10 Fastest Growing Industries in Iowa Right Now

Industries in Iowa

Iowaโ€™s economy continues to evolve, creating opportunities across multiple industries.

Several factors contribute to this progress, including technological advancements, workforce development, and supportive government policies.

The industries listed here have demonstrated rapid expansion, with clear indicators of sustained growth.

While certain industries in Iowa are experiencing rapid growth, labor conditions remain a key concern, especially in lower-wage sectors. Learn more about how the minimum wage impacts the job market.

1. Gambling & Gaming Industry

Did you know sports betting is now bigger than ever?

The gambling and gaming sector in Iowa has surged due to regulatory changes and increasing public interest.

Sports betting has led to significant revenue growth, while casinos continue to expand their operations, especially those you can find at casinos.com.

Online platforms have also contributed to this rise, attracting new players who prefer digital options.

  • The introduction of sports betting has boosted state revenue, creating new opportunities for businesses and gamblers alike.
  • Established casinos have expanded their offerings, increasing gaming tables, slot machines, and entertainment spaces to attract more visitors.
  • Digital betting platforms have gained traction, appealing to those who favor the convenience of mobile and desktop wagering.

The economic benefits of this industry go beyond the casinos themselves. Job creation has spiked, providing employment opportunities in hospitality, security, and customer service.

  • Growth in the sector has led to job openings in casino management, food service, customer support, and security.
  • Out-of-state visitors contribute to local businesses, restaurants, and hotels, enhancing economic activity.

Cities such as Des Moines, Council Bluffs, and Davenport have experienced growth due to casino expansions and sports betting lounges.

  • These cities have seen increased investments in infrastructure, restaurants, and entertainment hubs linked to gaming establishments.
  • Dedicated spaces for wagering on sports events have drawn in sports enthusiasts, further driving economic activity.

Entertainment venues have also capitalized on this sector, integrating gaming attractions to draw larger crowds.

Concerts, live shows, and themed events have been added to casino offerings to appeal to a broader audience.

To remain a leading destination for gaming, Iowa continues to invest in facilities and tourism-focused initiatives.

2. Renewable Energy & Wind Power

Wind Turbine Farm near Victor, Iowa
Wind Turbine Farm near Victor, Iowa|YouTube Screenshot/Iler Imaging

Iowa has established itself as a leader in renewable energy, with wind power playing a central role in electricity generation.

The state produces a significant share of its energy through wind turbines, ranking among the top producers in the nation.

Job creation & economic growth:

  • The demand for wind turbine technicians has increased, offering stable and well-paying careers.
  • Renewable fuel production, particularly ethanol and biodiesel, has contributed to industry expansion.
  • Government incentives have attracted businesses eager to support clean energy efforts.

Private sector & business integration:

  • Companies are adopting solar and wind power solutions to reduce operational costs and improve efficiency.
  • Farmers and landowners are leasing property for wind farms, generating an additional source of income.

Advancements & prospects:

  • Ongoing developments in energy storage and transmission enhance reliability and efficiency.
  • Investments in research and infrastructure reinforce Iowaโ€™s commitment to clean energy initiatives.

3. Advanced Manufacturing

From farm equipment to aerospace partsโ€”manufacturing in Iowa is getting smarter

Manufacturing remains a key driver of Iowaโ€™s economy, contributing billions of dollars each year. The stateโ€™s industrial output spans multiple sectors, including industrial chemicals, food production, and precision machinery.

The integration of automation and smart technology has reshaped production methods, making operations more efficient and cost-effective.

Automation & Technological Integration

Companies are investing in robotics and artificial intelligence to streamline operations. These advancements improve efficiency while reducing dependency on outdated processes.

Smart manufacturing enhances quality control and precision, meeting industry demands.

Workforce Development & Training

The demand for highly skilled workers has grown, leading to expanded training programs. Technical education initiatives ensure employees are equipped to manage modern machinery.

Partnerships between businesses and educational institutions help bridge skill gaps.

