With inflation at a 40-year high and ongoing economic uncertainty from Brexit, war in Ukraine and Covid, businesses are feeling the pressure. Deloitte’s most recent quarterly CFO survey found that almost all (98%) finance chiefs are anticipating operating costs will rise, with almost half (46%) expecting these rises to be significant.
The Federation of Small Businesses claims that surging costs across materials, energy and distribution is impacting on companies’ ability to rebound following the pandemic and is “weighing heavily on our economic potential.”
For Sunderland-based soft drinks manufacturer Clearly Drinks, the increases to the price of doing business have been relentless. Its CFO Claire Connolly says that costs, which began rising as a result of the haulage crisis at the start of the year, have now spread across all aspects of the business. Haulage and distribution costs are up 20%, utility prices by around 50% and material costs are up "across the board", she says.