Quarterly Market Report Q2 2022 | Quad Cities Chamber

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Key Takeaways

Nationally, the second quarter of 2022 saw economic growth once again below its long-term trend. The weight of worldwide economic concerns such as renewed lockdowns in China and other Asian countries, and the ongoing war in Ukraine, along with fears of a hawkish Federal Reserve created a drag on economic activity. Business investment was one of the more negative components of Q2 GDP growth, causing concern about slower growth in the second half of 2022 and the first half of 2023.

The Quad Cities economy picked up pace during the first half of 2022. The Return-to-Normal Index rose steadily from January 1 to mid-March, then fell slightly at the end of April. The economy picked up again in May and June.

Payroll employment at the national level increased by 0.8% during the first quarter. This was the slowest rate of growth since mid-2021, also a worrying sign for economic growth. However, the Quad Cities region experienced very strong job growth in April and May, moderating slightly in June. Overall, the number of jobs in the region increased by 4.7% in the second quarter.

Manufacturing orders are up and sales are at record levels, but the supply chain remains a challenge. Some manufacturers are bringing production of components in-house, rather than waiting weeks or months for delivery. To get products to market quicker some manufacturers have started to fabricate their own parts. Some are even investing in innovative additive manufacturing technologies for plastic and metal component fabrication. This trend toward more vertically integrated manufacturing is increasing in the region.

The Quad Cities Chamber hosted four national site consultants for a familiarization tour at the end of June 2022. All the consultants were impressed with the vibrancy of the community: new industrial and commercial development; the number of existing successful businesses, attractions and amenities; diverse housing mix; and new riverfront development.

The QC region has opportunities for improvement to increase our attractiveness to prospective businesses looking to expand or relocate into the region such as: creating large contiguous acres of shovel-ready greenfield; building high and/or unique utility loads; having closer proximity to Tier 1 research institutions and universities; and having better access to rail and barge.