Businesses generally plan for the normal annual peaks and valleys of business cycles. But what happens when unpredictable weather and other events disrupt these cycles?
Every year, weather events from winter storms to hurricanes have an outsized impact on U.S. businesses but the size of that impact is difficult to measure. The U.S. Census Bureau’s new Business Trends and Outlook Survey (BTOS) addresses this challenge by collecting data on the monetary impact of weather.
The Midwest and parts of the South were particularly affected. For example, 31.3% of businesses in Tennessee and 28% of businesses in Arkansas experienced monetary loss due to extreme weather for the period ending February 11, 2024.
In September 2023, the BTOS began asking businesses nationwide: “In the last six months, did this business experience any monetary losses due to an extreme weather event (for example, hurricane, flood, drought, or heat wave)?”
Since then, the survey has measured the impact of key severe weather events. The most recent were Hurricane Beryl in Houston and severe winter weather across the United States in 2024.
Hurricane Beryl’s Impact on Businesses
On July 8, Hurricane Beryl made landfall in Houston. It caused mass devastation, including deaths, power outages and debris across the Houston metropolitan and outlying areas.
BTOS data collected July 1 to July 14 show that 25.4% of businesses in the Houston Metropolitan Statistical Area (MSA) reported weather-related monetary loss. It jumped to 56.4% two weeks later, according to the July 15 to July 28 survey.
The visual below displays the magnitude of the devastation on business. The map on the left shows that many of the hardest hit areas that received both individual and public assistance from Federal Emergency Management Agency (FEMA) were in the Houston Metropolitan Statistical Area (MSA).
The figure on the right shows the impact of the hurricane on Houston and the state of Texas compared to the national average. The share of Houston businesses that reported monetary loss due to extreme weather more than doubled from one collection period to the next. The impact was even felt statewide: the share of Texas businesses that reported a loss because of the hurricane nearly doubled.
Winter Storms’ Impact on Businesses
Cold fronts and severe storms swept across much of the country during the winter months of 2024.
The animation below shows a clear pattern of monetary loss in late January and throughout February. The darker the blue on the map, the more businesses reporting weather-related lost revenue in the last six months.
Starting with data collected between November 20, 2023, and December 3, 2023, many states were in the lighter blue. As data came in for late January and February, many shifted to darker shades of blue.
The Midwest and parts of the South were particularly affected. For example, 31.3% of businesses in Tennessee and 28% of businesses in Arkansas experienced monetary loss due to extreme weather for the period ending February 11, 2024.
States outside of those regions also felt the impact as 40% of businesses in Oregon indicated monetary loss for the same period.
The Census Bureau plans to add a question to the BTOS in November that asks respondents to specify the extreme weather event (wildfires, earthquakes, hurricanes, tornados, snow or ice storms) that affected their business in the past six months.
Impact of Extreme Weather on Businesses
The damage weather can have on individuals is well documented, but businesses may also face a long road to recovery after a severe weather event.
Understanding the size and location of the impact of weather on businesses can help policy and other decision makers ensure recovery efforts to address the needs of businesses and BTOS is an important part of this effort.