Impact Assessment & Recommendations: Key Bridge Collapse

IMPACT ASSESSMENT & RECOMMENDATIONS: KEY BRIDGE COLLAPSE

The collapse of the Key Bridge in Baltimore has had significant repercussions on businesses across various sectors and geographic locations. This report aims to provide an overview of the diverse array of businesses affected, their geographical reach and the wide-ranging impacts beyond direct losses. Additionally, it underscores the importance of transportation funding, infrastructure investment and support for critical transportation hubs like the Port of Baltimore.

Learn more at mdchamber.org/RecoveryCoalition

U.S. Coast Guard photo by Petty Officer 2nd Class Alejandro Rivera. The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.

Building Bridges to Recovery Coalition: Impact Survey

Building Bridges to Recovery Coalition Impact Survey Amidst the aftermath of the Francis Scott Key Bridge collapse, the Building Bridges to Recovery Coalition quickly emerged, uniting key stakeholders like the Maryland Chamber of Commerce, Greater Baltimore Committee, World Trade Center Institute, Greater Washington Partnership and the U.S. Chamber of Commerce, among others. Together, we conducted a comprehensive survey to gauge the impact on businesses statewide.

Through coordinated outreach efforts, the coalition gathered insights from a diverse range of affected businesses and non-profits. This report presents the survey’s key findings with the goal of raising awareness and fostering collaboration among support networks, all to help businesses and nonprofits navigate the challenges stemming from this incident.

The survey garnered responses from 51 businesses, with 43 classified as small businesses. Baltimore County emerged as the most affected area, although businesses from Charles County, Anne Arundel County, Harford County, and beyond also participated. Industry associations were the go-to resource, while transportation bore the brunt of the impact. With 52% of businesses citing employee impacts and 64% reporting revenue losses, tailored support measures, including low-interest loans, are imperative for recovery. The employee count varied significantly across the businesses surveyed, ranging from single-person operations to those with up to 12,000 employees. Additionally, several businesses included 1099 employees, representing self-employed individuals, freelancers, or independent contractors.

KEY BRIDGE BUSINESS IMPACT SURVEY: BY THE NUMBERS

51

Responses

43

1-12,000

From small businesses

Employee-sized companies

52%

64%

Cite employee impacts

Report revenue losses

U.S. Army Corps of Engineers bracketed image by Charles Delano. The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.

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Building Bridges to Recovery Coalition: Impact Survey

Summary of Business Impacts A DIVERSE BUSINESS LANDSCAPE IMPACTED Responding businesses represent a wide range of industries, including warehousing and logistics, electrical services, hospitality, real estate, construction, manufacturing, retail, marine services and more. This diversity underscores the interconnectedness of the regional economy in addition to highlighting the widespread implications of transportation disruptions.

WIDE GEOGRAPHICAL REACH Businesses affected by the Key Bridge collapse are not confined to the immediate Baltimore area. They are dispersed throughout Maryland and beyond, with addresses ranging from Takoma Park to Germantown, from Rockville to Dundalk, and even extending to locations outside Maryland such as St. Louis and Southport, N.C. This widespread dispersion amplifies the cascading effects of infrastructure incidents on businesses operating within and across state borders.

IMPACTS BEYOND DIRECT LOSSES Beyond the direct economic losses incurred due to transportation disruptions and operational challenges, businesses have also experienced indirect impacts that are harder to quantify but equally significant. These include lost customers, missed opportunities and diminished competitiveness in the marketplace. For many businesses, these intangible losses pose significant hurdles to recovery and long-term sustainability and are challenging to get any type of financial support around.

CHALLENGES WITH SBA LOANS Despite the availability of low-interest Small Business Administration loans, many businesses express concerns about the financial burden of taking on additional debt. Furthermore, not all businesses qualify for SBA assistance due to eligibility criteria, leaving some without access to financial support.

