Following one of the UK’s driest years on record, MEPCA explores the impact of escalating water scarcity on manufacturing. While viewed by many as a concern of the future, the effects are already being felt across the industry – complacency over this invaluable resource could be catastrophic.
As difficult to imagine as it is given that the UK has begun 2026 with over 40 consecutive days of rain, but our water supply faces an uncertain future. By 2055, it is estimated that there will be a 5 billion litre a day shortfall in public water supplies.
Published by the Environment Agency (EA) in June of last year as part of the National Framework Water Resources 2025[1], the report also predicts that a further 1 billion litre a day water-deficit is attributed to the wider economy, including industrial production. That’s an overall shortfall of 6 billion litres a day, the equivalent of a small lake.
Reasons cited by the EA for this predicted deficit include “Climate change, population growth, and environmental pressures.” Also accounted for are emerging technologies, namely data centres and hydrogen production, which both require vast amounts of water.
In regions most acutely affected by water scarcity, suppliers have been forced to refuse requests for new connections, threatening industrial site developments and expansions.
The forecast for UK industry
Water scarcity is not just a barrier to growth, but an existential threat to UK industry. Water is essential for all UK industry, and in particular the UK’s largest manufacturing sector: Food and Drink, which uses high volumes of water in processing ingredients, regulating the temperature of plant and machinery, and for washdown and hygiene.
A lack of contingency planning paints a gloomy picture for UK industry. Last year, Alpheus, a water services and treatment company, revealed the results of its survey of 18 of the largest Food and Drink manufacturers in the UK, and 61% of those surveyed do not have a contingency plan for water supply at their UK sites.[2]
More concerning still, those surveyed said the limits imposed by local authorities on water supply and effluent discharge had already caused increases to development costs and planning delays, with 22% claiming that they had cancelled projects entirely as a result.
Water scarcity also jeopardises the UK’s net zero ambitions. National water retailer Wave partnered with Durham University to evaluate whether regional water supplies could meet the demand of decarbonisation activities. The findings were concerning.
Reviewing the decarbonisation plans of the seven industrial clusters in the UK, the six water regions that supply them, and the latest data on emerging decarbonisation projects – hydrogen production, green hydrogen production and CO2 carbon capture – Wave quantified the increase in water volume required to meet net zero commitments and analysed whether supply could sustain the demand.
The result varied by region, with vulnerable regions more acutely affected, but overall, it was revealed that the daily water requirements for decarbonisation activities are estimated to reach an additional 860 million litres.
Water stewardship and smart technologies
It makes for alarming reading, but sounding the klaxon now gives the UK the best chance to plan, adapt and innovate for the challenges ahead. Fortunately, neither the government nor industry have been idle.
Laid out in Water White Paper[3] released January, the government cemented its water strategy plans, securing £104 billion in private investment to transform water infrastructure. This is supported by initiatives like the Performance Improvement Regime, which empowers regulators to hold underperforming suppliers accountable. “These are once-in-a-generation reforms for our water system – tough oversight, real accountability, and no more excuses,” said Emma Reynolds, Environment Secretary.
However, as demonstrated by Alpheus’ research, water scarcity is already impacting UK manufacturers, many of whom do not have the luxury of waiting for water infrastructure improvements. What can they do now to safeguard a steady water supply? The short answer is Water Stewardship.
Defined as using water in a way that is socially equitable, environmentally sustainable and economically beneficial, Water Stewardship encourages manufacturers to take responsibility for planning and managing water. In practice, it means moving from wasteful, linear models to circular economy principles of reuse and recycle, such as closed-loop system to re-circulate waste water, reducing water consumption and effluent discharge. This in turn reduces costs and increases operational resilience.
Practices of circular economy work best when supported by cutting-edge technologies.
Both manufacturers and water suppliers stand to benefit from adopting the latest sensor technology. IoT-based meters and sensors enable the monitoring of water usage in real-time. These smart technologies can identify water inefficiencies and optimise water use. Operated as part of a smart monitoring system, they make it possible to track water flow, identify leaks, and analyse usage patterns for data-based decision making. By incorporating Artificial Intelligence (AI) and automation, water flow can react to changing requirements without manual intervention and proactively adjust for predicted issues.
Other solutions include containerised water treatment systems, which provide flexible on-site purification, enabling facilities to desalinate sea water, or purify rain, river and even waste water. While suitable for both long-term and short-term solutions, the flexibility of these system makes them a strong choice for manufacturers seeking contingency plans should their water supply face disruption.
Water, water, everywhere, but not a drop to waste
Industry’s thirst is unquenchable, and emerging technologies are thirstier still. As climate change reveals the weaknesses in our water infrastructure, the speed at which we can adapt will be put to the test. Caught between extremes, with droughts and floods becoming more common, the UK’s water management solutions must be dynamic, innovative and future proof to secure a reliable water supply for the industry of tomorrow.
[1] gov.uk/government/publications/national-framework-for-water-resources-2025-water-for-growth-nature-and-a-resilient-future
[2] alpheus.co.uk/news/more-than-half-of-uk-food-and-drink-manufacturers-have-no-contingency-plan-to-deal-with-water-shortages
[3] gov.uk/government/publications/a-new-vision-for-water-white-paper
