A number of conditions are combining to make Sioux City a unique place to live, own or operate a business that CEO's and business owners can not afford to ignore.
First, having been an agrarian based economy, Sioux City suffered from the general economic malaise surrounding the American farmer for over 40 years. However, recent developments in the alternative fuels industry, namely ethanol, are bringing billions of dollars into the local and regional economy. There are over 30 ethanol plants with capacities in excess of 100 million gallons per year either operating or under construction within 90 miles of Sioux City. Corn, the primary ingredient in ethanol production, has risen from its historical trading range of $1.50 - $2.00 per bushel in the late 1980s and early 1990's to more than $4 per bushel range in recent months. More than 15% of the entire US corn crop is now being diverted from normal distribution and feedstock channels into ethanol production. The real economic driver becomes appearant when it is realized that new production capacity coming on line will more than double the current amount of corn being used for alternative fuel production WITHIN THE NEXT FIVE YEARS! In otherwords, more than 30% of all corn produced in the United States will be diverted into ethanol capacity that is already built, under construction, or commited to build. These higher prices flow, for the most part, right to the farmers bottom line profits. Corn is grown in a fairly narrow belt across Eastern Nebraska, Iowa, Illinois, Indiana and Ohio...i.e. "the corn belt". Expanding beyond that region has huge negative economic and environmental impediments which reduce the yield, productivity and economic viability of corn production. Corn production can not be expanded infinitely as a result of these impediments which will support the price of this crop for the foreseeable future. Farmers will reap billions in additional profits as this trend continues.
Second, as a result of stagnant economic growth for more than thirty years, and a contracting job and population base, Sioux City's wages failed to keep up with the rest of the US economy. The result has been the evolution of a work force that is over educated and underpaid based on its average academic achievement. More than 79% of the working age population has completed high school and more than 25% has some college achievement. Qwest, Northwest Airlines, Alorica and Stream have made the decision to base contact centers in the greater Siouxland area bringing nearly 3,000 new jobs to the area in the past three years.
Third, two major plant operations have either committed or are seriously considering establishing operations based in the greater Sioux City laborshed area. One is a $400 million dollar food processing plant expected to add 2,000 jobs to the economy. The second is the first large scale refinery to be built since the 1970's in the continental United States. Hyperion Energy claims, that should they go forward with the development of thier "environmentally friendly" 5,000 acre refinery, the operation will result in nearly 10,000 new construction jobs for nearly three years and 3,000 permanent jobs after the facility is completed.
Fourth, prominent IT industry reports state, over one half of all data centers in the continental United States are going to be "functionally obsolete" within the next 18 months as a result of rising power costs and restricted cooling capacities demanded by the smaller energy intense form factors now arriving in most data center server environments. Sioux City has particular appeal environmentally and economically to these types of operations offering utility rates as low as 4.5 cents per kilowatt hour, inexpensive facility costs, a technically proficient workforce, green cooling opportunities, strong fiberoptic capacity and attractive business and living environments, Sioux City in general and the Badgerow Building in particular, offer these strategically advantageous opportunties to high tech data center operations and users. These factors when combined with large scale disaster avoidance opportunities that are present on both coasts of the continental United States (eathquakes in the west and "nor'easters" and hurricanes in the east) Sioux City in particular and the midwest in general will see strong growth in this business sector over the coming years. By way of example Google is building a $450 million dollar data center less than 90 miles south of Sioux City.
Fifth, Sioux City has invested heavily in redevelopment, education and infrastructure for a city of its size and stature. The major buildings and facilities downtown are connected by a skywalk system. Relieving the population of dealing with inclement weather these elevated, enclosed skywalks allow pedestrian traffic to traverse the downtown area and reach major medical, parking, convention, entertainment and many other facilities with just a few minute walk within the system.
The city has invested in multiple large scale parking garages. The availability of reasonable parking is important to any significant employer. Badgerow Building is connected to the newest of these structures directly across the street.
The city has invested in the placement of substantive fiberoptic capacity allowing dispersed ingress and egress of data through multiple paths. This will be of particular importance to high tech and contact center operations.
The actual and prospective economic activity and quality of the workforce in this area create new and unique opportunities for a variety of businesses. They are opportunities that should not be ignored. Office space occupancy is at historic lows for this city. Badgerow Building represents an opportunity to claim a piece of this these opportunities for your business or profession.
For more information call 760-727-1500.
