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The new digital industrial technologies, popularly known as Industry 4.0, will transform the industrial workforce. The number of jobs created will be greater than the number of reduced vacancies, however, workers will have to develop different skills. Through technologies such as augmented reality, manufacturers can help professionals stay or return to the workforce in completely new roles. These results are presented in an unprecedented report by the The Boston Consulting Group (BCG), entitled “Man and Machine in Industry 4.0: How Will Technology Transform the Industrial Workforce Through 2025?” .

To understand how the industrial workforce will evolve with Industry 4.0, the study authors analyzed the effects these new technologies will have on the German manufacturing industry. The forecast is a net increase of around 350,000 jobs in Germany by 2025. The increase in the use of robotics and computerization will reduce the number of jobs in assembly and production by around 610,000. However, this drop will be offset by the creation of around 960,000 new jobs, especially in the areas of IT and data science.

"The idea that implementing Industry 4.0 will result in the loss of many traditional manufacturing jobs on the factory floor is only part of the story," says Markus Lorenz, partner at BCG and co-author of the report. "On the bright side, technological advances promise to benefit many workers, with a more positive outlook on the market," he says. These advances will create many jobs in areas such as human interface design and data manipulation, for example. Furthermore, by implementing technologies such as robotic assistance systems and augmented reality, manufacturers will help professionals return to the workforce, especially those who have been forced out due to a lack of understanding and experience.

BCG produced the research in partnership with IoT Analytics, a provider of solutions for Industry 4.0 and the internet of things. The authors analyzed the quantitative effects of Industry 4.0 on the industrial workforce, studying how the use of the ten most influential cases of these technologies will affect the evolution of 40 job groups in 23 industries in Germany. To understand how each use would affect the number of employees needed in specific job groups, the authors worked with 20 industry experts to analyze how the use would drive productivity gains for existing roles or create new opportunities.

The workforce will have to keep pace with the changes
Industry 4.0 will bring about significant changes in the way workers perform their jobs, and new work groups will be created, while others will become obsolete. How Industry 4.0, especially robotics, will replace human labor remains a matter of debate among experts. Manufacturers will increasingly use robotics and other advances to help workers. This means that the number of jobs with physical or routine assignments will decrease, while the number of jobs that require flexible responses, problem solving and personalization will increase. "To succeed in an evolving workplace, workers will have to be even more open to change, have greater flexibility to adapt to new roles and work environments, and get used to continuous interdisciplinary learning," says Michael Russmann. , partner at BCG and co-author of the report.

"In addition to transforming the workforce, Industry 4.0 accelerates the need for new types of leadership skills and intensifies competition for talent in many countries," says Rainer Strack, senior partner at BCG and co-author of the study. To master the variety of challenges ahead, companies need to focus attention on strategic workforce planning.

Stakeholders must prepare for the transformation
Changes in the profile of jobs have significant implications for industries, education systems and governments. The authors offer recommendations to business and political leaders on how they can embrace Industry 4.0 and thereby increase productivity and the growth of the industrial workforce. Companies need to train their employees, renew their organizational models, and develop strategic approaches to recruitment and planning. Education systems must seek to provide broader skill sets and close the looming gap in IT skills. Governments can explore ways to improve central coordination of initiatives that promote job creation.
 

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