Hurricane Sandy Disaster Impact Report

November 2012

1. Federal Emergency Management Agency (http://www.fema.gov/blog/2012-11-05/hurricane-sandy-recovery-efforts), Nov. 5, 2012.

Preliminary Business Impact Analysis for New York, New Jersey, and Connecticut

In October 2012, Hurricane Sandy ravaged the

Atlantic coast with record flooding and winds.

The storm’s devastation left 8 million people without

power, thousands of flights cancelled, businesses shut

down for days, and billions of dollars in damage.1

Among the 12 states affected, 19 counties in New York,

New Jersey, and Connecticut were particularly hard hit.

Dun & Bradstreet, the world’s leader in business

information and commercial insight, has prepared a

preliminary analysis of the potential business impact

of the storm in the tri-state region.

Analysis MethodologyD&B reviewed its database of more than 200 million

businesses to conduct this preliminary analysis. Key

highlights include the storm’s impact on the number

of businesses and employees.

Business ImpactHurricane Sandy potentially affected some 1.5 million

businesses located across 19 counties in the tri-state

region. These businesses employ 9.3 million individuals,

all of whom were vulnerable to the effects of the storm.

All told, these businesses represent nearly 1,000 different

industries. Sixty-two percent of the region’s businesses

are located in New York, 22 percent in New Jersey, and

16 percent in Connecticut.

Areas hit hardest by Hurricane Sandy in the 19 counties

are home to a high concentration of small businesses,

defined as those with less than 10 employees. Roughly

73 percent – or 1.1 million companies – are classified as

small businesses. In New York, 72 percent of businesses

qualify as small businesses, while 73 percent in New

Jersey and Connecticut are considered small.

Potential Impact on JobsOf the 9.3 million employees working in the 19-county

impact zone, 5.7 million are located in New York,

constituting 61 percent of all employees in Sandy’s

tri-state impact zone. New Jersey is home to 2.2

million employees, while 1.4 Connecticut employees

are potentially affected.

Potential Impact on IndustriesRetail, Finance, Transportation, Manufacturing, and

Other Services constitute the top five industries across

the 19 counties impacted in the tri-state region, based

on number of employees. These five industries employ

over 7.6 million people who are potentially impacted

by Hurricane Sandy. In addition, with about a third of

all businesses in the impact zone being in retail, lengthy

power outages would likely have a higher impact on

these businesses.

Likelihood of Businesses to Have Severe Financial DifficultiesAmong the businesses potentially impacted by the

storm, some 812,000 businesses in New York, New Jersey,

and Connecticut were struggling financially before

Hurricane Sandy made landfall, indicating that post-

storm recovery would be increasingly difficult. D&B’s

Financial Stress Score forecasts the likelihood of a

business ceasing operations within the next 12 months.

Since most businesses are considered small, with fewer

than 10 employees, the majority of businesses facing

severe financial difficulties in Sandy’s aftermath are also

likely to be small businesses.

In conclusion, Hurricane Sandy will produce a difficult

recovery for many of the businesses located in the

19-county impact zone in New York, New Jersey, and

Connecticut. All told, more than 1 million businesses

and nearly 10 million workers fall inside that zone –

with roughly 73 percent of these businesses classified

as small businesses with less than 10 employees. Many

of these businesses were financially struggling prior to

the storm, making it even more difficult to recover.

Dun & Bradstreet is the world’s leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence® for over 170 years. D&B’s global commercial database contains more than 210 million business records, enhanced by our proprietary DUNSRight® Quality Process, providing our customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions.

© Dun & Bradstreet, Inc. 2012. All rights reserved. (DB-3375 11/12)