Manufacturing is commonly defined as an energy-consuming process that converts basic materials into useful final products. The manufacturing industry is a pillar of modern society, and is responsible for creating the goods required by modern lifestyles. It is also a pivotal economic force, contributing approximately 26.3 percent of global GDP. As of late, manufacturing has become a focal point in efforts to combat climate change, as it accounts for about 20 percent of greenhouse gas (GHG) emissions. Globally, the manufacturing industry consumes about 51.7 percent of all primary energy, and 41.7 percent of the electricity generated. In Singapore and many other nations such as China, India, Brazil, Russia, and Germany, the industrial sector can account for as much as half of total electricity consumption.

Over the past several decades, it has been observed that the manufacturing sector has grown alongside rising energy consumption. Overall energy consumption within developed countries such as the USA has been in general decline since 1998, although the proportionate compositions of different sources of energy – such as crude and hydroelectric – have been similar. In order to reduce unemployment and stimulate economic growth in the current economic recession, governments in developed countries such as the USA and UK have plans to renew their focus or industry, a measure which could lead to significant increases in energy consumption.