IOWA INDUSTRIAL BUSINESS CONDITIONS REPORT

Prepared by CIRAS Field Representatives

Across the state, 81 percent of the companies indicate that sales were steady to up slightly for the first half of the 1977 year. However, only 13 percent indicated sales were up strongly, compared with 16 percent for the last half of 1976. Companies indicating sales were down declined to 6 percent of the total companies. This was a decrease of 7 percentage points.

The over-riding concern expressed by executives was about the inflationary pressures from anticipated increases in wage, material and energy costs. Business conditions over the state are described by CIRAS field representatives in each area as follows:

Southeast

Sixty percent of companies in this area indicate sales were up slightly. The chemical and the plastic industries indicated a strong sales growth.

Printing continued to be a strong industry with sales up to up strongly. Machine and tool and die firms, furniture manufacturers and metal fabricators all indicated some sales increase.

Southwest

A majority of companies in this area indicated sales have been about the same as the past six months.

The sewing and chemical industries reported strong sales. Home and building fabrication were also good. Most other industries indicate sales were steady to up slightly. The farm equipment manufacturers in this area have seen sales slow as the drought continues.

East Central

Industries in this area indicated sales have been the same to a number indicating that sales were down.

The industries indicating the best sales increase were chemical and printing. Foundries, construction equipment manufacturers, metal fabricators and farm equipment manufacturers all indicated that sales have softened.

Central

The industries in this area apparently have fared better than most others as a number indicated strong sales.

The printing industry, as it has for the past year, continued to show strong sales strength. The plastic industry and the speciality manufacturers also were strong. Metal fabricators covered the whole sales range with many being up to up strongly.

The machine and tool and die firms showed better this period with a number indicating sales up to up strongly.

Northwest

This area has many of it's industries related to agriculture and, as such, have had sales affected by the drought. Home and building fabricators, however, had sales which were up strongly. Metal fabricators also indicated strong sales.

The printing industry continued steady to up in sales. The farm equipment manufacturers, in general, had soft sales. Other industries seem to have had a mix in sales results with no clear majority in any area.

Northeast

This area's industry has generally continued to show improved strength over the past few months. However, the limited moisture situation has tended to hold back overall sales because the majority of industries are agriculturally related.

The recreational vehicle industry has cooled down with the uncertainties of the energy situation, however nearly all pickup topper firms have surged ahead.

Strong sales growth was reported for home and building fabricators, furniture manufacturers, and most machine and tool and die firms. Sales were up slightly for most other types of industries. Construction equipment firms indicated that sales were down a little.

PROJECT ANALYSIS

During the fiscal year 1976-77, CIRAS received 988 projects from lowa industries, businesses, and others. We also handled 17 projects from outof-state clients and 493 memorandums of requests for a grand total of 1498. We feel the projects now received are more technical, more complex, and somewhat more sophisticated than in previous years.

CIRAS projects are often precipitated or initiated when a company has a problem which may appear to them as being too large or complicated for their own personnel. Occasionally, clients may believe their staffs cannot answer the problem or have the full confidence in their answer. Regulatory restrictions may sometimes be a factor blocking the classical or obvious solution, thus provoking the client to seek assistance. In any event, the problem is generally not significant enough to embark on a major consulting study.

The CIRAS approach to such a project is first to identify and define the problem, and to proceed toward making suggestions to the client aimed at helping the client solve the problem. Secondly, if and when it becomes obvious that the client probably lacks the necessary personnel or ability to solve the problem from suggestions, additional aid is provided such as counseling with university and college staffs, providing technical literature or identifying sources for technical information, or perhaps actual problemsolving by a CIRAS representative, provided it will involve a limited time. Three man-days of CIRAS personnel's time is the guideline used in these instances. Thirdly, and usually the final approach, competent consultants are suggested. Usually outside professional consultation is needed when the client does not have the expertise, and CIRAS specialists either lack the expertise or the problem will require a lengthy study.

Project Memorandums

Many requests for assistance come to the CIRAS staff by telephone and/or personal visits which require little time to give an answer. Usually these answers are given from personal knowledge or the simple expedient of using a directory or phone book. The requests are usually not of the stature to require a formal written answer or follow-up. The total for this fiscal year was 493.

Pages 19 and 20 contain a map and table showing the county by county distribution of total projects received.