Energy efficiency (EE) improvement is one of the most crucial elements in the decarbonization of industry. EE potential within industries largely remains untapped due to the lack of information regarding potential EE measures (EEM), knowledge regarding energy use, and due to the existence of some inconsistencies in the evaluation of energy use. Classification of energy end-using processes would increase the understanding of energy use, which in turn would increase the detection and deployment of EEMs. The study presents a novel taxonomy with hierarchical levels for energy end-use in manufacturing operations for the engineering industry, analyzes processes in terms of energy end-use (EEU) and CO2 emissions, and scrutinizes energy performance indicators (EnPIs), as well as proposing potential new EnPIs that are suitable for the engineering industry. Even though the study has been conducted with a focus on the Swedish engineering industry, the study may be generalizable to the engineering industry beyond Sweden.