MONDAY, DEC. 7, 2020 | IN THIS ISSUE

• Exclusive: Whirlpool sells Amana plant as leasebacks rise
• U.S. imports from China spiking amid pandemic
• Cornell partners with Posse to develop diverse leaders
• Reynolds names members of new comp sci workgroup
• Small businesses hiring, but struggling to find workers
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
Exclusive: Whirlpool sells Amana plant as leasebacks rise
Industrial sale leaseback transactions are on the rise around the country and in the Corridor as the COVID-19 pandemic and recession prompt businesses to offload real estate assets as a way of increasing liquidity, fueling growth and strengthening their capital reserves.

Last month, the private equity firm that owns Advanced Material Processing (AMP), a newly formed umbrella company consisting of Marion Process Solutions and Kason Corp. of New Jersey, announced a $3.83 million sale leaseback involving its Marion facility that it said “unlocks significant value for AMP to deploy toward its growth initiatives.

Now, in a newly recorded sale, appliance giant Whirlpool Corp. has sold its Amana plant for close to $93 million in a deal it says was part of a “global real estate review.”

According to the Iowa County assessor’s website, Whirlpool’s 88,000-square-foot facility at 2800 220th Trail in Middle Amana sold for $92.7 million on Oct. 26. The buyer was WHRAMIA001 LLC, identified on the Iowa Secretary of State’s business entity website as a foreign limited liability company using a fictitious name. Its listed home office address on Chicago’s Wacker Drive, however, is the office of Oak Street Real Estate Capital, a private equity real estate firm that scooped up a slew of industrial and retail properties on a sale leaseback basis earlier this year.

An internal Whirlpool memo obtained by the CBJ refers to the Amana sale as a “minor real estate change,” and stressed it is business as usual at the plant. Under the agreement, the only change is that Whirlpool will now enter a long-term lease with a third party instead of owning the facility outright.

“There will be no short- or long-term changes to the company’s current business in the area,” the memo stated. “No jobs are being lost, no buildings are being closed – our footprint in Amana will remain the same.”

In a statement to the CBJ, Whirlpool reiterated the sale leaseback would have no impact on operations, describing it as “a common business practice that allows companies to optimize their real estate portfolios.”

The company did not elaborate further on the reason behind the facility sale, although it is not the first time this year Whirlpool has entered into a sale leaseback agreement.

Read the full, members-first story in this week's print or digital editions of the CBJ.
U.S. imports from China spiking amid pandemic
U.S. imports from China have grown by more than 126% since the COVID-19 pandemic was declared in March, showing that despite the trade war and the global economic recession, the U.S. still largely depends on China for goods, London-based Bankr.nl reports.

Data presented by Bankr indicates the U.S. imported $292.64 billion in Chinese goods between March and October.

The value of Chinese imports to the U.S. was $44.83 billion in October, the highest figure during the review period. That figure was up from just $19.81 billion in March, and $36.6 billion in May.

Chinese imports from the U.S. have been on the rise in recent months as that country emerges from the economic freeze of the pandemic's earliest days. China imported $14.7 billion in goods from the U.S. in October, an increase of 28% from September's $11.53 billion, and a 62% jump from July's mark of $9.03 billion.

Nevertheless, the value of China's imports from the U.S. during the same period increased just 85%, to a total value of $81.76 billion – 3.5 times less than the value of U.S. imports from China.

"Despite the exiting trade wars, the U.S. still depends heavily on China for providing low-cost goods that enable income-constrained American consumers to sustain themselves,” the Bankr report indicates. “The U.S. also relies on China to support its exports. Notably, China is emerging as the United States' major export partner."
Cornell partners with Posse to develop diverse leaders
Cornell College in Mount Vernon has announced a new partnership with Posse, a national educational diversity organization, in an effort to support the next multicultural generation of leaders.
 
Under the program, Posse recruits high-achieving student-leaders from high schools across the U.S., and then holds three rounds of interviews and meetings to name finalists.

