A study in Springfield, Mo. shows that hiring local workers on the city’s public works projects would increase sales at local businesses by $71 million, save or create 400 jobs and increase local tax revenues by $11 million over 5 years compared to to hiring nonlocal companies and labor.
The study by the University of Illinois at Urbana-Champaign focused on a local business-preference program under consideration by the city council. It proposed offering an 8% bid credit to local businesses bidding on city-funded public works projects. Under the proposal, businesses could bid up to 8% more than out-of-town companies and still win the bid.