Moving up the Value Chain

Moving up the Value Chain ManuFuture 2030 Strategic Vision

Heinrich FlegelChairman ManuFuture HLG

24th October 2017, Tallinn

World Trade Figures

Manufactured goods by far Number one in world exports. In 2015, the figure amounted to 11.404 billion USD

Source: WTO trade statistics 10/20163

Importance of Industry for EuropeIndustry as a guarantor for prosperity, innovation and jobs

Manufacturing plays a central role in Europe’s economy

Production of goods combined with high-quality services

EU Manufacturing

€7 trillionturnover

30 milliondirect jobs

60 millionindirect jobs mainly

in small and medium –sized enterprises (SMEs)

80% of total EU exports

4

Key Enabling Role of Manufacturing

• Manufacturing delivers the products and product related services in demand in EUROPE and worldwide

• Manufacturing is application of Engineering Intelligence + Intelligent use of Resources and Energy as well as Skills and Abilities of people

• Manufacturing needs Advanced engineering methods for industrial application of …• Materials• Processes• Information & Communication Technologies

• Manufacturing is all about efficiency (“do more with less”) and competitiveness (“do it better and faster”) and bring the best out of humans and their abilities (“human factor”) without harming the environment

• Manufacturing needs continuous technological input to innovate!5

Future Markets offer Lots of Business Opportunities

6

Moving up the value chain

Inbound Logistics

OperationsOutbound Logistics

Marketing Sales

Services

7

R&DVoice of

Customer

Business model „solution provider“Tailor-made solutions and offers for every customer

Demand for engineering expertise increases massivelyRising development costs

Vision 2030 - Extended System of ManufacturingManufacturing Systems are complex and far beyond factories “only”

8

The Value Added is provided by co-operation of many actors:

• Universities• RTOs• Start-ups• SMEs• Medium sized companies• Large companies• Service providers

R Life Cycle

Regional periphery

Global periphery

Manufacturing

Services

Factory

Suppliers

Logistic

Suppliers

Engineering

Suppliers

Public

Institutions

Product-

Services

Umwelt

System Production

© Westkämper, Löffler

ICT enabled

Vision 2030 – Stable Trends, Challenges and Opportunities

9

Manufacturing is or will become ICT enabled, real-time, smart and networked

Customisation„Individual Products“

Human Potential & Knowledge

„Generation of Knowledge“

High PerformanceQuality, Cost, Time

Ultra-efficient Use of Resources„Sustainability“

Vision 2030 - Progress in relevant Technologies for Future Competitiveness

10

Micro- and Nano Electronics

Robotics

Sensor Technologies

Photonics

Materials Technologies

Bio Technologies

Information and CommunicationTechnologies (ICT)

- Cyber-physical systems- Interfaces

Mathematical Methods- big data/smart data- artificial intelligence- machine learning

Additive manufacturingProgression of classical technologies beyond today's borders- ultraprecision to the nano range- resilient manufacturing

processes

Manufacturingis interdisciplinary and has an integrating role

Vision 2030 - Megatrends and Drivers

DDRIVERS

12

Vision 2030 - Scenarios for Manufacturing 2030

Set 1 Set 2

NOW NOW

2030 2030

13

Vision 2030 – Details Scenario Set 1

Vision 2030 – Job Forecast / Indirect Jobs will increase

14

Jobs*

Direct jobs

Service jobs

Knowledge and optimisation

Shopfloor

Indirect jobs

* Schematic Diagram Time

LEVEL 1STRATEGIC

ALLOCATIONOF RESOURCES

LEVEL 2CO-ACTING

VALUE-STREAMS

LEVEL 3CONSUMER

CENTRED

PEOPLE, MACHINES AND KNOWLEDGE AS PRODUCTION

FACTORS

SUSTAINABLE USE OF RAW MATERIALS

USED PRODUCTS AS MATERIALS TO CREATE NEW

PRODUCTS

NEW BUSINESS AND FINANCE

MODELS

DIGITALISATION & NETWORKING OF VALUE-

ADDING SYSTEMS

MERGING HUMAN CONSCIOUSNESS AND

MACHINE CAPABILITY TO DESIGN, BUILD, OPERATE

AND MAINTAIN EVOLUTIONARY

MANUFACTURING SYSTEMS AND PRODUCTS

EXTENDED COLLABORATION BETWEEN VALUE STREAMS

EVOLUTIVE AND SUSTAINABLE

STANDARDS FOR COMMUNICATION,

ENERGY, ETC.

CONSUMER-ORIENTED LIFECYCLE (IDEALISATION,

ENGINEERING, MANUFACTURING, USE AND SERVICE,

REPAIR AND RECYCLE)

CONSUMER-ORIENTED INNOVATION

MANUFACTURING OF THE PRODUCT NEAR OR

BY THE CONSUMER

CONSUMER-ORIENTED

BUSINESS MODELS AND PLATFORM

ECONOMY

PRODUCT LIFESPAN | HUMAN-TECHNOLOGY RELATIONSHIPDRIVERS

MANUFUTURE Vision 2030

HUMAN-CENTRED COLLABORATIVE NETWORKED MANUFACTURING ECOSYSTEMS

High-level Vision for European Manufacturing 2030

TECHNICAL

AND

SCIENTIFIC

LEADERSHIPCOMPETITIVENESS

SUSTAINABILITY

RESILIENCE

2010 2020 2030

LONG TERM

SUCCESS

Impact of Global Megatrends

Let’s shape our future together!