Johns Hopkins University and American Flood Coalition New Economic Study Reveals $1B in Flood Resilience Investment Could Create up to 40,000 New Jobs
New study finds federal investment in flood resilience projects significantly stimulates local economies, creates local businesses and jobs
WASHINGTON, DC — December 8, 2020 — A new study from the Johns Hopkins University (JHU) 21st Century Cities Initiative and American Flood Coalition released today reveals that federal investment in flood resilience projects can lead to significant economic return by creating local jobs, boosting a community’s economy, and improving public health outcomes. At a time of unprecedented intersecting challenges, including a public health crisis, economic recession, and historic storm season, investing in flood resilient infrastructure can create jobs and provide a multiplier of benefits to communities in need.
The first-of-its-kind study, The Local Economic Impact of Flood-Resilient Infrastructure Projects, uses data from the Federal Emergency Management Agency (FEMA) to quantify the impact of federal investment in flood-resilient infrastructure projects on local economies. Researchers found a strong link between investments in these projects and local economic development, including the creation of jobs and businesses.
The report found that flood-resilient infrastructure:
• Creates jobs: Every million dollars invested in flood infrastructure projects is associated with 40 new jobs in the construction and retail trade industries. That means every billion dollars invested could be associated with up to 40,000 new jobs across the country.
• Creates new businesses: An average of four new construction businesses are associated with investing one million dollars in flood infrastructure funding in a metropolitan area.
• Stimulates local economies: Flood infrastructure boosts economies close to home, providing business for local contractors. An analysis of projects in Coastal Louisiana found that 80 percent of subcontracts went to businesses located in Coastal Louisiana parishes and 99 percent of subcontracts went to businesses in Louisiana.
• Drives job growth at the Congressional District level: Using county level data along with the study’s jobs creation estimates, the report also quantifies potential job growth that investments in flood infrastructure projects could have in each Congressional District.
“This year has been incredibly difficult for so many Americans with the global pandemic and resulting economic recession. On top of that, 2020 was also one of our worst years on record for severe storms,” said Melissa Roberts, Executive Director of the American Flood Coalition. “Coastal and in-land communities continue to be pummeled by severe storms and flooding, and we know flooding is the costliest and deadliest natural disaster for Americans. Proactively investing in flood-resilient infrastructure will help meet a number of challenges head on – it can create jobs at a time when our economy needs stimulus, it protects lives and property from destruction, it has proven public health benefits, and it keeps our communities protected so they can thrive for years to come.”
The report featured case studies of how the communities of Meriden, Connecticut; Cedar Rapids, Iowa; and Coastal Louisiana leveraged investment from local, state, and federal government agencies to build flood-resilient infrastructure and create direct economic benefits. Benefits include job creation, employment growth, flood insurance savings, reduced lost days of work, reduced future loss of life and property, and appreciated property value. In Cedar Rapids, for example, researchers found that after the initial flood resilience investment in 2009, the Cedar Rapids metropolitan area led the rest of the state in job growth for the next decade.
“Many flood infrastructure projects that could help communities adapt to increasing flood risk are unfunded or underfunded,” said Dr. Matthew E. Kahn, lead researcher on the report and director of JHU’s 21st Century Cities Initiative. “Since 2005, federal disaster assistance has totaled over $450 billion, but spending only 10 percent of that money proactively on flood-resilient infrastructure could help communities adapt and have large benefits in risk reduction. Communities could be more resilient to future floods, 1.8 million new jobs in the construction and retail trade industries could be created, and we could protect property from destruction and reduce water and air pollution.”
According to the study, investing in city and state resilience plans could bring medium- and long-term improvements in neighborhood quality of life through improved health outcomes, increased resilience to future flood events, and in some cases, expanded access to green amenities such as parks. Federal investment and proactive steps to minimize the effects of flooding would ease the stress on community resources and help communities withstand future disasters, saving money and lives.
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About the American Flood Coalition
The American Flood Coalition is a nonpartisan group of cities, elected officials, military leaders, businesses, and civic groups that have come together to drive adaptation to the reality of higher seas, stronger storms, and more frequent flooding through national solutions that support flood-affected communities and protect our nation’s residents, economy, and military installations. The Coalition has over 200 members across 19 states.
Cities, towns, elected officials, businesses, and local leaders wishing to join the American Flood Coalition or read more about the organization’s work can visit the Coalition’s website (www.floodcoalition.org) to find out more.
About Johns Hopkins University 21st Century Cities
The 21st Century Cities Initiative (21CC) at Johns Hopkins University is the campus hub for research, teaching, and outreach related to urban economic growth and urban quality of life. 21CC supports cities committed to opportunity, inclusion and innovation. Our goal is to help cities transform neighborhoods and communities so that all urban residents can thrive in the 21st century. Through rigorous data analysis and policy evaluation, our center focuses on how to align the incentives of the private sector and federal, state, and local governments to unlock the full potential of cities including Baltimore, U.S., and international cities.
