What is industrial (weather) forecasting?
How much does a bad winter cost the U.S. economy? The harsh winter of 1976-77 was estimated to cause $37 billion in direct economic losses due to lost retail sales, increased energy consumption, difficulties in transportation and industrial production, and crop losses. Advanced warning can help reduce some of these losses. Cold weather, for instance, affects heating bills, thermal underwear sales, shipping—and video rentals. In many cities, video rentals have been known to double on weekends when the weather is exceptionally cold. Cold weather also means hot pizza. One Twin Cities pizza delivery establishment found that when it was bitterly cold, even normally hardy Minnesotans would rather someone else get the frostbite—his sales increased $400—500 on very cold evenings. Knowing that in advance means bringing in more help to meet demand. Baseball teams hire private forecasters to predict the beginning and end of rain to help the ground crews decide when to put on the tarps. On a larger scale, knowing that the temperature will jump 10°F in New York City on a summer day allows an electrical utility to purchase the needed extra power before the demand soars and the prices of power go up with it. The correct forecast of a few degree temperature rise or fall can save an electric company millions of dollars. Precipitation pre dictions for mountain reservoirs and drainage basins assist utility managers in planning hydroelectric power generation. Forecasts of temperature for snow making at a ski resort, rainfall on an outdoor movie set, relative humidity for a proscribed agricultural burn, and winds for a hot-air balloon rally are just a few of the many forecasts made for industry by the private weather forecasting firms in the United States.