OBSTACLES FACED BY IMMIGRANT AND MINORITY-OWNED BUSINESSES Immigrant-owned and minority-owned businesses, including those owned by undocumented individuals, face unique challenges in navigating the disaster, recovery efforts and available resources. Trust barriers, language limitations and resource constraints hinder their ability to access assistance effectively.

Examples of Immediate Impacts TRANSPORTATION DISRUPTIONS •

Rerouting imports and cargo to alternative ports has led to delays, increased freight costs and logistical challenges.

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Weight restrictions on roads have necessitated the establishment of transload facilities and adjustments to transportation routes.

OPERATIONAL CHALLENGES •

Extended lead times, increased costs and potential for out-of-stocks and lost sales have been observed across multiple industries.

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Businesses reliant on the Port of Baltimore for imports, exports and logistics services have experienced revenue losses and operational disruptions.

WORKFORCE IMPACTS •

Longer commutes, travel time and congestion have affected employee productivity and morale.

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Layoffs and financial strain are imminent without immediate financial assistance to sustain operations.

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Building Bridges to Recovery Coalition: Impact Survey

Long-Term Impacts and Challenges Ahead While the immediate impacts of the Key Bridge collapse have been severe, businesses and communities in the region brace themselves for long-lasting repercussions that will persist even after the Port of Baltimore resumes operations and temporary transportation solutions are implemented.

PORT BUSINESS REDUCTION Even with the Port reopened, the loss of the Key Bridge as a critical transportation artery will likely result in reduced business activity at the Port. The disruptions to established logistical networks and supply chains will have a lingering effect, as companies adjust to new transportation routes and explore alternative options, potentially leading to a shift in cargo traffic to other ports in the region.

SUBSTANTIAL TRAFFIC CONGESTION The reopening of the Port will bring an influx of commercial vehicles and commuter traffic, further compounding the already congested roadways in the area. This increased congestion will create significant delays in the movement of goods and materials, affecting businesses’ ability to efficiently transport products to customers and receive necessary supplies and raw materials for their operations.

BRIDGE RECONSTRUCTION TIMELINE With the Francis Scott Key Bridge not expected to be rebuilt or accessible for years, businesses, their customers, and their employees will continue to grapple with the challenges of limited mobility and accessibility. Alternative routes will remain necessary, leading to longer travel times, increased transportation costs, and logistical complexities that could hinder productivity and competitiveness.

LABOR CHALLENGES The persistent traffic congestion and transportation disruptions will also have implications for the workforce.

Businesses may face challenges in attracting and retaining employees due to extended commute times and transportation-related frustrations. Additionally, the need for more personnel to handle tasks like deliveries and logistics could strain staffing resources and contribute to higher operational costs.

SUPPLY CHAIN DISRUPTIONS The ripple effects of the bridge collapse will continue to disrupt supply chains, affecting businesses that rely on just-in-time inventory management and efficient distribution networks. Delays in receiving raw materials, components, or finished goods could lead to production stoppages, stock-outs, and lost sales opportunities, further compounding the economic impact.

COMMUNITY IMPACT Beyond the direct effects on businesses, the long-term transportation challenges posed by the bridge collapse will also impact local communities. Residents may face limited access to essential services, increased commute times, and disruptions to their daily lives, potentially affecting their quality of life and contributing to broader economic and social consequences.

SUPPORT NEEDS As the region grapples with these long-term impacts, businesses and stakeholders alike emphasize the need for continued financial support, infrastructure investment, and collaborative efforts to develop sustainable solutions that address the multifaceted challenges arising from the loss of this critical transportation link.

The Building Bridges to Recovery Coalition serves as a centralized resource hub for businesses throughout Maryland, facilitating information exchange and advocacy efforts to support impacted enterprise throughout our state.

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Building Bridges to Recovery Coalition: Impact Survey

Addressing Long-Term Impacts: Recommendations for Resilience and Recovery While immediate measures are needed to mitigate the initial shockwaves of the Key Bridge collapse, it is equally important to develop a comprehensive strategy that addresses the long-term impacts and fosters resilience within the business community and the region as a whole.

