NORTH CAROLINA, USA — A local supply chain expert warns that the infrastructure damage from Hurricane Helene will effect the country's economy.
North Carolina A&T supply chain professor Amit Malhan is ringing the alarm, saying the pause in production on vital parts made in West Carolina could take a $34 billion dollar toll.
He told us J.P. Morgan investors estimate the damage could cost around $5 billion dollars a day.
Malhan said he's concerned about the damage to a small town near Ashville called Spruce Pine.
The county posted these pictures online showing flood waters taking over streets and roads during the height of Helene.
The county said a lot of its infrastructure is damaged or destroyed. Malhan said if production halts it could setback the supply chain for normal everyday items that use microchips. He said the city has two mines he credits with producing nearly 90% of an element used in microchips.
"Anything from consumer electronics to automotive and renewables. If that ingredient is not there, you cannot produce the chips," he explained.
Malhan said the other ten percent is found overseas.
We did reach out to the companies who run the mines and are waiting to hear back.
Keep in mind, communication systems are still down in much of the area.
A possible shortage all depends on the recovery process for the small town.
Malhan also says looking at the bigger picture disruption to Asheville's tourism, beer, and the production of big rig parts also could take a toll on the supply chain.
MORE WAYS TO GET WFMY NEWS 2
Subscribe to our daily newsletter Let’s Get 2 It!
Download the WFMY News 2 APP from your Apple or Google Play store.
ADD THE WFMY+ APP TO YOUR STREAMING DEVICE
ROKU: Add the channel from the ROKU store or by searching for WFMY.
Amazon Fire TV: Search for WFMY to find the free app to add to your account. You can also add the app directly to your Fire TV through your Amazon account.