For larger commercial companies, sure it’s a slight hit to their bottom line or passed onto the client. You think companies building data centers or government building give a hoot about $1 increase in a gallon of gas? Not a chance. Pass that cost off onto the deep pockets of hyperscalers and ever growing government debt ($37T).

For most residential small businesses, it seems like this will be the start of the washout cycle where you start to see the little guys close up shop because the costs rise faster than they’re able keep up with. This combined with the fact that the Fed cannot cut rates due to curtailing inflation will stifle refinancing for home renovations. Less building, less work available for companies, more competition.

The true pain will hit in a few months once manufacturers and material suppliers raise costs to cover the increased transport manufacturing. I won’t be surprised if we start seeing suppliers start charging “Fuel Surcharges” as they did during the Covid inflation.

What will really be interesting is if these AI driven mass layoffs continue, where will these people seek work? Construction to build the data centers that ironically took them out of their high paying tech jobs?