Italy towards the turning point 4.0.
The market of Industry 4.0 projects in Italy in 2017 – between IT solutions, enabling technology components on traditional production assets and related services – reaches a value between 2.3 and 2.4 billion euro, of which 84% realized towards Italian companies and the rest as exports, showing an increase of 30% compared to last year which: read in a multiannual perspective, ratifies the almost doubling of the market in just three years. The 4.0 projects include an induction of around 400 million euros in “traditional” digital innovation projects.
These are some of the results of the research of the Industry 4.0 Observatory of the School of Management of the Milan Polytechnic. The Industrial IoT (referring to the only components to connect the machinery to the network) confirms itself as the most widespread 4.0 technology, with a value of around 1.4 billion euros (60% of the market, + 30% on the previous year).
Following Industrial Analytics with 410 million euros (20% of the market, + 25%) and Cloud Manufacturing with 200 million euros (10% of the market, + 35%), but among the first for growth.
8% of the market is represented by Advanced Automation solutions (145 million euros, + 20%), while the Advanced Human Machine Interface, even with a low total value (around 30 million euros), is the first for growth compared to last year (+ 50%).
Among the IT solutions, enabling technological components and related services, the project market has a value of 2,400 million euros.
90% covers industrial IoT, Analytics and Cloud Manufacturing.
The national plan is bearing fruit. Now focus on SMEs.
The photograph taken by the Industry 4.0 Observatory of the School of Management of the Milan Polytechnic
The level of knowledge increases on Industry 4.0: only 2.5% of the companies say they do not know the topic (two years ago it was almost 40%); 15% are in the exploratory phase, while 55% say they have already implemented 4.0 solutions: numbers that bear witness to the ferment of the Italian scenario of Industry 4.0, in which a good level of basic technology “literacy” (on average 90% of companies know the individual Smart Technologies).
The impact of the National Industry 4.0 Plan appears very positive: on a sample of 236 companies, 92% know the measures (84% a year ago), half say they have already used hyper and super-amortization for the renewal of their assets and one in four plans to do so shortly.
The distribution of investments that exploit these forms of incentive is varied, with 25% of the companies investing more than three million euros and 20% that has appropriated less than 200 thousand euros. With reference to the tax credit foreseen for 4.0 training, six out of ten companies declare that they will want to take advantage of it.
“Over the past two years, the market for industrial digitalisation has almost doubled, driven by a modern industrial policy and reinforced by incentives, while the awareness of Industry 4.0 and the knowledge of new technologies are now widespread in almost all the productive realities of the country – explain Alessandro Perego, Andrea Sianesi and Marco Taisch, Scientific Managers of the Industry 4.0 Observatory – Now it is necessary that every company align this digital maturity to its business objectives, starting from the fact that new technologies are the foundation of Industry 4.0 and not its point of arrival, rethinking processes and organizational models in the difficult balance between operational management, continuous improvement and radical innovation “.
“The National Plan has played an excellent role as an accelerator of the transformation 4.0 so far, both by spreading their knowledge and by favouring private investments in fiscal terms,” Perego, Sianesi and Taisch continue, “but it is likely that their stimulus can not continue. indefinitely: the next big challenge to consolidate and keep growing in the market will be to identify the right path to involve SMEs, which represent the true heart of Italian manufacturing, in the digital transformation. ”
After the standstill occurred in April, industrial production returned to growth in May, marking + 0,7% compared to the previous month. This was noted by ISTAT, pointing out that the index adjusted for calendar effects increased by 2,1% compared to May 2017 and that all the main groupings of industries recorded a positive result, with the capital goods that continue to stimulate the growth both on an annual basis and compared to April.
On average for the first five months, production grew by 2,8% on an annual basis. On average in the March-May quarter, Italian industrial production decreased by 0,4% compared to the previous quarter. In May, the monthly seasonally adjusted index shows cyclical growth in all sectors, with positive changes for energy (+ 1,2%), intermediate goods (+ 0,9%), capital goods (+0,4%) and consumer goods (+ 0,2%).
The correct indices for the calendar effects recorded positive trend variations in all groupings in May 2018: the increase in capital goods (+ 3,1%), energy (+ 2,2%) and consumer goods (+ 2,1%). The manufacturing sectors with the highest annual growth are: manufacture of electrical and non-electric household appliances (+ 7,3%), production of basic pharmaceutical products (+ 6,6%) and machinery and equipment (+5,1%).
