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Nov 09
2005

Katrina Will Herald a Major Change

Posted by: Steve Marr

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The destruction caused by Hurricane Katrina, creating destruction zone the size of Iowa, Through Louisiana, Mississippi and Alabama will cause a fundamental long tern change for the region and society.

First, there is a lot of understandable talk that New Orleans will be rebuilt bigger and better then ever. Cities grow, and populations increased based on economic development. New Orleans has a strong base of trade based on international shipping, the energy business and the petrochemical business. The shipping channels will be cleared in a short time and the docks will be repaired putting people back to work.While the oil and petrochemical industry suffered damage, the repair cost is far less then relocating the facilities so these facilities will reopen, returning jobs to workers.

The French quarter will likely be repaired and ounce again become a destination for tourists. However, the reality is that much of the city will not likely ever return. First, many of the smaller industries and companies that supply many jobs will close forever. History demonstrates that over 50% of business that suffer a disastrous fire, flood or wind storm never reopen. In hurricane ravaged arrears this number will be much higher because of the loss of local infrastructure and customers. 


Part of the Gulf coast leveled in Mississippi and Alabama will comeback because like Florida, people want to live by the water and will make the choice to rebuild.

During the 1800's fires burned through towns and cities across America.Some, like Chicago rebuilt because the economic situation supported rebuilding. However, many towns burned down never rebuilt, or rebuilt on a much smaller scale. When a disaster takes out a large area,marginal business and homes disappear never to return. 


In New Orleans, many of the residential neighborhoods will be changed, or eliminated. 

 

Steve Marr, Your christian Business Coach

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