Iowa business leaders are entering the fourth quarter of 2025 with cautious optimism, according to the latest Iowa Association of Business and Industry (ABI) survey. Nearly 40 percent of respondents expect sales growth, up from only 33 percent in the third quarter. Sixty percent of businesses plan capital investments, which is a sign of confidence in long-term expansion. At the same time, leaders cite external challenges. More than one-third said Chinese tariffs have hurt their business, and 78 percent reported negative effects from U.S. trade policies with Canada and Mexico. Workforce issues remain a top concern for many employers, with 86 percent struggling to recruit and retain skilled workers. Rising health care costs also weigh heavily on business planning. ABI President Nicole Crain says, “ABI members are clear: they’re ready to grow, but external pressures like trade policy, health care costs, and the workforce shortage could hold them back. That’s why ABI will continue to advocate for policies that reduce uncertainty, strengthen the talent pipeline, and keep Iowa competitive.” ABI’s results align with national findings from the National Association of Manufacturers, which highlight similar concerns over trade, raw material costs, and health care. ABI surveys its board quarterly to guide advocacy priorities and gauge statewide concerns.
ABI Survey Shows Iowa Businesses Cautiously Optimistic Heading Into Q4 Amid Trade, Workforce Pressures
