There are lots of fascinating statistics out there regarding buying local and how this affects the economy. New studies and surveys are being published frequently, and we’ll try to keep you abreast of these as they come out.
- For every $100 spent at a locally owned business, $73 remains in the local economy, and $27 leaves.
- For every $100 spent at a non-locally owned business, $43 remains in the local economy, and $57 leaves.
- When you shop locally owned businesses, your money is recirculated over and over and creates up to 75% more tax revenue to your community and state.
- For every two jobs national retailers bring to a community, three jobs are lost as a result of local businesses closing down.
A June 2010 study released by Local First Arizona found that SCF Arizona’s ‘buy local’ attitude leads to $528 million economic impact as they switched to sourcing 82% of its goods and services from other Arizona companies.
A 2007 San Francisco retail diversity study analyzes the market share of several categories as to what percentage is held by chains or locally-owned businesses. It then calculates that if 10% of spending were shifted from chains to locals it would increase economic output by almost $192 million, create almost 1,300 new jobs, provide almost $72million in new income for workers, and create over $15 million in additional retail activity.
A 2009 study in New Orleans finds that shifting 10% of spending from chains to locally-owned businesses would create hundreds of new jobs and the equivalent of injecting $60 million annually in the form of recirculating currency.
For the fourth year in a row, independent retailers in cities with active “Buy Local” campaigns reported much stronger sales than those in cities without such campaigns.
Local business alliances like Stay Local in New Orleans, the Metro Independent Business Alliance in Minneapolis- St. Paul, and Arizona Local First in Phoenix, have now formed in about 140 cities and collectively count over 30,000 businesses as members.
Local First AZ has a companion site called ShiftArizona. When we select our Arizona hometown of Scottsdale and enter details in the calculator to determine the local impact of shifting 10% of our spending to locally owned businesses, our Scottsdale economic impact is $2,376.
By shifting 10% of our annual spending to local businesses in Scottsdale, $2,376 more of our money will stay in the local economy and recirculate. These dollars create wealth and additional sales tax revenue to pay for things like parks, libraries, and city services.
Here is the impact of a simple 10% shift on Scottsdale, Greater Phoenix Metro Area, and all of Arizona:
- Scottsdale- 663 new jobs, $21,621,185 in new local wages, and $55,694,130 in new dollars recirculating.
- Greater Phoenix Metro Area- 11,581 new jobs, $377,106,844 in new local wages, and $971,391,607 in new dollars recirculating.
- All of Arizona- 17,809 new jobs, $580,890,168 in new local wages, and $1,496,318,197 in new dollars recirculating.
Ambitious project, Julie! I’ll be interested to follow along, and watch how you make it work.
We’re starting as of today!
I am soooo excited you are doing this! We put you in our newsletter today. I know you’ve talked to Russ (our membership coordinator) but if there’s anything we can do for you please let me know! Happy to help. Plus if you’d like we could make some charts or something for the information part of your site- or we could lift something from our site. Just let me know! Thanks and congrats on getting this going!!
Kimber
Thanks Kimber! I’ll definitely be referring to your site in many of the posts to highlight the specific benefits for others who may be interested in going local. Thanks so much for your support and offer to help. I hope to really make One Local Family a site that serves to insire others by discussing our journey to be more thoughtful in our purchasing decisions. I’ll be writing about local retailers and restaurants, of course. But, I’ll also be chronicling our challenges and interesting discoveries along the way. …Hope to be adding video, as well as I work out the kinks in WordPress. – Julie
Where did you find a local source of gasoline? The only stations we have in my town are international brands. All the gas we buy at the pump comes from all over the world, anyway.
So I’m not sure I understand: it’s okay to buy products that are manufactured or assembled globally, or even sold through national/international chains, as long as you buy them from local merchants? It sounds like a great idea, but I’m not sure I could do it here on my side of the US. In my town, our local food markets imports meats, fruits, and vegetables from all over the US and the world. Our local department store went out of business, but all the clothing they sold was made overseas. The only other local clothing stores are upscale boutiques that cater to size 12 and skinnier. Our local hardware store sells tools, appliances, and other products made overseas by international companies.
I have found good quality stuff at Wal*Mart, which is the only department store in town. I have a couple of pairs of pajamas I bought there 8 years ago, and they’re only just starting to wear a bit thin. I wear them year-round, they’ve endured bleaching, hot water washes and the hottest dryer setting. I don’t ordinarily shop there, though. Only when I can’t find what I need (or a reasonable substitute) anywhere else.
Hi Judy: Here’s how we approached the gas dilemma. http://onelocalfamily.com/2011/01/15/a-local-solution-for-gas-well-sort-of/ To answer, your questions, we’re trying to support local businesses as much as possible so that they can stay in business, our children can be exposed to more than just Walmart, and to support the local economy. Your local department store went out of business probably because a large retailer like Wal-Mart moved in. We’re trying to show that there can and should be a balance between big box retailers and local businesses. Although the economic impact is very important, we’re also doing this to highlight that the country is full of little local retail gems, and if we don’t support them, they will go out of business. I don’t think anyone wants to see a country awash in Walmarts and Targets and nothing else. We need to save Main Street shops and businesses to preserve the heritage of this country.
HOW did you find out who sells local fuel and who doesn’t? Is there a central database somewhere that can be accessed by average Joes? Curious how to find out without being an investigative reporter going round to every gas station and calling oil execs.
I would like to know where you shop locally (I am in Scottsdale as well) for typical Target items. IE cleaning supplies, toiletries, paper products etc. I only grocery shop at Basha’s (local) but can not fathom paying their prices for the basics mentioned above. Any other options?
Great blog! Thank you for spreading the message on the benefits of thinking local first…and for making us all aware of the importance and VALUE of buying local.
Thanks Jennifer! Looking forward to buying local in Santa Monica, too and reporting about my adventures!