News / Business West
Surge in costs hitting Bristol businesses
Businesses across Bristol are facing unprecedented price pressures from all sides as concern mounts over the impact of inflation and economic uncertainty.
The surge in costs of labour, materials, energy, transport and fuel, compounded by the war in Ukraine, is hitting companies hard, according to a recent survey.
The research conducted by Business West found that concern over inflation, which reached a 40-year high in May, is at the highest level since the question was first posed to companies in 2008, with more than two-thirds of respondents worried about the impact on their firms.
Half of the 400 businesses surveyed have increased their prices over the last three months as a result of the rise in costs. 64 per cent of manufacturers surveyed said they are planning to increase their prices in the next three months, as are half of service-based businesses.
https://twitter.com/bw_businesswest/status/1543973013753942017
Speaking about the ongoing impact on her business, Catherine Frankpitt, director of Redcliffe-based Strike Communications, said: “We’re confident that the demand for our work is there but less confident that clients are willing to pay what we need to charge as costs go up.”
Andy Fraser, the owner of Bristol Community Magazines, said: “Any significant further input cost increases, which cannot be passed on in the current economic climate, will directly impact the ongoing viability of part of my business.”
Business owners’ confidence in their own companies remains higher than in the UK economy, according to the survey findings, but overall confidence has plummeted since the first quarter of 2022.
Matt Griffith says “businesses are having to deal with uncertainty like never before” – photo: Business West
Matt Griffith, the director of policy at Business West said: “Businesses in the region are facing unprecedented price pressures from all sides. Margins are being squeezed by ever-increasing costs of labour, materials, energy, and fuel which have intensified since the outbreak of war in Ukraine, all against a backdrop of widespread global inflationary pressures in trade costs and commodities.
“Businesses are having to deal with uncertainty like never before, from a vulnerable starting position and with little support from the Government who have focused their efforts on households instead.
“It is easy for local and national political leaders to take economic growth for granted. Now is not the time for complacency and businesses are looking for strong leadership to help address their challenges.”
Main photo: Catherine Frankpitt/ Business West
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