Hurricane Katrina tore up Mike Shaw’s Louisiana auto dealership one year ago but didn’t put a dent in his bottom line.
So many residents had to replace storm-damaged vehicles that revenues at Shaw’s Honda of Slidell increased by about $150,000 a month – even though employees worked out of two construction trailers for 10 months while the building underwent $1.9 million in repairs.
“An increase in sales made up for losses. We had substantially more car sales with no expenses, no electric, no garbage collection, no advertising. Most of our semi-fixed expenses were gone,” Shaw said.
The dealership is one of a number of Colorado companies to see its business increase over the past year as a result of the ferocious damage caused by Katrina.
Others include Douglas County-based CH2M Hill, an engineering and construction giant that has been working on temporary housing for hurricane evacuees.
The company has hauled and installed 23,000 trailers to house those who lost homes, said CH2M Hill spokesman John Corsi.
“We are continuing to do the maintenance on those facilities to make sure the proper infrastructure is in place, water, plumbing and electrical,” he said.
CH2M Hill was one of four companies that won no-bid contracts from the Federal Emergency Management Agency to house Katrina evacuees. The contracts, worth up to $500 million each, have drawn fire from critics who say they should have been open to bidders.
CH2M Hill subsequently won another FEMA contract for up to $250 million in disaster-relief work in a competitive bidding process.
On a separate $6 million contract with the Army Corps of Engineers, the company is helping to restore pumps damaged by Katrina, said Steve Mathies, CH2M Hill vice president, who heads the company’s Louisiana operations. CH2M Hill was awarded that contract after a competitive bidding process, he said.
Another engineering firm, Broomfield-based MWH Global, was midway through a 10-year, $650 million contract with New Orleans to manage the assessment and repair of the city’s aging sewer system when Katrina struck.
That work was suspended while the company focused on debris clean-up and other tasks. Among the jobs MWH performed were sewer manhole and pipeline inspections. The company identified and recommended repairs totalling $4.7 million.
Other smaller Colorado companies provided everything from temporary workers to recreational vehicles used for temporary housing.
ATA Services, Lakewood, temporary workers; $8.6 million FEMA contract.
Manufactured Plastics & Distribution, Monument, reinforced plastic sheeting; $13.1 million FEMA contract.
RV America, Wheat Ridge, travel trailers; $1 million FEMA contract.
Spencer for Hire, Steamboat Springs, firefighting equipment rental; $491,400 FEMA contract.
Mesa Verde Aviation, Lewis, aviation fuel; at least $1.2 million in FEMA contracts.
Staff writer Tom McGhee can be reached at 303-954-1671 or tmcghee@denverpost.com.
