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Small businesses across the country are being hit hard by rising gas prices and the declining state of the economy and, according to recent testimony by the Plumbing-Heating-Cooling Contractors National Association, this is especially true of plumbing, heating and cooling contractors, the majority of whom are small business firms. 
    On April 9, Tim Williford, a small business owner, testified on behalf of PHCC NA, and urged Congress to act quickly to address the constant rise in the fuel costs. Williford, who serves as chairman of PHCC’s Government Affairs Committee, is also the vice president for finance and administration of Southern Piping Co., in Wilson, N.C. 
    Speaking as a small business owner and on behalf of PHCC’s 4,100 members, Williford said the rise in fuel prices has made it increasingly difficult to remain profitable. 
    “At Southern Piping Co. we spent about $1 million for gas and oil products last year," Williford said. "For 2008, we believe those costs are going to increase by 20 percent to 40 percent, or between $250,000 and $500,000. As you can see, even a small change in the price of gas can have a significant impact on our budget. Indeed, we know that for every rise of 10 cents in the price of gasoline, we will incur an additional $35,000 in overhead.”
    He said that, according to a recent PHCC member survey, contractors overwhelmingly believe the high prices are negatively affecting their business: “Over the past two years, our company fuel costs have nearly tripled. Our monthly usage in 2006 was $22,000 per month...it is now $55,000 per month,” he said. “This all happening at a time when the downward price pressure of the market won't allow us to raise our prices.  That's $33,000 right off of the bottom line every month...$400,000”
    To minimize the effect of the rising fuel costs, Williford said contractors are evaluating every means to reduce gasoline consumption, including consolidating transportation to job sites, using smaller vehicles and reducing the number of vehicles on the road.  Although surcharges may have been an option in the past, most contractors believe that this is not a viable solution right now because consumers are also feeling financial pressure because of increasing fuel costs. Visit www.phccweb.org for more information.