The 2020 Mid-Year Economic Update_long

The Impact of Superstorm Sandy on the U.S. Economy

One of the biggest impacts is to the oil refining industry.
Angela

Superstorm Sandy’s negative impact on the U.S. economy could be as much as 0.6 percentage points to Real GDP in the fourth quarter, according to Greg Daco, senior principal U.S. economist for IHS Global Insight. Daco spoke on a panel of economists assembled by the National Association for Business Economics on the economic implications of the storm, which ravaged much of the Northeast.

\"TheDownload a Free Chapter:
The Little Black Book of Strategic Planning for Distributors

Submit your email address below to receive a chapter of Brent Grover’s new book. When you submit your email you will be signed up to receive weekly distribution news updates.

\"\"

Daco estimated total economic losses of $30 billion-$50 billion in the area coming from total infrastructure losses and disruption to business activity.

One of the hardest-hit industries has been oil refining. About 70 percent of refining capacity in the Northeast was idled during the storm and the days following the storm. To that end, Reuters reported Monday that oil company Hess Corp. was still unsure last week when their 70,000 barrel per day refinery in Port Reading, NJ, might come back online, and the 238,000 barrel-per-day plant owned by Phillips 66 in Bayway, NJ, will likely be shut down for another two to three weeks.

Regional production slowdowns in most industries, though, may be offset by several factors. One is that some production backlogs can be reversed as systems come back online. Charlie Steindel, chief economist for the New Jersey Department of the Treasury, seems confident that short-term losses will be much less visible in the long-term. “In the industrial economy and in manufacturing plants, the experience of the past has been storms shut down activity for a while, then extra shifts are run and things are made up,” he says.

Reconstruction and repair efforts will also offset some of the loss. Daco makes clear, though, that rebuilding takes time, especially considering the upcoming cold weather that will make repairs more difficult.

Access the full program on the impact of Superstorm Sandy from the NABE here.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.