Visual Tools

go to search panel

Business Movement

Click image to view details (PDF 3.42 MB)

Business Relocation since Katrina: Multi-Directional Movement of Firms and Jobs

Graphics

These graphics display the movements of individual firms since Hurricane Katrina. The graphics attempt to show the complexities that some companies faced in the months after the hurricane. A variety of companies and situations are shown, ranging from firms that have permanently left New Orleans to others that temporarily moved employees but have moved back.

The graphics are organized by a top menu that lists each firm and allows the user to choose the firm to display on the map. When chosen, the firm's name in the top menu is surrounded by a red box and the firm's post-Katrina movements are displayed on the map. The movements away from New Orleans and other affected areas are shown in red, while movements back to the affected area are shown in blue. Where possible (when such information is available), the width of the line is a rough approximation of the number of employees that traveled between that particular link. Several paragraphs of text accompany the map to briefly tell the post-Katrina story of each business, including not only the movements of its employees, but also how the firm responded to the hurricane in terms of its disaster preparedness plans and how the hurricane impacted the business financially. With these stories, the viewer can get an idea of how natural disasters can impact businesses individually, rather than only seeing industry-wide or city-wide impacts.

Explanation

The primary goal of these graphics is to show the range of actions taken by various companies in the wake of Katrina. The graphics are meant to be a series of case studies explaining the actions of each firm with a brief analysis of the decisions faced by each firm. In each case, an attempt is made - with varied levels of detail - to quantify the number of jobs that are being transferred.

An attempt is also made to examine the disaster preparedness plans of each business and how the business responded shortly after the hurricane. Some had mechanisms for backing up important information in areas away from the Gulf Coast, and many have reassessed their plans following the hurricane (such as Oreck, who did not account for a storm large enough to affect both its New Orleans and Gulfport facilities). The two utility companies in the graphic, Entergy and BellSouth, have suffered catastrophic losses due to the damaged infrastructure in their systems throughout the region. Each had hundreds of thousands of customers who lost means of communication due to the damage of electrical and telephone systems. Large amounts of money will have to be spent to restore these systems, and many laborers will be required. Other businesses suffered losses as well, and some - such as Ruth' Chris Steakhouse - have thrived since the hurricane. These graphics attempt to show the diversity of problems that are faced by individual firms and how each firm has chosen to face the problems differently.

The impacts of business relocation are difficult to assess at this point, as location decisions are still being made and as more problems arise for those affected. It is clear that some firms have left New Orleans for good and others have at least transferred some jobs to other locations. The cumulative effect of this job loss will have wide-ranging effects on New Orleans as well as on the cities that have benefited from relocation. With much fewer jobs - among other reasons - New Orleans will not be able to grow back to its former size, which in turn will cause even more firms to move away from New Orleans as their customer base (as well as their employee base) will be too small to maintain business. In addition, firms that previously benefited from locating to many other firms (such as consulting services) may no longer have this advantage, and agglomeration economies will be lost. Businesses will then seek locations that are more conducive to its growth and future success.

Case studies of eight different firms and their actions (e.g. movement of business functions and employees) after Hurricane Katrina

Sources