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.
Severe thunderstorms with the risk of a few tornadoes will advance eastward across the northern Plains and Upper Midwest into Friday.
A dangerous outbreak of severe storms will strike the northern High Plains and Canadian Prairies on Wednesday.
Join us on Thursday for AccuWeather LIVE as we will discuss the debate of climate change and hurricane frequency and the top five things you need to know about summer weather.
A hot and humid weekend is shaping up for Chicagoland just in time for the official start of summer, while severe thunderstorms fire nearby to the north.
Tropical Storm Barry formed over the southwestern Gulf of Mexico and may hit the Mexico state of Veracruz Thursday.
A tornado touched down at Denver International Airport as a severe weather system moved through the area.
Amwell, NJ (1742)
A fatal hailstorm and severe thunderstorm containing hail 4" in diameter killed one child and did considerable damage to crops.
Central Illinois (1964)
19th-20th) Hail as large as grapefruits battered more than 50 counties, causing crop and property damage totalling $9.2 million.
Philadelphia, PA (1994)
Strong thunderstorm winds blew off a large section of a hanger roof and also damaged two aircraft.