Prolonged Heatwaves Raise Cooling Costs and Reduce Productivity at Worksites... 91.2% of Daegu Companies Affected

Daegu Chamber of Commerce and Industry Surveys 463 Companies

Sanggil Lee: "Mid-to-Long-Term Measures Needed"

According to a survey conducted by the Daegu Chamber of Commerce and Industry on 463 companies in the Daegu area (with 204 companies responding, from August 24 to 25), 91.2% of the respondents said that recent heatwaves have affected their business operations, as reported on the 30th.

By industry, the construction and distribution/service sectors were found to be more severely impacted by the heatwave than the manufacturing sector. Specifically, 96.5% of construction companies, 97.3% of distribution and service companies, and 88.4% of manufacturing companies responded that they are affected by the heatwave.

The main difficulties experienced due to the heatwave included "increased costs from higher usage of air conditioning and electricity," which was cited by 65.7% of respondents as the most significant concern. "The burden of managing worker health and safety, such as heat-related illnesses," was also a major issue, cited by 47.5% of companies.

Impact of Heatwaves on Businesses

The survey also found a rise in cost burdens caused by the heatwave. Compared to last summer, the largest group of respondents (39.7%) reported an "increase of less than 5-10%" in additional expenses, followed by those who saw an "increase of less than 5%," at 33.8%. The most significant cost increases were seen in "air conditioning and electricity bills" at 77.0%, followed by "installation and maintenance of cooling facilities" at 40.7%, and "costs for worker break areas and cooling/insulation products" at 39.7%.

Heatwaves have also been shown to affect corporate productivity, with 72.6% of responding companies indicating that their productivity "decreased by less than 10%." Notably, in the distribution and service sector, 24.3% of respondents said their productivity "decreased by more than 10%," which was higher than manufacturing (9.4%) and construction (6.8%).

Responses to the heatwave also differed by sector. Overall, "providing cooling and insulation goods such as bottled water and beverages" was the most common response, reported by 65.7% of companies, followed by "installing or operating additional air conditioning devices" at 53.4%, and "expanding break times" at 31.4%.

However, manufacturing and construction companies mainly focused on improving direct cooling conditions by adding and operating more air conditioning devices and providing cooling and insulation products. In contrast, distribution and service companies more frequently responded by adjusting work hours and working methods, such as expanding break times, shortening working hours, and modifying commuting and shift schedules.

When asked about their greatest concerns if heatwaves continue to be prolonged every year (multiple responses allowed), "increases in costs related to cooling, such as electricity bills" was the most commonly cited worry at 66.7%, followed by "reduced worker productivity and work efficiency" at 61.3%.

Companies' perceptions of the heatwave have also changed. 53.9% of respondents said that it is "highly likely to become a major management risk factor in the future," and 24.0% stated that they "already consider it a major management risk." In total, 77.9% of companies view heatwaves as a current or future major management risk.

Sanggil Lee, Executive Vice President of the Daegu Chamber of Commerce and Industry, emphasized, "As heatwaves persist, companies are facing higher cooling costs in the workplace, and productivity is dropping due to adjustments in work hours and facility management. Since companies now recognize heatwaves as an ongoing management risk, it is important to prepare mid-to-long-term countermeasures for recurring heatwaves."

This content was produced with the assistance of AI translation services.