Failure to invest in long-term infrastructure upgrades could result in trillions of dollars in lost business productivity and severely disrupt the movement of people and freight, according to the American Society of Civil Engineers.

In a report released in January, “Failure to Act: Economic Impacts of Status Quo Investment Across Infrastructure Systems,” the association projects a decline in business productivity of about $23 trillion over the next two decades without substantial funding to address the nation’s infrastructure needs, including roads, bridges, tunnels, power grids and water systems.

The report also says that continuing with subpar infrastructure through 2039 could lead to a loss of $10 trillion in gross domestic product as well as 3 million jobs. It also said that even with planned investments of $7.3 trillion there would still be a $5.6 trillion investment gap by 2039.

The report notes that the harshest economic effects would occur between 2030 and 2039, which gives the country time to head off drastic economic consequences.

The report, according to ASCE Executive Director Tom Smith, “finds, in short, that we are treading water. “In the areas that are most recognizable to Americans — water, wastewater and surface transportation — we’re falling farther behind.”

According to the report, “businesses and households face higher costs due to several factors, including unreliable transportation services, less reliable water and electricity services, as well as unmet maintenance needs and outdated facilities for airports, seaports and on inland waterways,” the report says. “These costs absorb funds from businesses that would otherwise be directed to investment or research and development and from households that would go toward discretionary consumer purchases.”

Long-term funding

Smith said that “America’s infrastructure bill is overdue, and we have been ignoring it for years. “There’s no better way to jump-start the economy, while also lessening the financial burden on businesses and families, than by making a down payment on our infrastructure now — transit systems, bridges, water treatment plants and the grid — to ensure these systems are sustainable, resilient and safe for communities across the nation.”

The report says one way to address the situation is through development of longterm sources of federal funding as well as investment in commercial infrastructure networks.

“The U.S. economy relies on low transportation costs and the reliable delivery of clean water and electricity to businesses and households to offset higher wages and production costs when compared to many of our international competitors,” the report says. “Analyses show that business costs and prices will increase if surface transportation systems worsen, ports and inland waterways become outdated or congested, and if water, wastewater and electricity infrastructure systems deteriorate or fail to keep up with changing demand.”

In a Jan. 12 webinar to unveil the report, Smith was optimistic large, long-term federal infrastructure investment would be coming this year, citing the need to boost an economy as well as new leadership on Capitol Hill and in the White House.

“Increasing our investment in infrastructure will jump-start our economy and will help us out of the Covid-19 economic downturn,” Smith said. “Infrastructure is the backbone of our economy.”