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How Gas Prices Affect Small Business And The Economy

* HOW GAS PRICES AFFECT Small Business & the Economy GAS PRICES RISE, GAS PRICES FALL & SMALL BUSINESSES FEEL THE EFFECTS GAS PRICES AND BUSINESS WHEN GAS PRICES 72% of small businesses are affected by rising energy costs INCREASE DECREASE Q FUN FACT Shipping & Wholesale Shipping & Wholesale Costs Increase Costs Decrease Some small businesses benefit from higher fuel costs such as those working with alternative energy Small businesses Small businesses pay more for goods pay less for goods and ones that offer domestic savings CUSTOMER PAYS THE SAME Larger due to locked in retail pricing and advertising businesses have higher elasticity and are able to Small businesses take a Consumers shop smaller profit margin on every transaction at larger businesses for cheaper prices adapt quickly to change WHAT HAPPENS TO SMALL BUSINESSES WHEN GAS PRICES ARE UNSTABLE? Gas prices are fluctuating Small businesses have a difficult time predicting whether they need to hire, fire, or maintain current employees Small business owners are unable to predict a steady NOI Decisions based on NOI are difficult to make BETWEEN 2012-2015 GASOLINE PRICES HAVE FLUCTUATED FROM 41% UNDER OVER 2.00 . $5.0 0 to of small businesses altering hiring plans due to energy costs NATIONAL AVERAGE 2014 $2.0 48 22% 2015 $3.2 Z9 of small businesses report reducing employee hours because of high energy costs *PRICES PER GALLON OF GAS DID YOU KNOW? Volatile gas prices, more so than rising or falling, has the highest negative effect on small businesses BUSINESSES THAT ARE POSITIVELY AFFECTED BY HIGHER GAS PRICES LOWER GAS PRICES FOOD TRUCKS AT HOME SERVICE Eliminate 1 entire day's worth of gas purchases to relocate and run a ALTERNATIVE ENERGY Plumbing, landscaping, carpet or floor installation, etc generator for electricity and gas for the kitchen SHIPPING HYBRID AND COMPACT VEHICLES Shipping & handling costs have significantly dropped and/or small businesses are able to offer free shipping, thus stimulating more consumer purchases MOVING COMPANIES Lower hourly rates because lower percentages of revenue have to be reinvested into fuel costs for large trucks/vans ALL "GREEN" FOCUSED COMPANIES LANDSCAPING TRANSPORTATION Reduces ticket prices, more people travel, happier customers Because the cost of fueling vehicles and equipment has dropped (saving $100s a week), the extra revenue has been invested creating more jobs When gas prices decrease, these small businesses are able to increase production, lower prices, and attract more consumers. DELIVERY Reduces delivery fees, customers spend more GAS PRICES AND THE ECONOMY THE EFFECTS OF SMALL BUSINESSES ON THE ECONOMY The success of small businesses is vital for the health of the nation as they account for: 99.7% 64% 49.2% 42.9% of U.S. employer firms of private sector employment of private sector payroll of net new private sector jobs 46% 43% 98% 33% of high tech employment of exporting of private sector output of firms exporting goods value LOWER GAS PRICES AND CONSUMER SPENDING LOWER GAS PRICES RESULT IN AN INCREASE OF DISPOSABLE INCOME. WHICH IS LIKELY TO BE SPENT ON THINGS SUCH AS DINNERS AT LOCAL RESTAURANTS, FUN FACT This amount is estimated to be $40 billion in 2015 EXTRA PURCHASES AT GROCERY STORES, ETC. Q DID YOU KNOW? Consumers are likely to spend two-thirds of their gas savings TOP INDUSTRIES THAT BENEFIT FROM INCREASED DISPOSABLE INCOME AMONG CONSUMERS 24 TRAVEL OFFICE SUPPLIES, NEWSPAPER AND RECREATIONAL STATIONARY, GIFT STORES PRINT INDUSTRIES VEHICLES AND BOATS PRINTING CEMENT AND CONCRETE FURNITURE LUMBER AND OTHER MANUFACTURING CONSTRUCTION MATERIALS Sources: Sept 2012.pdf NATIONALFUNDING

How Gas Prices Affect Small Business And The Economy

shared by StaceySD on Mar 23
We all know that gas prices fluctuate all the time, but do you really understand how much gas prices affect small businesses and the overall economy? The constant changes in gas prices make it hard fo...




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