Why Does Infrastructure Matter So Much?
Wednesday, March 21st, 2018
Why does infrastructure matter so much? The answer is simple — because it is one of the basic building blocks for development.
Access to adequate water and sewer is critical to supporting South Carolina’s quality of life. It protects both the public health and the environment in which we live and raise families. It also enhances local economies, allowing existing businesses to grow and prosper while encouraging new development and jobs for residents.
The truth is, although water and sewer infrastructure is often underground and not seen by most people, it plays a vital role in economic development.
Unfortunately, much of this infrastructure is between 50 and 100 years old. In many cases, pipes are made of older materials, such as clay and iron, that are now severely deteriorated. Leaks and breaks are not uncommon, and facility components may be outdated and inefficient. Service disruptions not only impact residents, but businesses are also seeing real costs. In fact, studies have determined that for every day of water disruption, the average business loses $230 per employee. This aging infrastructure may not provide the capacity to support new jobs and investment.
As any business person knows, companies operate in real time and look for sites where they can get started as quickly as possible. Often, there is no time to wait for the necessary plans, permits and construction of infrastructure to be put into place. This is why it is important for communities to invest in shovel-ready, developable industrial sites.
Just as economic developers regularly inventory their available industrial sites and buildings. It is just as important to inventory and assess your community’s water and sewer infrastructure, as well as its capacity to support future economic development. This can be accomplished through conversation and planning with your local water and sewer providers. Determine whether your industrial sites and buildings have reliable infrastructure, so that they can be shovel-ready. If improvements are needed, develop a timeline and financial plan.
Recognizing that the need was great and funding was necessary for critical improvements, the S.C. Rural Infrastructure Authority (RIA) was created to provide financial resources to assist with qualified water, sewer and storm drainage infrastructure projects through a competitive grant program.
The RIA can help with publically-owned infrastructure when there is a funding gap for job creation projects after state and local incentives have been exhausted. Additionally, assistance is available for projects which set the table for economic development, particularly those related to product development and system capacity.
So, as you prepare your community for economic development, consider RIA as a potential funding partner. The agency’s staff is comprised of problem solvers – if we can’t help you, we will be glad to refer you to other potential funding sources to meet your needs. We work well with other funders, such as the S.C. Department of Commerce – Coordinating Council for Economic Development and Grants Division, U.S. Department of Agriculture – Rural Development and the U.S. Department of Commerce – Economic Development Administration.