CAPEX Forecast for U.S. Water Infrastructure Improvements: $683B by 2027

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CAPEX Forecast for U.S. Water Infrastructure Improvements: $683B by 2027

Capital expenditures (CAPEX) for U.S. municipal water, wastewater, and stormwater infrastructure will exceed $683 billion over the next decade, according to new forecasts from Bluefield Research.

“The public’s growing concerns about U.S. water infrastructure are real and increasingly reflected in utility planning documents. Our analysis of utility capital improvement plans in 100 cities demonstrates the wide range of capital needs across the water industry, from manhole covers and fire hydrants to information technologies,” according to Erin Bonney Casey, Research Director for Bluefield Research.

Each system across the U.S. faces unique challenges. Per capita spend by utility for the ten-year forecast period ranges from a low of US$157 in Riverside County, California to a high of US$11,117 in Miami-Dade County. The average across the utilities analyzed is US$2,621. High per capita spend is often related to a specific driver, including environmental consent decrees to remediate stormwater overflows and acute water quality challenges in cities like Jackson, Mississippi or Pittsburgh, Pennsylvania.

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 Source: Bluefield Research

Pipe investment dominates water infrastructure spend

With leakage a key issue plaguing the water industry, investment in pipes continues to dominate water infrastructure spend. Almost two trillion gallons of water per year are lost to leaks, about 15% of the total drinking water treated in the U.S.

The distribution and collection networks for water and wastewater– pipes, pumps, tanks, valves– dominate the forecast, surpassing $375 billion of the ten-year total. Pipes represent 75% of this spend, of which more than 60% is dedicated to rehabilitation of existing networks.

“The underground pipe networks for water, wastewater, and stormwater in the U.S. exceed 1.6 million miles, which is enough for almost three roundtrips to the moon. It is no wonder that this is where the dollars are going and will continue to go”, says Ms. Bonney Casey. “The longer-term challenge is keeping pace financially with network deterioration.”

About the Forecasts:

These and other findings are found in Bluefield’s new report,  U.S. Municipal Water Infrastructure: Utility Strategies & CAPEX Forecasts, 2018-2027,  released in April 2018. These forecasts draw heavily from detailed, bottom-up analysis of capital improvement plans at utilities across in 100 U.S. cities in all 50 U.S. states.

Read full article: Bluefild Research

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