Survey of the Current and Potential Impact of Local Procurement by Philadelphia Anchor Institutions January 2014

Audit Date: January 9, 2014
Audit Categories
  • Other
Controller: Alan Butkovitz
Audit Tags
  • Commerce,
  • Economic Development,
  • Permits and Fees,
  • Procurement,
  • Taxes

Executive Summary

For Immediate Release:
January 9, 2014

Contact: Brian Dries

Butkovitz’ Plan Would Create 4,400 New Philadelphia Jobs
City Controller releases study that explores City’s Education & Medical sectors
that could produce millions of dollars in spending & tax revenues

View Anchor Institution Report

PHILADELPHIA – City Controller Alan Butkovitz today released a report that outlines a plan for the City of Philadelphia to create 4,400 new local jobs by partnering with its education and medical anchor institutions.

The anchor institutions included in the Controller’s report represent 18 universities or colleges and 16 hospitals that are located within the City. It is estimated that if these anchor institutions would increase their local spending by 25 percent, it could generate annually $642 million in direct local spending and $14 million in new tax revenues.

“This is a real and serious initiative for the City of Philadelphia,” said Butkovitz, today at a press conference. “The local government’s role would be to coordinate and build relationships, to assist with financing enterprises, and to create incentives for firms to locate here to meet the anchor demand.”

According to the report, the largest annual increase in spending would occur in manufacturing at $283 million. Other spending increases include $192 million in real estate and $41 million in professional services and management

“Now is the time to take the lead and to better position Philadelphia to grow its local economy,” said Butkovitz. “Taking the next step requires cooperation and coordinating across multiple entities.”

“We’re delighted that the Controller’s Office has undertaken this study and look forward to working with our fellow anchors in the coming months to take these findings to the next level,” said Lucy Kerman, Vice Provost, University and Community Partnerships, Drexel University.

According to Butkovitz’ report, in other cities such as Cleveland, Detroit and Baltimore, major foundations and civic leaders have pulled together to devise multi-anchor strategies for reinvesting in the community. Locally, Drexel University and the University of Pennsylvania actively helped develop a local office supply vendor, showing that there is precedent for this model in Philadelphia.

“It’s happening in other cities that have far fewer resources and world-class institutions than we have in Philadelphia,” said Butkovitz. “We can establish the workings and agreements of this program now and then reap the benefits for years to come.”

To view the report, “Survey of the Current and Potential Impact of Local Procurement by Philadelphia Anchor Institutions”, visit the City Controller’s website at