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Governor Warns of $1B in Storm Damages, Heightened Infrastructure Risk

·4 min read·👀 Watch

Executive Summary

Governor Josh Green has declared severe weather risks, estimating over $1 billion in statewide damages and emphasizing ongoing threats to critical infrastructure. Businesses, especially those in vulnerable sectors, must increase vigilance and operational preparedness due to potential supply chain disruptions and service interruptions.

  • Small Business Operators: Expect potential disruptions to operations, staffing, and supply chains.
  • Real Estate Owners: Monitor property integrity and potential insurance claim complexities.
  • Tourism Operators: Prepare for possible flight cancellations and visitor impact.
  • Agriculture & Food Producers: Assess crop and infrastructure vulnerability to ongoing weather events.
  • Investors: Factor increased risk into portfolio assessments for Hawaii-based assets.
  • Action: Implement or review emergency preparedness plans.

Watch & Prepare

High PriorityOngoing

Critical infrastructure may be compromised, supply chains disrupted, and businesses may need to enact contingency plans to mitigate further risks or address immediate operational impacts from the severe weather.

Monitor official weather advisories from the National Weather Service (NWS) and Hawaii Emergency Management Agency (HI-EMA). Review and, if necessary, update your business's emergency preparedness and business continuity plans, focusing on data backup, supply chain resilience, and communication protocols with staff and clients. If your business is in a flood or storm surge-prone area, consider enhanced physical protective measures. Watch for news on infrastructure repair timelines; significant delays could indicate prolonged operational challenges.

Who's Affected
Small Business OperatorsReal Estate OwnersTourism OperatorsAgriculture & Food ProducersInvestors
Ripple Effects
  • →Increased storm damages → prolonged infrastructure repair needs → diversion of public funds & slower development permits → exacerbated housing shortages → increased labor costs for businesses
  • →Supply chain disruptions from weather events → increased cost of goods → compressed business margins & higher consumer prices
  • →Repeated severe weather events → increased insurance premiums & property risk assessments → potentially higher borrowing costs for real estate investors
  • →Disruption to tourism infrastructure → reduced visitor numbers → decreased revenue for hospitality sector → potential impact on state tax revenues
Dramatic aerial shot of tornado aftermath in Chattanooga, Tennessee neighborhood.
Photo by Kelly

Governor Warns of $1B in Storm Damages, Heightened Infrastructure Risk

Governor Josh Green has officially communicated a significant increase in weather-related risks to Hawaii, citing an estimated $1 billion in damages due to recent "Kona Low" storm systems. This warning underscores a heightened threat environment that could cascade into operational challenges and financial strain for businesses across the islands. The ongoing nature of such severe weather events necessitates immediate review of business continuity and emergency response strategies.

The Change

On Friday, March 20, Governor Green highlighted the substantial economic impact of recent storm activity, estimating damages at upwards of $1 billion statewide. He also emphasized that the threat from "Kona Low" systems is persistent, indicating that businesses should anticipate future disruptions. The current warning serves as an alert to prepare for potential impacts on critical infrastructure, supply chains, and daily operations.

Who's Affected

  • Small Business Operators (small-operator): Businesses reliant on consistent power, internet, and physical access may face direct damage or prolonged service interruptions. Supply chain disruptions could lead to inventory shortages and increased costs for goods. Staffing can be impacted by employee safety concerns or localized flooding impacting commute routes. Permit timelines for repairs or rebuilding could be delayed due to increased demand on county services.

  • Real Estate Owners (real-estate): Coastal and low-lying properties face increased risk of flood damage and erosion. Commercial and residential property owners should review insurance policies for adequacy against extreme weather events. Developers may encounter project delays and increased material costs due to damaged infrastructure and potential supply chain issues.

  • Tourism Operators (tourism-operator): Airlines may experience cancellations or delays due to hazardous weather, impacting visitor arrivals and departures. Hotels and tour companies must be prepared to manage guest cancellations, rebookings, and potential on-site damage. Communication channels with visitors about travel advisories and operational status are critical.

  • Agriculture & Food Producers (agriculture): Farms and ranches, particularly those in vulnerable locations, are at risk of crop loss, livestock endangerment, and damage to irrigation systems or farm infrastructure. Access to fields and export logistics for perishable goods can be severely curtailed by road closures and port disruptions.

  • Investors (investor): Investors with portfolios in Hawaii should anticipate potential short-term market volatility and increased operational costs for portfolio companies. Sectors directly impacted by weather (e.g., agriculture, tourism, coastal real estate) may see reduced valuations or higher risk premiums. The long-term economic impact of repeated severe weather events could influence investment strategies.

Second-Order Effects

Increased storm damages and infrastructure strain can lead to longer-term economic challenges. For instance, significant repairs to critical infrastructure like roads or power grids could divert public funds and slow down development permits. This could exacerbate existing housing shortages, further pressuring labor markets and increasing operating costs for businesses across all sectors as wages rise to attract and retain staff. Additionally, persistent supply chain disruptions from damaged ports or logistics routes will drive up the cost of goods, impacting margins for businesses and the cost of living for residents.

What to Do

Given the governor's warning, businesses should prioritize operational resilience and risk mitigation. This is not a time for complacency; proactive measures can prevent significant losses.

  • Small Business Operators: Review and update your business continuity and disaster recovery plans. Ensure all critical data is backed up offsite or in the cloud. Verify insurance coverage for storm damage and business interruption. Communicate with key suppliers to understand their own contingency plans.

  • Real Estate Owners: Conduct property assessments for vulnerability to wind, water, and erosion. Ensure gutters and drainage systems are clear. Review insurance policies for flood and wind coverage and understand claim procedures. For rental properties, establish clear communication protocols with tenants regarding safety and emergency procedures.

  • Tourism Operators: Monitor weather forecasts and airline advisories closely. Update your website and social media channels with real-time operational status and advisories for guests. Train staff on emergency procedures and guest communication protocols. Review cancellation and rebooking policies.

  • Agriculture & Food Producers: Inspect farm infrastructure, irrigation systems, and fences for potential weaknesses. Secure or move livestock to higher ground if necessary. Protect crops with appropriate measures if significant rainfall or wind is imminent. Assess access routes to fields and transport options for produce.

  • Investors: Review the risk exposure of your Hawaii-based assets and portfolio companies related to storm damage and operational continuity. Assess the financial health of companies in sectors vulnerable to severe weather.