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Maui Businesses Face Increased Risk of Operational Disruption from Recurring Storms

·7 min read·👀 Watch

Executive Summary

Recent severe inundation events on Maui highlight an increased risk of recurring storm impacts, necessitating updated business continuity plans for operators. Without proactive measures, businesses should anticipate heightened potential for supply chain delays, utility outages, and access disruptions, particularly during storm seasons. Other roles should review their risk mitigation strategies.

Watch & Prepare

High Priority

The recurrence of storms can lead to unexpected disruptions in supply chains, utilities, and access to business locations if preparedness plans are not updated.

Monitor local emergency management advisories for storm forecasts and flood advisories. If a significant storm or flood event is predicted (Category 1 hurricane or 100-year flood advisory), immediately implement your updated business continuity plan, including activating emergency communication protocols and securing assets.

Who's Affected
Small Business OperatorsReal Estate OwnersTourism OperatorsAgriculture & Food Producers
Ripple Effects
  • →Increased frequency of storm events and subsequent infrastructure repair needs → higher county and state infrastructure spending → potential for increased taxes or user fees impacting business operating costs.
  • →Supply chain disruptions experienced by businesses → upward pressure on local prices for goods and services → increased cost of living for employees → potential for wage increase demands.
  • →Damage to coastal properties and infrastructure → reduced tourism appeal in affected areas → potential decline in visitor numbers → broader economic slowdown affecting multiple sectors.
Dramatic storm clouds over palm trees in Hawaii, capturing the essence of a tropical landscape.
Photo by Jim Clark

Maui Businesses Face Increased Risk of Operational Disruption from Recurring Storms

Maui's recent experience with severe inundation, which transformed South Kihei Road into a "raging river," signals a growing vulnerability to weather-related disruptions. This event is not an isolated incident but rather an indicator of increasing climate-related risks that demand immediate attention from businesses across the island. The operational and logistical challenges faced by businesses during and immediately after the inundation serve as a critical case study for future preparedness.

While the immediate cleanup and recovery efforts are underway, the underlying causes, potentially linked to changing weather patterns and increased rainfall intensity, suggest that similar events could become more frequent. This forces businesses to move beyond reactive measures and adopt proactive strategies to safeguard operations, supply chains, and employee well-being.

Who's Affected

  • Small Business Operators: Retail shops, restaurants, and service providers on Maui, especially those in low-lying or coastal areas, face increased risks of physical damage, prolonged business interruption due to road closures and utility outages, and potential loss of inventory. The recent event underscores the need for robust business interruption insurance and up-to-date emergency communication plans. Supply chain disruptions could lead to increased operating costs for essential goods.
  • Real Estate Owners: Property owners and managers must contend with potential damage to structures, increased maintenance costs due to wear and tear from storm events, and the need for potential infrastructure upgrades (e.g., drainage, flood barriers). Rental income could be impacted by prolonged vacancies or tenant displacement. Developers may face delays and increased costs for projects in flood-prone zones.
  • Tourism Operators: Hotels, vacation rentals, tour companies, and associated hospitality businesses are highly susceptible to disruptions. Inundation events can lead to cancellations, detours impacting tour routes, and potential damage to properties, affecting visitor experience and revenue. Reduced accessibility due to damaged infrastructure can deter tourists, impacting booking rates and airline capacity considerations.
  • Agriculture & Food Producers: Farmers and food producers in affected regions face risks of crop damage, soil erosion, and contamination of water sources. Disruption to transportation routes can impede the delivery of produce to local markets and export, impacting yield and profitability. Livestock may also be at risk.

Second-Order Effects

  • Increased frequency of storm events and subsequent infrastructure repair needs → higher county and state infrastructure spending → potential for increased taxes or user fees impacting business operating costs.
  • Supply chain disruptions experienced by businesses → upward pressure on local prices for goods and services → increased cost of living for employees → potential for wage increase demands.
  • Damage to coastal properties and infrastructure → reduced tourism appeal in affected areas → potential decline in visitor numbers → broader economic slowdown affecting multiple sectors.

What to Do

Businesses on Maui, and by extension across Hawaii, should view the recent inundation as a critical signal to reassess and enhance their preparedness for future extreme weather events. The recurring nature of such storms, exacerbated by climate change, necessitates a shift towards proactive adaptation and resilience.

For Small Business Operators: Review and update your business continuity plan to include specific protocols for inundation and storm-related disruptions. Ensure adequate insurance coverage, particularly for business interruption, and verify its scope regarding extreme weather events. Establish redundant communication channels with employees and key suppliers.

For Real Estate Owners: Conduct a property-level risk assessment for flood and storm damage. Investigate cost-effective mitigation measures such as improved drainage, waterproofing, and secure storage for valuable assets. Examine lease agreements for clauses related to force majeure and tenant responsibilities during emergencies.

For Tourism Operators: Update your customer communication strategy for weather-related disruptions, including clear cancellation and rebooking policies. Collaborate with local authorities on evacuation and access route planning to ensure guest safety and operational continuity. Diversify offerings or locations if feasible to reduce reliance on single, vulnerable points of operation.

For Agriculture & Food Producers: Assess water management systems for resilience against both drought and heavy rainfall. Investigate weather-resistant crop varieties and protective measures for fields and livestock. Strengthen relationships with alternative transportation providers and consider on-site food storage solutions.

Monitor: Local emergency management agency (e.g., Maui Emergency Management Agency) advisories and general climate trend reports from organizations like the National Oceanic and Atmospheric Administration.

Trigger: A forecast predicting a Category 1 or higher hurricane, or a 100-year flood event advisory for your specific operational area.

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