For some, revenues rise as snow falls

CNY Business Journal (1996+), Dec 29, 2000 by Allen, Paul

SYRACUSE - With winter barely more than a week old, syracuse has already piled up more than half its average seasonal accumulation in snowfall. and Central New York is not the only place visited by snow. But the source of so many commuters' headaches - and residents' backaches - is also an integral source of seasonal revenue for many Central New York businesses.

For BenBow Chemical Packaging of Syracuse, a 30-yearold industrial packaging company that packs more than 25,000 tons of calcium chloride annually, business is booming, says Sales Director Matthew Greacen. Calcium chloride is the best product on the market for melting ice and keeping sidewalks safe, Greacen says, and demand for the chemical has surpassed the supply.

"Things are getting extremely tight," says Greacen. "We might hit a crisis situation with what is happening in the Midwest - all the ice storms and the places getting snow that haven't got it in the past. Calcium-chloride production is down by a third this year, so supply is extremely low. We're expecting to get paid back for all the mild winters we've had the last few years." BenBow Chemical could package as much as 40,000 tons of calcium chloride, Greacen adds, depending on the availability.

Thomas Panek, operations manager at West End Snow Removal in Syracuse, says that in the snow-removal business, "you either make money or you starve." Panek speaks from experience. West End Snow Removal is a family-owned company that has been operating in Syracuse since 1974, and in those 26 years, the average snowfall has been anything but consistent. But in recent years, Panek says, business has been very good. Five of the last 10 years have made Syracuse's Top Ten snowfall seasons, according to the National Weather Service at Hancock Airport.

For a wide range of local businesses, entrepreneurial success is directly linked to the amount of snowfall in, the area, Panek says. "This time last year, we barely had 30 inches on the ground. This year, we're already at 65 inches, and we've been so busy we've had to turn people away. There's just not enough time in the day to do every job."

Although the bulk of West End's business is seasonal contracts, Panek says, he has been bombarded with phone calls from residents and businesses wanting oneday service. "Last week, we must've had more than 200 calls from people wanting us to clear out their driveways or parking lots," Panek says. "And that's great because that's where we make our money - the cash-and-carry jobs."

Panek says that he and other fellow "snow jockeys" affectionately dub the frozen flakes "pennies from heaven."

Another company thankful for the precipitation is Woods Valley Ski Area, a skiing and snowboarding center in Westernville. Program Coordinator Karen Olney says because of the increased snowfall this year, Woods Valley opened almost a month earlier than last year. "We opened this year right after Thanksgiving, and in 1999, we had to wait until a few days before Christmas," Olney says. The early opening means more skiers and more revenue, says Olney, who is "extremely excited" about the upcoming months. "Even if we don't see any more snow, we're set until the end of the season," she says. "It looks like it's going to be a great year for us." And even if the temperatures do happen to rise above freezing in the very near future, she adds, there's always the snow-making machine.

The automobile supplies usually purchased en masse during the winter months are selling "better than expected," says Jeff Powers, manager of Advance Auto Parts in Syracuse. Sales of items such as ice scrapers, wiper blades, snow brushes, and anti-freeze are "brisk," he says, and adds that he has re-orders in on all products, including car batteries and headlights. "There's sreally no surprise in any of the items we're selling, we're just selling a lot more of them," Powers says.

Usually at this point in the season, most vehicle owners have already purchased their snow tires, says Matthew Braun, inside sales manager at Dunn Tires in East Syracuse, but this year, sales have remained consistently strong through December.

"Every year, sales drop off after Thanksgiving," says Braun, "and that's because everyone who is going to buy snow tires usually already has purchased them by that point." Braun attributes the continued high demand for tires to the heavy snowfall thus far this season. "This year, I think people who haven't already bought suitable tires are realizing that if the snow keeps coming down, they could be in deep trouble. It's definitely better to be safe than sorry when it comes to driving in winter weather."

And when the driving gets bad, sales of video rentals go up, says Kenneth Jones, owner of Lakeside Video in Skaneateles. "If the weather gets really bad on Thursday and Friday, we definitely see an increase in weekend sales," says Jones.

While some businesses prosper because of the increased snowfall, there are many more that suffer. Michael Hallinan, owner of Hallinan's Liquor Store in Fairmont, says when the snow starts coming down; the customers tend to dry up. "When there is a heavy snowfall, we lose business," says Hallinan. "People stay home and consume what they have. But after the storm, we recover - all those people who stayed home come in to restock."