Scaffolding and Unequal Economic Effects on Small Businesses

New York City has been the powerhouse of construction and new development for decades.^[1] To safely conduct these developments, construction companies place temporary sidewalk sheds or scaffolding as required by New York City safety laws.^[2] Scaffolding is “a temporary framework used in construction to support workers and materials.”^[3]  In New York City, its use is often triggered by a five-year inspection cycle for buildings over six stories, and it must remain in place until unsafe conditions are corrected.^[4]  A consequence of these developments, businesses, particularly small businesses, have been negatively impacted by prolonged scaffolding, which serves an important public safety function through its protection of pedestrians during construction and repairs. On the flip side, scaffolding can also create long-term structural obstacles, economic instability, and closures,^[5] primarily affecting small businesses, as they have thinner margins and rely on local foot traffic.^[6]  Unlike larger businesses that have name recognition, wider margins, and a long-standing reputation to keep them afloat, a decrease in business for smaller businesses can be detrimental.^[7]  Although these safety measures appear facially neutral, their prolonged presence disproportionately imposes the economic burden of urban development on small businesses, which bear the most direct and sustained losses from scaffolding.

Scaffolding as a means of safety largely expanded in New York City in the 1980s when local safety laws shifted and aimed to protect pedestrians from debris.^[8]  As safety requirements became more stringent, scaffolding evolved from a temporary precaution into a near-permanent fixture on many city streets, often remaining in place for substantial periods of time, with the average sidewalk shed standing for approximately 565 days.^[9]  Some of the factors that contribute to delays in taking scaffolding down include neglected buildings, high maintenance costs, and legal and bureaucratic delays.^[10]  As construction progresses on buildings, complying with regulations, obtaining permits, and unexpected costs delay work, leading to scaffolding remaining in place longer than necessary.^[11]

In July 2023, Mayor Adams proposed a new city initiative known as “Get Sheds Down,” aimed at removing scaffolding and creating design alternatives.^[12]  In 2024, Mayor Adams released a study commissioned by New York City and conducted with Mastercard that found that cardholders spent between $3,900 and S9,500 less each month at businesses that were located under scaffolding.^[13]  In particular, businesses that depend on walk-in customers, such as restaurants and bars, were impacted the most, reporting a 3.5 to 9.7% decrease in weekly transactions when construction and scaffolding are placed surrounding their business.^[14]  Following this initiative and the research from this study, Mayor Adams signed several pieces of legislation that would provide new tools to help remove unnecessary scaffolding and create more aesthetically pleasing designs for scaffolding that remains in need.^[15] This legislation, which directs property owners to complete construction repairs on their businesses and remove sheds in a timely manner or face new penalties, aims to reduce the length of permits for sheds and improve the variety of shed colors and other aesthetic features.^[16]

While Adams' initiative has had a strong impact on the community, leading to over 330 sheds being removed, still over 7,500 active sheds remain, with 1,895 of which have been in place for more than two years..^[17]  To further reduce prolonged scaffolding and ensure support for small businesses, the City still requires serious change.  Potential improvements could include financial incentive programs or providing tax breaks to business owners who promptly complete repairs.  Moreover, the City should invest in alternative technology solutions, such as netting or drones, that could provide less disruptive options.^[18] While scaffolding may still be necessary to complete certain repairs and ensure compliance with safety requirements, these technologies can be used to supplement inspection and monitoring processes, thereby reducing the length of time scaffolding must remain in place.  Additionally, construction companies can coordinate with affected businesses to determine their preference for scaffolding that aligns with their business colors and aesthetics to prevent further impact.

Scaffolding is intended to serve an essential public safety function, but when these temporary sheds remain in place for years they impact the businesses at the heart of the city.^[19] New York City currently has thousands of sidewalk sheds citywide that persistently obstruct businesses and complicate access to storefronts or  block them entirely.^[20]  Small businesses that rely on visibility and steady foot traffic suffer from these sustained losses and typically lack the financial flexibility to operate with prolonged disruption.^[21]  Ensuring these safety regulations do not undermine the stability of small businesses is critical to preserving New York City as the place we all love.  Without meaningful attention to this imbalance and greater enforcement of penalties, the economic vitality of small businesses will continue to decline, eroding the unique charm that makes New York City the place it is.

^[1] See Elizabeth Stamp, A History of New York City in 27 Buildings, Aʀᴄʜɪᴛᴇᴄᴛᴜʀᴀʟ Dɪɢᴇsᴛ (Oct. 16, 2019), https://www.architecturaldigest.com/story/history-new-york-city-27-buildings [https://perma.cc/B99L-C8QY]; Five Periods of the Skyline, Skyscraper Museum, https://skyscraper.org/skyline/five-periods-of-the-skyline [https://perma.cc/6BLP-Y3TE].

