Traditional logic suggests a prudent approach to stewardship of our businesses is to seek the lowest cost for any particular purchase or service, but tradition doesn’t allow for the recirculation or reinvestment value of buying local.
Two studies were conducted within the last six years that show the economic impact of investing money locally for supplies, services and inventory is at least three times greater than supporting regional or national firms.
One of the studies, conducted in Arizona by Civic Economics and reported in February 2008, found that for every $100 spent at a national retailer, only $11.60 remained in the market in the form of payroll, reinvested profits and additional services purchased at local businesses.
On the contrary, for $100 spent at locally owned businesses, nearly $33.50 remained in the local economy, creating more jobs, providing benefits and with regard to government acquisitions, keeping tax dollars in the state.
Similarly, a study in Maine by the Institute for Local Self-Reliance in 2003, found that only $14 of every $100 spent at a big-box retailer stayed local. Researchers also found that $53 of every $100 spent locally, stayed local – nearly four times more valuable than shopping nationally.
It is not often shopping around for a better price will bring four times the value of the local price.
Soft markets, tightening budgets, recessionary discussions. Whatever we call it, if we all take a look at where we are spending our money, and given a local option, choose it over an out-of-town supplier, we would all benefit from an economy three times stronger than our current experience.
Buying local is more than a ‘homer’ attitude. Simply put, it is good for all business.
2007 Business Growth
For many in our business community, fiscal year 2007 was a banner year. Maybe it was your strongest sales year in the company history. Maybe it was a year of expansion to new territories or additional locations. Whatever the growth driver was for you (or maybe one of your clients), let us know.
On May 22, the Vancouver Business Journal will recognize the fastest growing businesses at the annual Business Growth Awards dinner, held at the Hilton Vancouver. Awards include Start Up of the Year, Innovator of the Year and the fastest growing companies in three age categories.
Nomination forms are available online at www.vbjusa.com by clicking on the BGA icon or by calling 360-695-2442.
Top Projects 2008 to be fifth annual celebration
Celebrating the accomplishments of the construction and development communities has become a summer tradition. The fifth annual Top Projects Award reception will be on July 24 at Battle Ground Village. If you’ve been a part of a project that has broken ground between June 1, 2007, and May 31, 2008, be sure we know about it to be considered in this year’s ranking and published in our Top Projects Magazine.
