Water Supply and Irrigation Systems — Business Survival Rate
An estimated 72% of water supply and irrigation systems businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 6.5%.
Is Water Supply and Irrigation Systems a Good Business to Start?
With a 72% five-year survival rate, water supply and irrigation systems has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.
The annual exit rate of 6.5% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+0.9 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 50,423 workers across 3,659 firms.
Want to know how much water supply and irrigation systems businesses actually make?
See full revenue benchmarks for Water Supply and Irrigation Systems →Frequently Asked Questions
- What percentage of water supply and irrigation systems businesses fail?
- Approximately 28% of water supply and irrigation systems businesses fail within their first 5 years. The annual closure rate is 6.5%, with 180 firms closing permanently in 2023.
- Is the water supply and irrigation systems industry growing or shrinking?
- The water supply and irrigation systems industry is currently growing with a net job creation rate of +3.9% per year. New businesses are entering at 7.3% while 6.5% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.