The Iowa Association of Business and Industry has released the results of its latest quarterly survey with statewide business leaders. The survey, conducted in early March, shows leaders are concerned about tariffs, plan to keep staffing levels the same and expect to make capital investments this quarter.

Highlights from the survey include:

• Capital expenditures: 64% of respondents intend to make capital expenditures this quarter.
• Workforce trends: 86% of businesses expect the number of employees to remain unchanged, which ABI said signals stability in workforce demands.
• Trade policy: 80% of respondents are concerned with tariffs. Nearly half of businesses are very concerned over tariffs on Canadian or Mexican goods, and 60% of respondents are somewhat concerned about tariffs on Chinese imports.

According to ABI, business leaders are closely monitoring trade policy developments to understand the potential impact on supply chains and costs. Companies are also increasingly turning to artificial intelligence while investing in workforce training. Overall, business sentiment on the economy remains cautious, with most respondents expressing a neutral outlook, the report stated.

“Despite economic uncertainties, Iowa businesses remain focused on finding opportunities for growth and innovation,” Nicole Crain, ABI’s president, stated in a press release. “Their ability to adapt and invest in the future is what keeps our state’s economy strong.”