America's Water Crisis Nears Tipping Point As Two-Thirds Of Leaders Agree: Immediate Water Infrastructure Updates Are Critical

• 75% of U.S. city leaders and over half of business executives expect water risks to outpace all other infrastructure threats
• Yet roughly half of leaders lack confidence that current water systems are equipped for future demands

New research from Schneider Electric, the leader in the digital transformation of energy management and automation, reveals that while U.S. leaders recognize the urgent need for smarter water management and infrastructure modernization there’s a significant and concerning gap between strategy and execution.

As America’s manufacturing sector – which already accounts for more than 75% of water use in 60 U.S. counties^[1]- 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 - 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 $6.4B in lost revenue and cities $2.6B 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economic strength – yet today the U.S. is facing a major water crisis, driven by driven by dwindling supply and outdated infrastructure,” said Sophie Borgne, Water & Environment Segment President, Schneider Electric. “Effective water management is no easy task, compounded by climate and population pressures, 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."

The 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.

It 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 Deliver ROI - But Barriers Stall Progress
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, with AI-powered water balance models able to help organizations identify up to 60% unaccounted water and redirect it for reuse. However, modernization efforts continue to face multiple challenges. 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.

Conroe, Texas: A Blueprint for Resilience
In 2024 The City of Conroe, Texas - one of the fastest-growing municipalities in the U.S. - announced a $50M infrastructure upgrade, which includes the deployment of Schneider Electric’s open, software-defined solution, EcoStruxure Automation Expert, to add automation across 19 water plants. The collaboration sets a new benchmark for scalable, future-ready infrastructure, demonstrating how digital transformation can enable more resilient water supplies and protect against climate volatility.

Schneider Electric is helping cities and businesses digitize water infrastructure—transforming it from a hidden risk into a strategic advantage. From real-time leak detection to digital twins that simulate and optimize water flow, Schneider’s smart water solutions reduce losses, improve reliability, and strengthen operational performance.

Survey Methodology
The research was commissioned by Schneider Electric and conducted by NewtonX, a leading B2B research company. The quantitative survey was conducted in August 2025 to understand strategic priorities related to water management and infrastructure among U.S. leaders.

The study surveyed a total of 201 leaders comprised of two key groups:

• 159 senior business leaders (Director-level and above) from large enterprises (1,000+ employees) across key industries including Energy & Chemicals, Life Sciences & Pharmaceuticals, and Utilities/Public Infrastructure.
• 42 U.S. city and state government leaders with direct responsibility for municipal and state infrastructure, planning, and operations.

About Schneider Electric:
Schneider’s purpose is to create Impact by empowering all to make the most of our energy and resources, bridging progress and sustainability for all. At Schneider, we call this Life Is On.

Our mission is to be the trusted partner in Sustainability and Efficiency.

We are a global industrial technology leader bringing world-leading expertise in electrification, automation and digitization to smart industries, resilient infrastructure, future-proof data centers, intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide integrated end-to-end lifecycle AI enabled Industrial IoT solutions with connected products, automation, software and services, delivering digital twins to enable profitable growth for our customers.

We are a people company with an ecosystem of 160,000 colleagues and more than a million partners operating in over 100 countries to ensure proximity to our customers and stakeholders.

For more information, visit www.se.com.

About NewtonX:
NewtonX is the leader in B2B research and insights, empowering businesses to solve their toughest challenges with confidence. Trusted by Fortune 500 companies, NewtonX provides custom-recruited experts, tailored surveys, and in-depth interviews with end-to-end research support. For more information, visit newtonx.com.

^[1] Making Every Drop Count: Water Scarcity in Manufacturing