Coastal Services Center

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Risk and Vulnerability Assessment Steps Economic Analysis

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Extended Discussion | Interact with Data | Print Version

Why would I do this analysis?

Some of the most devastating disaster impacts to a community include the loss of income associated with business interruption and the loss of jobs as a result of business closures.

This analysis focuses on determining the hazard vulnerabilities of centers of economic activity, and the largest employers within the community. The existence of primary centers of activity within the major economic sectors and the largest employers within a community are vital to its sustainable economic development. Therefore, it is essential to identify the potential negative impacts to them, which will enable the community to develop and prioritize potential hazard mitigation measures to eliminate or reduce these potential impacts.

Read the extended discussion for detailed information on the economic analysis.

Give me an example of something I might do in this analysis.

Along with the risk and vulnerability assessment working group, which should include representatives from the business community, you have identified and completed an inventory of key centers of economic activity and the largest employers in your community. The key centers of economic activity combined with the largest employers should represent the businesses and industries that are vital to your local economy, and possibly to the state and national economy as well.

Now that you have these businesses and industries identified, their locations can be combined with hazard risk data to assess their vulnerabilities. This information can then be used to encourage the most vulnerable businesses and industries to perform in-depth structural and operational analyses. These analyses should be done similarly to the in-depth analyses conducted on the most vulnerable critical facilities. The results of these analyses can be used to educate personnel on potential hazards, as well as develop ways to minimize business interruption and prevent future losses. For example, a business can use this information to make structural improvements to minimize damages, or develop a debris management plan or ensure that their insurance coverage is sufficient to expedite the recovery process.

What are my steps?

1. Develop a general overview of your local economy
2. Map centers of economic activity and the largest employers in your community
3. Identify the intersection of hazard risk areas with centers of economic activity and largest employers
4. Based on their proximity to high-risk areas, develop a prioritized list of centers of economic activity and largest employers to conduct further detailed analyses
5. Use results to educate vulnerable businesses and industries about their vulnerabilities and encourage them to conduct the detailed analyses

What data will I need?

General overview:

• Employment by Economic Sector
• Annual Payroll by Sector
• Annual Sales
• Receipts
• Shipments by Sector

Detailed community economic information:

• Land Use Data
• County Parcel Data
• Zoning
• Locations of Largest Employers

Where can I obtain these data and information?

It is important to have a general overview of your local economy when you first begin this analysis. Information is widely available to assist you with characterizing your local economy. Several good sources of information include the Economic Census and County Business Patterns conducted by the U.S. Census Bureau.

Economic Census data are typically updated every 5 years and County Business Patterns data are updated annually. In addition to having a general overview of your local economy, it is important to break this information down further to identify the locations of centers of economic activity and the largest employers. For data to accomplish this task, consult your local Chamber of Commerce and local officials. Even if digital (GIS) data are not available, it is still possible to complete an analysis by working with the Chamber of Commerce and local officials and by using transparencies overlaid on paper base maps.

Who do I need to work with? What agencies can help me locate the necessary data and information?

To access many of these governmental and organizational Web sites, view the Links page. A complete list of agencies and stakeholders is also available.

Local (county or municipality level) — Chamber of Commerce, Economic Development, City/County Administration, Planning, local businesses, and others.

Regional (state level) — Chamber of Commerce, Economic Development, Department of Commerce, Planning, and others.

National (federal level) — U.S. Census, and others.

Interact with the Data

Follow this link to view and interact with data pertaining to the Economic Analysis.

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