Businesses in and around Augusta continue to grapple with the devastation caused by Hurricane Helene. The storm’s impact, which traced a path of destruction across our region, was especially hard-hitting for interior areas in Georgia and the Carolinas. While there’s no doubt that Augusta will recover and continue to thrive as a leading destination for business, it’s important to understand the residual effects businesses in our area face as they navigate the recovery process.
Navigating insurance gaps
Helene left local business owners stuck in a maze of insurance-related uncertainties. Interior regions like Augusta are less experienced than coastal communities in bouncing back after a major storm. The next few months will undoubtedly continue to see local businesses navigate a complex claims process to which they may need to be better accustomed. Questions will likely persist around policy and coverage categories. For example, flood damage is typically covered by a unique product class. Other types of business insurance can counteract lost revenues related to business disruptions. Whether the policy covers physical damage, flooding, or other events, one thing is for certain: insurance will be critical in helping businesses recover. Payouts may take time, so it is important to have a continuity strategy in place to keep the business operational and cash flows sustained. An experienced commercial banker can help map out the recovery process.
Assessing the economic fallout
Due to the extent of hurricane-related disruptions across the local economy, it will take time for many area businesses to resume normal operations. Supply chain disturbances related to storm-damaged roads and infrastructure, including the lingering impact of the recent Ports strike, may remain a reality for many enterprises going into 2025. Even as inflation comes down, supply disturbances could cause certain input costs to vary from the norm. For example, post-hurricane availability of building materials like timber threatened to interrupt local supply. In some cases, this was alleviated by turning fallen trees into lumber, but the unpredictability of supply could persist in the coming months. In any case, while the financial and business impacts are likely significant, area businesses can breathe easier knowing the IRS has extended filing deadlines for businesses due to the area being a natural disaster zone.
Helene’s impact on technology
Many Augusta businesses have also experienced storm-related impacts to their IT infrastructure, resulting in poor or nonexistent connectivity. Even as business owners await the arrival of Starlink, the cost of getting back online or replacing damaged hardware is another item that will factor into recovery planning for our business community in the weeks and months ahead. Addressing these IT issues is crucial for a smooth recovery and future business operations.
While the extent of Helene’s damage to Augusta and neighboring communities cannot be understated, we are an exceptionally resilient city and will emerge from the cleanup stronger than before. What’s more, we are confident that favorable economic conditions and lower interest rates will continue to spur business activity in our area well into 2025, instilling a sense of hope and optimism in our business community.
Kevin Glass is the Augusta Market President at Synovus Bank. Kevin has over 25 years of experience in commercial, private wealth, and retail banking.
