Is It a Salt Shortage? By Troy Clogg

Is it a salt shortage? Or is it an excess liability? And “not my fault” laws that are the real problem? 

Here we are in early February. For most of us in the Midwest and East Coast, we are about 65 percent of the way through our winter.  Yet, many if not all areas have completely run out of salt and bagged deicers, or if not … all supplies are thin, and prices have doubled or tripled in the last 30 days!    

Why?????

Well, I’ve been in this business for over 40 years and have written many an article on the “supply chain of salt” and how the market ends up where it is today and how today’s salt world will drive large increases in salt prices next year and possibly beyond. The links to these articles are below. The story doesn’t change. And I have lived and paid my way through all the experiences in my articles. 

Salt, or lack thereof- September 18, 2015

https://www.troyclogg.com/blog/salt-or-lack-thereof

The Salt Story... 2018/19 Shortage? July 24, 2018

https://www.linkedin.com/pulse/salt-story-201819-shortage-troy-clogg-lic-m-csp-asca-c

But Really, Why??? 

So, in this year’s article, I think it is important to dive a bit deeper into the “root cause” of salt supplies running low and prices skyrocketing due to the lack of supply and greater demand. 

Why do contractors use so much salt and deicers? Really why? The answer is clear: so we don’t get sued, and when we do, we can document that we tried to make the site safe for people to travel on. Yet, no matter how hard we work and no matter how much salt and deicers we apply… we still get sued! 

Lawsuits, insurance, and primarily, our government is “why” we all apply so much salt. 

We have all been in a conversation where someone says, “remember when we were young, you know before global warming, and when it snowed it stuck around for months… now it is gone so quickly.”  Or something to this effect.  

Here is my answer: yes! I do remember that, and I remember that little to no salt was applied to roads, lots and walkways. We shoveled and that’s it! Why was this level of service the expectation? One key reason: because the property owner and contractor could not get sued for negligence.   Because people just used common sense and learned how to walk and drive in these conditions.   Because the responsibility was on “you”… “me”… “all of us”… to be responsible when the weather (act of God ) brought us a challenge. 

But that is a story from the “old days” … Now we live in a world of “not my fault” … “who can I blame” … “how much money will they pay me” … etc.   

You can trace this back to 1991 on the federal level, when rule 11 changed one word. They changed “mandatory to discretionary.” It’s worth looking up the details around this change.  But to summarize;  it meant that if someone made up a story about someone else (like I slipped on your lot because you didn’t do something correct) and through due diligence, it was determined that it wasn’t the land owner to blame, it was simply someone who didn’t wear winter boots and walk carefully then fell (be aware of their surroundings) was at fault . Then the landowner who got sued could recoup their lawyer/defense fees and this was “mandatory.”   

However, since 1991, it is “discretionary” and has evolved to “the landowner should just pay a settlement.”   And if the landowner is guilty … the contractor they hire is the one who is really guilty.  Because over this same time period through contract language, landowners have passed on “any and all” liability to the contractor.  (hint: read the language in contracts.) 

The 1.800 call xxxx has grown around the country since 1991 exponentially, thus expanding the personal injury attorney world.

Now, each state is a bit different, and even regions inside each state deal with this differently.  But … to be clear, the law is what the law is and if sued that is likely all that will matter.  

Here in Michigan, we were a state that had a law requiring that situations like what I have described were “open and obvious” and therefore it was as “fair” as possible to determine if the contractor was negligent or if the person getting hurt while slipping and falling carried some or all of the responsibility.  

Last year, the Michigan Supreme Court decided to remove that language and open up landowners and their contractors to even more litigation.  About 70 % of all elected officials are attorneys…. just saying.  And the billboards around Michigan were soon covered with 1 800-xxx-xxxx. Personal injury attorneys. 

So here we are.  Insurance companies are paying out dearly, and that’s not good business for them.   Insurance companies are going through growth via acquisition and the larger they get, the less they want certain lines of business. (Keep in mind not one snow contractor in the country is insured by a Tier 1 insurance company as far as I know.) 

And in the end, who pays the price??? You, me, our families! The consumer.  And we are paying for what?   We are paying for landowners and their contractors to not only service sites over and over and over again. We are paying for salt and deicer to be applied over and over and over again. And we are paying for exponentially growing insurance rates. Oh yes, we are also paying for salt and deicers that double and triple in years like this!   

Why? Why is there a salt shortage? There is a salt shortage because we live in a world of “not my fault” and I’m going to make you pay! 

So, all any of us have is our vote!  So, vote wisely during elections. And just know that as long as we have those who want to blame others and get supported by our government and laws, salt prices will soar, maintenance costs of properties follow suit and the circle will continue.  

I hope this and the links help answer any questions you may have about a salt shortage.  

And for those who would love to see the world use less salt and Deicers to help the environment. Well, that’s another article! But I will say: 

Until the risk of lawsuit diminishes, the use of salt, liquids, and blends of calcium and magnesium will continue! 

Stay safe! Be grateful for the hardworking people braving the weather and working hard to keep sites as clear and safe as possible! And most importantly love those around you and make today a great day filled with joy. 🙏

#tooblessedtobestressed