The pandemic has created an unmatched demand to spend and the only things standing in the way of consumers are the unprecedented price tags due to inflation and empty shelves. We are approaching the mid-point of the year, and everything costs way more than it did when we watched the ball drop just twenty-four weeks ago. In addition to rising costs, the supply chain is still having issues and the ongoing health crisis has caused sporadic mandates to be reinstated. It has been a challenge for companies, yet business is booming. Even with a poor economic outlook, the desire to spend has not wavered. That pent up desire to purchase can be used by companies to not only survive 2022 but thrive during the second half of the year.

There is no way to accurately review 2022 this year so far except by placing a spotlight on current economic issues. The price of goods and services has steadily increased throughout the year and there does not seem to be an easy solution in sight. These hikes have affected every element of business from the sourcing of materials all the way to the checkout line. The continued disruption of the supply chain has only served to further inflate prices and create shortages of essential goods. This has led to panic buying and empty aisles. COVID-19 is also still taking a toll as new shutdowns occur and mandates are temporarily reinstated. Businesses have a difficult road to navigate; however, there is a way forward for the rest of the year.

The biggest boon for companies is how receptive consumers have been to all these challenges. Despite changes in product mix and price increases, consumers are still willing to pay for their goods and services. Acceptance to changes and price increases has its limits, yet the snapback effect from the 2020 crash has compelled them to continue to spend. Businesses should not have total reliance on this trend, and they should be taking active steps to ensure a profitable final half of the year. Maintaining connections and avoiding overreliance a single marketing channel will be important as competition has become the greatest barrier to entry. Continuing to seek new business will allow companies to mitigate supply chain issues and ensure they are getting the most revenue possible.

Another potential bright spot for businesses is the revenue forecasts for the rest of the year. Every industry except pharmacy and grocery have increased their projections for the remainder of the year. Restaurants in particular have seen a large upward swing. This is likely due to pent up demand for eating out and consumers in this industry have been fairly receptive to menu changes and price increases. The downturn for pharmacy and grocery is likely due to supply chain disruption and lessened demand for these services. When the pandemic struck, grocery stores and pharmacies were a lifeline of essential goods and services, and that need is not as strong as it once was. Even though the magnitude of the forecast is down in these two industries, they have shown incredible growth over the last two years, and they are still on a positive growth trajectory.

There is concern over the current inflation rate, yet there are multiple reasons to be optimistic about the remainder of the year. Consumers still want to spend their money in an effort to make up for what was lost during the last few years and businesses need to ensure that they are there to meet that demand. Forging ahead and cultivating new business will keep consumer interest and all of that spending can help turn the economic outlook around. 2022 has a long way to go and there is plenty of opportunity to be found in its final six months.