America will fall $1.44tr short of what it needs to spend on infrastructure through the next decade, a gap that could strip 2.5 million jobs and $4tr of gross domestic product from the economy, a report from a society of professional engineers said on Tuesday.
The American Society of Civil Engineers (ASCE) estimated that through 2025, the United States has funded only about 56 percent of its needed infrastructure spending. The nation needs to spend $3.32tr to keep its ports, highways, bridges, trains, water and electric facilities up to date but has funded only $1.88tr of that, ASCE said. The shortfall rises to $5.18tr through 2040 without new funding commitments.
U.S. GDP was $18tr in 2015, according to the International Monetary Fund.
For ports and waterways, the projected investment gap will potentially lead to 440,000 fewer jobs in 2025 and almost 1.2 million fewer jobs in 2040 than would otherwise be expected with modernized waterborne transportation systems in place, states the report. By 2025, the nation will have lost almost $800bn in GDP, while the cumulative impact through 2040 is expected to be almost $2.8tr of GDP.
By Supply Chain Brain | Maritime Executive