Assessments of the economic impact of a severe storm often try to weigh the lost productivity from businesses closed due to the storm against the increased jobs and spending created by the task of repairing the damage. This approach fails to consider the long-term picture, AccuWeather Founder and President Dr. Joel N. Myers said.
"Those people who say storms like Sandy are good because they stimulate economic activity are missing the point. The long-term economic impact of Hurricane Sandy involves more than just its impact on gross domestic product," Dr. Myers said.
"As a result of the storm, there has been a loss in the wealth of many parties which cannot be made up by economic activity," Dr. Myers explained. "Some of it is the wealth of people who suffer damage that is not insured. Some of it is the wealth of insurance companies. Either way, we cannot replace the buildings and the boardwalks and the things that have been lost without spending money and using resources that would have otherwise gone into other things in the future."
Within the mix of people and companies impacted by a storm like Sandy, there will still be both winners and losers, notes Dr. Myers.
Companies utilizing weather forecasting services like those from AccuWeather Enterprise Solutions will be able to stem the impact of Sandy, says Dr. Myers. One example is AccuWeather client Lowe's Home Improvement, with more than 1,745 stores in the United States, Canada and Mexico.
Stacey Lentz, a spokesperson for Lowe's, spoke with Advertising Age magazine on Monday. "We have relationships with FEMA and AccuWeather that give us insight on where the storm is headed and where we need to position product."
Homeowners, particularly those with properties on the coastline, stretching from North Carolina to Maine, could see the value of their homes decline. "In many cases, homeowners have counted on sand dunes to protect beach front property," Dr. Myers said, "but where the sand dunes are washed away, and the homeowners are not fully insured, they may be forced to sell over the upcoming year. Sandy then could have a negative impact on real estate prices in those areas." For those who remain, properties will cost more to insure, adding to the impact for homeowners.
As the death toll climbs early this week, thunderstorms will continue to disrupt rescue and recovery efforts across the Kathmandu Valley.
Severe thunderstorms and heavy rain will continue to push eastward across the upper Gulf Coast and re-fire farther west in Texas into Monday night.
Temperatures are starting off on a cool note before milder air moves in for the middle of the week in much of the Northeast.
Severe storms pummeled parts of eastern Texas Sunday into early Monday morning with softball-sized hail, damaging winds and tornadoes.
Damaging wind and hail as large as softballs have been the main threats, and will continue to be into early Monday morning.
Bouts of heavy rain will once again visit the Southeast this week, bringing the threat of flooding and travel delays.
Eastern U.S. (1990)
More record heat... Location Old Record New Record Burlington, VT 90 84/1962 Boston, MA 92 91/1962 Newark, NJ 94 90/1962 Allentown, PA 92 89/1962
Venus, TX (1990)
Winds gusted to 70 mph.
Monclova, Mexico (1994)
102 degrees with a dew point of -10 degrees.. 1% relative humidity.