The recovery from Katrina and Rita ushers in a very new era of Disaster Recovery and Prevention. Governments and folks are rethinking their response to disasters and the steps they will take to forestall or minimize the worst consequences. The largest catalyst for this new era is that the political fall-out from Katrina.
The slow response to Katrina was a black eye for the Bush administration. For Michael Brown, the ex-head of FEMA, it was a national humiliation. The fates of Louisiana governor Kathleen Blanco and New Orleans mayor Ray Nagin remain to be seen, however reports have seen their failures in prevention and response, and that will come into play at election time.
President Bush needs to make up for the bungled response (and restore some political capital)and has earmarked a recovery effort which will total $two hundred billion dollars. The early response to Katrina has become a cautionary tale for politicians and bureaucrats in federal, state and native governments, and you'll be positive they can be pushing for more disaster prevention spending in their own explicit fiefdoms. And the media is keeping watch-newspapers in California have been crammed with stories warning about the dearth of disaster (particularly earthquake) preparation within the state.
The Army Corp of Engineers, burned by the dearth of follow-through on their recommendation to raise the New Orleans levees, is currently wanting to repair vulnerable areas round the country. And that they’re not the sole ones.
New homes have multiplied along vulnerable coastal areas. From Florida to the Outer Banks up to The Hamptons and all throughout the east coast, coastal property values have soared. Dune Road, a sliver of land with dear homes between the ocean and a bay in Westhampton, New York, was nearly exhausted by flooding very little a lot of than a decade ago. Now it's been rebuilt with even pricier multi-million dollar homes. You'll be sure these owners can spend what it takes to protect their properties.
And they'll would like to as a result of it looks like huge storms are brewing. If several meteorologists are correct, we have a tendency to may have entered a cycle of skyrocketing frequency and severity of hurricanes.
Combine the measures slated for homeland security, rebuilding the Gulf coast and the ramp-up of disaster prevention around the country and you have a near permanent state of disaster recovery and prevention.
For some companies, let’s call them Hurricane stocks, the chance to require part within the Gulf recovery means a great deal of more business in the short term. For others, it could mean more business for many years to come.
Hurricane stocks are companies that are required right now. For example, the immediate want to assist those whose homes are destroyed or are inhabitable. Assume of corporations that offer temporary living and survival gear. Assume of Coleman camping merchandise, like tents, sleeping luggage, transportable stoves, flashlights. Coleman is owned by Jarden (JAH:NYSE).
Manufactured homes have return an extended approach in the past decade, and will encourage be a sensible temporary resolution for several and a permanent solution for others in the Gulf. Cavalier Homes (AMEX:CAV) has been contracted to make and deliver manufactured homes to the Federal Emergency Management Agency to deal with Gulf Coast residents displaced by Hurricane Katrina. The contract is expected to come up with $58 million to $63 million in revenue for the company.
Another companies in this sector embody Champion (NYSE:CHB), which partners with nearly 3,000 independent retailers, builders and developers, Fleetwood Enterprises (NYSE: FLE) and Coachmen Industries Inc. (NYSE:COA).
Oil and gas facilities in the Gulf coast additionally need emergency repair. The economy of the Gulf Coast and, to an extent, the economy of the U.S. depends on it. A variety of drilling rigs were damaged in the storms, which means that that a company like ENSCO (NTSE:ESV) which owns drilling rigs in the area, can be in massive demand. Oceaneering International (NYSE: OII), which inspects and repairs underwater infrastructure of oil facilities, will be busy, as can Jacobs Engineering (NYSE:JEC), providing engineering and construction services to grease and gas companies.
Rebuilding the Gulf Coast
Rebuilding will include the massive dogs in construction, like Halliburton (NYSE:HAL), The Shaw Group(SGR) and Caterpillar (NYSE:CAT). However several smaller companies can additionally take part, typically as subcontractors. The Army Corp of Engineers has increased its task order from $ten million to $20 for Aduddell Roofing, a subsidiary of Zenex International, Inc. (OTCBB:ZENX). National Storm Management (NLST:PK), an expanding national construction company specializing in storm restoration management, can additionally do a good deal of restoration work in the Gulf Coast.
To create you wish building materials. Home retailers like Home Depot and Lowe’s will be seeing their orders increase, however thus can corporations that give raw materials like timber. Have a look at Rayonier (NYSE:RYN)and Plum Creek Timber (NYSE:PCL), two REITs that own and manage timber properties.
Some Hurricane and rebuilding stocks have already jumped and retreated. But the purpose to recollect is that whereas the hurricanes resulted in a direct would like to assist those in dire would like, they additionally ushered in a very new era, an era when governments and folks within the U.S. and around the globe apprehend they'll do more to live through disasters and minimize the consequences. Thus keep an eye on corporations that can be at the center of the Disaster and Prevention theme for years to come.
Author Resource:
William Evan has been writing articles online for nearly 2 years now. Not only does this author specialize in Continuity Disaster Recovery, you can also check out his latest website about:
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