Vermont Business Report: Cost Pressures Drive Price Hikes and AI Adoption
A recent survey of 135 companies indicates that healthcare costs and labor shortages are top concerns, prompting widespread price increases and limited technological experimentation.
By Oliver Bennett ·
The Vermont Chamber of Commerce released survey results on Thursday showing that half of the state's businesses raised prices in 2026.
More than 40% of the 135 surveyed companies rated the current business climate as poor or very poor. This negative sentiment rose from levels recorded a year earlier. The advocacy group noted that while the survey lacks the statistical rigor of a scientific poll, it provides a snapshot of business owner priorities.
Healthcare emerged as the primary operational challenge for Vermont businesses in 2026. It surpassed workforce and housing shortages to become the most frequent complaint. Inflation and taxes rounded out the top five issues cited by respondents.
In response to these cost pressures, one-third of businesses delayed hiring or left positions unfilled. Approximately one in four companies postponed capital investments. Only 10% of respondents reported that they expanded or invested in their operations within the state during the current year.
The accommodations and food service sectors reported the lowest morale. Nearly half of the businesses in these industries said their volume declined over the past year. Kevin Chu, executive director of the Chamber's Vermont Futures Project, stated that business owners share concerns with residents regarding affordability. He said, “There's alignment between the business community and citizens.”
Cross-border trade relations with Canada also weighed on sentiment. Fewer than 2% of respondents described federal tariffs and cross-border tensions as having a positive effect on their operations.
Many companies are turning to artificial intelligence to manage labor and cost constraints. More than 75% of surveyed businesses reported using AI, primarily in limited capacities or pilot projects. Only 15% said they have no plans to adopt the technology. Chu described this trend as early-stage experimentation to determine if the tools are a suitable fit for individual companies.
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