Durango-area businesses are struggling with staffing and supply shortages, according to survey results released this week by the Chamber of Commerce.
The chamber surveyed upward of 125 businesses asking about staffing, price increases and supply chain issues. A majority of businesses came to the same conclusions.
In the survey, businesses were asked if gas prices had impacted their business, and 71% said yes.
Maria’s Bookshop owner Evan Schertz said freight costs have increased. He said Maria’s orders directly from its suppliers and have noticed a change in free freight minimums.
“What we’ve mostly seen is just that those order minimums have gone way up,” he said.
Businesses were asked if they were fully staffed, of which only 58% said yes. When 101 businesses were asked about the pay level of their open positions, 38% said openings were in the $20 per hour or less range.
Ska Brewing co-founder David Thibodeau said staffing has been a tremendous challenge. Because of staffing problems, the brewery hasn’t been open seven days a week since the COVID-19 pandemic started.
“We just in the last couple of weeks opened on Sundays and Mondays, but our kitchen isn’t open. So we have a food truck that comes on Sundays and Mondays,” he said.
Finding kitchen staff has been a struggle for Ska. Specifically, Thibodeau found that line cooks are harder to attract. On the production side, Ska has struggled to find delivery drivers. He said the position has started to show promise in the last two weeks as Ska has come close to becoming fully staffed with drivers.
“And I know we’re not alone,” he said. “You know, if you go downtown on a Sunday or Monday night, it’s almost hard to find a place that’s open right now.”
Schertz said Maria’s has struggled with staffing at every position. He said the recruiting time frame has been the hardest part. When employees leave, it can take six to eight weeks to fill a position.
He said it might be a result of heightened demand for labor giving prospective employees a large market to choose from.
“I have folks who are currently employed looking for new work and looking to change things up,” Schertz said. “And folks who are not currently employed looking for new employment. So I guess we’re hiring from both pools there.”
Sixty-three percent of businesses said they are struggling to receive goods this summer.
Thibodeau said Ska is struggling with aluminum can supply, which is a result of multiple causes. One cause is the rapid increase of craft brewing nationwide and its dedication to diversifying what breweries sell in retail. For example, not only do breweries sell their most popular beers in stores but also products like seltzers. With all of these added products, more aluminum cans are used, decreasing supply.
“With the pandemic there was a lot of pantry buying and stocking up,” he said. “And as new beverages in the category of seltzers and sparkling waters have emerged, there’s just been an incredible demand for cans.”
Ska’s largest can manufacturer also stopped distributing to smaller suppliers like craft brewing companies. Thibodeau said inflation played a role but it is more likely that commitment to larger beverage suppliers took precedence.
He said higher demand during the pandemic backed up supply chains and led to shortages and cost increases.
“When you’ve got containers and trucks sitting and can’t be unloaded, that causes a shortage of availability in transportation,” he said. “And so anytime there’s a shortage, that’ll increase the costs because you have to pay more than the next guy.”
Fifty-eight percent of businesses said they had to increase prices to consumers this summer.
Thibodeau said he’s seen prices increase across the board. He said beer has become increasingly more expensive. According to the consumer price index, the cost of a six-pack had increased $1.36 within the last year as of May.
Ska, which also operates a food service called The Container, has also seen increases in the cost of food items, but not at the same rate as other restaurants, Thibodeau said. Because Ska offers mostly pizza and salads, he said the prices have been more reasonable.
Schertz said most of Maria’s price increases have occurred in his non-book inventory. Because publishers set prices for books, those costs tend to remain stagnant.
He said price increases for non-book items such as toys and puzzles have increased because the supplier is charging more, not the store itself.
“We’ve always had the principle to only raise our prices when our supply costs have increased from the publisher or from the supplier,” Schertz said.
tbrown@durangoherald.com
