It’s not enough to spread manufacturing work between countries. Concentrating in one part of the US puts companies at risk of extreme weather disruptions.
America’s factories aren’t built for the current cascade of extreme weather events.
Dozens of industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by Honeywell International Inc., Johnson Controls International Plc, General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material.