The Value of Buying Local

By Darin Matthews, Director of Procurement & Supply Chain, UC Santa Cruz

There are many benefits of buying local. That is, doing business with contractors and suppliers in your geographic area. These businesses create local jobs, pay local taxes, create discretionary spending with other local businesses, and truly care about the community they live and work in.

The products provided by local suppliers are more readily available, not to mention easier to return if there is a problem. Is it services that you need? A local company is often quicker to respond than a larger one out of the area. Additionally, many local suppliers offer free delivery or the option for customer pick-up.

Small businesses are a key contributor to our local and national economies. In the last twenty years, 65 percent of new jobs have been created by a small business. They produce nearly 40 percent of the gross national product (GNP) and are responsible for more than half of technological innovation in the US.

In the past four years, approximately one fourth of the dollars spent by UC Santa Cruz have gone to local businesses. In 2017, this amounted to over $34 million dollars. Do we have a local preference? Of course not. But when our buyers consider cost, availability, and service in our sourcing decisions, many times this means a Santa Cruz supplier is the best value.

A few years back I saw a hand written sign in front of a small business that really sums it up for me: When you buy from a small business, you’re not helping a CEO buy a third holiday home. You’re helping a little girl get dance lessons, a little boy his team jersey, and moms and dads put food on the table.