Editor’s Note: Thinking and Buying Locally

By Seattle Business Magazine December 29, 2010

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Globalism is the dominant trend of our time, and its good news for our manufacturers, our farmers and our software developers. But in places like Spokane, Tacoma, Bellingham and even Seattle, there are signs of a countertrend that could bring important balance to our state. These Buy Local First campaigns seek to reinvigorate local economies by encouraging consumers and businesses to spend a larger portion of their budgets on local businesses.

Isnt that approach anti-trade? Doesnt it go against the interests of such local job generators as Amazon.com, Costco and Starbucks? Not really. Being pro-trade doesnt mean you have to neglect local interests. The reality is that virtually everywhere in the world outside the United States, there is a strong preference for local businesses. At a time when 320,000 Washingtonians are out of work, maybe we should also favor localism.

Doing a better job of educating our workers, of course, is critical. But retraining can only partially close the gap between the jobs we are creating and the workforce we have. Even with the best training, few of our unemployed are likely to find positions at companies like Amazon.com that search out the worlds top talent.

Supporting local businesses could make a difference. A 2007 study by Civic Economics, an economic research consulting firm, concluded that if Bay Area consumers shifted just 10 percent of their spending from chains to local stores, which tend to carry more local products, it would result in 1,300 new jobs. Such a change in spending habits could also help reinvigorate our downtown areas.

The food economy has already moved toward increased local sourcing. Farmers markets and community farms employ more local workers and tend to be environmentally more responsible. Locally produced cheese, chocolate, beer, coffee and furniture offer the same advantages.

Still skeptical? Consider wine. Washington residents favor local wines because they taste great. But we also make those decisions from a sense of pride. Nothing to be ashamed of. Our preference for local wine has helped to support a $3 billion industry that has created more than 20,000 jobs at wineries, vineyards and in tourism while enhancing the beauty of the countryside.

Local favoritism could offer the biggest dividends in manufacturing by not only helping to create new jobs, but also slowing the departure of existing jobs and protecting the infrastructure of parts, materials and machine suppliers on which the industry depends. A strong manufacturing sector can produce entire new sectors, as weve learned from the emergence of a strong local presence in carbon composites, a new material used in cars and jets.

Already companies like Clarisonic, GM Nameplate and Cashmere Molding are making the tough decision to manufacture locally rather than in China. We should reward them for investing in our communities. Buy Local First is a good place to start.

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