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Exclusive: The Hidden Costs of Shutdowns Revealed - How Government Closures Secretly Hurt Business



The impacts of federal government shutdowns extend far beyond furloughed workers not getting paid. According to Pete Tseronis, founder and CEO of Dots and Bridges and a former two-time federal chief technology officer, shutdowns can negatively affect both public and private sector operations in significant ways.


In an article published in Forbes on March 7, 2024, Tseronis explained that while essential government functions like national security continue, non-essential services are suspended, resulting in delayed processing of benefits and barriers to accessing important public resources (Tseronis, 2024). Contractors supporting government work may also find themselves without income if their projects are deemed non-essential.


Tseronis warned that shutdowns undermine confidence in the economy and erode public trust in leadership. They also accumulate backlogs of work and can disrupt supply chains and infrastructure projects (Tseronis, 2024). As such, both government agencies and their industry partners must prepare for the "hit the ground running" mentality required to resume normal operations once funding is restored. Shutdowns have collateral impacts beyond paychecks that all stakeholders would be wise to consider.


Reference:Tseronis, P. (2024, March 7). Government shutdowns are not snow days: Understanding and preparing. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2024/03/07/government-shutdowns-are-not-snow-days-understanding-and-preparing/?sh=49628229a7dd

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