The challenge that small and medium-sized businesses experience in shifting to new and next-generation manufacturing processes is the harsh reality of today’s competitive corporate environment. Restructuring takes time and effort that could be otherwise spent on developing or maintaining business operations.

To face this challenge, these companies heavily rely on digitalization, automation, and cloud solutions which are the fundamental and possibly most significant notions to apply.  Many people are starting to realize that industry 4.0 will not only boost their position but will also revolutionize how firms operate in the near future.

The global pandemic we all lived in the past couple of years is ending and most firms are starting to return to their routine and “old” levels of productivity. Although, some companies are registering no difference whatsoever compared to last year, and it’s not due to a lack of motivation or refusal to come back to the office, but because during the more stagnated periods of confinement they saw an opportunity to automate and digitalize their processes, effectively eliminating remote work constrains and streamlining tasks which freed resources to focus on other areas.

Industry 4.0 is not a plan to ensure the survival of European manufacturing companies in the face of low-wage competition from other developing nations, as many people believe. Instead, it’s a shift to next-generation manufacturing technologies that will accelerate globalization, particularly for small and medium-sized businesses. I4.0 will create digital networks and ecosystems that in many cases will span the globe but will still retain distinct regional footprints, and both developed and developing markets stand to gain dramatically. This concept enables, for example, a machine in Germany to freely interact with machines in Asia and other parts of the world. This is especially critical for small and medium-sized businesses that rely on others to develop efficient ecosystems. Through selective partnerships, individuals in B2C are moving closer to B2B manufacturing as they can now have direct control over logistics and equipment overseas without the costly investment necessary in the past.

As a result, suppliers are undergoing restructuring with the goal of growing digital technologies in order to help clients become even more productive and sustainable. This growing movement is set to increase in the coming years and will allow more firms to have a bigger reach in the early stages of development as tailored production is now easier and cheaper than ever before.