Report Finds Supply Chain Disruptions And Staffing Shortages Still Impacting Half Of Small Businesses
The NFIB Research Center has released its newest Covid-19 Small Business survey which offers fresh insight on supply chain disruptions, staffing shortages, and sales levels impacting small business operators.
“Supply chain disruptions and the staffing shortage have become substantial issues for small businesses across the country,” said Holly Wade, executive director of NFIB’s Research Center.
Some of the report’s key findings include:
Supply Chain Disruptions
-Half of small business owners reported that supply chain disruptions have a significant impact on their business, up from 32% two months ago.
-More than half (55%) of owners impacted report that the supply chain disruption is worse than it was three months ago.
-The vast majority (86%) of owners anticipate supply chain disruptions will continue for at least the next five months or more.
-More than one-quarter (27%) of small employers are currently experiencing a significant staffing shortage and another 18% are currently experiencing a moderate staffing shortage.
-Of those small employers currently experiencing a staffing shortage, 25% are experiencing a significant loss of sales opportunities and 27% a moderate loss of sales opportunities because of their inability to fill open positions.
-About half (49%) of small employers are receiving fewer job applications for their open positions than they received one month ago, and 36% are receiving about the same amount.
-Small employers are adjusting to attract employees for open positions. Seventy-seven percent reported increasing wages, 17% increased paid time off, 16% offered or enhanced hiring bonuses, 18% offered or enhanced referral bonuses, and another 21% offered or enhanced health insurance benefits.
-Small business owners are also making business operation adjustments to compensate for the staffing shortage. Forty-one percent of owners are offering more hours to part-time employees, 64% are offering overtime to full-time employees, and virtually all (88%) owners reported that they were working more hours.
-Sales levels are 50% or less than they were pre-crisis for 15% of small businesses with another 18% at sales levels of 51%-75% pre-crisis levels.
-Forty-one percent of owners are back or nearly back to where they were with sales between 76%-100% of pre-crisis levels. About one-in-four (26%) are exceeding pre-crisis sales levels.
-Twenty-one percent of owners report that economic conditions are back to normal now in their area. Another 6% of owners anticipate it taking until the second half of 2021 and 23% anticipate sometime in the first half of 2022 before economic conditions return to pre-crisis levels.
Vaccinations and Face Coverings
-About one-quarter (26%) of owners are asking employees if they are vaccinated, up from 19% two months ago.
-When asked about mandating employee vaccination, 83% of small employers have no requirement or have not considered requiring employee vaccination. Fourteen percent of owners have considered mandating vaccination and 3% require employee vaccination.
-Twenty-five percent of owners reported requiring employees and/or customers to wear a face covering. Of those businesses requiring face coverings, 27% found it difficult to enforce the face covering requirement.
This publication marks NFIB’s 19th Covid-19 Small Business survey covering the health crisis impact on small business operations and economic conditions. The newest survey was conducted during the first week of September.
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