Data confirm the objectives set by the Industry 4.0 Plan which is really working as proved by the results gathered in the last few months.
The technology industry continues to represent an important economic accelerator for Italy. The proof of this statement is the processing, related to 2017, by Anie, a federation representing electrical engineering and electronic companies within Confindustria. DATA show an overall increase in revenues of 3, 8%, to 78 billion euro for electrotechnics and electronics, with an increase of 7, 8% for the first (58 billion) and 2, 7% for the second (20 billion) compared to 2016.
The uncertainty that characterized the early years seems to have been set aside, thanks also to the restart of investments, supported by the National plan and software for industry 4.0. A positive feeling that also extends to the export field: the annual increase in the Anie sectors is equal to 5,2% – about 30 million euro – with a +4,7% for electrical engineering and a +7,4 % for electronics, thanks to the growth in demand both from the European Union (+4,7%) and from abroad (+5,4%).
In 2017, total revenues increased by 3, 8% to 78 billion euro. The year 2018 confirms the positive trend, both in terms of turnover and orders
On the other hand, Anie technologies are directed towards the trends in the end markets which are variable: those for the industrial market confirm in 2017 a driving role and a decidedly dynamic trend, with an increase of 9, 1% in the previous year. Good news also from the construction sector, after a decade of strong weakness in conjunction with the global economic crisis: in this case the growth is 3, 9%, in line with the restart of construction investments. The energy market also sets aside the slowdown of 2016, both for traditional and renewable sources: the total turnover increases by 2, 9%.
The data processed by Anie (Confindustria) highlight the recovery of the strategic sector
On the contrary, negative news comes from Infrastructures and Transports, which show a decrease of 5, 8% linked also to a temporal misalignment in the orders accounting. The latter actually continues to grow and the turnover linked to the export of the sector rises by 9, 4%. Data from Anie Observatory, conducted on a sample of 130 representative companies, shows a positive point of view for the first half of 2018: 58% of companies show a growth in revenues compared to the first 6 months of 2017, while the increase in orders are about 63% of the sample.
ON THE FOREIGN FRONT there is a 46% increase in turnover. Encouraging news that should cover the second part of the year. Finally, employment: 86% of the organizations involved report stability.
Bresciaoggi July 15th, 2018
Launch of the “4.0 Digital vouchers competition – A Measure” promoted by Unioncamere Lombardia in collaboration with the Lombard Chambers of Commerce: this will allow micro, small and medium-sized enterprises to obtain a contribution of up to 15.000 euro, in the form of consultancy, training and technological investments vouchers.
The OBJECTIVE is to promote the use of services and solutions in the implementation of the strategy defined in the National Business 4.0 Plan through the development of projects that involve collaboration between micro, SMEs and highly qualified subjects in the 4.0 field, in production chain aggregation logic and sharing of skills.
Overall, the allocation sums 1.6 million euro. The benefits will be granted to those presenting a shared project, in aggregated form (from 3 to 20 companies). The initiative can be registered by a proposer provided for by the competition or by the lead company. The granted benefits will cover 70% of the company’s investment based on a minimum effort of 5.000 euro. Applications between16th – 29th of October, only on Unioncamere Lombardia website.
The business grows thanks to software for industry 4.0. This was revealed during the last congress of Brescia organized by industry associations. “The valves and fittings sector is going through a positive period, and the value of investments in 2018 is destined to increase, stimulated by the 4.0 plan”. These are the words of Ugo Pettinaroli, chairman of AVR (Associazione valvole e rubinetti) and Ceir (Center for Exhibition Industry Research).
The two associations have promoted the “Ceir Congress 2018” held in Hotel Saoy in Gardone Riviera, with the participation of some important Brescian companies such as Carlo Gnutti, Almag and Rubinetterie Bresciane, and 12 represented nations of the world. These organizations have also developed thanks to the inclusion of software for industry 4.0 in the production chain. Among the many analyzed topics, we mention: the innovations concerning the sector, the revision of the framework directive on drinking water and the management of investments at national and global level.
