New Zealand businesses reliant on transport and logistics are bracing for higher costs and potential disruption as fuel price concerns surge, with a new MYOB survey showing most SMEs are already preparing to respond.
The survey of more than 230 SME decision-makers found 55% are “very” or “extremely concerned” about the impact of Middle East tensions on fuel pricing and supply, while a further 27% are moderately concerned. Just 3% said they were not concerned at all.
Fuel’s importance to operations is clear, with 61% of respondents saying it is “critical” or “very important” to their business — either directly or through transport and logistics.
Rising costs are already flowing through supply chains. More than half (52%) of SMEs said supplier price increases were the biggest impact from higher fuel costs, followed by their own fleet costs (47%), courier and freight expenses (41%), and supply chain disruption (30%).
MYOB chief customer officer Dean Chadwick says the situation highlights how quickly global events can affect local operators.
“The conflict escalation in the Middle East is a blunt reminder of how quickly global events can flow through to local business conditions, particularly when it comes to a commodity like fuel,” Chadwick says.
“For many SMEs, fuel isn’t optional – it underpins everything from getting goods to market, transporting their own supplies, travelling to connect with customers and keeping day-to-day operations running.”
He says sentiment had been improving earlier in the year, but attention has now shifted to managing risk.
“Now, faced with another major economic challenge, attention has turned quickly to assessing what fuel supply and pricing levels mean for their business and how they can get ahead of it.”
Businesses are already modelling the potential impact of prolonged disruption, including effects on costs and cashflow.
If conditions worsen over the next month, SMEs say passing on higher costs will be the most likely response, with 37% planning to increase prices. Reducing spending in other areas follows at 35%, while 16% would look to change transport or logistics arrangements and another 16% would encourage working from home or reduce on-site days.
Some are also considering increasing stock levels or cutting operating hours.
Chadwick says while fuel pressures are largely outside operators’ control, there are steps businesses can take to manage the impact.
“From regularly reviewing costs and maintaining visibility over cashflow, to having open conversations with suppliers and partners about pricing where needed,” he says.
“New Zealand’s small and mid-sized businesses are resilient, but they don’t operate in isolation.”
