Industry impact: Over 83,000 companies have been affected by Hurricane Milton, with sectors such as pharmaceuticals, medical devices, agriculture, defense, and aerospace facing some of the most significant disruptions, according to a new report released by Exiger, an AI-driven supply chain and risk management firm.
- Hurricane Milton battered Florida's Gulf Coast last week with torrential rain and 120-mile-per-hour winds, leaving homes and entire neighborhoods severely damaged. The storm has claimed at least 24 lives.
- Its impact on economic activity is expected to be notable, even slightly reducing real GDP growth in Q4, according to Ernst & Young.
Zooming in: Among the hardest hit industries is the pharmaceutical and medical device sector. Tampa is a major hub for shipping these goods, and temporary facility closures are expected to worsen an already fragile supply chain, exacerbated by the ongoing shortage of IV fluids caused by Hurricane Helene earlier this year. Baxter International, one of the largest U.S. producers of IV fluids, was forced to close a North Carolina facility due to flooding from Helene.
- The defense and aerospace industries are also under strain, with more than 12,000 U.S. government contracts tied to companies operating in Tampa Bay counties, many of which produce crucial components for aircraft and missile systems.
- Agriculture, another major industry in the Tampa region, is bracing for the fallout. The Port of Tampa, a vital exporter of fertilizers, is facing potential shortages that could have a ripple effect on food prices, despite recent declines in fertilizer costs since 2022.
Looking ahead: The crisis has underscored the vulnerabilities in global supply networks, highlighting the need for stronger cross-industry partnerships and proactive measures. Public and private sector organizations are working together, focusing on preventing further damage and finding ways to stabilize critical industries hit by the storm. The goal is to create a supply chain model that is more flexible, agile, and prepared for whatever challenges the future may bring.
