(The Center Square) – Connecticut businesses are facing rising costs for supplies and day-to-day operating expenses as supply chain shortages and inflation continue amid the COVID-19 pandemic. 19.
walking producer price indexwhich measures supply conditions across the economy, rose 1.4%, signaling stronger consumer demand while dealing with the ongoing supply chain crisis which is further pushing up prices. costs of doing business.
“Manufacturers in Connecticut have been very busy, but we have both a labor shortage and supply chain issues,” Jamison Scott, executive director of ManufactureCT, told The Center Square. “We’re a very diverse manufacturing state, so supply chain effects vary on the industry. Connecticut also has some of the highest energy costs in the country, and manufacturers have demands energy levels, so it’s a double whammy.”
Small businesses are also struggling.
“According to the latest NFIB survey, more than two-thirds, 77%, of our small business owners said inventory, supplies and equipment were a significant contributor to rising costs,” said Andrew Markowski, State Director of the Connecticut National Federation of Independent Business. Center Square. “At the same time, 77% of small business owners said rising gas prices were contributing substantially to rising costs.”
Markowski said that as a result, Connecticut businesses and manufacturers have had to pass their costs on to consumers.
According to the organization’s latest survey, inflation is the biggest problem affecting small business owners, surpassing problems with hiring workers.
“Inflation is a major issue right now that every person in Connecticut is feeling,” Markowski said. “Small business owners don’t want to raise their prices, but when they have to pay more for supplies and supply chain issues that lead to supply delays, they have to pass those costs on to consumers.”
Scott said everyone pays for raises.
“For example, my galvanized steel costs have gone up over 50% in 12 months – I absorb some of it and have to pass some of it on to the customer,” Scott said. “Stainless steel costs are more than three times higher than about a year ago. In my case, I am putting a project on hold until prices come down, however, others have urgent projects and have to pay these absorbing prices and have to pass them on to their customers.In a loop, in many cases, their customers are so busy that they are willing to pay, hence the inflation.
Scott said Connecticut manufacturers are extremely lean in terms of lean manufacturing, maximizing productivity while minimizing waste, but that hasn’t exempted them from the challenges of doing business in this climate.
“Each of these challenges is a big deal, having multiple challenges (worker shortage, supply chain crisis) has been excruciating at times, but we use our Yankee ingenuity and are resourceful and prevail over these challenges,” said Scott. “By the way, there is still a global pandemic that we are all facing.”