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Health and Price High on Jan/San Purchasers' Checklists
TerraChoice releases results of 2009 EcoMarkets™ Green purchasing report

The EcoMarkets' 2009 Report concludes that efficacy/performance is the most important quality purchasers look for in a product.
Of the respondants whose procurement budget increased, 60 percent said they were more active in Green purchasing during the past year.

When purchasers look to buy cleaning and tissue products, some of the top factors that influence their decisions are human health and price, according to the recently released EcoMarkets 2009 Summary Report by TerraChoice Environmental Marketing.

The EcoMarkets Report, an annual survey of Green purchasing patterns across North America, was completed by more than 580 professional purchasers in the United States and Canada between April and July 2009 in partnership with the National Institute of Governmental Purchasing (NIGP), the Purchasing Management Association of Canada (PMAC), and the Sustainability Purchasing Network (SPN). Collectively, these respondents are responsible for spending $24 billion a year while their organizations spend more than $68 billion annually.

With the current recession and the attention H1N1 influenza is receiving in the media, the prominence of these two purchasing factors should make good sense to cleaning product and service distributors. What does this focus on health and price mean for Green cleaning products and services? Findings suggest Green purchasing budgets will continue to rise and the current political administration in the United States will positively impact Green spending.

The economy's impact on Green purchasing

As part of the EcoMarkets study, respondents were asked whether their overall procurement budget increased, decreased or stayed the same over the past 12 months. Of the 21.2 percent whose budget increased, 60 percent were more active in Green purchasing; of the 37.5 percent whose budget decreased, more than half (57 percent) still reported they were more active in Green purchasing; and, of the 30.8 percent whose budget remained the same, 57 percent were more active in Green purchasing. Therefore, despite tougher economic times, Green purchasing has been more active.

To further hone in on the positive outlook for Green purchasing, 64 percent of professional purchasers reported that the current economic situation has had no impact on their amount of Green purchasing relative to "regular" purchasing; 14.2 percent reported a decrease in Green purchasing and 16.1 percent reported an increase in Green purchasing.

More than three-quarters (79 percent) of respondents who believe North America is in a short-term recession (one to two years) predict that their organization will do more Green purchasing in the next two years; 84 percent of those who believe North Americans are experiencing a longer-term recession of three to five years still anticipate more Green spending relative to regular spending will occur within their organizations over the next 24 months. Even respondents who believed at the time this survey was conducted that the North American economy has entered into a depression anticipate that their organizations will do more Green purchasing.

Political influence on green spending

When asked about the effects politics have on buying trends, the majority of respondents (76.3 percent) believe that the Obama Administration will have a positive impact on Green purchasing in North America (more green purchasing will occur); 61.1 percent answered that the administration will have a sustained positive impact and 15.2 percent believe it will have a short-term positive impact.

In contrast, a large number of respondents (42.4 percent) believe that the Harper Government in Canada will have no impact on the state of Green purchasing in North America; approximately 33 percent of respondents believe that the Harper Government will have a positive impact on Green purchasing and 24 percent believe it will have a negative impact on Green purchasing.

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