Another snow season is on the way. And this year, the forecast includes more than just flurries. Inflation is high. Interest rates are holding. Labor isn’t getting any cheaper. Across North America, contractors are bracing for unpredictable weather and an even more unpredictable economy.
Even in an unpredictable economy, you can plan ahead. There are seemingly countless variables to plan around, but studying macroeconomic trends and factors can help point you in the right direction.
Macroeconomics covers the big-picture forces—like inflation, interest rates, fuel supply, and government policy—that shape how money moves through the economy. You can’t control them, but they definitely control a lot of what your season costs and how your clients spend. Understanding current macroeconomic factors and adapting to them can help you keep turning those drifts of white into stacks of green.
Inflation isn’t what it was at its peak, but costs are still high. Materials, fuel and equipment haven’t come down much. Whether you’re working in Alberta or New England, the squeeze on profit margins feels the same.
Tip: Lock in supply pricing where you can and build wiggle room into your contracts to account for changes.
Good people are tough to recruit and even tougher to keep. Contractors everywhere are raising wages, offering bonuses and reworking schedules just to stay staffed. Labor laws and minimum wage changes aren’t helping.
Tip: Start hiring early. Keep last year’s best workers close. Offer incentives tied to reliability, and train for flexibility.
New gear is still pricey and often backordered. Used equipment costs just as much as it did when the market was red-hot. High interest rates make financing harder to justify. And tariffs between the U.S. and Canada are quietly pushing up costs for steel, parts and machinery.
Tip: Stretch the life of what you have. Tune up early. If you need new iron, explore rentals or seasonal financing options.
Liability coverage keeps getting more expensive. Insurers are tightening up and some won’t write snow policies at all in high-risk areas. A couple of small claims can spike your premium.
Tip: Clean up your documentation. Use time-stamped photos and solid service logs. Review your contracts with a focus on risk and liability.
Office parks and retail centers haven’t fully bounced back. With fewer tenants, some sites are cutting service levels or canceling contracts. Essential sectors like healthcare and logistics are more stable.
Tip: Diversify. Focus sales efforts on sectors less tied to economic cycles. Offer bundled or full-season packages to keep clients locked in.
Whether it’s elections, new laws or shifting regulations, uncertainty delays spending and planning. Businesses stall hiring or delay capital spending. That trickles down to snow pros. Even broader policy moves, like oil production caps or trade spats, can hit fuel and parts prices hard.
Tip: Stay informed. Build flexibility into your staffing and service plans so you can adapt if something shifts fast.
Fuel costs are jumping around. One week they drop, the next they spike. Global politics, refinery shutdowns, and supply issues have led to tighter diesel supplies across North America. In Canada, carbon pricing is making diesel even more expensive. In the U.S., strategic reserve drawdowns and overseas unrest are adding more unpredictability. A winter supply crunch isn’t off the table.
Tip: Use route planning tools to cut down on idle time. Lock in pricing if possible. Consider adding a fuel adjustment clause to contracts.
Clients are cost-conscious, but so are you. Holding last year’s pricing when costs have climbed is a recipe for lost margin. The operators who thrive will be the ones who price with purpose.
Tip: Rework your pricing model. Know what every job really costs. Explain increases clearly and tie them to real costs, not fluff.
You don’t need new machines to get lean. Routing software, GPS, and better communication tools can save serious money when used right. Even small operational wins can stack up fast.
Tip: Look at your workflow. Where do things slow down? Fix that first. Give your team tools that are simple and make a difference in real time.
There’s no magic solution for a tough economy. But there are smart moves that keep your operation running strong. Watch your numbers, stay flexible, and don’t let outside forces catch you flat-footed. Snow is coming. Trucks will roll. Crews will push through cold nights and whiteouts. Make sure your operation is sharp, steady, and built to handle whatever this season throws your way.
Benjamin Meck, CPA, CFP, ASM is an advising partner of Greendrift Advisors and the Deputy Managing Director of Accounting Services for Baldwin Management, LLC. Contact him at bmeck@greendriftadv.com.