LANSING, Mich., Sept. 24, 2003 -- Working with the University of Michigan and regional sources, the Detroit Regional Chamber has estimated financial loss to the Detroit Region resulting from the August 2003 power blackout will reach $220 million.
The Detroit Regional Chamber collaborated with senior researcher Donald R. Grimes of the University of Michigan's Institute of Labor and Industrial Relations, who created an estimate of the overall impact of the blackout on the Detroit Region's economy.
The Detroit Regional Chamber believes the $220 million figure is the most accurate estimate available for the Region. Donald Grimes is well-known in the Detroit Region for his economic forecasting, and worked closely with the Detroit Regional Chamber's Research and Information Center.
Components of the estimate include lost wages in private, service- producing industries; lost perishable business inventories; household food losses; losses to eating establishments affected by the water ban; and direct losses to county governments.
Data from a number of sources were used to compile the estimate. Information from the U.S. Census Bureau and the State of Michigan's Office of Labor Market Information were used to model the affected residential and business populations, while data from DTE Energy, county governments and the Detroit Regional Chamber's membership base were used to assess the duration and severity of the power loss and water service interruption.
The Chamber included this information in testimony submitted to the Michigan Senate Technology and Energy Committee.
Since the blackout, the Chamber has been surveying its members via personal phone calls and faxes to determine individual losses. In addition, the Chamber has been working with the counties to determine aggregate losses for the entire 10-county region.
This is one of the many efforts the Chamber is engaging in to support small business as a part of its "Small Business Central: the one-stop resource to help small businesses make money, save money and grow their business." The Small Business Central, located at www.detroitchamber.com, includes information on potential relief funding sources.
The Detroit Regional Chamber is the leading business organization in the digital drive and the largest chamber of commerce in the country with more than 20,000 members. The Chamber's mission -- to power the economy for Southeast Michigan -- is carried out through business attraction efforts, public policy advocacy, strategic partnerships and quality products and services for members. This year the Chamber celebrates 100 years of serving the business community.