Businesses Warned of the 'Big One'

Business owners in Hermosa Beach and surrounding communities should prepare now if a massive earthquake hits the area, according to a study from the U.S. Bureau of Labor Statistics released Tuesday.

The U.S. Geological Survey has estimated that economic losses from direct and indirect impacts of a magnitude 7.8 earthquake in Southern California could reach about $213 billion, according to the bureau's study (see accompanying report under photo.)

"As Angelenos, we have all seen the damage that comes with an earthquake," said Gary Toebben, president and CEO of the Los Angeles Chamber of Commerce, at a news conference announcing publication of the bureau’s study.

"It's impossible for us to know for sure… but it is possible for us to prepare," he said. "We should make sure that procedures are in place to respond" to a devastating quake.

If a huge earthquake hits along the southern San Andreas Fault, for example, about 621,000 businesses and 6.3 million employees in Los Angeles, Orange, Riverside and San Bernardino counties would be affected, according to the U.S. Bureau of Labor Statistics.

The quake would also affect an estimated 522,000 jobs in health care, 504,000 jobs in retail, 480,000 in manufacturing and 409,000 in educational services, according to the bureau's study.

The death toll would be in the thousands.

The bureau's report shows that hospital and health care workers—who are critically important in the response to such a disaster—are stationed primarily in the areas expected to incur the worst damage during a big quake.

Overall, a big quake would not only hurt the local economy but also the national economy, because of the far-reaching financial ties firms and industries in Southern California have developed, according to the bureau’s study.

"The more our businesses can do [to prepare] will enable them to reopen quickly after the next big earthquake occurs," said Lucy Jones, a chief scientist with the U.S. Geological Survey. "We can’t prevent an earthquake, but we can prevent it from turning into a catastrophe."

The conclusion of the bureau's study reads, "This regional report should serve as a reminder to public officials, employers, and residents of the vital importance of taking preventive actions to mitigate the potential losses from an earthquake, and to prepare for the potential disruption to businesses and employees."

— City News Service contributed to this report.