How Are Manufacturers Approaching Energy Efficiency?
In recent research, ABB outlines how and why players across industries are investing in energy efficiency.

Efficiency is a broad topic —particularly in food manufacturing — but we try to talk about all the ways in which it can apply. For example, it’s a key consideration in process and plant design, and efficiency is one of the hallmarks manufacturers contemplate when selecting equipment solutions.
Additionally, efficient use of resources, such as water and energy, is a growing concern, especially in the face of rising costs and evolving regulations. With energy being one of the costliest aspects of manufacturing, how are processors defining and approaching energy efficiency goals?
ABB, in partnership with Sapio Research, recently surveyed 2,700 senior decision makers across 15 global industries, including food and beverage and refrigeration, on their objectives and actions toward energy efficiency.
Not shockingly, ABB found energy consumption represents on average a quarter (25.4%) of operating costs, with roughly 40% of respondents spending 21%-30% of their total budget on energy. This balloons to 55% in the refrigeration sector.
Connected to “geopolitics, grid congestion, weather extremes and fuel price fluctuations,” as ABB’s report reads, nearly six in 10 (59%) of respondents view rising energy costs as a moderate or major threat to profitability, up from 53% in 2022. With that, nearly two-thirds (63%) of participating companies have already invested in energy efficiency initiatives and 29% plan to do so in the next 12 months. Just 1% had no energy efficiency investment plans.
Meanwhile, 81% of participants plan to increase their investments, down from 89% in 2022. Efficiency investments will stay the same for 13% of respondents, while 6% plan to decrease them. ABB suggests external forces are impacting how businesses are approaching energy efficiency.
“The shift signals a more cautious planning in a context shaped by supply‑chain uncertainty, inflation and ongoing geopolitical volatility,” the report reads.
Facilities, production and transportation remain important areas of focus, but this year, ABB included IT and digital infrastructure as an option. More than half (56%) of respondents said it’s a major priority, coming in above production/operations (53%) and transportation (26%).
Among the top drivers for investing in energy efficiency are reducing energy costs, reducing carbon footprint, improving resilience and competitiveness, and enhancing corporate reputation. Nearly a third of respondents (31%) cited compliance with regulations, up from 18% in 2022. Furthermore, 30% of respondents cited supply chain requirements as a motivator, representing an increase from 14% in 2022.
While manufacturers across industries have similar concerns and objectives, ABB says progress in energy efficiency remains “uneven.” To overcome this, should be managed as a holistic system, not just a “series of projects.”
“Fragmented actions will never deliver lasting impact,” the report reads. “The strongest results come from an end‑to‑end view of assets, processes and energy flows — allowing industrial players to prioritize interventions across the whole site and scale them in other factories.”
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