3 Ways Extreme Heat Can Hurt the Economy

As dozens of cities in the West experience all-time high temperatures, 2021 is expected to have one of the hottest summers on record. The extreme heat has caused hundreds of deaths, sparked wildfires and worsened drought conditions in over a dozen states.

Business Insider cites a large body of work that links heat to economic outcomes. Here are 3 ways they say extreme heat affects the economy:

1. Extreme heat hinders growth. A 2018 study found that the economies of US states tend to grow at a slower pace during relatively hot summers. Higher summer temperatures reduce growth in many industries, and workers are less productive when it’s hotter out.

2. Higher temperatures equal lower crop yields. Extreme heat takes a toll on some crops, including corn, soybeans and cotton. The consequently lower yields could be costly for US agriculture which depends heavily on those crops.

3. High temperatures drastically increase energy use. According to a 2011 study, just one day with temperatures above 90 degrees Fahrenheit can increase annual household energy use by 0.4%. This increase in electricity use stresses electric grids which can lead to blackouts. California’s 2019 blackout cost the state an estimated $10 billion.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

Leadership
Leading Change from Within: The Power of Transformational Leadership
February 7, 2026

Leadership is being tested in real time. As organizations navigate AI adoption, remote work, and constant structural change, many leaders are discovering that strategy alone isn’t enough. People are asking deeper questions about purpose, trust, and what it really means to show up for teams when uncertainty is the norm. In a world where burnout…

Read More
technology
Clarity Under Pressure: Technology, Trust, and the Future of Public Safety
February 7, 2026

When something goes wrong in a community—a major storm, a large-scale accident, a violent incident—there’s often a narrow window where clarity matters most. Leaders must make fast decisions, responders need to trust the information in front of them, and the systems supporting those choices have to work as intended. Public safety agencies now rely…

Read More
weather Intelligence
Clarity in the Storm: Weather Intelligence, GIS, and the Future of Operational Awareness
February 6, 2026

For many organizations today, weather has shifted from an occasional disruption to a constant planning factor. Scientific assessments show that extreme weather events—including heatwaves, heavy rainfall, and wildfires—are occurring more frequently and with greater intensity, placing growing strain on infrastructure, utilities, and public services. As weather-related disruptions become more costly and harder to manage,…

Read More
AI in sterile processing
AI in Sterile Processing Is Proving Its Value by Acting as a Co-Pilot, Not a Replacement
February 5, 2026

Sterile processing departments are dealing with persistent operational pressures. Surgical case volumes are rising, instruments are more complex, and staffing shortages remain across many health systems. Accuracy and documentation requirements continue to tighten, leaving little room for error. In busy hospitals, sterile processing teams may handle 10,000 to 30,000 surgical instruments per day, with…

Read More