TUESDAY, FEB. 6, 2018  |  IN THIS ISSUE  

Debbie Bullion, the general manager of Coralville's Heartland Inn, pays well over minimum wage, brings in cupcakes once a week, organizes regular staff lunches and does "pretty much anything else I can think of" to keep her 40 employees happy and on the job.

"My goal is not to lose any employees because replacing them right now is near impossible," said Ms. Bullion, who aims to differentiate herself in the unrelenting search for good help by creating a team-oriented family atmosphere. When it comes to hiring new people, she says, "You have to grab 'em when you see them because it's crazy out there. Everyone is recruiting - posters on the back of bathroom doors, on pickups, on construction trucks - everywhere you go."

Jake Kendall, who owns and operates five Culver's Restaurant locations in Linn and Black Hawk County, also pays wages well over the state's mandated $7.25 an hour. He has also begun offering a 401(k) plan, profit sharing, short-term disability and full health benefits - and not just to employees, but to their families, a rarity in the fast food world.

Even so, keeping staffed up is "still very, very difficult," he said. "I could hire 20 full-time people today. I can't find them."

With Iowa's unemployment rate falling to 2.8 percent in December, the state now has the fifth-lowest jobless rate in the country and is well below what many economists consider full employment. The worker scarcity is even worse in the southern half of the Corridor, especially in Johnson County, where the unemployment rate has hovered at or below 2 percent since October, the lowest since May 2001. The Iowa City metro area currently has the fourth lowest unemployment rate in the nation, according to the Bureau of Labor Statistics (BLS); Cedar Rapids is 61st.

Numbers like that have slowed growth, increased churn and forced employers into an all-out scramble for workers at all levels. The pressure is forcing companies to rethink their relationships with their employees, whether it's expanding benefits, paying sign-on bonuses, offering paid training or any number of other perks. And it's slowly - perhaps too slowly by some accounts - inching up wages in an environment where the cost of living has been outpacing the ability of many to live and thrive in the communities where they work.
 
Read the first part of this exclusive three-part series, called "Working for a Living," in this week's print or digital edition of the CBJ. 
 
Three-quarters of Iowa's largest companies expect an increase in sales over the next six months, according to the Iowa Business Council's quarterly economic survey, released yesterday.

Half of IBC members also anticipate an increase in both capital spending and employment during the first half of 2018. Overall, the reported economic outlook is positive, with a higher index number than this time last year - 63 compared to 59. 
 
Responses from the IBC's Economic Outlook Survey indicate council members believe the economy is strong and will continue to grow through the start of 2018. None of the companies anticipate a decrease in sales over the next six months. Even with the positive economic outlook, however, more than 80 percent of council members said that attracting, developing and retaining a quality workforce is a challenge for their businesses.

In response to this challenge, IBC members have pledged to hire 30,000 interns, externs and apprentices by 2025 in an effort to strengthen the state's workforce, as the CBJ previously reported. 
 
"Our members are engaging in several initiatives to tackle workforce challenges because they recognize this issue is critical for Iowa's future growth," IBC Executive Director Georgia Van Gundy said in a release. "In addition to the pledge, our members support legislation that focuses on workforce, like the Future Ready Iowa Act. If passed, the legislation will help employers hire the skilled workforce they need, and create more opportunities for Iowans to have rewarding careers." 
 
Nearly half of council member companies reported that the cost of health care is another primary concern for their organizations. More than a third of members considered an unfavorable business climate - including infrastructure, regulations and taxes - a challenge.  
 
The Economic Outlook Survey is completed by council members on a quarterly basis. The reported trends have a statewide impact, especially when considering that one in six jobs in Iowa are tied to an IBC member company.
Story4Former Mercy Iowa City President and CEO Ronald Reed dies     

Ronald R. Reed 
Ronald R. Reed, who led Mercy Iowa City for 21 years, died Monday.

According to an obituary published at the Lensing Funeral Home site, Mr. Reed, 64, passed away at Mercy Hospice surrounded by his family.

