Consultant Dan Gerlach reveals Buncombe County's economic storm recovery challenges

Buncombe County is grappling with significant economic challenges in the wake of Hurricane Helene, which has disproportionately impacted the region. Dan Gerlach, a consultant and former economic advisor, presented a detailed assessment to the Buncombe County Board of Commissioners, highlighting the storm's severe effects on local businesses and employment.

Gerlach's analysis revealed that while the North Carolina Office of Budget Management estimated that 53% of the storm's economic damage occurred in a group of 15 counties, he believes the true figure for Buncombe County alone is closer to 95%. He emphasized that the economic fallout has been particularly harsh, with over half of the total economic loss in the state occurring in Buncombe County.

The assessment included a look at business losses, which Gerlach categorized into three areas: physical capital loss, revenue loss, and human capital concerns. He noted that many businesses faced not only direct damage but also significant operational disruptions, leading to a decline in sales and employment. The leisure and hospitality sector, a crucial part of Buncombe's economy, has been particularly hard hit, with a reported 8% decline in employment year-over-year.

Despite some signs of recovery, such as a slight uptick in employment in recent months, Gerlach cautioned that the county is still down approximately 3,000 jobs compared to the previous year. He stressed the importance of diversifying the local economy to mitigate future risks and ensure sustainable growth.

Commissioners expressed concerns about the need for grants rather than loans to support struggling small businesses, particularly in the tourism sector. Gerlach acknowledged the challenges in securing state funding for grants, noting that the General Assembly is cautious about setting precedents for direct financial assistance to businesses.

As Buncombe County continues to navigate the aftermath of the storm, the focus remains on rebuilding and revitalizing the local economy. Gerlach's insights underscore the critical need for ongoing support and strategic planning to ensure a robust recovery.