“Devastating” economic consequences. This is the conclusion reached by the Valencia Chamber of Commerce after evaluating the direct impact that the DANA on October 29 has had on the construction, industry, transportation, agriculture, retail and other sectors. services and activities in the province. TO grosso Similarly, the strongest storm that has been experienced in recent history in Spain has affected 87 municipalities, in which the business fabric has been seriously damaged, with 57 industrial estates completely destroyed, almost 12,000 companies damaged and a total of 13,314 million euros in damages.
In a report published this Friday by the Valencia Chamber of Commerce, it is clear that The industry would be the most damaged sector, with more than 4.5 billion euros of damage straight. Thus, of the 5,386 industrial companies located in the 87 municipalities, 2,386 are in the so-called zone zero or zone of greatest impact, which is restricted to 24 municipalities. Another 23 municipalities would have a partial impact on their industrial zones and in the rest, 40 municipalities, the impact on industrial companies would be slight or non-existent.
You are alone Ground zero companies account for 20% of industrial companies of the entire province of Valencia, which generate more than 7,000 million euros in annual turnover and employ nearly 32,000 people, a fifth of the entire province of Valencia. Their damages amount to 1,951 million euros.
81% of the industrial companies affected are microenterprises with a turnover of less than two million euros, and 17% are SMEs, which shows “the high vulnerability of the business fabric from a financial point of view”highlights the document. In the total calculation of the 87 municipalities, the number of affected workers would exceed 74,000.
The Chamber of Commerce also warns that different industrial clusters operate in the most affected area, composed mostly of SMEs, so the stoppage of their activity will have an “unprecedented” impact on the business fabric of the province.
Almost 60 polygons destroyed
In fact, in ground zero there are 57 industrial estates that have been “very punished” by DANA, some as important as Ribarroja or Quart de Poblet, where some of the main industrial companies and the largest logistics center are located. the province of Valencia and even Spain.
“These industrial estates have suffered serious damage to their accesses, their infrastructure, their service areas, etc. This damage affects not only the companies, but also the value chain, which extends the impact of DANA beyond the four affected regions“says the report.
In these 24 most affected municipalities, metal products, wood, furniture and machinery companies predominate, although they are characterized by their small size, the report indicates. Likewise, the agri-food industry and the chemical and plastic materials industry stand out, where the average business size is larger, which allows them to have greater financial leverage to reactivate productive activity more quickly.
Within the industrial sectors, the Chamber of Commerce document highlights that The one with the greatest estimated damage is that of metal products.: Of the 1,210 million euros estimated for all affected municipalities, 70% corresponds to companies located in ground zero.
Likewise, more than half of the estimated damages for the wood and furniture industry (316 million euros) have occurred in companies located at ground zero. Also to the manufacturing industry electrical machinery and appliances A high direct damage is estimated: 1,215 million, although in zone zero its incidence is reduced, only 7%.
Automobile, construction and logistics, in focus
The report also highlights that the automobile cluster has been one of those affected by the storm, given that although the Ford factory has not been affected, a significant part of its suppliers have been. Specifically, The estimated direct damages for the sector are estimated at 1,126 million eurosof which 562 million euros correspond to ground zero.
Likewise, the document focuses on the high damages that a “fundamental” sector for the region such as transport and logistics, which will reach 2,189 million euros in all the affected municipalities.
Direct damages in the construction sector amount to 3,813 million euroswhich will be added to the damage estimates published by the Valencian Farmers Association (AVA) for the agricultural sector, of 1,020 million euros; and that reflected in the report on retail trade and other urban services and activities, prepared by Cámara Valencia on November 12, with a total of 1,789 million euros.
Losses due to inactivity
In addition to all these million-dollar damages, the report also emphasizes the indirect impact that the three weeks of inactivity will have (for the moment). So, The losses in the turnover of ground zero companies amount to 86.9 million eurosincluding construction and transportation.
Since DANA, investment in material assets has been reduced by 6 million euros, an amount that includes the investment made by the company in capital goods and materials purchased from third parties.
The catastrophe has so far caused a decrease in gross value added of 34.5 million euros in the affected areaconcludes the report.
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