Inflation is at a 40-year high and qualified, committed workers seem scarcer than ever. Yet profits are up strongly for many local businesses from a year ago and a majority of owners still expect things to improve for their businesses in the coming year.
Such is today’s pandemic-hardened, survival-of-the-fittest economy, where all manner of fiscal, logistical and health-related challenges still threaten Rhode Island businesses. Yet unlike the early days of the pandemic, most businesses are more confident in their ability to weather whatever comes next, says Edward M. Mazze, a University of Rhode Island distinguished professor of business administration.
Still, as this week’s cover story on PBN’s biannual business survey reports, an increased chance of survival won’t automatically translate to profits if ongoing worker shortages and supply chain challenges linger.
For Daniel Dwight, CEO and president of manufacturer Cooley Inc., the difficulty finding and keeping capable workers includes new hires failing to show up and workers quitting in the middle of a shift.
“It’s a concept that’s completely foreign to me,” he said of having to regularly worry if he has enough workers to fill orders.
A Feb. 10 virtual PBN summit on economic trends warned that inflation won’t fade anytime soon.
But panelist Craig Pickell said the “state of chaos” such economic pressures create for businesses is also making survivors stronger.
“We are learning new tricks,” said Pickell, chairman and CEO of Bullard Abrasives Inc. “We will … get through it.”