Why climate change is so important for business and how climate change can impact your business- Maintaining efficiency is crucial for manufacturing companies, and there are a lot of things that can disrupt processes and slow things down. However, have you considered how the weather might be impacting you?
As we struggle to deal with climate change, temperatures are increasing across the globe, and we are seeing more hot weather than before. Average temperatures are up, and summers are hotter than they used to be. You may not think this is influencing your manufacturing operation, but it is. There are several serious considerations you should make when the weather is warm, but most manufacturing companies fail to realize this. These are some of the ways that hot weather is damaging your manufacturing company.
Physical risks
The physical risks of climate change are those immediate threats that come from the physical environment. These include flooding, hurricanes, drought, wildfires and other natural hazards that are exacerbated by climate change and can cause physical damage to people, property and critical infrastructure. For instance, there are an estimated 1.8 billion people, or 23 percent of the global population, directly exposed to flood depths greater than 0.15 meters in a 1-in-100-year flood event. At the same time 700 million people are at risk of being displaced as a result of drought by 2030.
The agricultural sector is particularly exposed to physical climate risks. Flooding and drought can pose a risk to crops and livestock, as do extreme cold and extreme heat. The Australian Bureau of Agricultural and Resource Economics reported that more than AUD 1 billion dollars have been lost by farmers in the 20 years to 2019 as a result of the changing climate, largely from drought.
Major weather events are already having an impact on business. Weather and climate-related events cost the global economy USD 313 billion in 2022 – with only USD 132 billion of these losses covered by insurance.
Increased Humidity Damaging Machines
Why climate change is so important for business – As temperatures rise, the humidity level increases too, and this can cause untold problems with your equipment. When moisture gets into the inner workings of expensive manufacturing equipment, it can cause the parts to degrade much faster, meaning that you must deal with constant malfunctions and repairs. Not only does this cost money upfront, but you also lose money through downtime. It’s tough to meet deadlines when everything is grinding to a halt every 5 minutes too, so you may lose some customers as well.
This is a particular problem with machines that use compressed air because they are already at risk of excess moisture generated during the compression process. To get around this, you need to use an instrument air dryer package to remove moisture from the air before it is used in machines. Fitting an instrument air package will drastically reduce problems with moisture buildup, especially as average temperatures increase and the atmosphere becomes more humid. You can also use dehumidifiers to reduce the overall humidity in the building.
Reduced Work Productivity
Why climate change is so important for business – Studies show that hot weather significantly reduces worker productivity. When temperatures are very high, people tend to have less energy and it is more difficult for them to concentrate on their work. There is also an increase in absenteeism when the weather is particularly hot. In an office setting, this means that less work gets done, which is a problem. However, in a manufacturing setting, it means that people are putting themselves at risk. When people are distracted by the heat and start making mistakes, the chance of a serious accident is much greater.
You must install effective air conditioning units to manage the heat and prevent people from becoming distracted. Give more breaks during the hot weather too.
Issues with Material Storage
Why climate change is so important for business – Whether it’s raw materials or products waiting to be shipped, hot weather can cause some serious problems with storage. If you have materials that are not designed to be kept at high temperatures and your facility is not well insulated to deal with rising temperatures, materials can easily be damaged. This leads to serious losses and big delays. If you are storing chemicals, it can be incredibly dangerous too. As average temperatures rise, you need to adapt your storage and add more insulation to ensure that materials are always stored safely.
Most manufacturing companies underestimate the problems that hot weather can cause and this affects their bottom line. If you want to thrive, you need to be prepared to deal with rising temperatures in the future.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
