Marshalltown Times Republican, IA
11-03-06
Five percent is the magic number for sparking local economic surge
By RYAN BRINKS
If everyone in Marshalltown shifted 5 percent of all their purchases to local
suppliers, the city’s economy could experience up to 350 new jobs and a $40
million impact, according to a recent economic study — and the Marshalltown
Area Chamber of Commerce is testing the theory out.
The Chamber is currently launching its new “Target 5 — Buy In” campaign,
urging businesses, institutions, governments and consumers to look first for
purchasing opportunities within the community and, if they are competitive, buy
in.
“What’s key is that we’re not asking anyone to spend additional money but to
shift 5 percent of what they’re spending outside to local businesses for the same
products and for a very competitive price and very competitive level of service,”
said Bill Thiede, Target 5 — Buy In chairman.
“The general response has been really fabulous so far,” he said. “I’m not kidding.
This is a really big deal.”
According to the study, done by Iowa State University economics authority
David Swenson, local industries will need to take the lead for the campaign to
succeed.
The county’s businesses, institutions and governments spend nearly $1.2 billion
in goods and services from out-of-area suppliers each year, Swenson concluded.
While Chamber leaders realize those employers cannot find all of their material
needs from local suppliers, a 5 percent shift is in the realm of possibility, Thiede
said.
The program’s brochure highlights endorsements by Marshalltown Medical &
Surgical Center to partner with local vendors like Premier Office, Those Ink Guys
and Central Office Supply; and commercial HVAC supplier Raymon-Donco
partnering with Ryerson Tull Coil Processing, Morgan-Hauser Steel, Gervich &
Sons, Marshalltown Packaging/H & J Pallet, Packaging Corporation of America,
Diamond Vogel Paints and 22 others.
“Our industry is very competitive and requires very short manufacturing cycle
time,” said Larry A. Raymon, CEO of Raymon-Donco. “Our local vendors meet or
exceed Midwest competitive pricing and provide unparalleled service. They are
essential to our success.”
Thiede also said comments of support from Fisher Controls and Lennox
Manufacturing are coming. Information is being distributed to area businesses
with introductions to the Iowa Veterans Home, the school system and local
government next on the list, he said.
Consumers too cannot be forgotten, Swenson said in his report. Household
purchasing will need to make a shift as well for the results to materialize.
“Especially coming into the holiday season,” Thiede said. “If we can keep our
spending local, we’ll be better off.”
One example of spending locally is using Chamber Bucks in lieu of cash, which
are good at any Chamber business, he said.
While Chamber leaders work to get an initial public splash of recognition, the real
work of the program will be ongoing and remain part of the community for years
to come, he said.
“The first results, though, should easily be measurable within 12 months,” Thiede
said.
For more information, including Swenson’s research, visit www.marshalltown.org.