New research reveals severe weather's toll on manufacturing
Extreme weather can wreak havoc on cities and their economies. Damage from hurricanes Katrina and Sandy is estimated at more than $150 billion and over $60 billion, respectively. Weather-based power failures and disruptions to transportation systems can delay commuters, stall deliveries, and choke supply chains. And even where extreme conditions are common, economic life suffers. Regions with hot, wet climates are less productive on average.
Professor Marcelo Olivares wanted definitive evidence to show whether — and how much — extreme weather affects productivity. Olivares’ experience studying inventories and production in US automobile assembly plants provided that opportunity. With Gérard P. Cachon and Santiago Gallino of Wharton, Olivares matched weather station data with detailed weekly production data from US auto plants.
See full Article: http://www4.gsb.columbia.edu/ideasatwork/feature/7233490/Climate+Change+and+Productivity#
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