The Business Comeback USA and Canada’s Recovery Journey

Three steps of an integrated literature review were used in the method followed to generate this synthesis report. While the third combined results with a review of COVID-19 epidemic investigations, the previous two stages concentrated on the literature on disasters. The study team began with compiling the empirical and theoretical data on corporate recovery in disaster literature. The aim was to pinpoint important themes or "lessons" concerning corporate recovery from crises that would act as a guide for forming expectations on business recovery in the COVID-19 epidemic. Published review papers on the economics of disastersthat is, Refs. dominated the first phase of the process. Among other hazard events, these studies noted and examined the data supporting numerous empirical conclusions on corporate recovery in past disasters including earthquakes, tsunamis, floods, hurricanes, wildfires, and tornadoes. These results reflect a range of disaster settings, study areas, and methodologies. While certain results were often highlighted, others were reported just sporadically or inconsistently over danger events.

Emphasizing the most solid results those consistently supported by empirical data from.

Many kinds of disasters—the study team labeled them as a set of five lessons on business recovery, carefully addressed in Section 4 below. This initial phase included production of a research agendasetting paper [99] and an annotating bibliography with around 45 references [19]; further phases added several dozen sources to the review. The second phase consisted of thorough review of the five lessons in order to compile more data, especially from studies of recent and worldwide disasters. Every lesson was thus revisited, verified, and improved in front of a revised and more extensive body of research. The third stage consisted of analyzing the five lessons in respect to corporate recovery from the COVID-19 epidemic. Relevant research accessible as of December 2021, about two years after the epidemic started most of the world, were found using keyword searches of standard databases (in particular, Web of Science and Google Scholars). Considering the catastrophe taxonomy in Table 1 above, the pandemic studies were investigated to uncover the ways in which their conclusions matched or differed from the disaster experience for every one of the five lessons. These parallels helped the research team to create a more broad conceptual understanding of company recovery from all shocks and disasters, compiled in Section 5 below. The COVID-19 epidemic also affected sectors usually prone to supply-chain interruptions in natural disasters. The fast economic recovery caused a scarcity of semiconductors, which disrupted the supply chains in the automotive manufacturing industry. Especially, though, the reason for the COVID-19 epidemic's shortage was different from that of natural disaster events: Shifting their final products to fulfill a rising demand for semiconductors used to  Inputs, high-tech sectors have been particularly sensitive to supply-chain interruptions. Although the COVID-19 epidemic did not physically harm industrial facilities, it did cause supply interruptions via other channels. Except for medical devices, where pandemic-induced demand exceeded supply, and for fast-moving consumer items due to consumer behavior changes like hoarding and bulk buying, large-scale disruptions of supply chains were not seen in the first stages [114]. Many companies set layoffs and cut their 

Though related publications from important global organizations as the.

OECD were not excluded, the research concentrated mostly on peer-reviewed journal articles published in the English language throughout all three stages. Although both quantitative and qualitative research were looked at, much of the evidence base is quantitative and usually comes from administrative data or company polls. The scope was limited to empirical research emphasizing corporate recovery in high-income nations.Often posing difficulties for companies rebuilding from natural disasters, supply interruptions can result from many different sources. Usually, physical damage to manufacturing facilities results in lower output of goods and services needed as inputs by other companies, either nearby or far-off from the disaster-torn area. Through the intricate inter-industry relationships, production shortages in one sector or even a single vital business in the disaster area can spread to other enterprises, sectors, and areas. For instance, damage-related shortages of intermediate goods caused significant declines in automobile production with varying time lags in the 2011 Great East Japan (GEJ) earthquake; production declines were experienced in Guangdong province, China, one month after the earthquake and in Thailand in the following month [45]. Power constraints in the devastated areas aggravated long-term effects on companies in this tragedy [46]. enable remote healthcare, work-at-home, and virtual learning during the second quarter of 2020, semiconductor makers—who service several goods markets and compose a sophisticated production system—shipped [57] The producers, however, misjudged the comeback of automotive demand, and chip shortages persisted for a protracted period—as of this writing in July 2022. in domestic real estate and house modifications in addition to labor shortages [55]. The epidemic has seen observed mismatches in supply and demand in the labour market. Significant mismatches across various industries, including leisure and hospitality, transportation, warehouse and utilities, and manufacturing, data on job vacancies and hires in the United States in August 2021 [56] reveal demonstrate clear discrepancies. As Krumel et al. [115] discover, a drop in necessary skills and income could have caused people to be reluctant to re-join the workforce.

Other elements can also lead to supply-side disruptions in disaster recovery.

Capacity loss in the logistics and transportation sectors can have knock-on effects throughout world supply chains. The closing of ports in Chile's 2010 earthquake resulted in shortages of lumber for Chicago's building industry [47]. Government reactions to other incidents, most notably during the September 11, 2001, terrorist attacks, when closing of U.S. borders caused worldwide-scale supply chain disruptions in automobile industries [48], have also caused similar disruptions. Labor shortages can also hinder post-disaster recovery; in the 2011 GEJ earthquake, for instance, the mismatch of employment in construction and the professional and engineering sectors slowed reconstruction activities Beyond limits on production capacity, circumstances of demand surpassing supply—that is, excess demand—during reconstruction and recovery can also lead to shortages. Particularly in many major catastrophes, significant property loss results in significant increases in household expenditure on durable goods, as has been shown for the 1995 Kobe Earthquake [50], the 2005 Hurricane Katrina, and other events Some industries have been identified as especially sensitive to supply-chain interruptions caused by natural catastrophes. The 1999 Taiwan earthquake caused significant effects on supply-chains since semiconductors were in limited supply [52]. The 2011 flooding of the Chao Phraya River in Thailand [53] seriously affected the electronics (especially hard disk drive) supply chains as well as the automotive sector. Because they depend on a system of sophisticated worldwide specialization for production production capacity early in the epidemic. But fast economic recovery has exposed capacity problems including those in the maritime logistics industry. Reducing inventory also hastened shortages of essential resources in many different industries. More than half of manufacturing, construction, retail trade sector small firms in the United States Census Small Business survey, conducted from May 31 to June 6, 2021, reported domestic supplier delays [54]. Construction materials also displayed demand driven shortages. For instance, the U.S. timber markets have seen notable price increase (more than 300%) resulting from the surge.