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In the last few decades, the world has seen a rapid transformation in how we live, work, and communicate, primarily due to technological advancements. This shift is commonly referred to as Industry 4.0, a term that represents the fourth industrial revolution. With Industry 4.0, we are witnessing the integration of new technologies such as artificial intelligence, robotics, the Internet of Things, and others into the manufacturing industry, making it smarter, more efficient, and more connected than ever.

As Industry 4.0 continues to reshape the manufacturing industry, it is also reshaping the job market, creating a need for a new set of skills and competencies. This means that educators and institutions are responsible for preparing students for the demands of the future job market and ensuring they have the skills necessary to succeed in the Industry 4.0 era. In this article, we will explore the meaning of Industry 4.0, the skills required for it, and strategies for preparing students for this revolution.

What is Industry 4.0, and why prepare for it?

Since its early days, the manufacturing industry has undergone multiple transformations thanks to technological advancements brought by the first, second, third, and now fourth industrial revolution, also known as Industry 4.0. From water and steam power generation to electricity and assembly lines to computers and automation, manufacturers worldwide are now adopting advanced technologies to streamline processes, increase efficiency, and reduce costs.

While the technologies and applications of Industry 4.0 vary from manufacturer to manufacturer, here are the most common ones the fourth tech era operates through:

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1. Smart sensors and Internet of Things (IoT) devices that collect and analyze data in real-time to improve production processes, reduce waste, and prevent equipment breakdowns.
2. Robotics and automation systems that can perform repetitive tasks faster, with higher precision and quality, and with less risk of errors and accidents.
3. Artificial Intelligence (AI) and Machine Learning (ML) algorithms that can analyze large data sets and identify patterns, trends, and insights that can be used to optimize processes, reduce costs, and increase efficiency.
4. Additive manufacturing, also known as 3D printing, which allows manufacturers to produce complex parts and products with minimal waste and lead time, and greater customization and flexibility.
5. 3D scanning technologies that allow manufacturers to create accurate and detailed digital replicas of physical objects and environments for quality control, inspection, and reverse engineering purposes.
6. Augmented and Virtual Reality (AR/VR) technologies that can improve training and maintenance processes by providing immersive and interactive experiences that simulate real-life scenarios and enhance learning and retention.
7. Cloud computing and Big Data analytics that enable manufacturers to store, process, and analyze large amounts of data from various sources, including sensors, machines, and humans, and use it to improve decision-making and innovation.
8. Cybersecurity solutions that protect sensitive data, intellectual property, and critical infrastructure from cyber threats and attacks.

Despite the optimization and, in some cases, reduction of human resources due to the introduction of these technologies, a recent study by Deloitte and the Manufacturing Institute states that Industry 4.0 technologies are likely to create more jobs than they destroy. Even before the pandemic, one of the industry's significant challenges was a lack of skilled labor. According to the study, the manufacturing skills gap could result in 2.1 million unfilled jobs in in the U.S. alone and cost up to $1 trillion.

To address the growing skill gap, it's crucial to provide relevant education and training not only to the existing workforce but also to students still choosing their path and considering manufacturing as one of their options. As Industry 4.0 technologies become more pervasive and influential, they will require a new set of skills and knowledge from future manufacturing workers to succeed in the job market. Some of the manufacturing jobs that will be common in don't exist yet, while the current ones may no longer be in place soon.

That's why students must prepare for the new, constantly changing reality of Industry 4.0 to find meaningful and rewarding careers.

Skills required for Industry 4.0

As Industry 4.0 continues to evolve and reshape the manufacturing industry, so do the new jobs and career pathways, creating a demand for new skills and competencies. Robots and computers already perform some of the routine, mundane, and repetitive tasks, allowing workers to focus more on strategic decision-making, problem-solving, and communication activities. On the other hand, educational systems are having a hard time keeping up with all the technological changes happening in the industry. As a result, there is still a massive gap between the demand for skilled workers and what students are learning.

