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The rising energy costs socking many residents across the state this year are also a growing concern for New Jersey businesses as they struggle to keep prices stable for consumers.

That is one of the key takeaways from the latest annual poll of state business leaders released by the Trenton-based New Jersey Business & Industry Association.

Nearly 80% of the those who responded to the closely watched annual survey said their businesses have been either moderately or substantially impacted by increased energy costs this year.

Of that group, nearly 40% said they have had to hike prices in response to the increased energy costs, according to the survey results released Monday by the influential statewide business-lobbying organization, which has been polling state business owners and executive staff for nearly seven decades.

State lawmakers have advanced numerous pieces of legislation in recent months in response to the rising energy costs, including monthly electricity bills that were increased, on average, by 20% over the summer.

And Gov.-elect Mikie Sherrill has also promised to freeze utility bills when she takes office next month as part of a broader plan to provide some additional relief from the price increases utility providers charged consumers as they faced rising demand for power.

However, among the nearly 570 businesses that responded to this year’s NJBIA business outlook survey, more than 80% said they lacked confidence that energy costs would moderate in 2026, according to the survey results.

Tariffs are another emerging concern for many New Jersey businesses, including small businesses, which accounted for about 65% of the survey’s respondents, NJBIA officials said.

In all, nearly 50% of the survey respondents said their supply chains have been impacted by tariffs this year in the wake of an aggressive, ongoing foreign trade war initiated by President Donald Trump after his inauguration earlier this year.

Of those impacted, more than 60% were “not confident at all” that they would be able to absorb the increased costs driven by the Trump tariffs without passing those costs along to consumers, according to the survey results.

Moreover, more than 20% said they have reduced or lowered the quality of their inventories in response to the tariffs.

Amid these emerging concerns, many businesses in New Jersey also continue to face more longstanding issues that have been flagged repeatedly by NJBIA officials, including high taxes and fees and difficulties with permitting, according to the survey results.

But this year, fewer survey respondents are expecting to turn a profit next year compared to this time last year.

The number of businesses projecting an increase in sales in 2026 also declined slightly in this year’s survey compared to the results gleaned from respondents last year as they looked ahead to this year, NJBIA officials said.

“These results show a great need for more pro-business policy amid declining profits and expectations,” said Michele Siekerka, NJBIA’s president and chief executive officer.

Meanwhile, the affordability challenges being felt by many New Jersey businesses appear to be affecting more than just the prices consumers are paying when buying goods and services within the state’s borders.

For many New Jersey businesses, these challenges may also be influencing the latest plans for wage hikes and hiring, according to the survey results.

In last year’s survey, nearly 80% of those who responded said they increased employee wages in 2024. This year, less than 70% said they increased wages in 2025.

Moreover, more than 60% of survey respondents this year said they have kept employment levels about the same within their company this year. But another nearly 20% said they had to decrease employment levels either moderately or substantially in 2025.

Looking ahead more broadly, only 16% of the survey respondents indicated they are expecting the New Jersey economy to be better over the first six months of 2026.

However, survey respondents were slightly more sanguine about the national economic outlook, with 40% indicating they expect improved conditions over the first six months of 2026.