DENVER (March 22, 2017)—Closing the water infrastructure gap in the U.S. would create 1.3 million jobs and spur total economic activity of $220 billion annually, according to an economic impact analysis commissioned by the Value of Water Campaign (VOW).
The report titled “The Economic Benefits of Investing in Water Infrastructure” was released on World Water Day at a briefing on Capitol Hill in Washington, D.C.
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 1 percent.
- The federal government’s contribution to water infrastructure has fallen to 9 percent, down from more than 60 percent 40 years ago.
The American Society of Civil Engineers recently estimated that over the next decade, the U.S. needs to invest an additional $82 billion per year in water infrastructure, according to a statement about the report.
The VOW Campaign analysis 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.
Many of the nation's water and wastewater systems have operated for a century or more, according to the statement. As pipes, pumps and plants reach the end of their expected lifespans, water infrastructure capital needs are growing rapidly.
“Although we were pleased to see a proposed FY 2018 Budget Request that includes a slight increase to water infrastructure funding programs, it still falls short of the billions that are needed to modernize our systems and to maintain the quality and service that our communities are accustomed to receiving,” said Water Environment Federation Executive Director Eileen O’Neill. “Inadequate investment in our water infrastructure as well as reductions in funding for watershed protections and water-related research pose a real threat to our water resources and our quality of life.”