Main Street Businesses Adapting to Counter Inflation & Ongoing Challenges

The Main Street Index (MSI) takes the pulse of and gauges the outlook for small and mid-sized businesses (SMBs) like yours, and provides useful data and actionable resources for your organization to leverage.

The Q1 2022 CBIZ Main Street Index* found small and mid-sized businesses (SMBs) are showing resiliency by making operational and other necessary changes to combat high inflation, along with ongoing staffing and supply chain challenges. 

 

TOP CONCERNS

Similar to Q4 2021, inflation, staffing shortages and supply chain disruption are the top three concerns of small and mid-sized businesses in Q1 2022. In fact, nearly two in three businesses said inflation is placing the biggest burden on their operations Further, over half of the respondents (53%) indicated they were 6-20% short staffed. However, employee headcount continued to show growth (38%), slightly outpacing Q4 2021 (35%).

 

RESPONSES TO HIGH INFLATION

In response to “What is your organization doing to combat the impacts of inflation?” almost 70% of SMBs said they are increasing prices, with 19% of them implementing price increases of more than 10%. Additionally, 37% are implementing cost-cutting/cost-control strategies, while 30% are investing in technology to improve efficiencies.

 

COMBATING THE GREAT RESIGNATION

As The Great Resignation continues to plague organizations across the country, SMBs are implementing various strategies to combat the mass exodus. Notably, 45% indicated they were enhancing their employee compensation packages and/or their health and financial benefits packages. Additionally, 40% have supplemented their staff with independent contractors.

 

 

STRATEGIES TO IMPROVE BUSINESS GROWTH

When asked to indicate what areas their company will focus on to increase business growth over the next 12 months, respondents indicated increased pricing, up from 23% last quarter, adapting operations and technology investments as their top three priorities.

 

 

STRONG CONSUMER DEMAND IS A DRIVING FACTOR IN THE POSITIVE OUTLOOK OF MAIN STREET BUSINESSES

*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 in 27 industries across the U.S.(Not all those surveyed in the CBIZ Main Street Index are CBIZ clients.) The index assesses a range of timely trends, including business sentiment, staffing needs, areas of growth and decline, and adapting to a changing workplace.

Get More Main Street Insights Here

Download a PDF of the Main Street Index and sign-up for monthly email updates by filling out the fields below.