Billions Ride on Iowa Airports’ Economic Impact
IA – The aviation industry in Iowa is so much more than getting vacationers to a sunny beach, families to reunions for the holidays, or business travelers to important meetings.
A new report from the Iowa Department of Transportation highlights aviation’s uses in Iowa and quantifies its role in Iowa’s economy. The report shows that aviation generates $6.4 billion in economic impact annually. This includes $1.8 billion related to airport activity and $4.6 billion to businesses that produce aircraft components and other aviation-related services.
The report shows how commercial air service, air cargo, general aviation, and other special aviation services are essential to Iowa and support business activity. Also included are the significant economic impacts of military aviation units at airports around Iowa and future implications from emerging segments, including Uncrewed Aircraft Systems, commonly referred to as drones.
“The aviation and aerospace industries provide important services and generate significant economic impact in Iowa,” says Iowa DOT Aviation Director Tim McClung. “However, the larger impact comes from the benefits users gain by having a strong aviation system that supports the movement of people and goods. A healthy and vibrant system is important to Iowa’s friendly business climate.”
The Cedar Rapids airport is on track to have the second-busiest year on record, with an anticipated 1.1 million passengers and has seen an increase in the total number of seats available, Marty Lenss said, the Director of the Eastern Iowa Airport. Beyond being one of Iowa’s eight commercial airports, The Eastern Iowa Airport supports air cargo, business aviation, aircraft services, and other activities.
The economic impact of the airport on the region is significant, Lenss said. It’s a key driver in job creation, recruiting businesses to the area, helping existing companies grow, and transporting products.
The Iowa Department of Transportation’s Aviation Economic Impact report found the industry has an annual impact of $6.4 billion in economic activity, supports nearly 41,000 jobs, and generates $124 million in tax revenue. Iowa has a total of 108 public-owned airports.
As the airport looks ahead to what comes after the final phase of its terminal modernization project, Lenss said it plans to focus on other growth opportunities, including air cargo and a partnership with Kirkwood Community College on the new Aviation Maintenance Technology Program.
Lenss said the new Aviation Maintenance Technology program would also help support area businesses, including BAE, Collins Aerospace, and Jet Air. Officials estimate 100 new jobs will be created because of this investment.
The airport also will be opening a new fixed-base operator, focused on private and charter air, and associated hangar in fall 2023.
“We will dramatically plus up the service level and that facility for those visitors… those visitors are really, ultimately, folks that are the decision-makers for bringing jobs to the region or relocating jobs from the region. So we want that to be a first-class experience like we have at the terminal.”