From artificial intelligence to cost inputs, tariffs, workforce shortages and planned capital expansions, a panel of local business leaders offered a glimpse into their operations during the QCBJ’s fifth annual Economic Review.
Part of the Wednesday, May 13, event, the diverse industry panel included a mix of small, large, private and public employers. The panel covered a wide range of topics their businesses face in today’s global and local economy. A crowd of more than 200 gathered at the event at Rhythm City Casino in Davenport and also learned of planned expansions and modernization projects the panelists’ employers have underway.
The panel included: David Collier of the Arconic Davenport Works; Andrea Crawford, George Evans Corp.; Joe Hoinkis, LyondellBasell Clinton Complex; Col. William “Joe” Parker III, Rock Island Arsenal; and Bob Shaw Jr., Shaw Electric. The discussion was moderated by First Central State Bank President and CEO Brigham Tubbs. The event was presented by First Central State Bank and Morgan Stanley.
In addition, Michael Gapen, Morgan Stanley’s chief U.S. economist and an Augustana College alum, served as the keynote speaker.
Here’s a look at some of the local panel’s responses and main topics:
Current climate
Mr. Hoinkis, the site manager of the global petrochemical company in Clinton, Iowa, said the ongoing military conflict in Iran and its impact on the global oil market actually is helping drive up prices for LyondellBasell’s main product — polyethylene plastic. With foreign oil supplies not being used now in the production of polyethylene, he said, “There’s a sudden shortage in the product in that part of the world.”
“We’re doing a lot of export. That has tightened up the supply here in the United States which is also driving the domestic pricing. It’s actually a windfall for our particular industry,” he said.
Downriver in Riverdale at Arconic’s aluminum plant, where Mr. Collier is the manufacturing manager, work is progressing to expand its production capacity of High Purity Aluminum (HPA). “When you think about domestic ability (to produce HPA) vs. having to import, we’ve been on the good side of that,” he said, adding that about $400 million has been invested in new infrastructure and equipment at Arconic Davenport Works.
Mr. Shaw, a fourth generation owner of the electrical engineering company bearing their name, said the Davenport company also relies on the health — and growth — of the region’s industrial, manufacturing and petrochemical industries for its livelihood.
He said 70% of the current workload for its 200-employee workforce is tied to that sector. The remaining 30% comes from business and commercial construction and “data centers have become a big part of our business here in the last couple years.”
That growth, however, also is making local labor shortages a concern — particularly as “hyperscale data projects in Cedar Rapids” pull away a tremendous amount of regional labor, Mr. Shaw said.
Workforce issues
Recruiting and training workers is an issue most of the represented companies — and others — continue to face and tackle.
Ms. Crawford, who leads the George Evans Corp. as president and CEO for the Evans family (its owners for 110 years), said her team is seeking out new ways to recruit new workers to its small manufacturing plant in Moline. Solutions range from enlisting a high school apprentice, who she would regularly see step off the bus to work his shift, to hiring those transitioning back to the workforce after incarceration.
“We’re working with the local community colleges and high schools to work through their (workforce development) programs. We also work with recently released individuals and we’ve had some good and bad experiences with that. But we also like to provide opportunities to everyone for skilled and trainable workers.”
George Evans Corp. manufactures steel racks and reels for the wire and cable industries as well as the oil industry.
Mr. Hoinkis, who joined the Clinton chemical complex four years ago, said LyondellBasell and other area manufacturers collectively took action to remedy a shortage of local trained operators. A transplant from the Gulf Coast, he recalled a similar effort in the Houston Ship Channel where all the community colleges collaborated to train workers for the skilled job openings there.
“We didn’t have something here in Iowa to do that. So we got together with local industry, over in Cordova (Illinois) and we worked with EICC to get a program started” to train students in chemical plant processes. “Right now, it is a two-semester course and we give the students the basics” in chemical processing and operations, he said. The program had its first graduate in April and is beginning a second cohort.
“That’s the way we had to build the workforce in Clinton and in the area. We’ve got to be able to have a clear path from high school into one of these jobs,” Mr. Hoinkis said crediting Eastern Iowa Community Colleges’ partnership.
Modernization plans
Besides multi-million-dollar projects at Arconic and a major plant maintenance shutdown ahead at Lyondell, even the small QC manufacturers are eyeing modernization and new technologies.
George Evans is looking to consolidate its two locations into one and exploring the region, said Ms. Crawford. “But as we look at building a new facility, … we’re also looking at it from a safety standpoint — where can we put a robot for safety.”
But she stressed “As we try to evaluate what our people are good at, what they’re not, and how do we update and use AI to do the things our people aren’t great at — we’re looking at these opportunities.”
Col. Parker, the U.S. Army Garrison commander at the Rock Island Arsenal, discussed how the $100 million approved by Congress in the FY 2026 defense appropriations bill for the arsenal is helping the island position for the future. With the federal investment, he said the Arsenal, and its Joint Manufacturing Technology Center (The Factory), will be focusing on modernizing its equipment and infrastructure as well as its capabilities.
He reminded the crowd that not only are many arsenal facilities circa 1862, but the island also is one of the largest industrial facilities in the U.S. Army and home to the world’s largest 3D printer.
“Obviously from a workload perspective, we want to see larger and more predictive workloads,” he said. In addition, he said the arsenal is looking to open up more commercial partnerships “and looking at opportunities to conduct business with John Deere, Arconic and even small business.”
Like the commercial sector, he said the federal government and military also are focused on reducing staff overhead costs. “We do a lot of what’s called LOGCAP (Logistics Civil Augmentation Program), so contracting folks like contractors for global contracts supporting contingency operations. So that will always kind of ebb and flow based on what’s going on.”
Asked by Mr. Tubbs about any misconceptions about the Arsenal, Mr. Parker jokingly said contrary to what the Quad Cities community believes “There is not a tunnel under the Mississippi River.”
Additionally, he said “It’s not impossible to get on the Rock Island Arsenal Island. The gate is not as insurmountable as it looks.”
