*

Construction projects slow down

*

Retailers adjust delivery routes

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Manufacturers, warehouses use cooling to maintain

productivity

By Granth Vanaik and Arriana McLymore

June 21 -

Extreme heat has companies in the United States changing the

way they work. One frequent response: work less. Here is how

heat affects several large industries and what they do about it:

* Construction: Work slows at construction projects. What

usually

takes two days can take three or four as builders take breaks,

estimates Art Hogan, chief market strategist at B. Riley Wealth.

Changes could include shifting the workday earlier. Slowing

projects could also hit the companies that sell supplies, but

the impact to the likes of Home Depot ( HD ) and Lowe's

is likely limited because builders buy in advance and the

projects are not canceled, Hogan added. And such retailers see

demand for air conditioners and fans.

* Crude oil: Oil refineries are geared to withstand high air

temperatures, but efficiency drops. Financial-services firm

Macquarie Group estimates extreme weather costs the oil industry

between 1.5% and 2% of refining throughput a year. "Temperatures

matter a lot," said Vikas Dwivedi, global energy strategist at

Macquarie. Refiners in hot climates limit time workers are

outdoors, set up hydration stations and move work shifts earlier

in the day, to cooler hours. Austin Lin, a former refinery

worker and now an analyst at energy consultant Wood Mackenzie,

said he would organize work so arriving contractors could

immediately start projects, without waiting for assignments

or briefings. In extreme heat, around 110 degrees Fahrenheit (43

degrees Celsius), workers can only spend about 30 minutes of the

hour working and need regular breaks to stay safe.

* Retail: Retailers may see more demand for shorts and other

clothing that works well in the heat, in addition to fans and

air conditioners. One of the most significant changes in retail

for high-heat situations involves delivery of items ordered

online. Amazon ( AMZN ) says it adjusts routes on hot days to

give drivers more time to cool off and offers drivers beverage

coolers in vans and water-filled sleeves that keep temperatures

down. The Teamsters union, meanwhile, is using extreme heat to

rally workers, saying unions can secure better protection.

* Transportation: Heat makes travel harder. Airplane wings

don't

generate as much lift in heat and flights stuck on the tarmac

have been reported with triple-digit-degree F temperatures

inside. Railroads may limit train speed over concerns heat will

warp tracks and damage engines and electrical components.

* Manufacturing and warehousing: Companies with huge

buildings

often condition the air with systems that are less costly than

the air-conditioning used in homes and offices. Fans to drive

out hot air, mist to cool work environments and plenty of

available water are top responses. Spirit AeroSystems ( SPR ),

which makes plane parts for Boeing ( BA ), says its water-cooled

system keeps maximum temperatures in its factories in the low

80s F, and there is no impact to production.

* Agriculture: It would take weeks of prolonged heat to

reduce

yields of recently planted corn and soy crops in the U.S.

Midwest, especially with beneficial rains forecast in coming

days, analysts say. Modern row-crop agriculture requires few

workers in the fields for planting and newer tractor cabs are

air-conditioned, mitigating human risk. But in California's

central valley, grapes are tended by hand. Temperatures can

swing tens of degrees F over a few days, and the heat working

within rows of grapes is four or five degrees F hotter than the

surrounding area, some workers estimate. Farmers try to provide

extra water for crops and humans alike, as well as shade. And

they cut hours worked.

* Tech: In heat waves, tech companies need extra effort to

cool

and safeguard big data centers, which are seeing soaring demand

from the artificial-intelligence boom that relies on

power-hungry microchips. That may mean use of backup generators,

which data-center operators such as Digital Realty say can

remain operational for hours, even days.