Study Finds Inflation, Supply Chain, And Staffing Issues Still Hampering Recovery

Earlier this month the NFIB released its latest Covid Survey detailing the ongoing impact of the pandemic on small businesses. The latest report in the series includes an update on prices, supply chain disruptions, sales levels, staffing shortages, and more.

“The small business recovery continues to be held back due to soaring inflation, ongoing supply chain disruptions, and staffing shortages,” said Holly Wade, executive director of NFIB’s Research Center. “Most small business owners have raised their prices to adjust to the numerous challenges they are facing.”

Key findings include:

Prices

• About three-quarters (73%) of small business owners have increased their average selling prices due to supply chain disruptions and/or increased compensation due to staffing shortages.
• Of those who raised prices, 44% have raised prices by 10% or more, another 30% have raised prices by 5% – 9.9%.

Supply Chain Disruptions

• Over half (51%) of small business owners reported supply chain disruptions had a significant impact on their business. Another 30% of owners reported it had a moderate impact and 14% reported a mild impact.
• Eighty percent of small business owners experiencing supply chain disruptions reported that the disruption is causing lost sales opportunities to some degree.

Staffing Shortage

• Twenty-four percent of owners are currently experiencing a significant staffing shortage and another 18% are currently experiencing a moderate staffing shortage.
• Of those owners currently experiencing a staffing shortage, 23% are experiencing a significant loss of sales opportunities and 22% reported a moderate loss of sales opportunities because of the staffing shortage.

The entire NFIB 22nd Small Business Covid-19 survey is available here.