The new battleground for industrial competitiveness
Energy efficiency has become one of the defining business issues of the decade. What was once a sustainability ambition is now a hard‑edged commercial priority, as companies face persistent energy volatility, rising operating costs and mounting regulatory pressure.
A new global study from ABB shows just how sharply the landscape has shifted: 63% of industrial leaders have already invested in energy‑efficiency measures, and another 29% plan to do so within a year. Yet despite this momentum, progress remains uneven — and the gap between intent and execution is widening.
Energy still accounts for around a quarter of operating costs, and nearly six in ten executives say rising prices continue to threaten profitability. The challenge is no longer about reacting to short‑term price spikes. It’s about building long‑term resilience in a world where volatility is structural.
As Erich Labuda, president of ABB’s Motion Services division, puts it: “Energy efficiency has become a foundation for business continuity, compliance, and long‑term value creation. It’s a condition for market access.”
The research shows that digital readiness is high — 67% of companies are already using or prepared to deploy digital energy‑management tools. But readiness does not equal results. Only 37% consistently apply total cost of ownership when making investment decisions, despite 81% agreeing it should guide purchasing. Meanwhile, responsibility for energy efficiency is scattered across operations, sustainability, finance and maintenance, leaving no single owner accountable for delivery.
Labuda argues that the real barriers have changed: “Cost is no longer the main blocker. What’s holding companies back now are organisational silos, skills gaps and a lack of usable data.”
The study also warns of “post‑renewables complacency”. Among companies that have switched to renewable energy, more than a third say their focus on efficiency has declined — even though renewables reduce carbon intensity, not consumption.
The next phase of the energy transition will be defined by execution. Businesses that combine diagnostics, digital tools and structured, long‑term programmes will be the ones that strengthen resilience, protect margins and stay ahead of regulatory change.
- Rodney Jack, editor, Food & Drink Technology. Keep in touch via email: [email protected] X: @foodanddrinktec or LinkedIn: Food & Drink Technology magazine.
