Retail, Transportation, Construction, Wholesale, Accommodation/Food Services and Arts/Entertainment/Recreation Feel Biggest Impact of the Cold Weather in January and February
Small businesses in retail, transportation, construction, wholesale, accommodation & food services and arts, entertainment & recreation have been hit particularly hard during the unexpectedly cold winter during the first six weeks of 2014, according to a new report by Biz2Credit. For the analysis, Biz2Credit examined bank data of 20,000 businesses in states that have been hit by unusually cold and snowy weather from Maine to Georgia and throughout the Midwest.
The online credit marketplace quantified data obtained from banks and broke it down by North American Industry Classification System (NAICS) code for Industries based along the East Coast and in the Midwest, and then compared to their revenue numbers for same period in 2013:
- Retail: -13%
- Transportation & Warehousing: -11%
- Construction: -9%
- Wholesale Trade: -8%
- Accommodation & Food Services: -7.5%
- Arts, Entertainment & Recreation: -7%
- Manufacturing: -5.5%
"January and February are historically slow months for retailers as shoppers pay off their debts from the holidays," explained Biz2Credit CEO Rohit Arora, one of the nation's leading experts in small business finance. "Retailers have seen their revenues drop by 13%, and much of that can be attributed to the frigid temperatures and frequently icy and snowy weather in January and February 2014."
"Transportation experienced an 11% decline, mostly due to weather-related challenges, while construction, down 9%, also took a hit," continued Arora, who oversaw the research. "Businesses in the hospitality, food, and entertainment industries also suffered. When the weather is so bad, people opt to stay home rather than travel in freezing conditions."
About the Biz2Credit Winter Weather Report 2014
Biz2Credit analyzed bank data from 20,000 businesses in the following states: AR, CT, DE, GA, IA, IL, IN, KS, KY, MA, MD, ME, MI, MN, MO, NC, ND, NE, NH, NJ, NY, OH, PA, RI, SC, SD, TN, VA, VT, WI, and Washington, DC.