What’s Driving Rising Business Costs?
Liberty Street Economics • • business
Key Points:
- In 2025, businesses in the New York-Northern New Jersey region experienced a significant uptick in cost increases, with manufacturers facing an 8.5% rise and service firms a 7% rise, surpassing prior expectations.
- The most substantial cost increases were reported in employee health insurance (14.2% for manufacturers, 12.9% for service firms) and utilities (8.5% for both sectors), with some firms facing hikes as high as 50% in health insurance and 20% in utilities.
- Business insurance costs rose by about 7-7.5%, and goods and materials costs increased notably, especially for manufacturers (8%) compared to service firms (5.5%), partly
