Capital funding emerges as top challenge in AWWA’s State of the Water Industry Report

The American Water Works Association (AWWA) today announced the release of its 2025 State of the Water Industry (SOTWI) Report, which revealed that financing for capital improvements is the top challenge among water sector professionals.

Based on insights from 3,575 water professionals surveyed in late 2024, the report provides a comprehensive look at the most pressing challenges and priorities facing the North American water sector.

“The cost of providing water service is rising, as the compounding needs to replace aging pipes collides with investments required to meet new regulatory requirements,” said AWWA CEO David LaFrance.

Solutions to these challenges, and others, will be shared at AWWA’s Annual Conference and Exposition (ACE25) next week in Denver.

This year’s survey also showed:

• Aging Infrastructure: Ranking as the second most pressing concern, many systems are reaching or exceeding their design lives, necessitating significant investments to ensure continued service and public health protection.
• Emerging Contaminants: Nearly 45% of respondents indicated significant concern about per- and polyfluorinated substances – commonly known as PFAS — a sentiment driven by new regulatory pressures and the need for investments in advanced treatment.
• Workforce Challenges: Workforce issues are a major concern for utilities — ranked seventh in the top ten challenges this year — as they face the challenges of an aging workforce, recruitment difficulties, and the need for specialized skills.
• Technological Evolution: Cybersecurity is ranked eighth in top challenges, with 73% rating it as very to critically important, though 26% of small systems report low to no ability to implement measures.
• Public Trust: Ranked fourth in top challenges, 60.6% of utilities have customer communication plans implemented or in progress, crucial for maintaining trust in an evolving media landscape.

Since 2004, AWWA has published the annual State of the Water Industry report based on survey results to help water utilities, service providers, regulators and researchers identify and prepare for challenges, opportunities and trends impacting the water community.

The full report and a corresponding executive summary are available on AWWA’s State of the Water Industry page.

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Established in 1881, the American Water Works Association is the largest nonprofit, scientific and educational association dedicated to managing and treating water, the world’s most vital resource. With approximately 50,000 members, AWWA provides solutions to improve public health, protect the environment, strengthen the economy and enhance our quality of life.