Small businesses declare revenue drop due to warmer US winter
Small businesses say the warmer winter in the United States resulted to lesser profit. According to the National Oceanic and Atmospheric Administration, the US agency that collects statistics about the weather, the period from December through February was the sixth-warmest winter.
In January, the average temperature in the lower 48 states was 33.6 degrees Fahrenheit. The weather resulted to lower sales of winter clothing and snow shovels. Plumbers and people who make money by removing snow had less work.
Chicago was virtually snowless in February, meaning dog owners didn't need warm coats for their pets. Hope Saidel, co-owner of the retailer Golly Gear in the Chicago suburb of Skokie, said they thought that the weather won’t be good. "When we heard the 10-day forecast was going to be up in the 60s (Fahrenheit), we thought, this is not going to be good. It was devastating,” she told USA Today.
The warmer US winter has prompted Saidel to modify her strategy by focusing on warm-weather items, such as leashes, harnesses and bicycle baskets. The new business plan has helped savage the season.
Ted Puzio's plumbing and electrical company in Roanoke, Virginia was also affected by the warmer winter. There were not much frozen and burst pipes, meaning less work and revenue for the company.
"We're not getting the bump-up we typically do," Puzio declared. He noticed that there aren’t as many service calls as usual for heating system repairs.
Companies that offer heating systems are hurt too. Atlantic Westchester, a Bedford Hills, New York-based company, makes more money during cold weather. But due to the warmer US winter, President Bud Hammer estimates revenue has dropped 15 percent.
Tara Saxton's businesses in the Fremont, N.H., area were also hurt due to the temperature. Saxon's contracting company, KTM Exteriors & Recycling, does not have much work like clearing snow off roofs, causing the revenue to drop at US$200,000 (AU$262,000) this winter.
But for Sunnyland Furniture in Dallas, the warmer winter benefits the business. The patio furniture retailer has higher revenue as the temperature entices people to purchase fire pits and seating so they can stay outside. Vice President Brad Schweig said they have seen ramp earlier than usual.
Jason Askins' pool remodelling and repair franchise was also benefited with an 80 percent increase in revenue. The company has seen more profits in January and February because of the warmer weather in Edmond, Okla. "People are starting to think about getting the pool ready," Askins said.