The 2017 full year forecast on valves and fittings recorded a production equal to € 7,285 billion which is equivalent to an increase of 4, 1% compared to 2016 (€ 6,995 billion) and foresees a further increase of 1, 8% in 2018. Exports, on the other hand, met a slight decrease from € 4.46 billion to € 4.44 billion (-0, 4% on an annual basis), however, a net increase is imminent during this year (+ 3, 3%).
Employees on the Italian territory have grown from 27,180 to 27,285 (+ 0, 4%), as well as investments, despite the general uncertainty: from € 88, 5 million to € 98, 5 million (+11, 3%), with the possibility of another improvement of € 112 million in 2018.
Chairman Pettinaroli goes on saying that “Despite the climate of general uncertainty, these are positive numbers that give us confidence for the future; mainly for the industrial, sanitary and heating fittings sector, where Italy occupies a strong position in all three sectors: particularly in the Brescian and Novara areas”. Another topic of interest is that regarding exports, where Saudi Arabia occupies the first place with € 152,5 million in 2017 which marks a substantial increase compared to the previous year (+24,7%).
The United States, occupies the third place with € 138, 8 million (-32, 5%), outclassed also by Germany with € 146, 8 million, another country that suffered a heavy drop (-27, 1 %). However, the EU remains the most important outlet area with 36%, followed by Asia with a difference of only one percentage point. The difference with North America and the non-EU European countries, however, stands at 9%. Nowadays, a company can only grow if it takes a path towards the 4th industrial era, relying on the innovative software for industry 4.0.
Source: Bresciaoggi, 12/06/18
“There are no suitable profiles to support 4.0 exports and investments all over the Northern area. Companies are competing for the new graduates”.
This is just one of the headlines that have been discussed in recent weeks. While there are those who point the finger at the fourth industrial revolution, on the other hand there are also new figures included in the world field thanks to the National Plan. Industry 4.0, which led GP Progetti to develop new software to improve industrial production, is the new frontier of the world industry, a scenario no longer so far that is taking shape day by day. Some experts have elaborated an interesting research that identifies the new professions brought forward by this industrial revolution.
What is Industry 4.0?
Born from a German government project and presented for the first time in 2011 during a fair in Hanover, the term refers to the progressive process of automation of industrial machines, with consequent significant advantages regarding production optimization and improvement of the human labor conditions. After the fulfillment of the project in Germany in 2013, today the 4.0 industry is no longer an impossible innovation. Today, in fact, the Italian government has made available an incentive plan for the companies willing to invest in this project.
New job opportunities
Industry 4.0 has been seen by many as a threat to labor. The cutting-edge machines and software for improving the industrial production would gradually replace the people currently working at the factory counters. A distant possibility, but on the other hand a growing demand for highly specialized and qualified figures is progressing.
This was demonstrated by “The Lombardy industries towards Industry 4.0: evidences of the evolution of occupations and skills” study, which highlighted with a statistical model not only the emerge of these new professions, but how in fact the companies are searching for them.
The choice of the Government, the Industry 4.0 Plan to intervene on the enabling factors at horizontal level without focusing on specific sectors, with stakeholder coordination but without a managerial method, gains a positive opinion from the companies. The knowledge of the Plan has been diffused by the trade associations and, above all, by the supply system that has had the ability to seize the favorable disposition for investments by the companies. These indications emerge from the KPMG research, presented at the recent Leonardo Committee Annual Forum, regarding the effects on the Italian industrial system of the digital technologies implementation, the implementation methods of the Plan and its results.
The impacts of the Industry 4.0 Plan in Italy and, in general, of the fourth industrial revolution and digital technologies on the Italian production system were the main topic of the XVI Annual Forum of the Leonardo Committee, recently held in Milan, which analyzed, thanks to a KPMG research, how the Industry 4.0 Plan launched a year ago by the Italian Government has been received by entrepreneurs.
Organized in collaboration with Agenzia ICE, Confindustria and UniCredit, it is the annual event that involves institutions, entrepreneurs and representatives of the financial world in order to take stock of the Made in Italy situation and development prospects for Italian companies; KPMG Research was carried out on behalf of the Leonardo Committee on a panel of 330 companies in the manufacturing, construction and services fields and is the indicative of the companies’ sentiment but has no statistical significance.
