There is a very close connection between weather and finance. Every business has a number of challenges to overcome to ensure business continuity in the event of severe weather. Weather impacts businesses in many ways including production, planning, safety and logistics. Preparation is key to minimising disruption during such events.

 

According to the National Center for Atmospheric Research, the mining industry (14%) and the agriculture sector (12%) are most susceptible to annual losses from extreme weather. The total annual losses in the United States due to weather are estimated around $485 billion.

 

How will the weather affect the place of business and its impact on employees, customers, products and suppliers?  Each business has its own answers to these questions and having an accurate weather forecast will allow for the proper precautions to be taken in advance.

 

Agruiculture

These businesses rely directly on the elements for production. Weather is one of the key factors affecting prospects for crop production and commodity prices. Utilizing our services will allow for optimization of goods. Management of agricultural operations ranges from determining when to harvest crops to efficiently ventilating greenhouses.

 

Our weather forecasts can provide daily weather forecasts, crop moisture levels, palmer index, heating degree days, and tracking long ranged precipitation. 

 

Transportation

Whether concerned with mass transportation or a private shipping company, hazardous road conditions will play a factor in public safety and  maintaining activity. Significant adverse weather conditions affect the safety of road and travel conditions. Being aware of weather conditions can allow for the proper decisions to be made on alternate travel schedules, cancellations, and necessary safety precautions that need to be taken.

 

 Figure 1 below is from an assessment by the

Federal Transit Authority

Industry

An output of products or services that directly relates to weather conditions is dependent on accurate weather forecasts to optimize revenue.

 

One of the most important things for us to figure out is the financial toll that extreme weather levies on society. How much damage will all of this extreme weather cost those who are unfortunate enough to be in its path? The cost is not easily assesed because the damage from extreme weather extends far beyond its immediate path of destruction. According to an article written on Earthday.org by Simon Mercado, the National Center for Atmospheric Research estimates that the U.S. spends $485 billion annually on extreme weather related incidents. Furthermore, these estimates also display which industries are most sensitive to extreme weather changes.

Construction

Construction work relies heavily on safety, efficiency and profitability of any construction project. Utilizing weather forecasting services help to avoid unforeseen delays in construction projects with better planning around implemented weather. This increases productivity, while maintaining safety on the site and cutting down on wasted materials and labor.

 

 

Water Management

Flooding poses great risks to life, property, economy and agriculture. Increasingly higher frequency of flood risk around the globe, public and private companies require new and innovative solutions for water management. Flooding is extremely difficult to manage and accurate weather information is essential for preventing and mitigating dangerous and damaging situations. Percise and accurate weather information is essential when dealing with flood risks, espcially when the cost of lives and health safety are at stake. Water management companies need these accurate forecasts in order to balance water usage and availability.

 

 

 

Figure 1 shows the affects that different weather conditions can have on public transit. It is not only environmental issues that are affected by the severe weather. Our facilities, personal property, vehicles and supporting structures are affected by the weather, each in different ways.

Business Sector

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© 2014 by Forecasting Consultants L.L.C.