Survey Finds Inflation and Supply Chain Issues Disrupting All Aspects of Small Business
Published Thursday, June 30, 2022
DALLAS – June 30,
2022 –
National Write Your Congressman (NWYC), an organization that gives small
businesses a voice in government, released its latest Quarterly Index which
found 90 percent of business owners citing a disruption of services, operations
or manufacturing due to problems with the supply chain. Half of business owners
see supply chain problems easing in more than one year, and 31 percent believe
problems will not ease for another two to five years.
“Inflation and supply chain issues have permeated
every part of small business and every industry. Small business owners are
having to make hard decisions on whether to stay open, grow, hire more
employees, scale back and pass on the additional costs to customers,” said Randy Ford, president
and COO of National Write Your Congressman. “Our members are motivated to
connect with their member of Congress to share their concerns as they expect
these problems will not be over for another two to five years.”
Furthermore,
74 percent of business owners are seeing increased prices on inventory,
products and materials. Only four percent of business owners say supply chain
issues are not affecting their business.
“Inflation
and supply chain shortages have caused us to purchase and maintain higher
inventory levels of many materials and supplies and has created the need for
complex contingency planning. We are a strong company and will continue to be
successful, but I fear many companies will not make it through these tough
times,” Spencer Jorgensen, Co-owner, ADCON Signs in Fort Collins, Colorado.
Business
owners have had to change the way they conduct business due to inflation and
supply chain issues: 66 percent are passing on costs to their customers, 11
percent are conserving funds by not ordering certain materials or inventory
that is unnecessary, and 18 percent are re-thinking the way they do business.
"High
gas prices and supply chain issues have caused us to change how we do
business. It affects every aspect of our
business model,” said Tim Alderson, President, FarmPLUS Insurance Services in Keeling, Virginia.
Thirty-two
percent of business owners surveyed said their business was currently growing when
asked about the overall state of their business. Forty-six percent of small
business owners said their business has remained flat. High inflation,
following by hiring qualified workers, and keeping up with rising costs of
employee pay/salary were the top three concerns for business owners.
“Supply
chain issues, inflation and now gas prices are making us adjust our prices so
high that we are losing long serving customers that can't afford our services
any longer,” said David Jacobi of Adventure Sports in East Stroudsburg,
Pennsylvania.
"Rising
inflation is hurting our business in several ways. The rising interest rates are driving up our
costs of purchasing new equipment, and the inflation seems to have the
consumers slowing down in the needs for our services,” said Gary Hoffman of Tow King in Waco, Texas.
Congressional
Sentiment
Congressional
sentiment grew slightly from last quarter. Fifty-seven percent of small
business owners said they are confident their U.S. Congressional Members know their opinions on important
issues, a percentage point increase from last quarter. Thirty-six percent
believe their own elected U.S. Congressional Members act according to their
constituents' input. Thirty-five percent of small business owners surveyed said
they trust the elected U.S. Congressional Members who represent them. NWYC’s Quarterly Index Score
increased with an overall increase in hope, satisfaction, and trust in
Congress. Members’ trust, hope, and satisfaction with their local
government was highest compared to their satisfaction, hope, and trust in state
and national government. More information can be found in the Q1 2022 Quarterly Index.
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 1 to June 13, 2022.
A total of 1,014 respondents
participated. Respondents represent 48 of the 50 states in the U.S. Fifty-six percent
of business owners surveyed employ 1-9 employees and 40 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.
