Five manufacturing topics and trends to watch in Europe
EIT Manufacturing
Our purpose is to improve people’s lives through sustainable manufacturing.
What are the key trends and topics shaping the manufacturing industry in Europe? In this short article, we highlight five of them. As the industry continues to evolve, understanding these trends is key for companies to stay competitive in the changing market dynamics.??
AI and Gen AI
AI and Gen AI are making waves in Europe. The number of AI startups in the European Union has grown to 6,300 this year, with 10.6% specialising in generative AI, predominant locations include Germany (19.9%), France (17.5%), the Netherlands (10.9%) and Sweden (8.2%).?
2024 represents a record year for investment in generative AI startups in Europe, with total venture capital funding nearing €2 billion. This surge in investment is closely tied to the region’s shift towards a data-driven industry.??
In the manufacturing sector, this change is paving the way for interconnected data-driven networks, leading to increased productivity, improved customer experiences and positive societal and environmental impacts.??
What’s next after this AI hype? How can we ensure a stable growth by adopting proven AI solutions???
According to Gartner, more than 100 million people will be working alongside synthetic virtual colleagues known as robo-colleagues by 2026. However, to fully harness the power of AI and Gen AI, it is essential to effectively manage data, prioritise safety and establish robust governance practices.?
Circular manufacturing??
As the urgency of climate crisis intensifies, there is an increasing need to speed up circular manufacturing like never before.?
Circular manufacturing is a viable solution to alleviate pressure on natural resources while fostering long-term economic growth. Circularity is also seen as a promising business model that is aligned with the EU’s target for climate neutrality by 2050.?
Europe’s circularity rate stood at 11.5% in 2022, which had only increased by less than one percent since 2010. There is still a big gap to bridge to meet the European Union's goal of doubling the circularity rate by 2030. Meeting this target requires increasing the amount of recycled waste and reducing material usage and minimising EU’s reliance on primary resources and imported materials from countries outside the EU.??
Supply chain resilience??
Supplier networks today are like intricate webs, with many connections and layers. These networks, however, are vulnerable to disruptions. To enhance the resilience of supply chains, companies are increasingly turning to diverse suppliers, which can provide a safeguard against potential disruptions. Moreover, the growing trend of re-shoring production to local areas is influencing the dynamics of supply chains and driving organisations to reassess their operational strategies.?
Diversifying suppliers through double or triple sourcing mitigates business risks, but effective supply chain management also depends on digital traceability of products and processes. Notably, initiatives such as the EU Chips Act, aimed at strengthening European competitiveness in semiconductor manufacturing, stress the importance of leveraging digital tools and traceability for enhancing supply chain efficiency and competitiveness.?
Digitalisation and workforce reskilling/upskilling ?
The landscape of technical skills is rapidly changing. One in five of today's skills will become irrelevant in three years.??
Upskilling and reskilling the workforce are crucial for adapting to digital transformations and bridging skills gaps. The emphasis should not only be on mastering new technologies but also on empowering frontline workers to thrive alongside these advancements.?
A recent survey conducted by McKinsey revealed that about seven in ten companies acknowledged that the business impact of reskilling initiatives surpassed or equalled the investment made in them. This highlights the tangible benefits of investing in reskilling programmes to ensure that the workforce remains relevant and competitive in a constantly evolving job market.??
Industrial Metaverse ?
The Industrial Metaverse has gained much attention, but its potential to revolutionise the manufacturing industry may still be largely undiscovered. Essentially, it can analyse and fix issues quickly, even detect problems before they arise, optimising manufacturing processes. Moreover, Digital Twins technology simulates real-life infrastructure that allows creation of innovative solutions for external operations. Furthermore, it also fosters a high-level of collaboration, enabling people who are not physically in the same location to work and innovate together. By combining virtual reality support for hands-on physical work, this will also address the long-standing issue of skilled labour shortage in the manufacturing industry.?
Projections suggest that by the end of the decade, the Metaverse will evolve into a multi-trillion-dollar market, with industrial applications playing a substantial role. Moreover, this technology has the potential to make sustainability and digital transformation more accessible to businesses and industries. It will streamline innovation, accelerate progress, reduce time to market and optimise resource efficiency.??
EIT Manufacturing is actively working to address these key topics by encouraging dialogue and collaboration through its Thematic Working Groups initiative. Furthermore, these topics will be central focus points at the upcoming European Manufacturing Conference in Brussels on 24-25 September, providing an opportunity to discuss them with policymakers, academia, research organisations, startups, scaleups and industry experts.?
Check out the conference programme for further details and join the conversation on the future of manufacturing in Europe: https://www.eitmanufacturing.eu/news-events/events/european-manufacturing-conference-2024/ ?
Sources:?
Co-Founder | Product Engineer | Speaker Circular Rubber Platform prevents rubber waste and increases renewable- and recycled raw material content in OEM rubber products.
3 个月What was the source for the circular manufacturing rate in Europe?