WEDNESDAY, JAN. 8, 2020 | IN THIS ISSUE
• Corridor stocks turn in a strong 2019 amid uncertainty
• Area Pier 1s in limbo as chain ponders mass closings
• Iowa rises to middle of the pack in U-Haul migration study
• USMCA expected to be a boon for U.S. turkey exports
• Movers & Shakers: Week of 1.6.20
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Corridor stocks turn in a strong 2019 amid uncertainty
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Despite plenty of business uncertainty, 2019 ended up a banner year for (most) U.S. equities.
The tech-heavy Nasdaq exchange gained 35.2%, propelled by high-flying tech stocks like Amazon and Netflix, while the broader S&P 500 ended up 28.9%. The Dow Jones Industrial Average and the Russell 2000, representing small-cap stocks, each added roughly 23% over the year.
Closer to home, the weekly CBJ Stock Index, a basket of publicly traded companies with a significant presence in the Corridor, gained 25.15% on the year, driven by a broad surge in financial and manufacturing stocks. Fifteen of the index’s 22 components registered gains of 20% or more during the year, with only four companies losing ground.
Iowa City-based MidWestOne Financial Group was the biggest gainer among CBJ Index companies in 2019, picking up 44.17% following its successful acquisition of Dubuque-based ATBancorp. Global professional services firm Marsh & McLennan came in second, with a 40.89% gain, while food giant General Mills added 39.38% on stronger results from its pet foods business.
United Technologies Corp. was another notable gainer, adding 38.18% over the year following its successful acquisition of Rockwell Collins, and the July announcement of a planned megamerger with defense contractor Raytheon.
Coralville biotech company KemPharm had the worst year among companies in the CBJ Index, falling 80.84%. Educational company Pearson dropped 28.92%, while Cedar Rapids-based UFG Insurance shed 20.22%.
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Area Pier 1s in limbo as chain ponders mass closings
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Pier 1 Imports announced Tuesday it planned to close up to 450 locations - almost half of its 942 stores nationwide.
The chain, which specializes in imported home furnishings and decor, announced Monday
it is looking to reduce its corporate expenses, which includes "a reduction in corporate headcount" and the halving of its physical footprint.
Pier 1 has Corridor-area stores at 1401 Coral Ridge Ave. in Coralville and 1406 Twixt Town Road in Marion. The company has not yet released a list of locations to be closed.
“Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision," said Pier 1 CEO Robert Riesbeck in a release. "We thank our team of hard-working associates for their commitment to Pier 1 and to serving our customers.”
The company also said it plans to close some distribution centers and reduce corporate expenses. It plans to use a third-party liquidator to help manage the store closings.
According to a Bloomberg report,
Pier 1
envisions dismissing about 40% of its headquarters staff and has
drafted a bankruptcy plan
. Last month, the company made a presentation to creditors pitching a smaller company with about $900 million in annual sales.
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Iowa rises to middle of the pack in U-Haul migration study
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Iowa ranked No. 41 on the annual list a year ago, registering as a slight net-gain state for procuring U-Haul truck customers. It was a "convincing growth" state prior to 2018, ranking No. 12 in 2017 and No. 13 in 2016.
Florida leapfrogged Texas as the top growth state for 2019, ending the Lone Star State’s three-year run atop the rankings for 2016-18. Florida rose one spot after being No. 2 for growth the previous three years. North Carolina jumped 21 spots to third on the list, with South Carolina and Washington rounding out the top five.
Illinois and California lead the way in out-migration with the largest net losses of moving trucks crossing their borders.
Growth states are calculated by the net gain of one-way U-Haul trucks entering a state versus leaving that state during a calendar year. Migration trends data is compiled from more than 2 million one-way U-Haul truck-sharing transactions that occur annually.
Iowa arrivals of one-way U-Haul trucks were down 2%, but departures were down 4% compared to the state’s 2018 numbers. With fewer trucks leaving the state, arrivals accounted for just over 50% of all one-way U-Haul traffic in Iowa to make it the No. 30 state for netting do-it-yourself movers.
Ames led Iowa’s gains. Waukee, Bettendorf, Davenport, Iowa City, Waterloo and Sioux City were among other cities to see a net increase of U-Haul trucks. Cedar Rapids was a virtual break-even city.
Although U-Haul migration trends do not correlate directly to population or economic growth, the company claims its growth data is an effective gauge of how well cities and states are attracting and maintaining residents.
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USMCA expected to be a boon for Iowa turkey exports
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There are roughly 150 farmers across the state of Iowa who raise more than 11 million turkeys and Iowa Turkey Federation Executive Director Gretta Irwin says a better agreement with Mexico and Canada is critical for Iowa turkey farmers. Since 2014, the U.S. has exported 3.1 billion pounds of turkey meat globally, and more than half of that has gone to Mexico.
