Demand Surge and the Midwest Flooding of 2019: Challenges and Lessons for Future Resilience
In 2019, record-breaking flooding devastated the Midwest, inundating communities across states like Nebraska, Iowa, Missouri, and South Dakota. Triggered by heavy rainfall, snowmelt, and levee breaches, the floods caused widespread destruction of homes, farmland, and infrastructure, resulting in an estimated $12.5 billion in damages. As residents began to rebuild, they faced the challenges of demand surge—the sharp increase in costs for labor, materials, and services due to heightened demand in the aftermath of the disaster.
This article explores the causes and effects of demand surge during the 2019 Midwest floods, its impact on recovery efforts, and what lessons can be learned to mitigate similar challenges in the future.
The Scale of the 2019 Midwest Flooding
The Midwest flooding of 2019 was one of the most widespread and damaging flood events in U.S. history. Key statistics include:
States Affected: Over a dozen states were impacted, with the hardest-hit areas in Nebraska, Iowa, and Missouri.
Flooding Duration: Floodwaters persisted for weeks in some areas, causing prolonged damage.
Infrastructure Damage: Dozens of levees were breached or overtopped, submerging farmland, roads, and towns.
Agricultural Losses: The floods disrupted planting seasons, destroyed stored crops, and killed livestock, significantly impacting the region's agricultural economy.
Residential Damage: Thousands of homes were damaged or destroyed, leaving residents with costly repairs and rebuilding efforts.
What is Demand Surge Again?
Demand surge occurs when a disaster creates a sudden and widespread need for materials, labor, and services, driving up costs. In the Midwest floods of 2019, the extensive damage led to significant demand for construction supplies, skilled labor, and agricultural recovery resources.
Causes of Demand Surge During the 2019 Flooding
1. Widespread and Sustained Damage
The scale and duration of the flooding caused simultaneous demand for repairs and rebuilding across multiple states:
Homes, barns, and silos were destroyed or heavily damaged.
Entire communities needed to rebuild infrastructure like levees, roads, and bridges.
2. Agricultural Losses
The flooding significantly impacted the agricultural sector, creating additional demand for:
Equipment repair or replacement.
Rebuilding grain bins, silos, and barns.
Soil Remediation and drainage system repairs for flooded farmland.
3. Limited Local Labor
The extensive damage created a severe shortage of skilled labor:
Many contractors were fully booked for months, leaving homeowners and farmers to wait for repairs.
Out-of-state workers were brought in, increasing costs for travel, lodging, and per diem.
4. Material Shortages
Supply chains were strained due to the high demand for construction materials such as lumber, Concrete, and Steel:
Transportation routes were disrupted by flood-damaged roads and railways, delaying deliveries.
The simultaneous rebuilding efforts in multiple states compounded shortages.
5. Insurance Gaps
A significant number of affected homeowners and farmers did not have Flood Insurance, leaving them to pay for repairs out of pocket. This increased competition for affordable materials and contractors.
Impact of Demand Surge on Recovery
1. Increased Costs for Homeowners and Farmers
The cost of rebuilding surged as demand exceeded supply:
Lumber prices rose by 20% in some areas.
Repairs for silos and grain bins cost significantly more due to limited contractors.
2. Delayed Recovery Efforts
Many communities faced extended recovery timelines:
Homeowners waited months for contractors to become available.
Farmers missed planting seasons due to delays in repairing equipment and preparing fields.
3. Economic Strain on Local Governments
Municipalities faced higher costs for rebuilding levees, roads, and public facilities, stretching already limited budgets.
4. Mental and Emotional Stress
Prolonged displacement, financial strain, and delayed recovery efforts took a toll on residents’ mental health, highlighting the broader social impacts of demand surge.
Lessons Learned from the 2019 Midwest Flooding
1. Improve Flood Mitigation Infrastructure
Investing in resilient infrastructure is essential to reduce future damage:
Levee Upgrades: Strengthen levees to withstand extreme flooding.
Drainage Improvements: Enhance drainage systems to manage excess water.
Wetland Restoration: Use natural floodplains and wetlands to absorb floodwaters.
2. Expand Flood Insurance Participation
The floods revealed significant gaps in flood insurance coverage:
Increase awareness about the National Flood Insurance Program (NFIP), even in areas outside high-risk flood zones.
Provide subsidies or incentives for farmers and homeowners to purchase flood insurance.
3. Strengthen Supply Chain Resilience
To address material shortages and delays:
Encourage regional stockpiling of construction materials in disaster-prone areas.
Work with suppliers to prioritize disaster-affected communities.
4. Develop Local Labor Forces
Labor shortages can be mitigated by:
Offering training programs for construction, electrical work, and other skilled trades.
Establishing disaster response teams with local contractors and volunteers.
5. Streamline Recovery Funding
Speeding up insurance payouts and government aid can help reduce demand surge:
Use technology to process claims and disburse funds faster.
Ensure that disaster relief programs are accessible and well-publicized.
How Demand Surge Differed from Other Disasters
1. Agricultural Focus
Unlike hurricanes or wildfires, the 2019 floods had a unique impact on the agricultural sector, requiring specialized repairs for silos, barns, and fields.
2. Multi-State Impact
The simultaneous recovery efforts across multiple states amplified the strain on resources and labor.
3. Prolonged Flooding
The extended duration of the floods worsened damage, particularly to infrastructure and farmland, increasing the overall cost and complexity of recovery.
How Homeowners and Farmers Can Prepare
1. Secure Comprehensive Insurance
Ensure you have flood insurance through the NFIP, even if you live outside a high-risk zone.
Farmers should consider additional coverage for equipment, livestock, and stored crops.
2. Build Emergency Funds
Set aside savings to cover out-of-pocket expenses for repairs or temporary housing.
3. Advocate for Resilient Infrastructure
Support community efforts to upgrade levees, drainage systems, and other flood mitigation measures.
4. Participate in Community Recovery Efforts
Work with neighbors to pool resources, share labor, and reduce costs during rebuilding.
Additional Resources
FEMA: Disaster assistance programs and mitigation grants. Visit FEMA.gov.
National Flood Insurance Program (NFIP): Information on flood insurance and coverage options. Visit FloodSmart.gov.
USDA: Resources for farmers affected by disasters, including loans and grants. Visit USDA.gov.
Wrap-Up
The 2019 Midwest floods underscored the severe economic and logistical challenges of demand surge in disaster recovery. From labor shortages to material price increases, the event highlighted the need for better preparedness, resilient infrastructure, and expanded insurance coverage. By learning from this disaster and implementing proactive measures, communities can better navigate future floods and reduce the financial and social impacts of demand surge.