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W W W. M A I N E B I Z . B I Z 23 M AY 1 8 , 2 0 2 6 F O C U S S M A L L B U S I N E S S For small businesses, "it's all those things hitting at once that makes it unique," says Brien Walton, a busi- ness professor at Husson University in Bangor. "It's almost as if a lot of busi- nesses are afraid to hear the next bit of financial news." Double whammy Rising inflation pressures and broader uncertainty are taking their toll on small business confidence, as shown in the latest quarterly barometer by the U.S. Chamber of Commerce. Out of 751 small business owners and operators surveyed between Feb. 15 and March 11, more than half cited inflation as their biggest concern. While that's been the top challenge for more than four years, worries over the cost of employee benefits are also rising. As businesses grow more cautious, significantly fewer plan to add staff or ramp up investments in the year ahead — a trend that raises red flags with Tom Sullivan, the chamber's senior vice president for small business policy, pointing to worries about consumer spending drying up. While Sullivan doesn't expect that to happen as long as the job market stays tight, he views rising gas prices as a double whammy for small business owners — driving up input costs and dampening their expectations. "You've got the spreadsheet impact and the emotional impact," he says. "ose things can be pretty devastating for a small business outlook." As small businesses face price pressures from larger suppliers, their ability to adapt quickly — evident in the surge of start- ups launched after the pandemic — is a strength, he says. 'Adapt or die' For many businesses, small changes can go a long way to boost efficiency. At Graze in Northport, owner Kate Hall reduced the size of bottles for cold-press juices to save $15,000 a year. "Adapt or die" is the guiding princi- ple for the former fashion designer, who started growing microgreens for health reasons and launched her juice business in 2018. To save money on distribution costs, she joins other small businesses on co-shipping across Maine, sharing delivery runs with the Blue Hill Co-op about an hour away and Tortilleria Pachanga, a wholesaler in Scarborough about two hours to the south. "at's been really helpful, saving on operating costs," says Hall, who plans to soon source ginger from a grower instead of importing the spice from Peru. She currently has 11 employees on staff, with plans to add six part-timers this year as she develops a shelf-stable product; that would have higher profit margins than the current lineup of juices that stay fresh only for three weeks. Seeking to stay ahead of broader market pressures without getting overwhelmed, Hall says her goal is to "focus on my job and not be con- sumed by all of the noise." Estabrook's, a Yarmouth-based operator of garden centers with 30 employees year-round and more than 100 in the busy season, is also expanding while seeking to keep a lid on costs through a combination of measures, including targeted price increases in line with inflation over the past five years. On the operational side, the com- pany aims to save on energy costs at its 55,000-square-foot state-of-the- art production greenhouse in Pownal completed last year. e complex is equipped with natural ventilation, shade curtains to protect plants in the summer with irrigation from a pond that collects water from rain and snow. While it's too early to quantify the cost savings from the new facility, co- owner Tom Estabrook says that "we're very happy and pleased with the effi- ciencies we've gotten there." Find a credit union near you at mainecreditunions.org Local Businesses Start Here. Maine Credit Unions understand what it takes to build a business. We offer flexible loan options and hands-on financial support tailored to your needs. From startup funding and expansion planning to trusted guidance, we provide the tools to help you grow and succeed. Whether you're just getting started or planning your next phase, we're committed to helping your business—right here in Maine. C O N T I N U E D O N F O L L OW I N G PA G E » P H O T O / C O U R T E S Y O F G R A Z E At Graze in Northport, owner Kate Hall says reducing bottle size saves $15,000 a year.

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