How a Natural Disaster Could Stimulate the Construction Industry

Nov 14, 2012 No Comments by

Hurricanes, tropical storms, and tornados are natural disasters that can have cataclysmic consequences for homeowners. For those who lose some, most, or even all of their possessions and property in a natural disaster, trying to find anything positive amid the ruin can be impossible. But as profoundly unfortunate as these events can be on individuals, they can by necessity spur economic growth in specific industries. Construction may be one of these industries.


Natural disasters have the potential to destroy roads, bridges, and public transportation equipment and facilities, in addition to residential and commercial property. The aftermath of such a disaster often shines a light on the need for highly skilled construction workers. Rebuilding the infrastructure and public works of a damaged area can revitalize the economy by way of needed job creation. Obviously, thinking about a natural disaster as an economic asset is troubling but it also cannot be disputed.


In addition to the direct economic growth impact on construction, retail giants that cater to home improvement and rebuilding can also feel the positive affect. The businesses that supply the tools needed to successfully rebuild after a natural disaster will see a rise in sales. This boon to retail will ultimately translate into jobs in order for businesses to keep up with consumer demand.


Clearly, looking for the silver lining after an unspeakable natural disaster may seem impossible. But the economy does not discriminate between good and bad events. It responds to the laws of supply and demand. After a natural disaster, construction jobs for rebuilding projects are always at a premium. This strengthens communities, infrastructure, and stimulates economic growth.

Construction, Contractor, Natural Disaster

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