5 Impacts the Local Economy Faces After a Hurricane Hits

Hurricane Florence has swept through North Carolina and left damage across the state. Some areas experienced more damage than others, but it will impact our small business economy across the state regardless.

One of the things we tell our clients, at Sunbelt Business Brokers of Durham, to consider before buying a business in North Carolina is consider their local economy.

5 impacts that Hurricane Florence could have on the North Carolina small business economy are:

1. Increased Spending on Necessities: Before a hurricane hits, there is always a few days out forecast. Typically, everyone in the hurricanes path will go stock up on the essentials. This means there is a large increase in the amount of spending in grocery stores, convenient stores, drug stores, and hardware stores.
2. Suspend Local Spending: For the areas that were impacted by the hurricane, spending on non-necessary items and certain necessities will be suspended temporarily. Until the immediate floods and downed trees are removed, many consumers will not go out and make purchases.
3. Increase in Trades Purchases: After the storms, there will be an increase in purchases made with restoration companies, tree removal companies, landscapers, and other similar companies.
4. Decrease in Vacations: Most hurricanes, and especially Hurricane Florence, hits the coastal communities the hardest. This means there will be a decrease in tourism budgets being spent in North Carolina. It could displace this spending to our surrounding states.
5. Office Downtime: While a hurricane is hitting, most businesses in the line of destruction will be closed or have their employees working from home. This means there will be downtime for companies. But, many companies will go to support their local community after the hurricane and thus, have extended periods of downtime.

Depending on the type of business you are looking to buy depends on whether the hurricane will positively or negatively impact your new business. If you want to know how this could impact you, contact our team at Sunbelt Business Brokers in Durham.