When aerospace and defense companies scout sites for their next facility, the usual names tend to come up: Wichita, Fort Worth, and Seattle. But as these companies face mounting pressure to shorten supply chains, secure skilled workers, and break ground faster, many are widening their search. At the top of that list: Iowa.

The state exports nearly $1 billion in aviation parts and electronics to more than 125 countries, and has built a network of manufacturers, suppliers, engineering talent, and aviation businesses that support a thriving aerospace ecosystem. Iowa also ranks third in the nation for concentration of mechanical engineers, third for manufacturing workers, and second for the share of its workforce employed in STEM occupations.

Those aren’t the stats of an emerging player. They tell a story of a state that has quietly spent decades building many of the advantages aerospace companies are searching for today.

That foundation spans beyond workforce and manufacturing strength. Iowa has also worked to create a business environment designed to help companies move quickly, with a focus on regulatory efficiency, responsive state leadership, and policies that support long-term growth.

Here’s a closer look at the three reasons aerospace and defense companies are giving Iowa a second look:

1. A workforce built to last

Ask aerospace executives what keeps them up at night, and workforce challenges top the list. Programs can miss milestones when experienced machinists retire faster than apprentices replace them, or when specialized welders take opportunities elsewhere.

Iowa’s advantage is institutional. A network of apprenticeships, community colleges, and research universities helps sustain a manufacturing workforce known for its stability, longevity, and technical expertise.

That talent pipeline supports an aerospace and defense industry that employs 19,286 people at an average wage of $109,596, according to 2023 data from the Aerospace Industries Association.

2. The cost case

Beyond talent, Iowa makes a compelling cost case.

It starts with a corporate tax rate that will ultimately be reduced to a target of 5.5% – among the most competitive in the nation – and the savings build from there. Industrial construction costs run roughly 18% below the national average, while corporate rental rates are approximately 15% lower, so a company spends less to build and less to stay. Because corporate income tax applies only to sales earned within Iowa, companies that manufacture in the state and sell elsewhere retain more of their earnings. Businesses can also benefit from a sales and use tax exemption on digital goods and services purchased for commercial use, among the broadest in the country.

The state also offers incentives designed to support growth. Iowa’s Research and Development Tax Credit Program encourages innovation in advanced manufacturing, while programs like the Industrial New Jobs Training (260E) Program can offset workforce training costs associated with large-scale hiring and expansion.

Operating costs remain competitive long after construction is complete. Beyond Iowa’s energy costs being 28% lower than the national average, the state generates more electricity from renewable sources than any other, and ranks among the nation’s leaders for grid reliability. Its central location provides another advantage, with access to road, rail, air, and river transportation networks that help keep shipping costs and supply lines short.

3. Breaking ground without the wait

A site isn’t valuable if it takes years to become operational.

Iowa ranks among the top 10 states in the nation for site readiness, and its Certified Sites program helps take the guesswork out of site selection by identifying development-ready locations that align with a company’s project timeline. For businesses operating on tight schedules, a certified site is a tailwind: The environmental reviews, utility assessments, and zoning are already complete, so the company can scale up quickly and potentially save thousands on site preparation costs.

One example is the CID SuperPark, located near the Eastern Iowa Airport in Cedar Rapids. The SuperPark spans 582 development-ready acres, while the broader airport campus offers roughly 1,300 additional acres available for lease. It also benefits from its Foreign Trade Zone designation, close proximity to Interstate 380, and convenient access to rail and air transportation.

The location reflects Cedar Rapids’ longstanding aerospace legacy. Its address — 2515 Arthur Collins Parkway — honors the radio pioneer who founded Collins Radio Co. in 1933. That company now lives on as Collins Aerospace, the city’s largest employer, with roughly 7,000 employees nearly a century later.

A serious contender for what’s next in aerospace

Iowa’s talent pipeline, financial incentives, and ready-to-build sites didn’t appear overnight. They’re a result of a state that has spent decades investing in manufacturing, workforce development, and long-term economic growth.

