Written by Granth Vanek and Ariana McLemore
Extreme heat has caused companies in the United States to change the way they operate. One frequent response: Work less. Here's how heat is affecting several large industries and what to do about it: * Construction: Work on construction projects slows. What normally takes two days could take three or four days as construction workers take breaks, estimates Art Hogan, chief market strategist at B. RileyWealth. Changes can include changing the work day earlier. The project slowdown may also affect companies selling supplies, but the impact on the likes of… Home Depot (NYSE:) Lowe's will likely be limited because builders are buying upfront and projects aren't being canceled, Hogan added. These retailers require air conditioners and fans. *: Oil refineries are equipped to withstand high air temperatures, but their efficiency decreases. Financial services firm Macquarie Group estimates that extreme weather costs the oil industry between 1.5% and 2% of refining throughput annually. “Temperatures matter a lot,” said Vikas Dwivedi, global energy strategist at Macquarie. Refiners in hot climates are limiting the time workers spend outside, setting up hydration stations and moving shifts earlier in the day, to cooler hours. Austin Lin, a former refinery worker who is now an analyst at energy consultancy Wood Mackenzie, said he would organize the work so incoming contractors could start projects right away, without waiting for assignments or briefings. In extreme temperatures, around 110°F (43°C), workers can only spend about 30 minutes of an hour working and need regular breaks to stay safe. * Retail: Retailers may see increased demand for shorts and other clothing that performs well in the heat, as well as fans and air conditioners. One of the most significant changes to retail in extremely hot situations involves online delivery of items ordered. Amazon says it adjusts routes on hot days to give drivers more time to cool off and provides drivers with drink coolers in pickup trucks and water-filled sleeves that keep temperatures down. Meanwhile, the truckers' union is using extreme heat on workers, saying unions can provide better protection. * Transportation: Heat makes travel more difficult. Airplane wings don't generate a lot of heat and flights have been reported stuck on the runway with temperatures reaching triple digits Celsius inside. Railroads may limit the speed of trains because of concerns that heat will warp tracks and damage motors and electrical components. * Manufacturing and warehousing: Companies with large buildings often air condition systems that are less expensive than air conditioners used in homes and offices. Fans that expel hot air and mist to cool work environments and keep plenty of water available are the best responses. Spirit AeroSystems (NYSE:), which makes aircraft parts for Boeing (NYSE:), says its water-cooled system keeps peak temperatures at its plants in the low 80s F, with no impact on production. * AGRICULTURE: Analysts say it will take weeks of prolonged heat to reduce the productivity of recently planted corn and soybean crops in the U.S. Midwest, especially with beneficial rains expected in the coming days. Growing modern row crops requires few workers in the planting fields, and newer tractor cabs require air conditioning, which reduces human risks. But in California's Central Valley, the grapes are tended by hand. Temperatures can fluctuate by dozens of degrees Fahrenheit over the course of a few days, and the temperature working inside the grape rows is four or five degrees Fahrenheit hotter than the surrounding area, some workers estimate. Farmers try to provide additional water for crops and humans alike, as well as shade. They cut working hours. * Technology: In heat waves, technology companies need to do more to cool and protect huge data centers, which are seeing increasing demand from the artificial intelligence boom that relies on power-hungry microchips. That could mean using standby generators, which data center operators like Digital Realty (NYSE:) say can remain operational for hours, even days.
(Reporting by Gary McWilliams in Houston, Ariana McLemore in New York, Granth Vanek, Ananya Maryam Rajesh, Zaheer Kachwala, Aditya Soni and Shivansh Tiwari in Bangalore, Carolyn Stover in Chicago; Writing by Peter Henderson in San Francisco; Editing by Rod Nickel)
