Novato small businesses unite to fight rising costs of inflation, oil shock

Businesses dealing with inflation, oil shock

Small business owners in Novato gathered to strengthen networking and collaboration in response to rising costs and economic pressures.

Novato, California - Small business owners in Novato gathered at City Hall for an Economic Development Advisory Commission meeting to brainstorm networking and growth strategies.

Local merchants are reporting a surge in membership and collaboration to offset the financial impact of soaring energy prices and shipping delays.

While gas prices in California have climbed to an average of $6.01 per gallon, economic experts suggest the labor market and consumer spending remain remarkably resilient.

The combination of tariffs, inflation and a significant oil shock is taking a toll on North Bay businesses and consumers alike. Faced with constantly rising prices, business owners in Novato are cooperating and innovating to ensure their community remains economically viable.

On Thursday evening, local small business owners met at Novato City Hall for an Economic Development Advisory Commission meeting focused on networking and collective problem-solving.

Miriam Karell of the Marin Small Business Development Center stated that the goal of the session was to help individuals build new connections to grow their businesses. Meeting facilitator Ed Troxell added that effective networking is essential for driving more business in a challenging climate.

The session comes as energy prices create a significant burden on the regional economy. Jim Wilcox, an economics professor at the University of California, Berkeley’s Haas School of Business, noted that rising gasoline costs disproportionately affect lower-income residents, leaving them with less discretionary income for other purchases.

Since Feb. 19, the national average for a gallon of regular gas has risen from $2.93 to $4.30. In California, the average has hit $6.01, which is $1.71 higher than the national average. Despite these figures, Wilcox suggested that the economy remains healthy, though in a "precarious" situation due to ongoing shipping shocks. He noted that, so far, businesses and retail customers have not significantly cut back on spending.

Local merchants are also finding ways to mitigate costs for their customers. Tom Young, owner of Pini Ace Hardware, said many businesses are offering discounts and sales to help the community. "What works at my store, hopefully can work at somebody else’s," Young said.

The Novato Chamber of Commerce reported a record-breaking year for growth, signaling a desire for merchants to band together. Kim Stahley of the Novato Chamber noted that the organization saw nearly 100 new members join last year — the most in its 111-year history — and is on track to match those numbers this year.