Small businesses say they’re dealing with some of the biggest cost pressures seen in 10, 15 or 25 years of business, and the recent decline in gas prices was a “sole bright spot,” says Simon Gaudreault, chief economist and vice-president of research at CFIB.

“But now this is reversed.”

Small businesses are feeling pinched by rising fuel costs, with 50 per cent citing it as a concern, up from 36 per cent in February. Input product and raw material costs are also causing 44 per cent of small businesses to worry, compared to 32 per cent last month.

Raw materials are often big, bulky goods, such as steel, construction materials and fertilizers, which are expensive to transport, Gaudreault says.

“We see that in the past, when fuel costs were going up, some transportation companies started to add fuel charges,” he said. “We could expect, as is the case in a normally competitive environment, to see some costs being passed down the supply chain.”

Fuel costs are also impacting price plans, which rose from 2.2 per cent to 2.7 per cent over the last month.

Small businesses say they’re dealing with some of the biggest cost pressures seen in 10, 15 or 25 years of business, and the recent decline in gas prices was a “sole bright spot,” says Simon Gaudreault, chief economist and vice-president of research at CFIB.

“But now this is reversed.”

Small businesses are feeling pinched by rising fuel costs, with 50 per cent citing it as a concern, up from 36 per cent in February. Input product and raw material costs are also causing 44 per cent of small businesses to worry, compared to 32 per cent last month.

Raw materials are often big, bulky goods, such as steel, construction materials and fertilizers, which are expensive to transport, Gaudreault says.

“We see that in the past, when fuel costs were going up, some transportation companies started to add fuel charges,” he said. “We could expect, as is the case in a normally competitive environment, to see some costs being passed down the supply chain.”

Fuel costs are also impacting price plans, which rose from 2.2 per cent to 2.7 per cent over the last month.

The increase in price plans suggests owners expect higher costs in the months ahead even if current disruptions ease, as backlogs and potential supply constraints continue to work through the system, Gaudreault says. He expects lower confidence and optimism to continue throughout April.

The CFIB, with nearly full support from its members, is urging the federal government to prioritize increasing Canada’s energy production and capacity to better support the economy and ensure businesses have reliable access to the energy they need to operate. Reference