How a ‘buy local’ attitude made a $528M economic impact

A great study was released earlier this month. The story was covered in the Phoenix Business Journal, but let me summarize:

Wist Office Products is Arizona's largest independent office supplies dealer.

A group called Local First Arizona conducted a study – they claim it’s the first fully scientific study that measures the economic impact of a single employer – which found that Arizona’s largest workers’ compensation insurer, SCT Arizona, had a $528.3 million economic impact in Arizona in 2009 when they began sourcing 80% of their purchases from other Arizona businesses, including a switch from Minneapolis-based Corporate Express to Tempe-based Wist Office Products Co for their office supplies. (Note: This is an updated to an earlier version – see comments.)

“We compared 1,000 products, and were able to move over to Wist without paying more for anything,” says Rick DeGraw, SCF’s chief of staff.

Also mentioned in this story is Local First Arizona’s attempt to convince the State of Arizona to switch its $5 million office supply contract with OfficeMax to an Arizona-based company. The group organized a study in 2007 that showed the state’s $5 million office supply contract was losing $500,000 in “leakage” by not switching to a local supplier.

The Numbers Don’t Lie…
More general studies have been boasting the economic benefits of ‘buying local’ for many years. A 2002 Economic Impact Analysis in Austin, Texas, was one of the first major studies to examine the impact of shopping at local businesses versus national chains. It found that, for every $100 spent at a local bookstore or CD store, $45 stayed in the local economy. For every $100 spent at Borders, however, the local economic impact was only $13.

A study in Maine the following year yielded similar results: Shopping local kept three times more money in the local economy than shopping at chains.

It’s not always an easy decision, but buying local increases a community’s self-reliance and local businesses make Central Texas unique! After all, it’s your money – keep it local!

See more about Buying Local on our website at www.perryop.com/buylocal

- Bonnie

Celebrate Your Town – It’s Not as Boring as You Might Think

The Waco Tribune Herald posted an online poll today that asks, “What retail chain do you think should come to town next?”

The question might as well have asked: “Which other city along I-35 do you want your town to look, feel and taste just like?” Chain stores and restaurants help make a town virtually indistinguishable from the next town down the road.

Do we want Waco to be Waco, or to be just like Round Rock? Should Belton look like Belton or should it look just like Hillsboro? Those are all great towns with something unique to share – and it’s not necessarily a chain store.

Children are encouraged to admire and look up to heroes and successful people, but most parents would readily encourage their kids to be themselves because they are a unique individual with something to offer. Just as people would be boring if we all looked and acted the same, how boring would our towns become and how little community pride could we boast if each town looked and offered the same options and flavor as the next? Local independent businesses contribute to their community’s character and quality of life. By preserving what is unique about your city, you can avoid becoming “Anywhere, USA.”

Remember: Every time you spend a dollar at local, independent businesses you not only impact the cultural vitality of your community, but you also help build a stronger local economy.

Perhaps we should stop wishing for new chain stores and restaurants and start celebrating what is great about our community. When you step into a locally owned, independent business for your next purchase, you may discover a unique, locally made product or a hometown guy or gal who is working hard to run their business and has a vested interest in serving you like family.

Our vote in this poll: We’re not anti-chain. We encourage everyone to supporting the INDEPENDENT and LOCAL businesses that keep their city vibrant, unique, and competitive!