Architects and beer consumption<\/h2>\n
On the surface, architects don\u2019t appear to be directly connected to beer, no more than any other trade. However, there is a direct correlation between the Architectural Billings Index and beer sales.1<\/sup> The Architectural Billings Index measures the month-over-month changes in the hours architects are billed for construction design. An increase in billing activity means an increase in construction projects, which in turn means that more jobs are available, leading to increased discretionary spending. So even though this relationship seems random on the surface, it makes more sense when taking a closer look. With more disposable income on hand, people are more likely to make purchases for non-essential products, like beer. Understanding the correlation between the Index and beer sales, companies can use store activity, shipping volume, and other indicators to accurately predict these swells and capitalize on the opportunity.<\/p>\n Whereas some correlations are applicable everywhere, others are region-specific\u2014making them more challenging to identify. A notable example of this is the relationship between oil and wine in Texas. From 2002 to 2010, the health of the oil and gas industry showed a 90% correlation with wine consumption. Oil and gas comprise a healthy portion of the Texas economy, so when the industry as a whole thrives, the region\u2019s community reactively prospers. More disposable income results in increased potential wine sales in Texas, which isn\u2019t true in other regions where oil doesn\u2019t make up a large part of the economy. Business leaders must realize that there are scenarios that influence demand in different geographies in varying ways\u2014one size doesn\u2019t fit all.<\/p>\n While many effects on demand can be tied to a specific industry or region, there are a few trends that are present regardless of business or location. For example, there is a correlated relationship between hand and body lotion sales and the amount of times people search for \u201cmorning sickness\u201d on Bing. Morning sickness is one of the most consistent early signs of pregnancy, and the biological changes during pregnancy cause dry skin. Unlike the Architectural Billings Index or oil prices, pregnancy exists purely on a person-to-person level. These types of trends are powerful because they exist anywhere. When businesses can understand and identify them, they can forecast demand for their products accurately to fully capitalize on the market they serve and gain an advantage over their competitors.<\/p>\n Finding hidden insights about certain effects on product demand is key for businesses to gain optimized supply-chain performance and profitability. Like a single domino falling, these insights seem insignificant, but can massively affect demand. Manufacturers who can drive real-time and actionable insights from small, nuanced, and non-obvious external factors stand to gain a competitive advantage over those who still practice traditional demand forecasting methods.<\/p>\n![\"Wine\"](\"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2018\/06\/0706mfgblogv2-3.jpg\")
Oil prices and wine<\/h2>\n![\"Lotion\"](\"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2018\/06\/0706mfgblogv3-3.jpg\")
<\/p>\nLotion sales and morning sickness<\/h2>\n
Conclusion<\/h2>\n