Source: Radio New Zealand
Six in 10 (61 percent) of those surveyed said fuel was critical or very important to their ability to operate. Quin Tauetau
Small and medium-sized businesses (SME) are on high alert as global tensions put pressure on fuel prices and supply.
A pulse survey by MYOB of more than 230 SME decision-makers indicates high levels of concern about being prepared to mitigate operational and financial impacts of fuel pricing and supply.
More than half (55 percent) of the SME business owners and operators said they were very or extremely concerned about the impact of the Middle East conflict on fuel pricing and supply, while a further 27 percent said they were moderately concerned and 16 percent slightly concerned. Just 3 percent said they weren’t concerned at all.
Six in 10 (61 percent) of those surveyed said fuel was critical or very important to their ability to operate.
Just over half (52 percent) said higher fuel costs hit their business the most through supplier price increases, followed by the costs of the business’s own fleet (47 percent), courier and freight costs (41 percent) and supply chain disruption (30 percent).
MYOB chief customer officer Dean Chadwick said ongoing local customer support will play an important role in helping many businesses manage through the pressures and uncertainty they were feeling.
“This is also a time where broader support can make a real difference. For the wider public who are also feeling the pinch, choosing to support local businesses where possible, paying promptly and recognising the pressures operators are under, can all help SMEs navigate what could be a very challenging period ahead.”
More than a third of decision-makers surveyed were considering increasing prices to customers (37 percent), followed by reducing spending in other areas (35 percent), encouraging team members to work from home or reducing days on site (16 percent), and changing transport or logistics arrangements (16 percent).
Increasing stock levels and reducing operating hours were also being considered by some.
“While the current pressures are outside a business owner’s control, there are still practical steps SMEs can take to stay on the front foot – from regularly reviewing costs and maintaining visibility over cashflow, to having open conversations with suppliers and partners about pricing where needed,” Chadwick said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
