PUTTING MICHIGAN FIRST
Buying local gives boost to businesses
A grassroots campaign offers hope to state economy
In the midst of the worst economic downturn since the Great Depression, a growing number of Michigan business owners and consumers are fighting back, one Michigan purchase at a time.
They’re part of an expanding buy local movement, a grassroots campaign that advocates purchasing products and services that are made, grown or performed in Michigan. Buy local groups have sprung up in cities including Ann Arbor, Grand Rapids and Kalamazoo. Entrepreneurs and large retailers also are getting in on the action, selling more Michigan-made products and services. One Michigander has even launched a school fund-raising program that sells Michigan-produced foods and other goods. “This is something every one of us can do,” said Lisa Diggs, founder of the Buy Michigan Now campaign, which has seen more than 5,500 residents pledge their commitment to buying local products and services from local businesses. “That’s really empowering to people in our state, especially now.” She and other supporters say funneling more money to local businesses helps Michigan’s economy in a number of ways, from building stronger communities to increasing jobs. Evidence that the movement generates a positive effect is mostly anecdotal. For example, when Hudsonville Ice Cream in Holland expanded into metro Detroit in May 2009, it discovered that several supermarkets were enthusiastic about offering a Michigan-made ice cream. Since then, sales have taken off and the company is planning to increase its work force. “We wouldn’t have had the opportunity that presented itself without buy local,” said Bruce Kratt, Hudsonville’s director of sales.
Kelly Martin, owner of Kelly’s Karamels, watches Noah Dreyer, 8, of Bloomfield Township taste treats Thursday at Plum Market in Bloomfield Township. "It’s awesome. Everyone should try them," he said.
Hudsonville Ice Cream in Holland expanded into metro Detroit in 2009. Sales took off. Now the company plans to add jobs.
Buy local movement is gaining traction
Made in Michigan has an allure that is proving good for shoppers, workers
Kelly Martin has experienced firsthand the benefits that can result when Michigan businesses and consumers support each other. In July 2009, she launched Kelly’s Karamels in Troy, making and selling caramel candies based on a recipe from her 90-year-old grandmother. Today, the start-up business is profitable, employs seven workers and plans to operate out of its own facility by year’s end. Martin, 47, credits the buy local movement in Michigan for helping her business grow. The former pharmaceutical executive began selling her candy at a Buy Michigan Festival in Northville. She now lists her business in the Buy Michigan Now directory and holiday gift guide, and several local supermarkets that offer Michigan-made products sell her caramels. “This has really opened up a lot of doors for people like me,” Martin said. “People here are very, very conscious about supporting their own state.” What happened to Martin illustrates the power of Michigan’s buy local movement. Advocates say the grassroots campaign has gained momentum during the state’s deep recession because many business owners and consumers view buying local as a way to support their communities during tough times. But whether buy local is just a fad or something that will endure after the economy rebounds remains to be seen. A wake-up call The movement reached a turning point in December 2008 when top executives of General Motors, Chrysler and the UAW went to Capitol Hill to plead for government help, according to Lisa Diggs, founder of the Buy Michigan Now campaign. The criticism caused many Michiganders to realize that the only people that could help their state are themselves, Diggs said. Buy Michigan Now has attracted more than 2,500 businesses to its company directory. Although no one knows how large the buy local movement in Michigan is, more than 960 dues-paying members have joined groups promoting the cause that have sprung up in recent years in Ann Arbor, Grand Rapids, Kalamazoo andJackson. “You do have the power to affect how your community looks and feels by how you spend your money,” said Ingrid Ault, executive director of Think Local First of Washtenaw County, which has 224 members. How much of a boost? Supporters say the movement is helping Michigan’s economy, but no studies have been done to prove this. Civic Economics, an economic consulting firm, has estimated that $68 of every $100 spent at a locally-owned business stays in the local economy in the form of wages, taxes, community donations and spending on local business services and supplies. In contrast, only $43 stays in the local economy when $100 is spent at a nonlocal business. In 2008, Civic Economics examined the Grand Rapids area and predicted that a 10% shift in market share from chain stores to local businesses across the retail spectrum would result in 1,600 new jobs in Kent County and $137 million in additional economic activity. Although statistics like these have aided the movement, its growth has been hampered by consumers who feel it’s too expensive and inconvenient to buy local products and services. Consumer convenience A March 2009 survey by the consumer and product research firm Mintel found that only 1 in 6 adults, or 17% of respondents, buy local as often as possible. That contrasts with 27% who don’t care where their food and services come from and 30% who say they would purchase local goods and services but don’t know where to find them. “We are a society of convenience and price,” said Kriss Giannetti, president of JXN Local First in Jackson, which has struggled to increase interest in buy local efforts. To overcome these perceptions, several entrepreneurs in Michigan have established businesses to help consumers buy local. In September, James and Patti Travioli of Mt. Pleasant officially launched MadeInMichigan.com , an online marketplace where vendors can sell their local products directly to consumers and businesses. “People are seeing all the jobs lost. They are getting kind of fed up and trying to do whatever little thing they can,” said James Travioli. Another company, Argent Tape & Label in Plymouth, sells “Grown in Michigan” and “Made in Michigan” stickers to help businesses identify their Michigan-made products. So far, despite very little advertising, Argent has seen a steady demand for the stickers, said Melissa Toth, the company’s marketing specialist. School fund-raisers In Waterford, former teacher Neil Yaremchuk recently formed the Made in Michigan Marketplace, a fund-raising program for schools, churches and other groups that feature 19 of the state’s products, all under $15. He is in talks with several schools interested in the program. “We don’t just make things here. We make really good things here,” said Yaremchuk, who drove 16,000 miles around the state this year looking for Michigan products and meeting with business owners. Many of the state’s supermarkets also are playing a key role in the movement by featuring more Michigan produce, baked goods and other foods. This year, Meijer is increasing its spending on locally grown fruits and vegetables to $60 million, up 20% from 2009 levels. At Wal-Mart, 4.5% of the total produce it sells in the U.S. comes from local farmers, a number it plans to double by the end of 2015. Last year, Kroger spent more than $400 million on Michigan agricultural products, in addition to selling hundreds of Michigan-made food items. State advantage “I view the buy local movement as building a big lifeboat for us,” said Jim Hiller, CEO of Hiller’s Markets, whose seven stores sell more than 5,000 products made or grown in Michigan. Though he admits that the effort has probably decreased his company’s bottom line, Hiller said he wants to help the state be successful. Michigan has an advantage over many states when it comes to buying local. It is blessed with a large and diverse agricultural industry, with 1,588 licensed food processors, according to the Michigan Department of Agriculture. The state produces more than 200 commodities on a commercial basis. How hard is it to buy local in Michigan? Earlier this year, Jennifer Berkemeier, special events director at the Fillmore Theater in Detroit, set out to buy only local products and services for six months, blogging about her experience onbuymichigannow.com . To her surprise, the 44-year-old Farmington Hills resident discovered that despite her busy schedule and full-time job, it only took a little bit of extra time and effort to shop at independent stores and purchase Michigan products and services. And contrary to perception, buying local didn’t cost her more money. Berkemeier estimates that she could find Michigan vendors for 80% of her purchases. “It wasn’t hard at all,” she said. “The biggest eye-opener was realizing how many locally based stores there are.” • CONTACT KATHERINE YUNG: 313-222-8763 OR KYUNG@FREEPRESS.COM 