Iowa Governor Wants $50M for Advanced Manufacturing

On the heels of the release of two roadmaps calling for increased state support for advanced manufacturing and information technology (IT), Iowa Gov. Tom Vilsack announced plans to spend $50 million "to attract leading scientists to Iowa and spark new research and product development," according to the Des Moines Register.

Gov. Vilsack, addressing those in attendance at a Nov. 17 economic development conference, said he would authorize $50 million to create chairs at the state's universities, the article states. The money would go toward attracting and retaining scientists and faculty and providing grants for businesses, entrepreneurs and others.

To fund the investment, the governor "proposed using money generated by bonds that were backed by the state's share of the multi-state tobacco settlement," the Associated Press reports. The money could also be taken from a pot of $100 million in savings expected to result from state debt-refinancing plans, the Des Moines Register adds.

Gov. Vilsack also proposed creating a statewide Lean Manufacturing Institute, per the recommendation of the Advanced Manufacturing Strategic Roadmap. Creation of the institute is one of 15 actions said to be a "critical" or "high" priority. Factory owners could look to the institute for new technologies or ways to save money, according to the governor.

The advanced manufacturing roadmap and a similar one highlighting Iowa's IT sector were released by the Iowa Department of Economic Development (IDED) just two days prior to the governor's announcement. The plans call for $300 million to go to the state's factory and technology industries -- an investment that would add 37,000 jobs over 10 years, the authors say.

Iowa had approximately 220,000 manufacturing workers in 2003, a figure that represented nearly 19 percent of the state's total private sector workforce. The manufacturing sector accounted for 23.2 percent of Iowa's gross state product, the largest share of any industrial activity in the state. For comparison, the IT industry in Iowa employs less than 30,000 individuals, a level of employment representing 2.5 percent of private sector employment in the state.

One other recommendation spotlighted by Gov. Vilsack - the appointment of a statewide Iowa Advanced Manufacturers’ Council - could serve as an advocate for the sector by identifying needs and developing proposals for policies and programs or sponsoring internships. The group would be comprised of business and academia and exist as part of a larger group such as the Iowa Business Council or Iowa Association of Business and Industry.

Both of the roadmaps were developed with feedback from industry representatives and public and private leaders from throughout Iowa. The plans are available in their entirety through IDED at http://www.iowalifechanging.com.