N.S. metal company raises prices to offset rising fuel costs

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CHESTER, N.S. - For 16 years, Kirby Reeves has been in the metal shaping and fabrication business.

Nine people work at South Shore Metal Works, in Chester, N.S., producing metal materials at Reeve’s busy workshop.

Reeves said delivery costs for the supplies he needs to operate have been skyrocketing in recent months.

“It is the fuel surcharges that the companies are putting on us,” said Reeves, who added they are accounting for 50 per cent of the money he pays out each month. One job he worked, was even tagged with more than $1000 in surcharges.

“Recently, I had to bring in material from Montreal and then ship it to Toronto for heat treatment, and then ship it back here,” said Reeves.

It is a costly trend impacting a lot of businesses.

According to the Canadian Federation of Independent Businesses (CFIB), almost 70 per cent of small business owners in Canada have seen their energy costs go up in the last year, due to the high price of fuel being passed on to consumers and business owners.

It has become even worse since the start of the war in Iran.

“This is an all-too-common story for business owners,” said CFIB President Dan Kelly. “They are taking it on the chin.”

According to the CFIB, 62 per cent of small business are absorbing the added costs, 32 per cent increased their prices for customers to pay, 12 per cent reduced staff hours and 10 per cent laid off employees.

Kelly has urged the federal government to step in and support business owners.

“The federal government and many provinces are making a great deal more of money right now, because the excise taxes on fuel now, are bringing in more than is typical,” said Kelly. “That money could be redeployed to allow a consumer or small business to have a reduction in the fuel tax at least in the short term.”

For Reeves, having added costs at this time is another obstacle, during what has been a difficult several years for his business.

“We went through Covid, and all the prices of everything went up,” said Reeves, who has already raised some of his prices for materials and work being done. “Because I have to pass that cost on.”

However, he is worried increasing prices could drive away customers and damage the bottom line of his metalworks business, as he continues to absorb the high cost of fuel.