The heart of Industry 4.0 can be identified there smart manufacturing as the connection of production, robotics and data in the perspective of overcoming the current industrial model, revolutionizing the very idea of the factory as we have created it up to now. With this premise Alessandro Carpinella, Partner, Corporate Finance of KPMG, starts the presentation of the Research results, highlighting that in order to evaluate the impacts of the Industry 4.0 Plan we must consider the characteristics of the Italian industrial structure, characterized by: a high number of SMEs; a small number of large private participants able to direct the transformation towards the manufacturing sector; few chain leaders able to coordinate the evolutionary process of value chains.
“This situation happily condemns us to a transformation from below”, is the comment by Carpinella, recalling that the Government has chosen to intervene on a horizontal level without focusing on specific sectors, opting for stakeholder coordination but without a managerial approach. This is a choice shared by the companies, the object of the KPMG research: “The main indication found in the feedback of entrepreneurs about the Industry 4.0 Plan in Italy is that the widespread and simple tools work”, underlines Carpinella, who specifies: “It is still too early to draw the conclusions that this choice is the basis for the recovery, in recent months, of investments, which had instead collapsed in the previous decade”. The facts show that the Government’s incentive plan met the favorable recovery moment regarding the investments in basic production factors, especially in the industrial sectors. In fact, the 4% growth in equipment production was registered (between January 2016 and July 2017) with an increase of 15% of the related turnover.
In more recent periods there have been positive dynamics in terms of gross fixed investments with a growth of 9% in the first half of 2017 compared to the same period of the previous year, with an increase of 11,6% for machinery and 10,7% % for electrical and electronic equipment. The distribution of investments assigns a 35% importance to machinery and other equipment, 10% to electrical and electronic equipment, 18% to repair, maintenance and installation of machines, while the remaining 37% goes to other categories of investments. All in a framework of order growth expectation.
“We will have to wait for the second half of 2018 to confirm the impacts of the Industry 4.0 Plan in Italy for supporting these results, but it is time to set aside the rhetoric of our country,” reaffirms Carpinella, also referring to the good performance of the domestic market compared to Germany. In Italy the machinery and equipment sector grew by 8% in the last 18 months, compared to -2% for the German one, while the electrical and electronic equipment sector met an increase of 3,5% against 3% in Germany.
From now on, however, it is possible to compare the perspectives of the various countries to support the 4.0 phenomenon, among those who focused mainly on incentives regarding institutes and research centers, supporting a limited number of projects (as Germany did, followed by Japan and the USA), those who focused mainly on tax relief for companies (such as Italy) and those who followed a mixed perspective (such as France and Great Britain). It is understandable how the different methods are able to take into account the differentiated economy progresses of different countries and how to encourage growth
73% of the companies interviewed expect the deep impacts of Industry 4.0 on their business, with a greater awareness for companies with over 250 employees, where it reaches almost 85%. The main impacts of the Industry 4.0 Plan are focused on production efficiency (62.4%), which is a classic for industrial automation and is essential for medium-sized enterprises (almost 80%) and large companies (over 73%), but is also significant for the increase in the added value of products and services (48,4%), the improvement of customer relations (38%) and with suppliers (16,4%). The last three items indicate a growing awareness of deep change in business models, as we will discuss in a future article.
Industry 4.0, the boom of orders. In the fourth quarter of 2017, the “Ucimu – Sistemi per produrre” index, with regard to the association of the Machine tools, robot and automation Italian manufacturers, registered an increase of 21,5% on an annual basis. The foreign orders grew by 6,2% compared to the October-December 2016 period, while on the domestic field Italian machine tool manufacturers registered an increase in order collection of 86,2% compared to the fourth quarter of 2016.
During 2017, the total index registered an increase of 13,7% compared to 2016. The foreign orders grew by 4,7% to the total recovery of the setback registered last year, while domestic orders were increased by 45,9%.
The evolution in order collection in 2017 proves two phenomena that are decisively positive for manufacturing: on one hand, the index shows the recovery of contracts across the border, with a disappointing result in 2016; on the other hand, it registers the excellent investment performance in systems and software to improve production in manufacturing companies that operate in Italy where users, with an increasing pace in 2017, have acquired the latest technology for their companies.
