Cara Walton, representing a Michigan consulting firm focused on small manufacturers, spoke of a profit squeeze. Higher costs across the board, from borrowing to raw materials and labor, are forcing some companies to hit the brakes on crucial equipment upgrades. She explained that the combination of expensive financing and slowing demand was creating a double whammy.
“Small manufacturing companies with young leaders have never run a business with interest rates like this… it’s uncharted territory for us,” Walton said.
Derrick Chubbs, CEO of Second Harvest Food Bank of Central Florida, said that rising costs for basic necessities were creating a “perfect storm” for low-income families. His nonprofit now distributes 300,000 meals daily.
“We’re basically in the midst of a perfect storm,” Chubbs said, though he noted some optimism with Orlando rents declining for the first time since 2020, likely due to the Fed’s policies.
Labor economist Svenja Gudell, of job site Indeed, offered a slightly brighter note. She pointed to signs of cooling in the previously “frenzied” job market, especially in higher-wage fields like technology.
Source: mpamag.com