Water Infrastructure Investments Result In Economic Growth

New analysis finds closing the investment gap in water infrastructure would create 1.3 million jobs and result in economic growth.

Source: Pixabay

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.” 

The analysis, conducted by Hatch, falls against a national backdrop of aging infrastructure. Many of the nation's water and wastewater systems have operated for a century or more. As pipes, pumps, and plants reach the end of their expected lifespans, water infrastructure capital needs are growing rapidly.

But, as the report noted, the federal government's contribution to water infrastructure capital spending has fallen from 63 percent of total capital spending in 1977 to just nine percent of total capital spending in 2014.

The American Society of Civil Engineers (ASCE) recently estimated that over the next decade, the US needs to invest an additional $82 billion per year in water infrastructure at all levels of government, and all over the country.

The Value of Water Campaign analysis released today showed capital needs distributed throughout the nation with 23 percent of needs reported in the Midwest, 20 percent in the Northeast, 23 percent in the West, and 34 percent in the South.

Key takeaways of the report:

• Closing the water infrastructure investment gap would result in annual $220 billion in economic activity and result in 1.3 million jobs annually.
• 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 percentage.
• The federal government's contribution to water infrastructure has fallen to nine percent, down from more than 60 percent 40 years ago.

Radhika Fox, Director of the Value of Water Campaign and CEO of the US Water Alliance said: "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.

Read more at: Value of Water and Just Means

Read the full report here.

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Taxonomy

• Integrated Water Management
• Infrastructure
• Integrated Infrastructure
• Infrastructure Management
• Infrastructure
• Infrastructure
• Integrated Water Resources Management (IWRM)
• Pipes and Pipelines