Federal Spending

The World’s Biggest Customer

The World’s Biggest Customer 150 150 Jonathan Poland

the U.S. government is the world’s biggest customer, spending over $6 trillion annually on goods and services. Here are some statistics to support this claim:

  • The U.S. government is the largest purchaser of goods and services in the world, accounting for over 20% of global government spending.
  • The U.S. government spends more on goods and services than the next 10 countries combined.
  • The U.S. government is the largest employer in the world, with over 2 million civilian employees, and over 1.3 million active-duty military personnel, plus more than 800,000 reserve and National Guard members.
  • The U.S. government is the largest purchaser of technology in the world, accounting for over 50% of global government technology spending.
  • The U.S. government is the largest purchaser of energy in the world, accounting for over 20% of global government energy spending.

The U.S. government’s large size and spending power make it a major driver of the global economy. The government’s procurement decisions can have a significant impact on the fortunes of businesses large and small.

  1. Budget: In fiscal year 2021, the U.S. federal budget was approximately $6.8 trillion. This includes both mandatory spending, such as Social Security and Medicare, and discretionary spending, such as defense and non-defense programs.
  2. Defense spending: In 2021, the United States had a defense budget of about $740.5 billion, making it the world’s largest military spender. The U.S. military budget accounted for more than one-third of global military spending.
  3. Federal procurement: The U.S. government spent roughly $600 billion on procurement in 2020, purchasing goods and services from various industries, including defense, healthcare, technology, and infrastructure.
  4. Federal workforce: As of 2020, the U.S. federal government employed about 2.1 million civilian workers and over 1.3 million active-duty military personnel. In addition, there were approximately 811,000 reserve and National Guard members.
  5. Grants: In fiscal year 2020, the U.S. federal government awarded more than $750 billion in grants to state and local governments, nonprofits, and other organizations to fund various programs and initiatives.

In 2022, the federal government spent a record-breaking $159 billion on contracts with small businesses. This represents 27.2% of all federal contracting dollars, and is an increase of $13 billion from the previous year.

The federal government has a number of programs and initiatives in place to support small businesses, including the Small Business Administration (SBA), which provides loans, grants, and other forms of assistance to small businesses. The SBA also offers a variety of programs to help small businesses compete for federal contracts, including the 8(a) Business Development Program, which provides contracting opportunities to small businesses owned by socially and economically disadvantaged individuals.

If you are a small business owner, there are a number of things you can do to increase your chances of winning federal contracts. First, make sure you are registered with the SBA and that you have a DUNS number. Second, familiarize yourself with the federal contracting process and the requirements for bidding on contracts. Third, network with government officials and other small businesses that have been successful in winning federal contracts. Finally, be persistent and don’t give up. Winning a federal contract can be a challenge, but it is possible for small businesses to succeed in the government marketplace.

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