The 2024 Atlantic hurricane season officially kicks off this weekend, running from June 1st to November 30th. For those of us in Texas, the peak months are typically August and September. Now is the time to take proactive measures to protect your business operations and ensure continuity.
Forecasters at NOAA's Climate Prediction Center are anticipating an above-average season. The outlook for the 2024 Atlantic hurricane season predicts an 85% chance of above-normal activity, a 10% chance of a near-normal season, and a 5% chance of a below-normal season.
NOAA expects between 17 and 25 named storms (winds of 39 mph or higher), with 8 to 13 of these potentially becoming hurricanes (winds of 74 mph or higher). Among these, 4 to 7 are projected to reach major hurricane status (Category 3, 4, or 5, with winds of 111 mph or higher). These predictions come with a 70% confidence level. Similarly, Colorado State University foresees a very active hurricane season, predicting 23 named storms, 11 hurricanes, and 5 major hurricanes.
The anticipated increase in hurricane activity is driven by several factors, including near-record ocean temperatures in the Atlantic, La Niña conditions in the Pacific, weaker Atlantic trade winds, and reduced wind shear, all of which favor the formation of tropical storms.
For reference, the average hurricane season from 1991-2020 saw 14.4 named storms and 7.2 hurricanes, with 3.2 of those hurricanes labeled as major hurricanes, making the 2024 predictions well above recent norms.
To bring this out to a wider perspective, Colorado State University goes further, predicting 115 named storm days (vs 69.4 days on average). They predict 45 hurricane days (vs 27 days on average) and 13 major hurricane days (vs 7.4 days on average). While not all of these “days” will be impact and aftermath type days, of course, it’s important to consider the potential for longer-duration effects.
Preparing Your Business for Hurricane Season
Historically, the impacts of hurricanes on businesses have been severe, with small businesses often bearing the brunt due to limited resources and contingency plans. After Hurricane Harvey in 2017, nearly 50% of businesses in the Lake Houston area alone suffered damages. Moreover, the Federal Emergency Management Agency (FEMA) reports that 40% of small businesses that close due to natural disasters never reopen, and even among those that do, 67% fail to remain operational after two years.
Hurricanes can have ripple effects well beyond just the direct path, impacting small businesses through disrupted transportation and supply chains, labor shortages if employees are displaced, and broader economic impacts in affected regions. With fewer financial reserves and less robust preparedness plans, small businesses are particularly vulnerable to the operational disruptions, revenue losses, and financial strain resulting from hurricane damages, power outages, and other cascading consequences.
The costs of inadequate preparedness can be far-reaching, including:
- Lost revenue and productivity: When businesses are forced to halt operations, they lose the ability to generate revenue and maintain productivity. This is true whether your business provides goods or services.
- Negative brand reputation: Customers may question a business's overall reliability if it fails to handle natural disasters effectively.
- Employee morale: Employees bear the brunt of the extra workload, as well as the stress of recovery efforts. This can damage morale and impact their view of management.
- Competitive disadvantage: If competitors remain operational while a business is down, you risk losing customers who need immediate solutions.
Consider whether your business can function without access to computers, critical equipment, utilities, or communication systems. If your operations were interrupted for 1-2 days or more, what financial losses would you face? To mitigate these risks, a comprehensive natural disaster recovery and business continuity plan is essential. This plan should address critical aspects such as:
- Securing backup power sources, data storage, and essential equipment
- Establishing remote work capabilities and communication channels
- Developing contingency plans for supply chain disruptions
- Implementing employee safety protocols and emergency response procedures
Failing to plan for natural disasters can have severe short-term and long-term repercussions. By proactively addressing these areas, businesses can enhance their resilience and minimize the impact of hurricanes on their operations, preserving their revenue streams, customer base, and reputation.
Remember, preparation is key. Don't wait until it's too late. Take action now to safeguard your business against the potential threats of the 2024 Atlantic Hurricane season. Download our free Natural Disaster Survival Guide for Businesses to learn more and click here to schedule a 15-minute consultation with us to find out if your business is ready for the next storm.