"Mexico being our number one trade partner, they love to take the dark meat of turkeys, so, the thighs and the legs, and make hams out of it," said Ms. Irwin, adding the USMCA is keeping access to Mexico, but also creating a new opportunity for turkey exports in Canada.
"This strengthens Mexico but it will increase the amount of turkey that will go into Canada," she said.
For example, being able to take the deli meats produced in Iowa and sell them in Canada will be allowed under the USMCA.
"We estimated about a 29 percent increase will happen in what we export to Canada in our turkey from the United States," explained Ms. Irwin.
Another country turkey producers expect to see an increase in is China.
In November 2019, China lifted their ban on imports of U.S. poultry products.
"In 2020 we're also excited for the agreement with China," she said. "China has been our second largest importer of turkey products prior to the avian influenza. So, with the China agreement coming online with the USMCA trade agreement, it's a very positive outlook for the profitability for Iowa turkey farmers in Iowa in 2020."
In 2019, Iowa was ranked seventh in turkey production and fifth in turkey processing.
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Movers & Shakers: Week of 1.6.20
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For the complete list of this week's Movers & Shakers, see the
Jan. 6
edition of the CBJ.
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Jan. 9
Discover Your Company’s Core Values
, by SCORE East Central Iowa, 11:30 a.m.-1 p.m., Hills Bank, 3905 Blairs Ferry Road NE, Cedar Rapids. Learn what a thriving, value-based culture looks like from within, the consequences of an unintentional culture and how culture exists whether you pay attention to it or not. Free. To register, visit
conta.cc/35XESRq
.
Courageous Leadership Club
, by Jennifer Zach, 12:15-1:15 p.m., Dash Downtown, 509 Third St. SE, Cedar Rapids. The leadership club will meet from January to March, beginning Jan. 9. Learn how to create greater impact in your organization and enjoy professional fulfillment. Cost: $197. To register, visit
bit.ly/2RxuVWV
.
Profile by Sanford Ribbon Cutting
, by Iowa City Area Chamber of Commerce, 4 p.m., Profile by Sanford, 1301 S. Gilbert St., Iowa City. For more information, call (319) 337-9637.
Jan. 13
Coralville Roundtable
, by Iowa City Area Chamber of Commerce, noon-1 p.m., Texas Roadhouse, 2520 Corridor Way, Coralville. Members are invited to network and keep up to date with chamber and community events. For information, call (319) 337-9637.
Jan. 14
Small Business Lunch Roundtable
, by SCORE East Central Iowa, noon-1 p.m., Granite City Food & Brewery, 4755 First Ave. SE, Cedar Rapids. This networking opportunity offers a chance to share best practices and get help with business challenges. Free. To register, visit
conta.cc/2DXJlHV
.
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Headlines from CBS2/FOX 28
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These news items are provided by CBS2/FOX 28
After high levels of nitrate were detected in potential drinking water for the Amana Colonies, the Amana Society is continuing to monitor the issue and shut off supply from two wells. "None of the water that had risen to levels that were unacceptable reached the community," Greg Luerkens, the CEO for the Amana Society said. The water source in the Amanas is supplied by the Amana water tower. The tower provides a blend of water of six different wells. Because the water is mixed, it diluted and corrected the nitrate levels well into an acceptable number at right around 4.2 grams per liter. Officials with the water company say they regularly test water quality and shut the contaminated wells down. As to why nitrate levels were on the rise, the reason might be on the society's farm land. "Having nitrates in the water system isn't all that uncommon in rural farming communities because of fertilizer that are put onto the ground and ultimately can run off and get into the water system," Mr. Luerkens said.
Gov. Kim Reynolds on Tuesday said her administration will review the backlog of ex-felons' applications to get their voting rights restored before the Iowa caucuses next month. During a legislative forum hosted by the Associated Press at the capitol, Ms. Reynolds said there are 347 pending requests, 80 of which she received in the past month. She promised to process all of these applications before first-in-the-nation event in less than a month. "I can make the assurance of the 347 they will be completed prior to the February caucuses," she said, encouraging those who have not applied but wish to participate Feb. 3 to get those applications in as soon as possible. "We’ll do everything we can to get them through the process and get them reviewed and give them an answer one way or another." Iowa is the only state in the country with a blanket ban keeping more than 50,000 people with felony convictions from voting unless they successfully petition the governor to get those rights restored.
These news items are provided by CBS2/FOX 28
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CBS2 Weather First Forecast
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High pressure will be in control today and lead to sunny skies. It will be cold and breezy, though, with temperatures in the mid- to upper 20s. The breeze will lead to wind chills in the teens. Clouds will move back into the area tonight and warmer air will move in as a warm front lifts north. Temperatures will be rising into Thursday morning and will end up in the 40s and 50s tomorrow afternoon. A cold front will sweep through the area and lead to light rain showers. Colder air will then move in as we head toward the weekend.
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