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THE DISTRIBUTOR’S LINK
ROMAN BASI THE IMPACT OF INFLATION from page 80
With the impact of rising inflation on businesses,
consumers will begin feeling the effect as well. This can
lead to pressure from employees to increase wages and
salaries. Businesses that do not adjust pay in line with
inflation often risk losing workers. When the employee
turnover rate is high, recruitment and training costs will
be incurred and a drop in productivity will often occur. This
encourages businesses to increase wages and salaries in
order to retain employees. An erosion of spending power
will affect both businesses and consumers alike. B2B
(business-to-business) and B2C (business-to-consumer)
companies could very well experience a drop in demand.
The degree of the drop in demand will depend on the
sector of products or services. Demand for luxury and
non-essential products will tail off quickly and demand for
low-cost alternatives could rise. As inflation grows higher,
so will interest rates. Consequently, servicing existing
debts will become more expensive. It very well may
become a challenge to obtain new financing. Additionally,
inflation devalues money. As a result, you will be repaying
the capital element of loans at face value with money
worth less than when you took out the loan. Along with
this, businesses will likely see a rise in overdue accounts
receivable (AR).
Customers will have less money to pay their bills and
will try to manage their limited available cash. The effects
of this will be high collection costs, a squeeze in cash
flow, and possibly the need for increased borrowing. As a
result, there could be higher bad-debt risks. High inflation
certainly presents challenges to businesses. However,
the effects of rising prices can be managed. If costs are
controlled, cutbacks are made when needed, and sales
price increases are made in a timely manner, margins can
be maintained.
ROMAN BASI
METROPOLITAN FASTENER DISTRIBUTORS ASSOCIATION
233 Rock Road #205, Glen Rock, NJ 07452 TEL 201-254-7784 FAX 201-612-0638 EMAIL mfdaboard@gmail.com WEB www.mfda.us
MFDA’S 25th ANNUAL TOYS FOR TOTS DRIVE by Rob Rundle
The Metropolitan Fastener Distributors Association
(MFDA) announced that their 25th annual Toys For Tots
campaign will culminate this year with a dinner and toy
collection night on Tuesday December 5th, 2023 in the
Sky Room of the Hilton Hasbrouck Heights/Meadowlands
(650 Terrace Avenue, Hasbrouck Heights, New Jersey,
07604) at 6pm. Members and non-members alike are
welcome to attend.
For 25 years the MFDA have been assisting the
Marines of Golf Company out of Picatinny Arsenal in Dover
NJ with their mission of supplying toys for needy children
in the New Jersey area. Last year the Marine Corps
helped to distribute over a hundred thousand toys in this
area alone. Along with the generous toy donations of
MFDA members and friends, the MFDA has also donated
ASSOCIATION ARTICLE
thousands of dollars each year to the drive. This money is
critical to the Marines as it is used to purchase toys and
items for pre-teens and teenagers who typically don’t have
toys donated for them. The MFDA would like to make this
25th drive our best yet and could use everyone’s help!
Please visit www.mfda.us for more information, to
register to attend the dinner, and to find out how to donate
toys, money, or both!
METROPOLITAN FASTENER DISTRIBUTORS ASSOCIATION