To succeed in the Industry 4.0 era, students must acquire skills that combine technical, cognitive, and socio-emotional abilities. These skills can vary depending on the industry, job role, and level of responsibility, but some of the must-haves are:

1. Digital literacy: using digital tools and platforms to communicate, collaborate, and solve problems. Examples include using social media, , instant messaging, video conferencing, cloud storage, and project management software.
2. Data analysis: the ability to collect, process, interpret, and visualize data from various sources and formats to gain insights, make decisions, and improve performance. Examples include using Excel, Tableau, Python, or R to analyze sales data, customer feedback, or production metrics.
3. Automation and robotics: the ability to design, program, operate, and maintain automated and robotic systems that can perform repetitive, hazardous, or complex tasks. Examples include using Arduino, Raspberry Pi, or PLCs to control a robotic arm, conveyor belt, 3D printer, or 3D scanner.
4. Artificial intelligence and machine learning: the ability to understand, apply, and develop algorithms and models to learn from data, make predictions, and optimize processes. Examples include using neural networks, decision trees, or reinforcement learning to create chatbots, predictive maintenance systems, or supply chain optimization tools.
5. Creativity and innovation: the ability to generate, evaluate, and implement new ideas, products, or processes to create value for customers, stakeholders, and society. Examples include designing a new product line, developing a marketing campaign, or improving a production process to reduce waste or energy consumption.
6. Critical thinking and problem-solving: the ability to analyze, evaluate, and solve complex and ambiguous problems by applying logic, evidence, and creativity. Examples include troubleshooting a machine malfunction, resolving a customer complaint, or identifying the root cause of a quality issue.
7. Communication and collaboration: the ability to express ideas, listen actively, and work effectively with others from diverse backgrounds, cultures, and perspectives. Examples include giving a presentation, participating in a team project, or resolving a conflict with a colleague.

Industry 4.0 opens up many challenging and exciting opportunities for students. It requires a deep technological skillset and soft skills, such as creativity, problem-solving, communication, and collaboration, that are essential for innovation and competitiveness. Students who can develop and apply these skills in the context of Industry 4.0 are likely to be in high demand by employers and have more career advancement and personal growth opportunities.

How to prepare students for Industry 4.0

Preparing students for Industry 4.0 requires a joint and proactive approach from educators and institutions. Here are some strategies for effectively preparing students for the demands of the future manufacturing job market:

Integrate Industry 4.0 technologies in the classroom

To keep students up-to-date and give them hands-on experience with all the recent advanced technologies used in manufacturing, educators can incorporate Industry 4.0 technologies directly into the classroom.

This could include using virtual reality simulations to teach complex concepts or incorporating robotics and automation into the curriculum. It can also involve setting up in-house maker spaces where students can learn to operate various hardware and software tools, such as 3D printers, 3D scanners, laser cutters, CNC machines, CAD software, and 3D sculpting software. Such places can expose students to the world of high-tech technologies and give them a perspective on what their day-to-day at work can look like. Having experience operating a 3D scanner or using CAD software can enrich their learning experience and give them an edge over others when looking for that dream job.

One example of such an initiative is the Design and Innovation Makerspace in the College of Engineering at the University of Wisconsin'Madison. Launched in after the overhaul of an old engineering library, the Makerspace offers their students access to a broad range of very impressive high-tech equipment, including 3D printers, 3D scanners, CNC routers, laser cutters, drones, VR/AR headsets, and more. Largely student-run, Makerspace strives to empower students by creating a community immersed in emerging technologies and focused on creating innovative products. For instance, one of the most popular and versatile pieces of equipment used by students from various faculties is Creaform Academia's portable 3D scanners. With them, students can easily digitize any physical object, whether an auto part or a historical artifact, and bring it into the digital world.

If setting up such a space is out of your budget, it's still possible to expose students to all the latest tools by partnering with a local maker space or a science center. Such places can provide access to high-tech equipment and organize full training for teachers, so they can later introduce such classes into their curricula.

