Local First Arizona believes the leadership at Phoenix City Hall is moving in the right direction with respect to the inclusion of Arizona owned companies bidding for new contracts for the city’s towing. A new towing contract proposes that Phoenix be divided into four zones, with local companies All City Towing and DV Towing being recommended for three of the four zones. The fourth zone is expected to go to an out of state company, Western Towing. The Phoenix City Council is reviewing staff’s recommendation that supports local businesses and will ultimately vote on the matter. Previously, the towing contract went to United Towing, a company based in Chicago that had a monopoly for many years.
The city’s actions will keep far more dollars, more jobs and more economic impact in the community due in large part to the fact that the locally owned towing companies being considered are rooted in Arizona. They utilize local accountants, payroll service providers, web developers, attorneys and more local businesses. Those dollars stay here and recirculate, retaining jobs and creating additional tax revenue for other city services. A procurement study done by Local First Arizona focusing on Arizona based office supply company Wist showed that locally owned companies keep three times of their total revenue in Arizona than an out of state company. Another study shows that for every $100 spent with a locally owned business, roughly $45 remains right here in Arizona. When the same $100 is spent in a national business, only $13 remains here.
Phoenix is making a concerted effort to make sure more tax dollars spent on city contracts go to Arizona based companies. Recently Mayor Greg Stanton implemented a policy to encourage more contracts valued at $50,000 or less to local companies. This new policy shift is expected to generate an estimated $18-$20 million in new business in the local community each year.
Local First Founder and President Kimber Lanning said, “We are now seeing large and small City of Phoenix contracts go to local companies and the positive impact will be measurable and significant. While I hope I am never in the unfortunate situation to have my car towed by the City, it’s encouraging to know that predominately local companies are on the job in three-fourths of the city of Phoenix.”