Where energy meets automation: America’s next industrial revolution
Productivity gains are not just corporate goals but national imperatives. America faces a manufacturing workforce deficit exceeding two million positions—a gap expected to widen to over three million within the next decade. We cannot solve this with labor alone; there aren't enough people. And we cannot solve it with wage increases alone either.
This workforce crisis intersects with an unprecedented energy challenge that threatens to stall industrial progress. Energy costs have risen 23% over the past five years, while AI-driven data centers will drive 50% of grid growth through 2035 on infrastructure that's already 70 years old. As manufacturing becomes more automated and robotics-driven, its dependence on resilient, affordable energy intensifies. Without rethinking how manufacturing consumes and manages energy, industry will be forced to limit growth, not because of lack of demand or innovation, but because the energy systems powering it are no longer sustainable.
- 2M employment shortfall by 2030
- Over the past 5 years, energy costs have risen 23%
- AI-driven data centers will drive 50% of grid growth through 2035
To unlock the next wave of productivity, we must make energy more efficient for manufacturing through software-defined systems, intelligent automation, and integrated infrastructure.
History teaches us that software-defined architectures can enable exponential transformation. Just as the iPhone revolutionized mobile technology through software, manufacturing must embrace the same shift. Today’s industrial landscape is filled with data from AI, robotics, and digitally connected infrastructure that produces intelligent insights used to take bold, strategic action. It also delivers real business results that solve the growing labor and energy challenges.
6x
Digital transformation is not only driving operational efficiency but also revolutionizing how manufacturers attract, train, and retain talent. Intelligent systems empower the workforce through real-time insights, upskilling opportunities, and collaborative platforms that bridge the gap between physical labor and digital expertise. Meanwhile, demand-side efficiency becomes increasingly critical as energy costs rise. Smart manufacturing leverages granular consumption data to optimize energy use in real time, ensuring that production schedules, equipment operation, and facility management align with both cost and sustainability goals. Proactive energy management on the demand side protects margins and supports long-term resilience for industrial leaders.
When comparing closed to open systems, open systems win, because they unlock flexibility, scalability, and speed that closed systems simply cannot match. Currently, most automation embeds technology within hardware. These closed systems are limited, with every update or integration requiring physical changes and vendor-specific components. This curtails innovation and slows productivity.
Open systems flip the model. When intelligence comes from software versus hardware, manufacturers can update, optimize and scale operations with minimal disruption. This enables faster deployment of new capabilities, seamless integration across platforms, and real-time responsiveness to change. It essentially decouples innovation from physical infrastructure, making it possible to optimize without rebuilding from scratch.
Schneider Electric’s EcoStruxure Automation Expert, the industry's first open, software-defined automation platform, also illustrates this shift. This platform is already enhancing productivity for leading enterprises by decoupling software from hardware, enabling rapid system updates, reducing ownership costs, and powering the flexibility critical for navigating evolving market demands. Using this solution, Shell was able to turn its Alberta, Canada refinery into one of North America’s most efficient and modern hydrocarbon processing sites.
There are three phases to change: first it's crazy, then it's dangerous, then it's obvious.
As leaders, we cannot wait until software-defined manufacturing becomes obvious — by then, the competitive advantage will have passed us by. The barrier is not technological capability but leadership mindset. The manufacturing sector's entrenched reluctance to abandon traditional practices poses a significant obstacle, but history rewards decisive leadership in moments of uncertainty.
As manufacturing becomes more energy-intensive and data driven, the companies and countries that master energy and automation integration will be the leaders. They will have smarter energy management, predictive maintenance, and greater control, resulting in higher productivity and lower operational costs. Energy and automation cannot be separated. This is a systems engineering problem requiring integration across automation and energy, fueled by data.
The U.S. has the necessary tools and talent. What we need now is the collective courage to act decisively, to innovate boldly, and to transition from cautionary skepticism to clear-sighted urgency. The skills gap is very real, but the technology gap is not. The moment to act is now—before the visionary becomes the ordinary.
Want to hear more?
Aamir Paul at Automate 2025
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