By implementing the proposed short-term and long-term recommendations, businesses, government agencies and community partners can work collectively to address the immediate challenges posed by the Key Bridge collapse while also laying the foundation for a more resilient and sustainable future for the region’s economy and transportation infrastructure.

Short-Term Recommendations REGULATORY FLEXIBILITY •

Temporarily increase over-the-road weight limits to facilitate the transportation of goods.

•

Extend hours of service for truckers to accommodate needs and reduce delivery delays.

INFRASTRUCTURE DEVELOPMENT •

Establish barge service for container transport from Norfolk, Va., to Trade Point to alleviate transportation costs and road congestion.

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Coordinate efforts to streamline container transport and minimize disruptions caused by weight restrictions and route changes.

FINANCIAL ASSISTANCE •

Provide immediate financial assistance to affected businesses to mitigate revenue losses and sustain working operations.

•

Offer low-interest loans, grants, and relief programs to support businesses and employees impacted by the Key Bridge collapse.

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Ensure financial assistance programs are widely accessible and not limited only to certain industries, business types and/or geographies.

•

Work to ensure that funds raised to support disaster recovery can be utilized to support businesses.

Members of seven local and regional agencies were honored for their service and heroism at the Maryland Chamber of Commerce’s Inspire MD event on May 9, 2024. Photo by Maryland Chamber of Commerce.

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Building Bridges to Recovery Coalition: Impact Survey

Long-Term Recommendations INFRASTRUCTURE INVESTMENT This incident has highlighted the immense impact of losing a major transportation hub, underscoring the significance of transportation funding and infrastructure investment. The resulting disruptions have led to increased costs, challenging traffic conditions, gridlock, longer commutes, logistical challenges and the severing of direct connectivity between previously interconnected communities. These consequences pose tremendous challenges for businesses and communities that relied on the bridge for vital connectivity.

We recommend that key stakeholders continue to advocate for increased funding and prioritization of transportation infrastructure projects, including maintenance, repair and modernization efforts. Investment should also be considered in emerging “smart” technologies, like artificial intelligence (AI), cloud computing and quantum computing to provide real-time solutions to challenges such as reducing traffic congestion, lowering carbon emissions, optimizing routing for trucks carrying hazardous materials, resolving supply chain issues and enhancing port operations.

RESILIENCE PLANNING Resilience planning has emerged as a crucial aspect in mitigating the impacts of such infrastructure-related incidents and disruptions.

Developing comprehensive resilience plans that incorporate strategies for alternative routes, emergency response protocols, and business continuity measures is essential to ensure that businesses and communities are better prepared to withstand and recover from future infrastructure challenges.

PORT SUPPORT & DIVERSIFICATION This incident also underscores the vital role of the Port of Baltimore as a linchpin of the regional economy and supply chain, and as a critical direct and indirect employer. The port serves as a gateway for goods movement, facilitating trade, commerce and industrial activities that drive economic growth and prosperity across the region. Supporting and advocating for the continued vitality of the Port of Baltimore is essential for ensuring the resilience and competitiveness of the regional economy in an increasingly interconnected global marketplace.

We recommend continuing to advocate for policies and initiatives that support the continued growth and competitiveness of the Port of Baltimore, recognizing its pivotal role in driving economic development, job creation, and global trade. We also recommend that stakeholders explore opportunities to diversify the region’s economic base and reduce dependence on a single transportation hub or industry sector.

STAKEHOLDER COLLABORATION Continued collaboration among government agencies, industry associations, and local communities is crucial to staying informed about the evolving impacts related to this incident.

By working together, stakeholders can develop holistic solutions that address the challenges faced by businesses, their employees, and their communities. Furthermore, the lessons learned from this incident should be used to better understand and prepare for the diverse response and support needs that residents, communities, and businesses may encounter during future disasters and crises. This collaborative approach will enhance resilience and foster a more coordinated and effective response to such events.

