Iowa is quickly emerging as the Midwest’s best location for transportation and logistics business leaders. The state’s warehousing and transportation sector has grown significantly in recent decades, increasing employment by 12% from 2012 to 2021, thanks to its central location and continual advancements in technology and infrastructure.
This has been crucial for Iowa’s economic growth, providing competitive wages and showing robust expansion, especially in truck transportation, which is the largest subsector by employment.
Further, the Hawkeye State is investing heavily in industrial space development, data center construction, and other key innovations, making it a prime location for companies looking to grow. Keep reading to learn more.
TECHNOLOGICAL ADVANCEMENTS IN WAREHOUSING
Warehousing and logistics companies in Iowa have seen remarkable growth through technological advancements. Automation and robotics, including Automated Guided Vehicles (AGVs) and robotic arms, are now common in many warehouses throughout the state.
These technologies handle tasks with great precision, boosting productivity and cutting costs. They also allow businesses to use the space in their distribution centers more efficiently, offering easy access while reducing overhead expenses.
Moreover, the integration of the Internet of Things (IoT) is continuing to transform warehousing and manufacturing operations in Iowa. IoT-enabled sensors monitor conditions, track inventory in real-time, and enhance security. This technology ensures that products are stored properly and reduces the risk of damage or loss.
ADVANCED TRANSPORTATION SOLUTIONS
Investment and innovation in Iowa’s transportation network are also on the rise. The state has spent billions enhancing highways, bridges, and connections to major U.S. interstates like I-29, I-80, and I-35.
These improvements, combined with a reliable statewide rail system, several regional airports, and access to the Mississippi River, allow for efficient shipping throughout the country and expanded global market access.
This is further supported by recent technological innovations like advanced telematics. These systems provide real-time data on vehicle location, fuel usage, and driver behavior, which helps businesses optimize routes, save fuel, and manage fleets more effectively.
Moreover, the shift toward electric and hybrid vehicles also aligns with sustainable practices. These eco-friendly vehicles reduce carbon emissions and support Iowa’s commitment to environmental stewardship, while also lowering operational costs.
STRATEGIC LOCATION AND INFRASTRUCTURE
While technological innovations are incredibly beneficial, the importance of Iowa’s strategic location cannot be overlooked. The state sits at the crossroads of major highways and railways, offering easy access to regional, national, and international markets.
In cities like Altoona, the development of modern logistics parks and increased warehouse space are boosting Iowa’s reputation as a logistics hub. Altoona’s recent expansion, as detailed in its 2023 annual report, includes over 2 million square feet of new warehouse space, helping to attract new businesses and enabling existing ones to expand.
DATA CENTERS AND DIGITAL TRANSFORMATION
The expansion of cloud data centers in Iowa is crucial for the warehousing and transportation sectors. These facilities provide the necessary digital infrastructure to support advanced logistics cloud services, such as AI and big data analytics, which enhance supply chain transparency and improve operational decision-making.
Iowa’s attractive business real estate market and reliable energy sources make it an ideal location for data centers. Notable companies like Meta and LightEdge Solutions have built modern data centers in Altoona, driving economic development and creating lots of new jobs.
INCENTIVES AND SUPPORT FOR BUSINESSES
One of the most important things to consider when moving or expanding your logistics company is the local business environment.
Iowa offers a variety of incentives and support programs designed to attract and retain businesses. These include tax credits, grants, and low-interest loans, particularly for companies investing in warehousing infrastructure.
Business-friendly cities like Altoona offer assistance with site selection, permits, zoning, and tax abatement to make the process of leasing, buying, or building industrial space as streamlined and supportive as possible.
CONCLUSION
Iowa’s strategic position, coupled with its commitment to embracing cutting-edge technologies and providing a supportive business environment, makes it a standout choice for logistics and warehousing companies.
As the state continues to innovate within this sector, it not only reinforces its status as a crucial regional hub but also positions itself as a leading force in the national logistics landscape.
FIND BUSINESS REAL ESTATE IN ALTOONA
Ready to scale up your warehousing & transportation business in Iowa? Make the move to Altoona, a fast-growing city just 10 minutes east of Des Moines, to make the most out of your Iowa relocation.
A leader in Iowa economic development with an unrivaled location, robust transportation network, and plenty of industrial space for lease—Altoona is the best location for transportation and logistics business.
There were roughly 2.7 million square feet of warehouse space built or under construction in 2023. Plus, there are approximately 1,600 acres of development-ready land and an abundance of industrial buildings available throughout our community.
Whether it’s finding the right location, understanding incentives, or planning for future expansions—the City of Altoona can provide an array of resources to help you capitalize on this expanding business opportunity in Iowa.
Search our commercial property database or request additional information about how to relocate a business in Iowa’s leading logistics hub.