water and our economy

Water & Our Economy

The vibrancy of any business depends on knowing water will be there when it’s needed.

Clean, fresh water is a vital input for everything from a growing recreation economy to a major corporate headquarters and even your local coffeeshop — it really connects us all across the landscape and throughout our lives and livelihoods.

People often take for granted that water will be there when they turn on the tap. Key elements of our economy — including farming and ranching, manufacturing, and technology — also depend on water for their survival and increasingly can’t rely on it being where and when they need it. Preserving sustainable water systems means protecting the natural lands that produce the source water for drinking, agriculture, and industrial uses, as well as the storm and sewer systems that flow into treatment plants to return cleaned water to our environment. These systems enable economic development and are themselves a source of good-paying jobs and economic activity. When water is unsafe, unreliable, or scarce, production slows or stops entirely, driving up costs and reducing competitiveness. In 2019 alone, disruptions in water service cost 11 of the most water-reliant industries about $51 billion. Without action, such losses are projected to rise to $250 billion by 2039.

On the other hand, strong water and wastewater systems are foundational to a healthy economy. One recent analysis estimates that closing America’s water infrastructure gap — repairing aging water systems, replacing failing pipes, and modernizing sewer and treatment plants — would create $4 trillion in economic output, $1.5 trillion in increased GDP, and more than 950,000 jobs each year. 

The Water Foundation has a strong track record of working with water providers and major economic players alike to analyze and plan for a more resilient and sustainable water future that can power community and economic vitality. Our Sustainable Water Management (SWM) Profile was developed in partnership with businesses and water providers. Using simple metrics, the SWM Profile identifies the vulnerability of water systems to key stressors (also known as risks or threats) in the areas of environment, supply, demand, and finance to demonstrate a pathway to ensuring sufficient water resources.

Beyond ensuring communities and economies have the water and systems they need to grow and sustain people, nature, and our future, it’s critical that work is done across the water economy to ensure a focus on job readiness for the next generation of water managers. We need a workforce ready to support and these systems into the future, and one that reflects the communities they serve. By one account, nearly 85% of employees across the water sector are male and over 60% are white. Beyond the lack of representation, of the 1.7 million people employed in the water sector, many have hit or are close to retirement age. This doesn’t bode well for the next generation of water stewards — or the communities, families, or businesses that depend on their work and expertise — if more people are not gravitating toward these crucial careers. When people understand the fundamental role of water in the their community and natural landscape, they will be drawn to careers in this field, one that provides well-paid and reliable jobs that can help families and communities both thrive.

At the Water Foundation, we are committed to supporting sustainable water management approaches that shape economies of all scales into the future. This is also the kind of sustainable approach that will support healthy ecosystems; provide a clean, affordable, and reliable water supply; and most importantly, thriving communities where people want to live.