Aging infrastructure remains top concern in Black & Veatch's 2026 water utility survey

Aging infrastructure continues to be the leading challenge facing U.S. water utilities, according to the newly released 2026 Water Report from Black & Veatch, which surveyed more than 600 water industry stakeholders nationwide.

Now in its 15th year, the report highlights growing pressure on utilities to maintain reliable service while managing aging assets, workforce shortages, funding constraints and increasing water demand. Sixty-six percent of respondents identified aging infrastructure as a top challenge, while 71% cited staffing shortages as a significant barrier to utility operations.

Financial pressures also emerged as a major concern. Thirty-one percent of respondents ranked funding and capital availability as their top challenge, surpassing regulatory concerns, which were cited by 19%. Additionally, 45% of utilities reported that available funding is unlikely to meet their capital investment needs over the next five to 10 years.

The report found that utilities are increasingly turning to digital tools and collaborative project delivery models to address these challenges. While 70% of respondents said they collect sufficient operational data, only 19% reported using that data effectively, highlighting a gap between data collection and actionable decision-making.

Utility confidence in serving large industrial customers also declined, falling from 73% in 2024 to 60% in 2026. The report attributes some of that concern to growing demands from water-intensive industries and ongoing supply challenges.

Cybersecurity and resilience remain priorities across the sector. Nearly all respondents said investment in operational technology cybersecurity is important, while 68% reported completing a vulnerability assessment for at least part of their utility system. Sustainability also continues to gain traction, with 79% of respondents identifying it as a strategic priority.

According to Black & Veatch Executive Vice President Donnie Ginn, utilities are increasingly adopting integrated planning approaches that combine engineering, digital technologies and collaborative delivery models to improve system resilience and adapt to changing conditions.

The report suggests that utilities are moving beyond traditional infrastructure strategies and exploring lifecycle-based approaches that align planning, design, construction and operations to improve long-term performance and reliability.