Survey: Inflation Continues to Challenge U.S. Businesses Despite Settling Rates

A new survey conducted by SumUp reveals that inflation remains a persistent challenge for businesses across the United States. While inflation rates have moderated in recent months, 85% of surveyed business owners reported negative impacts on their operations over the past two years, and 94% continue to closely monitor inflation trends.

The findings, based on responses from 300 business owners, highlight ongoing struggles with rising costs, declining profitability, and strategic adjustments to mitigate the effects of inflation.

Inflation’s Nationwide Impact

The survey painted a bleak picture of inflation’s reach. Despite some stabilization in overall rates, 64% of participants anticipate reduced profitability in the coming year. Businesses across various sectors have had to adapt their strategies, with 84% adjusting pricing and 61% factoring in price increases. Many have also implemented cost-cutting measures, with 55% reducing operating expenses.

One participant described the pervasive impact: “Inflation has affected every aspect, from everyday operating costs like heating and cooling our facilities to purchasing and transporting materials and goods.”

State-Level Analysis: Maine Leads in Inflation Challenges

The survey identified Maine as the state most negatively affected by inflation, with a high impact score of 80.40. Businesses in Maine cited rising energy costs as a major issue, and all respondents from the state reported delaying investments or hiring.

Other states ranking high on the impact scale included South Dakota, Tennessee, Mississippi, and Iowa. Across these states, business owners reported delayed growth plans and mixed success with inflation-mitigation strategies.

Hardest-Hit Industries

The leisure and entertainment industry scored the highest for inflation impact, with customer demand and pricing named as the primary challenges. Other sectors facing significant difficulties include:

• Wholesale and Distribution: 80% of respondents expect a decline in profitability over the next year.
• Real Estate and Property Services: 90% reported needing to adjust pricing strategies.
• Automotive: Supply chain disruptions remain a top issue, with 100% of participants highlighting distribution costs.
• Transport and Storage: Respondents expressed concerns over sustained inflationary pressures into 2025.

Small Businesses Bear the Brunt

Inflation’s impact on small businesses was particularly pronounced. Key findings included:

• Negative Sentiment: 92% reported adverse effects from inflation in the past two years.
• Operating Costs: 71% highlighted rising energy and material costs as a major challenge.
• Delayed Growth: 35% postponed investments and hiring due to financial strain.

Despite these challenges, some businesses have found ways to adapt. While 63% raised prices, others diversified suppliers or sought to optimize operational efficiencies. However, only 49% of small businesses reported their strategies as effective in mitigating inflation’s effects.