Why Summer Can’t Get Here Soon Enough
Allison Loth
Over the last couple of weeks, we’ve seen some pretty crazy weather patterns take place, especially with the sudden increase in temperature. It was easy to see the obvious benefits like the ability to spend more time outside, wear shorts, and maybe even go swimming. But what many of us don’t realize is the huge economic benefits that warm weather also instigates.
First of all, there is a significantly higher demand for certain goods when the weather is warmer. In a lot of ways their benefits are cancelled out by the goods we use in the winter like heating vs. air conditioning or ski resort trips vs. trips to the beach. However, the profits of summer tend to always outweigh those in the winter. For example, the demand for foods like ice cream, fruit, or meat goes up over 68% in the summer months (Johnnes). Sources say that even a 1% change in temperature causes a 1.2% increase in demand for ice cream and other treats. On the other hand, places like Starbucks that make a lot of money off of their winter seasonal drinks also make a lot of revenue during the summer due to their other signature drinks. Therefore, this past February made businesses selling these kinds of products see a huge increase in their revenue. In addition, people tend to be more willing to go out to eat or participate in activities when the weather is nice. The success of small businesses will allow them to hire more employees and have a higher demand for any good or service needed to produce their own products. Below shows the amount interest and popularity of restaurants in Chicago relative to the temperature outside.
Other positive externalities of the warmer weather include an increase in jobs, not just in small businesses but also for lifeguards or water park employees. When consumers are more likely to participate in activities, more people are required to work and provide these services, which greatly benefits the economy. Also, when the weather is nicer, employees are less likely to get sick or miss work. In addition, studies show that most employees will take vacation days during the winter to escape the cold, which means that companies gain less revenue because less work is being completed. When businesses have less supply of a good, many times they have to increase the price of their good or service, which in the end forces consumers to have less demand for that particular product. The following table shows how the presence of snow and the temperature outside affects the amount of sales that the average business has throughout the year.
While the difficulty of predicting weather patterns can be stressful, many people including the government and businesses throughout the nation can’t complain when the warmth creeps in, even if it’s a little early. The summery weather has more benefits than many of us expect, for it allows businesses to have greater success, more jobs to be created, and consumers to be more active in purchasing goods. Summer truly can’t get here soon enough.
Works Cited
Evans, Meghan. "Weather Costs US Economy Hundreds of Billions Annually." Local Weather
from AccuWeather.com - Superior Accuracy™. AccuWeather, 30 June 2011. Web. 04 Mar. 2017.
Geraint Johnes Professor of Economics, Lancaster University. "Explainer: How Does the Weather Affect the Economy?"The Conversation. The Conversation, 03 Mar. 2017. Web. 04 Mar.
2017
Yglesias, Matthew. "Why the Warm Winter Was Bad for Ski Resorts, but Awesome for the
Economy." Slate Magazine. The Slate Group, 28 Mar. 2012. Web. 04 Mar. 2017.
I like that you dug deep into a topic people don't typically talk about besides the obvious "I want summer to come already!". You touched on how the good weather generated improves everyone's attitude and productivity, which is definitely true since you can tell that some people are in better moods and get their work done because of the incentive of going outside and enjoying the weather.
ReplyDeleteThis is very interesting that almost everything is better in the summer. It begs the question however, is it simply the warm weather? Or just the timing of a vacation for the kids? Are places like florida always this busy and increasing their revenue because of the constant warm weather? I believe that it is not just the temperature that increases the level of demand for sweet treats and other things, but the amount of freedom and carelessness people have when they know that summer is coming and it doesn't just signify warm weather, but also freedom and fun.
ReplyDeleteWho'd of thought that summer was a national perk not only for its signature summer break, as well as the nice weather and activities it has to offer, but for the employment opportunities it presents and the dramatic increase in revenue that it generates. Just one season, a couple months in the year, can make such a big impact on our economy simply because of its warm weather (which then leads to everything else that's great about summer). Wow. Great choice in topic, Allison. Most people have focused on businesses or products, but you chose to write about how warm temperatures impact our economic choices.
ReplyDeleteI never really considered how much weather affects a consumer's purchase decisions until now. A few weeks ago when it was really warm, I noticed I spent more money, on the weekend then I normally do, because It was nice to get outside for the first time in a while. It's crazy that even a 1% change in temperature causes a 1.2% increase in demand for ice cream and other treats. This statistic was true for me because I ended up getting ice cream two days in a row.
ReplyDeleteThere are endless reasons why the majority of us want summer to come now. The obvious reasons would be the warm weather, no school, and just more time to be enjoying the relaxing aspect of summer. I found it interesting to hear the reason many businesses want summer to come. I think many of us overlook how much more a company can make in summer as opposed to seasons with colder weather. We tend to be more out and about spending money during summer.
ReplyDeleteI never really thought of summer having such a big impact on our economy before. I really liked how you dug deep and put interesting and helpful graphs in your post. I found it interesting that snow could affect sales so much, but I guess it makes sense because people are less likely to drive to places when it is cold and snowy. Along with food, there would be an increased demand in gas in the summer, because people are more likely to drive to places in the warm weather. I know that I want summer to be here now too, but it looks like winter is going to be sticking around for a bit.
