Aviation generates $6.4 billion in economic impact every year in Iowa, according to the 2022 Iowa Aviation Economic Report.
This includes $1.8 billion related to airport activity and $4.6 billion to businesses producing aircraft components and other aviation-related services. Even larger impacts are created through commerce supported by the movement of people and goods by air, according to Iowa Department of Transportation officials.
The new report notes that economic activity “is the sum of payroll and spending by organizations linked to aviation.”
The executive summary encourages us to think of annual economic activity “as dollars flowing into the state’s economy as a result of aviation activity. This figure includes businesses located on and off airports, construction activity, and visitor spending.”
Nearly 41,000 jobs are supported by aviation activities in Iowa.
In addition to economic impacts, aviation activity generates $124 million in tax revenue annually, the report continues.
By the numbers
- More than 250 businesses on airports
- More than 3,000 aircraft
- More than 400 agricultural aircraft
- 62 FBOs support more than 500 jobs
- More than 5,700 pilots
- $105 million annual capital spending at the state’s airports
- $1 of capital expenditures at airports correlates to $16 of annual economic benefit to the state’s economy
- More than 1 million visitors each year
- $425 million from visitor spending
According to state officials, information in the new report “is expected to assist aviation stakeholders, including local, state, and federal officials, in making informed decisions related to operations and investments in Iowa’s air transportation system.”
“It will also be used in educating the public on the uses and benefits of aviation in Iowa,” they added.
The full report, executive summary, fact sheet, and other materials, including videos, are available on the Iowa DOT’s Aviation website. Individual reports for each airport are listed on their corresponding Airport Information page, officials add.
These economic impact studies are completely worthless. State and local aviation official pay expensive consultants who use a contrived formula that has no real relevance to the bottom line – are airports running in the red or the black, and how much of their revenue is in fact from local, state and federal grants – all of which is from taxpayers. Iowa’s entire state annual budget is under $9b. If this economic impact report were true, then the state should stop al other activities other than airports as they are clearly very lucrative. This report for Iowa DOT was prepared by “Jviation, a Woolpert Company, is a planning, engineering, architecture, survey and construction administration firm that focuses on aviation-related projects.” They are based in California, which speaks volumes. Whenever a government entity tries to justify its existence based on a “study” it paid a third party to create, you know you are about to be fleeced. Look at private airports for examples of how to run an airport at a profit, no economic impact studies needed.