Will Inflation Put Your Water at Risk?
Inflation is an ever-present problem across the United States and most of the world. In the world of water management, experts warn that as costs rise for utility companies, their customers may feel the price pain too. Although the news sounds grim, it’s not time to panic. With the right precautions in place, utilities can protect both their business and their water.
How is inflation affecting water around the world?
Water utilities are facing rising costs related to supplies, labor, and more. In particular, the war in Ukraine has affected the price of the materials for constructing water pipes. An index by the Engineering News-Record says the following materials have soared in price in the last 12 months:
Concrete pipe by 16.2%
Copper pipe by 20.8%
Fabricate steel by 39.8%
PVC pipe by 35.6%
Where do these higher prices go? Water utilities can manage prices in three ways:
Delaying projects
Completing projects in phases
Passing the costs down by increasing the price for water
In some parts of the country, water rates are already going up. New York City’s Water Board met in June to raise water rates by 4.9%. They expect a 2023 increase to be even higher.
Does federal investment do enough?
While Congress set a historic infrastructure investment in motion last year, many worry now that it won’t be enough to meet the rising costs of doing business.
Environmental journalist Brett Walton wrote in Circle of Blue in April: “Water leaders worry that rising prices — for everything from lead pipe replacements to treatment plant repairs — will cause [the] historic federal infrastructure investment to fall short of lofty expectations.”
Walton is referencing two separate federal programs:
The American Rescue Plan Act: Approved in March 2021, the American Rescue Plan allocated $350 billion to state, local, and tribal governments to support infrastructure, including water and sewer infrastructure.
The Infrastructure Investment and Jobs Act: Signed in November 2021, this legislation allocated $50 billion over five years for water infrastructure needs.
The funding is a huge windfall for water infrastructure, but business leaders who rely on good water management should plan for rising costs to reduce that impact to some degree.
Reducing water costs at your facility doesn’t have to hurt
Inflation brings risk. So does water. With a smart water management strategy – and the technology and tools to implement it – you can outsmart that risk. Technology now enables us to see our water use in ways we never have before and to control supply, use, leaks, and more.
Smart water management helps businesses:
Reduce operating costs
Maximize capital infrastructure and equipment investments
Comply with regulations without adding cost
Mitigate health risks and hazards
With artificial intelligence (AI)-driven technology, water management is easy. Smart sensors, cloud-based data, and more can help drive efficiency, prevent breakdowns, and maximize your water system.
At Aquanomix, we deploy AI-powered, cloud-based systems that help businesses track, manage, and optimize their water systems. Water and inflation both carry risk, but at Aquanomix, we help you manage it. Learn more about smart water management on our blog, or see our cost-saving solutions.