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Buy the Alleghenies Seven Chambers of Commerce in Central and Western Pennsylvania officially became the “Chambers of the Alleghenies” on August 2, 2006. The newly-formed coalition was established to help businesses in those counties to gain a more effective regional presence and to undertake a variety of projects that none of the chambers could sufficiently handle alone.
The “Buy the Alleghenies” effort will encourage businesses within the seven counties to buy first within the Chamber-member businesses within their own counties and, not finding the products and services which they seek, to look at Chamber businesses within the region. The seven chambers that are part of the Chambers of the Alleghenies are: Blair County, Bedford County, Centre County, Fulton County, Johnstown/Cambria County, Huntingdon County and Somerset County.
In August of 2006, the coalition surveyed its 4300 members to determine the buying habits of local organizations in the Alleghenies region and to identify ways of increasing the purchases they make from local businesses. The results of that survey are now available as a power point presentation (click here).
The study employed a mail questionnaire technique. The response rate was 13.5%, with an accuracy range of approximately +/-4.1% at the 95% confidence interval. To protect confidentiality, all responses were anonymous.
The good news is that local organizations are spending approximately $3.2 billion within our region on discretionary purchases, with 86% of respondents reporting that they had total control over their purchases and 78% reporting that they would be willing to switch to a local supplier.
The bad news, however, is that local organizations are spending an estimated $2.7 billion is being spent outside the region on discretionary purchases. The three most important easons given for outsourcing is lack of awareness of local suppliers, local suppliers being too expensive and inability to purchase online from local suppliers.
The three most common suggestions offered for ways to encourage insourcing included promoting local buying, offering lower prices, and the creation of a local vendor directory. The most important purchase decision factors were given as high quality, quick delivery, existing relationships, low prices, local availability, buying from local firms, convenient locations, buying from local Chamber members and the ability to purchase online.
Respondents reported that 33% of their total 2006 revenue was discretionary, for an estimated value of $5.9 billion. Eighty-seven percent of respondents reported that they represented decision-making headquarters, with ninety-three percent of those reporting that they expect to maintain or increase their revenue growth for 2007-2009. These respondents reported spending $1.1 billion in discretionary purchases in 2006.
Respondents reported that 16.7% of their discretionary purchases were made online, for an estimated value of $985 million, with 36% reporting that the ability to purchase directly online was somewhat or extremely important. Nearly three-quarters of respondents said that they currently have a website.
In response to these results, the coalition has already begun preliminary work on creating an online directory as one of the first steps in the campaign to increase the amount of discretionary dollars spent in our region. More details will be released on this effort as progress is made.
For further information on the Chambers of the Alleghenies or on the Buy the Alleghenies effort, contact Joe Hurd at 943-8151 or E-mail him at jhurd@blairchamber.com.
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