The recently released 2023 Supplier Diversity Economic Impact report by Supplier.io highlights the impact on job creation and economic growth through small and diverse business spend. The firm analyzed the data of over 300 organizations spending over $160 billion with over 124 thousand unique suppliers.
Key findings include:
- 326 companies spent over $160 billion with diverse suppliers across multiple industries and supported over 1.3 million jobs
- The average organization spent $1.28 million with diverse suppliers.
- On average, $1 spend with small and diverse supplies turned into $1.80 in the community.
- Tax revenue to global community through small and diverse spend was $31. 4 billion.
"Responsible sourcing is a competitive differentiator, which is why 97% of enterprise executives continue to support supplier diversity programs,” said Aylin Basom, CEO of Supplier.io, in a statement. “By investing in small and diverse suppliers, companies are not only fostering innovation and enhancing their supply chain competitiveness, but also effectively reducing risks and costs. Most importantly, it enables businesses to support their communities and fuel economic growth.”
The report also launches its inaugural Supply Chain Diversity Excellence Awards, which include supply chain diversity leaders from a include companies across a wide variety of industries, including healthcare, retail, manufacturing, telecommunications, and transportation. CVS Health and Constellation Energy are among the leading brands celebrated for fostering job creation, economic growth, and tax contributions within the global marketplace.
The datal also shows that minority-owned, women-owned, and veteran-owned businesses are among the fastest-growing segments for job creation. The professional, scientific, and technical services industry supported the most job growth, with $35.7 billion in spend to support over 200K jobs.
And from a geographical perspective California is the leader in supplier diversity, generating the most jobs, wages, and tax revenue, followed by Texas, New York, and New Jersey.
