THURSDAY, JAN. 7, 2021 | IN THIS ISSUE

• Van Meter moves into Kansas market with acquisition
• CBJ Editorial: FCC bridges the rural divide
• State reports increase in jobless claims
• Ingredion laying off 35 as part of ethanol shutdown
• CBJ announces 2021 Economic Forecast Luncheon livestream 
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
Van Meter moves into Kansas market with acquisition
Cedar Rapids-based electrical and manufacturing supplier Van Meter Inc. has expanded into Kansas with the purchase of Mid-West Electrical Supply in Wichita, the company announced in a news release.

The sale officially closed Dec. 31, and the Wichita location is now open for business as Van Meter.

“Wichita represents the largest electrical market in the state of Kansas,” Van Meter president and CEO Lura McBride said in the release. “Establishing a physical presence in a sizable market, less than 200 miles from our regional branch and wire innovation center in Kansas City, positions us for desired growth and an opportunity to leverage our inventory, supplier relationships, and salespeople across an expanded territory.”

Mid-West Electrical Supply was previously owned and managed by Randy Cubbage, who remains active in the business as an outside sales account manager and employee-owner of Van Meter. Robert Dale, an existing Van Meter employee-owner, will serve as a dedicated inside sales resource.

Van Meter is the 26th largest electrical distributor in the United States and currently has 14 electrical supply locations in Iowa, Nebraska and Virginia.

PHOTO: Van Meter's office in Cedar Rapids.
CBJ Editorial: FCC bridges the rural divide
In mid-December, the Federal Communications Commission allocated more than $9 billion to expand rural broadband across the United States over the next decade.

While this effort has been in the planning for years, the success of the resulting broadband auction was as if the FCC had grasped the political implications of the recent presidential election, which had a stark urban versus rural divide. This single initiative by the independent government agency responsible for implementing and enforcing America’s communications law is an important step toward helping keep rural Americans from falling further behind more urban regions.

And it could help lessen the nation’s deep political divide, all while complementing the Empower Rural Iowa initiative spearheaded by Iowa Gov. Kim Reynolds.

“Access to high-speed internet access is an essential part of everyday life,” Ms. Reynolds said in a news release. “The FCC’s Rural Digital Opportunity Fund builds on the efforts we have underway through my Empower Rural Iowa initiative as well as significant funds we have allocated through the CARES Act.”

Iowa’s portion of the $9 billion equals about $144 million, which will go to 11 rural broadband providers as part of the Rural Digital Opportunity Fund.

We expect this initiative to help providers like South Slope Cooperative in North Liberty continue its important networking work in the rural areas of the Corridor.

“At this time any companies that participated in this reverse auction are bound by a very strict quiet order so I am unable to comment on this auction until this order is lifted,” Chuck Deisbeck, CEO of South Slope Cooperative, said in an email.

The providers have 10 years to build the networks, with incentives to do so sooner rather than later. The FCC said the auction covered more than 5 million homes and businesses in 49 states. In about 85% of locations, the providers promised ultrafast “gigabit” speed, the agency said. Most of the remaining locations would see download speeds of at least 100 megabits a second, capable of large downloads, according to an article in the Wall Street Journal.

“I’m thrilled with the incredible success of this auction, which brings welcome news to millions of unconnected rural Americans who for too long have been on the wrong side of the digital divide,” said FCC Chairman Ajit Pai in a news release. “They now stand to gain access to high-speed, high-quality broadband service.”

In August, the state allocated $50 million in CARES Act funding to improve rural broadband access.

It’s important that the state legislature and the federal government continue to explore other ways to help rural America grow in 2021. Having two Americas divided by geography and economics is not a promising situation for our collective future. This is a step in the right direction.
State reports increase in jobless claims
Initial unemployment claims in Iowa bounced up for the week ending Jan. 2, Iowa Workforce Development officials reported today.

A total of 8,236 initial claims were filed between Dec. 27 and Jan. 2, an increase of 1,095 from the previous week's 7,141 initial claims, IWD officials said in a release. Continuing weekly unemployment claims also increased to 43,901, up 5,878 from the previous week. 

Unemployment claims in Iowa are typically highest during the months of November through February, officials said, due to seasonal layoffs in the construction, agricultural, landscaping and manufacturing sectors.

Of the claimants, 68.6% indicated their claims were not COVID-19 related, a decrease from 70.6% the previous week.

For more information on this week’s unemployment claims, go to the IWD website.
Ingredion laying off 35 as part of ethanol shutdown
Ingredion Incorporated will be laying off 35 employees as part of ceasing the production of ethanol at its Cedar Rapids manufacturing facility at the end of January.
 
News partner KCRG-TV9 reported the company’s plans to shut down ethanol production in Cedar Rapids. The layoffs were confirmed in a WARN (Worker Adjustment and Retraining Notification) Act filing with Iowa Workforce Development, and are set to be effective Feb. 4. Ingredion clarified with KCRG to say some of the employees being laid off will be moved into other positions within the company.
 
The company said the decision to end ethanol production in Cedar Rapids was made due to current market conditions that have impacted the entire ethanol industry. COVID-19 pandemic control measures have significantly curbed demand for gasoline, including ethanol, according to World-Grain.com. This spring, about 70 ethanol plants were idled and 70 more reduced their operating capacity, and at one point, at least 46% of total production capacity was offline.
 
While those numbers have improved, there are still about two dozen plants that are completely idle, said Geoff Cooper, president and chief executive officer of the Renewable Fuels Association.
 
Illinois-based Ingredion makes sweeteners, starches, nutrition ingredients and biomaterials used in foods, beverages and everyday products. The Cedar Rapids facility will continue to manufacture industrial starch for its existing customers.
CBJ announces 2021 Economic Forecast Luncheon
The Corridor Business Journal (CBJ) announces its 2021 Economic Forecast Luncheon livestream, to be held Jan. 20 from 11:45 a.m.-1:15 p.m. 
 
