1. Changes in Manufacturing, particularly in the mechanical, electrical, electronic and metalworking industries
Speaker: Željko Pazin
Director at Orgalime
Executive Director of EFFRA

2. Manufacturing & Europe
Background
Manufacturing & Europe
How important is manufacturing for Europe?
Despite the continued fall-out from crisis, manufacturing means a lot for Europe:
20 % Direct jobs
67 % Exports
65 % Business R&D Expenditure
Manufacturing in Europe remains diverse
Importance of manufacturing now recognised by EU and its member states...
....but also by Europe’s competitors

3. Production in 4 engineering sectors
Source: Eurostat Monthly data 2010=100

4. Engineering industries & EU manufacturing
36% of enterprises ​
Source: Eurostat – data refer to 2013

5. European Manufacturing Production (2011)
Mechanical, electrical, electronic, metalworking & metal industries employ some 10.3 million people in the EU and in 2012 accounted for some €1,840 billion of annual output. The industry not only represents some 28% of the output of manufactured products but also a third of the manufactured exports of the European Union. Mechanical engineering represents 9% of EU’s manufacturing production
Metal Articles
Production value in 2011
Source: Eurostat

6. What should be the basis of our debate today?
Our experiences in the past
Studies/Predictions
Understanding the limits of our actions
Good actions that can be done within our limits
EU ME has strong innovation intensity higher than competing economies and highest among EU industries on average.
The technological strength of the EU ME is distributed over a broad range of subsectors, which is not the case for US and Japan.
This can be assigned to the know-how in different technologies and the ability of EU companies to co-operate in multidisciplinary projects
To keep these advantages we must become better in exploiting research: This starts with better participation of companies from the beginning of projects, so that the resulting products are market-oriented. To achieve this, rules must become easier, so that SMEs can participate.

7. Investment in R&D is Part of the Solution to Recover from the crisis
Importance of Investment
Investment in R&D is Part of the Solution to Recover from the crisis

8. EU mechanical engineering a leading global actor
Pan-European industry
Technologically leading position
Winner in globalisation
Enabling energy and resources savings
ME industry’s production volume remained unchanged in 2012 after an expansion -well above the average - of 11.5% in the year before
Since 2000 EU’s ME represents roughly 40% of ME’s turnover.
We have a clearly leading role in comparison to our major competitors
This is partially attributed to EU’s infrastructure’s level.
Despite the given lack in price competitiveness, the EU ME had gained shares in global trade, up to 37.2% in 2010 from 33.8% in 2000.
ME has penetrated the Chinese and Japanese market in the past decade.
Results were not so good for the US market, but this trend is starting to change.
Moreover, changes in production processes account for a significant part of potential energy and resources savings
Therefore it becomes clear why we should ensure ME’s presence in the EU and apply policies that would attract more investment
(The graph on this slide is result of rough calculations based on the annual turnover’s change in the different economies as presented in the Commission’s study. Therefore, it is not to be used for very specific referencing)
Source: Study on the competitiveness of Mechanical Engineering, European Commission, 2012

9. Digital technologies Factories of the Future Cyber-Physical Systems
Selection of digital issues impacting on & being addressed in the ‘Factories of the Future’ PPP
Cyber-Physical Systems
Complex Systems
Factories of the Future
Big Data
Cloud
Internet of Things
Augmented Reality

10. Establish correct framework conditions
Correct Framework Conditions & support for Research & Development support for Skills Development
Europe needs to be the place for new investments
Establish correct framework conditions
Stable legislative framework: esp. for SMEs
Strong financing capacity
Europe needs to stay on the top of technological development and quality of the industrial workforce
Industry and research’s collaboration is indispensable
Skills development and Life long learning
EU ME has strong innovation intensity higher than competing economies and highest among EU industries on average.
The technological strength of the EU ME is distributed over a broad range of subsectors, which is not the case for US and Japan.
This can be assigned to the know-how in different technologies and the ability of EU companies to co-operate in multidisciplinary projects
To keep these advantages we must become better in exploiting research: This starts with better participation of companies from the beginning of projects, so that the resulting products are market-oriented. To achieve this, rules must become easier, so that SMEs can participate.

11. Thank you for your attention