The frequency and severity of infrastructure failures will increase in the U.S. in the coming years without renewed attention and ongoing investment, Fitch Ratings says.

In a November 4 incident in Philadelphia, businesses were flooded, shoppers had to be rescued, and cars were submerged when a ruptured main—the third such incident in as many years at the same location—released some six million gallons of water. The main break was the latest infrastructure failure in a string of similar episodes in recent years in Boston, Los Angeles, and Washington, D.C., Fitch says.

The ASCE estimates that 240,000 water main breaks occur annually in the U.S. Fitch's view that infrastructure failures are on the rise is based on the nation's aging infrastructure and continued underinvestment in underground assets.

In its 2016 Water and Sewer Medians report, the ratings agency says that capital spending dropped to the lowest level it has observed since publishing its annual medians (113% of annual depreciation). The lack of spending contributed to an inability to improve the median age of facilities, which, at 14 years, is the same as the 2015 median and ties the oldest of any median result.

While Fitch says it expects moderate increases in planned capital spending for the 2017 medians and beyond, planned outlays will remain below historical spending levels observed during and just before the 2008-09 recession.

Fitch also says that:

· The American Society of Civil Engineers has estimated that 240,000 water main breaks occur annually in the U.S.

· The American Water Works Association has calculated the required costs to restore existing water systems reaching the end of their useful lives, and to keep pace with population growth, could be upward of $1 trillion nationwide.

· A recent survey compiled by the U.S. Environmental Protection Agency showed nearly $385 billion is needed to improve and replace the nation's drinking water infrastructure through 2030 to ensure a safe supply.