Vermeer Corporation’s Yellow Iron Academy: On-Site Childcare in Rural Iowa

Challenges

Access, Scalability, Worker Issues

Location

Iowa

Stakeholders

Businesses

Beneficiaries

Parents, Children

Overview

Vermeer Corporation, a manufacturing firm in Pella, Iowa, tackled the rural childcare shortage by creating its own on-site childcare center—the Yellow Iron Academy.

Key Impact Metrics

130
childcare slots created
~4%
increase in job acceptances for candidates with young children

Problem

Pella, Iowa, which has a population of about 10,000 people, had limited childcare options, and those that existed often did not accommodate early manufacturing shift times. Vermeer’s management had been hearing these childcare concerns from employees for some time. The company recognized that these challenges are indeed the company's challenges and understood that when employees struggle to find reliable childcare, it impacts their work performance, attendance, and job satisfaction. Rather than ignore the problem, Vermeer decided to address both the community childcare shortage and their workforce retention needs.

Solution

Vermeer’s leadership decided to invest in an on-site early childhood education center. Over 18 months, they planned and built Yellow Iron Academy, partnering with Bright Horizons to manage daily operations with professional staff. The center can serve up to 130 children, from infants through preschool, and includes before and after-school programs. Vermeer subsidizes the center’s costs, offering discounted fees to employees. It also provides access to other community members if there are surplus childcare slots. The center also incorporates STEM exposure for kids: during Engineering Week, Vermeer engineers visit the center, and classes take field trips to see Vermeer’s equipment, sparking interest in manufacturing careers early.

Results

Beneficiary Impact
75 children of Vermeer employees have enrolled
Employee Impact
14% decrease in turnover among employees who use the childcare center compared to other employees
Financial Results
~$220,000 in combined savings for Vermeer employees using program

Replication Tips

Assess community needs: In rural areas, consider a semi-public model—Vermeer opened slots to non-employees, which not only help fill up the center, but also tackled a persistent community issue. Partner with other local employers if one company alone cannot operate a full center (e.g., a consortium model or co-op daycare).
Choose the right operator: Vermeer brought in a reputable childcare management firm to ensure quality and remove the burden of daily operations from HR.
Leverage company expertise to provide on-hand learning and educational opportunities: Vermeer created a program where children could take field trips to see and learn about the company’s manufacturing processes. Companies could replicate this to directly teach children about the work their parents do.