National Write Your Congressman Index Reveals Business Owners Express Concerns About U.S. Economic Conditions, Hiring Challenges and Rising Interest Rates
Published Tuesday, July 25, 2023
DALLAS – July 25, 2023 – National Write Your
Congressman (NWYC), an organization that gives small
businesses a voice in government, released its Q2 2023 Index measuring Congressional and business sentiment. The survey found business owners concerned
about hiring qualified workers, keeping up with rising costs of employees’ pay and
salary, inflation, taxes and regulations. Seventy-five percent of business
owners said their business was not growing or has remained flat. The survey found
an overall decrease from last quarter in small business owners’ hope,
satisfaction with government action, and trust with of Members of Congress.
“Business owners are still concerned about U.S. economic
conditions with the majority of businesses affected by inflation, rising
interest rates and a lack of qualified workforce,” said Randy Ford, President and
COO of National Write Your Congressman. “While there is some growth, business
outlook remains bleak with the challenges of regulations, access to capital,
high-interest rates, and running and maintaining a business in these uncertain
economic times. Business owners are feeling an unprecedented sense of urgency
to connect with their Member of Congress. It's a crucial time to make sure
their elected representatives hear their concerns.”
Out of the 75 percent of businesses that are declining
or have remained flat, top hindrances to growth are finding qualified workers
(56 percent), high inflation on raw materials and equipment (51 percent),
uncertainty about the future of the U.S. economy (51 percent), supply chain
issues and the ability to access raw materials and equipment (38 percent), and
high interest rates (37 percent). Businesses experiencing growth attributed it
to implementing changes to restructure and refocus their business (18 percent) and
renewed interest and/or demand in their industry or line of work (16 percent).
“We are very fiscally responsible and do not extend
ourselves beyond our ability from keeping solvent. Our concerns are the consistent rising costs
of materials we sell to stay competitive in our industry. Sales have dropped off. We are extremely fortunate to keep our doors
open when many business have folded,” said Diane Myerscough, Office Manager, Pressure Washer Service, Inc. in Clearwater,
Florida. Eighty-eight percent of business owners have been
affected by rising interest rates personally and in their business. Seventy-two
percent of business owners have had to increase prices of their services or
goods, 31 percent have not taken investment opportunities for themselves personally
or for their business, and 30 percent have said the cost of borrowing money has
negatively affected their business due to high interest rates.
“Our business depends on other businesses thriving.
When they are thriving, we will thrive as well because the people that own
those businesses are the people that will purchase our product for their
personal use. Once the high earners have opted out of purchasing due to a poor
economy and high interest rates, we have a much harder time. We also need to
discount our rates in order to move product and this is very hard on the bottom
line,” said Josh Gedenberg, General Manager, Arrow Timber Framing in Kalama, Washington.
“Our greatest concern is for our homeowners to whom
we provide service. They are seeing
rising costs everywhere. They are
largely fixing immediate needs, such as leaks or clogs, but many are putting
upgrades on the back burner. Now with
the rising costs of everything, they are being squeezed and sadly, we've had to
raise our prices to keep up with our rising costs for product,” said Laura
Engstrom, President, Alternate Design Plumbing, Inc. in Orange City,
Florida.
Economic Outlook
Sixty-four percent of small business owners
believing the U.S. is currently in a recession, a 3 percent decrease from Q1
2023. Twenty-one percent expect the U.S. to be in a recession by 2024. Inflation
is affecting 96 percent of businesses, and 82 percent of owners believe
inflation problems will not ease for another two to five years. Only 2 percent
of business owners think inflation problems will ease by next year.
“The economic outlook for our business is not good.
We are also concerned with all the laws and regulations that make it so
difficult to run a small business. We do not have people that we can dedicate
to just keeping up with all the new laws and regulations that keep piling up.
It is impossible to stay compliant with all the labor, HR, safety, payroll, environmental,
and employment laws that keep changing,” said John Nydam, President, Waterford Irrigation Supply in Waterford, California.
Congressional Sentiment
Fifty-five percent of small business owners said
they are confident their U.S. Congressional Members know their opinions on important
issues. Thirty-nine percent believe their own elected U.S. Congressional
Members act according to their constituents' input. Thirty percent of small
business owners surveyed said they trust the elected U.S. Congressional Members
who represent them, a 30 percent decrease in trust from Q1 2023.
NWYC’s
Quarterly Index Score decreased overall in hope, satisfaction, and trust in
Members of Congress from 2.44 in Q1 2023 to 2.37 in Q2 2023.
NWYC provides members with non-partisan information
and research along with the tools they can use to connect with their
representatives in Washington and advocate for the policies and actions that
will help their small businesses be successful for their families, their
employees, and their communities.
Methodology
NWYC collected data using an online survey
administered from June 19 through July 10, 2023. A total of 1016 respondents participated. Respondents represent 48 of the 50 states in
the U.S. Sixty-two percent of business owners surveyed employ one to nine
employees and 35 percent employ 10-99 employees.
About National Write Your Congressman
National Write Your Congressman (NWYC) is an
organization that gives small businesses a voice in American government. As the
nation’s largest, privately held, nonpartisan membership organization made up
of small businesses, NWYC is dedicated to the delivery of constituent opinions
to representatives in Washington. For more than 60 years, NWYC has provided
small business owners and operators the tools necessary to connect with members
of Congress and a platform to let their collective voice be heard. NWYC’s team
of experts provides unbiased, nonpartisan information and research on top
issues and pending legislation relevant to small business owners today. NWYC
presents both sides of the issue so that members can form an educated opinion
and let their opinions be heard.
