The devastating impact of Hurricane Florence may be felt well beyond North and South Carolina. Boasting over 460,000 manufacturing workers, North Carolina has the largest manufacturing workforce in the Southeast, and the 10th largest in the U.S. Manufacturing accounts for 20 percent of the state’s GSP, fifth-highest in the nation. North Carolina is home to more than 290 automotive manufacturing establishments and a workforce of over 26,000. North Carolina’s automotive manufacturing industry grew 25 percent in the past five years.
Nationally, North Carolina has the second-largest animal processing and manufacturing cluster, and the sixth-fastest growing confectionary production cluster. Agriculturally, North Carolina is a leading peanut and sweet potato production state.
Research Triangle Park is the largest research park in the U.S. Research Triangle Park is comprised of 200+ companies and 50,000+ employees with industry specializations including biotechnology and pharmaceuticals.
North Carolina’s reach is international in scope. In 2017, India-based technology consultants Infosys chose Raleigh for a 2,000 job technology and innovation hub. Triangle Tyre Co., a Chinese company previously announced plans for a $580 million tire-manufacturing facility.
In South Carolina, greenhouse and nursery products lead the way in crop agriculture but, tobacco is the state's leading field crop followed by cotton. South Carolina reports 400 firms in the private sector component of the SC aerospace cluster, including Boeing who selected North Charleston for its final assembly and delivery facility. South Carolina leads the US in the export of completed passenger vehicles. It also ranks first in both the production and export of tires, accounting for nearly one-third of the US market share. Among the 400 life sciences industry companies with global reach residing in South Carolina are Bausch + Lomb, GlaxoSmith Kline, Lenscrafters, Inc., and Nutra Manufacturing USA, Inc.
Damage to these businesses in the Carolinas may trigger claims for contingent business interruption (“CBI”) as insureds face disruptions in their supply or distribution chains. A typical CBI provision may provide coverage for:
This policy ... is extended to cover the actual loss sustained by the Insured resulting from the necessary interruption of the business conducted by the Insured, whether partial or total, caused by loss, damage or destruction covered herein...
