Manufacturing is being transformed through a new world of digital factories. Ubiquitous sensing and connectivity at the edge are yielding data that opens the door to new depths of operational insight. Simultaneously, industrial organizations are increasingly focused on becoming more sustainable, specifically by reducing energy consumption. In this session we will discuss trends including modular system design, localized decision making, and ubiquitous sensing in the context of increasing intelligence at the edge. These innovations are central to the future of industrial system design and will be a key enabler of digitization, allowing manufacturers to reduce energy consumption while driving critical business goals.