ENVIRONMENT

What is water stress?

The silent risk that threatens foreign investment and nearshoring

Publication date: May 2026

Did you know that Mexico is among the countries with the highest water stress in the world?

While nearshoring and foreign investment are pouring into the Bajío region, water is becoming one of the main obstacles to further growth. International investors, global clients, and even the government itself are now acknowledging this.

Today I’ll explain it to you clearly and with up-to-date data (2025):

What is water stress really and why is Mexico in a risk zone?
How it threatens economic viability, investment attraction, and job creation.
Water footprint by industry type (with a focus on manufacturing) and the most effective technologies.
How the National Water Plan 2024-2030 seeks to provide a response.
The role of the AWS Standard as a global reference framework.
And why water treatment system technology is the practical solution your company can implement now.

Executive Summary (TL;DR)

Imminent Country Risk: Mexico ranks 26th globally in water stress . With 114 overexploited aquifers and an 81% drop in per capita availability since 1950, water resource management is an immediate mitigation priority [1] [2].
Corporate Scrutiny: Global investment funds and corporations rigorously assess water risk before authorizing relocation capital . A poor score on platforms like the CDP (Carbon Disclosure Project) hinders international competitiveness [2].
Official Responses and Standards: The National Water Plan 2024-2030 allocates massive investment for the modernization and remediation of critical watersheds [3]. At the same time, international frameworks such as the AWS Standard and ISO 14001:2026 dictate sustainability guidelines for advanced manufacturing.

What is water stress and why is Mexico on alert?

Water stress is measured as the percentage of renewable freshwater that is withdrawn each year. When it exceeds 40 % it is considered high; above 80 % it is extremely high.

According to the Aqueduct Water Risk Atlas of the World Resources Institute (WRI) and the analysis by BBVA Research (abril 2025):

Mexico ranks 26th in the world in water stress (high level).
It is in a similar category to Morocco.
35 million people lack access to water in sufficient quantity and quality.
114 out of 653 aquifers are overexploited.
Per capita water availability has fallen by more than 81% since 1950.

The economic impact of water stress on investment and nearshoring in Mexico

Water stress is not just an environmental problem: it is a direct economic risk that is already having an impact:

Foreign investment and nearshoring: Global companies are increasingly assessing water risk before deciding where to locate. A low CDP score can lead them to choose other countries.
Job creation: The Bajío region concentrates much of the industrial growth, but several aquifers are overexploited → restrictions, higher costs or cancellation of projects.
Global competitiveness: Without sustainable management, Mexico loses its appeal compared to other destinations.

Industrial water footprint: The challenge of manufacturing in the Bajío region

Not all industries consume water in the same way. Here’s a clear comparison (global and Mexican data, 2025):

Focus on manufacturing: Although direct industrial water use in Mexico is only 3.1%, the actual water footprint is much larger due to the supply chain. In the Bajío region, automotive and electronics manufacturing is expanding in areas with overexploited aquifers.

Does Mexico have the capacity to meet this demand? In the key regions (north and central), no . With 114 overexploited aquifers and reservoir storage at historically low levels, without profound changes in 5-8 years it will be very difficult to sustain the current rate of industrial growth. Nearshoring could be halted if we don’t act now..

How does the National Water Plan 2024-2030 help?

In November 2024, the government of President Claudia Sheinbaum presented the National Water Plan 2024-2030, with a total planned investment of 164,437 billion pesos. Its main contributions are:

Technification of 200,000 hectáreas of irrigation (the sector that consumes the most water).
Sanitation of priority rivers (Lerma-Santiago, Tula and Atoyac).
Regulation of concessions and return of 3 billion m³ of water.
Infrastructure works in the Valley of Mexico (46% of the total budget).

It’s an important step, but it faces challenges: a limited budget and the need for greater coordination with local agencies. The Plan helps, but infrastructure alone isn’t enough; businesses must act in parallel.

The AWS Standard: the international framework for sustainable water management.

The AWS Standard (Alliance for Water Stewardship) is the most recognized global standard for responsible water management at the site and basin level.

Developed by the Water Stewardship Alliance, it is based on 5 clear steps:

Gather and understand (map risks and water uses).
Commit and plan.
Implement actions.
Evaluate results.
Communicate and disseminate.

Its benefits for Mexican manufacturing are direct:

Reduce the water footprint in critical processes (cooling, washing, painting).
Improve your CDP score and meet the requirements of European and Asian clients.
Generate certification that positions you as a preferred supplier.
It perfectly complements con ISO 14001:2026.

Companies that implement it manage to reduce their fresh water consumption by up to 30-50% in less than 18 months.

The real solution: standards plus technology in water treatment systems

ISO 14001:2026 and the AWS Standard provide the strategic framework. But the real answer lies in water treatment technology:

ZLD (Zero Liquid Discharge) systems: recover up to 95-99% of the water and eliminate flushing.
Reverse osmosis + ultrafiltration: ideal for manufacturing (cooling and processes).
Compact treatment plants that are installed inside the plant and allow immediate reuse.

Companies that invest in these technologies not only meet international requirements: they drastically reduce their water footprint , lower operating costs, and become preferred suppliers.

Water stress is no longer just a “green” issue: it’s a strategic risk defining Mexico’s competitiveness. We have the National Water Plan and the AWS Standard, but companies in the Bajío region and throughout the country can (and must) lead the solution with concrete action.

Estimated time to take action: Water footprint assessment + implementation of ISO 14001:2026 + AWS Standard + water treatment system: 6 to 12 months.