Local spending could nearly quadruple the impact on the Saskatchewan economy.
A new study commissioned by the Saskatchewan Industrial and Mining Suppliers Association and performed by PricewaterhouseCoopers shows that each dollar spent exclusively with local suppliers would generate $1.51 in total economic benefit to the province compared to the 39 cents that would be generated by purchases from out-of-province suppliers.
Eric Anderson, the Executive Director of SIMSA says they have already met with mining companies to discuss buying more supplies from local suppliers including Nutrien.
Anderson says in March, the Saskatoon based company sent 40 of their top purchasing people to meet with SIMSA members for a day to explain what they want and how to purchase better.
The SIMSA Executive Director adds companies are doing a lot to provide access to the local supply chain to their procurement people.
The average spending between local to out-of-province spending by resource companies is a 63/37 split according to the study.
The study also tracked the economic impact of spending for out-of-province resource companies on Saskatchewan suppliers, noting that every dollar spent in Saskatchewan generates $1.12 in economic impact for the province.
Anderson says the numbers used in the study are figures from 2018.
SIMSA has grown from 74 to 207 members over the last three years. Anderson says as more suppliers join them, they can contribute even more to the Saskatchewan economy.
(CJWW)
