BCC press release: firms warn of rising costs from Iran crisis

Four fifths of firms (80%) report an existing or expected impact from the Iran conflict, according to research by British Chambers of Commerce (BCC).  

Energy price increases and shipping costs were the direct impacts most frequently cited by surveyed businesses. Over 800 firms took part in the online research during April, the majority SMEs. 

The research shows over half of firms (55%) said they are already directly impacted by the unrest in the Middle East, while a quarter (25%) expect to be in future. Only 16% said they don’t expect any direct impacts and 4% said they were unsure.  

Manufacturing was the sector reporting the biggest impact, with 68% of businesses already affected. A further 23% of manufacturers said they anticipate they’ll soon be impacted.

According to the research, three quarters of firms (75%) expect an increase in their energy bills in the next year, because of the conflict. 43% of responding businesses said they expect their energy costs to increase by more than 20% in the next 12 months.  

Meanwhile over a third (36%) of businesses told the BCC they will find it difficult to pay their energy bills over the next year. This has risen from around a quarter (27%) at the start of the year. 

“Fuel costs are having a significant impact on my business, and the availability of fuel could become an issue very soon.” 

“Shipping costs are higher, and routes/times are unpredictable. Cost of flights to visit suppliers and customers in Asia are now costing more as the routing options have diminished.” 

“Supplier price increases using force majeure. Increases from 3% to 30% with just a few weeks' notice.” 

“100% of business stopped from Middle East countries”