Manufacturers Must Pair Energy Management Software with Brownfield Optimization to Fight Costs in Evolving Crisis

Geopolitical turmoil has once again displaced supply chains and shipping operations with no resolution in sight. The price of crude oil has surged more than 65% since February, reaching levels not seen since July 2022 (an aggravated period of the Russian invasion of Ukraine). The disruption puts new focus on energy management solutions such as Siemens’ Building X or Schneider Electric’s EcoStruxure as necessary cost-saving measures to maintain profit margins.

In addition, many companies have been prioritizing new greenfield constructions that better integrate digital infrastructure, allowing for a higher degrees of automation, control, transparency, and energy management. These investments, however, are a long-term solution to immediate needs. Investing in brownfield or pre-existing facilities allows manufacturers to experience certain benefits of optimization without the lengthy pipeline to pay-off.

The manufacturing leaders of tomorrow will pair the immediate practicality of energy management software solutions with the shorter time to value provided through digitally upgrading existing brownfield facilities to form a powerful one-two punch against the geopolitical forces pressuring manufacturing.

The price of energy is a top challenge for manufacturers in the United States (see ABI Research’s Industrial and Manufacturing Survey 2H 2024/1Q 2025: State of Play for Digital Transformation (PT-3657). Industries such as food & beverage, chemicals, pharmaceuticals, steel, cement, and electronics are especially dependent and energy-intensive. Given the recent surge in energy costs, it is reasonable to assume that the price of energy may not be even more important to manufacturers than other top challenges such as deploying technologies and cybersecurity risk.

The challenge of reducing energy costs is magnified by the legacy stature of existing manufacturing facilities. ABI Research found production processes at the majority of brownfield locations to be far from automated. For example, for every 15 greenfield locations that achieved “lights out” (or completely autonomous) status, only two brownfield factories could say the same. Brownfield locations were also almost twice as likely to report they were only in the “early automation” stage of digital maturity. Relying on these locations for most manufacturing processes means incurring massive energy costs that could otherwise be mitigated through automation and digitization solutions.

Given the severity of the recent energy disruption, manufacturers must take a compound approach to tackling energy prices. Software products such as Siemens’ Building X or Schneider Electric’s EcoStruxure Platform have immediate practicality. These solutions empower users to connect and manage building operations, including energy analysis. Customers of these solutions have reported between 30% and 50% energy savings after deployment. Future energy use can also be predicted, allowing manufacturers to see not just how much power their facilities currently draw, but to also plan for future energy needs.

Software solutions, such as Autodesk Factory Design Utilities, can be used to optimize existing brownfield locations. These software platforms provide Three-Dimensional (3D) imaging and design tools that bridge the gap between Two-Dimensional (2D) blueprints and reality. Constructing a digital factory floor is far cheaper than building a real one, and mistakes are far less costly. Manufacturers looking to upgrade can see in advance when new pipes accidentally clip through existing construction, or when certain areas will not reach compliance standards. This removes error from the equation, reducing costs and decreasing the time to value for brownfield improvements.

One last consideration: the U.S. industrial real estate market had a 7.5% vacancy rate in 2025. Recent estimates put the total vacancy rate in the European Union (EU) between 4% and 6%. These unused factories and warehouses represent another avenue for investment in brownfield optimization. Older or abandoned industrial buildings have their own challenges, including needing environmental remediation and cleanup efforts, as well as compliance-driven infrastructure upgrades. Nevertheless, the overall investment costs and time to value remain far lower than starting from scratch.

The ongoing geopolitical uncertainty has created opportunities for proactive manufacturers to seize control of their energy usage without the need for new construction. It is impossible to realistically predict how the Iran conflict will unfold, or whether it will be the last of its type for the near future. Manufacturing leaders should not wait and try to predict, but rather invest in avenues that will reduce energy costs and increase their resiliency going forward.