Monday, February 4, 2013

Snowmaking Capacity Planning: Increasingly a Lifeline to the Ski Industry



Snowmaking Capacity Planning: Increasingly a Lifeline to the Ski Industry


By Stephen Thorley


      At first thought, one might assume as cold as Ohio can be, offering downhill skiing and snowboarding would be easy money for dedicated entrepreneurs. Truth is, Ohio’s erratic winter weather could only support a handful of ski days each winter and in order to keep the slopes covered, lifts turning, tickets selling (and drinks pouring) ski areas execute the delicate balancing act that is snowmaking.
              

Snowmaking makes a ski season possible at Mad River Mountain in Bellefontaine, Ohio
            Snowmaking is extremely expensive and when snowmakers can operate is always at the hands of often unpredictable windows of optimal weather conditions. Several of the key factors that go into planning a snowmaking operation are:
1)       Access to water: Most preferable option is an unrestricted stream or resort-owned pond. Some ski areas suffer from water restrictions and thus the effectiveness of the entire operation is capped by how much water the resort can acquire.

2)                    Pumping Capacity: Often after a low snow year skiers can expect to hear resorts touting pumping capacity improvements which promise to take greater advantage of snowmaking temperature windows. A local ski area, Mad River Mountain near Bellefontaine, Ohio can pump 7,000 gallons of water uphill every minute. According to the attached OnTheSnow.com video, resorts can typically pump as much water uphill every minute as the average family uses in showers over the course of a year. Strategies for investing in snowmaking capacity can directly affect the number of days a resort can operate each winter, and the quality of the product (snow), which is a key factor influencing the happiness of guests.
  
            3)  Automation: A very large investment can make snowmaking equipment much more efficient. By automating a system of snowmaking units resorts can maximize the time conditions are right and save on labor costs up to 30% by eliminating the need for a technician to manually activate each unit.
             

           4) Cold Temperatures: Obviously, water can only freeze below 32 degrees Fahrenheit. For snowmaking to be effective, however, a measurement of temperature and humidity called wet bulb must remain below 28. In moderate climates like Ohio and even the east coast mountains, there are certainly a limited number of hours each year and sometimes warm-ups following extended periods of optimal weather. Because of the high price tag on snowmaking hours, it is uncommon for a resort to make snow if only a few days later a warm period would melt away the new snow.


The author enjoys the snow on a day that would have had only grassy slopes if it were not for snowmaking technology
Mad River Mountain snowmakers replenishing the base following the warm spell at the end of January

   5)        Size of Checkbook: The most substantial costs to snowmaking are labor and electricity to run the pumps. Blanketing a single acre (55yds x 88 yds) with 12 inches of snow can cost between $1000 and $2000 and takes between 1 and 6 hours. For some perspective, Mad River Mountain (45 minutes northwest of Columbus, OH) claims to have 144 skiable acres, meaning 12 inches could conservatively cost $144,000. This season, Mad River has built a 30inch base multiple times before and after 60 degree periods in January. Snowmaking strategy is obviously key to keeping guests happy and balancing the desire for pristine conditions, the business need to keep the slopes open, and not unnecessarily wasting money by making snow in excess or only to see it melt away before capturing revenue during its existence.

The need to make snow differs greatly by size of operation, clientele, and most especially location. Because snowmaking equipment costs millions and operating millions more, resorts’ expansion strategies have differed greatly based on location. Ski areas receiving less natural snowfall have followed a more expansionist strategy by investing heavily in snowmaking technology.  When these hills receive natural snow or are spared from a mid-season melt-away of the established snow base, there is unused snowmaking capacity. 
For Mad River, snowmaking is an absolute necessity since the resort only receives 36 inches on average per year. Ohio’s frequent fluctuations above and below freezing require a system that can take advantage of a short cold spell. Until recently, the snowmaking network at Mad River was larger than that at many resorts with triple the acreage and skier visits.

                 On the other end of the spectrum are resorts like Jackson Hole, Wyoming and Vail, Colorado which are accustomed to 300+ inches of snow each winter. Such resorts have followed more of a wait-and-see strategy when it comes to snowmaking. Rocky mountain resorts have built up their existing snowmaking networks slower over the years, often tacking on new capacity increments after lower than average snow in a winter such as last year (2012).  These resorts may use portable snow machines and repurpose their grooming equipment as a short-term fix when the natural snow is absent. However, in a winter like last, resorts without the technology in place suffered.





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