Texas faces potential $4.6 billion in economic losses due to Hurricane Beryl – Houston Public Media
David Smith
A preliminary estimate shows that Hurricane Beryl could cost the state of Texas from $1.5 billion to as much as $4.6 billion in economic losses.
Ray Perryman, of the Perryman Group, an Economic Research Firm that released the report, says the negative impact of a hurricane on an economy is like a domino effect stretching over months or even years.
Perryman estimates at least $1.5 billion in economic losses. But when the multiplier factor (domino effect) plays out, and the various positive and negative aspects of the storm are considered, The Perryman Group estimates the net impact of Hurricane Beryl could lead to economic losses totaling $4.6 billion in Texas and $7 billion for the U.S.
Perryman said that a natural disaster has positive and negative effects. The positive is the economy bouncing back. He said that the negative is that businesses close, repairs are delayed, and insurance costs go up. Some industries, like real estate, are hit harder than others.
“Some of the larger ones you would expect are in the real estate industry,” Perryman said. “Properties that are damaged, and some must be replaced, landscaping replaced, sometimes properties are not habitable or rentable for a period, all that plays into it, so the real estate sector is certainly a big part of it.”
Perryman also said that retailers will see highs and lows, with a peak in sudden demand in some areas.
“With retail, you have a little bit of a ‘mixed bag’ there,” he said. “Some things are suddenly in demand more than others, but on balance you have some interruptions in service and some people are unable to get out and do things and travel. So, there are a lot of varied factors.”
He added that tourism can also take a hit in a situation like this.
“There are a variety of different industries that pay for this at different points in time. Some are immediate and some are more long term,” Perryman stated.
The report included a review of over 500 industries and shows the Category 1 storm sustained winds of 80 mph and rainfall of up to eight inches across the Houston area causing significant damage, including flooding, downed trees, power outages, downed traffic lights and signage, and extensive structural damage.
And some residents and businesses are still waiting for power to be restored after 10 days.
The report also states the loss of life and human suffering is of paramount importance as well as the enormous emotional and physical toll, in some cases, following a power outage lasting several days in the relentless Houston heat.
“These events in one part of the country cut through the entire supply chain. They cut through people’s payrolls and what they can spend so, it is a domino effect that works its way through the entire economy,” Perryman said. “This is another reason some of these effects occur even well after the storm occurs because they are the lingering effects of some things that happen across a broad spectrum of industries.”
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