Survey: Inflation, labor, supplies all concerns for Ohio small businesses

Nearly every small business owner in Ohio is concerned with inflation, labor shortages and supply chain disruptions, according to a recently released study by the National Federation of Independent Business.

The survey showed 99% have serious concerns with those issues, with nearly half (49%) now more worried about growing inflation than any other problem. Ongoing labor issues ranked as the second-largest concern at 35%, while 15% ranked supply chain problems as their top concern.

“Ohio entrepreneurs are seeing hiring issues compounded by supply chain issues, and on top of that sky-high inflation. All these issues combined are dramatically increasing their costs, and these costs cannot, for a number of reasons, all be passed on to consumers,” said Roger Geiger, executive director for NFIB in Ohio.

Geiger said 89% of small business owners have had to increase prices recently, with 33% of those saying they have hiked prices more than 10%.

Staffing shortages continue to have a negative impact on Ohio small businesses, the survey showed, with 72% saying they are having staffing issues. More than half said it is a very real problem.

One-third of businesses said they have had to alter operations due to a lack of employees. One-third of small business owners say they are personally having to work more hours to compensate.

Nearly 90% of respondents to the survey said the cost of gas is now having an impact on their businesses, and for one-third, the impact has been significant. Increases can also be seen in labor costs, material costs and inventory costs.

Gas prices climbed to more than $5 per gallon in some parts of the state for the first time Tuesday afternoon.

“If there is one important message to all policymakers, it is that now is not the time to be adding any additional government mandates, raising business taxes or fees or creating impediments to hiring. While small business owners are usually optimistic, this survey shows they are facing significant economic challenges even while not yet fully recovered from the two years of the pandemic. If Ohio’s small business community falters, so will the entire state’s economy,” Geiger said.

A report issued by Alignable, a national online network for small businesses, showed nearly one-third of Ohio small businesses could not pay rent in May after experiencing rent hikes at a rate among the highest in the nation.

The numbers showed 32% of small business owners in Ohio could not afford to pay May’s rent. That represented a 13% jump from April.