Industry Expansion & Infrastructure Support

High-tech manufacturing facilities continue to emerge across the state. Iowaโ€™s transportation network allows for seamless distribution of manufactured goods. Increased demand for high-quality products fuels further investment and innovation.

With continuous technological advancements and strong infrastructure, Iowaโ€™s manufacturing sector remains a driving force in economic growth.

4. Agriculture & Food Processing

Iowa produces enough corn each year to fill over 10 million Olympic swimming pools|YouTube Screenshot/Iowa Farm Bureau

Iowa has long played a dominant role in agriculture, supplying a significant portion of the nationโ€™s corn, pork, and soybeans. The food processing sector continues to grow, meeting increasing demand at home and abroad.

Meat processing facilities, dairy production, and packaged food operations contribute substantially to the stateโ€™s economy, reinforcing Iowaโ€™s position as an agricultural powerhouse.

Global Influence & Economic Impact

Exports remain a crucial revenue source, with international markets shaping demand for Iowaโ€™s agricultural products. Trade agreements and commodity pricing influence profitability for farmers and food processors.

Logistics and distribution networks ensure products reach consumers efficiently across various regions.

Technological Advancements & Efficiency Gains

Modern farming equipment and precision agriculture techniques allow for higher yields and improved resource management.

Automation in food processing facilities has streamlined production while maintaining quality and safety standards. Investments in biotechnology and crop research have enhanced disease resistance and sustainability.

Sustainable & Consumer-Driven Trends

The shift toward organic and environmentally conscious farming practices has created new market opportunities. Companies specializing in food packaging and safety have benefited as consumers prioritize freshness and convenience.

Research and development initiatives continue to shape the future of agriculture, ensuring long-term productivity and innovation.

5. Healthcare & Home Health Services

University of Iowa Stead Family Children's Hospital Tour
University of Iowa Stead Family Children’s Hospital Tour||YouTube Screenshot/University of Iowa

An aging population has led to a growing demand for healthcare services, particularly in home health care. The need for nurses, medical assistants, and caregivers continues to rise, with job openings surpassing the number of available workers.

Hospitals and clinics are expanding to offer specialized care, ensuring that patient needs are met across a wide range of medical fields.

Workforce shortages remain a challenge, prompting higher wages and additional incentives to attract healthcare professionals.

The situation is even more pressing in rural areas, where access to medical care is a persistent concern. Many communities struggle to retain skilled providers, leading to increased reliance on alternative solutions.

Telehealth has played an important role in addressing these gaps, enabling patients to consult with doctors and specialists without the burden of travel.

Government initiatives and private sector investments continue to strengthen healthcare infrastructure, improving efficiency and broadening access to essential services.

6. Distribution & Warehousing

Amazon fulfillment center
Amazon fulfillment center|YouTube Screenshot/Simply Tech

Iowaโ€™s central location has positioned it as a key player in logistics and distribution.

Major highways and rail networks provide businesses with efficient connections to national and international markets, fueling the expansion of warehouses and fulfillment centers.

E-Commerce Growth & Increased Demand:

  • The rise of online shopping has created a need for larger storage spaces and faster shipping solutions.
  • Companies such as Amazon and Walmart have developed large-scale facilities, bringing thousands of jobs to the region.
  • Smaller businesses benefit by using distribution hubs to scale operations more effectively.

Infrastructure & Connectivity Enhancements:

  • Road expansions and intermodal transport facilities improve freight movement and delivery speeds.
  • Rail networks and trucking routes link Iowa to major economic hubs, reducing supply chain delays.

Economic Impact & Future Outlook:

  • Investments in automation and warehouse technology enhance efficiency and job opportunities.
  • Businesses continue to prioritize streamlined supply chains, ensuring steady growth in the sector.

7. Information & Communications Technology

Iowa has emerged as a growing hub for technology companies, attracting major players such as:

  • Google
  • Facebook
  • Microsoft

These corporations have built large-scale data centers across the state, driving demand for skilled IT professionals in fields like cybersecurity, networking, and software development.

