Why Cities can’t afford to wait any longer: infrastructure neglect is costing you more money

In part one of ‘The Infrastructure Imperative’ blog series, we will explore how prioritizing the maintenance of buildings and infrastructure can avoid catastrophe, and the effects of infrastructure negligence on local communities as cities face climate pressures.

When Pasadena recently discovered a staggering $2 billion in deferred maintenance costs, it highlighted a crisis facing cities across North America. This mounting maintenance backlog—created by repeatedly deferring critical repairs and upgrades—threatens municipalities’ ability to deliver essential services and maintain quality of life for residents. From potholed streets to aging water systems, decades of deferred maintenance are forcing cities to rethink how they manage the infrastructure their residents depend on.

From crisis to catastrophe

Neglecting the maintenance of infrastructure can have devastating consequences. In 2010, a Pacific Gas & Electric pipeline explosion in San Bruno, California, killed eight people and destroyed an entire neighbourhood—a tragic example of what happens when aging infrastructure fails. Similarly in Flint, Michigan, deteriorating lead pipes

These aren’t isolated incidents; they represent a pattern of postponed maintenance reactive asset investment planning that has become common across cities in the US. What starts as a seemingly prudent and cost-effective decision —“Let’s get another year out of these buses” or “The road can wait” —compounds over time into system failures. As catastrophe strikes, costs grow exponentially and what could have been a $100,000 repair turns into a multi-million-dollar emergency replacement. Pasadena’s recent assessment of its infrastructure system illustrates the scale of this challenge, and their discovery has caused other municipalities to reassess their own approaches to infrastructure management.

The human cost of infrastructure failure

For residents, municipal infrastructure challenges result in daily frustrations and significant safety concerns. For example, families in lower-income areas may disproportionately experience frequent sewage backups during storms due to poor infrastructure maintenance. Children may attend schools with unreliable heating and leaking roofs, and commuters may be forced to navigate potholed streets that damage vehicles and cause accidents. There are also small business owners who may lose revenue when water main breaks force unexpected closures.

The Washington Suburban Sanitation Commission’s experience illustrates these social inequities. Serving both one of America’s wealthiest counties and areas of significant poverty, the commission discovered that when they mapped their sanitary sewage overflow incidents and overlaid them with median household income data, the correlation was almost one-to-one. This correlation repeats across North America, with infrastructure failures disproportionately impacting vulnerable communities.

The climate factor

Once a future concern, unprecedented weather events present a modern-day crisis for today’s municipalities as cities designed for yesterday’s weather patterns are failing under today’s conditions. One small town recently experienced 20 inches of rain in 12 hours, overwhelming systems designed for what was once considered “hundred-year storms” that now occur regularly.

Coastal cities must plan for storm surges and flooding, while mountain communities face increased risks of landslides and avalanches. Even well-designed infrastructure systems are overwhelmed by unprecedented weather events, forcing cities to rethink their approach to infrastructure resilience.

Overcoming this challenge is about building adaptable systems that can respond to changing conditions. Cities must develop ‘what-if’ scenarios and flexible long-term plans to accommodate the unexpected. Making this work requires cities to shift how they evaluate and optimize infrastructure investments, putting adaptability and resilience as key objectives.

How Arcadis can help

Aging infrastructure, investment backlogs, tight budgets and rising public expectations make infrastructure decisions tougher than ever for city leaders. Arcadis' Enterprise Decision Analytics (EDA) is a business analytics platform that brings clarity by unifying siloed data, helping you prioritize projects through data-driven insights. Confidently balancing cost, risk, and community impact—delivering transparent decisions that meet regulations, maximize taxpayer dollars and build public trust. Transform your infrastructure challenges into strategic opportunities with EDA.