“On the domestic market, –says Massimo Carboniero, president of Ucimu, the impact that the measures contained by the Industry 4.0 plan, and in particular Super and Hyper depreciation, have had on sales and the order collection is obvious”.
Satisfaction was expressed by the Minister of Economic Development, Carlo Calenda. “The increase of over 45% of the domestic orders of Italian machine tools in 2017 compared to last year, registered today by Ucimu is an excellent result because it represents not only an increase in business investment and domestic demand, but also the new path taken by Italian industry increasingly directed towards new products, the streamlining processes and more advanced technologies – says the Minister – Ucimu’s leap in equipment, robot and automation orders is certainly the result of a favorable economic situation and the increased propensity of our entrepreneurs to compete at an international level, but it is also the outcome of the new incentive system – no longer banned but automatic, simple and focused on innovation – launched with the Business Plan 4.0, in particular with the measures of super and hyper depreciation”.
ISTAT notices a delay in the use of IT tools, especially in the Center-South; for this reason GP Progetti focuses on the promotion and digital literacy of companies in the area. The software for improving manufacturing output has brought the expected results from client companies, but there is still a long way to go and wide edges for growth.
In fact, investments in the Italian production system are still limited, especially in terms of human capital, a circumstance that also becomes an important brake for the competitiveness of companies. The level of digitization also goes hand in hand: 63% of companies, especially if small, traditional and Central-Southern, have a very low digitization rate. 32% are at medium levels, and only 5% of companies, mostly medium-large reach a high degree of digitization regarding electronics, telecommunications and information technology.
This information was provided by the 2018 edition of the Istat Report on the Competitiveness of the productive sectors. In any case, the “connection” improves: from 2012 to 2017 there has been an increase from 10% to 24% of companies, although with a variance that has widened between SMEs and large companies. «In Italy there is still little investment in human capital» declared the Istat president Giorgio Alleva. «The average employees have only completed compulsory schooling. This affects the competitiveness of companies». Explain the Report that we have only «3% of companies, about 5.000, fully digitized and therefore with an important investment and also a support of human capital and material capital. We then have 30% of companies that have understood the importance of transformation, but which have constraints precisely in the allocation of material and human capital, and more than 60% rather indifferent to this strategy».
Investments are more sustained in the two-year period 2016-2018 compared to the previous one. The innovators are rising: 48,7% of the Italian companies of industry and market services with at least ten employees, have carried out innovative activities; 30% are defined as «strong» innovators (in products and processes), and 25% as product innovators. The Istat report then traces a first evaluation of the National business plan 4.0: for 62,1% of manufacturing firms, the super amortization has played a «very» or «sufficient» role in 2017 in the decision to invest and the hyper amortization for 47,6% (53% in medium-sized companies, 57,6% of large companies). The tax credit for research and development expenses was significant for 40,8% of the companies.
Do you need an estimate for software to improve production? GP Progetti has the ideal solution for manufacturing companies and can support the customer in the search for incentives and facilities provided by the National Industry 4.0 Plan.
Source: Bresciaoggi 24/03/2018
GP Progetti, together with partner Agomir, will be present at the “ALTECNOLOGIE” Trade Fair (High Technologies), taking place on 23-24-25 November at Lariofiere, Erba (CO).
Altecnologie is a BtoB Salon dedicated to businesses that deliver innovative product or process solutions, with proposed applications for a wide variety of economic sectors.
Altecnologie’s focus will be on:
- ICT and the Digitization of business processes
- Internet of things
- Industrial automation
- Sensor technology
- Integrated logistics
- Augmented Reality and Virtual Reality
- Innovation in production materials and equipment
- Plant engineering and machinery for additive manufacturing
- High-tech applications for production and logistics
- Innovation of products, processes, technology transfer and the spread of innovative business models
The event aims to provide operators with opportunities for growth and development by illustrating what the market has to offer in terms of innovation, new technologies, and the latest generation of business solutions.
Thursday 23 | Hours 10:00 – 18:00
Friday 24 | Hours 10:00 – 18:00
Saturday 25 | Hours 9:00 – 14:00
Lariofiere Como Lecco
A demo area set up in the Technology Village will host sessions organised by experts on current topics and case histories of excellence.
We look forward to seeing you in Pavillion B, Stand 101-108.