This past week Lexington, Va. experienced its first real snowfall of the winter season, which got me to wondering what effect has this unseasonably warm winter has had on the economy.
For many private businesses, particularly in the North and ski country out West, the effect has been detrimental. According to an article in Time, skier visits at six mountain resort properties have dipped more than 15% year-on year. The ski industry relies on the cold weather and snow to attract tourists and turn profits. With a largely seasonal income these resorts have had to suffer through small crowds and continue to hope for a late snow surge to recover some profits.
Other industries have also felt the pain of a warm winter. Cold-weather clothing sales are down, as are sales for shovels, snow blowers and salt. In the North these account for a significant part of the winter seasonal income for retail and hardware stores.
One of the most interesting industries to look at in terms of the warm winter is the plowing industry. There is a large contingent of people in the North that earn a living in the winter plowing driveways and commercial parking lots. Without snow, they have been put out of work. Landscapers, who use plowing in the winter to supplement their summer businesses, are now abandoning hope for their winter income and hope an early spring will lead to an increase in their warm weather profits in 2012.
But for some, including most cities across the North, the warm winter has been a blessing. According to an article in The Guardian, Buffalo, NY has saved more than $300,000 on salt and public works overtime is down by 25%. In North Dakota snow removal costs have fallen by nearly half. For many cities strapped for cash in this poor economy, the warm winter has been welcomed with open arms as the money can now be spent elsewhere.
So as the seasons begin to change and spring rolls in, this winter has left many businesses disappointed with profits and city governments ecstatic with budget surpluses. But if I know anything about Mother Nature, it's only a matter of time until she evens the score.
-Tyler J. Tokarczyk
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