Water stress is already increasing operating costs and straining infrastructure budgets across European industry, according to a new survey commissioned by Schneider Electric. The company’s "Water Crunch Report" surveyed 210 industrial leaders and 130 water system decision-makers across the United Kingdom and Europe.

The report found that 44% of industrial leaders surveyed reported higher operating costs due to water stress over the past two years, while 38% cited pressure on infrastructure and maintenance budgets and 30% experienced supply chain disruptions. If a serious water supply disruption occurred, 44% expected their operations to begin suffering within 24 hours.

Looking ahead, 52% of respondents expect water availability or quality to become a serious barrier to organizational growth by 2031. Another 14% said water is already limiting their operations or growth.

Although 86% of industrial leaders surveyed believe smart water technology can reduce operating costs, 58% said they were aware of digital twins or network modeling tools but had not installed them. More than half reported using automated controls (56%) and smart meters (55%) to manage water systems.

The findings suggest water availability is becoming an operational continuity concern alongside supply chain disruption and cybersecurity. For chemical plants, monitoring water use, evaluating reuse opportunities and preparing for supply interruptions can help manage risks to production and infrastructure.

Why it Matters

Water shortages can constrain production, raise operating costs and put additional pressure on plant infrastructure. Evaluating water dependencies and identifying opportunities to improve efficiency or reuse can help facilities prepare for supply and quality disruptions.