AIPE Survey reveals 1 in 4 companies struck by major disaster in '90s.

A survey of 500 facilities management professionals conducted December 1993 by the American Institute of Plant Engineers (AIPE) revealed that approximately one in four survey respondents said their facilities had been struck by a major disaster during the 1990s. Reported disasters ranged from Hurricane Andrew and the Mississippi River flood to tornadoes, earthquakes, lengthy power outages, fires, explosions, and toxic chemical releases. Reports also showed that 26% dealt with the effects of a major disaster in the 1990s.

Despite the rash of recent major disasters in the U.S., 17.5% of respondents indicated having no formal disaster preparedness or response plan. Additionally, 33% of those who reported having a formal plan asserted that they do not test it on a regular basis.

Businesses represented by survey respondents included medical centers, computer manufacturers, paper mills, chemical firms, and grocery store chains. All U.S. geographic regions were represented in the survey. Damage related to the disasters reported included extensive wind and water damage from a hurricane; loss of power for four weeks from a hurricane; loss of important files and computer equipment from a flood; partial loss of a building from a major explosion; and a $30 million loss of a 250,000 square foot warehouse from a fire.

Two-thirds of respondents who reported having dealt with a disaster said their plans helped them significantly in responding to the disaster. Seventy percent of those respondents also reported that changes were made to their plans as the direct result of lessons learned from the disaster.

A majority of respondents said more in-depth planning and conducting actual drills to test their plans were needed. Several respondents also urged facilities' managers to realize that disasters can happen to any business at any time and that comprehensive disaster plans are needed as a result. Some respondents also reported developing disaster plans for the first time as the direct result of their experience with disasters.

Of the respondents who indicated having no formal disaster plan, the most common reason cited was management apathy and the perception that such a plan is not needed.

An overwhelming majority of respondents who reported testing their plans regularly indicated that their plans are tested at least annually.

"The fact that one in four businesses have been struck by a major disaster within a three-year period clearly illustrates why disaster planning is so important," AIPE Executive Director, Michael J. Tillar commented. "Based on the high percentage of respondents who revised plans after their experiences with disasters, the survey results also strongly suggest that disaster plans must be tested frequently if they are to be effective."

AIPE's survey on disaster preparedness was sent to 500 randomly selected AIPE members. A total of 57 facilities management professionals responded.