It will slow them down for a few months but they will be back soon. Several years ago (8ish) the place where I work (production machine shop) went up in flames. About half the plant burned down, roughly 45,000 sq. ft. All of our cutoff machines, saws, several AB's and AC's were destroyed. Even most of our inspection equipment including our CMM. We were back at work the next day with plywood and plastic walls in early winter. We ran what machines survived, worked at salvaging anything else we could. We rented out space for cutoff, saws and a few other machines. Begged, borrowed, rented and bought new machines. It was tough that whole winter. Production was tough to meet. Building a new addition to what was left was finished by late spring/early summer and new machines were added.
Within 8 months from a near closure we put things back together with a better facility. If they have good insurance then they won't be down long and may even be better for it.