CEO Aaron Jagdfeld. But he said the company is facing its own set of issues, like supply chain snarls and soft demand from wealthier consumers who are delaying purchases of backup power systems.
It\’s a different story for Generac\’s more price-sensitive clients, who tend to purchase smaller, portable generators. Jagdfeld said these customers have been struggling with higher borrowing costs and have been holding off on purchases as a result.
The dichotomy between higher-end and lower-end consumers is a common theme across industries as economic headwinds impact spending patterns. As inflation and interest rates continue to rise, consumers are being forced to make tough decisions about where to allocate their limited resources.
For retailers and manufacturers, navigating this challenging environment requires a deep understanding of consumer behavior and the ability to adapt to changing market conditions. As the Fed considers its next moves in response to inflation and economic indicators, businesses will need to remain agile and responsive to shifting consumer preferences.
In the meantime, Americans may find themselves delaying big-ticket purchases and focusing on essentials as they navigate a challenging economic landscape. The impact of these decisions will ripple through the economy, shaping the way businesses operate and consumers spend in the months and years to come.