Is a mild winter good for the economy?

This afternoon I was talking with my neighbor outside in the almost 40 degree temperature on the 12th of December with all the snow gone. I was reminded of a conversation I had with a very successful sales rep. for one of my distributors when I covered 3 1/2 states for an Industrial coatings company probably 35 years ago. We were having breakfast together in Bismarck, ND and the weather was beautiful a week before Christmas. Lew commented that a mild winter isn't good for business. All the industries that depend on snow removal, car accidents, cold weather breakdowns, etc. don't great their share of the pie because it just doesn't happen.
Just think about this small micro example with chainsaws. Since we are not burning as much less wood to cut, less sharpening of chains, less saw tuneups, etc. I know I haven't dented my stack yet and it the middle of December. I have usually been burning for a good month and a half already.
I just tossing it out. Welcome comments agree or disagree.

 

The effect is unknown and unknowable. Money not spent on snow removal, propane, etc. will be spent or invested elsewhere. Reduction in car accidents and other destructive activity is (nearly) always a plus for the economy.

Greg

 

Consumers always find a way to spend money...they'll just spend it on other things this winter.

Other businesses will be more profitable because they are spending less on utilities and snow removal.

 

Just announced that the Salvation Army Christmas Kettle campaign in Ottawa, which is the national capital up here, is $245,000 short and they are blaming it on the fact that because of the warm weather, Christmas shoppers are in less of a festive mood to give.

Was talking to my neighbor today. He is a mechanic in one of the bigger sled dealers up in this area. They are SLOW, very SLOW. Local motels and restaurants that cater to sledders are whining BIG Time as well.

 

I work in the peaker power industry so weather extremes hot/cold are the busy time of year for me.
Less OT for me which I don't mind, but the dollars not going to me or other folks in business for the cold are staying and being spent from the pockets of those that made them.

Most folks are probably still catching up from two harsh winters and will welcome the reprieve by spending their dollars on Christmas - that' s what consumers do

 

Ski hills and sure are taking a hit up here snowmobiling so far. And of course, all the related that goes along with them...lodging, dinning, fuel, and of course bars....

 

For people that depend on cold weather and snow to get business are taking a huge loss right now. I just got home with the wife and kids, every restaurant we went by was jammed packed. Alot of people outdoors in this warm weather spending money, if it were cold, less people out but more business for the malls when it's cold out. Everyday can't be sunny...always tough to own a business when you depend in certain weather

 

Speaking of energy,
I work for a company that does work for Halliburton, NATO and other oil companies, or frac pumps have come to a screeching halt, low low prices make it even slower, luckily we have other customers that are getting us through, but much lower profit margins some arent even a tenth of the margins Halliburton forks over. Right now I'm not spending a dime more than I have to.

 

I had to go out for a few things today. Saw a motor cycle with a green Grinch on it! Saw a guy wearing shorts out walking his dog. Also saw one woman in short sleeves and another man in shorts, not jackets. Very odd indeed. But the stores were full of shoppers! One had a long line to ck out so I left there. People are out and about, and spending money. Just maybe not on what they usually have to.

 

I don't know about the economy being hurt by a later than usual winter, but I'm sure not complaining. To me personally, winter is an economic drain, and the fact that gas isn't above the dollar a litre is just fine with me also. Less money being spent on just trying to keep from freezing is a nice plus.

 

Like savemoney , we saw a few guys on bikes yesterday. One thing that I think might be effecting the economy even more than the mild weather right now is the low price of fuel. Gas or oil... It's like a Christmas bonus for everyone, no matter what you do for a living or how you live. I can't wait for that beautiful snow but so many folks here in Maine struggle to stay warm during the cold months or have to drive many miles to work... it's really nice to see them catch a break so far this year.

 

no special town meetings to add to the snow removal budgets? one thing for sure is they'll have no special town meetings to return their unspent funds to the tax payers???

 

I feel for you.
The global economy still rules the roost over any weather related economic impact a mild winter has on the energy industry.
a few weeks back gas was clearing in the Northeast ~89cents a dekatherm - nobody's making money at those prices

 

Don't worry...........like the weather, I'm sure big energy will contrive some sort of crisis to drive the prices thru the roof again. It all averages out. I am always amazed how the gasoline in the ground @ your local station can inflate from one hour to the next. Always seems to go up just a little more than it will go down as well.

 

just put $6.575k back in the economy with a new boiler. now I can't get an accurate test on the efficiency of the new unit till some cold weather shows up. still burning but with the 60* temps real nice slow drain on the wood. oil, and brick. dealer tells me to expect about a 30% savings on oil. at $1.639 this week gonna take roi a long time. paid ave of $3.569 in 2014. makes our C footprint a little smaller as well.

enjoy the Christmas and Chanukah season with a little (sometimes a lot of extra cash) in our pockets.

 

Rotti its all based on futures.
If you had to refill the tank two days from now for nickel more than last week and station across the street is filling today at the same price neither are going to take a loss.
Same goes for when the price drops a nickel first guy filling up drops the price and others will lose business if they don't match cause they are buying cheaper fuel in a couple days

 

Tell the automotive body shops that a reduction in accidents is a plus for their business. Economics.... an inexact science.

 

Basod, I hear ya........................It all reverts back to the "Money Changers". Making money, one of the BIG THREE causes of turmoil in this world..............the other two being religion and sex.

 

Oh, I agree with that. But their loss will be someone else's gain.

Greg