This year's record snow in the Northeast has put pressure on industries across the economy, according to a new report by the Associated Press (AP). With reduced transit capabilities, obstructed commutes and other logistical challenges, the winter of 2014-15 has posed challenges for operations. Manufacturing companies have been hit by the unprecedented snow, with figures from the first quarter of this year reflecting some thin-stretched resources.
"Not only were we losing sales on the front end of the storms, now we're paying a lot more on the back end to get product out," Michael Tamasi, CEO of AccuRounds, a Massachusetts maker of shafts, valves and other parts for medical, defense, aerospace and IT companies, told the AP. "We've been adding hours, stretching out the work day, working on Saturdays, whatever we need to do."
For large corporations looking to expand their manufacturing reach, infrastructural updates are critical to surveying new properties. On this blog, we discussed Volvo's search for a new plant base in the Southeast. Many of those communities are relying on civic development projects including road maintenance to help seal the deal.
Cold weather is nothing new, but some companies still feel the pinch when serious snow sets in. As Americans finish the last leg of winter, making preparations for future storms can begin with a review of practices and issues from this winter. In Massachusetts alone, the AP reports that this winter cost nearly $1 billion in wages and profits, which makes a considerable dent in productivity and revenues. Enacting a strong preparation plan can help reduce the inevitable operating hangover that results from months of diminished volume.
With spring just around the corner, many companies should be eager to look ahead.