Nearly a year after a devastating flood, business is bustling again along Main Street in Ellicott City, Maryland, but signs of the disaster remain. Just steps away from shops with flags flying and doors open are others with “space available” signs and boarded-up windows. Construction equipment sits at the corner.
Climate change is increasing the odds that communities across the United States will face similar risks. To withstand these disasters, communities must become more resilient, and a C2ES report offers ways for state and local governments to help.
On July 30, 2016, more than six inches of rain fell in two hours in a low-lying area in central Maryland bounded by two rivers. Water gushed down a historic Ellicott City street lined with antique shops, art galleries, boutiques, and restaurants. The flood damaged 90 businesses and caused more than $22 million in damages to infrastructure.
The economic damage didn’t stop there. The county where Ellicott City is located lost between $42 million and $67 million in economic activity and as much as $1.3 million in tax revenues because of the flood.
With the help of loans from the state and private donations, more than 90 percent of the damaged businesses have reopened, and some new ones are moving in.
The National Weather Service classified the storm as a thousand-year rainfall event – meaning that scientists using historic data calculate a one-in-a-thousand chance of an event like this occurring each year. But as the climate keeps changing, the odds of seeing extreme weather go up, increasing the risks to communities and businesses throughout the country.
Almost 40 percent of small businesses nationwide never reopen their doors following a disaster event. Those closings can have an especially big impact; small businesses account for more than half of U.S. sales and jobs.
Small business owners often are unaware of their climate risks and lack the time and resources to prepare for the impacts. Fewer than half of Maryland small businesses that replied to a C2ES survey said they knew about climate risks. Most said they lacked resources to learn about them, and that available resources do not directly address local risks most relevant to them.
But state and local governments in Maryland and elsewhere can help their small businesses become more climate-resilient by following the recommendations in C2ES’s framework for engagement.
When engaging with small businesses on weather and climate resilience, the C2ES framework recommends state and local officials:
- Use trusted messengers to convey climate information. These include organizations that small businesses frequently interact with, like city or county chambers of commerce, trade associations, and other business organizations.
- Leverage existing channels of communication. State agencies and local agencies often already interact with businesses on preparedness, emergency planning, flood management, long-term planning, and economic development. Climate resilience information can be incorporated into these interactions. Likewise, existing resilience efforts can be broadened to include the business community.
- Identify new opportunities. New programs and information can be developed on small business resilience, such as public-private partnerships and business resilience networks. Training materials and other resources can be distributed via trusted messengers.
- Distribute targeted information. Businesses need more information on what they can realistically do to become more resilient to extreme weather and climate change. Sector- and location-specific information can help businesses better understand their risks and opportunities for enhancing resilience.
The extreme weather risk to communities like Ellicott City will only increase as the Earth’s atmosphere continues to warm from rising greenhouse gas emissions. But state and local governments have opportunities to open new channels of communication to help small businesses become more climate resilient and able to survive disasters.