Time is of the essence in an emergency

In a world that is subject to permanent crisis, the speed at which a company can resume business after a catastrophic event has become critically important, as Michihisa Kato, managing director, BELFOR Japan explains.

Companies in Asia Pacific face an increased risk of catastrophic property damage from a lack of resilience and an increase in natural disasters and extreme weather.

A study from FM Global found that key manufacturing sites in Asia are exposed to high levels of climate and supply chain risks. While Western Europe states like Denmark, Switzerland, Luxembourg and Germany make up most of the top five, many Asian regions feature much lower in the resilience rankings.

The likes of China, India and Vietnam all feature poorly in terms of exposure to climate risk. And while Singapore, Japan and Vietnam perform much better in that regard, all three are highly exposed to natural catastrophe risks.

Furthermore, these physical risks have increased in recent years due to a greater number of fires and natural catastrophes. Aside from the risk to life, fires can cause significant damage to property and equipment within a matter of hours, so time is of the essence. For example, rust can spread extensively if left untreated.

But it is not just the physical damage to premises that costs a company valuable money, it is the business interruption, particularly manufacturing centres that export goods to overseas consumers. For example, research from Schroders and Cornell University also found that extreme heat and flooding puts the largest fashion manufacturing countries, such as Bangladesh, Cambodia, Pakistan and Vietnam, at risk of an estimated $65bn in export losses by 2030.

And while insurance will, eventually, provide compensation for the physical damage and, in some cases, for business interruption, it will not restore the lost customers that could ultimately prove fatal for a business.

This is where a disaster recovery company such as BELFOR comes in. Since our inception in 1993, BELFOR Asia has helped a diverse range of industries – from mining and metals, to scientific, medical and semiconductor, and most industries in-between – recover buildings, machinery and all types of equipment, to bring them back to business in the shortest possible time.

There are typically three stages to the recovery process. The first step is an onsite inspection to ascertain the extent of the damage. Standardised equipment can then be brought in to begin the recovery. The final stage is the restoration of the facility to full operational activity.

For example, in 2018 BELFOR was involved in a restoration project for a cardboard manufacturing company in western Japan that had experienced extensive flood damage. Heavy rainfall had caused the river to burst its banks, with flooding to nearby businesses.

Despite the factory being on high ground, there was 80cm of flooding, damaging equipment, control panels and motors. BELFOR brought its full recovery kit to the site and performed precision cleaning to reduce the recovery time from around six months to less than a single month.

Some companies may rely on their insurers to manage the restoration process, or even look to employ construction or cleaning companies or emergency service providers following an event. However, there are essential benefits that come from employing a disaster recovery and restoration specialist such as BELFOR.

The main benefit is the expertise and experience that BELFOR can provide through the engineers and risk specialists employed directly by the company, as well as an extensive network of specialist suppliers and contractors. This means that BELFOR can respond quickly and in a coordinated way rather than leaving the client to manage the multiple processes involved in a disaster recovery programme.

Another benefit is time. In the event of a natural disaster, there will be numerous companies all looking for help and restoration. Even when your insurance policy includes restoration services, you may find yourself in a queue along with all the other clients of that carrier.

If you have already partnered with a restoration company such as BELFOR, this puts you to the very front of the queue. BELFOR has a particular service designed especially for such disasters when time is of the essence and the demand for valuable but limited resources is almost overwhelming.

BELFOR has addressed the demand for services by establishing RED ALERT, an emergency response service that prioritises clients at such times as the immediate aftermath of a flood. The service has proved especially popular in Europe following a flood in the industrial region of Emilia-Romagna in Italy earlier this year.

Matthias Beck, head of Insurance and risk management at WÜRTH Group, German industrial parts distributor and a RED ALERT client, said: “When I received the call I could immediately reassure my Italian colleagues: BELFOR is coming, they have the resources, we know each other well. We are a RED ALERT client and therefore we have priority status.”

The status of being a RED ALERT client can also be reassuring for a company’s insurers. Ute Roch, head of insurance at German pharmacy chain Rossmann, said: “After the heavy rain of 2021, many damage reports arrived from our stores. Internally, we were able to show the organisation: RED ALERT takes action, we are prepared, we receive help. It’s good to have BELFOR as a partner.”

It is critical that companies prepare for a disaster, and judging by the number of calls we are receiving about our restoration services, the message is resonating. Hopefully, it will not take another natural disaster or catastrophic event for Asia-Pacific companies to revise their response plans in order to answer the fundamental question – how can we ensure that we do not have to wait to secure the vital resources needed to get back to business?