Buy Local, Build Local: The Positive Economic Impact of New Construction in the Community
There’s probably no better time than now to remind Corpus Christi, TX residents to support local businesses. In recent years, policies seem to favor the most prominent corporations. However, relevant research is proving what many of us already know: locally owned businesses DO matter, and supporting local businesses create more prosperous communities.
A good example would be the positive economic impact of new construction in a community. Both from a government standpoint and that of small business owners (SMEs), the construction industry has gained the spotlight in terms of its contribution to the economy, causing a positive ripple effect throughout different industries.
Below are some of the ways the construction industry benefits local businesses and the communities as a whole.
1. Local Network, Local Supplies
This is one of the main ways the construction industry supports and impacts local businesses – by procuring local supplies. Local builders have connections with plumbers, electricians, and other local vendors they have worked with.
Local businesses benefit from this increased patronage, from the sale of construction supplies, as well as from sales to the new residents. This increased prosperity – both of the owners and workers of the project – allows them to purchase from other local ventures more.
2. Local support
While promoting B2B relationships in the community, the construction industry employs local workers, resulting in an increase in construction-related jobs that are available to the locals. The construction industry provides jobs, wages, and keeps the income in the community. This, in turn, will improve the local economy, as the workers employed in the project will have wages to pass along to other local businesses.
The construction industry doesn’t stop giving after the project has been completed. There will always be a need for support and maintenance. This means having teams of suppliers and workers readily available for repairs and other maintenance work. This equates to continuous community growth.
3. Support to Local Businesses
Some construction renewal efforts bring in talents from nearby areas, but even this fact can have a good impact on local businesses. Aside from the direct purchase of local construction materials, construction workers make purchases that affect the community’s economy. All local businesses – that nice restaurant in the corner, quaint coffee shops, and gas stations — can see an increase in traffic due to the workers in the community.
Business owners in the community tend to understand how their decisions impact their neighbors, making them more involved. For example, local businesses may donate to the community’s shelter, sponsor Little League Teams, or participate in community charity events.
4. Increases Tax Base
When a consumer patronizes local, a significant amount of that money stays in the community. The income generated by construction projects is taxed locally, so the revenues stay within the local community and support local schools, parks, and community. In turn, local businesses tend to patronize their own, giving some of the profits from their businesses back to the community, sparking more growth.
5. Tourism
More construction attracts more tourists, and more reasons and opportunities for a community to become a stopping place.
6. Better Customer Service
When you personally know the people behind the business, you’ll enjoy convenience and a connection you would not otherwise have. In the construction industry, this means that the company can complete routine check-ups, maintenance, and cover warranty items much more smoothly.
7. New Residents
Over time, the positive economic impact of new construction becomes more apparent on the local economy. The National Association of Home Builders reported that building 100 homes in a single area means an additional $28.7M in local income, as well as $3.6M in revenue to the local government. This also means about 394 jobs for the local community.
In time, new income for both the community and the government will pave the way for more construction projects, more people moving in to support the communities’ local businesses, and big growth for the general economy.
Housing Attracts People, People Attract Business
Indeed, the construction industry plays a big role in the overall health of a community’s economy and is instrumental in revitalizing neighborhoods.
Hogan Homes is a family-owned and operated business – born and raised in South Texas. As a local builder, it understands building in the South Texas climate and conditions. Our construction projects benefit our local economy, personal relationships, and help boost the community. So, if you’re considering purchasing a new home in Corpus Christi, TX, remember that local matters.