From the April/May 2012 issue of Treasury & Risk magazine

Rain, Wind Go Away

Bad weather can affect output at manufacturing plants.

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.


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