Water Infrastructure Investments to Result in $220 Billion in Economic Growth
Closing the water infrastructure funding gap in the U.S. could result in a $220 billion boost in economic activity, as well as create 1.3 million jobs annually. These findings, and more, were recently released in a new Value of Water Campaign, “The Economic Benefits of Investing in Water Infrastructure.”
Aging infrastructure has been a growing issue for many of the nation's water and wastewater systems, many of which are operating well past their intended lifespans. According to the analysis, the federal government's contribution to water infrastructure capital spending dropped 54 percent from 1977 to 2014, making funding infrastructure improvements more vital.
Other key takeaways from the report:
- The U.S. needs to invest a total of $123 billion per year in water infrastructure over the next 10 years to bring systems to a state of good repair.
- Addressing infrastructure funding challenges could save businesses up to $94 billion in annual sales by avoiding higher costs in the form of higher water rates, costs of self-supply, or costs of relocating to better-served areas.
- Our national water infrastructure investment gap is $82 billion per year.
- A one-day disruption in water service would cost $43.5 billion in sales and $22.5 billion in GDP. An eight-day disruption would shrink the annual GDP by one percent.
- The federal government's contribution to water infrastructure has fallen to nine percent, down from more than 60 percent 40 years ago.
"The report findings make it clear that investments in water infrastructure generate high quality jobs, increase the competitiveness of American businesses, and lead to a significant injection of economic activity throughout the nation," said Radhika Fox, Director of the Value of Water Campaign and CEO of the U.S. Water Alliance.
Black & Veatch is a proud partner of the Value of Water Campaign.