‘Every time you turn around, there’s a new price increase’: US small-business optimism plummets

Amid rising fuel prices and inflation across the US, confidence among small-business owners has declined in recent weeks as many continue to grapple with higher costs and economic uncertainty. Roger, in Sevierville, Tennessee. Photograph: The Guardian According to the National Federation of Independent Business, its Small Business Optimism Index fell by 0.6 points to 95.3 in May. At the same time, 29% of small-business owners reported having open positions they could not fill – the lowest level since the Covid-19 pandemic. In May, 13% of owners said labor quality was their biggest issue, while 14% identified labor costs as their primary challenge. Beyond workforce pressures, several small-business owners said that inflation and rising fuel costs are further squeezing already thin margins. For Barrett Willits, the 58-year-old owner of Barry’s Blind Factory in Huntsville, Alabama, the challenges are coming from multiple directions. His business, which has operated for 33 years and sells directly to consumers, has been hit by declining sales and rising supply-chain costs. “Sales are down, market share is down. Our suppliers have been bought out by a hedge fund that also owns Heinz. They shut down American-staffed manufacturing outlets and shifted production to Mexico. So now our shipments travel thousands of miles to us when they used to travel 100 miles. Every time you turn around, there is a new price increase, a new shipping rate, a new surcharge,” he said. …