Arizona small businesses feeling strain of inflation, supply-chain woes
Apr 6, 2022, 10:15 AM
(AP Photo/Michael Dwyer)
PHOENIX – Small businesses in Arizona are feeling the strain of sky-high inflation on the heels of pandemic-related struggles and it’s testing the state’s economy, a Valley economist said.
Jim Rounds of Tempe-based Rounds Consulting Group said the people providing services to the consumers are feeling the pinch as much as their customers.
About 1 million Arizonans work within about a half-million small businesses.
“The economy is still out of balance from the COVID recession and it’s going to take a little longer to get back to normal if we don’t get inflation under control,” Rounds told KTAR News 92.3 FM on Tuesday.
Small businesses are being impacted by supply-chain issues and additional costs, he said.
“Transportation prices are higher because of the fuel costs. That gets passed along to the consumer and at the wholesale level to these small businesses. Inflation touches everything eventually.”
A new Business.org report found that 89% of small business owners in America have increased their prices to counter inflation.
The same survey showed 64% said they were not able to acquire the products they need to meet customer demand due to supply-chain shortages and that 37% of customers have complained about increased prices.
Even though the holiday season is months away, the report says 25% of the small businesses are worried that they won’t have the products they need for shoppers.