Digital transformation as a strategy to overcome modern crises in Manufacturing

The global situation triggered by COVID-19, conflict in Ukraine, rising inflation and the shortage of raw materials is pushing the manufacturing industry to adopt new technologies.
In recent research, conducted in Brazil, China, Germany, Italy, Poland, and the United Kingdom, we asked HR managers, plant managers and production managers about the challenges and opportunities of the 4th industrial revolution.

Labour shortage

New roles, and a move away from physical labour

A lack of factory-floor workers is one of the main challenges faced by Manufacturing today – 66% of companies report difficulty finding specialised workers.
Managers attribute this to fewer people wanting a blue-collar career and a skills lag when adapting to the newest technologies.
36% of interviewees believe the root cause is the traditional misconception about manual, low-skilled work.
Looking forward, workers will increasingly focus on setting up machinery and monitoring production quality, and over the next three years companies will require:

• Production operators
• Machinery and device operators
• Quality controllers

 

66%

of companies report difficulty finding specialised workers

 

Driving economic growth

Continued growth and optimism

Representing 17% of the global Gross Domestic Product, Manufacturing is often described as the backbone of both social and economic development.
Despite worldwide economic instability, the manufacturing industry continues to grow. Between 2020 and 2021 total market value increased by 21% to reach 16.4 trillion U.S. dollars.
Experts, who are optimistic about the industry’s development, highlight two priorities for the future: automation and sustainability.

 

21%

total market value increased between 200 and 2021

 

Smart factory

The 4th industrial revolution is here

The results show that 84% of companies have already implemented some digital solutions. The most common are cloud computing, digital integration, big data analytics and cybersecurity.

Many decision-makers are accelerating the digital transformation in response to labour shortages: 22% state they will definitely implement new digital technology in the next five years, while 63% probably will.
The increased demand is mirrored by technology suppliers’ projections, with the industrial automation market set to reach a value of 265 billion U.S. dollars by 2025.

 

84%

of companies have already implemented some digital solutions

 

New skills and aptitudes

Combatting the labour shortage and upskilling your workforce

Only 25% of our sample consider that automation and digitisation will result in a reduction in employment. However, 85% agree that roles will change.
To adapt, 76% of experts consider continuous learning key to ensuring lifelong employability and 42% prefer training existing employees, taking advantage of their practical experience and company knowledge.
87% of the companies contacted are already planning training on digital tools.
While all manufacturers compete for workers with a similar set of hard skills, soft skills like flexibility and attention to detail, and a desire to learn have become almost more valuable.

 

87%

of the companies contacted are already planning training on digital tools

 

What to expect from Manufacturing in the future?

Read more in the full report