Overwhelmingly, snow and ice respondents indicated they will increase the price of their services in the event the minimum wage is increased to $15 per hour. A third of snow contractors responded they would most likely absorb the increase in labor costs, however they would also consider reducing equipment expenditures and scale back on growth plans to compensate for the labor cost increase. Very few snow and ice managers (3%) indicated they would take the drastic steps of closing their businesses in response to a minimum wage increase.
In comparison, nearly three quarters of all respondents (73%) indicated they would increase prices to offset the expense of a new minimum wage, according to the data. Another third (34%) believed they would also be able to absorb the increases in labor costs. And around a quarter of all respondents believed a minimum wage increase would force them to cut back on expenditures such as new equipment and labor, as well as freeze other pay increases.
When the data is broken down and compared against snow contractor revenue, an interesting trend emerged. Those contractors earning $1 million or less in annual revenue would most likely cut back on strategic items, such as equipment purchasing and engaging in growth plans. However, those snow and ice management companies with more than a million in revenue indicated they were more apt to absorb the costs associated with the increases. However, all snow contractors, despite revenue amounts, ranked increasing service prices as the main course of action to a minimum wage increase.