As America’s manufacturing sector — which already accounts for more than 75% of water use in 60 U.S. counties — surges amid reshoring and digitalization, water demand is set to intensify. Against this backdrop, coupled with aging water systems buckling under pressure, it’s no surprise that 60% of leaders believe that water-related risks will outpace all other infrastructure threats and two-thirds agree that near-term water infrastructure updates are critical.
The U.S. leads the world in per capita water use — 1,802 gallons per person — yet 20% of treated water, representing 7 billion gallons or enough to supply New York for a week, is lost every day through leaky pipes, according to Schneider Electric’s Sustainability Research Institute. And with 260,000 water main breaks each year — one every two minutes — the financial and operational toll is mounting, costing utilities $6.4 billion in lost revenue and cities $2.6 billion in repairs annually.
“Water is not just essential for life. It’s the backbone of America’s economic strength. Yet today the U.S. is facing a major water crisis, driven by driven by dwindling supply and outdated infrastructure,” says Sophie Borgne, water & environment segment president, Schneider Electric. “Effective water management is no easy task, but we have a clear opportunity and collective responsibility to embrace automation and smarter water strategies to avoid putting economic growth and urban resilience at risk."
Disconnect between strategy and action
The study, based on insights from over 200 U.S. decision-makers and conducted in partnership with B2B research firm NewtonX, shows that despite widespread recognition of the risks, execution is lagging. While 9 in 10 city leaders and 6 in 10 business leaders report having a water strategy, only a small fraction fully implements it. Just one in 10 leaders consistently follow smart water plans, citing budget constraints, operational pressures, and lack of real-time data as key barriers. Cybersecurity concerns also loom large, with 25% of leaders worried about system vulnerabilities.
The study also reveals the difference in priorities, with city leaders ranking water management as a medium priority and business leaders not seeing it as priority and placing three times more importance on cost reduction, with an added focus on AI and digital transformation.
Digital solutions face barriers despite proven ROI
Smart technologies like leak detection and digital twins offer proven benefits, delivering 5–10% cost savings for nearly half of city leaders and 40% of business executives. Budget constraints, cybersecurity risk and operational complexities remain key barriers to adoption. City leaders cite knowledge gaps, while business leaders grapple with competing priorities that hinder progress.
To learn more, download the full Schneider Electric study entitled: “U.S. Water Infrastructure: From Fixing Leaks to Regenerating the System.”