Will "Locally Owned" Help the Bottom Line?

Some things just fall into place. Two days before Home Depot descends on Haines, those listening to KHNS, our local public radio, were treated to a discussion with Michael Shuman. Michael Shuman talked about building and sustaining local economies.

Shuman holds some impressive credentials. He is Director of the Institute for Economic Empowerment and Entrepreneurship with the Village Foundation in Washington. The Institute focuses on community-based solutions rooted in local markets and small business. Shuman earned an A.B. with distinction in economics and international relations from Stanford University in 1979 and a J.D. from Stanford Law School in 1982. No slouch.

I don’t think Shuman would reject Home Depot out of hand. No. He would evaluate the capacity of the non-locally owned business to contribute to the vibrancy and uniqueness of Haines. In fact, one thing he says policymakers can do is award “Good Community-keeping Seals” to “any firm that is not locally owned but is also a good performer with respect to workers, consumers, and the environment.” Uh oh. The Atlanta Journal Constitution reported February 26 that Home Depot has been fined $1.3 million by the US Justice Department and the Environmental Protection Agency for storm water violations from construction sites around the country.

But business is about profits, so what is happening to the bottom-line when local is prioritized? According to Shuman’s February 11 blog entry, “The Small-Mart Revolution,” “Not only are consumers prioritizing price-competitive local goods and services, they are even willing to pay more for them.”

Throughout the United States, you can find signs that say, “Locally owned restaurant,” “Year-round business.” Shuman calls it “The Small-Mart Revolution” which he describes as “The growing passion of Americans to buy local, invest local, hire local, and think local… .” Tongue in cheek, he jokes, “You don’t find signs that say, ‘Not local – buy from us.’ ”

Yesterday I attended a free Made in Alaska workshop, sponsored by the Department of Community and Economic Development. The presenter, Bill, told me that producers often double sales of their product when they affix the Made in Alaska logo. My dream is that someday we will have the statistics to show that a sign in your shop window that says, Locally Owned Haines Establishment, will significantly and positively add to yours, and thus my, economic bottom line.