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Extreme weather is creating growing financial challenges for businesses and households as heat waves, storms, wildfires and heavy rain become more disruptive, The New York Times reports.
In Chicago, for example, a bakery owner lost inventory and spent $1,700 on dry ice after a storm caused a power outage, while other businesses have faced higher electricity bills, property damage and lost sales.
Extreme heat increases energy costs as demand for air conditioning rises while electricity generation becomes less efficient, and it can also reduce worker productivity by disrupting construction, childcare, schools and other businesses. Wildfires and smoke are hurting industries such as tourism and retail, while storms and extreme heat are damaging infrastructure and disrupting business operations.
Food supplies are also at risk as heat damages crops, refrigeration systems fail and livestock and poultry become less productive, potentially driving food prices higher.
Businesses are responding by changing work schedules, adjusting staffing and production, raising prices and considering costly investments such as backup generators and infrastructure improvements. Economists warn that repeated weather-related disruptions could slow economic growth, reduce employment, increase government spending and inflation and create difficult decisions for central banks.
The New York Times has the full story. A subscription may be required.