Traditional shop classes can no longer sustain or prepare students for the growing industry demands for highly skilled workers, which is why integrating Industry 4.0 technologies, such as additive manufacturing, robotics, and coding, into the schools' programs is necessary.

Collaborate with industry partners and professionals

Partnering with local businesses and industry leaders can provide students with valuable opportunities to get real-world experience, learn about the latest trends and technologies, and gain insights into the skills and competencies required for Industry 4.0 jobs. To achieve this, educators can collaborate with industry partners and professionals in multiple ways.

For instance, they can invite industry experts as guest lecturers to teach hands-on classes or workshops on Industry 4.0-related subjects, where students can learn some practical skills, or they can share their career journey and answer questions that students might have.

Another way is to organize regular tours of the factories and production facilities, where students can observe some of the manufacturing processes and what the daily life of a manufacturing worker can look like. Finally, educators can provide students with opportunities to participate in internships or apprenticeships with industry partners to get real-life experience that will help them in their future career paths.

Regardless of the format, working with industry leaders can give schools the latest industry insights and knowledge they won't get anywhere else.

Provide mentorship, coaching, and career guidance

Navigating the complex and dynamic Industry 4.0 job market can be overwhelming, especially if the two factors above haven't yet been introduced into the school system. Despite all the technological breakthroughs and innovations introduced in recent years, the manufacturing industry is still publicly perceived as dangerous, dirty, and having low job security.

To change that perception and create a pipeline of qualified applicants, educators must provide mentorship, coaching, and career guidance for students who aspire to pursue a career in Industry 4.0. For example, schools can create mentoring programs that connect students with experienced professionals who can share their knowledge, skills, and networks and provide feedback, advice, and support. Schools can also offer career counseling and job placement services that help students identify their strengths, interests, and goals and match them with relevant job opportunities and employers.

They can also highlight the opportunities, rewards, and benefits of pursuing a career in this field by showing students the salary upside of working in manufacturing. Give them real-world examples of what they can expect to make if they have certain skills and certifications. One way to do so is to create credits that can be used toward certifications when students graduate. Let students accumulate credits or work toward certifications they can take when they graduate. With these in hand, they can either go on to further study or get a job.

Conclusion

As we see, Industry 4.0 keeps transforming the manufacturing industry, creating new opportunities and challenges for students preparing to enter the workforce. To ensure that the next generation of workers is ready for these opportunities and challenges, we must prepare students for Industry 4.0 jobs, update the curriculum to focus on emerging technologies and industry trends, and establish partnerships between educational institutions and industry leaders. By working together, we can bridge the skills gap and ensure that the manufacturing industry has access to the talent it needs to continue to grow and innovate. Article written by Creaform
Published 05/15/ Need specific information? Related Content

Augmented reality, machine automation, and more: the 21st-century industrial revolution is digital. Industry 4.0, the Fourth Industrial Revolution, and 4IR all refer to the current era of connectivity, advanced analytics, automation, and advanced-manufacturing technology that has been transforming global business for years. This wave of change in the manufacturing sector began in the mid-s and holds significant potential for operations and the future of production.

What is the Fourth Industrial Revolution?

Steam propelled the original Industrial Revolution; electricity powered the second; preliminary automation and machinery engineered the third; and cyberphysical systems'or intelligent computers'are shaping the Fourth Industrial Revolution.

Before , the Google search term 'Industry 4.0' was practically nonexistent, but by , 68 percent of respondents to a McKinsey global survey regarded Industry 4.0 as a top strategic priority. Seventy percent said their companies were already piloting or deploying new technology.

