For more than a decade, the annual Black & Veatch Water Report analyzing the state of the U.S. water industry has extolled the virtues of optimizing data. Such “digital water” can unlock vast rewards, delivering actionable and potentially transformational insights, enhancing investment returns and — maybe most importantly — augmenting resiliency by getting the most out of aging assets that have been a persistent industry challenge.
Adoption of data strategies has been slow, though an awakening may be underway. Utilities are getting more introspective about the merits and promise of data but grapple with a big issue: with the “silver tsunami” of veteran utility workers increasingly heading into retirement — taking their institutional knowledge of complex, aging systems with them. Are the right employees and training in place to make data truly work for them?
Based on a survey of 680 U.S. water sector stakeholders, the Black & Veatch 2025 Water Report shows promise and opportunity, beginning with the fact that six in 10 respondents say they have a digital solutions strategy — a super majority with room still for improvement.
On the road to great data-management maturity, there’s an inflection point: We have a data management strategy, now what?
More respondents rated themselves as less mature on their data journey now compared to 2024, perhaps suggesting that utilities may be experiencing natural growing pains when it comes to effectively implementing their data management strategy. Some 32% say they have low maturity when it comes to asset management compared to 26% last year, and only half say they’ve reached average maturity compared to 58% last year (Figure 24).
With a growing intention to adopt digital enablement, utilities have yet to match their aspirations to their output. According to our survey, 49% of respondents said they’re collecting lots of data but not leveraging it effectively, up from 42% in 2024.
While organizations are slowly moving up the maturity chain, their eyes are opening. What’s clear: A data strategy is not an out-of-the-box solution. That’s why in 2025, we see utilities revisiting their strategies and asking evolved questions such as, “What information is strategic? What data-driven decisions do we want to make as an organization? What change management strategies can we deploy?” The answers are crucial before terabytes of data can become useful in addressing persistent issues such as helping pinpoint and stemming water loss.
In addition, 60% of respondents said that they’re outsourcing engineering and technical staff. This reflects a recognized capability gap: Utilities understand that they don’t know what they don’t know.
When done right, digital water transforms utilities from reactive operators to strategic planners, driving efficiency, sustainability and long-term resilience. Ideally, the focus should not just be on buying a computerized maintenance management system (CMMS) but in training people effectively to maximize the power of the solutions. Twenty-eight percent of utilities — up from 19% in 2024 — say they’re getting both sides of this equation: collecting lots of data and leveraging it effectively (Figure 25).
That’s an important takeaway from this survey: Utilities understand that data maturity means having both the system and the trained workforce to set up the system, download the information and create learning systems and solid assessment and action processes for the data they collect. That’s especially important with the unfolding “silver tsunami” as half of the sector’s workforce could be retiring in the next five years.
Historically, utility staffing is stretched thin. Workers often are forced to wear multiple hats and do more with less. Those relegated to handle data-related tasks often aren’t sufficiently trained or connected to a data and insights community, leaving potential data insights and warnings unchecked. This acknowledgement is reflected in our survey; when asked which constraints impair or preclude utilities from adopting digital strategy solutions, 54% identified staffing resources and 37% identified funding (Figure 26).
Anecdotally, it’s something Black & Veatch sees consistently with its clients. There is one person doing IT, managing a database and maintaining a dashboard — ostensibly, simply putting out fires rather than proactively harnessing data. What’s more, experienced data professionals have great opportunities outside the utility space, and retention is an issue. This is in the context of legacy workers aging out of the workforce and taking their deep knowledge with them, making the balance between people and systems more critical than ever. An investment in memorializing their skills and experience is critical to maximizing value from a data management strategy. Efficient data use can relieve the pressure on fewer human workers.
All water utilities can embrace their data-rich environments, realize the potential of their people to explore, assess, report and predict trends, and recognize the value of evolving into a learning system anchored by strong data management.
It looks like an organized home for the data and plenty of trained caretakers. More specifically, it looks like a CMMS aligned with business processes such as asset management, frameworks, and risk and maintenance strategies paired with the staff to keep the data up to date. Yet for many utilities right now, it looks like a person standing before a tidal wave of data.
At such a dynamic time in the industry, water utilities forced with doing more with less are learning that data — along with artificial intelligence, machine learning and other advanced technologies — can help fill the chasm left when a growing number of veteran workers punch the time clocks for the last time.
For those who haven’t discovered the benefits of data in managing infrastructure and other assets that in many cases are well past their prime, the time is now to embrace the exciting, informative and transformative digital frontier. This may take the form of significant investment or a more measured approach, but a leap towards a more meaningful understanding of your organization, ecosystem, challenges and opportunities awaits.
For the past three years in a row, survey respondents have consistently rated “aging workforce/hiring qualified staff” as the second-most challenging issue facing the water, wastewater and stormwater industries today. This concern is only surpassed by “aging water and wastewater infrastructure,” highlighting the critical nature of workforce issues in this sector. Infrastructure assets are not the only components of water utilities that are aging; experienced staff are retiring in droves. According to the Black & Veatch 2025 Water Report survey, 68% of respondents report an increase in retirements or people leaving their organizations. The top three job categories affected by these departures are management/supervisors, operators and executives. These retirements of senior leaders pose substantial challenges for succession planning and knowledge transfer, risking the loss of valuable institutional knowledge and expertise.
Training emerged as a consistent theme throughout the survey data, identified as a crucial effort needed to mitigate cybersecurity threats, collect sufficient asset data and bolster emergency planning. Upskilling teams is essential across the board, especially in addressing cyber threats. When asked what would most help their organization improve its cyber posture, respondents ranked “training” as the No.1 answer, higher than “budget,” “cyber expertise” and “staff resources.”
Digital solutions hold promise for increasing efficiency, especially when staffing resources are limited. However, respondents cited “staffing resources” as the top constraint preventing their utility from adopting digital solutions. This creates a chicken-and-the-egg situation where utility staff lack the time and resources to adopt new systems that could ultimately save time and resources.
Addressing these workforce challenges will require a concerted effort in recruiting new generations of workers, succession planning, mentorship and investment in training programs. These initiatives are essential to ensure the sustainability and resilience of utility operations and teams.
