This week’s storm-related closings of businesses, schools and government offices — even in areas where snow never fell — hit some folks in the wallet but will be shrugged off by most of metro Atlanta’s economy, experts say.
Corporate America has grown pretty efficient, in part through using web-based technologies that enable workers to get as much done from their living rooms as their offices. (Well, that is if kids at home on a snow day don’t drive you bonkers.) And many dollars that would have been spent by shoppers will still be spent, just later.
“The severe storms don’t have the negative impact they once did, given technology,” said Jeff Humphreys, a University of Georgia economist. If there’s work that needs to be made up, some people may benefit from overtime, Humphreys said, “but some of that work will never be made up.”
Those taking a hit include hourly workers who aren’t paid unless they work — waitresses, salesmen and many contract employees. The missed wages or tips will hurt.
“When there’s snow and schools are closed it has a drastic effect on sales,” said Niko Karatassos, president of Buckhead Life Restaurant Group, which operates popular high-end hotspots like Bistro Niko, Buckhead Diner and Chops Lobster Bar.
On Wednesday, Buckhead Life closed Veni Vidi Vici in Midtown and Pricci and Kyma in Buckhead in anticipation of what forecasters warned could be a major storm. Other locations, such as Atlanta Fish Market, Bistro Niko and Chops stayed open, he said, and did relatively well, as the worst weather stayed to the north.
Karatassos said overall his company saw about 20 percent of the business it sees on a normal Wednesday night in Atlanta.
“We just have a can-do attitude and we always try to do what we can to stay open for the guests,” he said.
No doubt weather can wreak havoc on businesses. There can be heavy costs associated with the logistics of moving resources to get around a storm.
U.S. gross domestic product contracted in the first quarter of last year, a result many economists blamed in part on a brutal winter on the East Coast and the Southeast. Though it’s true that economic forecasts bake in the potential impact of weather in their seasonal adjustments, uncharacteristically bad weather can still throw a wrench in the works.
Government and private workers who put in overtime treating slushy streets or fixing power outages caused by the icy blast last week probably will come out as net winners, Humphreys said.
The winter storm also disrupted thousands of airline flights nationally, which in addition to giving airlines headaches probably delayed or redirected some travel spending as stranded passengers spent money in other hotels and restaurants than they’d originally planned.
Severe weather can slow construction and other work done outdoors, which can lead to seasonal dips in production, said Dorsey Farr, managing partner and economist at kdhb V Capital Management in Atlanta.
But it also can lead to spurts in productivity in later quarters as the private sector races to make up for lost time, he said. The same is true in restaurants, when “cabin fever” can lead to a jolt in dining – though maybe not make up all lost ground.
And some parents who worked through winter weather had to bend over backwards to handle childcare when schools closed.
For some businesses there is no sugar-coating the cost, however.
Dan Erling, president of financial recruiting and staffing firm Accountants One, said his company lost $30,000 in billing hours during last year’s winter misery.
“Last week, we lost a fifth of our billings,” he added, citing metro-wide closures for an ice storm that largely stayed north of Atlanta. “This week, we’ll lose two-fifths of our billings. It’s not something that you can make up.”
