Iowa might be famous for corn fields and county fairs, but the state's business landscape tells a different story. The Hawkeye State is home to corporate giants generating over $46 billion in combined revenue and employing more than 400,000 people across industries you wouldn't expect.
Two Fortune 500 companies anchor Iowa's economy
Let's start with the heavy hitters that put Iowa on the corporate map.
Principal Financial Group leads the pack
Principal Financial Group isn't just Iowa's biggest public company… it's a global financial powerhouse generating $16.1 billion in annual revenue. Based in Des Moines since 1879 (when it was called Bankers Life Insurance Company), Principal now employs 20,000 people worldwide and operates in 27 countries.
The company's 45-story headquarters at 801 Grand Avenue isn't just another office building. It's the tallest structure between Denver and Chicago, which basically makes Des Moines the skyscraper capital of the Great Plains. Not bad for a city some people still think is just farmland.
Principal offers everything from retirement planning to investment management and insurance products. If you're curious about their stock performance, they trade under the ticker PFG. And yes, they're hiring if you want to work in that really tall building.
Casey's General Stores proves small towns mean big business
Here's something that'll blow your mind: Casey's General Stores is the fifth-largest pizza chain in America. Yes, the gas station. The one with annual revenue of $14.86 billion.
Donald Lamberti started with one leased store in Boone back in 1959. Today, Casey's operates over 2,500 locations across 16 states and employs 16,891 people from their Ankeny headquarters. Their secret? They figured out that nobody was properly serving towns under 5,000 people. While other chains fought over city corners, Casey's quietly became the go-to spot for rural America.
And about that pizza thing… they make it from scratch in every store. Apparently, nothing pairs better with unleaded gasoline than hand-tossed pepperoni.
Hy-Vee dominates as Iowa's largest private employer
If you've never experienced Hy-Vee, imagine a grocery store that decided to become everything. We're talking about 88,000 employees and an estimated $12-13 billion in annual revenue.
The West Des Moines-based chain started in 1930 in tiny Beaconsfield, Iowa. Founders Charles Hyde and David Vredenburg had this radical idea: what if employees owned part of the company? They introduced profit-sharing in 1933 and established an Employees' Trust Fund in 1960. Today, Hy-Vee workers are legitimate co-owners in the business.
This ownership model created something special. Walk into any Hy-Vee and you'll understand their slogan "A Helpful Smile in Every Aisle" isn't just marketing fluff. These people actually care because they have skin in the game. The company donated $59 million to communities in 2020 alone.
Modern Hy-Vee stores are basically small cities. You can grab groceries, eat at a full-service restaurant, visit a health clinic, and get financial advice… all before lunch. They operate over 550 locations across eight states, proving that employee ownership and Midwestern nice can scale.
Manufacturing giants keep Iowa's industrial heart beating
Iowa's manufacturing sector contributes $35.2 billion to state GDP and employs 261,000 workers across 4,164 companies. But some recent headlines haven't been pretty.
John Deere faces tough times
Those iconic green tractors aren't rolling off assembly lines quite as fast these days. John Deere employs about 6,700 people across five Iowa facilities, with the massive Waterloo Works housing 5,000 workers alone. But the agricultural downturn hit hard.
The company announced over 1,600 layoffs in 2024, with another 345 positions cut in Waterloo. When farmers struggle, equipment manufacturers feel the pain too.
Pella Corporation celebrates 100 years of windows
Here's a fun fact: Pella Corporation started because someone invented retractable window screens. Pete and Lucille Kuyper invested their entire $5,000 life savings in 1925 to buy the company. Smart move.
Today, Pella employs 7,000 people across 18 facilities and holds over 150 patents, including their Hidden Screen technology. They just celebrated their 100th anniversary, which in business years is basically achieving immortality.
The Dutch immigrant community in Pella built something remarkable. What started as a window screen company became a premium manufacturer that transformed their small town into an economic powerhouse. Not bad for a place most people only know for tulips.
Other manufacturing standouts
Several other manufacturers keep Iowa's factories humming:
- HNI Corporation in Muscatine: $2.5 billion in revenue, 7,500 employees, making office furniture
- Vermeer Corporation in Pella: 3,400 employees, family-owned since 1948
- Collins Aerospace in Cedar Rapids: 9,000 Iowa employees building aerospace systems
Finance and insurance drive Iowa's GDP
Here's something that surprises everyone: Iowa's finance and insurance industry contributes $47.82 billion to state GDP. That's more than manufacturing or agriculture.
Des Moines alone hosts 180 insurance companies. The entire state has 7,000 financial services firms employing 95,000 professionals. Wells Fargo runs a massive operations center with 13,000+ employees. EMC Insurance, Farm Bureau Financial Services, and Wellmark Blue Cross Blue Shield all call Iowa home.
