'Tough all round': Cost increases add to local businesses' woes

On top of that, the business suffered water damage in the recent heavy rains, and now needs to replace the entire floor.

All of this has occurred as Illawarra businesses now have to deal with petrol price spikes, shortages of skilled labour and delayed deliveries of essential parts and supplies.

Read more: With rising living costs, how much is the average Illawarra grocery bill?

The combination of all these factors has forced Shaz Harrison, who operates Manic Organic and founded Need a Feed in Wollongong, to cut back the number of food gift boxes they deliver to local charities

"We were distributing around 400 food gifts a month and we're down to about 120 a month now," she said.

"People are finding it harder to donate food to us due to the current situation, it puts pressure on everyone in many ways. We do the best we can with the funding available to us."

The food boxes are a lifeline for those on low incomes.

But as petrol prices spike, cost of living pressures are hitting the most vulnerable.

"This will add to the stress for people on a low income. When you've got $30 a week to your name after you pay your bills, buy food and pay rent, the increased petrol prices is even more pressure," Ms Harrison said.

Petrol is not the only commodity that has rapidly increased in price recently.

Steel prices are hurting Mitchell Heffernan, owner of Picton manufacturing business Arex Precision.

Mr Heffernan said that prices had been on the rise since June last year, but accelerated in the first months of 2022.

"The going rate for profile plate was around $1800-$1900 a ton last year, and it's up around $3000 a ton now."

This has led to Arex having to sell products at a loss.

Mr Heffernan said that while steel prices rise and fall, his business is more affected by a shortage of skilled labour.

"It takes eight to 10 years to train a young person from scratch to be a tradesman. It's not a two or three year, quick traineeship."

The business is looking to solar panels and automation to offset uncertainty.

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