Natural disaster plan a must

For most U.S. regions, particularly California, it’s not a matter of if the next natural disaster will strike, but when.

The recent Northern California wildfires damaged or destroyed more than 700 businesses. And the 2017 Mexico City earthquake continues to have experts speculating on Southern California’s “big one,” with damages projected to reach upward of $300 billion.

Acknowledging the inevitability of such an event, the U.S. Small Business Association is offering loans of up to $2 million to repair or replace damaged or destroyed real estate, machinery and other equipment.

Experts predict that the damages from a major Southern California earthquake
could reach $300 billion. Image courtesy of CMTC

While this offers some reassurance, a disaster preparedness plan is still critical to keeping a company afloat. The Santa Monica Office of Emergency Management cited the following statistics about disasters and lack of preparation:

• Companies that fail to resume operations within 10 days of a disaster are unlikely to survive.
• Of businesses that experience a disaster and have no emergency plan, 43 percent never reopen.
• Of those that do reopen, only 29 percent are operating 2 years later.

While everyone hopes for the best, it’s smart to plan for the worst. There are five important areas of a manufacturing business that should be evaluated to stay prepared for whatever may come your way. One of them—Evaluate Your Facilities—is presented here. (To read the other four—insurance, employee skills and pay guidelines, data recovery, and supply chains—visit tinyurl.com/ybmr63vv.)

Manufacturers constantly work to make the factory floor a safe place. But even with the most stringent of safeguards and safety procedures, a disaster can still turn deadly. Here are three steps that will help you better safeguard your facilities: