I’m continuing to beat on this drum - How many snow contractors along the east coast are going to survive this past winter ??  I think it is an interesting, and valid question.  I’m very concerned about “collections” on the part of the contractors – from customers who will have a hard time paying, from subcontractors trying to collect from squeezed 1^st providers whose cash flow will undoubtedly be suffering from severe (and sometimes, terminal) negative cash flow.  The trickle down affect may also be severe as property managers and property owners try (and to some extent – succeed) in getting snow contractors to shoulder the burden of poor planning (on the part of the property managers).

For those who survive and collect outstanding monies – they may find their business will grow substantially next winter, as those forced out of business will leave huge service voids in the marketplace.

Gosh – I sure hope I’m wrong.  I’d love nothing better than to find I am so very far off base, and money is flowing readily into the contractors coffers – allowing for equipment upgrades, and new acquisitions. 

Unfortunately – I’m already hearing rumors and (unfounded and unconfirmed) stories of larger contractors having cash flow issues.

Pay attention to the customers and how they are paying you…..it could be the difference between going on vacation this summer, and worrying how you’re going to make it to next winter.

This entry was posted on Wednesday, March 3rd, 2010 at 5:03 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.