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Every year at the Alaska Federation of Natives Convention, artisans pack the main hall of the Dena’ina Center selling everything from hats made of finely woven muskox fiber to beaded jewelry and paintings.
But at the annual convention in Anchorage last week, artisans said rising costs for materials, processing, shipping, fuel and tariffs are forcing difficult decisions. Some have raised prices, while others are absorbing the increases or cutting production to keep their goods affordable.
Margaret Hobbs, who sells knitted goods made from muskox fiber, said the time and labor required to prepare the material add to the expense. Her brother hunts muskox for her products on Nunavik Island, where the family is from.
“Time is a lot of what it takes to make our qiviut stuff,” Hobbs said, describing the process of cleaning, drying and combing the fiber before shipping it.
Those steps, along with freight costs, have pushed her prices higher. A hat that sold for about $250 last year now costs $300, she said.
Hobbs relies on sales of her handmade goods for income, making it important to cover her costs. But raising prices can put her products out of reach for some customers.
“I notice it's getting a little bit harder for some people to purchase things,” she said.
For vendors, the convention offers an opportunity to sell their work and showcase their crafts.
But the cost of participating can cut into earnings before they make a single sale.
Ruth Stewart, who grew up in the Yukon River region and now lives in the Matanuska-Susitna Valley, said prices for supplies such as beads and fur have increased. She has kept the prices of some of her products unchanged, including necklaces and amulet bags, which have sold for $50 for about a decade.
“The 10 years, 12 years I've been doing it, I've had them at $50,” Stewart said.
Traveling to Anchorage adds another expense. Stewart said filling her vehicle's 15-gallon tank cost more than $100.
For other businesses, rising costs have affected how much they can produce.
Tariffs are still a factor
Alice Bioff is the owner of Naataq Gear, which makes outerwear inspired by traditional Yup’ik clothing. She said the company cut production in half this year.
The business sources fabric from Canada, and Bioff said tariffs have made manufacturing more expensive. The company has scaled back production of some items while trying to keep prices steady rather than pass the additional costs on to customers.
“We've been trying to be very careful about all the situation with the tariffs,” Bioff said, adding that the company wants to avoid a sharp increase in costs.
Greg Wolf, director of the Alaska International Business Center, said the ongoing tariff dispute between the U.S. and Canada has created challenges for businesses since the Trump administration introduced its tariff policy last year.
Whether a company is large or small, added costs can force difficult choices, Wolf said. Businesses must decide whether to raise prices and risk losing customers or absorb the increases themselves.
“This is a challenge for a lot of small businesses that don't have the deep pockets ... to do this forever,” he said.
Not every artist is facing the same pressures. Colleen Smagge, a watercolor artist who works with a local photographer and printer on the Kenai Peninsula, said her prices have risen slightly as production costs have increased. But she tries to absorb some expenses when she can still cover her costs and make a profit.
“That's how you know I'm affected by increases,” Smagge said, adding that the only time she ever increased her costs is if her local supplier has to raise prices.
Working with local businesses gives Smagge some flexibility in managing production expenses, while helping her keep her artwork affordable for collectors who want to support local artists.
Fuel prices also add to the expense of bringing goods to market.
U.S. Sen. Lisa Murkowski visited vendors at the convention and said she has seen prices rise over the years as artists account for the cost of producing their work and traveling to Anchorage.
“I've seen that prices are going up over the years, but…it's trying to factor in some of the costs that are associated with just getting here to AFN,” Murkowski said.
Murkowski said she hopes diesel prices will not reach double digits by next year's convention.
She also pointed to fuel costs as a burden for Alaska families and said addressing them requires cooperation among federal, state and tribal partners.
For artists and small businesses, the challenge is finding a balance between covering rising expenses and keeping their work accessible to customers.
That may mean a more expensive hat, fewer jackets available for sale or a decision to hold prices steady and absorb the difference.
For vendors at the convention, each choice is part of the effort to keep their businesses going as costs continue to climb.
