Industries That Rely on Accurate Weather Forecasting More Than You Think

For most people, a weather forecast means you have to think about whether you’ll have to grab an umbrella for that weekend barbecue. 

But what about the farmers, trucking companies, the retailers, event planners, and so on? Crops depend on the elements, as well as deliveries, event planning, and many other things nobody thinks about. Well, we don’t think about it because it’s so heavily integrated into our daily lives. But if it weren’t there, we’d notice. The same way you start viewing the world around you once there’s a power outage.

For some businesses, weather data goes beyond just ‘useful’. And without an accurate forecast, lots of projects become risky with profits at stake.

Nobody wants a business drowning in debt along that downspout that nobody saw coming.

How Weather Improves Business Decisions

There are numerous ways in which weather affects the way businesses make decisions, but we’ll go over just a few examples, so that you get the idea of what’s out there and how important weather data actually is.

1. Energy/Utilities

When a cold snap is on the way, heating demand skyrockets, and they need to be prepared for it. It’s the same thing when it comes to heatwaves. Renewable power depends on the weather even more directly because solar farms need clear skies and wind turbines are useful only when the wind hits the right speed. 

Utilities also use forecasts to prepare for storms that can bring down power lines. For them to be able to make decisions, utility companies need more than a TV forecast; they need precise data. 

This is why many providers rely on tools such as Visual Crossing’s free weather API, which helps deliver extremely accurate data points on everything weather-related.

2. Insurance/Risk Management

After storms, floods, droughts, fires, and earthquakes, claims for damages spike. Weather data is one of the prime factors when calculating risk. This is why insurers can’t afford to react; they need weather forecasts and long term climate data to model future risks. 

This is how they set premiums that reflect the real likelihood of losses. 

If there’s a severe storm on the way, they can also prepare in advance for an incoming wave of claims. 

3. Construction/Infrastructure

Every construction manager worth their salt knows that weather can make or break a project. 

Rain and snow can make all that expensive equipment sit, which pushes deadlines further away. Temperature and moisture are also important because concrete needs specific conditions to cure properly.

Just imagine having a massive C6 concrete pour to create a foundation for something like a skyscraper. 

If the concrete is too dry (or too wet), it might not bond well. But the site is hit with unexpected rain. Think about it this is supposed to be a foundation that will hold hundreds of thousands of tons from collapsing. If the concrete doesn’t cure properly, cracks will form. The cracks will expand. And ultimately… collapse.

If there were more information providing you with accurate weather data, the whole project would be postponed to a later time/date. This is just one out of numerous scenarios where the lack of accurate weather data poses a massive both financial and in terms of safety.

4. Retail/Consumer Goods

Imagine a massive snowstorm alarm notification pops up on your phone; it’s all over the news. The next thing you know, there are empty shelves in stores. All the primary resources, such as salt, bottled water, batteries, flour, toilet paper (and more) all gone.

Retailers keep a close eye on forecast data to adjust what they stock and where they ship it. A hot summer means more demand for fans and air conditioners. A sudden cold spell means higher sales of coats and heaters. Seasonal demand is obvious, but the real challenge is in short weather swings, which is why not having a forecast is risky. 

5. Outdoor Events/Entertainment

If you plan events of any kind, you live and die by the forecast. 

A single thunderstorm has the ability to cancel a huge event you’ve spent months planning. The aftermath is millions in lost revenue and thousands of disappointed fans. And then on top of this, there are also liability issues because nobody wants a headline about a lightning strike at a crowded venue. 

Accurate forecasting is a must because it gives the organizers a chance to reschedule on time or adjust insurance coverage. 

6. Aviation/Maritime Operations

Imagine a huge passenger (or cargo) plane flying in blind at 550 mph. They don’t know what they’re going into. It’d be as if you were given a car on a clear plain. They place a blindfold over your eyes and say, “Good luck!”.

Rain, turbulence, storms, temperature, all these factors (and more) are extremely important for aviation, not just for safety, but also for things such as fuel efficiency. But when you think about it, hey, it’s just a bit of fuel saved, who cares; it’s actually millions saved for the whole aviation industry. Think of all the tourism and travelling, of all the items that are being shipped worldwide all the time; it’s a lot!

Waters are the same. A sudden wind could create massive waves, which could end in devastation and lives lost. No one wants to ride the oceans completely blind while being at the mercy of the weather. If you know what’s coming at you, you can prepare (or avoid) and avoid disaster.

Conclusion

When you think about small talk with your neighbor, a common line is, “How’s the weather?”. And it’s really ironic how this seemingly unimportant sentence has a colossal impact on the world around us and how it operates.

There are entire industries out there that treat weather like one of the most important factors in their business  because it is.