In this article, we will be studying the aftereffects of earthquakes while navigating through major construction companies supporting resilient buildings, and the 20 countries hit most by earthquakes. If you wish to skip our detailed analysis, you can move directly to the 5 Countries Hit Most by Earthquakes.
Earthquakes: An Unforeseen Natural Calamity
As reported by NASA, an earthquake is a tremble caused by a movement of the earth’s outer layer, causing vibrations known as seismic waves in scientific terms. These waves end up causing destruction in both short and long term. Short term effects include injuries and fatalities, destruction of transport and communication networks, or fires from gas pipe explosions. Although the short term consequences seem serious, the long term impacts are even more detrimental. Many landmarks might be lost and a huge cost will have to be incurred to rebuild the infrastructure lost to an earthquake. Aftershocks from a prior earthquake can make the situation worse in the earthquake-hit region.
The Economic Impact
Earthquakes can inflict damages to the economy other than resulting in a loss of human lives. However, this economic impact is likely to vary, depending upon certain factors such as the existing economic state and the ability of a country to recover from the economic loss. Thus, the impact across countries is diverse, with poorer countries that have fewer resources being more subject to tougher post-earthquake conditions.
In 2023, The Center for Economic and Policy Research (CEPR) reported that the GDP is 1% point lower on average for economies that are hit by earthquakes than those which are not. The cost of rebuilding housing, infrastructure, and productive capacity has been estimated to be between $25 billion and $50 billion. Further analysis of the massive earthquake that hit Turkey in February 2023 indicated that the southeast of Turkey faced widespread damage across roads, airports, and electricity infrastructure. The earthquake consequences also included a fire at Turkey’s largest port, Iskenderun port. However, since the earthquake happened at the beginning of the year, the effects on the GDP are more likely to be offset by the reconstruction impact throughout the year.
Companies Active in Developing Resilient Infrastructure
In September 2022, The Federal Emergency Management Agency (FEMA) reported seismic provisions for new buildings and the construction industry. The agency reports that the number of earthquake resilient buildings in an earthquake-hit area also affects the impact of the earthquake in terms of the damage caused. Buildings in high earthquake-risk areas should include several features in their structural design such as stable foundations, adequate stiffness and strength, ductility and toughness as well as adequate separation from neighboring buildings. The structure should also be regular, with its mass, strength, and stiffness distributed such that it will move in a uniform motion when subject to ground shaking. This helps avoid concentrated damage in some building parts thereby decreasing the potential for building collapse.
Several construction companies around the world aid in constructing safe and sound buildings that are less vulnerable to natural disasters such as earthquakes. Since the use of the right building techniques can stop buildings from collapsing during an earthquake, companies including CRH plc (NYSE:CRH), AECOM (NYSE:ACM) and Lennar Corporation (NYSE:LEN) offer the best-in-class services for construction. You can also view the largest construction companies in the US.
CRH PLC (NYSE:CRH) is a global manufacturer and distributor of building materials such as ready mixed concrete, cement, and hardscape products including pavers and retaining walls. The company also has composite access chambers, retention sockets, and passive safety systems to offer. On August 24, CRH PLC (NYSE:CRH) reported strong earnings for the first half of 2023, ending June 30, 2023. The company reported earnings per share of $1.58, up 31% year-over-year. The company’s revenue for the first half amounted to $16.1 billion, up 8% year-over-year. The company’s strong earnings can be attributed to its acquisitions in the fiscal year 2022 as well as the underlying demand for its products during the first half of 2023. You can also take a look at the best cement stocks to invest in.
AECOM (NYSE:ACM) operates worldwide, offering construction and infrastructure consulting services. The company believes that the infrastructure must withstand the threats arising from natural disasters and weather conditions. It has developed an approach named Converged Resilience which helps build integrated strategies for resilient and lasting infrastructure. The company has also employed a low-damage design that allows buildings to function in a way that they are repairable after an earthquake, by reducing the damage to readily replaceable elements rather than destroying the primary structure. As a part of its 100 Resilient Cities program, the company has also supported Mexico City from Mexico which is a major earthquake-prone country. On June 20, the company reported that it has collaborated with the Ukrainian government to undertake the responsibility of helping the government with the restoration and reconstruction of national infrastructure projects for long-term resilience. The company has also engaged in reconstruction post-natural disasters in major earthquake-hit areas such as Nepal, Haiti, Japan, and Indonesia.
Lennar Corporation (NYSE:LEN) is a dominant homebuilder in the United States. The company has focused on reinforced concrete foundations and impact-resistant windows as a part of its ‘Lennar’s everything included’ program. Thus, the company helps build homes with stronger structures that can resist environmental hazards. The company has collaborated with ICON to make the biggest community of 3D-printed homes with walls that tend to stick around for long. These homes are more durable, environmentally sustainable, and resilient. On July 22, the company reported that it has launched its 3D-printed model homes for the public. However, construction for many of these houses is still underway.