The legacy aerospace hubs aren’t going anywhere. But for aerospace and defense companies looking for their next phase of growth, Iowa offers a rare combination of capability, speed, and room to grow, all in one place — making it a serious contender for the next generation of aerospace investment.

Learn more about what Iowa has to offer.

This sponsored post was created by BI Studios with Iowa Economic Development Authority.

Get a closer look at the present and future of Iowa’s aerospace and defense industry during the 2026 Farnborough International Airshow (July 20-24) at booth #2428.

The post Aerospace companies are looking beyond traditional hubs. Iowa is making its case. appeared first on Business Iowa.

This article originally appeared as a sponsored story on USA Today. 

By Melissa Karns

With roots in aviation dating back to the 1850s, Iowa has played a quiet but important role in the aerospace and defense sector. Across the state, airports large and small help power local economies and connect Iowa-based businesses to global markets, while research labs support aerospace innovation and Iowa’s colleges and universities have trained thousands of pilots, mechanics and engineers.

Now, in a state better known for farmland than flight paths, unified leadership across the state is accelerating Iowa’s emergence as a critical hub in aviation, aerospace and defense innovation.

From workforce development programs to cutting-edge research at universities, a growing network of business, education and government leaders are working to position Eastern Iowa as a destination for aerospace investment and expansion.

The effort comes in response to aerospace and defense companies searching for places with room to grow, strong infrastructure and reliable talent pipelines. Iowa leaders say the state meets those top needs — along with the added benefits of lower operating costs and a business climate built for long-term growth.

“We have the sites, we have the incentives, we have the workforce, we have the innovation.” said Marty Lenss, Eastern Iowa Airport director. “Here, you’re just a connection away from your next big thing.”

That momentum is helping Iowa gain attention beyond the Midwest, including at major international events. At the upcoming Farnborough International Airshow, Iowa leaders plan to highlight the state’s growing aerospace and defense ecosystem to industry decision-makers.

Meet Iowa at booth #2428 at the 2026 Farnborough International Airshow from July 20-24.

Aviation in Iowa’s economy

Looking at the numbers, Iowa is already home to 106 general aviation airports, according to the Iowa Department of Transportation’s Office of Aviation. Adding to that, the state has 34 repair stations, four FAA-approved pilot schools, more than 870 flight instructors and more than 2,000 student pilots.

In 2025, Iowa exported $861 million in aviation parts and electronics to 127 countries.¹

Building an aerospace cluster

In Eastern Iowa, much of the current focus centers around the Eastern Iowa Airport (CID) and a broader regional strategy to create an aerospace cluster that connects research, education, workforce development and private industry.

Last year, CID partnered with the Iowa Economic Development Authority to commission a study outlining how the region could attract aerospace companies and future investment. The study identified opportunities tied to workforce development, payload support and satellite technologies — areas where Iowa already has growing expertise.

Training the aviation workforce of tomorrow

Partnerships with colleges and universities across the state are another part of the strategy. At Kirkwood Community College, for example, students are training for careers in aircraft maintenance through the school’s aviation maintenance technology program, which launched at CID last fall. To support the program, the airport converted a hangar into a hands-on training space.

Strong enrollment and waiting lists are further evidence of the high demand for aviation maintenance careers, particularly as the industry faces workforce shortages nationwide.

At Coe College, a new flight school and aviation management program developed in partnership with Revv Aviation, is helping students prepare for careers as pilots and aviation leaders. Programs like these give students direct industry experience while helping Iowa build a long-term talent pipeline for aviation and aerospace employers.

That workforce pipeline remains one of Iowa’s biggest selling points. The state ranks among national leaders in STEM and manufacturing talent, including the nation’s third-highest concentration of mechanical engineers and manufacturing workers, according to federal labor data.²³

Research that reaches higher

Iowa’s universities are also playing a growing role in the state’s aerospace future.

At the University of Iowa, school leaders recently joined economic development officials and airport executives to discuss how the institution’s research strengths could support the aerospace cluster strategy.

One major asset is the University of Iowa’s Operator Performance Laboratory, which has long studied human performance, aviation safety and aerospace-related systems.

