The U.S. Chamber of Commerce Foundation, Allstate, and the U.S. Chamber of Commerce hosted a virtual event during National Preparedness Month to discuss "The Preparedness Payoff." This study highlights the economic benefits of investing in climate resilience as billion-dollar disasters become the new normal.
Key Takeaways
- Preparedness is an investment with significant economic returns. Every dollar invested in preparedness can save communities $13 in economic impact, damages, and cleanup costs.
- Economic benefits extend beyond damage reduction to include preserved economic activity. While $6 of the $13 saved comes from reduced damages, $7 represents preserved jobs, income, and economic output.
- Cross-sector collaboration is needed for building community resilience. Effective strategies involve partnerships between government agencies, businesses, non-profits, and community groups.
- Proactive measures lead to significant improvements in preparedness and recovery. Communities investing in infrastructure upgrades, early warning systems, and emergency response plans are better positioned to withstand disasters.
The Economic Impact of Preparedness
With weather-related catastrophes increasing in frequency and severity nationwide, from wildfires to storm surges, preparedness investments are more necessary than ever.
The research examined 25 unique disaster scenarios across various locations and sizes, providing a comprehensive view of preparedness investments' economic impact.
Investing in Resilience: Communities Leading the Way
In communities across the U.S., the call to action has already been heard, with investments in preparedness proving that it does indeed pay off. The conversation highlighted several real-world examples of successful preparedness investments:
- Miami-Dade County, Florida: Elevated homes and improved drainage systems, significantly reducing flood damages during hurricanes.
- Joplin, Missouri: Implemented stronger building codes and community shelters after a 2011 tornado, enhancing resilience to future events.
- New York City: Invested in coastal defenses and improved emergency response systems post-Hurricane Sandy, protecting critical infrastructure.
- San Francisco, California: Conducted seismic retrofitting of buildings and infrastructure, reducing potential earthquake damage.
A Multi-Stakeholder Approach
The webinar emphasized the importance of collaboration across sectors to build resilience:
Speakers emphasized the importance of communities engaging with local chambers of commerce, government agencies, businesses, and community organizations to bolster preparedness efforts.
5 Steps Towards Preparedness
- Assess vulnerabilities. Identify potential risks specific to your location and sector. Prioritize areas for investment based on your assessment
- Develop comprehensive preparedness plans. Create evacuation and continuity plans. Ensure stakeholders are trained and aware of procedures. Resources such as our Readiness for Resiliency Program outline steps to create a disaster plan and $5,000 grants if a disaster hits your area.
- Invest in resilience measures. Upgrade infrastructure to withstand potential disasters. Implement robust emergency response systems.
- Foster community engagement. Participate in local resilience initiatives. Collaborate across sectors on preparedness efforts.
- Leverage available resources. Explore grants and resources for community and business preparedness. Consider tools like our Resilience in a Box, which provides best practices on preparing your business for unexpected events.
As we face increasing climate-related challenges, the economic case for preparedness has never been clearer. By taking action now, communities and businesses can not only protect themselves but also contribute to overall economic stability and resilience.
The Preparedness Payoff: The Economic Benefits of Investing in Climate Resilience
About the authors
Sydney Lewis
Sydney Lewis is associate communications manager for education, workforce, resilience, and thought leadership at the U.S. Chamber of Commerce Foundation.
