Money

Riding the Storm: How the 2024 Hurricane Season is Shaking Up the Economy

Published

7 months ago

October 16, 2024

Hurricanes are nothing new, but the 2024 season is ramping up to be one of the most intense in recent years. With forecasts predicting between 27 and 39 named storms, including three hurricanes likely to make landfall in the U.S., the economic fallout is expected to be massive. This year, the challenge isn’t just the storms themselves, but their lingering effects on an already vulnerable economy dealing with inflation, supply chain issues, and ongoing recovery efforts from previous disasters.

The National Oceanic and Atmospheric Administration (NOAA) estimates that each hurricane costs about $22.8 billion. Beyond just the initial destruction to homes, businesses, and infrastructure, hurricanes bring an economic ripple effect that lasts far longer than the storm. Supply chains get disrupted, leading to shortages of goods and services. Businesses shut down, some permanently, and local economies stall as workers are displaced or forced into unemployment. On top of that, the cost of rebuilding infrastructure and communities runs into billions, while insurance claims from these disasters strain the financial sector.

When a hurricane hits, the immediate impacts on employment are staggering. Power outages, transportation shutdowns, and flooded businesses leave many people out of work. According to research, each unemployed American loses about $1,634 per week. Multiply that by thousands of displaced workers, and you can imagine how quickly these numbers add up. It’s estimated that if just 100,000 people can’t work for a single week after a hurricane, the economy could lose around $2.4 billion in output.

But here’s the irony—while hurricanes destroy, they also spark economic activity. As communities begin the recovery process, there’s a surge in job creation. Construction and repair jobs boom, and demand for services like retail, maintenance, and transportation spikes. According to one analysis, for every dollar spent on hurricane repairs, the economy gets a return of $1.72. So, while a storm might initially cause a $22.8 billion hit, the recovery process injects billions back into the economy by supporting jobs, raising incomes, and stimulating spending

In 2024, recovery efforts from these expected hurricanes could generate up to $181.7 billion for the U.S. economy. This might sound like a good thing, but the gains come at a huge price. Lives are disrupted, homes and businesses are destroyed, and entire communities have to rebuild from the ground up. Recovery is not instant, and even though it can spur economic growth, the human and social costs are overwhelming. The hit to industries like tourism, hospitality, agriculture, and energy is severe, with many businesses facing months or even years before they can fully recover.

The economic impacts of hurricanes are complex and often misunderstood. While they might bring a temporary boost to certain sectors, like construction, the long-term costs outweigh the benefits. Hurricanes are a costly reminder of the importance of disaster preparedness and resilient infrastructure. Governments, businesses, and individuals must invest in disaster-resistant buildings, better storm warning systems, and quicker recovery protocols. Doing so can mitigate both the human and economic costs of these increasingly frequent storms.

As we head deeper into the 2024 hurricane season, the focus should be on how to manage both the immediate destruction and the economic aftershocks. While the economy might eventually bounce back, the losses—both financial and personal—are real. Natural disasters like hurricanes underscore the need for smarter infrastructure and more effective response strategies to ensure communities can recover as quickly and as safely as possible.

Featured

The Ripple Effect of President Trump’s Tariffs: What Entrepreneurs Need to Know

Published

4 weeks ago

April 10, 2025

prnews media

President Trump’s latest round of tariffs, aimed primarily at imports from China, Canada, and Mexico, is sending shockwaves through the entrepreneurial world. While the policy is framed as a step toward protecting American industry and encouraging domestic manufacturing, many entrepreneurs—especially those running lean startups or small businesses—are facing serious consequences.

Tariffs 101: What’s New?

Trump’s revised tariff policy includes a 25% duty on imports from countries like Canada and Mexico, and in some cases, up to 125% on goods from China. The administration says these moves are designed to bring jobs and production back to American soil. But in practice, they’re placing a heavy financial burden on small business owners who depend on global supply chains to stay competitive.

Entrepreneurs Caught in the Crossfire

Take Beth Benike, founder of Busy Baby. Her company manufactures baby products in China—$160,000 worth of inventory was already en route when the tariffs were announced. The added costs now make it nearly impossible for her to bring her goods into the country without losing money. Retail contracts with major stores like Walmart are suddenly at risk, and her once-clear growth path is now uncertain.

Casey Ames, CEO of Harkla, a company that creates sensory products for children with special needs, is in a similar bind. His company was hit with a $346,000 tariff bill—up from $26,000. Like many small business owners, Ames explored moving his operations stateside, only to find that U.S. production would nearly double his costs. For many, that’s simply not viable.

These aren’t isolated incidents. Across the country, entrepreneurs are being forced to rethink their strategies, pricing, and supplier relationships—sometimes overnight.

Domestic Production: A Lofty but Costly Goal

While the idea of “Made in America” resonates emotionally and politically, the logistics are anything but simple. For many businesses, domestic manufacturing options are limited, expensive, or simply non-existent in their niche markets.

Setting up new supplier relationships in the U.S. involves time, capital, and often a complete reworking of operations. That kind of shift may work for enterprise-level corporations, but not for entrepreneurs operating on tight margins and shorter timelines.

Market Reactions and Economic Ripple Effects

The stock market has responded with unease. Since the tariffs were announced, major indices have seen sharp declines—about 10% in some cases. Investor confidence has dipped, and with it, funding opportunities for entrepreneurs looking to grow.

Even more pressing is the consumer response. Inflation fears and higher prices are starting to make their way to the checkout counter. And when consumers spend less, entrepreneurs feel the impact fast—especially in industries like e-commerce, retail, and consumer goods.

Navigating the Challenge: What Entrepreneurs Can Do

Despite the challenges, entrepreneurs are known for resilience and adaptability. Here are a few strategic moves small business owners can make to weather the tariff storm:

Diversify Your Supply Chain
Look for manufacturing partners in countries not currently impacted by tariffs. Vietnam, India, and parts of Latin America are becoming popular alternatives to China for production.
Negotiate With Existing Suppliers
Some overseas manufacturers may be willing to adjust pricing or share tariff costs in order to preserve long-term relationships.
Adjust Pricing Cautiously
Reevaluate your pricing model. A small, transparent increase may be necessary to maintain profitability—especially if you communicate clearly with your customers.
Explore Partial Domestic Production
Consider completing part of your production process in the U.S., such as packaging or assembly, to reduce tariff exposure on imported goods.
Stay Informed and Nimble
Trade regulations are changing rapidly. Keep up with the latest developments, seek legal advice if necessary, and be ready to pivot.

Long-Term Implications

While some may argue that these tariffs could ultimately create a stronger foundation for U.S. manufacturing, the short-term pain for entrepreneurs is undeniable. These policies disproportionately affect smaller operations that lack the resources to quickly adjust or absorb the rising costs.

The policy may help some American manufacturers in the long run—but without proper support systems in place for small business owners, many risk being squeezed out of the market altogether.

Final Thoughts

President Trump’s tariffs have introduced a new era of uncertainty in the world of entrepreneurship. Entrepreneurs, often praised as the backbone of the American economy, are now left to navigate rising costs, unpredictable policies, and shifting global alliances.

While the goals of the policy—revitalizing American industry and reducing trade imbalances—are admirable, its execution poses serious challenges. Entrepreneurs need support, flexibility, and time to adjust. Without that, the very businesses these policies are intended to protect may be the ones hit the hardest.

For now, innovation, agility, and clear-eyed planning are the best tools in the entrepreneur’s toolkit. The global market may be shifting, but entrepreneurs have always been skilled at turning challenges into opportunities. The road ahead won’t be easy—but then again, it never is.