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Challenges of our nation’s aging infrastructure

Infrastructure provides the foundation of our economy and quality of life. Investing in aging infrastructure, therefore, is essential to supporting healthy,  vibrant communities. The U.S. infrastructure is outdated, costing both the government and private industry millions in repairs, business interruption and supply chain risks. There is a lot of buzz in the media about America’s aging infrastructure and the government’s pledge to rebuild our roads and rails. The problem is widespread, impacting not only our transportation network, but also water systems, communications networks and the energy grid. Download the white paper to learn more about the pressing need to maintain critical systems.

bridge over ocean
Our aging infrastructure costs millions in repairs, business interruption and supply chain risks. Whether P3 construction projects may sway the pendulum remains to be seen.

Learn more about risk exposures

Aging and poorly maintained infrastructure exposes companies to a number of risks. Deteriorating infrastructure can increase the risk of bodily injury from accidents. Aged pipes can burst, causing flooding and significant property damage. Obsolete or outdated systems and equipment can lead to business interruption or supply chain disruption. In addition, equipment breakdown can lead to lost production and income.

As infrastructure ages, interconnected systems may be impacted by external shocks. Extreme weather requires increased resilience to withstand external forces. Natural catastrophes should be mitigated through the development of a resilience strategy that can be used to identify pre-event risk reduction techniques.

Total risk profiling can help assess an organization’s vulnerabilities and risk exposures. In addition, enterprise risk management services can help minimize the impact of insurable and non-insurable business interruptions.

Water Transportation Energy Communications

U.S. Infrastructure: Water

Water Infrastructure dates back to the 19th century in the U.S., leading to increasing failures. Such failures damage businesses, impact communities and even impede emergency response.

  • U.S. has 1.2 million miles of water supply mains – 26 miles of water mains for every mile of interstate highway.
  • Restoring existing water systems and expanding them to serve a growing population will cost at least $1 trillion over the next 25 years.
  • Over 240,000 water main breaks occur each year in the U.S., with costs of the leaks estimated to be $2.6 billion per year.
  • Need for water system replacement accounts for approximately 54% of the total national water system.
  • Approximately 15,500 U.S. dams are considered to have high hazard potential.
  • Average age of dams is 56 years.
  • American Society of Civil Engineers (ASCE) Report card:
    • Overall quality of dams – D
    • Overall quality of drinking water – D

Concerns over aging pipes poisoning America’s tap water are growing. In Flint, Michigan, lead, copper and bacteria are contaminating the drinking supply and making residents ill. If other cities fail to fix their old pipes, the problem could soon become a lot more common.

[The Atlantic]

U.S. Infrastructure: Transportation

Transportation infrastructure including highways, rails, ports and inland waterways plays a vital role in our economy, allowing the transport of goods and connecting millions with jobs, medical facilities, schools and recreation. Tragic failures have highlighted the need for urgent repair and replacement.

  • Most of the Interstate Highway system is more than 50 years old.
  • 20 percent of the nation’s highways are in poor condition.
  • In 2011 trucks transported almost 3.9 trillion ton-kilometers of cargo, an increase of 109 percent from 1980.
  • Registered trucks traveled 279.1 billion miles in 2014.
  • U.S Department of Transportation estimates it would cost USD 189 billion to address repairs and improvements.
  • American Society of Civil Engineers (ASCE) Report Card:
    • Overall quality of roads – D
    • Overall quality of bridges – C+
    • Overall quality of Transit – D-

Public transportation sees growing use but faces challenges to maintain infrastructure. American Public Transportation Association (APTA) briefing reinforces need to renew and expand the nation’s transportation systems.

[Mass Transit]

U.S. Infrastructure: Energy

Energy infrastructure consists of a system of interconnected power plants, transmission and distribution facilities. Power outages put public safety at risk and increase costs to businesses and consumers.

  • The nation’s power grid dates back as far as the 1880s.
  • Investment in new and maintained U.S. infrastructure is currently insufficient to meet needs.
  • Increased demand for energy due to increasing population and increasing power needs to drive technology.
  • Significant power outages rose from 76 in 2007 to 307 in 2011 to 3,571 total power outages in 2015.
  • If investment in the system isn’t increased by at least $1 billion a year, service interruptions between now and 2020 will cost the economy almost $200 billion.
  • American Society of Civil Engineers (ASCE) Report Card:
    • Overall quality of energy sector – D+

Is the U.S. energy grid in at risk? While the world’s attention is on cyber security and emails, our electrical grids may be equally at risk of attack.

[U.S. News & World Report]

U.S. Infrastructure: Communications

Communications infrastructure is less impacted by age. However, the interconnectedness between the communications infrastructure and other critical, yet aging, infrastructures causes issues.

  • Over the last 25 years, the sector has evolved from predominantly a provider of voice services into a diverse, competitive, and interconnected industry using terrestrial, satellite, and wireless transmission systems.
  • From 2006 through 2011, 53% of the capital investment made by the three largest telephone companies was allocated to legacy networks; just 47% was spent on broadband infrastructure.
  • Extreme weather can create physical disturbances that may damage vulnerable communications equipment.
  • A major cause of telecommunications failures during a disaster is network congestion or overload.
  • Fragility of telecommunications networks can be caused by systems that do not have a high degree of redundancy.
  • Cyber hacking is becoming a significant, and growing, threat to the U.S. communications infrastructure.

Failing infrastructure puts economy and security in danger. The Department of Homeland Security’s National Risk Profile found that old and deteriorating infrastructure in the U.S. could pose significant risks.

[Public Intelligence]

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