Did the Polar Vortex put a big freeze on your businesses’ revenue? The big chill is leaving quite the impact on the southern and eastern areas of the United States. The subzero temperatures is putting a halt to Americans everyday routines. With record low temperatures, heavy snow fall and wind, people don’t and in some cases can’t, leave their homes. Many seem to believe the weather problem will be short lived, however this does not include the monetary effects.
Effecting 200 million Americans, the predicted cost of damage estimates around $5 billion impact on the US economy. This number is including the cancelation of flights, workforce loss, repair of rusted pipes, insurance claims, road repairs, the list continues.
Businesses have seen a drastic drop in sales since the start of the polar vortex due to the lack of consumer spending. Reported in the first week of January, New York has seen a 5.4% decrease in sales in the week ending January 4th. *(Source: (ICSC) and Goldman Sachs Weekly Chain Store Sales Index).
The low temperatures have permanently damaged vehicles, power lines, and shut down businesses. Naming just a few industries impacted; retail shops, restaurants, construction, landscapers, schools, car sales, technical and delivery services all have to play some catch up. In addition, the current farming and agriculture industries have been effected which may continue over the course of the next year.
Even though we are nearing the end of the Polar Vortex the impacts on businesses are not finished. Home gas prices the next few months will be higher, and the utility bills will cause consumers to continue to spend less through February.
On a brighter note, some businesses have reaped the benefits of those staying inside. Energy companies are profiting the most. Cable companies have more customers renting movies, online retailers have experienced a spike in sales and food delivery companies have noticed a big increase in orders.
How Your Business Can Bounce Back
If your business was impacted by this, ILS has advice on how you can recover sales for the first half of January and further.
-Disaster Planning (Make a plan in case of natural disaster). What is it that you see most important in recovering sales in any situation?
- Increase inventory in stock, increase work staff to catch up on unfinished work, replace broken equipment etc.
- Alternative methods to do business and make sales.
- Determine your businesses sales shortage?
- How much does your business need to play catch up?
-Get funding. ILS can resolve your capital needs.
- Working Capital Program – $5K to $250K available for any business related expense.
- Equipment Financing – $5K to $5 million available for new or used equipment.
-Take Action. Now that you have the tools to get back on your feet, reach out to your community and customers. Be creative and offer alternative methods.
ILS is your lending hand in time of need. Don’t let this bump in the road effect your businesses goals and month end sales!
Contact ILS to learn more. By Angela Caraglio