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A disastrous wildfire season in California and stronger-than-average hurricane season in the Atlantic have pushed demand and revenue up over recent years; in the next five years, funding will remain limited, but an improving economy is projected to support private donations to the industry. For these reasons, industry research firm IBISWorld has updated a report on the Natural Disaster and Emergency Relief Services industry in its growing industry report collection.
Los Angeles, CA (PRWEB) February 11, 2013
The Natural Disaster and Emergency Relief Services industry is expected to grow an average 1.1% per year to $11.2 billion in the five years to 2013. Though dominated by nonprofit organizations, this industry is composed of both nonprofit and for-profit firms that provide direct assistance to communities affected by domestic and global disasters. “Although revenue is generated mostly from government funding and private donations,” says IBISWorld industry analyst David Yang, “revenue exhibited some volatility over the past five years due to the unpredictable occurrence of natural disasters.”
From 2008 to 2013, the performance of the Natural Disaster and Emergency Relief Services industry was shaped by the incidence and severity of natural disasters and the magnitude of supplemental funding appropriations. “Following a year of relative tranquility, demand surged in 2008 after a heavy wildfire season in California and stronger-than-average hurricane season in the Atlantic,” adds Yang. “While revenue climbed, however, profit plummeted due to investment losses during the recession and increased spending on relief operations.”
The number of FEMA-declared disasters increased 124.0% in 2011, with deadly tornadoes, wildfires and Hurricane Irene; nonetheless, revenue only increased moderately over the year due to budgetary concerns. In 2012, though the number of disasters declined, the hurricane season caused near-record damages to the Atlantic coast. According to state government estimates, Hurricane Sandy caused $65.6 billion in total damages, making it second only to Hurricane Katrina in terms of storm-related damages. As a result, homeland security and disaster relief funding surged 32.2% in 2012, fueling revenue growth of 8.9%. In 2013, disaster relief funding is expected to fall as disaster-stricken regions recover. As a result, revenue is expected to decline 2.7% over the year. The industry has a low level of concentration, with no single firm accounting for a significant share of industry revenue. Due to the unpredictability of natural disasters, most industry operators conduct regular operations outside of disaster relief, in areas such as community food and housing services, rehabilitation services and international development aid.
In the five years to 2018, revenue is projected to grow. Over the period, corporate profit and disposable income are both forecast to recover steadily, bolstering private charitable donations to the industry. On the other hand, government funding is anticipated to lag behind private sector contributions due to growing concerns regarding the federal deficit. Nonetheless, according to research from the United Nations, the frequency of natural disasters has increased over the long-term, mirroring trends in climate change. If the upward trend continues over the next five years, demand for industry services will rise. For more information, visit IBISWorld’s Natural Disaster and Emergency Relief Services in the US industry report page.
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IBISWorld industry Report Key Topics
Industry establishments provide food, shelter, clothing, medical relief, resettlement and counseling to victims of domestic or international disasters. Industry operators respond to natural and manmade crises, including earthquakes, fires, tornadoes, hurricanes, hazardous material spills, wars and acts of terrorism. This industry excludes government agencies and organizations that provide housing or food to the homeless, victims of domestic violence and the elderly.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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