BUSINESS:
Drought affects construction, entertainment along with farmers
ClimateWire:
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This summer's drought isn't just an issue for farmers -- businesses across the country are feeling the heat.
The prolonged warm weather has had a significant impact on the construction, entertainment and landscaping industries. Yet for those in the business of keeping cool, profits have increased with every spike in temperature.
According to the National Oceanic and Atmospheric Administration, this year's June was the warmest on record, and July wasn't lacking in days of 100 degrees Fahrenheit, either. The scorching heat forced workers at Ken Hunt's A&K Construction in Kentucky to start hammering away earlier than usual -- much earlier. Employees now get to the site at about 5:30 a.m.
The morning rush is a precaution, Hunt says. He doesn't want to put any of his 200 employees in harm's way.
"I watch the weather pretty religiously because it impacts our business," he said. "We don't want anybody getting sick or hurt. We're pretty vigilant."
Landon Hawkins has had to rethink his business plan, since the hot weather has decreased the crowds at his Chapel Hill, N.C., outdoor movie theater. A normal summer night crowd is about 450 people -- on hot weekends this summer, the theater is averaging only 225.
Brendan Harrison's landscaping business in St. Louis is feeling the effects, too. His lawn-mowing and plant-based profits have dried up, and he's looking at future seasons to make up his losses.
"There will be a lot of lawn repair this fall," he said. "A lot of trees and shrubs probably won't make it either through the summer, or they will be damaged to the point where, next year, they won't look as healthy, and people will want to replace them."
However, not every industry is suffering. Sales for Polar-Products in Santa Rosa, Calif., have increased about 15 percent over last year at this time, according to owner Gary Murray. The company markets items meant to keep customers cool.
"As the temperature started climbing, the orders started coming in," he said. "We had one of our busiest months [in June] that we have had in the last three years."
Overall, though, the drought has cost the economy more than $12 billion in losses, a number that could rise steeply before the year's end, said Steve Bowen, senior scientist and meteorologist for Aon Benfield, a global reinsurance firm in Chicago (Chuck Raasch, USA Today, July 30). -- MBI