Home / Archive / Publisher's letter: June 2006
Thursday, May 17, 2012
Publisher : June 2006
Think local
The old adage “What goes around comes around” is particularly applicable to local and regional economies. During the last few years, more than 30 communities across the country — from Portland, Ore. to Philadelphia, Pa. — have mounted campaigns to convince consumers to “Think local, buy local.” They are just beginning to see measurable increases in support for their hometown business teams, both in hard revenue and in customer perceptions — prospective diners are calling to ask if a restaurant is locally owned, and customers are telling cashiers they prefer shopping at locally owned stores.
These campaigns typically start, as you might guess, among retail and service firms — shops, restaurants, groceries, opticians — or within the agricultural sector. Our very successful state campaign, California Grown, is a splendid example of the latter. But over time they tend to engage all sectors of business, as has happened, for example, in Portland and Philadelphia, two of the earliest cities to launch campaigns to encourage local purchasing.
An interesting phenomenon occurs as consumers catch on and begin to support local firms: Businesses themselves begin to feel a little guilty if they don’t follow suit. How can they ask customers to shop locally if they aren’t buying their own raw materials, products and services from local providers?
Perhaps both a “buy local” campaign and a small dose of guilt would be helpful within our Capital Region business community. Too many local companies and organizations, it seems to me, choose to buy goods and services outside our region, even outside the state, when the same type and quality of offerings are available here. Some argue that they can get a better price elsewhere, but that is a weak argument unless there is a very, very big differential.
Why? Because study after study shows the significant multiplier effect of dollars spent locally by consumers and businesses. Local spending’s positive impact on overall economic health far outweighs small savings to an individual organization.
Yes, it’s true that the Sacramento Metropolitan Chamber and others have taken modest steps to build connections among local businesses; the Chamber’s annual business-to-business exhibition is an example. But I’m suggesting that we go well beyond such traditional measures. What if a local group — such as the Sacramento Area Commerce and Trade Organization or the Metro Chamber — launched a major campaign among its members to buy locally? What if companies made a public commitment to local sourcing, absent an overwhelming rationale for doing otherwise?
We all have a great deal to gain from such good business practices. There’s the multiplier effect of local dollars recirculated locally. There’s the consistent support for hometown companies, which often provide stable jobs and a disproportionate amount of a community’s philanthropic support. There may be reduced transportation requirements and therefore reductions in fuel usage and pollution. There’s an overall strengthening of the bonds within our rapidly growing regional community.
Here’s another truism for those who bemoan the California business climate yet are all too ready to run across the state’s boundaries to shave a few dollars off their costs: You can’t have your cake and eat it too. I say we think and buy locally, and by doing so, together build prosperous local, regional and state economies.
