Lost Productivity: According to the Financial Forecast Center, America’s GDP in January will be approximately $646.27 billion per day. The states hit hardest by deep freezes contain approximately 38% of the U.S. population. Assuming that 10% of those workers aren’t able to work for a day, this would result in $24.4 billion worth of lost productivity.
Hard Costs Per Average Winter Disaster (NOAA)
- Winter Storms: $3.9 billion per event
- Freezes: $3.6 billion per event
From a State-by-State Standpoint:
The average cost per snowstorm vary. For example, a one-day storm in Massachusetts costs the state economy about $334 million, while the total cost in New York is around $882 million, according to the Boston Globe.
Business Sectors Hit Hardest By Winter Events
- Travel Sector: The travel industry is amongst the worst hit. Airlines have to absorb all the costs of stranded planes, pay for airports to park the planes and pay the hotel costs for stranded passengers.
- Hotels: This industry will be hit with massive cancelations, increased utility bills and potential property-related damages
- QSR/Dining Sector: Businesses will face significant decreases in sales (10%-40%+) or even a total loss of sales (location closure) plus the expense of snow clearing
- Convenience Store/Gas Station Sectors: Consumption plummets with decreased road traffic and reduced impulse purchases as no one wants to brave the 20-foot ‘journey’ to the store
The Average American Worker Only Has $400 Saved For Emergencies.
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