Warmer-than-normal temperatures this fall from El Niño have left much of Manitoba with little to no snowfall on the ground.
Current results show Winnipeg and Brandon typically receive nearly 20 centimetres of snowfall in November, but no forecast models are predicting a significant snowstorm. With the lack of snowfall, snow-clearing companies say business has been affected.
“We still have employees on standby, and we pay some of our guys a retainer to be available for us for the month,” said Denny Black, regional manager of Gorilla Property Services.
Gorilla has employees on standby for the 60 per cent of its snow-clearing work secured through guaranteed contracts, while the remaining 40 per cent comes from pay-per-push services.
“That’s where a season like this can impact the snow-clearing industry. If you have clients that call you up or only pay when it snows, it makes for some tight months if there is no snow, that’s for sure.”
For companies that only offer snow-clearing services, Black said this can make for difficult financial seasons.
“So the smart idea is to diversify the number of services you offer, including Christmas lights and graffiti removal.”
Offering different services is one way to manage the uncertainty, but being flexible with contracts is also key for snow-removal companies.
“Most people want a predictable budget, and so what we do is take the workload for the entire season and break it out into even payments over the course of the season. So you have a predictable bill that covers the season,” said Graham Dreger, director and owner of Terrace Property Management in Winnipeg.
Dreger said this approach helps clients avoid feeling like they are paying for a service they haven’t received during months with little to no snowfall.
Black said Gorilla Property Services can also extend contracts later into the year.
“We’ll extend the snow-clearing contract until mid-April. If we get any snowfall in the spring or late spring, we’ll come out and cover it as part of your regular contract, even though it has expired.”
Despite the later start to the winter season, snow-removal services aren’t worried about decreased demand in the coming years.
“Our clientele are really focused on making sure their business operations stay running smoothly and predictably, avoiding downtime and liability risks from slip-and-falls or people getting stuck or being unable to access their properties,” said Dreger.
Black also pointed to the safety concerns associated with uncleared properties.
“There are insurance and liability risks if someone slips and falls on their property. There’s also the potential for business interruptions, particularly for companies that need trucks and clients to get in and out of their properties.”
