The Acropolis has stood proudly above the city of Athens for centuries, with its ancient walls and pillars enduring through war, siege, and conquest. However, during the recent Cerberus heatwave, Greece’s famous tourist attraction had to temporarily close due to extreme heat. This incident highlights the vulnerability of the Mediterranean’s booming tourism industry to the increasingly common heatwaves in Europe. But the impact of these record-breaking temperatures extends far beyond tourism- it affects industries ranging from construction and manufacturing to agriculture, transport, and insurance. These sectors are now preparing for changes in their operations as high-temperature days become the norm due to climate change.
Scientists have made it clear that extreme weather events, including heatwaves, will become more frequent and intense as global temperatures rise. In July, various regions across the US, Europe, and Asia experienced scorching temperatures, leading to “heat domes” and record highs. The economic repercussions of these extreme heat events are significant. Academic studies have estimated that heatwaves, attributed to human-caused climate change, have cost the global economy around $16 trillion over a 21-year period. The consequences of extreme heat go beyond financial losses in the tourism sector- it affects productivity and operational capabilities across industries.
High temperatures hamper productivity, decelerating work processes and increasing the risk of errors. Cognition and decision-making abilities also decrease in hot conditions. The International Labour Organization has projected that by 2030, more than 2% of global working hours will be lost each year due to extreme heat. Around 200 million urban dwellers are currently at risk from extreme heat, and this number is expected to grow dramatically by 2050. Unfortunately, few countries have regulations specifying maximum temperatures for work suspensions. This poses a significant challenge, particularly for outdoor workers in sectors like agriculture and construction, who are exposed to heat-related risks, injuries, and reduced productivity. The situation is especially dire for indoor workers, such as textile workers in factories without air conditioning, especially in regions with extreme heat. Heat-related workplace injuries have become a human rights issue, requiring stronger labor protection policies and government intervention.
Industries must also address more fundamental issues related to extreme heat, such as their physical locations and operational methods. In the construction industry, extreme weather conditions not only impact work on-site but also affect construction materials’ properties. Steel can warp, concrete becomes difficult to work with and prone to cracking, and spoilage becomes a risk. These challenges result in additional costs, including material reordering and project delays, which may lead to fines for missed completion dates. The manufacturing sector faces similar issues, as factories and warehouses were not designed to withstand the current and anticipated temperatures. Equipment efficiency decreases, wear and tear increase, and operational costs rise. Additionally, water scarcity during high-temperature periods poses a significant problem for industries dependent on water for cooling and other functions. Disruptions to waterways, such as the Rhine, affect industries relying on transportation and cooling.
Extreme heat also poses risks to infrastructure, shortening its lifespan and increasing replacement costs. Train tracks, roads, bridges, and airports are all vulnerable to heat stress, leading to potential damages and the need for faster replacements. Furthermore, agriculture suffers from decreasing crop yields due to extreme heat, leading to rising prices and food insecurity. For example, corn, the most widely produced crop in the US, has already lost a significant amount of revenue due to heat-related impacts.
Overall, the economic and operational implications of extreme heat are widespread and profound. Industries need to adapt and reevaluate their practices to mitigate the risks and disruptions associated with record-breaking temperatures. From implementing stronger labor protections to reassessing location choices and investing in climate-resilient infrastructure, businesses must take proactive measures to navigate this new era of extreme heat driven by climate change.
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