Main Street businesses are showing resilience in the face of multiple economic headwinds
CBIZ Main Street Index finds small and medium-sized businesses are making the changes needed to counter high inflation, as well as ongoing staffing and supply chain challenges
CLEVELAND, April 27, 2022–(BUSINESS WIRE)–CBIZ, Inc. (NYSE: CBZ), a leading provider of financial, insurance and advisory services, has released the CBIZ Main Street Index for the first quarter of 2022, which takes the pulse and measures the prospects of small and medium-sized enterprises (SMEs). The results reveal a theme of resilience among employers in the face of persistently high inflation, a tight labor market and persistent supply chain issues.
Sixty-four percent of respondents say inflation continues to be the biggest burden on their business, but owners are trying to mitigate the problem by shifting additional costs to customers and reducing core expenses. Nearly 70% of companies note that they are taking action to increase prices, with 20% increasing them by 10% or more.
The survey, which was conducted between March 22 and April 4, analyzes responses from more than 1,400 main street businesses with fewer than 100 employees across 27 industries in the United States. areas of growth and decline, and adapting to a changing workplace.
“Small and medium-sized businesses face a triple threat in this economy,” said Kevin Nussbaum, vice president of new business development, CBIZ Inc. “Inflation remains near record highs, forcing many of these owners to pass the cost on to their customers Unemployment remains stubbornly low, which is becoming a compounding problem for some industries, such as hospitality, which are struggling to keep their workforces up to speed. supply are also impacting certain sectors. Despite all these challenges, companies remain optimistic.”
The data was assessed from a global perspective, as well as by company size, region and industry. An interactive infographic with the results is available on the CBIZ website. Key findings include:
Nearly two in three businesses say inflation is the biggest burden on their operations — 69% say they have or plan to increase prices to combat the rising cost of goods and services. Thirty-seven percent are implementing cost reduction or cost control strategies to control expenses. Additionally, the survey found that 49% of companies will raise prices in order to increase or improve business growth, up from 23% last quarter.
Businesses continue to adapt to the ‘Great Resignation’, increasing headcount as staff shortages persist — Staffing shortages continue to be an issue for the third consecutive quarter, with 52% of respondents saying it remains a major concern. Over 42% say they are understaffed by at least 10%. On the other hand, headcount continued to show growth, outpacing Q4 2021 numbers. social and financial to entice new applicants and current employees, while 39% supplemented their staff with independent contractors.
Nearly half of companies are addressing issues related to supply chain slowdowns — Forty-seven percent of companies see supply chain disruption as an issue negatively affecting their business, but are considering different ways to adapt. Forty-six percent are making changes to their operations, while 40% are investing in technology to improve efficiency.
Strong consumer demand continues to be a key factor affecting positive business outlook – Main Street companies hold steady with earnings and revenue growth carried over from the fourth quarter, but continue to show strong growth from previous quarters from 2021. Fewer companies are reporting declining revenues and revenues profits. Three percent fewer companies are reporting a decline from last quarter and 8% fewer since the first quarter of 2021.
COVID-19 is less of a concern for SMEs two years after the start of the pandemic — Sentiment surrounding the pandemic and its effects on business is beginning to change and is no longer a top concern among surveyed companies. Twenty-five percent of respondents say they are concerned about the effect a resurgence of COVID-19 would have on their business, up from 44% of businesses surveyed in Q4 2021.
*Note: Not all respondents in the CBIZ Main Street Index are CBIZ customers.
CBIZ, Inc. is a leading provider of financial, insurance and business consulting services across the United States. Financial services include accounting, tax, government health care consulting, transaction consulting, risk consulting and valuation services. Insurance services include benefits consulting, pension consulting, property and casualty insurance, payroll and human capital consulting. With over 100 offices in 32 states, CBIZ is one of the largest insurance accounting and brokerage providers in the United States. For more information, visit www.cbiz.com.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220427005138/en/
Gregory FCA for CBIZ, Inc.