Engaging the Ecosystem to Bridge the Digital Divide
In honour of St Patrick’s day and as part of our ongoing series on the European Manufacturing Industry ecosystem,?we now turn our attention to Ireland. We take a look at the current state of the manufacturing industry in ireland and we outline some of the supports and resources available to Irish SMEs to help bridge the growing digital divide.?
Irish Manufacturing
Ireland's manufacturing sector is made up of a diverse range of industries, from pharmaceuticals and medical devices to technology and food and beverages.?
With exports of nearly €80 billion, manufacturing directly employs 12% of the population and accounts for 35.5% of the total value of the economy, making it one of Ireland's most important industries.??
Manufacturing has consistently performed well and was one of the few sectors of the Irish economy to show solid growth in 2021 and 2022, despite the challenges posed by the pandemic. The sector is expected to continue this rate of growth despite the ongoing uncertainty surrounding Brexit, global challenges such as supply chain disruptions, raw material shortages and rising inflation and energy costs, as well as the more perennial challenges of climate change and changes to the global tax regime.?
Leading Potential to Leading Position
Ireland's share of manufacturing (as a percentage of GDP) and high levels of process sophistication, degree of automation, workforce readiness, innovation intensity and industrial openness place it second only to Germany and Switzerland in its potential to lead in Industry 4.0.??
However, to turn this leading potential into a leading position, Ireland's manufacturing ecosystem will need to shift from the current paradigm of pipeline manufacturing where everything happens in a linear fashion, to embracing smart manufacturing, where digital platforms and cloud architectures support machine connectivity and drive innovation.??
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The Digital Divide
We see a growing digital divide in Irish manufacturing, with one side continuing to optimise their digital processes and the other at the beginning of their digital transformation journey.??While many of the large multinationals based in Ireland, such as Medtronic and Intel, have already embraced digital and indeed have large budgets and dedicated teams for operational excellence and lean manufacturing, family-owned SMEs are at risk of being left behind.??There are numerous avenues of support, resources and funding available through ecosystem partners to help SMEs bridge this growing digital divide in Irish manufacturing. Some examples include:?
Enterprise Ireland Digital Discovery Grant:??This grant provides incentives and support for companies to develop a strategic roadmap for their digital transformation. It's purpose is to fund digital readiness assessments and create clear roadmaps for digitalisation.?
EIT Boost Up Bridge: The EIT Manufacturing Boost Up Bridge! is a European manufacturing competition that rewards the most innovative and impactful technology integration projects. Ireland's first ever edition of the competition will take place in June 2023 and applications are open until 30 April. This competition holds a special place in our hearts as our project with MF Radeburg won gold in November 2022.??
5thIndustry:?As an ecosystem partner, 5thIndustry has its own role to play in bridging the digital divide. We see that SMEs across the continent face the same struggles - the factories may produce different things, but the challenges remain the same. Our mission is to use our expertise to make factories fit for the future and to drive competition and innovation across Europe through digitalisation.?In our workshops, we work with factories to create and implement a clear roadmap for their digital transformation, and with our solutions, we walk the walk in hands on digitalisation of manufacturing.?
Conclusion?
By working with partners such as the EIT, Enterprise Ireland and 5thIndustry, SMEs can remove the barriers to digitalisation such as lack of resources, funding, networks and expertise to take advantage of the opportunities digitalisation presents. For more information, book a meeting today.