The GROW Regional Economic Modelling Procurement report confirms the ‘local and social procurement’ approach behind the GROW can deliver 2500 jobs by 2020 and $1 billion of economic benefits each year. Economic modelling shows that a 7% shift on current purchasing and employment practice is all that is needed to not only address pockets of disadvantage, but also to have huge flow-on economic benefits across the G21 region.
The results are dependent on regional employers consciously shifting their purchasing towards local suppliers and workers, were they are available, rather than buying and employing outside the region.
Of the more than $17 billion of procurement each year in the G21 region, currently less than half is going to local suppliers, according to the ArcBlue report. And this could be as low as 36%.
The report says one of the strengths of the G21 region is the level of cross-sector collaboration and activity already underway. It says building on existing governance, partnerships and organisational work will ensure success in delivering on the report’s recommendations:
- Establish a Co-ordinated and Integrated Program
- Expand the GROW Compact Model
- Strengthen Procurement Capability and Innovation
- Establish a Local Supplier Portal
- Introduce a Shared Measurement Framework and Dashboards
- Expand Supply Chain Capacity Building
- Introduce a Social Enterprise Development Program
Many of these recommendations are already underway and future progress will be reported regularly on the website.
The ArcBlue report was funded by Regional Development Australia – Barwon South West and overseen by Give Where You Live, G21 – Geelong Region Alliance, Geelong Chamber of Commerce, Regional Development Victoria and the Committee for Geelong.
