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Anticipate Operational Disruptions: Storm Threatens Business Continuity by Saturday

·7 min read·⚡ Act Now

Executive Summary

Hawaiian Electric is urging all customers, including businesses, to review emergency preparedness plans and stock essential supplies due to a potential storm forecast for this Saturday. Proactive measures are critical to mitigate power disruptions and ensure operational continuity.

  • Small Business Operators: Risk of immediate revenue loss due to power outages and supply chain interruptions.
  • Tourism Operators: Potential for cancellations, service disruptions, and damage to property.
  • Agriculture & Food Producers: Threat of crop damage, loss of refrigeration, and disrupted harvest/distribution.
  • Healthcare Providers: Need to ensure backup power for critical equipment and patient care continuity.
  • Real Estate Owners: Risk of property damage and service interruptions for tenants.
  • Action: Review and execute emergency plans by Saturday morning.

Action Required

High PriorityBy Saturday, before the storm potentially impacts the islands.

The storm could affect the islands as early as Saturday, requiring immediate attention to emergency preparations to avoid power disruptions and operational failures.

All businesses should review and execute emergency plans, secure essential supplies (water, food, batteries, fuel), protect physical assets, and communicate with staff and stakeholders before Saturday to mitigate power outages and operational disruptions.

Who's Affected
Small Business OperatorsReal Estate OwnersTourism OperatorsAgriculture & Food ProducersHealthcare Providers
Ripple Effects
  • →Storm impact → widespread power outages → disruption of essential services (water, communications) → critical supply shortages
  • →Tourism cancellations → reduced visitor spending → negative impact on service sector employment
  • →Business closures → depletion of cash reserves → potential permanent closures and job losses
  • →Supply chain interruptions → increased costs for imported goods → higher consumer prices
Majestic storm clouds gather over a tranquil sandy beach, showcasing nature's power.
Photo by Connor Scott McManus

Anticipate Operational Disruptions: Storm Threatens Business Continuity by Saturday

As a potential storm system approaches Hawaiʻi, Hawaiian Electric (HECO) is issuing a strong advisory for all customers, including businesses across the islands, to immediately review and activate their emergency preparedness plans. The forecast indicates the storm could impact the islands as early as Saturday, creating a narrow window for essential preparations to mitigate significant operational disruptions, power outages, and potential damage.

The Change

Hawaiian Electric's proactive warning serves as a critical signal for businesses to shift from passive awareness to active readiness. The primary change is the imminent threat of severe weather, which could lead to widespread power outages, downed trees, and damage to infrastructure. The urgency stems from the forecasters' projected arrival as early as this Saturday, demanding immediate action rather than long-term planning.

Who's Affected

Small Business Operators (small-operator)

Businesses relying on consistent power for operations—restaurants, retail shops, service providers, and local franchises—face immediate risks. A storm could force temporary closures, leading to direct revenue loss. Essential services like refrigeration for food businesses and point-of-sale systems for retailers are particularly vulnerable. Stocking essential supplies like water, non-perishable food, and battery-powered backup systems is paramount. Communications infrastructure, including internet and phone lines, may also be affected, hindering customer service and sales.

Real Estate Owners (real-estate)

Property owners, developers, and managers must prepare for potential damage to their assets and ensure tenant safety. This includes checking structural integrity, securing outdoor elements, and ensuring backup power systems (if available) are functional. Communication with tenants about emergency procedures and potential service interruptions is crucial. Long-term implications could include increased insurance claims and repair costs.

Tourism Operators (tourism-operator)

Hotels, tour companies, and vacation rental businesses are at high risk of cancellations and operational disruptions. Power outages can disable essential services like air conditioning, elevators, and check-in systems. Damage to properties, transportation disruptions, and safety concerns could deter visitors. Operators should review cancellation policies, ensure communication channels remain open, and prepare for potential guest assistance needs.

