The drought in Mexico, worsened by intensive water use and inefficient management of water sources nationwide, poses significant challenges affecting the availability of this vital resource across the country. The industrial sector plays a crucial role, consuming about 5% of the nation's water, which rises to 9.6% when including water used for cooling electric power plants, according to data from CONAGUA and INEGI.

Official figures reveal that the sub-industries of food, capital goods, transport equipment, wood, manufacturing, machinery, metals, mining, paper, oil, plastics, and chemicals demand the most water. These industries not only account for more than 70% of the industrial water use in Mexico, with an extraction volume exceeding 165 million cubic meters annually, but they also occupy more than 50% of the industrial gross leasable area (GLA) in the country's leading real estate markets, as per SiiLA data.

Water consumption in the industrial sector is particularly noticeable in the Gulf and Southern regions of Mexico, especially in Veracruz, Quintana Roo, and Tabasco, where 18%, 53%, and 17% of the water, respectively, is used by industry. In contrast, industrial consumption in the Central, Bajio, and Northern regions of Mexico represents smaller percentages, ranging between 2% and 7%. States such as Puebla, Nayarit, Yucatan, Estado de Mexico, Queretaro, Tlaxcala, and Mexico City have the highest percentages of industrial consumption in these regions, with figures close to 6%.

The industrial concentration in the Bajio, especially in the manufacturing, consumer products, and transportation and logistics industries, representing more than 83% of the industrial GLA, intensifies water use in the region and increases its vulnerability during drought periods. Similarly, in the Central region, the manufacturing, consumer products, and food sectors, which comprise 63% of the GLA, face significant water management challenges, particularly during times of scarcity. In the North, where manufacturing, consumer products, and transportation and logistics companies occupy 78% of the area, the water demand has put increasing pressure on available water resources, exacerbating the effects of drought in a region already affected by adverse climatic conditions.

The regional heterogeneity in industrial water consumption, combined with a severe drought affecting 74% of Mexican territory, underscores the need for sustainable and efficient water management measures tailored to the specific needs of each industrial area to mitigate environmental impact and ensure resource availability for future generations.

According to the National Meteorological System, in 2024, more than half of the country (57.5%) has experienced drought conditions ranging from moderate to exceptional. The most affected areas include the Northwest and North Pacific, where more than a third of the localities face severe droughts. In the Bajio, especially in states like Guanajuato and Queretaro, exceptional droughts persist despite precipitation. And in the South, although traditionally more humid and better off than the North and Bajio, it is not immune to these challenges. In Chiapas, for example, 10% of the territory faces intense droughts.

Water Solutions in Mexico for 2024

In addition to consuming millions of cubic meters of water amid a drought in Mexico, industries also contribute significantly to water resource pollution. In fact, industrial wastewater contains nearly four times more pollutants than those generated by municipalities, according to CONAGUA.

Among the water issues related to industrial activity, the federal government points to the overexploitation of aquifers, which are being depleted faster than they can regenerate, jeopardizing the national groundwater reserves. Moreover, the industry contributes to the deterioration of rivers and seas with wastewater discharge, as many treatment plants lack proper maintenance or are entirely inoperative. This situation threatens biodiversity and the integrity of aquatic ecosystems and seriously endangers the health of communities that rely on these water sources for their consumption and daily activities.

To reverse this trend, Mexico has proposed several strategies to improve water use in the industry and ensure its sustainability.

Key measures include enhancing water use efficiency, especially in self-supplied and thermoelectric industries, by increasing the added value per liter of water used. Also highlighted are collaboration programs for rescuing and protecting overexploited basins and aquifers, implementing norms for responsible consumption, and promoting clean production practices and a circular economy.

Among the strategies proposed by CONAGUA to optimize water management, the strategic location and relocation of high water-demand industries in regions with abundant water availability or the potential to increase it through desalination, capture, and reuse technologies stand out. Moreover, there is a push to increase productivity and reduce losses by rehabilitating hydro-agricultural infrastructure. These initiatives aim to conserve water resources and optimize their use in the industrial sector, contributing to more sustainable and responsible water management, essential for Mexico's future economic and environmental health.

For more information on this and other trends in the Mexican industrial sector, explore SiiLA REsource or contact us at contacto@siila.com.mx.