Partnerships with small and diverse suppliers are fueling economic growth and creating jobs worldwide. According to Supplier.io’s annual Economic Impact Report , supplier diversity initiatives have created over 1.4 million jobs, generating $105 billion in total income.
The report reveals $168 billion spent directly with these suppliers generated a total economic impact of $303 billion.
Providing business with supplier intelligence mitigates risks by helping companies find and invest in small and diverse suppliers which in turn supports economic growth, explains Aylin Basom, CEO of Supplier.io.
The companies featured in the report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers.
These purchases created a ripple effect driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts – demonstrating how every dollar spent with small or diverse suppliers generated $1.80 in broader economic value.
Employment
The group recognized the leaders in terms of employment as follows:
- 40K+ Jobs: CVS Health
- 20K+ Jobs: Cummins, JPMorganChase & Co., Pacific Gas and Electric Company (PG&E)
- 10K+ Jobs: Cencora (formerly AmerisourceBergen), Eaton Corporation, Exelon Corporation, Health Trust Purchasing Groups, Southern California Edison Company, Truist
The top job categories are as follows:
- Professional, scientific & technical services
- Administrative & support services
- Construction
Procurement
As far which sectors are growing, the retail and distribution spend increased by approximately 11.58% from 2022 to 2023. While the manufacturing industry saw a 9.59% decrease in spend from 2022 to 2023.
Top purchase categories were as follows:
- Professional, scientific, and technical services $35 B
- Wholesale Trade $19 B
- Construction $17 B
- Administrative and supportive services $ 11 B
- Computer and electronic product manufacturing $9 B
"Responsible sourcing drives positive business outcomes and measurable community impact," said Basom.
