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Most Businesses in Valencia’s DANA Disaster Zone Resume Operations

Business recovery after the Valencia disaster surprises experts – how was it achieved

A year after the devastating floods, most industrial and urban companies in the Valencian Community have resumed operations. However, the service sector is still facing challenges in recovering. Details on the current state of businesses in the affected areas.

Exactly one year has passed since powerful rains and floods caused by DANA struck fourteen municipalities in the Valencian Community. Today, 85% of industrial enterprises in the hardest-hit areas have reopened their doors. Only about 6% of factories have not managed to resume operations, and almost 10% have ceased activity for other reasons.

The number of employees registered in the social security system has already exceeded the levels recorded before the disaster. Electricity consumption in industrial zones has also slightly increased compared to last October, indicating a recovery in production activity. However, not all sectors are dealing with the aftermath of the storm at the same pace.

The situation is more complicated in cities. Only 70% of urban businesses, mostly small companies, remain in operation. Many of them have faced significant losses and prolonged downtime—seven out of ten companies suffered severe damage, forcing them to close for several months. Every fifth city business still has not reopened, and another 10% are under repair.

Recovery was funded through owners’ resources, donations, and partially by government payments. About 40% of companies are still waiting for the promised compensation. Most aid applications have been processed, but some business owners have yet to receive a single euro. In industry, 71.5% of requests have been met, 13% remain unanswered, and 15% have only received advance payments.

The situation in the services sector is slightly worse: 86% of compensation claims were approved, 7.5% were rejected, and 6.4% received partial payments. Most of the funds came from insurance companies and state funds, while only a few used loans.

The average damage for urban enterprises amounted to 61,000 euros, with half of the companies estimating losses between 30,000 and 100,000. Only 47% of urban businesses managed to fully restore their previous operating levels.

Despite the challenges, entrepreneurs demonstrated remarkable resilience. Many managed to keep jobs and stay in business, even when they had to invest their own money. Recovery was faster in the industrial sector, while small businesses faced more difficulties. Nevertheless, experts note that without rapid and effective support from the state and insurance companies, such large-scale recovery would have been impossible.

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