In a global competitive market it seems that we can buy goods anywhere in the world. However, many businesses are choosing to make a point of trading within their local geographic area, as well as regionally and nationally. But does buying locally really make economic sense, or are we only being good to our neighbours?
Well, it would appear that recent research conducted in collaboration with Northumberland County Council would say the answer was a resounding yes. The study showed that every £1 spent locally generates £2.76 in the local economy, compared with £1 spent outside of a local area only generating £1.30 in the local economy.
The link between local regeneration and purchasing goods for the use of local people is clear. This is not a statement to advocate protectionism, because this region would lose out.
This is a call to recognise what we have got, build on it and identify areas of opportunity.
By doing this, not only are we building good relationships with our neighbours, but we are supporting the local supply chain, which enables business growth and the ability to compete in the global market.
Not only does this make good business sense, but it also contributes to our social and environmental awareness, employing local people and reducing the carbon footprint.
The definition of value for money has been widened by the Office of Government Commerce to include value for money "optimising the cost of delivering a service or goods over the full life of the contract rather than minimising the initial price".
The continuation of a competitive local supply industry can often bring long-term benefits that outweigh added costs in the short-term.
To buy or not to buy can be a question with more than one outcome.
The economic benefits do stretch further than just pound notes, but also to sustainable jobs and business growth and development.
So, we are not only being good to the neighbours, but ensuring that the neighbours stay in business.
* Joanne Fryett is North-East Chamber of Commerce's head of member relations
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