The world is looking to the East Coast of the United States where Hurricane Sandy has leashed her furry.
Today’s post is by Heather Powell, Customer Service Manager at SafeSourcing.
The world is looking to the East Coast of the United States where Hurricane Sandy has leashed her furry. The worst of the weather is over, but her destruction continues. Here is what this writer has learned over the past few days…
Hurricane/Superstorm/Frankenstorm Sandy will end up causing about $20 billion in property damages and $10 billion to $30 billion more in lost business, according to IHS Global Insight, a forecasting firm.
Across U.S. industries, disruptions will slow the economy temporarily. Some restaurants and stores will draw fewer customers. Factories may shut down or hold shorter shifts because of a short-term drop in customer demand.
Shipping and business travel has been suspended in areas of the Northeast. More than 15,000 flights across the Northeast and the world have been grounded, and it will take days for some passengers to get where they’re going.
The Wall Street Financial District, including the NYSE (New York Stock Exchange) was closed for two straight days, the first time since 1888. Many are holding their breath that the salt water from the flooded tunnels and street haven’t affected the power lines underground that feeds this area. If it has there could be delays or intermittent shut downs for repair.
Though those living with the destruction, devastation, and some families who have lost loved one these things don’t matter to them. They folks need help, temporary and long term. They are looking to find a “home” again and peace of mind.
Is there positive in this situation? This writer believes there is.
In natural disasters people are drawn together. Our nation has been through a similar natural disaster before with Hurricanes Andrew (92’), Ivan (04’), Katrina (05’), Ike (08’) just to name a few. Tornados, Earthquakes, Floods all bring out the humanity in Americans. Even with warning there were groups gathering supplies together to send to the hardest hit areas. People from the inland and all over American drove into the storm to help those individuals in need.
Re-building… Retail sales may take a hit now but are likely to benefit in November and December, when people buy the supplies they need to rebuild. Rebuilding homes, businesses, infrastructures all need building materials. Those businesses will increase production to meet the demand. Also to rebuild means new jobs. Those that have lost everything will need to replace everything from homes, cars, clothes, and basic necessities those purchases will filter back into the economy.
From a previous SafeSourcing Blog written post Hurricane Ike, by CEO Ron Southard and still rings true today and every day:
“So, what can procurement professionals do? We already know that billions of dollars in new products and services such as building materials, automobiles, clothing and construction will be purchased by service organizations providing benefits to disaster victims as well as by consumers themselves once they receive insurance payments. To support these efforts, procurement professionals can take extra care to insure that the products they buy substantially support the local economy. By purchasing products from U.S. based companies we keep the Americans employed that build, ship, install, and train and otherwise support these products. Simple questioning can be asked of your suppliers. First, are all the products we procure from you made in the U.S.A.? Second, are all of the raw materials that are used to make the products we procure from you sourced within the U.S.A.? Third, are all of the products we buy from you picked, sorted and packaged within the U.S.A.
If you’d like to review your local sourcing strategy, please contact a SafeSourcing customer services account manager.
We look forward to your comments.