Companies in eight Valencian municipalities still have not recovered from DANA a year later

The tragic DANA that devastated a good part of the province of Valencia at the end of October 2024 had devastating effects on companies in the most affected municipalities. The turnover of companies in ‘ground zero’ – the 15 most affected locations – fell by up to 10.6% in the case of smaller companies. A year after the catastrophe, most companies have recovered from the blow, but there is still a core of municipalities where the business fabric is not lifting its head.

A study published this Monday by the Valencian Institute of Economic Research (IVIE) reflects that The companies of eight of the 28 most affected Valencian municipalities have not yet recovered its billing prior to the catastrophe. Among them are the towns of Aldaia —where company sales remain 0.8% below the pre-DANA billing level—, Algemesi (-1.5%), Paiporta (-5.2%), Alfafar (-6.9%) and Llocnou de la Corona (-8.5%), all of them in ground zero of the catastrophe. They complete the list Godelleta (-5.3%) and Chera Sot (-34.6%).

The companies in the rest of the municipalities that were in a level two emergency situation are already billing more than before the climate catastrophe. Among the towns that have recovered the best, the following stand out: Torrent (19.3% more turnover), Buñol (15.5%), Cheste (14.2%), Beniparrell (13.3%), Sedaví (13%), L’Alcudia (12.4%), Gestalgar (11.5%) or Picanya (9.2%). Other municipalities hard hit such as chiva (8.8%), Utiel (8.5%), Catarroja (8.1%) or Massanassa (6.9%) have also left the worst behind.

The entire turnover of companies in the 75 Valencian municipalities affected by DANA It is already 6.1% above what it was before the catastrophewhile among the municipalities that reached emergency level two the rebound reached 7.4%. However, within ‘zone zero’ business sales have grown somewhat less, specifically, 4.6%. In any case, it must be taken into account that these figures do not discount the effects of inflation. Therefore, in real terms, the list of municipalities that have not yet recovered would be even longer.

The little ones suffered more

The IVIE study points out that the impact of DANA was much greater for small companies (less than 6 million turnover) than for the large ones. Within the segment of larger companies, turnover already exceeds its pre-tragedy level by 6.4%. However, among smaller firms, the percentage drops to 5%. More specifically, small companies in the municipalities that were in emergency level two now invoice 3.5% more, while large companies do so 9.2%.

At the sector level, In ‘ground zero’ there are still two major victims who have not yet recovered from the blow. These are industry, which still registers sales 0.6% lower than before DANA, and transport and communications, which is still 6.5% lower. However, most sectors have recorded a significant increase in sales after the shock initial.

Regarding employment, The IVIE report highlights that 33,042 workers were protected by ERTE. Within ‘zone zero’, 17% of Social Security affiliates were included in this system. Currently, there are still 3,489 workers included in ERTE, of which half are in ‘zone zero’ municipalities. Fundamentally, in the manufacturing industry and commerce.

“It is important to maintain support for the productive fabric of the affected areas, but selectively depending on the degree of impact and the sector of activity,” the report states. “Public efforts should be focused on recovering capital from affected areassince, otherwise, the growth potential in the affected areas could be reduced,” he adds.