Full Title: Introducing the Integrated Net Present Value Framework: A Tool for Rethinking Value in US Light Manufacturing Investments
Author(s): Valeriya Azarova, Nabil Bennouna, Megan Gross-Wilkinson, Thomas Kwan, Silvia Madeddu, and Corey Stewart
Publisher(s): Rocky Mountain Institute
Publication Date: November 15, 2025
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Description (excerpt):
The US light manufacturing sector is on the cusp of a great transformation. Electrification, automation, and smart manufacturing open the door to unprecedented value creation. However, legacy decision-making processes are often ill-equipped to account for the complex benefits of process modernization investments — even though decision makers themselves are aware of these new sources of value.
This report introduces the Integrated Net Present Value (iNPV) framework to bridge the gap between what decision makers know and what they can factor into quantitative hurdle rates to make better informed investment decisions. Traditional cost-benefit analyses consistently undervalue the total benefits of technological transformation because they largely overlook risk mitigation and additional revenue streams. The iNPV framework provides a guide to measuring and monetizing these values.