The topic of digitalization is on everyone's lips and certainly more important and relevant than ever. This applies to industry, too, of course. One frequently encounters the term "digital factory." This is at the top of the industry's management agenda: 91 percent of manufacturing companies in Germany are investing in digital production.
The primary goals are increased efficiency and greater proximity to customers, enabling more flexible responses to changing requirements. This is the finding of the study "Digital Factories 2020 – Shaping the Future of Manufacturing," for which PwC/Strategy& surveyed 200 German industrial companies.
Dr. Reinhard Geissbauer, Head of Industry 4.0 EMEA and Managing Director at Strategy&, PwC's strategy consultancy:
"The goal of the digital factory is to produce 'batch size 1' – a product tailored to each customer at the lowest possible cost. The companies are clearly committed to Germany as a location and to production in the heart of Europe. 93 percent of respondents who have expansion plans for their digital factories want to make at least some of these investments in Germany over the next five years."
When it comes to digitalization, companies in Germany are still at a considerable stage. Six percent of the companies surveyed describe their factories as already fully digitalized. The vast majority (85 percent) have at least partially networked or are using digital technologies for stand-alone solutions. Nine percent, in contrast, do not plan to expand to a digital factory.
People are at the center of the digital factory
It should be clear to all involved that the path to the smart factory is a rocky one, but also a necessary one. Around half of those surveyed admit that their employees are not open to digital transformation (49 percent) and that their company lacks a true digital culture (52 percent).
This is a challenge for companies, especially because employees also play a central role in the digital factory:
"It would be a big mistake to underestimate the importance of people in the digital factory. However, the interaction between humans and machines is being redefined. In this process, companies must closely involve and engage their employees,"
demands Geissbauer.
Overall, constant employment expected
Over half of the companies surveyed (56 percent) estimate that their workforce will remain unchanged or even grow. The proportion of employees without professional qualifications will decline from 21 to 17 percent by 2022; employees with technical vocational training will remain constant at 59 percent of the workforce. At the same time, companies expect the number of employees with university degrees to increase from 19 to 24 percent over the next five years.
Companies are concerned about the shortage of skilled workers: 81 percent are struggling to meet their demand for qualified personnel. They intend to compensate for this shortage primarily through significant investments in the training and development of their workforce.
Digital factory ensures prosperity in Germany
Despite all the critical voices regarding digitalization, the majority are still looking positively to the future: 90 percent of study participants are convinced that Industry 4.0 brings more advantages than threats to their business:
"Digitalization is a huge opportunity for the German economy and society. It will have a positive impact on prosperity and living standards and further strengthen Germany as a business location,"
This is Geissbauer’s conclusion.
