A month ago, gas in Michigan was just under $4 a gallon, and small business owners were already making changes to brace for what was coming.

In the month since, the average price has climbed to nearly five dollars, with some Michigan stations already past it. The squeeze that was just beginning a month ago has settled in. The U.S. and Israel’s war with Iran is in its third month, the Strait of Hormuz remains closed, and Midwest refineries are down.

For the small businesses that anchor metro Detroit, this is one more strain on top of an already heavy stack. Corner stores and landscapers are absorbing higher fuel costs to stay competitive. Restaurants are closing, and analysts say rising gas prices and declining consumer confidence are likely to accelerate the trend.

All of this comes after months of tariffs, rising healthcare premiums, and an unsettled workforce.

Mark Lee runs The Lee Group, where he consults with small businesses across Southeast Michigan. He spoke with Robyn Vincent on The Metro about what another month of pain at the pump is doing to the businesses he advises. Lee is also hosting his 12th annual Small Business Workshop on May 13 at the Corner Ballpark in Detroit — a free, half-day event for local entrepreneurs and business owners navigating exactly this kind of pressure.

Hear the full conversation using the media player above.

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The economy has undergone many drastic changes over the years. If you’re a millennial, change and chaos have been commonplace.

The Great Recession hit in the late aughts, reducing wealth. About ten years later, the pandemic occurred, causing many to stay at home and others to risk their health at work. Inflation deepened during President Joe Biden’s time in office. President Trump enacted tariffs. And now, the U.S. and Israel are at war with Iran. 

It’s hard to gauge all the consequences of this latest shock, but it’s a continuation of one thing: uncertainty. 

Rising gas prices and supply chain disruptions are now among the challenges small businesses must navigate. It might be why over half of small businesses owners in Michigan say they’re making operational changes to prepare for a recession, according to a recent survey. 

Which small businesses are hit hardest by the war in Iran and its disruptions? And, what could make them more resilient in the face of chaos?

Mark Lee is the president and CEO of The Lee Group, where he consults with small businesses across Southeast Michigan. He spoke with The Metro‘s Robyn Vincent.

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on demand.

Subscribe to The Metro on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

More stories from The Metro