Developing a Local Procurement Strategy for Philadelphia’s Higher Education and Healthcare Institutions


Audit Date: April 29, 2015

Audit Categories

  • Other
Controller: Alan Butkovitz

Audit Tags

  • Anchor Institutions,
  • Commerce,
  • Economic Development,
  • Permits and Fees,
  • Procurement,
  • Taxes

Executive Summary


For Immediate Release
April 29, 2015

Contact: Brian Dries
215-686-8869

Controller Butkovitz Issues Roadmap to Revitalizing Philadelphia’s
Manufacturing with New Jobs
City Controller Joins with Eds & Meds, Manufacturing
& Business Leaders in Support of Initiative

Developing A Local Procurement Strategy for Philadelphia’s Higher Education
and Healthcare Institutions

PHILADELPHIA – City Controller Alan Butkovitz today joined with leaders of Philadelphia’s higher education and medical institutions (Eds & Meds), manufacturing and business community to support the Anchor Procurement initiative that would generate 1,250 new manufacturing jobs in the city.

The initiative outlined in the Controller’s latest report indicated that if universities and hospitals would increase their local procurement by 25 percent in targeted sectors, it would also generate 4,000 indirect jobs and have a total economic impact of $292 million for Philadelphia. The targeted sectors include surgical supplies, medical equipment, HVAC, commercial refrigeration and office supplies.

“This is a roadmap to revitalizing manufacturing jobs in the City,” said Butkovitz. “We matched what we make here in Philadelphia as a way to produce a supply and demand gap analysis – focusing entirely on manufactured goods.”

“It will take a concerted effort on the part of the institutions, manufacturers and many other business organizations to move this initiative another step forward,” said Butkovitz.
According to Controller Butkovitz, the Eds & Meds that were analyzed purchase $860 million in manufactured goods annually with only 16 percent procured locally.

The five anchor institutions that participated in the Controller’s study included Drexel University, The Children’s Hospital University of Pennsylvania, Thomas Jefferson University Hospital, University of Pennsylvania and Temple University.

“We’ve analyzed our procurement budget to understand where there are opportunities for local purchase and we’re working with partners to identify local vendors who can fit our procurement needs,” said Lucy Kerman, Vice Provost, Drexel University.

“Connections in the supply chain have to be made and this initiative is a great start,” said Steve Jurash, President and CEO, Manufacturer’s Alliance of Philadelphia.
“We are committed to furthering our local economic impact where possible which contributes to the health of our patients, our population and our community,” said Hugh Lavery, Vice President, Thomas Jefferson University Hospital.

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City Controller’s Anchor Procurement Initiative: City Controller Alan Butkovitz initiated the Anchor Procurement Initiative in his 2014 Inaugural Address as a means to generate local jobs through Philadelphia’s universities and hospitals. Current support has included the following: Drexel University, The Children’s Hospital University of Pennsylvania, Thomas Jefferson University Hospital, University of Pennsylvania, Temple University, Manufacturers Alliance of Philadelphia, Sustainable Business Network, Local Initiatives Support Corporation, Philadelphia Industrial Development Corporation and the Delaware Valley Industrial Resource Center.