Powering the future of utilities

A wave of reindustrialization is sweeping across the utilities sector, driven by climate change concerns, the push for resilient supply chains, and technological innovation. Reindustrialization is a transformative force that is already reshaping the industry and offers utility companies a unique opportunity to secure their operations and lead the transition to a more sustainable energy future.

The Capgemini Research Institute’s report, The resurgence of manufacturing: Reindustrialization strategies in Europe and the US, found that 74 percent of utilities organizations have a reindustrialization strategy or plan to develop one.

This shift promises to boost competitiveness, accelerate innovation, and enhance sustainability by embracing sustainable practices, investing in technology, and developing a highly skilled workforce.

What is reindustrialization?

Reindustrialization is the re-establishment of global supply chains and manufacturing operations, often with the aim of bringing them closer to – or even within – domestic markets.

Climate change and competitiveness fuel reindustrialization

The utilities sector recognizes the urgency of climate change, with 67 percent citing sustainability concerns as the primary driver of reindustrialization. At the same time, they are strategically focused on enhancing competitiveness and recapturing economic value through domestic manufacturing.

A strategic shift towards domestic manufacturing

Utilities organizations are increasingly emphasizing domestic manufacturing to ensure national security and to create a more sustainable energy infrastructure. While 43 percent have invested in reshoring initiatives, the future holds even greater promise, with domestic facilities projected to account for 54 percent of production capacity within three years, up from 50 percent today.

Sustainability: A central theme in reindustrialization

The utilities industry is strongly committed to environmental sustainability, with reindustrialization playing a pivotal role.

Technology as a key enabler for a sustainable future

The utilities sector is embracing digital technologies as a cornerstone of reindustrialization. A significant majority are increasing investments in digital technologies to boost productivity and combat climate change. This demonstrates a strong belief in technology’s transformative power to create a more sustainable and efficient energy landscape.

A highly skilled workforce for a sustainable energy transition

Utilities organizations recognize that reindustrialization will require a highly skilled workforce. A significant 78 percent acknowledge the need for upskilling current employees and attracting new talent with expertise in digital technologies, engineering, and creative problem-solving. The share of the manufacturing workforce in the utilities sector with advanced digital skills is anticipated to increase from 30 percent to 52 percent in the next three years.

Action steps for acceleration

Reindustrialization offers immense potential to reshape the utilities sector and accelerate the transition to a sustainable energy future. To seize this opportunity, utilities organizations should prioritize the following actions.