Water scarcity poses major risk to European industry

A survey by Schneider Electric reveals that water scarcity and declining water quality are becoming critical threats to European industry, comparable to cyberattacks and supply chain disruptions.

More than half of industrial leaders expect water shortages to hinder company growth by 2031. The impact is already being felt, with 44 percent of managers reporting increased operating costs over the last two years, 38 percent noting higher infrastructure and maintenance budgets, and 30 percent experiencing supply chain complications.

In the event of a severe water supply disruption, 44 percent of companies believe their operations would be affected within 24 hours. Gwenaelle Huet, Executive Vice President for Industrial Automation at Schneider Electric, stated that water management will shape the next decade of industry, much like the energy transition did for the last.

While 86 percent of industrial managers believe smart technologies can reduce costs, adoption remains slow. Many companies are aware of tools like digital twins and AI-driven predictive analytics but have yet to implement them.