Industry 4.0 and the manufacturing workforce

Australia’s manufacturing workers recognise the need to upskill to address the challenges and opportunities presented by Industry 4.0, according to a new report.

The ‘Transforming Australian Manufacturing: Preparing businesses and workplaces for Industry 4.0’ report, developed by PwC Australia, Swinburne University of Technology, Siemens and the Australian Manufacturing Workers’ Union (AMWU), identifies the ways in which manufacturing businesses must adapt and evolve to the changing industry. The first of its seven recommendations calls for the Commonwealth Government to facilitate the development and release of a manufacturing Industry 4.0 strategy.

“Australian manufacturing businesses urgently need a ‘call to action’ to understand why they must invest more in their workforces, research and technology to thrive in the next industrial revolution,” the report stated.

The fourth industrial revolution, Industry 4.0, encompasses end-to-end digitisation and data integration of the value chain. However, a survey of 91 people in the manufacturing industry revealed only 12% understand Industry 4.0 extremely well, while more than a third indicate they do not have a strong understanding of it.

“The consequences of the fourth industrial revolution are profound. Industry 4.0 is expected to add $21 trillion to global GDP by 2030 and there will be a significant net increase in jobs created. However, Australia needs to act quickly to capture its share of the potential and avoid being left behind,” said Jeff Connolly, Chairman and CEO of Siemens in Australia Pacific region.

Manufacturing workers responding to the report survey agreed traditional job roles are changing and that specialised training is needed to upskill employees. According to the report, there will be an increase in demand for intelligent data analytics, digital literacy and advanced cognitive skills. The majority of survey respondents (40%) believed upskilling should occur via short courses, while 34% favoured on-the-job training.

“There’s an urgent need for investment in cross-sector collaboration to respond to employee needs for development of essential skills required by the Industry 4.0 economy. It must link the manufacturing industry with the education sector to facilitate collaboration and seamless learner pathways across the entire continuum of education and training, from VET across higher education and research. This will help bridge the skills gap that continues to grow between the fast-paced and rapidly digitising manufacturing industry and the workforce that underpins it,” said Professor Aleksandar Subic, Deputy Vice-Chancellor (Research & Development) at Swinburne University of Technology.

Andrew Dettmer, National President at the AMWU, added: “There’s so much potential for Australian manufacturing, but we’re at a critical juncture for the sector’s success into the future. This report provides a great road map for all stakeholders to work together to ensure Australian manufacturing workers are getting the right support to reskill or upskill to meet the challenges and take advantage of the opportunities in the 4.0 environment.”

As well as developing a manufacturing Industry 4.0 strategy, the report suggested six other recommendations to help futureproof Australia’s manufacturing industry:

1. Develop a new online portal that provides consolidated and easy-to-access information on government incentives and programs for manufacturing businesses.
2. Establish hubs for Industry 4.0 commercial manufacturing activity focused on priority industry sectors.
3. Continue to remove barriers between Vocational Education and Training (VET) and Higher Education in Australia’s tertiary education system to facilitate collaboration opportunities and seamless learner pathways.
4. Establish a workforce transformation leadership program.
5. Create funding and accreditation models to support lifelong learning, reskilling and upskilling throughout the work lifecycle.
6. Enhance the integration of manufacturing business supply chains through strategic procurement.

Chris Matthews, PwC’s Victoria Education and Skills Leader, said: “Australia’s manufacturing sector employs 933,900 people and makes a significant contribution to our economy. Our report recommendations highlight that we need a combination of business, government and education and training providers working together to make sure the manufacturing sector in Australia gets the skills it needs to thrive into the future.”

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