Another is the Iowa Spaceflight Laboratory inside Van Allen Hall, where faculty and engineers design, build and test space instruments for research and commercial projects. The lab has worked with companies like Boeing, Ball Aerospace and Northrop Grumman.

The facility also has the potential to attract additional private-sector partnerships as aerospace companies look for research collaborators with specialized expertise.

The university is also helping develop future aerospace talent through its Edge of Space Academy, a paid summer research program where undergraduate students build and fly small space instruments designed to study Earth and the atmosphere.

At Iowa State University, aerospace research and workforce development have deep roots as well.

The Iowa Space Grant Consortium, led by Iowa State since 1990 as part of NASA’s National Space Grant College and Fellowship Program, supports STEM research, internships, scholarships and outreach programs connected to NASA’s mission. The consortium includes partnerships across higher education, government, industry and science organizations throughout Iowa.

Iowa State also leads Iowa NASA EPSCoR, a program that helps strengthen research partnerships between universities, government and industry while supporting projects aligned with NASA priorities and emerging technology needs.

The university’s Department of Aerospace Engineering has a long history in aviation and aerospace research dating back nearly a century. Over the years, Iowa State researchers have helped advance fields including computational fluid dynamics, aviation weather safety and aircraft icing research, while students gain hands-on engineering and design experience tied to real-world aerospace challenges.

Together, programs like these are helping Iowa build the next generation of aerospace talent while strengthening the state’s growing reputation for aviation and aerospace innovation.

“We have an amazing workforce and amazing training opportunities for people interested in the industry,” said Dr. Sara Nelson, Director of the Iowa Space Grant Consortium and NASA ESPCoR. “Ultimately, I want Iowa to become NASA’s center in the Midwest, but that’s only going to come through really intense collaboration with our partners across the state and continued investment in building our talent pipeline.”

Room to grow

When outlining the state’s advantages for companies planning to expand or relocate, leaders point to Iowa’s lower cost of doing business, affordable energy, reliable infrastructure and available land.

In aerospace and defense, where large facilities and long-term investments are common, those factors can carry significant weight.

One major project is the planned “Track Seven” maintenance repair facility, a 40-acre site expected to house aircraft maintenance operations capable of servicing Boeing 737 aircraft and other planes.

The project reflects both growing demand within the aviation industry and a larger strategy to keep trained workers in the region after graduation.

At the same time, CID continues investing in airport infrastructure through a $120 million terminal modernization project designed to improve passenger experience and support future growth. Roadway improvements, parking expansions and long-term planning designed to accommodate increased demand are other big focuses.

Across the state, Iowa airports continue to modernize facilities and expand services as passenger traffic grows. More than 4 million airline passengers now board flights in Iowa annually, according to state aviation data.

Economic development leaders also believe Iowa’s central location and transportation network create advantages for aerospace and defense companies managing national and global supply chains.

Compared to crowded coastal markets, Iowa has the major benefit of room to scale. That includes development-ready sites allocated through the state’s Certified Sites program, which is geared toward reducing risk and streamlining the site selection process to expedite development. These sites are situated near transportation hubs and industrial corridors, as well as large tracts of land positioned for future projects. Leaders are also promoting the future CID Superpark development site – identified via the Certified Sites program – near the airport as part of the state’s long-term vision for aerospace and aviation growth.

Iowa’s business environment is a significant draw. The state offers competitive corporate tax rates, workforce training support, research and development incentives, and lower industrial construction costs than many national markets.

For those weighing growing energy demands in their decision-making, Iowa ranks among national leaders in renewable energy production and power reliability — an increasingly important factor for advanced manufacturing and aerospace operations.

Turning momentum into opportunity

Leaders say those opportunities align with a broader shift happening across the aerospace industry as companies seek lower-cost regions with strong workforce potential and stable business climates.

For Iowa, the goal is not to simply attract one project or one employer.

The larger vision is creating an ecosystem where airports, universities, manufacturers, workforce programs and private companies work together to support long-term innovation and economic growth.

As Iowa continues telling that story to national and international audiences, supporters hope more aviation, aerospace and defense companies will begin to see the state in a new light — not as flyover country, but as a place where the future of the industry is already taking flight.

