With one month left in hurricane season, the United States has already experienced two historic storms that have joined the infamous ranks of $50-billion-plus disasters. Hurricanes Helene and Milton have put national and state Federal Reserves on edge. Beyond the tragic loss of life, homes, and communities, livelihoods are also under threat. Business operations have been interrupted, and, in many cases, subsequent revenue and profit losses cannot be recouped. According to new research, the aftermath of these storms could be felt for more than a decade – as tax revenue declines for long periods, public budgets can be severely diminished.
“As natural disasters drive devastation across the southern United States, business owners are concerned about the impacts to their bottom lines,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “The American people deserve access to climate risk information so they can make informed business decisions, plan for the future, and protect their communities and customers.”
A new survey by Small Business for America’s Future shows a vast majority of small business owners say climate events like hurricanes, fires, floods and heat could lead to increased expenses or business interruptions.
- 54% believe that having more information about climate-related financial risks leads to more informed investment decisions.
- 61% believe this information would help them make better supply chain decisions about potential business partners and suppliers.
Below is a roundup of the estimated costs to local economies and businesses caused by these historic climate disasters.
Hurricane Helene
- In North Carolina alone, the state government estimates nearly $50 billion in damages from Hurricane Helene.
- Following the storm, medtech supplier Baxter International’s stock declined after the company announced it would be closing its largest manufacturing facility in North Carolina due to flooding.
- When quartz mining company Sibelco halted operations due to employee displacement and infrastructure disruption, semiconductor companies like Nvidia saw their stocks dip immediately.
Hurricane Milton
- Experts estimate that Hurricane Milton’s damage will cost more than $50 billion, with the potential to leave behind devastation approaching $175 billion or more.
- In Florida, Milton is expected to slash the state’s Q4 GDP growth by three-to-four percentage points.
- For the state’s agriculture industry, projections show the storm caused up to $2.5 billion in damages due to infrastructure disruption and flooding, severely impacting Florida’s citrus, dairy, and cattle farmers.
Hurricane Beryl
- Researchers estimate that Hurricane Beryl in June 2024 cost Texas at least $1.5 billion in direct economic losses, and the storm’s aftermath could lead to financial losses totaling $4.6 billion in Texas and $7 billion for the U.S.
- The Texas Windstorm Insurance Association said it expected to use about half of its over $450 million catastrophe fund to pay for damage claims and noted that the 2024 storm season is already on track to be one of the most expensive in recent years.
- A local business in Missouri City, Texas, suffered roughly $70,000 in losses due to power outages and subsequent lost inventory; one family-owned business even had to close its doors permanently.
