Hurricane Sandy has ravaged multiple states of United States. Millions of households in New Jersey are still struggling without power. Therefore, they have started to buy and use generators for powering up their houses. And this has benefited the generator makers as sales have started to increase suddenly.
Hurricane Sandy has damaged more than $20 billion worth of assets. The gigantic force of Sandy took down power lines, disrupted cell phone services and caused billowing fires throughout the tri-state area and beyond. But people’s life have not stopped. They are fighting to leave the catastrophe behind and stand up once again. For example, to power up electricity in their houses and businesses, they are buying generators. And the incidence of buying generators suddenly has brought a huge amount of profits to generator makers.
Leading U.S. seller of household generator seller Generac (GNRC)‘s Vice President of Marketing Duane Nelson mentioned, if there is no power at the gas station, then people can’t get gas out of the ground to run their portable generator. But standby generators can power up people’s home using the home’s existing natural gas or LP supply. Hence, the sales of portable generator are on the rise.
Aaron Jagdfeld, CEO of the leading U.S. seller of Generac said that due to Sandy ” The company’s shares have jumped 37 percent since Oct. 26.”
Generac believes that hurricane like Sandy will raise consumer awareness to have portable generators or standby generators with them.
Source : BusinessWeek