Manufacturing plants in areas with a lot of bad weather see their production suffer, according to a study by researchers from Columbia Business School and the Wharton School.
The analysis of 10 years of weekly production data and weather conditions for 64 U.S. auto plants shows a week with six or more days of rain resulted in 6% lower production than a week with no rain, while a day with a high-wind advisory cut a plant's production that week by about 26%. The plant with the best weather, in Arlington, Texas, lost only 2% of production a year, while the plant with the worst weather, in Lordstown, Ohio, lost 11%, according to the study.
Inclement weather could affect production by delaying the delivery of parts or interfering with employees' travel to work, or because very hot or cold temperatures lower workers' productivity, researchers say.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