Now that we have discussed the potential impacts of earthquakes and some companies that are developing solutions for resilient buildings and infrastructure, let’s take a look at the countries hit most by earthquakes.
20 Countries Hit Most by Earthquakes
Methodology
In order to compile a list of the top 20 countries hit most by earthquakes, we sourced data from Earthquake List. Our source uses two primary official databases for summing up earthquakes for every country and updating the records daily. The data for the European countries has been gathered from the European Mediterranean Seismological Centre’s (EMSC) country profiles for 2023. The second database belongs to the United States Geographical Survey (USGS)’s earthquake catalog. Earthquakes with a magnitude of 4 and above have been considered for this research since lower magnitudes are difficult to locate since there is not enough data and such earthquakes are only reported if they cause massive damage which is very rare. These government agencies aggregate data on their end through global institutions reporting on seismic information. We have ranked these countries in ascending order of the total earthquakes they have experienced in 2023, as of October 6.
20 Countries Hit Most by Earthquakes
20. India
Total Earthquakes in 2023: 184
India being one of the top countries hit by earthquakes, saw 184 earthquakes in 2023. The country is situated on the intersection of the Indian Plate, the Eurasian Plate, and the Arabian Plate whose movements drive earthquakes.
19. Russia
Total Earthquakes in 2023: 195
Russia has also been a victim of earthquakes. The country witnessed 195 earthquakes in 2023. The country is based in one of the most seismically active regions in the world, the Kuril-Kamchatka Trench.
18. Honduras
Total Earthquakes in 2023: 213
Honduras has faced 213 earthquakes in 2023, making it one of the most earthquake-hit countries in the world. The country is positioned on a portion of the Caribbean Plate which leads to seismic activity.
17. Nicaragua
Total Earthquakes in 2023: 235
Nicaragua is another country most hit by earthquakes as evident from 235 earthquakes taking place in the country so far in 2023. The movement of tectonic plates in the area has led to some devastating earthquakes in the country’s past.
16. El Salvador
Total Earthquakes in 2023: 261
El Salvador, with a total of 261 earthquakes in 2023, is one of the most earthquake-hit countries in the world. The landslides following most of the earthquakes in the country led to further damage.
15. Afghanistan
Total Earthquakes in 2023: 270
Afghanistan has also been hit by many earthquakes in the past, some of which caused massive destruction. The country has been subject to 270 earthquakes so far in 2023.
14. Tonga
Total Earthquakes in 2023: 272
Tonga is another one of the 20 countries that are hit by earthquakes the most. As of 2023, the country has been hit by 272 earthquakes so far. The Tonga-Kermadec subduction zone is located near the country which leads to tectonic activity.
13. Tajikistan
Total Earthquakes in 2023: 277
The movement of tectonic plates in the geological region holding Tajikistan leads to earthquakes in the country. The country is one of the most earthquake-hit countries and has faced a total of 277 earthquakes in 2023.
12. Argentina
Total Earthquakes in 2023: 283
Argentina has faced significant earthquakes over the last decade. In 2023, the country was hit by 283 earthquakes, making it one of the countries hit most by earthquakes.
CRH PLC (NYSE:CRH), AECOM (NYSE:ACM) and Lennar Corporation (NYSE:LEN) are some of the leading companies developing solutions for resilient buildings.
11. China
Total Earthquakes in 2023: 344
China is another earthquake-hit country that has faced earthquakes as a normal occurrence due to seismic activity in the Asian region. The country has been subject to 344 earthquakes in 2023 so far.
10. Peru
Total Earthquakes in 2023: 435
The top 20 countries hit most by earthquakes also include Peru. The country is based in a seismic zone which leads to earthquakes. In 2023, 435 earthquakes hit Peru.
9. The Philippines
Total Earthquakes in 2023: 512
The Philippines is another state that has been hit by earthquakes the most. The country experiences many earthquakes as a result of the movement of regional tectonic plates and has been subject to 512 earthquakes in 2023.
8. Papua New Guinea
Total Earthquakes in 2023: 534
Earthquakes have been quite frequent in Papua New Guinea which is positioned close to the Pacific Ring of Fire which is geologically active. The country has experienced a total of 534 earthquakes in 2023.
7. Guatemala
Total Earthquakes in 2023: 547
Guatemala is one of the countries most hit by earthquakes since 547 earthquakes hit the country in 2023. The country is situated in a high tectonic region.
Investors looking to increase their exposure to the construction industry can look up CRH PLC (NYSE:CRH), AECOM (NYSE:ACM) and Lennar Corporation (NYSE:LEN).
6. Chile
Total Earthquakes in 2023: 673
Chile has also been subject to many earthquakes in 2023. The country has been hit by 673 earthquakes this year so far. The country is located on the South American Plate and the Nazca Plate which have high tectonic activity.
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Disclosure: None. 20 Countries Hit Most by Earthquakes is originally published on Insider Monkey.