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Manufacturers warn of rising costs as water rationing takes hold

Group urges immediate activation of Business Emergency Operation Center

Economy·By Caribbean Business Staff··3 min read
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The island’s industrial sector has begun implementing contingency plans as water rationing takes effect across multiple regions, warning that the added operational strain is already driving up costs and threatening business continuity.

The Puerto Rico Manufacturers Association (AIPR) said its members have activated emergency protocols and backup systems to stabilize production and maintain essential services as scheduled interruptions in potable water service roll out.

Although manufacturers traditionally invest in reserve systems and drought‑response strategies, the association emphasized that the current scenario carries a direct and escalating financial impact. Companies are absorbing extraordinary expenses to secure supplemental water supplies, including hiring tanker trucks and purchasing additional reserves needed for processing lines, clean‑room environments, and the sanitation of facilities that employ thousands of workers.

The northern region and metropolitan area face the most immediate pressure under the rationing plan, but the association noted that manufacturers islandwide are on high alert as reservoir levels continue to decline.

“Our industry has historically prepared to respond quickly to climate‑ and water‑related emergencies. However, the extraordinary purchase of water and supplies needed to keep plants operational creates an economic burden that affects competitiveness,” said Karen Mojica Franceschi, executive vice president of the AIPR. She urged continuous communication between government agencies and the private sector to monitor water availability and coordinate supply to manufacturing centers, which she described as the country’s economic engine.

AIPR president Rafael Vélez Domínguez stressed that the crisis extends beyond drought conditions and underscores longstanding deficiencies in Puerto Rico’s water infrastructure. He pointed to persistent pipeline ruptures, outdated equipment, and delayed maintenance as factors that shorten the useful life of the island’s reserves.

“This crisis highlights the urgency of accelerating modernization and preventive maintenance of the water infrastructure managed by the Puerto Rico Aqueduct and Sewer Authority,” Vélez Domínguez said. “It is imperative to execute planned asset‑renewal projects quickly to prevent service interruptions from continuing to undermine productivity and job retention.”

The association said it will maintain a continuous monitoring committee with its members to track the effects of rationing and offer technical collaboration to the government to optimize water use in industrial facilities.

AIPR also expressed concern that the Puerto Rico Business Emergency Operations Center (BEOC) has not yet been activated, despite an executive order declaring a water‑use emergency signed on July 31. The BEOC serves as a critical coordination hub between the government and private sector during emergencies, ensuring logistical support and protection of critical infrastructure.

Given the severity of the situation, the association called on the administration to activate the BEOC immediately. “This integration is essential to articulate a rapid response, expedite the distribution of essential water resources, and accelerate the stabilization of productive operations that sustain the island’s economy,” Vélez Domínguez said.

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