Connectivity Beyond Expectations

SPECIAL ADVERTISING SUPPLEMENT Northwest Iowa Connectivity Beyond Expectations At the core of America’s heartland, Northwest Iowa delivers easy access to major markets, a ﬁ rst-class transportation infrastructure, a welcoming business environment, and outstanding workforce development programs. July 2009 • Inbound Logistics 1 Northwest Iowa You already know it as a major agricultural center. plant or distribution center, it also delivers a great deal more than you’d expect: easy But did you know that Northwest Iowa boasts an access to major markets, a first-class transportation infrastructure, a welcoming excellent transportation network, attractive real business environment, and outstanding workforce development programs. estate opportunities, compelling business incentives, “The attributes that made America eco- nomically strong and active are still alive and a hard-working, conscientious workforce? and well here,” says Kirk Grau, director of economic development for Osceola Stop by the northwestern corner of Iowa long traditions of hard work. You’ll find County, Iowa. “This is a hard-working and you’ll understand right away that this it in the reasonable cost of living and the area with a fantastic workforce. The trans- is the heart of rural America. You’ll know slower pace of life. portation is the best, bar none. It’s located it by the fields of corn and the herds of Northwest Iowa delivers on the prom- right in the middle of the United States beef cattle and dairy cows. You’ll feel it in ises we’ve come to connect with America’s and connected to almost everywhere.” the small, close-knit communities built on heartland. But as a site for a production In other words, if you’re looking for a 2 Inbound Logistics • July 2009 Connectivity Beyond Expectations Anchored in its southwest corner by and Illinois. The project to bring that road Sioux City (far left), Northwest Iowa offers a wealth of infrastructure and business to expressway standards is about two- benefits to companies such as the thirds complete and is included in the Hy-Vee supermarket chain, which recently state’s current five-year plan, Hart says. expanded its warehouse (left) in Cherokee. When it’s done, U.S. 20 will provide an express route across the state from Sioux access to Interstates 29, 35, 80, and 90. City in the west to Dubuque in the east. A The most important recent addition to the trip from Northwest Iowa to Chicago is transportation network is the upgrade to approximately 100 miles shorter via U.S. Iowa Highway 60, a diagonal route link- 20 than via I-80. A truck using the new ing Sioux City, Iowa, with Minneapolis highway will save more than $200 per and St. Paul. Over the past few years, the round trip from the region to Chicago state has transformed Iowa Highway 60 and points beyond, according to the U.S. into a four-lane expressway, providing a Highway 20 Corridor Association. shorter, more direct trip between many “It’s important for trucks to get on the origins and destinations. highway and reach 65 mph quickly,” Hart Iowa Highway 60 is one of six com- says. The highway upgrades in Northwest mercial corridors that Iowa has chosen Iowa have added interchanges in commu- for upgrades to four-lane status under a nities such as Sibley, Orange City, Sheldon, multi-billion-dollar improvement pro- and LeMars, making it easier for trucks gram. “In the mid-1990s, Iowa set out to to get in and out of industrial parks and connect its urban areas that didn’t have other facilities. major connections, with a goal of enhanc- ing its commercial-industrial network,” THE RAIL CONNECTION says Thom Hart, infrastructure manager Standing as it does in the center of the at the Iowa Department of Economic agricultural Midwest, Northwest Iowa Development. also is at the center of the country’s rail- “Highway 60 created an efficient cor- road network. Union Pacific (UP) and ridor to Sioux City,” says Dave Van Burlington Northern Santa Fe (BNSF) Wyk, president of Van Wyk Trucking in both serve the region. Sheldon, Iowa. “We’re less than 90 min- So does the regional D&I Railroad, place to site a logistics facility, you should utes from Sioux Falls, so we can service which runs through the city of Hawarden, get to know Northwest Iowa. Sioux Falls, Worthington, Spencer, and in Sioux County. “D&I’s connection to UP, Storm Lake – all of which are outbound BNSF, and Canadian National gives it the QUICK RIDE TO EVeryWHERE freight points.” capacity to ship on all three lines,” says The region known as Northwest Iowa Primarily a refrigerated carrier, Van Spencer Haacke, Hawarden’s economic encompasses six counties – Cherokee, Wyk Trucking operates approximately 185 development director. “That capacity Lyon, O’Brien, Osceola, Plymouth, and power units – about 100 based in Sheldon, helps keep shipping costs low.” Sioux – with a total population of about the rest in Kansas and Northern Virginia. D&I’s connections have made 