Perspectives on the near future of energy and lessons that cross over to manufacturing
Earlier this year we unveiled our State of Utilities Report, our annual research project that aggregates insights from hundreds of professionals on the current state and near future of energy distribution, utility operations, and the world of data analytics. (I encourage you to check it out.)
As best practices are widely and enthusiastically shared among domestic utilities (which do not compete with one another in the manner that other businesses do), and since process optimizations with energy are transferrable to the manufacturing space, I figured Smart Industry’s audience would be interested in a few takeaways from the report.
Crystal Ball 2025: Outlook for the power and utility sector
Loss continues to bedevil utilities, which even in this smart, digital era continue to struggle to get accurate views of energy losses throughout their distribution networks. This loss is comparable to downtime within a manufacturing facility, which (as you know) is considered a dirty word.
Similarly, challenges related to outage management are diverse and persistent. Climate changes are accelerating asset malfunctions. Compounding this issue is the increasingly dispersed nature of energy assets (think remote grids and individual EV charging stations that are popping up on seemingly every neighborhood block).
The lack of insights derived from proper outage-management analysis inhibits utilities from realizing faster restoration and improved estimated time of restoration (ETR). This translates to uptime in the manufacturing world.
See also: When stakeholders speak ESG, 'smart' utilities listen and evolve
Predictive and prescriptive measures can mitigate outages in the same way they prevent failures in the manufacturing sector, but only when those smart, data-driven programs are strategically designed with larger operational goals, embraced by personnel within the enterprises, and run properly.
Our 2025 survey reveals that the cloud is appealing; energy teams recognize the benefits of modern cloud computing—massive storage capabilities, quick access, improved security and decreased costs.
But various factors still limit cloud adoption among utility decision-makers. Those embracing cloud computing cite as incentives the enhanced ability to store, access, and analyze historical data, particularly equipment-performance data.
At some point in the not-too-distant future all utilities’ OMS systems will operate in the cloud, securely reaping those full benefits. Until then, hybrid approaches optimize performance as enterprises make this transition.
Episode 4 of (R)Evolutionizing Manufacturing: The Art of the Possible and The Art of the Practical
Similarly, strategic data integration is a recognized goal, but remains a challenge for many energy providers. As executives within the manufacturing sector fully understand, when a utility’s data is siloed, insights are left undiscovered.
Efficiencies are missed and optimizations are unrealized. In short, a holistic view of data enables a wholly realized data-analytics strategy. We still have ways to go.
The overwhelming majority of respondents to our survey (88%) are gaining actionable insights from their data, which is a positive sign. Modern utilities—much like their counterparts in manufacturing—must implement smart, data-driven strategies to operate efficiently.
That fact is true at the start of the new year, and will only become more pronounced as we all step into our shared futures.
