A report from the National Electrical Manufacturers Association (NEMA), Rosslyn, Va., said although the damage from Hurricane Katrina is catastrophic, the electrical industry can expect to benefit from the massive reconstruction efforts.

Many suppliers of power equipment reporting strong demand are already worrying about keeping up with this growing demand in the short term. Electrical manufacturers that utilize petrochemicals such as resin are also facing shortages of input materials that are making it difficult to ramp up production to meet the boost in demand related to hurricane damage to structures. But the electrical industry can expect that strong replacement demand for housing and commercial and industrial structures will increase demand for building equipment and power equipment manufacturers for the remainder of this year and much of next year. Nonetheless, the surge in demand will come at a price. Rising building materials and energy costs will detract from potential gains.

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