From Fortune magazine: How much do natural disasters really cost corporate America? Sales growth of supplier firms directly hit by a natural disaster drops by around five percentage points, according to a study. Some details:
So the key question is: When a shock — like a natural disaster or financial crisis — hits a supplier, what really happens to the firms in that network? Is there a spillover effects? To address this issues, we studied the transmission of shock caused by natural disasters in the past 30 years in the U.S. within the supply chain of publicly traded firms. We analyzed a sample of 2000 large corporations and 4000 of their suppliers.