Recent report shows that firms must also invest in skills and systems to fully reap the rewards
The automotive industry is leading the way in smart factory investment, according to a recent Capgemini report. The findings show that while organisations are expecting productivity gains of around US$150 billion, they must also invest in reskilling staff and new systems to fully reap the benefits.
The How automotive organizations can maximize the smart factory potential report found that investment in smart factories will increase by over 60% by 2023, but that only 10% of automotive firms are ready to deploy at scale and take full advantage.
The industry has already exceeded expectations in the area, with 30% of factories being made smart in the last 18-24 months, compared with previous plans for 24%. Maintaining this fast pace of development, organisations also have plans to convert a further 44% of factories.
“Automotive companies have progressed better on their smart factory initiatives in the last two years and clearly plan to increase the pace of adoption from here onwards,” said Markus Winkler, head of automotive at Capgemini. “Today, auto original equipment manufacturers (OEMs) and suppliers are committing significant investment, and by 2023, we can expect these investments to pay off with organisations realizing annual productivity gains of at least 2.8% to 4.4%. However, to get there, auto firms must address gaps in the talent pool, technology strategy and organisational commitment to deploy at scale, and realise the full benefits offered by smart factories.”