- 65 percent of industrial leaders in the US have already invested in energy efficiency and a further 32 percent plan to within 12 months - yet results remain fragmented and uneven
- Energy consumes 28 percent of operating costs in the US, and 54 percent say rising costs threaten profitability - but barriers have shifted since 2022, from cost to data, skills and organizational silos
- Digital readiness in the US reaches 67 percent, and 82 percent agree total cost of ownership should guide investment in energy efficiency – however, only 38 percent consistently apply this approach
Energy efficiency has become a board level‑ margin and risk issue, but many industrial organizations in the US are struggling to turn intent into sustained results, according to a new report from ABB.
Based on a survey of 2,700 senior decision‑makers across 15 countries and 15 industries, the study, developed in partnership with Sapio Research, finds that 65 percent of respondents in the US have already invested in energy efficiency and a further 32 percent plan to within the next 12 months. Yet, progress is increasingly constrained by execution gaps.
Energy absorbs 28 percent of operating costs on average in the US, and 54 percent of companies say rising energy costs continue to threaten profitability, despite calmer wholesale markets. The issue is not lack of ambition or funding. For executives, the challenge has shifted from reacting to price spikes to managing persistent price volatility and structural exposure.
Compared to the global average, the US shows a high energy cost burden (28% vs 25% globally), below-average profitability threat perception (54% vs 59% globally), and average digital readiness (67% vs 67% globally).
"Energy efficiency has become a condition for market access in America. Customers demand it, regulators expect it, and investors require it,” says Steven Koay, Director of Strategic Programs and Business Development, Motion Services. “Forward-thinking U.S. leaders recognize this imperative but face a real deployment gap—scaling efficiency initiatives enterprise-wide and making them stick is where the opportunity lies for competitive advantage."
Execution, not intent, is now the differentiator
The study shows that digital readiness in the US has reached 67 percent, with respondents already using or ready to deploy digital energy management‑ tools. However, readiness alone does not guarantee results. Only 38 percent of the US companies consistently apply total cost of ownership (TCO) when making investment decisions - despite 82 percent agreeing it should guide purchasing.
At the same time, responsibility for energy efficiency remains fragmented across executive management, operations, sustainability, maintenance and finance, with no single function clearly accountable.
"It's no longer about affording the technology—it's about having the right people, the right data infrastructure, and the right cross-functional alignment to deploy it effectively,” adds Koay. “Too many organizations have energy data trapped in silos that can't inform decisions. Solving for skills, integration, and usable intelligence—that's what separates intention from impact."
In the US, the most significant barriers to energy efficiency are the costs (37%), being unclear on how to improve energy efficiency / not understanding the technology (33%), and the workforce being resistant to new technology (33%).
Renewables alone are not enough
The research also points to a growing risk of 'post renewables‑ complacency'. Among organizations in the US that have switched to renewable energy sources (38% of respondents), 32 percent report a reduced focus on energy efficiency.
While renewables lower the carbon intensity of energy, they do not reduce the volume consumed - meaning significant efficiency gains remain untapped, even for companies that have already secured green power. As a result, opportunities to strengthen resilience, control long-term‑ costs and reduce exposure to volatility are being left on the table.
When asked about their primary reasons for investing in energy efficiency, respondents in the US said reducing energy costs (48%), improving their resilience and competitiveness (37%), and complying with regulations (32%).
The next phase of the industrial energy transition will be defined by delivery capability. While activity levels are high across businesses in the US and globally, efforts remain shallow, lacking coordination and long-term‑ structure.
"American manufacturers and industrial companies understand the urgency of energy efficiency, especially in this current economic cycle where power is limited in certain industry expansion, such as data centers. But many are stuck between intent and results,” Koay concludes. “ABB bridges that gap with an integrated approach—we combine advanced diagnostics, modernization of critical systems like motor drives, intelligent software optimization, and flexible financing models backed by ongoing lifecycle support. This end-to-end energy intelligence transforms isolated efficiency projects into sustainable, measurable performance gains that compound over time."
For the full report, visit End-to-end energy intelligence. Closing the efficiency execution gap.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
ABB Motion, a global leader in motors and drives, is at the core of accelerating a more productive and sustainable future. We innovate and push the boundaries of technology to contribute to energy efficient, decarbonizing and circular solutions for customers, industries and societies. With our digitally enabled drives, motors and services we support our customers and partners to achieve better performance, safety and reliability. To help the world’s industries outrun – leaner and cleaner, we deliver motor-driven solutions for a wide range of applications in all industrial segments. Building on over 140 years of domain expertise in electric powertrains, our more than 23,000 employees across 100 countries learn and improve every day. go.abb/motion
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