Agriculture & Food Producers (agriculture)

Farmers, ranchers, and food producers face significant threats to crops, livestock, and processing facilities. Heavy rains can cause flooding and crop damage, while high winds can destroy crops and damage farm structures. Loss of power can lead to spoilage in cold storage and affect irrigation systems. Disrupted transportation networks can impede harvesting and distribution, leading to significant financial losses. Securing equipment and planning for water management are critical.

Healthcare Providers (healthcare)

Clinics, private practices, and medical facilities must prioritize patient safety and continuity of care. Backup generators are essential for life-support equipment and critical medical systems. Communication systems must remain operational for emergency calls and coordination with other healthcare facilities. Telehealth providers should ensure robust backup power and internet connectivity to maintain service delivery.

Second-Order Effects

Given Hawaiʻi's isolated and interconnected economy, a widespread power outage triggered by a storm can have cascading effects. A prolonged disruption to the electricity grid (HECO's infrastructure) would not only halt business operations but also impact essential services like water treatment and communication networks. This could lead to shortages of critical supplies, as transportation and retail logistics break down. For the tourism sector, even minor disruptions can lead to significant reputational damage and booking cancellations, affecting revenue for weeks or months. For small businesses, the inability to operate can deplete cash reserves, potentially leading to closures and job losses, which in turn reduces local consumer spending, impacting other businesses.

What to Do

Small Business Operators

Act Now: By Saturday morning, complete the following actions:

  1. Activate Emergency Plans: Review your business's emergency preparedness plan. Ensure all staff are aware of their roles and responsibilities.
  2. Secure Supplies: Stock non-perishable food, potable water, first-aid supplies, and flashlights/batteries. For businesses with critical equipment, ensure backup power sources are tested and fueled.
  3. Protect Assets: Secure outdoor furniture, signage, and any loose items that could become projectiles. Back up critical data from computers.
  4. Communicate: Inform staff about potential operational changes and safety protocols. Notify key suppliers and customers about potential service disruptions.

Real Estate Owners

Act Now: By Saturday morning, complete the following actions:

  1. Inspect Properties: Conduct a visual inspection of buildings and grounds. Secure loose items and trim trees near structures.
  2. Tenant Communication: Distribute emergency preparedness guidelines to tenants and inform them about building-specific emergency procedures.
  3. Backup Systems: Verify the functionality of any backup generators for common areas or critical building systems.

Tourism Operators

Act Now: By Saturday morning, complete the following actions:

  1. Review Contingency Plans: Update and communicate emergency plans to staff. This includes guest safety, evacuation procedures, and communication protocols.
  2. Pre-Cancelations/Bookings: Contact guests with upcoming reservations to inform them of potential impacts and review cancellation/rebooking policies.
  3. Secure Property: Ensure all outdoor amenities, furniture, and signage are secured to prevent damage.
  4. Supply Stocking: Ensure hotels have adequate supplies of water, non-perishable food, and power banks for guests and staff.

Agriculture & Food Producers

Act Now: By Saturday morning, complete the following actions:

  1. Secure Livestock & Crops: Move livestock to safe, sheltered areas. Secure or harvest vulnerable crops if possible.
  2. Check Infrastructure: Ensure irrigation systems, pumps, and generators are operational and have sufficient fuel.
  3. Protect Perishables: Maximize use of cold storage and ensure backup power is ready for refrigeration units.
  4. Communication: Coordinate with suppliers and distributors regarding potential disruptions to the supply chain.

Healthcare Providers

Act Now: By Saturday morning, complete the following actions:

  1. Verify Backup Power: Conduct a thorough test of all backup generators and ensure sufficient fuel reserves for critical medical equipment and life support systems.
  2. Communication Systems: Confirm the reliability of emergency communication lines, including phones and internet, and have backup options available.
  3. Staffing Plan: Ensure staffing schedules account for potential travel disruptions and have contingency plans for essential personnel.
  4. Patient Communication: Inform patients about potential appointment cancellations or delays and provide guidance on emergency care access.

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