Briefing: Winter's impact on business
A day snowed in can be a welcome reprieve from the daily grind. But when one snow day turns into three or four, employees and their bosses start to wonder how they'll ever catch up, and how being snowed in hurts the bottom line.
This has certainly been the case during the winter of 2015. Massachusetts had one total shutdown day in January when Gov. Charlie Baker issued a travel ban, preventing even the most dedicated employees from going to work. Subsequent storms have kept many employees off the roads and hindered operations in other ways.
What does a snow day cost?
Christopher Geehern, executive vice president for communications and marketing at Associated Industries of Massachusetts (AIM), said it's difficult to quantify what this year's weather has cost the Bay State economy, since there's been just one total shutdown day and a handful of others in which businesses were impacted to varying degrees. But he cited a study by IHS Global Insight that estimated that one work shutdown day due to snow results in about $265 million in lost economic activity.
How hard has Central Massachusetts been hit?
AIM and other business groups, such as local chambers of commerce, rely mostly on anecdotes to gauge how well, or poorly, the region fared during the difficult stretch. But it's clear that all businesses have been negatively impacted. A recent informal survey sent to 33 of AIM's member businesses last week found that all incurred some losses in productivity this winter.
“I think the most telling comment came from one company that said they'd had their first snow day cancellation in more than 40 years,” Geehern said.
The largest challenge for AIM members has been transportation. People have either had trouble driving or parking, or catching a train, given the MBTA's significant service disruptions. Many manufacturers reported trouble shipping or receiving goods, and companies told AIM their employees are distracted as they worry about ice dams and how to handle kids who are home from school. The service industry has been particularly hard hit, as restaurants, theaters and retail stores rely heavily on foot traffic for sales.
Is there any relief for business?
Gov. Charlie Baker is lobbying for relief for cities and towns, state agencies and nonprofits to help recoup losses, and business leaders hope federal money will be available to them, too. One potential source of relief is the U.S. Small Business Administration, which provides low-interest disaster relief loans to businesses that have been impacted by weather-related disaster.
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