Manufacturing Takes Hurricane Hit
As I write this, Hurricane Milton is about to make landfall in the Tampa Bay Florida region in what is likely the most devastating natural disaster in a century. People are evacuating, but the fate of property and valuables left behind remains to be seen.
The storm is going to wreak havoc on manufacturing and industry. With catastrophic effects long after the storm has passed.
Supply chains were already affected by the previous Hurricane Helen. Sue Doerfler, writing for the Institute for Supply Management, interviewed experts who believe that Milton can potentially cause economic losses of more than $200 billion, representing an economic loss equivalent to 2 percent of the country’s gross domestic product. The bottom line is likely higher supply chain costs and higher consumer prices.
The storm is likely to damage current and future citrus production by ripping oranges from branches and damaging trees. Farms were already struggling from the effects of Hurricane Ida in 2022.?
According to Sara Zimmerman, writing for Agricultural Dive, around 40% of ammonium phosphate production used in fertilizers occurs in the Tampa Bay area, and the port of Tampa handles about 25% of U.S. fertilizer exports. The probable result is going to be elevated phosphate prices for the foreseeable future.
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Besides disruptions to industry itself, there is potential danger to returning residents. Hundreds of facilities that use toxic pollutants in their manufacturing process are in Milton’s path. Boat and spa factories, for example, use dangerous registered contaminants that, along with other hazardous chemicals, could be spread along major interstate corridors by intense winds and heavy rainfall. Hurricane Helene already flooded industrial plants across the Southeast just two weeks ago. A year earlier, Hurricane Ida caused more than 2,000 reported chemical spills.
We at Industry Today hope everyone remains safe and clean-up and recovery efforts proceed as quickly as possible.
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