In a recent study of 750 small to medium-sized businesses, respondents to the latest Michigan Future Business Index (MFBI) indicated inflation remains the number one challenge to doing business, but wage inflation is climbing the list, impacting profits and hiring.
The semi-annual MFBI was commissioned by the Michigan Business Network. The survey is sponsored by Cinnaire and conducted by the Michigan-based market research firm ROI insight. Mark McDaniel, Cinnaire President and CEO, joined Chris Holman, Michigan Business Network CEO, to share the survey results in a forum today.
“Small businesses play a vital role in supporting healthy communities, creating jobs and spurring economic development while contributing to social and cultural value,” said Mark McDaniel, Cinnaire President and CEO. “The MFBI survey provides an opportunity for small business owners to share their insights and provide perspective on Michigan’s economic outlook. We are pleased to join the Michigan Business Network to share the results of the most recent survey.”
The survey found that the wage inflation stressor is growing, as overall inflation continues to impact profits. However, supply chain challenges are subsiding. Sales and profits over the last six months beat Q2 MFBI projections, but uncertainty over business costs and the economy is restraining optimism for the next six months. Additionally, more than one in four respondents say they’ve fully recovered from the COVID-19 pandemic and comments to open-end questions indicate fears of long-term inflation and a recession are easing.
“Although talent acquisition and retention remains a major issue for all employers in the state of Michigan, inflation, and in particular wage inflation, has edged out talent as the major stumbling block for business in Michigan,” said Chris Holman, Michigan Business Network CEO. “In spite of these challenges, however, the majority of Michigan businesses still find Michigan a great place to be in business. And are cautiously optimistic about the next six months.”
Additional findings include:
- Satisfaction with the economy continues to slump.
- Hiring slows as wage inflation eats into profits. Job creators indicate that they’re again focused on ROI when hiring.
- While the intensity has cooled slightly, most still believe Michigan is a great place to do business with a fair tax system.
Click here to view the full report.
About the Michigan Business Network
As a leading voice for small businesses in Michigan, the Michigan Business Network (MBN) believes the people making the decisions need to hear how your business is doing. MBN is an information provider seeking to help grow and develop Michigan’s economic community. https://www.michiganbusinessnetwork.com/