The influx of these industry leaders has strengthened the stateโ€™s digital economy and created a ripple effect for smaller businesses looking to capitalize on technological advancements.

The rise of startups has also contributed to the expansion of the sector, with entrepreneurs leveraging Iowaโ€™s supportive business environment to launch new ventures.

Improved rural broadband access has played a key role in this transformation, allowing businesses in previously underserved areas to connect with global markets and operate with greater efficiency.

8. Construction & Infrastructure Development

New commercial and residential projects continue to drive growth in the construction sector. The demand for skilled laborers, engineers, and project managers is increasing as businesses and communities invest in expansion efforts.

With more companies establishing operations and existing businesses expanding, the need for modern infrastructure remains a pressing priority.

Government investments in roads, bridges, and renewable energy infrastructure have played a significant role in job creation.

These projects not only improve connectivity and efficiency but also generate long-term economic benefits.

Public-private partnerships have been instrumental in moving large-scale developments forward, allowing for quicker execution and resource allocation.

Housing demand has surged, leading to a steady rise in residential developments across both urban and suburban areas. With Iowa attracting new residents and businesses, construction activity remains strong.

New housing projects aim to accommodate population growth while commercial developments support economic expansion.

Industrial zones, office spaces, and mixed-use properties are becoming increasingly common as developers work to meet the needs of a changing economy.

9. Transportation & Trucking

Iowaโ€™s truckers move over 700 million tons of freight annuallyโ€”enough to circle the Earth multiple times!|YouTube Screenshot/CNBC

The trucking industry remains a vital part of Iowaโ€™s economy, with demand for drivers and logistics specialists reaching record levels.

Supply chain disruptions have underscored the need for efficient transportation networks, leading to significant investments in trucking technology.

Workforce & Job Demand:

  • Driver shortages continue to pose a challenge, pushing companies to offer higher wages and better benefits.
  • Logistics professionals are in demand as companies work to optimize routes and improve supply chain efficiency.

Technological Advancements:

  • Autonomous and electric trucks are gaining traction, with companies testing ways to cut costs and reduce emissions.
  • Real-time tracking and fleet management software have improved delivery accuracy and efficiency.

E-commerce & Freight Growth:

  • Online shopping has fueled the need for reliable freight transport, increasing demand for both short-haul and long-haul trucking.
  • Warehousing and distribution centers have expanded to accommodate growing shipment volumes.

Strategic Location & Infrastructure:

  • Iowaโ€™s central position ensures that it remains a key player in national transportation networks.
  • Investments in highway infrastructure support the industryโ€™s continued growth and efficiency.

10. Hospitality & Restaurant Industry

Consumer demand for dining out and food delivery has fueled expansion in the restaurant sector.

New establishments continue to emerge while existing businesses adjust to evolving trends.

Growth & Market Trends:

  • The rise of fast-casual dining, ghost kitchens, and food halls has reshaped the industry.
  • Takeout and delivery services have surged, driven by consumer preference for convenience.
  • Culinary innovation and international cuisine options have broadened choices for customers.

Labor Market & Economic Impact:

  • Labor shortages have led to wage increases, making food service roles more competitive.
  • Staff retention efforts, such as flexible scheduling and employee benefits, have gained traction.
  • Tourism boosts revenue, with visitors contributing to dining and lodging businesses.

Technology & Industry Adaptation:

  • Digital ordering platforms and automated kitchen systems streamline operations.
  • Contactless payment and reservation apps enhance customer experience.
  • Data-driven menu planning helps restaurants optimize costs and reduce waste.

Restaurants and hotels must refine strategies to maintain long-term success.

The Bottom Line

Iowaโ€™s economy is shifting, with several industries showing rapid expansion.

While opportunities continue to emerge, challenges such as workforce shortages and technological advancements must be addressed.

With strategic investments and continued innovation, the state remains on a path of economic progress.