Procurement Matters: The Economic Impact Of Local Suppliers
Local firm generates nearly three times the economic impact.
Civic Economics is pleased to present this analysis of the economic impact of office products procurement from a locally-owned supplier compared to procurement from a national supplier with local operations.
Key findings from the Procurement Matters study:
- 33.4% of local revenue at Wist remains in the local economy.
- Of total revenue at Office Max Contract, only 11.6% remains.
From the study:
"Despite the widespread consensus that local retail firms promote strong local economies, there has been little research into the economics of local contract procurement even as national firms have entered every market in America. Prior to this study, neither Civic Economics nor any other research organization could put a dollar value to the impact of traditional local suppliers like Wist.
Now, with the release of this study, the answer is clear. Local suppliers generate dramatically greater economic activity than their chain competitors. In the case at hand, using the most locally invested of the national chain suppliers, one with a sizeable physical presence in the Phoenix area, the local firm generates nearly three times the economic impact."