Why Not Ohio? Iowa Creating Wind Energy Jobs

[irishbobcat]

Why Not Ohio? Iowa Creating Wind Energy Jobs

A new study of Iowa's wind energy supply chain reports that 80 Iowa companies — including 50 manufacturers — already are engaged in the industry, but another 30 companies are poised to join the supply chain if demand increases.

The study, conducted by the Environmental Law and Policy Center, identified suppliers across the state, from locally owned small businesses to seven international manufacturing companies, that have ties to the growing industry. The 80 companies, including eight in the Quad-Cities, employ a total of more than 2,300 workers.

A majority are manufacturing components from the large turbine blades to the small electrical components. Large manufacturers — those employing more than 500 people — account for only 5 percent of the firms. However, they employ 68 percent of the workers.

But others are providing professional services such as maintenance, transportation, construction, marketing and other services.

"Wind energy creates good jobs and business growth across Iowa and across different sectors," said Howard Learner, the policy center's executive director and one of the study's authors.

Iowa ranks second nationally in total wind energy generation with the highest percentage of its electricity generated by wind at

20 percent.

Learner said it marked the first time a study identified the actual companies involved in wind power. "There's been a fair amount of anecdotal evidence about wind power jobs in Iowa. ... but what we set out to do was identify as much as we can about who's who and what's what in the wind manufacturing industry."

Iowa has been aggressive in its efforts to build the renewable energy jobs — investing $100 million in the Iowa Power Fund, which encouraged research and development. It also has offered tax credits to retain and develop business.

But the report notes that strong regulatory and tax policies are key to growing any industry.

"Smart policies can bring more wind businesses to Iowa. That's good for both economic growth and better environmental quality," he said. The study's findings were reported to policymakers, environmental leaders, business leaders and others in the industry.

Tara Barney, the CEO of the Quad-Cities Chamber of Commerce, said Iowa is well-suited to support the growing industry because of its "world-class transportation systems and educated, skilled work force.

"With appropriate policies in place, there will be tremendous opportunity for expansion of the wind industry in Iowa," she added.

In the Quad-Cities, these businesses already are part of the wind supply chain: Alter Barge Line and Rogan Inc., Bettendorf; Howard Steel, Quad-City Safety, Ryan Companies US and Treiber Construction Co., all in Davenport; and Gerdau Ameristeel and Mehta Tech, both in Eldridge, Iowa.

One of the largest manufacturers is Acciona Windpower in nearby West Branch, which opened a $30 million wind turbine generator in 2007. It is credited with creating more than 1,000 direct and indirect jobs with the company and its suppliers.

Greg Lundgren, the president of Ryan Companies US Inc., Davenport, said the Acciona project was the company's entrance to the wind industry. It helped Acciona with site selection and then built the manufacturing plant.

"We've worked with a number of different manufacturers and a lot of that is in site selection," he said. "There are a lot of people looking for sites right now."

Ryan also has gotten into the development, construction and ownership of wind farms. "Typically, we're owning them in conjunction with partnerships," he said, adding that the farms are located across the country. Solar energy also is becoming another important part of Ryan Companies' business, particularly in the Southwest region.

But Lundgren said the wind energy market has grown soft between the state of the economy and the uncertainty of federal tax credits. "There's a lot of uneasiness with the European companies we're working with as to what the current administration's tax policies on energy will be."

Ashley Craig, the policy center's environmental business specialist and one of the study's authors, said  a similar study in Illinois was completed recently. It identified 104 companies in the wind supply chain. "I didn't set out thinking of Iowa as having as heavy of manufacturing as Illinois (in wind energy). But the more I studied it, the more I realized Iowa has a very heavy manufacturing sector."

Now that the research is done, Craig said, "We'll likely hear of even more companies, which is terrific. That is part of the goal."

Learner said that as other businesses learn of Iowa's strength in wind energy, it is likely to cause a clustering effect. "Business helps drive business, and Iowa may have more manufacturing jobs in wind energy than any other state in the country," he said. "Iowa has done a very good job of targeting the wind energy industry, and that's paid off in terms of growth."

To date, the Quad-Cities has yet to land one of the large wind energy manufacturers despite site visits from companies all across the globe.

"We've had a number look at the Quad-Cities, and there are a number of entities that seriously have the Quad-Cities on their map,'' Lundgren said. "I truly do believe that the Quad-Cities will get its share of the wind energy business."