4IR builds on the inventions of the Third Industrial Revolution'or digital revolution'which unfolded from the s and to the early s and brought us computers, other kinds of electronics, the Internet, and much more. Industry 4.0 brings these inventions beyond the previous realm of possibility with four foundational types of disruptive technologies (examples below) that can be applied all along the value chain:

1. connectivity, data, and computational power: cloud technology, the Internet, blockchain, sensors
2. analytics and intelligence: advanced analytics, machine learning, artificial intelligence 
3. human'machine interaction: virtual reality (VR) and augmented reality (AR), robotics and automation, autonomous guided vehicles
4. advanced engineering: additive manufacturing (such as, 3-D printing), renewable energy, nanoparticles

Technology, however, is only half of the Industry 4.0 equation. To thrive in the Fourth Industrial Revolution, companies must ensure that their workers are properly equipped through upskilling and reskilling and then hire new people when necessary. Upskilling means that employees learn new skills to help them in their current positions as the skills they need evolve. Reskilling is the real challenge: workers are retrained with new skills that will enable them to fill different positions within their companies.

This is increasingly vital as disruptive technologies transform job requirements, but the outlook on reskilling differs geographically. In Europe, 94 percent of surveyed executives believe that the balance between hiring and reskilling should be equal or tip toward reskilling, compared with only 62 percent of US respondents.

The end-to-end skill transformation has three phases:

1. scout'analyze the skills required to achieve a company's ambitions
2. shape'identify talent gaps that must be addressed and design the program infrastructure to address them
3. shift'develop and implement content and delivery mechanisms to train workers at scale

A conversation with Francisco Betti (head of the Platform for Shaping the Future of Advanced Manufacturing and Production, launched by the World Economic Forum in ) and the CEOs of Flex, Protolabs, and Western Digital offers perspective and real-world insights on building workforce capabilities and shifting mindsets for successful digital transformations in manufacturing. The benefits can go far beyond business outcomes. In the words of Western Digital CEO David Goeckeler, 'It's not just about our company being better and us being prepared for the future; it's about all of our employees being ready for that future'keeping them at the center, having them highly engaged, all of the reskilling, getting them excited about what the future holds.'

Learn more about our Operations, Advanced Electronics, Financial Services, Technology, Media & Telecommunications, and Sustainability practices.

What is The Global Lighthouse Network?

The World Economic Forum, in collaboration with McKinsey, launched the Global Lighthouse Network (GLN) in to identify organizations and technologies in the vanguard of the Fourth Industrial Revolution. A lighthouse (in this context) is a manufacturing site that has successfully implemented 4IR technologies at scale, with a significant operational impact.

Lighthouses aim to capture more than 80 percent of the identified value of chosen use cases'meaning those involving 4IR technologies. Ultimately, these sites are intended to serve as an Industry 4.0 benchmark for the transformation of other sites. This may sound similar to the concept of a digital factory'because it is. Digital factories serve as 'construction sites' for companies to implement 4IR technologies and test-run new operations before applying the advances at scale. The difference is that the GLN specifically identifies lighthouses as successful 4IR trailblazers.

Today, 103 lighthouses'such as Tata Steel's plant in Kalinganagar, India, and select Henkel Laundry & Home Care production sites'have been identified around the world.

Lighthouses can be built practically anywhere, by small or big companies, in developing or developed economies, and at greenfield or brownfield locations.

Insights from lighthouses that are successfully using 4IR technologies today offer something of a playbook for organizations shaping the future of manufacturing. Digital transformation at scale isn't easy, but responsible production'combining productivity, sustainability, and active workforce engagement'is within reach.

To get there, six core enablers can boost the odds of success for your company's 4IR transformation:

• An agile approach that incorporates quick iterations, fast fails, and continuous learning, with teams transforming bundled use cases in waves to drive innovation and ongoing refinements.
• Agile digital studios can help people collaborate effectively, providing designated space where team members from different functions are in proximity for co-creation.
• The IIoT stack allows for seamless integration of IIoT infrastructure (both legacy and new) to build a stable, flexible tech backbone. Costs can by limited by leveraging existing systems with efficient investment in a new technology stack.
• An IIoT academy uses adult-learning best practices to upskill the workforce, offering customized learning programs based on the unique individual needs.
• Tech ecosystems partner with vendors, suppliers, customers, and related industries to source the latest capabilities, offering access to extensive data sets and creating opportunities for innovating together.
• Transformation offices can form a governance hub to support the launch and scale-up of a lighthouse, making progress and priorities transparent, ensuring value continues to be captured, and accelerating change.