During his tenure at Mercy, Mr. Reed oversaw a significant expansion of hospital services, including growth of the Mercy Clinics system with the addition of primary and specialty care clinics, Wound and Vein Center, Metabolic and Bariatric Surgery, Mercy Hospice Care, the development and acquisition of the Coral West medical facility and a conversion to single patient rooms.

Mercy Iowa City spokeswoman Margaret Reese said today that in deference to Mr. Reed's family, the hospital would not be putting out a statement. But in a release honoring Mr. Reed's service when he retired in March 2016, hospital officials praised his leadership over many years.

"He has done an extraordinary job positioning Mercy for the future and has put an excellent team in place to continue its mission of service to the residents of southeast Iowa," Board Chair Mark Phillips said at the time.

The Reed family will greet friends on Feb. 9 from 3-7 p.m. at the Terry Trueblood Lodge, 579 McCollister Blvd., Iowa City, where a family tribute will be shared at 6 p.m. In lieu of flowers, Mr. Reed's family has asked for contributions to the Rose M. Reed Nursing Education Scholarship Fund at Mercy Iowa City or to the Mercy Hospice Unit.  
       
The Corridor Business Journal announces its newest event, the Future of Technology, which will showcase the region's most innovative companies and products. The event will be held March 6 from 11:30 a.m.-1:15 p.m. at The Hotel at Kirkwood Center in Cedar Rapids.

As Sarvjeev Sidhu of Aegon Asset Management noted during the Business Leaders Panel at the CBJ's 2018 Economic Forecast Luncheon, "Artificial intelligence and machine learning certainly is on the cusp of making a disruptive change in almost every sector and industry." This new event will invite five technology executives to share their groundbreaking ideas in the fields of artificial intelligence, virtual reality and augmented reality.

Executives will deliver a brief presentation on their innovative work before participating in a panel discussion on the future of technology in the Corridor. Gavin Backos, principal, technology management consulting at RSM US LLP, will moderate the discussion. Participants will include:
  • Stephen Baek, assistant professor mechanical and industrial engineering of University of Iowa College of Engineering. Mr. Baek's research targets understanding trends and patterns in geometric data based on theories and principles in differential geometry, manifold theory and algebraic topology.
  • Chase Dittmer, president of GOVRED Technology Inc. Mr. Dittmer talk about how his turnkey virtual reality training technology aids the military, law enforcement and first responders.
  • Meindert Niemeijer, chief technology officer of IDx LLC. Mr. Niemeijer is an internationally recognized retinal image analysis expert with 10 years of experience researching and developing software and algorithms for the analysis of retinal images.
  • Jim Shaw, executive vice president of engineering at Crystal Group Inc. During his tenure at Crystal Group, Mr. Shaw's expertise led to the birth of the rugged series (RS) framework for the military and industrial computing markets.
  • Ada Woo, senior director of strategy implementation and operations at ACTNext. Ms. Woo has more than a decade of experience in the licensure and certification testing field. In addition to her work in psychometrics and research, she is an active member in the assessment industry.
Tickets are $40 per person and $400 per table of 10. Lunch will be provided. For more information or to register, visit www.corridorbusiness.com/events/ or call Ashley Levitt at (319) 665-6397, ext. 311. Registration ends Feb. 27.
Story5Jingle Cross to host round two of Cyclo-cross World Cup in IC

PHOTO jinglecross.com 
For the third consecutive year, Iowa City's Jingle Cross has announced it will host a round of the Telenet UCI Cyclo-cross World Cup.

Set for Sept. 28-30 in Iowa City, Jingle Cross will be the second stop in the series following the opening round in Waterloo, Wisconsin.

"At Jingle Cross in 2016, I experienced real USA cyclo-cross racing for the first time," said 2017 World Champion Wout Van Aert in a statement. "There are so many enthusiastic fans, children and people racing. The course is another big draw. It is one of the heaviest and best-designed courses of the season. I look forward to coming back in 2018, staying in the center of Iowa City and training in such a nice area."

