RESULTS + DISCUSSION

According to the latest data from the US Census Bureau there are 45 accounting firms employing 536 people on Barnstable County in 2020. The seven accounting firms recirculated an average of 63.2% of their revenue within Barnstable County. This compares to 42.1% recirculation for the largest corporate owned accounting firms. This represents a 50% local premium for the local accounting firms.

According to the latest data from the US Census Bureau there are 48 fitness centers employing 576 people on Barnstable County in 2020. The seven fitness centers surveyed recirculated an average of 58.7% of their revenue within Barnstable County. This compares to 31.8% recirculation for the largest national chain fitness centers. This represents an 85% local premium for the local fitness firms.

Based on the data from the survey local service providers recirculate 50-85% more of their revenue into the local economy than their corporate competitors.

This difference is largely due to the amount of labor that takes place at locally owned businesses compared to the larger national brands. This allows the local accounting firms to provide more specialized care for the local clients. This was especially apparent during the pandemic when these locally based accounting firms were able to help their clients navigate the varying COVID relief programs by knowing the vast spectrum of local and state regulations with much more detail than their national competitors who were not as versed in these local and state plans. Additionally, it is clear from the labor costs for local fitness centers, the level of engagement and personal touch is much higher at the local fitness centers as compared to their corporate competitors.

Local personal + business services

Recirculate

50-85%

MORE OF THEIR REVENUE into the local economy than their corporate competitors.

The comparisons above are based on the premise of national firms that maintain a physical location in Barnstable County. When comparing local firms to a virtual or online service, the difference is even more dramatic. There is virtually no economic benefit to Barnstable County when using a business service that is not located on Cape Cod. All that money is leaving the community with no economic impact at all. Local service providers not only generate needed local tax dollars and jobs, but they typically recirculate some of their revenue to other locally based businesses which, in turn, continue the virtuous cycle. This money eventually winds up improving the local community whether it is going to build schools, roads, parks and providing other essential services to Barnstable County a better place for to live.

Civic Economics has yet to encounter a situation where independents did not present a distinct local impact advantage. This report is the first in the series to focus on the impact of service providers.