08/15/2008
CONTACT: Mike Diegel, 202-314-2004
WASHINGTON, D.C. -- When asked by the president of the United States how the energy crisis is affecting his business, David Guernsey, owner of Guernsey Office Products Inc. in Chantilly, Va., didn't hesitate.
"In every way possible," he told President Bush during a meeting at the White House.
"We've seen a tripling of our fuel budget in the last two and half years," said Guernsey, who was invited to represent the National Federation of Independent Business, America's leading small business association.
In addition, he said, "Every manufacturer that we deal both inside and outside the U.S. is increasing prices as high as 40 percent. That is truly frightening in terms of inflation. The American consumer is going to be hit with these prices."
Guernsey said the cost affects his staff as well, all of whom must drive to work. "I worry that they may start looking for jobs closer to home," he said.
Guernsey added that the president also talked about increasing domestic energy supplies with offshore drilling, and additional nuclear power plans, among other ideas. Guernsey added, "I don't talk to anybody that doesn't agree with that. We must mitigate the supply with more of our own sources."
According to NFIB research, energy costs are the second most critical problem facing America's small business owners today. More than 37 percent of businesses have energy costs linked primarily to operating vehicles, and the single largest business cost for more than 10 percent of small businesses is related to energy used in the business. In addition, NFIB's August Small Business Economic Trends report showed that the percent of owners citing inflation as their No. 1 problem remained at 20 percent, the highest reading since January 1982.
"While we all are aware of the importance of energy conservation, we can't afford to ignore the need to increase our domestic energy supplies to help small business owners cope with these costs," said Dan Danner, NFIB's executive vice president. "The longer Congress waits to act, the more it will cost, putting additional pressures on the key contributors to our country's economic well being, America's small businesses."