Of these, two are particularly important: an agile approach and a transformation office.

Any company can begin its Industry 4.0 journey in a small way at one site and then scale up quickly. Otherwise, it could be doomed to 'pilot purgatory': companies try out (or pilot) new technologies but fail to apply them at scale, stalling the 4IR transition. As of late , about 74 percent of surveyed companies reported being in pilot purgatory.

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What are the advantages of the Fourth Industrial Revolution?

The Fourth Industrial Revolution could make products and services more easily accessible and transmissible for businesses, consumers, and stakeholders all along the value chain. Preliminary data indicate that successfully scaling 4IR technology makes supply chains more efficient and working hours more productive, reduces factory waste, and has countless other benefits for employees, stakeholders, and consumers.

Implementing Industry 4.0 technology is also especially advantageous amid the challenges of the pandemic. In fact, COVID-19 has accelerated the 4IR transition because physical distancing and shifting consumer demands forced companies to embrace digitization and contactless operations. Six months into the pandemic, 94 percent of the respondents to a McKinsey survey said that Industry 4.0 had helped keep the operations of their companies running, and 56 percent considered these technologies critical to the crisis response.

Before the pandemic, the top motivators for companies to digitize varied by industry. But in , three drivers were common across all sectors and geographies: agility, flexibility, and manufacturing efficiency. Companies that had already scaled up Industry 4.0 technologies before COVID-19 were better positioned to handle the challenges that arose.

• One consumer-packaged-goods company in Asia built a digital twin of its supply chain to simulate different scenarios. During the pandemic, the company used this simulator to prepare for sudden shutdowns or disruptions in the supply of materials.
• When one coffee machine plant in Treviso, Italy, transformed itself from an uncompetitive site into a manufacturing lighthouse, labor productivity rose by 33 percent and lead times fell by 82 percent.
• Of the surveyed companies that had not begun implementing Industry 4.0 technologies, 56 percent felt constrained in their responses to the pandemic's challenges as a result.

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Tell me more about the Fourth Industrial Revolution, workforce engagement, and the future of manufacturing?

Workforce engagement is vital to a successful 4IR transformation. Indeed, even a company with the best tools, newest technology, and immense resources is unlikely to scale up a 4IR transformation successfully if the workforce is not engaged. A concerted focus on people has also helped organizations build resilience by helping workers develop new skills, so that the business can respond more flexibly to change. In practice, this could entail rethinking training and skill development pathways, and make structural changes for the longer term.

Here are five areas where manufacturers are already promoting high workforce engagement:

1. learning and development (for example, with extended competencies and skills, via the combination of hard, soft and digital skills, and apprenticeship)
2. empowerment and ownership (for instance, through outcome and results-oriented steering, or by encouraging workers to make their own decisions)
3. collaborations and connections (say, by working with cross-functional and multiskilled teams, or developing extended networks in the organization and beyond)
4. impact and recognition (for example, by creating accountability for achievements or by celebrating successes)
5. the voice of the worker (for instance, by using digital channels and data to gather input from workers' voices, or by seeking to understand their hidden needs)

How about Industry 4.0 digitization and opportunities for sustainability?

The Fourth Industrial Revolution creates opportunities for sustainability and, more important, these advances are inherently more sustainable than current business practices. Some people think productive operations are hard to square with environmental responsibility, but sustainable lighthouses challenge that notion: 4IR transformations facilitate a viable kind of eco-efficiency that intrinsically meshes sustainability with competitive excellence.

