Capital expenditures on U.S. municipal water, wastewater and stormwater infrastructure will rise 11 percent in the next decade, in part to cope with poor water quality, environmental mandates and crumbling systems in some areas, according to a recent report from Bluefield Research that analyzed planned spending by water systems in 100 major U.S. cities.
Key takeaways from the report include:
- Utilities are investing more in water infrastructure and dollars per capita are on the rise. Per capita spending by utility for the ten-year forecast period ranges from a low of $157 in Riverside County, California to a high of $11,117 in Miami-Dade County.
- Pipe investment dominates water infrastructure spending. The underground pipe networks for water, wastewater and stormwater in the U.S. exceed 1.6 million miles. Pipes represent 75 percent of total spending on distribution and collection networks for water and wastewater for the forecast period, of which more than 60 percent is dedicated to rehabilitation of existing networks.
- Utilities are prioritizing resiliency in light of concerns over stormwater impacts. Concerns about the impact of large storm events on the environment are driving an increase in combined capital expenditures from $31.8 billion in 2018 to $35.3 billion in 2027, including funding for new approaches, such as green infrastructure.
- Capital expenditures for information technology-inspired segments like smart water will contribute more than $16 billion by 2027. Utilities are now investing in “big data” solutions, as the water sector looks for more efficient ways to map, analyze, rehabilitate and operate aging water and wastewater systems.