100,600. The largest two counties, Sioux “Most of the product we haul originates in Hawarden a logistics center for ethanol and Plymouth, are home to about 32,400 this three- or four-state area,” Van Wyk and other biofuels. “Trucks come in from and 25,000 people, respectively. says. The company serves the Midwest, Sioux Center and other locations and load Those six counties have a long reach. New England, the mid-Atlantic States, the trains in Hawarden,” Haacke says. The “The region is within one day’s drive to and the northwestern United States. Iowa Chicago and Eastern Railway also Minneapolis, Chicago, Denver, St. Louis, Another highway included in the com- serves the region. Omaha, and Kansas City,” says Grau. mercial corridor initiative is the east-west Nor does Northwest Iowa lack for air Highways in the region offer quick U.S. Highway 20, which runs across Iowa transportation. Commercial service is July 2009 • Inbound Logistics 3 Northwest Iowa Cherokee, adding 230,000 square feet to the existing 435,000-square-foot facility. Advocates who lobbied for the Cherokee project say that Hy-Vee chose that facility largely because its workers make it an extremely efficient operation. Businesses in several major catego- ries have gravitated to Northwest Iowa. One is an industry closely related to agriculture: biotechnology. Firms in the region produce petrochemicals and other organic chemicals, fertilizers, pesticides and various agricultural chemicals, and pharmaceuticals. The field also includes animal slaughtering and processing. FULL OF ENERGY Another important industry associated with agriculture is energy. Northwest Iowa is a center for the production of eth- FeeDING THE NATION: anol, E-85, distillers grains, biodiesel, and Northwest Iowa’s location e-diesel. Among the biofuels facilities in in the center of the the region is POET Biorefining’s Ashton agricultural Midwest made it a natural choice for plant, which produces 56 million gallons Hy-Vee’s grocery of ethanol per year. distribution center Wind energy also is growing in the (above). Wells Dairy (right), makers of Blue region. One firm has installed 55 wind Bunny Ice Cream, operates turbines at the eastern end of Osceola two production facilities in Le Mars, where it was County, and another expects to erect more founded in 1925. than 80 at the western end, says Grau. Other companies in the renewable energy sector that have made Northwest Iowa their home include Little Sioux Corn Processors, Northwest Iowa Renewable Energy, and Siouxland Energy and Livestock Co-Op. available nearby at the Sioux Falls, S.D., as it shifted manufacturing to other loca- Agriculture in the area also makes Regional Airport and the Sioux Gateway tions. “Because of the location’s efficiency, Northwest Iowa a natural location for Airport in Sioux City, Iowa. Each county Hawarden has become one of Coilcraft’s food processing. Companies in the region also has a smaller airport to support gen- major distribution sites for the United manufacture starch, vegetable oil, con- eral aviation. States and worldwide,” Haacke says. fectioneries, frozen foods, ice cream, and Another business that is stepping up its bread and bakery products; can fruits MAGNET FOR INDUSTry logistics activities in the region is Hy-Vee, and vegetables; and produce dried dairy Some companies choose a location in a supermarket chain with more than 225 products. Northwest Iowa specifically because they stores in seven Midwestern states. Hy-Vee “Because we’re in the agriculture belt, can move product in and out of the area worked with the logistics department at many producers and supply-end produc- so efficiently. The transportation infra- Iowa State University to determine how to tion companies locate close by,” says Neal structure and strong local work ethic redesign its distribution network. Based Adler, executive director at the LeMars were major factors in electronics manu- on recommendations from that study, the Business Initiative Corp. Among the food facturer Coilcraft’s decision to enlarge its company currently is building a $3.77-mil- producers in the area are: Wells Dairy, distribution operation in Hawarden, even lion expansion to its distribution center in Inc., producer of Blue Bunny Ice Cream; 4 Inbound Logistics • July 2009 Connectivity Beyond Expectations BoDean’s Baking Group, which makes cones and sandwich wafers for ice cream Because we’re in the agriculture belt, (see sidebar, page 164); Advance Brands, which makes packaged meat products; many producers and supply-end production Associated Milk Producers Inc.; and “companies locate close by. Tyson Retail Deli Meats. – Neal Adler, executive director, LeMars Business Initiative Corp. A MANUFACTURED FIT Northwest Iowa also has attracted many ” companies involved in advanced manu- Iowa should have no trouble finding suit- a lease rate far less than in surrounding facturing and plastics.

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