BUSINESS DISASTER & RESILIENCY PLANNING To further enhance preparedness and support for businesses in the future, the Maryland Chamber Foundation plans to establish a Disaster and Resiliency program. This initiative will aim to create an additional layer of mechanisms to support businesses through a natural disaster or economic crisis, with the goal of expanding the Foundation’s ability to effectively collect and disperse grant funds to support impacted businesses. The experience from the Key Bridge collapse response highlighted opportunities to improve the process of providing financial assistance to businesses during emergencies.

The Disaster and Resiliency program will work towards developing a collaborative, unified information and resource hub to support businesses, along with more accessible grant programs, enabling businesses to receive timely financial support when faced with such disruptive events.

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Building Bridges to Recovery Coalition: Impact Survey

Summary The Key Bridge incident has highlighted the importance of transportation infrastructure and connectivity, as well as the vital role of the Port of Baltimore as a linchpin of the regional economy and supply chain. Additional recommendations include advocating for increased funding for transportation infrastructure projects, developing resilience plans to mitigate the impacts of infrastructure incidents, and supporting policies and initiatives that promote the continued growth and competitiveness of the Port of Baltimore.

Call to Action We urge our partners in government, commerce and transportation to collaborate on implementing these recommendations swiftly to address the challenges faced by businesses and communities affected by the Key Bridge collapse. By working together, we can minimize the economic impact of this crisis and facilitate the recovery of businesses in the region.

Acknowledgments We would like to thank all the businesses and organizations that contributed data and insights to this report, as well as our partners in government and industry for their ongoing support in addressing the challenges posed by the Key Bridge collapse.

FOUNDING PARTNERS:

COALITION PARTNERS:

CORPORATE PARTNERS:

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Building Bridges to Recovery Coalition: Impact Survey

Resources and Recommendations for Businesses and Partners To address the wide-ranging impacts of the Key Bridge collapse and facilitate recovery efforts, it is crucial for affected businesses, industry associations, and community partners to engage with the appropriate agencies and organizations. By leveraging available resources and fostering collaboration, we can work towards mitigating the economic and logistical challenges faced by the region.

SMALL BUSINESS ADMINISTRATION (SBA) •

Businesses are encouraged to explore low-interest SBA loans for financial assistance. Applying for an SBA loan does not commit businesses to accepting the loan, but it allows them to understand their options for financial support.

MARYLAND DEPARTMENT OF TRANSPORTATION & TRANSPORTATION-RELATED ASSOCIATIONS •

Engage with these entities to advocate for regulatory changes that can alleviate transportation challenges, such as increasing over-the-road weight limits, extending hours of service for truckers, and implementing traffic management strategies.

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Collaborate on infrastructure development plans, including bridge design and construction timelines, to ensure business needs are considered.

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Seek guidance and resources related to commuter assistance programs and alternative transportation options for employees.

GOVERNOR’S OFFICE •

Share specific details about the impacts your business or industry is facing due to the Key Bridge collapse, and inquire about available resources and support from the state government.

MARYLAND DEPARTMENT OF COMMERCE •

Leverage the Department’s resources and expertise to navigate the economic challenges posed by the incident, and explore potential assistance programs for affected businesses.

BALTIMORE COMMUNITY FOUNDATION •

Community organizations and individual community members impacted by the bridge collapse may be eligible for grant funds from the Baltimore Community Foundation to address their specific needs.

MARYLAND DEPARTMENT OF LABOR •

Explore programs and funding opportunities offered by the Department of Labor to support businesses in retaining their workforce, providing unemployment assistance, and addressing other employment-related challenges arising from the crisis.

By actively engaging with these entities and fostering open communication, businesses, associations, and partners can access valuable resources, advocate for necessary policy changes, and collectively contribute to the development of comprehensive solutions that address the multifaceted impacts of the Key Bridge collapse.

U.S. Army Corps of Engineers photo by Charles Delano. The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.

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