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Heatwaves Threaten American Small Business

The World Meteorological Organization has reported “record-breaking” temperatures across western and southern states. The WMO specifically highlights California, Southern Nevada, Arizona, and Florida experiencing abnormally hotter weather. The National Weather Service has been quoted “Unusually warm waters in the Gulf of Mexico and in Western Atlantic Ocean will contribute to oppressive humidity in nearly coastal areas and limit night time cooling.”


Small businesses are suffering from the weather implications in multiple ways. Most notably, small businesses are taking infrastructural hits, especially in Southern states where A/C can break, and systems must be replaced. Natural implications from the heat can take a toll on the areas, resulting in wildfires, affecting manual labor and overall air quality for those workers. Additionally, businesses are struggling to provide adequate cooling methods for employees. The increased burden on the aging power grid in America could lead to blackouts in areas experiencing extreme heat. Kyri Baker, an architectural engineering professor, was quoted “Power lines can carry just a certain amount of power. . . basically heat limited. . . heat up too much they start to sag. If they sag too much, they can touch a tree and short, in addition to being less efficient and result in more losses.”

The economic impact of a hotter climate has been studied by the International Monetary Fund, which released findings in 2018 called “Effects of Weather Shocks on Economic Activity.” An overview of the report is that in the short term, high temperatures hurt growth, while colder temperatures help growth. After extreme heat, there are long-lasting effects on lower-income economies: “Even seven years after a weather shock, per capita output is 1 percent lower for the median emerging market economy.”

1 Comment


splabella
Sep 09, 2023

Interesting read! Sounds like HVAC & electrical companies will be keeping busy however I am curious to see the implications to the affected businesses.

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