March 2019

| 18 | March 2019 www.smartmachinesandfactories.com | FEATURES | They can then assess their existing IT infrastructure to identify the improvements needed to increase their level of automation. During the third stage, manufacturers create a bespoke digital roadmap charting the subsequent three years of digitalisation. Finally, the roadmap is put into practice, performance is tracked and return on investment is evaluated. Industrie 4.0 allows manufacturers to shift away from centralised control over production processes — where engineers must program machines to turn blank materials into finished products — to an environment where sensors, software and robots manage processes. Lending greater control to machines results in faster production, higher quality products and cost savings due to improved maintenance and decreased waste. The benefits explain why, since 2011, Industry 4.0 has provided a framework on which other countries have built their own digitalisation initiatives. Leadership in the Nordics According to the European Commission’s Digital Transformation Scoreboard 2018, the top five countries on the Digital Integration Index are Denmark, Iceland, Norway, Sweden and Finland. In particular, Denmark holds a strong position in the global manufacturing industry and is ranked first on the Digital Economy and Society Index (DESI), thanks to the Manufacturing Academy of Denmark (MADE). The initiative is a collaboration between manufacturing companies, five universities and three research and technology organisations. With a budget from 2014 to 2019 of €50 million, provided by the Government and private investment, Danish manufacturers upgraded their factories with connected digital systems. In addition to internal factory improvements, leading businesses offered practical support to smaller manufacturing companies by visiting their facilities and hosting conferences and workshops. Such outreach activities are essential for digitalisation efforts to benefit the wider industry and economy. Interestingly, 15 of the companies participating in the MADE programme reported a revenue increase of €135,000 and collective savings of €5.5 million. Danish manufacturers must now ensure the sustainability of the programme if the industry is to advance further. USA The USA is the largest economy in the world by nominal GDP. Its manufacturing sector accounts for 11.6% of its GDP, employs over twelve million people and makes up two thirds of all exports. In the early 2000s, the USA’s manufacturing industry had a strong research and development focus but was less effective at translating new ideas into commercially viable products. It also relied heavily on outsourcing and the growth of domestic industries such as finance, construction, real estate and services. These weaknesses led to a dramatic loss of manufacturing jobs in the USA and a subsequently weak industry that threatened the country’s economy. According to an estimate by the Information Technology and Innovation Foundation, approximately one third of