Tech infrastructure, data strategy are key in future of industrial automation.
Energy industry outlook: Key takeaways
Middle market organizations must understand changes in the energy landscape.
Middle market leaders need to understand the impacts of the energy crisis.
Energy sector trend #1: IoT risk management
Amid rising production costs and supply chain challenges, industrial organizations are driven to enhance efficiency and productivity through technology, particularly operational technology (OT) and industrial Internet of Things (IIoT) capabilities, which offer new opportunities but also pose risks. The remainder of 2023 and beyond will see enhanced data access and utilization playing a crucial role in achieving organizational success.
Industrial companies benefit from IoT adoption, but must manage risks
IoT risk management will be critical for industrial companies as adoption continues.
Energy sector trend #2: Growth in energy transition
Rising energy transition investment
Looking ahead to the next 12 months, rising energy demand, expanding policy aid and healthy balance sheets will incentivize the industry to continue aggressively investing in the energy transition.
For the first time, energy transition investment is on the brink of overtaking fossil fuel investment. Looking ahead to the next 12 months, rising energy demand, expanding policy aid and healthy balance sheets will incentivize the industry to continue aggressively investing in the energy transition. This shift will reshape the way organizations power their businesses.
Energy sector trend #3: Energy supply scramble
The prevailing economic conditions with sustained elevated commodity prices, geopolitical tensions, and increasing demand for energy indicate a prolonged period of higher energy prices. This energy landscape impacts manufacturers on multiple fronts, affecting strategies, margins, supply chains, and ESG considerations. Volatile energy prices disrupt manufacturing value chains, leading to increased costs, energy consumption, and transportation expenses.
The energy supply scramble and its impact on manufacturing
The energy price landscape affects manufacturers on multiple fronts, from strategy development to protecting margins to supply chain and ESG considerations.
RSM contributors
Q3 2023 Middle Market Business Index (MMBI)
Middle market economic sentiment remains elevated as companies adjust to higher pricing levels
Key findings:
- Seventy percent of those surveyed expect revenue to rise over the next six months.
- Recession probability appears to be ebbing as organizations adjust to higher pricing levels.
