Automotive Businesses Create A Thriving Local Economy
Small businesses in Arizona provide good-paying, local jobs that support the local community. Arizona’s automotive businesses, many of them locally-owned, represent a thriving industry that collectively contributes millions to the state’s tax base. Those taxes help pay for schools, roads and other important state services. That’s how supporting the local auto industry helps the local economy thrive.
Statistics reveal just how much impact buying auto parts and getting auto repair from a locally owned automotive business can affect the economy. According to Local First Arizona, a buy-local advocacy group, $73 out of every $100 that consumers spend with locally owned businesses stays in the community. Compare that to just $43 that stays in the local economy when residents buy goods from companies with out-of-state owners. When examining the numbers, it’s clear that supporting local small businesses, such as car dealers, auto recyclers and auto repair shops, pays off.
Spending money locally may seem like a small thing, but it obviously makes a big difference. To what can the impact be attributed? Locally owned small businesses, including car dealers, often purchase a greater portion of their supplies, such as computers, paper and other office goods, locally. Besides that, locally owned automotive businesses employ more local support staff. Some of those staffers earn good, middle class salaries, and then spend those salaries in state, creating an even bigger impact.
In an out-of-state-based company, those positions, such as marketing specialists, accountants and business development staffers, would likely be housed in a faraway headquarters, earning and spending money faraway. That does nothing to help the local economy thrive.
Besides the salaries non-locally owned companies pay, business owners also buy office supplies out of state, sending thousands of dollars worth of tax revenue outside the state. The money these companies pay for business-related services, such as consulting, also go outside of the state. Non-local businesses create fewer local, high wage, management level jobs, in turn weakening the middle class and creating less opportunity for local residents.
Supporting locally owned businesses creates a multiplier effect. Prospering automotive businesses spending thousands of dollars on local support services and suppliers ripples throughout the greater economy. Rex Altree, owner of New Image Auto Glass says, “As a family owned auto glass business in Arizona we take pride in knowing our employees, vendors and customers are all contributing to the local economy. It’s a win-win situation.” That creates a thriving economy for all to enjoy, and helps people find jobs. This makes supporting local small companies, such as automotive dealers, an easy way to foster a flourishing community.
Automotive businesses owned by Arizona residents offer the same quality and service for auto repair and auto parts that you would expect from any other dealership in the auto industry. Buying auto parts from locally owned automotive businesses is an easy way to support the local economy and promote good jobs for all residents.
The next time you need auto repair, auto parts or a visit to a car dealer for a shiny new automobile, consider visiting a locally owned establishment. You’ll do more than fill your automobile needs — you’ll also be supporting the local economy, creating jobs and helping a local small business owner and his family thrive.