Report: Closing Water Infrastructure Investment Gap Strengthens U.S. Economy

According to an economic impact analysis commissioned by the Value of Water Campaign, closing the water infrastructure gap in the U.S. would create 1.3 million jobs and spur total economic activity to $220 billion annually. The report, “The Economic Benefits of Investing in Water Infrastructure” will be shared for the first time today, World Water Day, at a briefing on Capitol Hill.

“Water is essential to everything we do. Every household and business in every community depends on water and wastewater services. When we commit to the investments needed in our water infrastructure, we will all reap the benefits through improved infrastructure and more jobs,” said CH2M State and Local Governments Sector President Greg McIntyre.

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, even though the infrastructure needs are growing, the federal government’s contribution to water infrastructure capital spending has fallen from 63 percent of total capital spending in 1977 to 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 VOW Campaign analysis released today showed capital requirements distributed throughout the nation, with 23 percent needed in the Midwest, 20 percent in the Northeast, 23 percent in the West and 34 percent in the South.

Key takeaways of the report, include:

  • Closing the water infrastructure investment gap would result in $220 billion in economic activity and result in 1.3 million jobs
  • 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

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