ReplyDeleteI never knew that weather had such an big impact on the economy. Everyone always wants summer but no one really knows that it effects way more than just them. It is interesting that small businesses benefit from warm weather. I do more things in the summer than in the winter and I eat more ice-cream, so it really does impact me and the economy. I really liked this topic because I did not know anything about it.
ReplyDeleteThis is such an interesting post! It is extremely beneficial, especially for teens, when summer comes around. With an increase in such sales like ice cream and meat, more workers will be needed, which is where us high schoolers come in. There is such a high demand for restaurant workers and life guards throughout the summer. There are so many opportunities to work in the summer, and simply, the opportunity cost of not working is missing out on some serious cash and not being able to contribute to the economy when it comes to purchasing meals or entertainment.
ReplyDeleteThis is very interesting post! I liked reading about how temperature can affect our economy, because that is something I normally don't think about when it's nice outside. The statistic that you had about how much the demand for products like; ice-cream, fruits, and meat increases a lot during warmer months. I feel like also in the summer time people are happier and more willing to spend money on things, I know I am! This post was very interesting and eye opening!
ReplyDeleteIt's interesting to see how just a change in the weather can have such an effect on the product market. It's easy to distinguish between goods used in the winter and goods used in the summer, but some are often forgotten. The demand for premium gasoline and oil also goes up in the summer due to the re usage of sports cars and motorcycles that were not used during the winter.
ReplyDeleteI've never really thought about all the different aspects summer brings to our economy, but now that I've read this, everything makes sense! It's so interesting that foods like fruits, meats for cookouts, and ice cream all increase demand because of the hot summer sun. Since the demand is higher, companies located by beaches and parks and other various outdoor restaurants will need to hire more staff members to account for their increase in demand, which is awesome because it benefits students who need to earn some extra cash working a summer job. Also, life guarding is in high demand at beaches and pools all across the country, and is a great opportunity for teenagers and college students to benefit from. Since there are so many jobs available, everyone wants to take advantage of each opportunity, and the opportunity cost of not getting a summer job is not making money and sitting at home bored because all your friends are out working at their summer jobs. Also, several jobs throughout the summer give people the opportunity to work outside, which allows us to soak in all the nice weather and get a nice tan before winter comes back around.
ReplyDeleteSummer has so many benefits! Not only does warm weather mean no school and happier people, but it also benefits our economy! It's interesting to read how businesses benefit off of increasing temperatures because the needs and wants of people are changing - such as the want for different foods and summer amenities. Even though business does boom during summer seasons, it doesn't mean it completely slows down when winter comes because either way there is a change in demand. However, it is interesting to see higher profits during warmer months.
ReplyDeleteWhen summer comes many peoples moods become better because there are more activities to do and you can be outside more. This is also good for business owners because in the winter there are snow storms and it is cold so no one really wants to go outside. The part about people buying more is true because they fruits and vegetables are better, also when the seasons change people tend to go shopping for brand new clothes which is good for store owners because they are making more revenue.
ReplyDeleteI work at a small business in downtown Pewaukee (just like you) and I definitely notice the difference in revenue based on the season. Our sales and overall transaction size increase during Christmas time, because there is an increased demand for toys, but during the summer we make more frequent sales that aren't as big due to the increase of people outdoors. When people are inclined to be out and about because of the weather, it increases the economy immensely. I'm very excited to pack away our Easter toys and put out or beach toys. The increase in business makes the job more exciting and allows me to make more sales.
ReplyDeleteThis is all too relevant to high school students. Especially those getting ready to go to college or join the workforce. Summer is the perfect time to get a head start in your career whether it's gaining simple experience at a grocery store or getting an internship. The demand for jobs shoot up as youth gain free time and are looking to plan their futures. There are some major opportunity costs of not utilizing the free time in summer. On an application, a summer job like waiting tables or nannying shows responsibility and experience working with others. Not to mention all of the money being made that could towards further education or housing as you join the workforce after high school.
ReplyDeleteIt’s interesting to see some of the less obvious effects of warmer temperatures. I hadn’t really thought about the increase in job opportunities before, just an increase in revenue for certain businesses. It’d be interesting to see a comparison between these benefits and whatever businesses increase sales in colder months to know how much more summer really benefits our economy, and see the opportunity cost of the warmer weather.
ReplyDeleteI never knew that there is such a huge response to warmer weather. I mean of course people wan't more summer foods and activities when its nice out but I never knew that there was such a big percentile to it. I also didn't know that revenue of drinks would increase or decrease during seasons I just thought the revenue would stay neutral.
ReplyDeleteI find it very interesting that there are more jobs when there is a warmer climate, but not at all surprising. Teenagers want to have fun in the summer while their parents wont pay for them to have all that fun. This causes man increase in demand for jobs during the summer.
