat to announce so far, but candidates have until mid-March to file to run.

T hese news items are provided by CBS2/FOX 28 
CBS2 Chief Meteorologist Terry Swails' Weather First Forecast

A cold front is on the way and will bring showers and thunderstorms this evening. Ahead of the front clouds will build and it will be warm and muggy. Temperatures will climb into the mid to upper 80s. A few stray storms will be possible in the afternoon, but the higher chance for storms comes after 6-7 p.m. Some storms may be strong, capable of producing strong winds and locally heavy rain. Storms will wind down late tonight.  As the front pushes through it will still be warm and muggy Tuesday with temperatures in the mid 80s. Temperatures will be a bit warmer Wednesday, in the upper 80s, as another front approaches. There will be a chance for a few scattered showers and storms Wednesday night into Thursday morning.