Industry 4.0: the transformation of Australia's manufacturing workforce
Industry 4.0? What is it? And what does it mean for our Australian Workforce? We decided to do some of our own research to assist our talent who might be eager on entering (or currently working in) the manufacturing industry.
Industry 4.0 refers to the coming (and current?) digitalisation of manufacturing processes. The interconnection of devices and systems will become more automated using many Internet of Things (IoT) technologies. Cyber-Physical Production Systems (CCPS) will drive smart production lines to enable products, machines, networks, and systems to cooperate with each other over the entire manufacturing process, assigning human intervention in the production process to a “bit player”.
Does this mean there will be less jobs available for humans in the future? Let’s face it, the manufacturing industry in Australia has been in long term decline with major operations like car manufacturing seeing its titans such as Holden and Ford shut up their local shops. The Centre for Future Work at the Australia Institute outlined in its report “A Fair Share for Australian Manufacturing” (July 2020 - https://bit.ly/3lmO9f1), that the Australian Manufacturing sector has lost over 100,000 positions in the past decade, however, the sector is currently experiencing a shortage of workers. Why?
To be globally competitive our manufacturing industry is transitioning towards more specialised capabilities and disaggregating into advanced manufacturing processes. Employers are now seeking more highly trained and technology-capable manufacturing workers, leaving many previous manufacturing workers who lost their jobs during the long decline unable to easily transition into new roles due to their lack of adequate skills.
To assist Australians with the Industry 4.0 transition the Government established the Prime Minister’s Industry 4.0 Taskforce in 2016 to initiate Industry 4.0 Testlabs - specialist learning platforms and facilities - to help SMEs, students and the general workforce to embrace the transformation into a more advanced, innovative and high-value manufacturing sector. These test labs are a part of the Government’s Modern Manufacturing Strategy (https://bit.ly/3hyWhYW) which has identified the following National Manufacturing Priorities with competitive advantages to deliver significant growth opportunities:
Resources Technology & Critical Minerals Processing
Food & Beverage
Medical Products
Recycling & Clean Energy
Defence
Space / Aerospace
Identifying sectors is one thing, equipping our workforce to participate in these opportunities is another. As a nation, we need to upskill and transform. The Boston Consulting Group predicts Industry 4.0 technologies will make a significant impact on how our workforce will evolve over the next 10 to 15 years, with the new technology areas predicted to include:
Big-data driven quality control – algorithms based on historical data identify quality issues and reduce product failures
Robot-assisted production – Flexible, humanoid robots perform other operations such as assemble and packaging
Self-driving logistics vehicles - Fully automated transportation systems navigate intelligently within the factory
Production line simulation - Novel software enables assembly line simulation and optimisation
Smart supply network - Monitoring of an entire supply network allows for better supply decisions
Predictive maintenance - Remote monitoring of equipment permits repair prior to breakdown
Machines as a service - Manufacturers sell a service, including maintenance, rather than a machine
Self-organizing production - Automatically coordinated machines optimize their utilisation and output
Additive manufacturing of complex parts - 3-D printers create complex parts in one step, making assembly redundant
Augmented work, maintenance, and service - Fourth dimension facilitates operating guidance, remote assistance, and documentation
Some of these predictions are evident already, with examples like iron ore mining companies in Western Australia already operating fully automated trains without the need for human drivers. A report from the Australian Computer Society (ACS) and Faethm, Technology Impacts of the Australian Workforce, has also forecast that 33% of manufacturing jobs will be augmented by technological change by 2034, while simultaneously predicting that the introduction of automation technology could produce an additional 122,000 jobs in the manufacturing sector during the same period.
All these reports are singing from the same hymn sheet. Over the next 10 to 15 years Australia’s manufacturing industry (and all industries that integrate with manufacturing) will need to adjust. The workforce is destined for significant transformation to match the digital skills required to support Industry 4.0. Reports from the World Economic Forum (2016) already forecasted the following Industry 4.0 competencies:
Digital Skills
Industry 4.0 programming and software engineering
Data science
Data/big data analytics
Visualisation
IoT (Internet of Things)
IT architecture
Security
Project coordination skills
Product management
Multi-project management
Supply chain and support services
Logistics
Soft Skills
Creativity
Design
Innovation
Leadership
If you’re currently in the manufacturing industry or keen to enter this industry (for the long term), it’s best to take the above table with a grain of salt. It’s highly unlikely you’ve already retained all of these skills or will even have the time to master them all. We recommend you start with the soft skills and ask yourself the question; ‘does any of these soft skills or similar skills align with some of my natural talents?’. Then ask the people around you who really know you (family, friends, work colleagues, etc.) the same question. Then self-explore further: do you thrive when needing to ‘design’ a presentation, a workflow or a product? Or are you more naturally creative? Do you have an ability to break existing configurations in favour of more effective or appealing ones? Don’t waste your time trying to ‘learn’ a new soft skill when you might already have the key learning ingredients which could underpin another skill. Try to align these forecasted Industry 4.0 competencies with your natural talents to accelerate your learning trajectory. If you need help in defining your natural talents, check out Gallup CliftonStrengths (https://store.gallup.com/c/en-au/assessments). As a professional talent agency, we’ve partnered with Gallup and use this assessment frequently to help our people to develop, grow and thrive.
The next step is to research relevant courses and qualifications that align best with your career aspirations and those predicted Industry 4.0 competencies. The Diploma of Applied Technologies is well recognised in the broader manufacturing community, offering students a mix of technical engineering and IT skills, from cloud computing, Internet of Things, advanced manufacturing, to robotics, automation, and Cyber Physical Systems. Once you’ve completed this diploma, you’ll have the skills and confidence to use digitalisation techniques to merge traditional and emerging technologies, from product design through to manufacture. This course is delivered by specific universities, TAFEs and privately owned Registered Training Organisations throughout Australia. You can find out more here: https://training.gov.au/training/details/22460VIC. Also, the Apprentice & Training Centre of the AI Group is facilitating a higher apprenticeship program which offers flexible delivery for students to learn the latest Industry 4.0 digital technologies on the job (https://www.aigroupapprentices.com.au/higher-apprenticeship-program/)
While this global revolution continues to evolve and shape our local economy there is no doubt we need to be on our toes when managing our own careers. We’re keen to hear from anyone who has something to say about Industry 4.0 and how it has (or is likely to) influence their future career decision making. Feel free to contact me onbenarmstrong@greenlitgroup.com.