A 65-year-old industrial giant is undergoing a remarkable transformation in the digital age. Schneider Electric, a global leader in energy management, is injecting $46 million into modernizing its two flagship manufacturing facilities in Lexington, Kentucky and Lincoln, Nebraska.
This strategic investment goes beyond routine equipment upgrades, representing a comprehensive plan to enhance production capacity, optimize energy efficiency, and prepare for growing long-term demand in North American markets.
Strategic Expansion in a Booming Market
The investment comes as the global energy management sector experiences unprecedented growth. According to Precedence Research, the market is projected to expand from $45.1 billion in 2021 to $153.6 billion by 2030.
"Our responsibility is to meet the increasing demands of our customers and partners across our manufacturing and distribution network, especially in today's complex economic and energy environment," said Ken Engel, Senior Vice President of Global Supply Chain for Schneider Electric North America. "These investments demonstrate our commitment to that promise."
Smart Factory Transformation
The core of the investment focuses on implementing advanced automation and connectivity technologies. Both facilities will receive new automated assembly machines, stamping presses, and injection molding equipment to replace aging machinery that has been in service for nearly two decades.
"We're replacing outdated equipment with newer technology to improve production efficiency," explained Venancio Figueroa, Vice President at Schneider Electric, in an email statement.
The modernization delivers three key benefits:
- Enhanced operational efficiency: Advanced equipment and automated processes will reduce manual intervention, shorten production cycles, and lower costs.
- Reduced maintenance downtime: Online diagnostics and predictive maintenance capabilities enable remote monitoring and preventive servicing.
- Optimized energy management: Connected equipment allows real-time monitoring and adjustment of energy usage for sustainable production.
Strengthening North American Supply Chains
The initiative forms part of Schneider Electric's broader strategy to reinforce its North American manufacturing base. The company has invested hundreds of millions in recent years to enhance U.S. production capabilities, including a $100 million commitment in 2022 to establish three new manufacturing sites.
These moves demonstrate Schneider Electric's response to global supply chain challenges, reducing dependence on external networks while improving resilience against geopolitical risks and market fluctuations.
Future Growth Initiatives
Beyond the Lexington and Lincoln upgrades, Schneider Electric is constructing a new production facility in El Paso, Texas scheduled to begin operations by year-end. The company is also expanding two Mexican plants to meet growing demand for circuit breakers, switchboards, and other electrical equipment.
The modernization projects are expected to conclude by late 2024. The revitalized facilities will become key components in Schneider Electric's global manufacturing network, supporting energy management solutions across North America and worldwide.
As an industry leader, Schneider Electric continues to drive innovation in energy management and automation solutions, positioning itself at the forefront of sustainable industrial transformation.