Your problem could possibly be Cytospora canker. It is a common disease on spruce caused by the fungus Leucostoma kunzei. The fungus invades trees that are weakened by environmental stress such as winter injury, soil compaction, or drought. The fungal disease Cytospora canker also starts near the ground and works its way up. The fungus initially infects trees through wounds or dead branch stubs. Look for these signs and symptoms of Cytospora disease. Needles brown and eventually drop from the tree, leaving entire branches bare. Dead branches with diamond shaped cankers are common near the base of the tree. Large amounts of sap or resin often comes out of the cankers. Look for a canker and cut into it. Use a hand lens to help you to see tiny black fungal dots. This disease has no chemical control. To minimize future problems, make sure your spruce are well watered and mulched going into winter. Heavily cankered branches can not be saved and should be pruned during dry periods in the growing season, or in late winter. Prune six to twelve inches beyond the canker or at the point where the branch attaches to the main stem. Do not prune or wound the branch collar. It should be stressed that abiotic factors such as weather extremes, exposure, salt, pollution, water problems, compacted soil and soil pH predispose spruce tree to fungal infections.