thomas barr presentation lfa
TRANSCRIPT
The Upside of a Down The Upside of a Down Economy: THINK LOCALEconomy: THINK LOCAL
Thomas BarrThomas BarrLocal First ArizonaLocal First Arizona
Chicago?! Chicago?! But you live HERE now!But you live HERE now!
The small businesses in the La Grande Orange complex at 40th Street and
Campbell, an adaptive reuse project, generated $24 million in sales in 2013.
Money Does Not Spend the SameMoney Does Not Spend the Same
For every $100 For every $100 spent in a local spent in a local business, $45 business, $45 re-circulates and re-circulates and stays right Here stays right Here in Arizona.in Arizona.
For the same For the same $100 spent in $100 spent in any national any national chain, only $13 chain, only $13 remains.remains.
Local First ArizonaLocal First Arizona
2500+ locally owned businesses of all sizes 2500+ locally owned businesses of all sizes The largest local business coalition in North The largest local business coalition in North
AmericaAmerica An on-line directory that is searched more than An on-line directory that is searched more than
42,000 of times each month42,000 of times each month A BUY LOCAL campaignA BUY LOCAL campaign Both (c)6 and (c)3 statusBoth (c)6 and (c)3 status An advocacy group working on long-term An advocacy group working on long-term
economic developmenteconomic development Focused on ECONOMIC sustainabilityFocused on ECONOMIC sustainability Focused on business to business interaction and Focused on business to business interaction and
growing “deep wealth” in the regiongrowing “deep wealth” in the region 56,000 social media followers56,000 social media followers
Local First ProgramsLocal First ProgramsWeekendZona: Rural WeekendZona: Rural
Development and TourismDevelopment and TourismDevour Phoenix: Restaurant Devour Phoenix: Restaurant
CoalitionCoalitionShift Arizona: Shift the Way You Shift Arizona: Shift the Way You
Shop!Shop!Fuerza Local: Spanish Language Fuerza Local: Spanish Language
InitiativeInitiativeLocalist: New campaign to build Localist: New campaign to build
civic pride though individual civic pride though individual experiencesexperiences
4 Key Areas of Work4 Key Areas of Work
Land use, adaptive Land use, adaptive reuse, infillreuse, infill
ProcurementProcurement
Cultural TourismCultural Tourism
Economic Economic DevelopmentDevelopment
LFA members by Industry SectorLFA members by Industry Sector
What is Small What is Small Business?Business?
What is Local Business?What is Local Business?
Owners live here in Owners live here in Arizona at least 9 Arizona at least 9 months each yearmonths each year
The business is The business is privately held, and not privately held, and not publicly tradedpublicly traded
The majority of the The majority of the business is done here business is done here in Arizonain Arizona
The business is unique The business is unique to Arizonato Arizona
Small Business is the Backbone of Small Business is the Backbone of the Arizona Economythe Arizona Economy
In 2012, firms with zero to 99 employees comprised 94.7% of all firms in Arizona.
Source: US Census Bureau
In 2012, over $21 billion waspaid to employees of small businesses in Arizona
Source: US Census Bureau
If small business was laying off people at the same rate as big business we would have 950,000 fewer jobs in America today.
-Donovan Rypkema,
Place Economics, 2009
Why We Need to Support Locally Why We Need to Support Locally Owned BusinessesOwned Businesses
Methodology: Methodology: Looking at Net Gains for ArizonaLooking at Net Gains for Arizona
Good jobs vs “poor” jobsGood jobs vs “poor” jobs
Charitable contributionsCharitable contributions
Second-tier jobsSecond-tier jobs
Consider Long Term ImpactsConsider Long Term Impacts
E
Amount of Local Economic Activity Created per $1million in Spending
Chain Stores: $170,000
Independents: $450,000
-source: Civic Economics
Jobs per $10 Million in SalesJobs per $10 Million in Sales
Independent Retailers: 110Independent Retailers: 110
Chain Retailers: 50Chain Retailers: 50
Amazon: 14Amazon: 14
source: Civic Economics 2013source: Civic Economics 2013
Economic GardeningEconomic Gardening
The Secret to Job Growth The Secret to Job Growth in America: Think SMALLin America: Think SMALL
Harvard Business Review- 2010 Harvard Business Review- 2010
Of 15 randomly selected Of 15 randomly selected cities with 1 million or more cities with 1 million or more residents, 90% of Economic residents, 90% of Economic Development teams spent Development teams spent
90% or more of their budget 90% or more of their budget on big, non-local on big, non-local
businesses. businesses. -November 2010-November 2010
Procurement
$5,000 threshold moved to $50,000Open public bid only over $50,000+ contractsUnder $50,000 goes to database populated only with Arizona companies
Efairness
-Amazon kept $800 Million out of state coffers from 2011-2012
-Now required to collect sales tax in 28 states, including Arizona
-Still contributes to economic leakage, purchasing through Amazon doesn’t support 2nd tier jobs
-40,000+ mom and pop companies in Arizona, what would happen without them?
Adaptive Reuse
-Worked for 8 years to streamline a process for the City Of Phoenix
-Began pilot program in 2006, saved 4½ months and $16,000 for businesses to get certificates of occupancy
-80+ new businesses in central corridor
-Tempe is now working on a new initiative to mirror what Phoenix did
BENEFITS of GOING LOCAL
Grow JobsAdditional revenue re-circulatingAdditional tax revenue without raising taxesReduce economic leakageDiversify economy
Making the SHIFT means more Making the SHIFT means more jobs and more money circulating jobs and more money circulating
locally! Find 10% to SHIFT!locally! Find 10% to SHIFT!
A city of 750,000 people shifting 10% of A city of 750,000 people shifting 10% of their spending from national to locally- their spending from national to locally-
owned business creates:owned business creates:
-$137 million in new economic activity-$137 million in new economic activity-Over 1,600 new jobs-Over 1,600 new jobs
-Over $50 million in new wages-Over $50 million in new wages
Broken Social ContractsBroken Social Contracts
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