A survey by Express Employment Professionals found that high inflation is impacting 92% of US companies, with 87% adding that this will affect their operations for years to come.
The survey included 1,003 US hiring decision-makers and took place between May 3 and May 23.
In response to the high inflation rate, 40% of companies have raised prices, while 39% have absorbed some additional costs.
The survey also found that 27% have adopted new technology to automate processes, while 24% have reduced transportation and 18% have outsourced a portion of their work.
Looking ahead, out of 87% of businesses that predict inflation fallout is here to stay, 43% say it will be in the form of increased prices of goods and services. Thirty-eight percent claim it will be in the form of increased wages, while 35% cite increased taxes. Another 31% feel inflation will stay as increased interest rates, and 24% believe it will exist as decreased sales or revenue.
In addition, 47% of US hiring decision-makers agree or strongly agree with the sentiment that their company won’t be able to survive much longer if wages continue to increase at this pace. However, Dave Robb, an Express franchise owner in Michigan, notes that wages and other rising costs are translating into higher prices, which isn’t causing much pushback from their customers.
“Companies actually seem less worried than you would expect because they have such pent-up demand for products,” Robb said. “They are not worried about losing customers due to price increases. The bigger challenge is finding the workers to fill orders and meet demand.”
Moving into late 2022, Robb believes inflation will start slowing as excess product demand will begin to taper off.
The next several months are critical for business owners waiting for market conditions to somewhat stabilize, Express Employment International CEO Bill Stoller said.
“From labor and supply shortages to high gas prices and soaring inflation, American business owners are understandably frustrated right now,” Stoller said. “Without some relief, I fear the impact of current conditions could affect the economy for years to come.”