Localism, procurement and self-sufficiency: "Brown has been called a visionary thinker for his work to boost the economy in his hometown."

If "going local" creates more jobs ...

The Multiplier Effect of Local Independent Businesses (AMIBA)

Clearly communicating the importance of the local economic multiplier effect or “local premium” is a key part of effective “buy local” and public education campaigns. The multiplier results from the fact that independent locally-owned businesses recirculate a far greater percentage of revenue locally compared to absentee-owned businesses (or locally-owned franchises*). In other words, going local creates more local wealth and jobs.

... then these facts about the local multiplier effect should be part and parcel of advocacy as it pertains to (for instance) Develop New Albany. Typically they're not, and they're also not much of a factor in the city of New Albany's economic development "program," which tends to mimic the One Southern Indiana approach of plying corporate-chain-think with abatements and incentives, while doing absolutely nothing for locally-owned businesses (save claiming credit when they do well and fleeing the podium when they don't).

Imagine if the multiplier effect of local independent businesses was embraced by local government in the area of procurement, as illustrated by the example of Preston.

‘Poverty was entrenched in Preston. So we became more self-sufficient’, by Hazel Sheffield (The Guardian)

The city voted for Brexit because it felt cut off by a failing economic system, says councillor Matthew Brown. But the region has been revived by thinking locally

Matthew Brown believes few available jobs and rising inequality led Preston, like every other district of Lancashire, to vote to leave the EU in June. “People are angry with how the economy is structured. Brexit has happened because of a failure of the current economic model,” says the 44-year-old councillor. But he adds: “What we’re doing now is in response to that, it’s about how we can change local economies to work for people who feel excluded.”

Since 2011, the Lancashire council’s central government grant has been almost halved from £30m to £18m, leading to cuts in everything from community engagement to parks and the leisure centre. “The intention was to devolve cuts and blame it on us,” Brown says. “But you can become more self-sufficient.”

The Preston model he devised involves 12 of the city’s key employers – including the county constabulary, a public sector housing association, colleges and hospitals – buying goods and services locally, to stop 61% of their procurement budget being spent outside of the Lancashire economy. As a result, Brown has been called a visionary thinker for his work to boost the economy in his hometown.

He was appointed cabinet member for community engagement and inclusion almost seven years ago, in a city riven by inequality. “Poverty was entrenched. We were in the bottom 20% of the index of multiple deprivation. In the most prosperous ward you would expect to live to 82, and other wards 66,” he says.

Preston was the first northern city authority to implement the living wage in 2012. A year later, Brown embraced the Public Services (Social Value) Act 2013, which allows public bodies in England to take into account the social, environmental and economic impact of their commissioning. A key step was to redirect lucrative contracts, such as printing services for the police and food for council buildings, towards local businesses.

Brown met with the heads of six so-called anchor institutions. He helped them to reorganise their supply chains and identify where they could buy goods and services locally. By using spend analysis and social value criteria, the city council doubled its procurement spend with Preston companies from 14% in 2012-13 to 28% in 2014-15. Lancashire county council has since introduced a social value framework to inform all aspects of the procurement cycle, while the college, police and housing association that signed up to the programme have all committed to applying this framework to their projects, though there is not yet quantitative analysis of the effect on spending ...

Gonder: "The business most worthy of economic assistance is one that's already operating."

SIPS had not been open long when Jason agreed with my assessment of the street grid and allowed a two-way sign to be taped to his window.

November 17, 2013: Southern Indiana Paint Supply: On the right side of New Albany street grid history.


Unlike Councilman Gonder, I have not had any need for paint lately, but I share his sadness and dismay. I'm reminded of the numerous times I've heard the city's economic development director lament the absence of any way municipal government might assist independent local business, prior to him running off to submit gerrymandered CF1 Forms (tax abatements for larger businesses) to council.

John explains how and does a good job, as usual. If Gahan and the Democratic Party succeed in kneecapping Gonder in the forthcoming election, he's cordially invited to join The Resistance.

Fish Story--One That Got Away, by John Gonder (Gonder for New Albany At-Large)

A widely accepted proposition in pursuit of environmental responsibility is, "the greenest building is one that's already built." This says, use the earth's resources which have already been expended in a good, solid, or even well-worn structure, before chasing after the tweaks and technological advances of new construction in pursuit of greater efficiencies. After all, even a high-efficiency structure displacing a usable older building, carries with it the sunk environmental costs of the resources, time, money, and effort of the original building. Even if those costs are not reflected monetarily, they are still carried as debits on the earth's ledger.

An economic development corollary to that proposition might be, "the business most worthy of economic assistance is one that's already operating." Assuming the existing business is a positive commercial citizen of the community, one that adds value by delivering necessary and helpful products, services or labor, or one that by its very presence helps to stabilize a neighborhood or lay the groundwork for further improvement in a particular part of town, it may be wiser to focus scarce economic development funds on that business, rather than a different startup asking for assistance. It may be better to water a withering vine than to plant a new one.

I happened upon such a withering vine yesterday in New Albany's Uptown area. It is the Benjamin Moore paint store at the corner of Vincennes and Market streets. I buy a lot of paint, and yet in the two years the store has been in New Albany, yesterday was the first time I'd been in it. So, I, and others like me, are at least part of the reason the store is closing. The gentleman working at the store and I discussed the sad news reported by the big yellow notes on the front door, and the cash register, posted to inform customers that the store will close on September 11, 2015 ...

"Initial cost ... but the money stays in the community instead of 'leaking out' ... We need to look at the bigger picture."

From California, ruminations quite similar to those recently aired by New Albany at-large councilman John Gonder: "Local government has an obligation to take the extra steps to ensure that local businesses are favored over national chains ... "

online.com/news/ivp-news-iviba-and-joint-chambers-ask-supervisors-to-buy-local-20111116,0,2882982.story">IVIBA and Joint Chambers ask Supervisors to buy local, by Alejandro Davila (Imperial Valley Press)

A bid preference ordinance that would benefit locally headquartered businesses was proposed by the Imperial Valley Independent Business Alliance to the county Board of Supervisors on Tuesday.

The bid preference would give a 5 to 10 percent preference in government contracts when a business is headquartered in the county, regardless of its size, and bids, said Paul McManus, president of IVIBA.

“We propose that you pass a resolution that would direct your purchasing department to always look for a local source first before dealing with outside vendors,” McManus said to the board.

Gonder: "Local government has an obligation to take the extra steps to ensure that local businesses are favored over national chains ... "

Ideas matter.

Nudge List--Points to Local Business, by John Gonder (Gonder for New Albany At-Large)

As the campaign comes to a close, I see that I will not get through the Nudge List drawn up in September by November 8. Here's one that will make it before the deadline: Point system for local producers and vendors.