Robert McAfee

Professor Hahnenberger
Meteorology 1010
December 5, 2014
P-2: Weather and Your Major
How will learning how to be a weatherman help me as a business major? This was my first
thought after enrolling in this course. At first I was unable to see any connection between the two fields of
study, but after taking the class I have realized that the weather can greatly impact any business or
industry at any time. The one aspect in particular that I found the most interesting throughout the
semester was that the economic impact storm systems could have on a city or nation. To better illustrate
this concept, I have chosen to take a closer look at a relatively recent storm that occurred in the northeast
region on the United States; Hurricane Sandy.
Hurricane Sandy (sometimes referred to as Superstorm Sandy) was a category 1 hurricane that
made landfall in the United States on October 29, 2012 in New Jersey (NY Times). The storm, which
originated as a tropical depression in the
warm waters south of Puerto Rico about
10 days prior, was responsible for over 150
deaths and billions of dollars in damages
to residential and commercial infrastructure
and property. Many businesses were
forced to close their doors to prepare for
the incoming storm, including the New
York Stock Exchange which ceased
trading activity for two days. Hurricane
force winds were reported 175 miles out
from the eye of the storm, which resulted in
power outages and damage much further
inland than many expected (CNN).
Thousands of people were evacuated from
their homes, and millions of others in the
region were without electricity or gas for
days.
A hurricane is obviously not the
business friendly environment one would hope for, but weather phenomenon such as this are factors that
must be considered for those looking to do business on the Atlantic coast line, especially in the tourism
industry. According to a 2013 study, tourism directly supported over 320,000 jobs in New Jersey and
represented just shy of 7% of the states GDP (VisitNJ). Although there is a risk associated with doing
business in this specific location, many business owners find the rewards (possible revenue) are worth it.
Governor Christie estimated that Sandy would cost the state nearly $37 billion, with millions more lost in
the form of decreased future revenue. The NOAAs later reported the storm cost the country roughly $66
billion total. Businesses were either completely destroyed or left crippled by the damage that came with
the storm. Although billions of dollars were paid out by private insurance agencies and federal grants to

help the rebuilding process, billions of

dollars in damage would still go
unrepaired due to those underinsured or
not covered for the flooding that occurred
as a result of the hurricane.
With all of this destruction I also
found myself wondering if anyone wins
as a result of these storms. No one would
ever wish for a natural disaster to occur,
but there is a silver lining for some aspects
of the economy. Forbes reported late
2012 on the spike in sales the auto
industry experienced after the storm.
Customers who had lost their cars due to Sandy had started receiving insurance settlements and were
now in the market to replace their previously destroyed vehicles. Although short lived, companies such
as Chrysler and Toyota saw their sales jump 14% and 17.2% respectively during the month of November
(Forbes). Another industry that tends to experience an economic boost is the construction industry. The
Department of Commerce estimated an increase of $44 billion in output and 281,000 full and part-time
jobs as a result of the repair efforts after Superstorm Sandy. This helps soften the burden of the 270,000
or so jobs that were lost because of storm. One last benefit that stands out is the rebuilding of new and
improved infrastructure. Being required to completely rebuild allows businesses and communities to
create more efficient or environmentally friendly structures. This reduces long-term costs for the
businesses, and as a result increases long-term profit and revenue potential.
In closing, there are several learnings a business person should take away from those
businesses who suffered most during this storm:

Analyze and understand the weather conditions and risks associated with the area you plan to do
business in.
Make sure the business you are going into compliments the climate/weather of the area.
Opening a ski/snowboard shop in a part of the country that does not snow would not be a smart
business decision, but offering flood preparation services in areas below sea level would be.
Purchase enough insurance to protect your investment if a natural disaster does destroy your
business.

Whether it be a ski resort trying to prepare for an upcoming winter season, a state agency trying to
identify an ideal location for new electricity generating windmills, or an entrepreneur wanting to better
predict the best time of year to start a hot chocolate food truck; it is in a business persons best interest to
have a basic understanding of meteorology and the weather / climate that surrounds them.

Works Cited
CNN. Hurricane Fast Facts. 5 November 2014. 7 December 2014
<http://www.cnn.com/2013/07/13/world/americas/hurricane-sandy-fast-facts/>.
Commerce, U.S. Department of. Hurricane Sandy - Potental Economic Activity Lost and Gained In New
Jersey and New York. 2013. 7 December 2014
<http://www.esa.doc.gov/sites/default/files/reports/documents/sandyfinal101713.pdf>.
Economics, Visit New Jersey - Tourism. The Economic Impact of Tourism in New Jersey. 2013. 7
December 2014 <http://www.visitnj.org/sites/default/master/files/2013-nj-economicimpact.pdf>.
Forbes. Hurricane Sandy Boosts Detroit As November Auto Sales Hit 5 Year Highs. 3 December 2012. 7
December 2014 <http://www.forbes.com/sites/afontevecchia/2012/12/03/hurricane-sandyboosts-detroit-as-november-auto-sales-close-to-5-year-highs/>.
NOAA - Blake, Kimerlain, Berg, Cangialosi, Beven II. Tropical Cyclone Report. 12 February 2013. 7
December 2014 <http://www.nhc.noaa.gov/data/tcr/AL182012_Sandy.pdf>.
NOAA. Biollion-Dollar Weather/Climate Disasters. n.d. 7 December 2014
<http://www.ncdc.noaa.gov/billions/events>.
Times, The New York. Hurricane Sandy - Interactive Storm Path. n.d. 7 December 2014
<http://www.nytimes.com/interactive/2012/10/26/us/hurricane-sandy-map.html?_r=0>.