Iowa’s the home to around 5,800 manufacturing employers. These manufacturing facilities generate over 21 percent of the gross state product, which places Iowa at about 8th nationally in terms of importance of manufacturing to the state economy. In 2001, manufacturing contributed $19.1 billion to the Iowa gross state product. Though the number of manufacturing establishments and employees is much higher near population centers, county dependence on manufacturing employment varies throughout the state. Mahaska County falls in the 11 to 20 percent category.

The importance of manufacturing to a local community cannot be emphasized enough. The manufacturing sector provides two important things to the community. First, the manufacturing sector typically provides above-average wages. These wages help to purchase homes, raise families and buy all the necessities of life. Second, manufacturers provide a good tax base from which government can provide services to its citizens. If we include the homes that employers and employees purchased with their wages, the tax base increases dramatically.

Still, not all Iowa counties can look to a large manufacturing base for their prosperity. On average, rural America has not been faring as well as metropolitan America in terms of population and income growth. In fact, demographic trends show a steady decline in population in Iowa’s rural counties. Instead, there are other major employers providing the economic foundation for those communities. In this case, major employers are the lifeblood of many rural counties.

Communities would do well to take the necessary steps to retain their major employers. The loss of a major employer has profound economic consequences. We only need to look at Centerville and Newton to see the effects.

In our community, major employers have such a large impact on Oskaloosa and Mahaska County that the public likely does not realize its true impact. According to our local economic development group, its members employ over 2,500 people and provide over $100 million in wages and benefits. From a tax perspective, over $1.2 million in property taxes was paid in 2006 by major employers — that is nearly a third of what was collected in property taxes that same year. The impact is real, and it is significant. If the homes of the employees are also included, the effect would be even more staggering.

Recently, it can be argued that there has been an assault on employers. Legislation has been coming out of the state legislature that will greatly increase the costs employers will face. An increase in the minimum wage, modifications of the states right to work law, and changes to workman’s compensation law, these and other bills are sending disturbing implications to our state’s employers. The same could be argued here in Oskaloosa. Controversy has surrounded the Oskaloosa City Council because of its interactions with businesses wanting to locate here and one of our city’s major employers. What kind of messages is this sending to our employers?

Major employers are critical to the sustainability and progress of this community. We are not talking about oppression here. There is no cry of “workers of the world unite.” What we are talking about here is the simple issue of prosperity — mutual prosperity.

Do some communities survive the loss of a major employer? Yes, some do. Still, others are just a shadow of their former glory. In other words, they stagnate. Truly successful cities retain the employers they have and attract new ones. In other words, they rise.

So elected officials must ask themselves the question, “Is it worth the risk?” Are the decisions being made and the message being sent supportive of our employers?

Studies have shown that 80-90 percent of job growth occurs through existing businesses. Local personal income is reflected through wage and salary income which is dependent upon the jobs provided by our local major employers. What’s more, our local economy is augmented by services that are purchased locally by these businesses. All of this, of course, means jobs and income to our residents, firms, and households. Let’s call it “bubble up economics.” Making decisions that support our local employers means more jobs, which means a greater standard of living, which means more options for a self-sustaining Oskaloosa. Again the issue becomes rise or stagnate.

— The Herald Editorial Board