The Ripple Effect

 

 

# 5657

 

 

In a bit of a follow up to yesterday’s blog OECD Report: Future Global Shocks and one from last week called Estimating The Economic Impact Of A San Andreas Quake we’ve a report out of New Zealand (h/t Sally Furniss, Managing Editor of FluTrackers) on the nationwide economic impact of the three recent Christchurch earthquakes.

 

The article, by Marta Steeman of BusinessDay.co.nz, describes how 2/3rds of all businesses in New Zealand have been economically impacted by these quakes – even those well beyond the damaged areas.

 

Quakes affect two-thirds of NZ businesses

MARTA STEEMAN

Last updated 11:22 28/06/2011

The September and February earthquakes have affected nearly two-thirds of New Zealand businesses, according to a 2011 Grant Thornton international survey.

 

The survey indicated 18 per cent of businesses had suffered long-term impacts, 26 per cent medium-term impacts and 20 per cent a short-term hit.

(Continue . . . )

 

 

Businesses in Christchurch, at the center of the quake damage, are the most severely affected with 18% of business establishments destroyed.  Half of businesses cited a fall in demand for their goods and services as being the most significant impact.

 

Another concern - as we saw in New Orleans after Hurricane Katrina – is that many skilled workers have left the Christchurch area since the quakes, further hindering the recovery.

 

But the repercussions have been felt across New Zealand.

 

While not in the category of a `future global shock’, the Christchurch quakes demonstrate how a local disaster can economically impact a much larger area.

 

Just as individuals and families need to be prepared for the immediate impact of a disaster, businesses need to have a robust and practical disaster plan that will keep them functioning during, or shortly after, a crisis.

 

While fortune 500 companies spend big bucks on disaster preparedness and recovery, Small businesses – those with fewer than 20 employees – make up nearly 90% of the companies (that have employees) in the United States.  

 

In 2004 they numbered over 5.2 million firms, which employed nearly 25 million people.In addition, there are nearly 22 million non-employer firms (as of 2007) – essentially self-employed individuals.

 

And these are the business enterprises that are the least likely to be prepared for a local, or global, disaster.

 

Ready.gov, the Small Business Administration,  and the American Red Cross are just a few of the agencies working to help small businesses prepare to survive the next disaster.

 

If you value your job, or your business, you owe it to yourself, and your employees to visit:

And

 

And to avail yourself of the free 123 point assessment survey at the American Red Cross’s Ready Rating Program.

 

 

And of course, National Preparedness Month isn’t just for agencies, families, and individuals.

 

It is for businesses as well.

 

 

Like death and taxes, disasters are inevitable. 

 

We may not always be able to prevent them, but we can be better prepared to deal with them when they happen.  

And that can make all the difference whether your business ultimately survives or fails.

»» Read More

Estimating The Economic Impact Of A San Andreas Quake

 

 

# 5643

 

Japan, a little more than 100 days after their massive 9.0 earthquake and Tsunami, finds itself in recession with hundreds of thousands of people either displaced from their homes or out of work, and much of their manufacturing base in disarray.

 

The damage from these types of disasters continue long after the shaking stops.

 

Over the past 18 months we’ve seen major earthquakes along the Pacific rim ranging from Chile, to New Zealand, to Japan. Spared, thus far, have been the Pacific coasts of North America.

 

But California, Washington, Oregon, British Columbia, and Alaska all have significant seismic risks. 

 

Accordingly, the U.S. Bureau of Labor Statistics released a report yesterday that estimated the crippling impact a highly feasible (and long overdue) 7.8 magnitude Southern California earthquake would have on jobs and local businesses.

 

Download PDF file

 

 

A quake of this magnitude, they estimate, could affect  430,000 businesses and 4.5 million workers and deliver a devastating – and prolonged – blow to the local economy.

 

While huge death tolls are considered unlikely in this scenario, the untimely demise of thousands of unprepared businesses is all but assured.

 

As the following story in the Los Angeles Times points out, it is imperative that local businesses prepare now for an inevitable quake.

 

Else they risk not only their own economic future, but the futures of their employees and of the local economy.

 

Southland businesses urged to get ready for 'The Big One' -- a 7.8 earthquake

June 21, 2011 |  3:03 pm

 

 

Yesterday’s announcement makes this a pretty good time to remind my readers about the study last year (see Revised Risk Of `The Big One’ Along San Andreas Fault) that suggests that Southern California may be more overdue for another major quake than previously thought.

 

For more on how you can prepare for `the big one’ (even if you live someplace other than Los Angeles), I would recommend you download, read, and implement the advice provided by the The L. A. County Emergency Survival Guide.

 

 

And finally, from  the USGS Great Southern California Shakeout website,  we’ve this 4 and 1/2 minute video called Preparedness Now (Streaming | Video) that  “depicts the realistic outcome of a hypothetical, but plausible, magnitude 7.8 earthquake on the San Andreas fault in Southern California.”

 

 

To become better prepared as an individual, family, business owner, or community to deal with these types of disasters: visit the following preparedness sites.

 

FEMA http://www.fema.gov/index.shtm

READY.GOV http://www.ready.gov/

AMERICAN RED CROSS http://www.redcross.org/

»» Read More

Korea Cancelling Public Events Over Flu Fears

 

 

# 3768

 

The International Boat Industry news isn’t a place where one would expect to pick up important flu news, but then, this isn’t a normal flu season.

 

Although this story focuses on the very narrow industry concern over the cancellation of a boat show in Korea, the bigger story is the brief mentioning of 291 public events canceled in Korea by order of the central government.

 

 

Swine flu shuts down Korean boat show

By IBI Magazine

Next month's Yacht & Boat Korea has been cancelled because of swine flu. Organisers said the decision was out of their hands because the central government cancelled 291 public events because of fear of H1N1 outbreaks.

 

The World Health Organisation advised northern hemisphere countries in August to prepare for the second wave of the pandemic. H1N1 is the most dominant flu strain in the world.

 

"It is a real disappointment but exhibitors and intending visitors realise that the cancellation is out of the organiser's control and is in the interests of public health and safety," said Barry Jenkins, a consultant to the show. Organisers held an emergency meeting before making the announcement.

 

Similar reporting has appeared in some of the other boating industry magazines, including Marine Business News.

 

While not every country is likely to attempt this same level of mitigation, this pandemic is obviously having an important economic impact at a time when the global economy is already struggling.

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