IMPLAN Blog

Widespread winter drought across the United States has evolved from a climate concern into a significant input-cost risk for businesses, households, and local economies.

As of January 13, 2026, 42.55% of the Lower 48 states are classified as being in drought, according to the U.S. Drought Monitor. When areas labeled “abnormally dry” are included, more than two-thirds of the country is experiencing some form of unusual winter dryness.

Winter is typically the period when snowpack and soil moisture replenish water storage systems that support spring and summer demand. When this replenishment does not occur, utilities encounter higher operating costs, water supplies become constrained, and water-intensive industries experience increased cost pressures that propagate through supply chains.

IMPLAN was used to model how sustained winter dryness could translate into economy-wide cost impacts through the water system.