Dive Brief:
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Businesses located near major road projects stand to lose as much as 40% of their revenues during construction, according to an analysis of impact studies by The Daily Progress in Charlottesville, VA.
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The newspaper analyzed studies from Minnesota, Wisconsin, Texas, California, Arizona and Idaho, which show that restaurants lose the most money once road construction begins, followed by automotive outlets, general merchandise retailers and home furnishings stores. More than half of businesses in construction zones suffered from slow or no revenue growth during construction and 45% lost business, the studies said.
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Still, banks, hair salons, insurance agencies and other “destination businesses” less dependent on patronage from passersby felt less of an impact from road construction, one of the studies noted.
Dive Insight:
In Charlottesville, two lanes of the four-lane stretch of U.S. 29 that passes through the city’s main retail corridor are about to close as the state builds an overpass. County officials have suggested possible mitigation strategies to lessen the impact on businesses, including quick completion of the project.
Last fall, city engineers there adjusted the timing of red lights at intersections near another construction project to improve traffic flow into a shopping center.