California, Nevada, and Texas are facing water crises. State regulations are mandating that small businesses conserve basic resources in an effort to supply water to the masses. The results are that basic small firms suffer from higher costs and loss of revenue. According to the Entrepreneur “In drought-afflicted California, residents and commercial users must ration out 20 percent of what’s left after agriculture takes its whopping 80 percent cut of the state’s water.”
If you own a small business, here are 3 ways to prepare for water shortages in your area from the Entrepreneur:
- Prepare for droughts within your area: If you own a car wash, laundry mat or restaurants, you are in need of water to run your business. "Keep an eye out for the proposed rationing of water use, mandatory price hikes aimed at curbing demand and other restrictions.“ In addition, "research emerging processes and technologies that enable their industry to do more with less (water).”
- Prepare for rate hikes: If you’re a business who uses water to run, plan for water price hikes and “consider how such measures, and potential lack of access to H2o in the future, could affect your business.”
- Crumbling infrastructure: According to Deloitte “The American Society of Civil Engineers estimates that, while the cumulative cost to households from degrading water/wastewater infrastructure will add up to $59 billion (in 2010 dollars) over the period between 2013 and 2020, the cost to business will be more than double that, at $147 billion.” The American Water Works Association estimates that more “than $1 trillion needs to be spent over the next 25 years on America’s aging water infrastructure to maintain current levels of water service.”
Water’s necessity is self explanatory, but current infrastructure will be a serious issue for commercial and residential businesses in the future. According to Circle Blue "water prices are up by 41 percent in 30 major U.S. cities since 2010.“ With the problem only getting worse, if you live in California, Nevada, Texas or another water depleted city, watch for your water prices to continue to rise.