How Buying Local Can Change Michigan’s Economy

What if every Michigan resident transferred one in 10 retail purchases to a Michigan-based business?

Together, Michigan residents spend $30 billion on retail purchases. If 10% of those dollars stayed in Michigan, it would add about $3 billion to our economy.

The Michigan Retailers Association has partnered with public sector consultants for our annual Buy Local analysis to quantify what a simple change in spending could do for our state. We know that every dollar invested in local Michigan retailers is an investment in Michigan. But we wanted to dig deeper to understand the direct and indirect impact it would have on our condition.

Individually, this change looks like shopping at a few stores in your downtown area, rather than ordering everything from an out-of-state retailer. However, $3 billion in additional revenue would trigger staggering results.

By the numbers:

  • 16,000 new jobs in Michigan, increasing labor income (wages and benefits) by approximately $660 million.
  • $1.2 billion in value added to the state’s economy.
  • $2.2 billion in gross economic output.

In short: jobs and opportunities to move Michigan forward.

PSC found that the greatest employment gains would occur in the retail industries – with the greatest benefits occurring in the non-store, general merchandise, apparel and retail sectors. electronic.

Everyone had a first job, a place that helped develop a work ethic and an understanding of how the world worked. Many of these 16,000 new jobs are potential first jobs, ideal for gaining experience and training the next generation of business and community leaders.

Beyond the immediate economic impact on retail, the real estate, owned accommodation, warehousing and storage, management of companies and enterprises, and hospitals sectors would also experience a increased prosperity.

As Michigan’s small businesses recover from the pandemic, grapple with inflation, and continue to scale their businesses, the least any of us can do is buy local.

In June, 50% of Michigan Retailers Association members reported through our Monthly Retail Index that their sales were down month over month. The impact of spending just a little more on state assets each year is significant for retailers and the future prosperity of our state.

These are the hard numbers that show what buying local would do for our economy. The economic implications of these numbers are significant, and we can turn them into waves if we choose to buy nearby.

William Hallan is President and CEO of the Michigan Retailers Association and Michigan Retailers Services and Retailers Insurance Co.