ReplyDeleteI for one can say that I need to get out of school and into college. Summer is a usual time for students, and everyone to get a head start on their career. Whether you are working in a big internship or just a simple bussing job. Demand for jobs in summer become much more prevalent as free time and planning futures goes up. Summer jobs, and all jobs show that you are a responsible individual and have experience working with people. There is a major opportunity cost that goes to all of the people that decide not to use this free time to their advantage. But, in the end the money being gained and put towards our future and maybe even our weekend plans is valuable for our future in whichever career we wish to pursue as adults.
ReplyDeleteI found that the weather impacts sales so dramatically. I knew the weather can change your mood, but the economy too? That's quite fascinating. While I agree with most things you said the one thing I could argue with is that the employees that don't show up to work are the main cause decreases in sales in the winter. I personally think its more of a negative externality as people just don't want to drive in crummy weather. This seems like a more legit reason why businesses see a drop in sales not because one of their employees decided to take the day off. I'd really like to see how these stats are for each state nationwide for sure.
ReplyDeleteObviously this post relates mostly to areas with drastic seasonal changes like Wisconsin. However, in states further South which stay pretty warm throughout the year do the same supply and demand changes apply? Does the demand for icecream or going out to dinner and other extra activities stay consistent, since the temperature does? Also since there is barely a change in temperature do specialty summer products produce the same interest or do they not provide the same revenue?
ReplyDeleteIn summer there are a lot more activities to do and they can take place outside so more people will partake.This means more business for owners of places such as, mini golf, water parks, amusement parks, fairs, and more. Also, I agree with the part stating, “people buying more” because during summer fruits and vegetables are better because it's the time of year when they are the most ripe. One last thing to consider is when the seasons change people tend to go shopping for brand new clothes which helps store owners because the quantity of products sold will increase along with the business total income.
ReplyDeleteI really enjoyed reading about this topic! Aside from everyone wanting warmer weather and summer, it's interesting to see the positive economic externalities of the season, as well. Regarding the success of businesses, it's crazy how much happier and more willing people truly are to go out to eat and spend money at restaurants. As the take-out worker at Applebee's, the warmer weather months are my favorite to work because of increased revenue of Applebee's and how much more generous people are with tipping for the to-go service. Clearly, summer is the best season in more than one aspect!
ReplyDeleteHonestly I never thought of summer as being beneficial to companies until now but the simple examples you gave made it clear. Even though we may be having fun spending more time in pools and such, it would also have the opportunity cost of more of our money being spent having fun rather than saving it.
ReplyDeleteI agree with Taryn this post is correct for Wisconsin but say in cali where it warm not much changes. On warm days people seem to get moving and get out and businesses are busy but on a cold gloomy day or raining people seem to stay in. Just how our seasons change and can't grow certain crop in certain places and temp if we have weird weather like cold weather we cant grow to the demand from warmer places increases and if we are not producing a product the price will go up.
ReplyDeleteThis topic is interesting to hear about. I have never thought about the difference of store profits in winter vs summer. For teens in the summer its beneficial to know how economics change and how their wallets are being effected. Stores who sell items such as outdoor products and cool treats will need more employees. Many high schoolers are looking for jobs. Not only do retail stores need workers but so do restaurants, beaches and amusement parks. There are many opportunities for jobs in the summer. Even though there are options to work in the winter, summer gives teens a chance contribute to the economy.
ReplyDeleteWhile I had noticed the increased demand for certain products in warmer months, I never realized how much a slight change in temperature affected sales. Part of the reason that there is such a steep increase can be attributed to the natural scarcity of warmer weather in the economy. Because we can't control the weather, there is a fixed supply of nice days from a market standpoint. This means that people are willing to spend more money to enjoy them when they occur, especially since future weather is not predictable beyond a few weeks, so people do not have the assurance that nice weather will be always be available. One of the effects of the increased sales is an increase in spending in one area that will lead to continued benefits for the rest of the economy. This is attributed to the spending multiplier. One clear example from the post is successful summer businesses reinvesting some of their profits on summer employees who will then spend the money that they earn on other products and services.
ReplyDeleteI found your blog post to be very interesting as I have never thought about how businesses bring in more revenue during the summer months. I'm sure that this case is the opposite from some businesses for example ice skating rinks but for the most part I agree with your statement. Now that I think about it, even my family and I tend to go out more when it's nice out because we don't have to take the time to bundle up for the cold. I also very much agree with your statement that summer cannot come soon enough.
ReplyDeleteI definitely agree that people seem to be more active and go out more when it's nice out; myself included. It's really interesting to hear how the weather also changes people's spending and the jobs that are taken. But I also believe that the question then arises: Aren't there jobs that are created and items that are purchased in the winter that otherwise wouldn't during the summer? For example, snow plowing businesses or winter equipment. Many people earn a decent amount of money offering plowing and shoveling services during the snowy days of winter and everybody's always looking to bundle up in the frigid weather. So, I wonder, how do those compare to the services and goods that are created and bought during the summer time?
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