Water Infrastructure Could Burden U.S. Economy, Report Claims

Aging water infrastructure will cost U.S. businesses $147 billion over the next decade, a new report from the American Society of Civil Engineers (ASCE) found. The report was released in mid December.

America's water and wastewater infrastructure systems are aging and overburdened, with many of them built around the turn of the century. Unless new investments are made, by 2020 unreliable and insufficient water infrastructure will cost the average American household $900 a year in higher water rates and lower wages. American businesses can expect an additional $147 billion in increased costs and the economy will lose 700,000 jobs by 2020.

The report, "Failure to Act: The Economic Impact of Current Investment Trends in Water and Wastewater Treatment Infrastructure," shows that a modest investment in drinking water, wastewater, and wet weather management can prevent these economic losses.

The analysis showed that by 2020, the gap between what is being spent on water infrastructure and what is needed to meet the nation's needs will reach $84 billion. The report was completed by the Economic Development Research Group (EDR) along with Downstream Strategies and is the first study of its kind to link the condition of America's water infrastructure to economic performance.

"We've all seen the impact aging water and wastewater infrastructure has on our daily lives. From broken water mains to boil water alerts, failing to invest in this vital part of our country's infrastructure has clear economic consequences," said Steven Landau of EDR, the lead author of the report.

"The longer we wait to make needed repairs and upgrades, the more acute these problems become and the higher the costs to American families and businesses."

Annual capital investment in water infrastructure is approximately $36.4 billion. In order to meet the needs of a growing population for clean, available water, the annual investment must increase to $91 billion. An additional $9.4 billion per year between now and 2020 would avoid $21 billion per year in costs to households and businesses.

For more information, see www.asce.org/failuretoact