The importance of the manufacturing industry for Sweden’s prosperity cannot be underestimated. When it comes to finances, jobs and innovation, industrial companies have taken us to where we are today. Large and small, they are, in many cases, the result of several generations of commitment. Regardless of size, they need to be developed to maintain competitiveness.

Industry 4.0 is called the digital, automated, optimized and more sustainable industry of the future, where technologies such as AI, IoT and cloud services pave the way for smarter processes, new ways of working and services.

The pandemic has increased the pace of the digital transformation. There is now a strong interest in continued investments that increase the competitiveness of industrial companies. Below we present five challenges for Sweden’s industrial companies, where digitization is an important part of the solution. A stable and flexible connection in the factories will be a decisive factor in addressing the challenges.

1. Automation and digitization

New technologies such as IoT, the Internet of Things, and AI, artificial intelligence, have the potential to reduce costs, increase quality, and further streamline processes. At the same time, the foundation is laid for service-based business models and proactive maintenance. A larger proportion of the work is performed by robots that connect and become more intuitive, with the ability to learn gradually and understand spoken instructions.

This development is driven by the availability of digital infrastructure and mobile technology. Digitization and automation are crucial for companies to maintain their competitiveness, both locally and globally.

Sustainability

Digitization and automation also lay the foundation for an environmentally sustainable industry. With IoT and AI analysis, everything from design processes to energy consumption, maintenance and recycling can be optimized. It saves money and the environment and paves the way for a circular economy.

In 15 years, Swedish industry wants to be an international driving force for sustainability and green development, according to RISE, but already now the Swedish manufacturing industry has come a long way in the transition to sustainability and climate neutrality. With the digital infrastructure in place, there is a great opportunity for Sweden’s manufacturing industry to achieve the necessary sustainability goals.

3. Operational Excellence

Smart maintenance, smart maintenance, is becoming more and more accepted. This means that sensor data from connected equipment is transmitted via IoT and activates maintenance processes automatically. AI analysis shows how, when and what maintenance is needed. Such proactivity reduces the risk of production stoppage and increases the life of the machinery. The potential for savings is enormous – disruptions in production today cost more than SEK 100 billion per year for the Swedish manufacturing industry, according to Chalmers.

Experts and researchers believe that smart maintenance is the future to reduce downtime and increase collaboration between production and maintenance organizations.

4. Growth and flexibility

Flexibility is an increasingly important competitive factor. Industry’s customers are increasingly demanding special solutions, and during the pandemic, when demand, working methods and supply chains were fundamentally challenged, it was important to switch quickly.

The manufacturing industry’s adaptability is an important reason why Sweden’s economy did relatively well during the pandemic, according to Teknikföretagen. Continued investments are now being made in Industry 4.0 and transparency in the supply chain. In addition, the benefits of purchasing communication and IT as a service, to quickly meet new requirements and needs, have been highlighted.

5. Protection and security

A connected, high-tech manufacturing industry 4.0 needs adequate protection. IT solutions can contribute to a safer physical work environment, for example by measuring noise levels or warning of poor air quality.

In addition, protection against new cyber threats is required. According to Teknikföretagen, almost half of the member companies have been affected by cyber attacks in the past two years. Targeted hacker attacks can cause great damage – in the form of information loss, data theft or production loss.

The “human factor”, employees who click on malicious links and have weak passwords, is a reminder that all security work stands and falls with the understanding of how technical and physical security are connected.