To learn more about Iowa’s aviation, aerospace and defense opportunities, workforce advantages and development-ready sites, visit the Iowa Economic Development Authority.

1. WISERTrade ︎
2. Bureau of Labor Statistics, 2024
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3. National Science Foundation, 2026: https://ncses.nsf.gov/pubs/nsb20245/geographic-distribution-of-the-stem-workforce
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The post Iowa’s Aerospace is Gaining Altitude   appeared first on Business Iowa.

From the moment 13-year-old Marty Lenss set foot in an airport, it was love at first flight.

“I remember how fascinating the commotion and chaos of the airport was, and of course, actually flying for the first time was incredible,” said Marty, recounting that first voyage to visit his sister in Canada. That love of flight was instrumental in leading him to become director of the Eastern Iowa Airport (CID). “That experience lit the fuse,” he said.

Years later, after securing his pilot’s license and earning dual degrees in airport and business administration, Marty began a career in aviation that spanned multiple states and positions before being named CID’s director in 2014. During his tenure, Marty has become a central figure in Iowa’s burgeoning aerospace and defense industry, using his extensive aviation business background to help the state modernize and innovate into a new stratosphere among its regional competitors.

Building the foundation for regional aerospace leadership

Marty and the team at CID represent just some of the many Iowa-based aerospace and defense industry veterans leading this effort – a fundamental piece of which ensured that Iowa’s reputation for ease of doing business and lower-than-average operating costs aligned with how the state incentivizes aerospace-related businesses.

“About five years ago, we worked with state airport operators and aviation businesses to support the state legislature’s passage of sales tax exemption bill on aircraft parts and labor,” said Marty. “For where we wanted to go, if you lack that sort of exemption, you’re dead in the water. So, enacting that was an important first step that’s helped supercharge our industry.”

While tax credits and needle-moving incentives are key for growth, workforce readiness is paramount for business leaders as well – especially in the midst an industry-wide strain on talent. Fortunately, Iowa’s ecosystem of universities, apprenticeships and collegiate training programs aim to close this skills gap and ensure the state offers a deep pipeline of aerospace talent. CID itself is home to the Aviation Workforce Development Campus where students from Coe College and Kirkwood Community College train to meet the industry’s ongoing need for pilots and maintenance personnel. Programs such as these also give seasoned professionals like Marty an opportunity to share their knowledge with up-and-coming aviation professionals – a nod to the spirit of collaboration and mentorship that’s a consistent throughline among each of Iowa’s key industries.  

“There’s a depth to this talent pipeline that I think is unmatched,” said Marty. “The quality of Iowa’s workforce speaks for itself, and legacy employers like Collins [Aerospace] and BAE [Systems] can tell you that firsthand.”

Another important building block for any aerospace and defense cluster is shovel-ready land and room to scale, both of which Iowa has in spades. Through Iowa’s very own Certified Sites program, developers were able to speed up selection of the 500-acre plot adjacent to CID as the future home of a SuperPark that will serve as the centerpiece of Iowa’s revamped aerospace and defense cluster for generations to come.

“Through the SuperPark, we want to create real opportunities for legacy aerospace companies operating here to drive deeper roots into Iowa, while also making Iowa even more attractive for companies considering expansion,” said Marty.

A legacy of excellence

The excitement for the forthcoming SuperPark and the cluster at large aside, Marty understands that it takes more than just talent, incentives and shovel-ready land to cement Iowa as a regional aerospace and defense hub: It requires a spirit of collaboration and support.

“There’s been this willingness from the state and other partners to identify the challenges we have collectively and come together to solve them,” said Marty. “That collaboration is part of what I think is going to help us really attract broad attention in the years ahead.”

With the building blocks in place and SuperPark construction slated to begin in 2026, Marty and state leaders are excited for the possibilities and ready to shine an even bigger spotlight on all that Iowa has to offer.

“Iowa’s legacy in aerospace is also a legacy of manufacturing, and our history in both is part of why Iowa sells itself,” said Marty. “We have the sites, we have the incentives, we have the workforce, we have the innovation. Here, you’re just a connection away from your next big thing.”