Cornell’s admission team will narrow the final pool of candidates to 10 students, then provide full scholarships to those students each year, forming a "Posse." Cornell faculty and staff members will then mentor and work with each new class of Posse students.

Posse says its scholars are students who may be missed by the traditional college selection process and come from a variety of backgrounds. The organization started in 1989 after one student said, “I never would’ve dropped out of college if I’d had my posse with me.”

“Posse selects top-tier colleges to team up with. and is known for bringing student-leaders with diverse backgrounds to its partner campuses,” Cornell College Vice President for Enrollment Management Wendy Beckemeyer said in a release. “Cornell has so many opportunities for students to become leaders in our community, and we know these Posse Scholars will be a great new addition who will bring additional diversity to our campus home.”

IMAGE: King Chapel at Cornell College in Mount Vernon. CREDIT CORNELL
Reynolds names members of new comp sci work group
Iowa Gov. Kim Reynolds has announced the members of a new Computer Science Work Group created by a 2020 state law that, for the first time, requires the state’s 327 school districts and 116 accredited nonpublic schools to offer computer science instruction to their students.
 
Earlier this year, Ms. Reynolds proposed House File 2629, passed unanimously by the Iowa Legislature, requiring high schools to offer at least one computer science course by July 2022. Elementary and middle schools must provide computer science instruction in at least one grade level each by July 2023.
 
The bill also calls for the Iowa Department of Education to convene a Computer Science Work Group to make recommendations to strengthen computer science instruction and develop a campaign to promote computer science to K-12 students and families. The group’s recommendations are due to the General Assembly by July 1, 2021.
 
The work group will be led by co-chairs Kathleen Kay, chief information officer at Principal Financial in Des Moines, and Jeff Weld, executive director of the Governor’s Science, Technology, Engineering and Mathematics (STEM) Advisory Council. Other members from the Corridor include Samantha Dahlby, director of K-12 Education at NewBoCo in Cedar Rapids; Dee Hamlett, computer science technology teacher at St. Joseph Catholic School in Marion; and Kyle Rector, computer science assistant professor at the University of Iowa.

The work group will hold its first meeting remotely Dec. 8, from 3:30-5 p.m. Members of the public interested in participating may join remotely through video conferencing or by telephone. The instructions for joining remotely are available in the meeting agenda found on the Iowa Department of Education’s Computer Science Work Group webpage.
Small businesses hiring, but struggling to find workers
U.S. small businesses reported an historically high level of job openings in November, according to the November monthly jobs report from the National Federation of Independent Business (NFIB).

The Des Moines Business Record reports that overall, 53% reported hiring or trying to hire in November, down 2 percentage points from the previous month. A seasonally adjusted 21% of owners are planning to create new jobs in the next three months, up 3 points from October.

"This survey shows that our small business owners here in Iowa feel better about where the economy is headed," said Matt Everson, NFIB state director in Iowa. "Let’s not forget that the service and retail industries continue to suffer, according to another recent NFIB survey. However, with the recent news from Gov. Kim Reynolds that nearly 200,000 vaccines will be here in Iowa this month, small business owners should feel optimistic that the economy will rebound to the levels we saw pre-pandemic."

The national survey was based on responses from 561 NFIB members surveyed during November.

On a seasonally adjusted basis, 34% of small business owners reported job openings they could not fill in the current period, up 1 point from October’s reading. Eighty-nine percent of those owners trying to hire reported few or no qualified applicants for the positions they were trying to fill. Twenty-seven percent of owners reported few qualified applications for their positions and 20% reported none.

Skilled positions are more difficult to fill, as shown by the survey. Twenty-nine percent of owners have openings for skilled labor, while 13% have openings for unskilled labor.

Among construction firms, 42% of the job openings in construction are for skilled workers, down 2 points. Fifty-three percent of construction firms reported few or no qualified applicants and 37% cited the shortage of qualified labor as their top business problem.

