How the Impending Government Shutdown Will Impact Vermont Businesses
With a resolution improbable, the nation is likely facing a government shutdown starting Sunday, October 1, at 12:01 AM. While we hope for a solution that averts such a scenario, businesses must be prepared for the potential impacts.
Vermont Businesses must assess and strategize for the potential fallout of a government shutdown that could include:
- Contractual Delays: Vermont has as many as 160 businesses with contracts valued at over $168,00,000 that provide critical products and services to government agencies and rely on government contracts. Businesses doing this work can anticipate delays in payments and challenges connecting with contract managers. Prepare for cash flow disruptions and the need to renegotiate terms.
- Regulatory Paralysis: Companies subject to government regulations, such as specialty beverage and food producers, will need to brace for a backlog of applications, compliance checks, inspections, and exporting of goods. This could challenge growth, product launches, and daily operations.
- Consumer Caution: Prolonged government uncertainty can lead to decreased consumer spending. Industries like retail, hospitality, and tourism may experience a drop in customer confidence. This is especially challenging as Vermont enters one of its busiest seasons for the visitor economy.