In addition to the World Cup races, the event features a full schedule of amateur races, a gravel ride, a product expo, a line-up of local vendors and a slate of family activities.

"It is an honor for the UCI to again choose Jingle Cross as one of the rounds for the Telenet UCI Cyclo-cross World Cup," Race Director John Meehan said in a release. "Over the past 15 years, Jingle Cross has grown into one of the premier cyclo-cross events in the world and it's terrific to have the best riders compete here in Iowa City. It is excellent for the cycling community and the continued growth of cyclo-cross in North America."

Iowa City Manager Geoff Fruin said that with cycling being part of the city's identity, he "could not be more excited to again have the opportunity to showcase the world's top cyclo-cross athletes in our community."

"We plan to leave no doubt after this event that Iowa City is the top North American destination for cyclo-cross competitions," Mr. Fruin added.

Registration for amateur races will open July 1, 2018. For more information, visit jinglecross.com.
EventHeadlinesShort-Term Event Planner
 
Feb. 6
Venture School Application Deadline, by UI John Pappajohn Entrepreneurial Center. Venture School is accepting applications for its spring 2018 program, which emphasizes real-world entrepreneurship and innovation. The spring program will be offered in Iowa City, Des Moines, Dubuque, Sioux City and the Quad Cities, along with an online version for those who cannot attend an in-person session. Cost: $299 for the first team member, $99 for each additional team member. For more information or to register, visit venture-school.com.

Feb. 7
1 Million Cups, by 1 Million Cups, 9-10 a.m., Geonetric, 415 12th Ave. SE, Cedar Rapids. Join for community connections, startup pitches and free coffee. Free. For more information, visit facebook.com/1MCICR.

Cedar Rapids Metro Economic Alliance Annual Meeting, 11:30 a.m.-1 p.m., DoubleTree by Hilton, 350 First Ave. NE, Cedar Rapids. The Economic Alliance's annual meeting is the organization's signature event where nearly 1,100 business members learn about the organization's goals for the year ahead. Cost: $50, $500 for table of 10. To register, visit bit.ly/2BhuDfa.

Siren Wednesday, by ImpactCR, 5-7 p.m., Della Viti, 203 First Ave. SE, Cedar Rapids. Siren Wednesdays are after work social at Cedar Rapids Metro Economic Alliance member bars and restaurants. They occur on the first Wednesday of each month and serve as a way for young professionals to network in a unique environment. Free.
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Headlines from CBS2/FOX 28
These news items are provided by CBS2/FOX 28  
 
Many Iowans will spend Tuesday morning digging out after a massive snowstorm passed over the state Monday. The Iowa DOT is working around the clock to clear the roads, but many of those roads are still in poor condition; however, they have improved greatly since Monday. At least seven people died and multiple others were injured in 185 accidents. Most of those accidents were weather-related. For a list of closures, delays and snow emergencies throughout the Corridor, click here.

Two people are dead and another is seriously hurt after a crash on Interstate 380 near the Highway 30 exit Monday morning. Officers were called to I-380 NB past the Highway 30 exit around 11:22 a.m. Upon arrival, they found a 2007 Mercury Montego that left the roadway and struck a pillar support of a bridge overpass. Two men inside the vehicle were pronounced dead at the scene. A third was transported to UnityPoint - St. Luke's Hospital with serious injuries. The names of the victims are being withheld pending notification of family members. Police are not releasing any more information at this time. 
 
T hese news items are provided by CBS2/FOX 28 
CBS2 Chief Meteorologist Terry Swails' Weather First Forecast

The weather will remain cold and active through the rest of the week in Eastern Iowa. There will be sunshine to start today and temperatures will just climb to near 10 degrees areawide. Clouds will build in the afternoon as a weak disturbance approaches the area. Light snow will begin to move through the area after 6 p.m. and continue through the night. Accumulation will be light, generally around a half an inch to two inches of snow by Wednesday morning. The higher amounts will be near and south of Highway 30. Snow will wind down Wednesday morning and it will be cold with temperatures in the teens. Another weak disturbance will come in Thursday and bring some light snow.