Nearly 1 in 4 of small business owners — a net 24%, seasonally adjusted — reported raising compensation during the month, and a net 20% plan to do so in the coming months, reflecting the tight labor market.

Read the full story here.
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Short Term Event Planner

Dec. 8
Cybersecurity Symposium, by Corridor Business Journal, 8-10 a.m., online. Industry experts will discuss the current threat landscape, incident response, and tools and tactics to mitigate risks for your company and customers. Keynote by Kenneth Schmutz, supervisory special agent, FBI Omaha, Cyber Task Force. Free. For more information or to register, visit corridorbusiness.com/events/ or contact Ashley Moore at [email protected].
 
Corridor Corporate Games Informational Webinar, by Corridor Corporate Games, 10 a.m., online. This session is open to companies interested in learning more about the Corporate Games, a company based competition held June 1-July 31. Free. For more information, visit bit.ly/3eRQB9C.
 
Point of Sale and Credit Card Processing Systems, by Iowa Center for Economic Success, noon-1 p.m., online. Learn the benefits, common mistakes and hidden fees associated with a credit card payment services contract. Free. To register, visit bit.ly/3g5HQK2. 
 
Loan Modifications Discussion, by CLA, 1 p.m., online. Discuss the impact of loan modifications, including multiple modifications to a financial institution’s credit risk ratings. Free. To register, visit bit.ly/2UG8AqD. 
 
Dec. 9 
1 Million Cups, by 1MC Cedar Rapids, 8:30 a.m., online. Join for community connections 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 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC.

MEDCO’s Annual Business Meeting, by Marion Economic Development Corp., noon, online. This year-end virtual luncheon will feature stories of big comebacks and resiliency. Free. To register, visit bit.ly/3kXDDtf.

Year-End Planning for Your Employee Benefits Plans, by CLA, 2 p.m., online. Join a discussion about the SECURE Act, the CARES Act and potential legislation for 2021. Free. To register, visit bit.ly/3nwvqxc

Investing on Tap, by Hills Bank, 4:30 p.m., online. Jim Entwisle of Vanguard will present on The Value of Advice. Free. To register, visit bit.ly/3eRdpqe.
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Headlines from KCRG-TV9
These news items are provided by KCRG-TV9 

“Why in the world would you do this?” That’s the question Heather and Nic Weers have been asking themselves after someone broke into their storage shed in Jones County on Saturday and stole thousands of dollars’ worth of items inside. “Boxes were thrown on the floor,” Heather said. “There were a lot of totes that were gone, tools missing. It was pretty upsetting.” Those items belong to the Jones County chapter of Sleep in Heavenly Peace, an organization that builds beds and donates them to kids who don’t have a bed. Read more here.

The Iowa Department of Public Health reported an additional 913 people have tested positive for COVID-19 in Iowa. The state also reported an additional 35 more COVID-19 related deaths have been added to the state’s totals over the last 24 hours. That makes the total number of Iowans who have died from the virus 2,717. Hospitalizations continue to decline in the state, with the state reporting the fewest hospitalizations in about a month. Data from the state’s website shows a total of 898 Iowans are in the hospital with the virus. Of those hospitalized, 94 were admitted in the last 24 hours. That’s also the lowest number of new hospital admissions in about a month. There are 200 Iowans in the ICU with the virus, and 120 are on ventilators. IDPH also reported a total of 160,835 Iowans have recovered from COVID-19. Read more here.

These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
Plan on a cloudy sky today. Highs will be confined to the 30s in all areas due to the clouds and overall very light wind. These clouds will hold on tonight and into much of tomorrow, though no precipitation is expected out of any of them. Warmer temperatures in the 50s are likely on Wednesday and possibly Thursday as well. By Friday, our next system approaches the area from the southwest and at this point, continues to look like mostly a rainfall situation.