Trends: Weather versus Business

The great writer John Ruskin once said, “Sunshine is delicious, rain is refreshing, wind braces us up, and snow is exhilarating; there is really no such thing as bad weather, only different kinds of good weather.”  Yet, the dietician we all recognize as the economy would say that all weather is good… in portions.
It is known by all that the weather impacts any and all forms of production and services in the global economy in various ways. Some businesses only locate themselves where such factors including “delicious sunshine” and “refreshing rainfall” have the tendency to be present in proportions that optimize the profitability of the given product or service. Yet, most businesses locate in any given location only to allow the weather to dictate their production. This is done to such an extent that it seems to become second nature to many individuals to completely ignore weather when determining future revenues and expenses of their given trade. Is this because the weather is so complexly integrated in our daily lives that we believe that we naturally adjust to it? Or, is this because individuals believe that the weather is so unpredictable that only hoping for these weather tendencies is the most beneficial business practice?
Such statements are true to an extent. On one hand, it is true that the volatility of any crop is as sensitive to the weather as is the quality of the air we breathe. Thus, the agricultural industry is only successful in climates where growing conditions are relatively at optimum levels. On the other hand, rental car companies often hope for severe weather locally because of the increase in demand of rental cars that often follow. Nonetheless, the rental car industry is one that does not take as much into consideration the weather conditions of their given location.
All industries understand the affect of weather and are aware that adjustments must be made in light of these factors. However, no matter to what degree the relative climate impacts initial business decisions such as location, all businesses still depend heavily on attempts to adjust its weather inefficiencies by immediate fluctuations in prices. Less to no dependency is given to the company’s continued ability to plan for more precise future daily, monthly, or seasonal weather conditions. This strategy is successful when there are minor deviations from normal weather conditions equating to minor fluctuations in prices, yet withstanding major shocks is almost impossible without more direct precautions that have been enacted well in advance. Severe drought hinders farmers from growing enough produce to create enough revenue for the next growing cycle. One rental car station receives far greater revenues than another for the year because the first station is located where more severe weather occurred resulting in unnecessary expenditures. These types of situations happen more often than none.
To create a more sustainable business strategy that prepares the company for all weather shocks, the practical solution would be for them to invest in more sophisticated weather forecasting technology. The issue is not, however, that such technology does not exist. It is that shopping for competitive weather trending technology is not presently within the conventional mindset of companies. Where most companies rely on the innovation of such weather forecasting technology to develop with their long-established partners, there are companies that are revolutionizing the weather industry under the radar and producing far more extraordinary results for their clients on a regular basis.

The above guest article has been authored by Joseph Alston, Marketing Consultant at Weather Trends International.

Weather Trends International is the world leader in short and long-range weather analytics and business intelligence. We provide the only year-ahead weather forecasting with a proven track record of 80 percent accuracy. Once our forecast is created, it never changes. This means that professionals in any industry can use it to create more precise analysis and more efficient business decisions with the utmost confidence. Our proven track record is validated in the fact that we have maintained a client retention rate of 94 percent over the past 10 years with a client base composed of 100 Fortune 1,000 Companies. Weather Trends International should surely be one of your corporate partners. For more product details, contact

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