Why did all these financial companies pick Iowa? It started with farmers needing crop insurance and rural communities requiring accessible banking. Add in a stable business environment, educated workforce, and Midwest work ethic, and you've got a recipe for financial services success.
Healthcare systems employ tens of thousands
Iowa's healthcare giants function as economic anchors in communities statewide.
UnityPoint Health leads the pack with 32,000+ employees running 17 hospitals and over 400 clinics. They handle 8 million patient visits annually, which is roughly three visits for every person in Iowa (though obviously some folks visit more than others).
MercyOne employs 20,000 people across 40+ hospitals and 230 facilities. The University of Iowa Health Care adds another 15,000+ employees while serving as the state's only academic medical center.
Healthcare keeps growing even when other sectors struggle, adding 4,900 jobs annually. Turns out people need medical care regardless of corn prices.
Technology emerges as Iowa's new frontier
Workiva proves you don't need Silicon Valley to build a tech unicorn. The Ames-based company generates $739 million in revenue with cloud-based financial reporting software used by Fortune 500 companies worldwide. They even made Fortune's 100 Best Companies to Work For list.
Iowa's commitment to renewable energy attracts major tech players too. The state generates over 60% of electricity from wind power. Google, Facebook, and Microsoft all built data centers here because, turns out, servers love clean energy as much as Iowans love sweet corn.
MidAmerican Energy operates 7,000+ megawatts of wind capacity, while Alliant Energy plans to add 1,000 megawatts in a $3+ billion investment.
The bioscience sector shows promise too, with companies like NewLink Genetics developing immunotherapy treatments in Ames. The Iowa Biotechnology Association includes 45+ companies, and bioscience employment grew 8% from 2016-2021.
Current challenges test Iowa's resilience
Not everything's coming up roses in Iowa. The agricultural downturn ripples through the entire economy.
Agricultural sector struggles
Iowa produces 19% of America's corn, 17% of soybeans, and 30% of pork. When commodity prices tank, everyone feels it. In 2024, 23 agriculture-related businesses filed layoff notices affecting 4,097 workers.
The damage extends beyond direct job losses:
- Kinze Manufacturing cut 190 positions
- Pure Prairie Poultry closed abruptly
- Total economic impact reached 11,400 jobs
- $1.5 billion in reduced statewide activity
Workforce shortages create paradox
Here's the weird thing: Iowa has 70,000 job openings but only 53,000 unemployed people. The math doesn't work.
Since 2020, 77,000 working-age men left Iowa's workforce, costing $10 billion in lost GDP. Companies can't find workers, workers can't find the right jobs, and everyone's frustrated.
The good news? Labor force participation recently increased to 67.2% with businesses adding 5,000 jobs. Baby steps, but steps nonetheless.
Why companies choose Iowa
Despite challenges, Iowa offers compelling advantages for businesses.
Location and logistics
Being in the middle of America has perks. Companies can reach most U.S. markets within two days. Chicago, Minneapolis, Kansas City, and St. Louis are all easy drives. Plus, Interstate 80 runs straight through, connecting both coasts.
Business-friendly environment
Iowa consistently ranks among the most business-friendly states. They're cutting individual income taxes and the government actually responds when businesses need help. Novel concept, right?
Education and workforce
Iowa State University and the University of Iowa pump out skilled graduates every year. The state's agricultural heritage created a work ethic that companies love. Iowans show up, work hard, and don't complain much. It's like finding employees from the 1950s but with modern skills.
Cost advantages
Everything costs less in Iowa:
- Commercial real estate
- Utilities
- Housing
- Pizza from Casey's
- Pretty much everything except coastal sushi
Looking ahead
Iowa Business Council members are "bullish" about 2025, with the economic outlook index jumping to 65.63 in Q4 2024. That's economist speak for "things are looking up."
The state must address workforce shortages and population challenges. But with $202 billion in GDP and companies spanning finance, manufacturing, healthcare, retail, and technology, Iowa's economy shows remarkable resilience.
These businesses… from Principal Financial Group's global insurance empire to Casey's gas station pizza dynasty… prove that location matters less than vision, values, and good old-fashioned hard work. Iowa companies compete globally while maintaining Midwest values of employee ownership, community investment, and long-term thinking.
So next time someone dismisses Iowa as "flyover country," remind them that those cornfields hide corporate giants, innovative manufacturers, and technology pioneers. The Hawkeye State's largest businesses don't just contribute to the economy. They're redefining what it means to build successful companies in America's heartland.
And yes, you should definitely try Casey's pizza. It's weirdly good.
