Reaction to inflationary pressure by owners and managers of small transportation businesses has been to raise prices says the Small Business Research Board (SBRD) in its most recent study.
Drawing on data from the second quarter 2008, SBRB research co-sponsored by International Profit Associates, found that 51% of those reporting were experiencing inflationary pressures. Of those respondents, 70% were raising prices while 30% were adding to or increasing shipping and handling costs and 25% were renegotiating existing customer pricing agreements.
The SBRB study is comprised of a voluntary survey it conducts each quarter. Participants are drawn from small businesses across the country. For this most recent nationwide survey, more than 1,000 small business owners participated.
Consistent with most recent news, in looking at the economy generally 56% of respondents expected it to worsen, which seems to be happening as the year progresses. Asked the question at the end of the first quarter, some 42% said they thought the economy would worsen.
Moving into the third quarter and beyond, just 38% of respondents felt their revenues would increase. Only 28% were planning to increase hiring.SBRB has created a Transportation Industry Small Business Confidence Index that draws on the outlook for the general economy, growth in revenue and hiring expectations as its key indicators. The Index decreased by 15.33% from first quarter 2008 figures to a low of 26.33.