This free virtual event invites a keynote and panel to share their insights into where the economy is heading under the Biden administration and the biggest opportunities and challenges facing their industries and the Corridor. 
 
Gary Hufbauer, a nonresident senior fellow with the Peterson Institute for International Economics, will kick off the program with a keynote address on what’s ahead for the Biden administration and trade in the new year. Mr. Hufbauer was the institute’s Reginald Jones Senior Fellow from 1992-2018, and before that held leadership and research positions with the Council on Foreign Relations, Georgetown University and the U.S. Treasury. He has written extensively on trade, investment and tax issues, coauthoring more than a dozen books. 
 
Following Mr. Hufbauer’s remarks, Jack Evans, chairman of The Hall-Perrine Foundation, will moderate a local business leaders panel discussion. Panelists include: 
 
  • Joe Ahmann, owner and president of Ahmann Companies 
  • Jennifer Bennett, president of Shive-Hattery 
  •  Mike Gerdin, president and CEO of Heartland Express 
  •  Suresh Gunasekaran, CEO of University of Iowa Hospitals & Clinics 
  •  Mike Ralston, president of Iowa Association of Business and Industry 
 
Traditionally the CBJ’s largest event of the year, the format of this event has changed to a livestream for the safety of speakers, staff and attendees. There is no cost to register. Registrants who cannot watch live will be sent a link after the event to watch the program on demand. For more information or to register, visit www.corridorbusiness.com/corridor-economic-forecast-luncheon/ or call Ashley Moore at (319) 665-6397, ext. 311. Registration ends Jan. 18.
Connect with the CBJ

The CBJ’s mission of informing and connecting the Corridor’s business community is more important than ever. Our news operations will continue researching and reporting on the impacts of the COVID-19 pandemic through our multiple distribution channels. Here’s how you can connect with us today and moving forward:

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Short Term Event Planner

Jan. 12
How to Pivot to Sell in the New Economy, by National Association of Women Business Owners (NAWBO), 11 a.m., online. Mary Lombardo, of NAWBO Chicago, will discuss how to pivot your sales strategy to find new ways to bring in business and how to keep your sales team motivated and focused. Free. To register, visit bit.ly/3r3G1Ck.

Jan. 13
1 Million Cups, by 1MC Cedar Rapids, 8:30 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MCICR.

1 Million Cups, by 1MC Iowa City, 9 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC.
 
Whole Organization Budgeting: A Collaborative Approach for Nonprofits, by CLA, 10 a.m., online. Learn the four phases of whole organization budgeting, how to involve a wide cross-section of staff in the budgeting process and outline an effective plan for using your organization’s resources. Free. To register, vist bit.ly/2J15XgQ. 
 
Jan. 14 
Unleashing Your Personal Power, by SCORE of East Central Iowa, 11 a.m.-12:15 p.m., online. Learn the six steps to unleashing your dream. Free. To register, visit bit.ly/3oqkQsg.
 
Celebration of Excellence, by National Association of Women Business Owners-Iowa, 11:30 a.m.-1 p.m., online. NAWBO Iowa is celebrating women business owners in Iowa, highlighting honorees’ accomplishments. Cost: $40. To register, visit bit.ly/2L80c1Q. 
 
Leadership for Remote Work in Today’s New Virtual World, by PMI Eastern Iowa, noon, online. Natalie Steck, CEO of Viewpath, will share her experiences, challenges, best practices and helpful tips on how to lead virtual teams. Free. To register, visit bit.ly/3oGsfTZ.
 
Uptown Master Plan and Streetscape Presentation, by Marion Chamber of Commerce, 5:30-7 p.m., online. The master plan for the Uptown area will be presented. Free. To register, visit bit.ly/3bhPT5Y.
See something we missed?
Send tips, leads, corrections, etc. to news@corridorbusiness.com.
Headlines from KCRG-TV9
These news items are provided by KCRG-TV9 

Longtime serving Iowa Congressman Jim Nussle says he will no longer call himself a Republican after yesterday’s riots on Capitol Hill. He says “a final line was crossed.” Nussle released a statement on Twitter yesterday. He says “I will no longer claim I am a Republican tonight as I am outraged and devastated by the actions of too many elected Republicans and supporters.” Nussle says “The GOP is no more and left me and others behind.” Nussle represented Iowa’s Second and First District from 1991 to 2007.

The total number of Iowans who have tested positive for COVID-19 surpassed 290,000 today. The Iowa Department of Public Health reported 1,930 more people tested positive for the virus, bringing the state’s total number of cases to 291,394. There were also five additional reported COVID-19-related deaths. In total, 4,065 Iowans have died with COVID-19. The state’s data shows COVID-19 was the underlying cause of 3,728 of the reported deaths, and COVID-19 was a contributing factor in 337 of the reported deaths. A total of 251,660 Iowans have recovered from COVID-19. Hospitalizations increased for a third day in a row today. The state reported 613 people are in the hospital with the virus. That number is up from 604 reported on Wednesday. An additional 97 patients were admitted to hospitals with the virus over the last 24 hours. There are 119 people in the ICU and 52 on ventilators.

These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
Another day, another round of morning fog. This pattern continues to be steady in the coming days with clouds staying pretty thick overall. This will be the general pattern going through the weekend as weak northeast winds continue to push moisture our way from Lake Michigan. This moisture will keep the cloud layer in place, but it won't be enough to produce any precipitation. Next week, the pattern changes very little, but at least the winds change direction somewhat. Toward the end of next week, there could be a few small systems trying to push southeast, but time will tell as to whether these will actually impact our area.