Supply chain issues are lump of coal for local shops

Supply chain issues are giving Lakes Region small business owners headaches, at a time when they should be making the most of the holiday shopping season. New Leaf of Laconia, Little Dog and Lake Effect both of Meredith are all feeling the supply chain issues. However, industry experts say that there are some steps that small businesses can take to manage the challenge.

New Leaf co-owner Lisa Harris said that her small business is feeling the effects “a little” because they anticipated delays and shortages; New Leaf ordered their holiday merchandise over the summer and was able to get almost all their merchandise in time. There was only one wholesale vendor that is still unable to meet their needs.

Michaela Copeland, the owner of Lake Effect in Meredith is also feeling the results of the issues caused by the breakdown of the supply chain. Anticipating those delays, she ordered early in the year for the holidays, Michaela said that 25% of her inventory will not be in on time. In order to compensate for that loss Michaela decided to buy extra inventory that she knew she could get in time for the holidays.

The Little Dog Paper Co. has had to push back deadlines to fulfill their contracts with Barnes & Noble. David Ayers, co-owner of The Little Dog, said their store could not get their 110-pound card stock to print their greeting cards on, which meant they did not have inventory for their store or to send to their buyers. Ayers added that the issue depended on which company they were buying from. “Blue Q which is located in Massachusetts ships ground and usually gets here on time, it’s businesses like Whiskey River that are the issue. They sent out an email saying they wouldn’t be able to fill any more orders this year.”

Karmen Gifford, president of the Lakes Region Chamber of Commerce, had similar things to say about how the supply chain crisis is affecting other small businesses in the area. “It has a trickle down effect,” Gifford said, “Look at HK Powersports, if bigger businesses can’t get in their parts they can’t provide smaller businesses with what they need.” Gifford also cited smaller businesses not being able to get in paper goods or even meat products, meaning restaurants are also feeling the effects.

Gifford mentioned advantages small businesses may have including more direct interaction with consumers that bigger businesses do not usually have. That facilitates a better relationship with the consumer.

Rita Toth, a business advisor for NH Small Business Development Council and owner of Skin Great LLC, said that this is a brand new challenge coming from the pandemic. “It’s an uphill battle for small businesses right now.” Toth said. Toth said that this means issues with shipping, pricing as well as issues with raw materials. Breweries haven't been able to get bottles and home improvement contractors have had challenges getting lumber. Shipping is a two-fold problem according to Toth, freights are increasing prices alongside delays because of congested ports. Toth also cited consumers being used to on-day shipping which small businesses just cannot provide. Pricing comes into play here, with higher shipping costs and more delays businesses often have to raise prices to make a profit.

Toth said that ways for small businesses to avoid some of the delays are to diversify suppliers and to work with a freight forwarder and spend a little extra to go through a less congested port. She also said that buying more and buying early can help a business keep stock on the shelves.

Advantages that small businesses have right now according to Toth are federal small business loans and grants coming from the federal government. She also said that customers tend to be more patient and have more empathy for local businesses.

Though these businesses seem to have been able to maneuver their way through this so far, the supply chain remains at issue for local businesses.