Get a closer look at the present and future of Iowa’s aerospace and defense industry during the 2026 Farnborough International Airshow (July 20-24) at booth #2428.

The post If you build it, they will soar appeared first on Business Iowa.

Launching an ocean-oriented company from landlocked Ames? Sounds far-fetched

Yet, thousands of miles from offshore surges in Alaska or Hawaii, Peak Engineering LLC (PEAK) is developing and testing technology to generate power from waves. Their goal: to create a cost-effective, multifunctional barrier that protects coastlines while producing electricity.  

According to a small business award granted by the U.S. Department of Energy (DOE), PEAK’s Phase I simulations show “exceptional technical and commercialization progress.” The startup’s early-stage success proves that PEAK’s Midwest headquarters offer plenty of advantages to a company modeling marine energy conversion. Iowa’s leadership in renewable energy, esteemed research institutions, and accessible entrepreneurship programs support innovation. 

“Here in Iowa, I probably have more resources than others who are closer to the ocean,” said PEAK founder and CEO Ossama Abdelkhalik.

“Just two hours from me, at the University of Iowa, the Iowa Institute for Hydrodynamic Research (IIHR) has a cold wave tank that can generate waves for research and development. There’s a lot of work that needs to be done in this type of facility [before testing in the ocean], and the cost for running experiments there is very reasonable.” 

Turning Expertise into Economic Impact  

An accomplished scientist, Ossama serves as Professor and Vance D. Coffman Faculty Chair in Iowa State University’s Department of Aerospace Engineering. He collaborates with his PEAK team during his free time. Ossama and co-founder Paul Koola, a Texas A&M University professor, were both publishing papers about ocean wave energy conversion devices. By starting PEAK, they could work to advance industry applications more directly, as a source of renewable energy. 

According to DOE estimates, the United States has tremendous wave energy resources, equivalent to approximately 34 percent of all U.S. power generation. As the nation’s need for electricity continues to expand, converting even a fraction of that flow could significantly contribute to energy independence. 

Campus colleagues encouraged Ossama to participate in the ISU Startup Factory, a startup incubator that assists inventors in developing a road map to prove out and launch their technology. Through his involvement in that program and utilizing Iowa Economic Development Authority assistance, PEAK applied for DOE funding through America’s Seed Fund and won. 

Winning SBIR/STTR Small Business of the Year 

PEAK’s efforts to complete a competitive proposal paid off. In 2024, the company received $1,356,500 in non-dilutive funding from the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs to develop its technology and chart a path toward commercialization.  

PEAK was also named the 2024 SBIR/STTR Small Business of the Year. The award recognizes a U.S. small business for stimulating U.S. technological innovation, fostering commercialization, and contributing to economic growth. Before filing a patent of its technology, the PEAK team engaged regulatory and research agencies as well as industry partners, including coastal developers, engineering firms and utilities. The next phase involves transitioning toward large-scale validation.  

“Currently, this technology is not yet mature, anywhere in the world,” Ossama said. “What we hope for, in the future, is to build the full-scale device ourselves at PEAK and demonstrate its commercial viability.” 

The post No Coast, No Problem appeared first on Business Iowa.

In Iowa, companies don’t just operate. They innovate and thrive thanks to the state’s competitive tax structure, skilled workforce, lower operating costs and a collaborative state government committed to supporting business growth at every level.

Few examples illustrate that better than Vermeer Corporation. Vermeer is just one of many industry-leading companies operating or based in Iowa with an impact that extends far beyond the state’s borders. And like its contemporaries, Vermeer has leveraged Iowa’s business incentives, talent and ease of doing business to build an international advanced manufacturing juggernaut from its headquarters in Pella, Iowa.

Watch the video below to hear from Brianne Schulte, a Vice President at Vermeer, about what makes Iowa the ideal place for Vermeer as it continues following in its founder’s footsteps by finding even better ways to meet its customers’ evolving needs.

The post “A Better Way” to Do Business appeared first on Business Iowa.