^[2] N.Y. Lᴀʙ. Lᴀᴡ § 240 (McKinney 2026). Requires owners, contractors, and their agents involved in covered construction-related work to erect scaffolding or other safety devices to provide proper protection to workers performing elevation-related work.

^[3] Scaffolding, Vᴏᴄᴀʙᴜʟᴀʀʏ.ᴄᴏᴍ, https://www.vocabulary.com/dictionary/scaffolding [https://perma.cc/DHK8-39ZK].

^[4] Façade & Local Law,  N.Y.C. Dᴇᴘ'ᴛ ᴏғ Bʟᴅɢs., https://www.nyc.gov/site/buildings/safety/facade-local-law.page [https://perma.cc/GMD6-DZMC].

^[5] See Mayor Adams Releases New Study Finding Sidewalk Sheds and Scaffolding Cost Manhattan Businesses Between Nearly $4,000 and $9,500 Each Month,  Oғғ. Oғ Tʜᴇ Mᴀʏᴏʀ (Aug. 14, 2024), https://www.nyc.gov/mayors-office/news/2024/08/mayor-adams-releases-new-study-finding-sidewalk-sheds-scaffolding-cost-manhattan-businesses [https://perma.cc/CF5V-QGLL].

^[6] Id.

^[7] Id.

^[8] Scaffolding in New York City: History, Challenges, and the Future, SᴄᴀғғPʟᴀɴ (Mar. 20, 2025), https://www.scaffplan.com/news/newyorkscaffolding [https://perma.cc/MB77-W3ZP].

^[9] Active Sidewalk Shed Permits,  N.Y.C. Dᴇᴘ'ᴛ ᴏғ Bʟᴅɢs., https://www.nyc.gov/assets/buildings/html/sidewalk-shed-map.html [https://perma.cc/H64N-ZV32].

^[10] Scaffolding in New York City: History, Challenges, and the Future, supra note 8.

^[11] Id.

^[12] Mayor Adams, DOB Commissioner Oddo Unveil Plan to Remove Unsightly Sheds, Scaffolding From NYC Sidewalks, Oғғ. Oғ Tʜᴇ Mᴀʏᴏʀ (July 24, 2023), https://www.nyc.gov/mayors-office/news/2023/07/mayor-adams-dob-commissioner-oddo-plan-remove-unsightly-sheds-scaffolding-nyc [https://perma.cc/9FC2-8N58].

^[13] Mayor Adams Releases New Study Finding Sidewalk Sheds and Scaffolding Cost Manhattan Businesses Between Nearly $4,000 and $9,500 Each Month, supra note 5.

^[14] Id.

^[15] Mayor Adams Signs Historic Legislation to 'Get Sheds Down,' Remove Unsightly Scaffolding Across Five Boroughs, Oғғ. Oғ Tʜᴇ Mᴀʏᴏʀ (Apr. 17, 2025), https://www.nyc.gov/mayors-office/news/2025/04/mayor-adams-signs-historic-legislation-get-sheds-down-remove-unsightly-scaffolding-across [https://perma.cc/F8K8-CT5N].

^[16] Id.

^[17] Id.; Active Sidewalk Shed Permits, supra note 9.

^[18] Scaffolding in New York City: History, Challenges, and the Future, supra note 8.

^[19] See Sidewalk Sheds Construction Equipment, N.Y.C. Dᴇᴘ'ᴛ ᴏғ Bʟᴅɢs. (Aug. 2015), https://www.nyc.gov/assets/buildings/pdf/code_notes_sidewalk-sheds.pdf [https://perma.cc/8VLY-YMY4]

(nothing the public safety function that scaffolding serves); see also New York City Council Votes to Reform Scaffolding and Sidewalk Shed Rules to Reduce Their Presence, Improving Public Safety and NYC's Streetscapes, N.Y.C. Cᴏᴜɴᴄɪʟ (Mar. 26, 2025), https://council.nyc.gov/press/2025/03/26/2824 [https://perma.cc/R859-YPUR] (stating that the average time scaffolding remains is over 500 days).

^[20] New York City Council Votes to Reform Scaffolding and Sidewalk Shed Rules to Reduce Their Presence, supra note 19.

^[21] Mayor Adams Signs Historic Legislation to 'Get Sheds Down,' Remove Unsightly Scaffolding Across Five Boroughs, supra note 15.