Eco-efficiency includes three dimensions of digital technology:

1. enabling data-informed actions in production and the broader end-to-end value chain
2. realizing improvements across performance indicators, such as cost, agility, convenience, and quality
3. driving sustainability gains by limiting consumption, resource waste, and emissions

Consider a few examples of how Industry 4.0 technologies that maximize efficiency also minimize waste:

• One Singapore lighthouse decreased its scrap output from building semiconductors by 22 percent in a smart factory enabled by the industrial Internet of Things, or IIoT. (See a related Explainer, 'What is the Internet of Things?,' for more.)
• Schneider Electric's smart factory in Lexington, Kentucky, combined IoT connectivity and predictive analytics to lower energy use by 26 percent, CO2 emissions by 30 percent, and water use by 20 percent.
• Sixty percent of the 103 lighthouses identified by the Global Lighthouse Network include sustainability among their top five Fourth Industrial Revolution use cases.

And more broadly, lighthouses demonstrate how 4IR technologies can promote responsible growth in the long term. How? Through action in three broad areas:

1. Environmental: Taking care of our planet and the surrounding environment. Areas of focus for lighthouses in this category include energy, water, waste, greenhouse-gas emissions, and the circular economy.
2. Social: Building a stronger workforce and community. For lighthouses, focus areas might include human-capital development, the voice of the worker, health and safety, and labor standards.
3. Governance: Establishing a set of practice, controls, and procedures to govern, make decisions, and meet the needs of stakeholders. This can encompass focus areas such as ownership, accountability, business ethics, and governance structure.

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What is Industry 4.0's impact on the economy?

Industry 4.0 will continue to have a significant impact on the economy. The greatest economic boons will go to the fastest-acting companies.

According to a McKinsey Global Institute analysis, Industry 4.0 front-runners'facilities well on their way to adopting AI and other advanced technologies by 'can expect a 122 percent positive cash flow change. Follower companies can expect just 10 percent, while companies that wholly fail to adopt AI could see a 23 percent downturn.

Industry 4.0 is also projected to transform the skill sets of the workforce by shifting the standards for sought-after talent. Over the coming decade, we will see these changes as more and more companies embrace robotics:

• Demand for physical and manual skills in repeatable tasks, like those on assembly lines, will decline by nearly 30 percent.
• Demand for basic literacy and numeracy skills will decline by almost 20 percent.
• Demand for technological skills such as coding will rise by more than 50 percent.
• Demand for complex cognitive skills will rise by about 33 percent.
• Demand for high-level social and emotional skills will rise by more than 30 percent.

In , the value creation potential of Industry 4.0 for manufacturers and suppliers is expected to reach $3.7 trillion.

What industries are being transformed by Industry 4.0?

Every single industry will be transformed during the Fourth Industrial Revolution, but some to a greater degree than others. The nature of the Industry 4.0 transition will differ by the specific types of technology being adopted, as well as the existing infrastructure and skills of organizations. The transformation can be broken down into three archetypes of adoption pathways:

1. Accelerated. Regardless of a company's existing tech infrastructure (whether advanced or nonexistent) certain inexpensive digital, augmented-reality, and automation solutions are rapidly adoptable without transition headaches.
2. Differential. The existing tech infrastructure will affect how quickly some technologies are adopted. Companies with less foundational information technology (IT), operations technology, and data infrastructure will need time to transition. More advanced companies are better equipped for quick implementation.
3. Slowed or deferred. Even at companies with an advanced tech infrastructure, the adoption of the most cutting-edge innovations (such as full end-to-end automation) will be slow because of the high level of required capital expenditure and the unclear long-term payback.

Operationally intensive sectors, such as manufacturing, transportation, and retailing, will experience the greatest change because many companies in these sectors employ large numbers of people for tasks particularly suited for automation or digitization. Operations-intensive sectors have 1.3 times more automation potential than others do.

In these operations-intensive sectors, McKinsey analysis indicates that up to 58 percent of work activities could be automated with current technology. Education, by contrast, is projected to undergo the least degree of change during Industry 4.0; only 25 percent of the sector's work is automatable.

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For more in-depth exploration of these topics, see McKinsey's collection of insights on operations. Learn more about manufacturing and supply chain consulting, and check out manufacturing-related job opportunities if you're interested in working at McKinsey.

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