MADISON – A new survey of Wisconsin businesses found that nearly half of them have seen costs increase by over 10 percent thanks to historically high inflation. According to the Wisconsin Employer Survey, 82 percent of employers have been negatively impacted by inflation and one in five companies have seen costs go up by more than 20 percent.
Wisconsin Manufacturers & Commerce (WMC) — the combined state chamber and manufacturers’ association — conducted the survey over the last three weeks of January on a variety of topics. On Tuesday, WMC released data focused specifically on inflation and the supply chain. It follows data last week that showed business confidence is waning in the face of a persistent workforce shortage, supply chain challenges and historic inflation.
“Inflation is taking a toll on Wisconsin businesses and ultimately consumers,” said WMC President & CEO Kurt R. Bauer. “When companies are facing 10, 20 and 30 percent cost increases, it means consumers will be next in line for double-digit hikes. Unfortunately, we see no signs of inflation easing in the coming months.”
Information from the Wisconsin Employer Survey matches what is happening nationally. The producer price index – which measures the final cost of goods and services paid by employers – was up 9.7 percent over the last year, which is nearing a record high.
“While hardworking Wisconsinites are facing higher prices on everyday items, lawmakers in Washington are just making the problem worse,” added Bauer. “The federal government has flooded the economy with trillions of dollars we don’t have, and President Biden is just accelerating inflation with policies that make it more expensive to fill up our cars and heat our homes.”
Other data from the Wisconsin Employer Survey shows supply chain challenges have yet to ease. Ninety-one percent of businesses have experienced delays or other challenges associated with their supply chain in the last year.
Of those companies, 93 percent saw costs go up, nearly half had to turn down orders because of supply chain issues and some had to cancel product lines indefinitely.
The Wisconsin Employer Survey is conducted twice a year by WMC. The assessment provides a snapshot of where Wisconsin’s employers stand on a number of important issues and outlines their economic outlook for both Wisconsin and the United States. For the Winter 2022 edition, WMC surveyed 265 employers that make up a representative sample of its membership. Businesses of all sizes, industries and geographic locations in Wisconsin participated.
The survey will be released in three separate reports on topics including: the economy; supply chain and inflation; and state and federal public policies.