The World’s Biggest Customer

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.

Learn More
Working Style Jonathan Poland

Working Style

Working style refers to an individual’s preferred approach to performing their job and completing tasks. This can include factors such…

Direct Marketing Jonathan Poland

Direct Marketing

Direct marketing is a type of marketing that involves communicating directly with potential customers in order to generate a response…

Media Analysis Jonathan Poland

Media Analysis

Media analysis is the study of the structure, content, and methods of communication in various forms of media. This involves…

Attribution Marketing Jonathan Poland

Attribution Marketing

Attribution marketing is the practice of identifying and analyzing the key events or actions that contribute to customer purchases or…

Risk Management Process Jonathan Poland

Risk Management Process

Risk management is the practice of identifying and mitigating potential risks that could result in financial losses or other negative…

Data Breach Jonathan Poland

Data Breach

A data breach is a security incident in which sensitive, protected, or confidential data is accessed, disclosed, or stolen. Data…

Market Potential Jonathan Poland

Market Potential

Market potential is the entire size of the market for a product at a specific time. It represents the upper limits of the market for a product. Market potential is usually measured either by sales value or sales volume.

Autonomous System Jonathan Poland

Autonomous System

An autonomous system is a system that is capable of functioning independently, without the need for human intervention. Autonomous systems…

What is Food Sovereignty? Jonathan Poland

What is Food Sovereignty?

Food sovereignty is the right of peoples and countries to define their own food and agriculture systems, rather than being…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Strategy 101 Jonathan Poland

Strategy 101

Business strategy is the set of actions and decisions that a business takes in order to achieve its goals and…

Technology Factors Jonathan Poland

Technology Factors

Technology factors are any external changes related to technology that may affect an organization’s strategy. Identifying and analyzing technology factors…

Design to Value Jonathan Poland

Design to Value

Design to value refers to the design requirements and considerations that aim to maximize the value of a product or…

Continuous Improvement Jonathan Poland

Continuous Improvement

Continuous improvement is a systematic approach to improving products, services, and processes over time. It involves a cycle of planning,…

Product Markets Jonathan Poland

Product Markets

A product market is a venue where buyers and sellers can exchange goods or services. Product markets can be large…

Public Capital Jonathan Poland

Public Capital

Public capital refers to the physical and intangible assets owned and managed by the government for the benefit of society.…

Work Quality Jonathan Poland

Work Quality

Work quality refers to the value or merit of the work that is being performed by an individual, team, or…

Knowledge Capital Jonathan Poland

Knowledge Capital

Knowledge capital refers to the resources and capabilities that enable a nation, city, organization, or individual to engage in knowledge…

Talent Development 150 150 Jonathan Poland

Talent Development

Talent development is a critical aspect of organizational growth and improvement, and it focuses on the processes, strategies, and practices…