Summary: Supply chain disruptions can emanate from a variety of contingencies and can lead to operational impacts for water and wastewater utilities. Additionally, amidst a volatile geoeconomic environment, understanding your supply chain dependencies is crucial for ensuring your utility’s operational resilience.
Analyst Note: To help mitigate the risk of supply chain shocks, EPA’s Water Infrastructure and Cyber Resilience Division (WICRD) has a number of free resources, products, and services including case studies that offer best practices to help utilities enhance their resilience.
As WaterISAC has previously reported, supply chain disruptions can emanate from a variety of contingencies. During COVID-19, supply chain disruptions threatened the supply of chemicals necessary to treat drinking water and wastewater. In 2022, the Russia-Ukraine war impacted access to energy by increasing prices, notably in Europe. A potential Chinese invasion of Taiwan would certainly disrupt trade between the U.S. and Asia. On the domestic front, water and wastewater utilities faced a threat to their supply chain from a fire at a chemical manufacturing facility, as well as threats to transportation networks from striking workers. These disparate events demonstrate the wide spectrum of contingencies that can impact supply chains and, in turn, potentially affect infrastructure operations.
In addition, America’s new tariff policies targeting countries around the world, and the subsequent retaliatory tariffs has created uncertainty in multiple industries. Several water and wastewater utilities reported to WaterISAC that they’ve experienced increased pricing in tools, machinery, and other equipment due to the tariffs. An academic expert reported that tariffs primarily impact supply chains in three ways:
- Increased costs
- Restructuring global sourcing
- Increased supply chain uncertainty
To help prepare for potential future supply chain disruptions in general, WaterISAC recommends utilities review EPA's “Supply Chain Resilience Guide for Water and Wastewater Utilities.” EPA can also assist utilities with a supply chain resilience assessment. To request additional information about the assessment process, or to indicate interest in participating with an assessment, please email EPA at: SupplyChainSupport@epa.gov.
Original Source: https://www.epa.gov/waterresilience/water-and-wastewater-sector-supply-chain-resilience
Additional Reading:
- MITRE Report Examines Ways to Strengthen the Nation’s Critical Supply Chains
- U.S. importers await expiration of 90-day tariff pause
- Global tariffs impacting supply chains
- State of U.S. Tariffs: June 17, 2025
Mitigation Recommendations:
- Chemical Suppliers and Manufacturers Locator Tool
- Water and Wastewater Supply Chain Case Studies
- Water Treatment Chemical Supply Chain Profiles
- Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions
Related WaterISAC PIRs: 16 & 17
