The Iowa Association of Business and Industry (ABI) has released the results of its quarterly business survey, looking at concerns and expectations of ABI members going into the third quarter of 2024.

The survey was sent to ABI’s board in mid-June before the floods in northwestern Iowa, a news release said.

The survey results revealed several pressing issues for Iowa businesses, according to the release. Persistent high costs and overhead expenses, coupled with delays in customer spending and increased competition, are affecting profitability and cash flow. Concerns also include challenges related to the cost of product/service inputs and an unfavorable business climate both in the U.S. and globally.

Respondents said some strategies they are using to respond to challenges are increasing inventory, pursuing acquisitions, closely monitoring costs and focusing on talent retention.

However, respondents shared they are anticipating stability in the third quarter:

• Sixty percent of respondents expect sales to stay the same in the third quarter.
• Fifty-seven percent of respondents plan to make capital expenditures in the third quarter of 2024, maintaining the same level of expectation as in Q2.
• Eighty-five percent of respondents expect their employee numbers to remain about the same.
• More than 50% of survey respondents are neutral about the overall economy going into the third quarter of 2024.

“Iowa businesses and ABI members are facing complex challenges, from political and economic
uncertainties to specific industry issues,” ABI President Mike Ralston said in a prepared statement. “Despite these hurdles, they’re demonstrating adaptability and strategic planning to ensure long-term success.”

“Election years always bring a certain level of unpredictability, and this year is no different,” he said. “Our members look forward to focusing on growth and stability in their businesses.”

To view results from previous surveys, visit iowaabi.org.