We just got our first snow of the season here in the Philadelphia area, which is a good reminder that winter weather has real economic consequences, well beyond slow commutes.
The Cost of Snow
- The U.S. spends up to $4B per year on snow and ice removal
- Snowplows cost roughly $200k each, before labor and fuel
- States use millions of gallons of salt brine and massive amounts of salt every winter
The Bigger Impact
- Winter shutdowns can cost states $70M–$700M per day in lost wages, retail sales, and tax revenue
- Extreme events magnify the damage:
- The 2021 Texas winter freeze caused an estimated $150B–$300B in economic losses
Why It’s Hard to Plan For
- Snow budgets are based on averages, but snowfall rarely follows averages
- Mild winters leave sunk costs; severe winters blow past budgets
- After harsh winters, cities often delay road repairs and other projects to rebalance budgets
A New Constraint: Labor
- 80%+ of snow-removal agencies report shortages of plow drivers
- Fewer drivers mean slower response times during major storms
The Takeaway
Snow is a reminder that economic disruptions don’t always come from markets or policy sometimes they come from weather, infrastructure, and preparation.
Worth keeping in mind as winter gets underway.