Will this quarter’s GDP be a little bit different? Scorching heat crushing American businesses
What does a 48-degree day in Phoenix, Arizona, feel like? It’s like being hit by a blast of hot air from the oven with no potential solution in sight. And for a business owner like Lyn Thomas, the harsh weather isn’t something she can avoid for long.
Thomas serves a number of dishes at her Zydeco’s Louisiana Kitchen Food Truck and Zydeco’s 2 Geaux walk-up window. But at a time when the heat arrives sooner, gets more extreme and stays longer, it’s not safe or realistic for her to wait for customers at her truck.
Thomas, therefore, is working on a catering business in the meantime. She explains how it’s still hot, even at nighttime when the sun is down. The temperature lingers around the triple digits, even in the dead of night.
$100 Billion In Productivity Losses
As Arizona and a large portion of the US struggles to adjust to a record heatwave, the miserable weather isn’t only taking a toll on millions of Americans, it’s also putting substantial pressure on the economy. It won’t be that surprising to find this quarter’s GDP a little different.
While the exact financial impact is yet to be determined for this weather event, recent studies have shown extreme heat could cost the country $100 billion annually from the productivity loss alone. If left unchecked, it could put a major portion of global economic activity at risk.
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Heatwaves and scorching summer temperatures can cause mortality and bring disruptions to business continuity. The extreme events can also stress regional power grids, in addition to making workers less productive, particularly those who work outdoors.
No Industry Or Business Is Immune
Heat affects our thinking, concentration as well as hand-eye coordination, said Kathy Baughman McLeod, director of the Adrienne Arsht-Rockefeller Foundation Resilience Center at the Atlantic Council, highlighting how humans start making mistakes on getting tired.
While agriculture and construction incur some of the steepest losses, no industry or business is immune, she said. After all, even if an employee works in an air-conditioned environment, it doesn’t necessarily mean they can afford the same luxury at home.
In addition to us, animals need to be kept safe as well. The Phoenix Zoo is already compelled to initiate broader operational changes due to the record-breaking heat. It’s planning to shave its already reduced summer hours from 7 am to 1 pm to 7 am to 11 am.
The changes could bring revenue losses but a number of businesses need to adjust accordingly. The zoo has made a slew of accommodations to ensure patrons, zookeepers and the animals are safe during the summer months, said Bonnie Mendoza, COO and CFO.
