Aging water infrastructure will cost U.S. businesses $147 billion ands households $59 billion over the next decade, according to a new report from the American Society of Civil Engineers (ASCE). The report says the nation’s water and wastewater infrastructure systems are aging and overburdened.
Unless new investments are made, by 2020 unreliable and insufficient water infrastructure will cost the average household $900 a year in higher water rates and lower wages, the report says. 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 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, completed by the Economic Development Research Group (EDR) with Downstream Strategies, is the first of its kind to link the condition of water infrastructure to economic performance. “We’ve all seen the impact aging water and wastewater infrastructure has on our daily lives,” said Steven Landau of EDR, the lead author. “From broken water mains to boil-water alerts, failing to invest in this vital part of our country’s infrastructure has clear economic consequences”
Annual capital investment in water infrastructure is approximately $36.4 billion. To meet the needs of a growing population for clean and available water, the annual investment must increase to $91 billion, the report says. “Clean water is fundamental to our economy and our health,” said ASCE president Andrew Herrmann, P.E. “We depend on water infrastructure, but our drinking water and wastewater systems are aging. Some of our water systems are 100 years old and in desperate need of replacement. When those systems fail, they disrupt businesses and families and cost all of us more in the end.”
The report’s projections assume needs and available funding based on current trends, and do not adjust for possible costs associated with climate change, changes in regulations, or other factors. The full report is at www.asce.org/failuretoact.
