Forum on Catastrophe Preparedness: Partnering to Protecting Workplaces

IIHS Crashes CarsIBHS Crashes Structures

All Hazards - National

Backbone of Economy

Small businesses• 98 % of all firms in US• Employ 50% of workforce• 85% of small businesses

employ 10 or fewer• 44% of nation’s payroll• Generate 41% of US business

receipts

Reality Check One of every five

businesses experiences a major disruption each year.

Small business owners have a higher probability of being impacted by a disaster.

Small business owners have fewer recovery resources and a lower tolerance for losses.

As many as 90% of small businesses do not have a business continuity plan in place.

More than 60% of small businesses do not have a backup power supply.

What Causes Disaster Losses?

• Where You Build

• How You Build– Design– Construction

• How Well You Maintain

OUR GOAL: Disaster-Resistant Businesses

Make natural disasters a part of how we build and maintain

businesses

That Is: We Must Make disaster Protection a PUBLIC VALUE

OUR GOAL: Disaster-Resistant Businesses

We Must

Promote construction of disaster-resistant businesses

Promote retrofitting of existing structures

Promote maintenance of structures

Stronger Building Codes Work

So, We Know• Buildings built under the latest codes

where enforcement was good performed very well

• Keys are:– Good up to date code– Uniform and thorough enforcement– Builders and subs who understand and

appreciate the risks– Special inspections for key functions

97%

The 97% Problem

What About Existing Structures?

97%97%

97%

97%

We will never be fully successful in protecting

businesses until we solve the retrofit problem!

What About Existing Structures?

We Must Keep Businesses Open

• Business Impact & Recover Planning

• Property & Asset Evaluation & Protection

• Pre-disaster Property Protection & Post Disaster Recovery Plans

FILLMORE, CA

FILLMORE, CA

“I think it’s time to activate our Plan”

You Must Give Me Incentives to Take

Property Protection Action

PUBLIC OPINION RESEARCH TELLS US

FEDERAL INCENTIVES

Income tax deductions / credits

Increased funding for states with a mandatory state-wide building code

Preferred SBA loans

STATE INCENTIVES

No sales tax on disaster-resistant materials

No increase in property assessment for disaster-resistant structures

Reduced property transfer tax

LOCAL GOVERNMENT INCENTIVES

Reduced permit fees

Fast tracking permit process

Also see property tax and sales tax incentives listed under state

BANKING INCENTIVES

Lower interest rates for construction loans

Lower interest rates for mortgages

Lower interest rates for business improvement loans

Reduced loan application fees

Reduced down-payment requirement

RETAIL INCENTIVES Reduced architect / engineer fees

Material manufacturers discounts

Reduced moving company fees

Discounts from furniture / office supply dealers

Discounts on landscape design, installation and maintenance

Monthly discounts on utilities. For example: energy, telephone, cable and security

OUR ASSIGNMENTS

• Help make disaster protection a public value• Help educate business owners & managers• Promote New disaster-resistant construction• Promote retrofitting of existent structures• Promote adoption & enforcement of strong

commercial building codes• Establish Incentives

If not us, then who?

If not now, then when?