The National Federation of Independent Business (NFIB) has released its first energy survey, examining how energy costs affect small business operations in New Jersey and across the country. The survey gathered responses from 775 small business owners representing various industries.
Eileen Kean, NFIB New Jersey State Director, stated: “The value of this survey is the tool it provides New Jersey policymakers on how small businesses rank energy usage and cope with energy costs. Energy costs play a critical and growing role in the operation of small businesses, and they are often one of the largest costs for owners in operating their business. Our members and small business owners across New Jersey hope the survey will contribute to better energy policy decisions in Trenton.”
Holly Wade, executive director of NFIB’s Research Center, added: “Small businesses are highly exposed to energy cost increases, have limited flexibility to reduce costs, and experience direct operational and financial impacts as a result. As owners work to absorb the impact of energy costs into their business, it can often limit their ability to hire, retain talent, and grow.”
According to the survey results, about 80% of respondents said that energy expenses significantly affect their businesses. Most reported that heating and cooling are their main sources of energy expenditure. Other major expenses include equipment operations and vehicles.
While two-thirds of participants indicated that efficiency matters when replacing vehicles, only a few have adopted electric or hybrid options so far.
Small business owners reported limited strategies for managing higher energy prices. The most common approaches were accepting lower profits or raising prices for customers.
NFIB has advocated for independent businesses at both state and national levels since 1943. More information about NFIB can be found at nfib.com.
