BlueSky Thinking Summary

While most Americans recognize that global warming is real, many appear to believe that its worst effects will be in developing countries around the world.

Jacopo Ponticelli of Kellogg notes that economic research on the subject has been similarly focused on developing countries.

In a recent paper, Ponticelli and colleagues Qiping Xu and Stefan Zeume set out to determine just how rising temperatures were affecting U.S.

manufacturing.

They found that small manufacturing firms are disproportionately affected by climate change and consequently proposing increased costs and reduced productivity using an examination of data from the U.S.

Census and climate records covering four decades.

In such a situation, larger firms better prepared to adapt absorb workers from struggling small ones, and this drives industry concentration.

Using this research, one finds that this warming climate is very greatly concerned with this consolidation alongside technological and policy changes.

Essentially, going forward, the way large organizations adapt could lend very important insight to both current and future small business operators.

Are your business strategies resilient enough against weathering by climate change?