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The future of Manufacturing

How industry is evolving and shaping the world

Manufacturing is at the heart of a strong economy

by contributing to:

GDP:

Manufacturing provides 17% of global GDP

From Industrie 1.0 to 4.0

Innovation:

Manufacturing has a 77%
share of global research
and development

Siemens Patents

Exports:

Manufacturing is responsible for 70% of entire global trade

Self-Organizing Factories

Worldwide, the gross value-added of industry
is growing by about 3% per year.
1 US dollar in gross value-added in industry
generates 1.4 US dollars in gross value-added
in other branches of economy.
The global market for industrial automation
posted turnover of almost $160 billion in 2012,
and it will reach approximately $200 billion
by 2015, according to IMS Research.
As a result, market researchers at IHS
Technology expect global sales of industrial
automation systems to rise from $170 billion
in 2013 to $209.4 billion in 2016. In Germany,
industrial value creation accounts for twice
as much of the total economic output as in the
UK, France, and the U.S.

Manufacturing: Self-Organizing Factories

USA

Manufacturing Resurgence
  • Stronger support for manufacturing and skills training (UI Labs)
  • Formation of a "National Network for Manufacturing Innovation”
Advanced Manufacturing

China

Higher product quality by use of highend technology
  • Developing from „Made in China“ to „Create in China“
  • Investment in software and automation
  • Increased energy efficiency
Future of Manufacturing (chin.)

Germany

Maintain leading industrial position
  • Sustainable investment in innovative strength
  • Maintain high share of GDP contributed by manufacturing
  • Industrie 4.0 as new guiding principle
Future of Manufacturing (de.)

Over time, industry has transformed from local-based to communication-based automation technology

Its constant evolution increases complexity
yet produces benefits

Technology

Digitalization is one of the
game changers

of CEOs worldwide expect
digital technology to cause
a significant change
in their industry

Siemens at a glance - Digital Factory

With industry software and the platforms for industrial
automation, product and
production lifecycles can be
brought together to keep the
increasing complexity under
control. Industry is thus
experiencing the digitalization of
production.

Society

The job-multiplication effect has a positive
impact on society

job in
manufacturing
creates
Jobs at Siemens
jobs in other
sectors
Jobs at Siemens

Industry enables more well-paid employment than the service industry. Each job in industry is typically linked with several jobs at suppliers and associated service providers.

Society

The job-multiplication effect has a positive
impact on society

job in
manufacturing
creates
Jobs at Siemens
jobs in other
sectors

Jobs at Siemens

Industry enables more well-paid employment than the service industry. Each job in industry is typically linked with several jobs at suppliers and associated service providers.

Market

Growing desire for individual products

Ford T-Model

“You can have it in any color as
long as it is black”
Henry Ford

Ford F-150

You have trillions of
variations

Choose a color

Image

Becoming a growth engine in the global economy

A motor for growth, employment and social stability; clean, environmentally friendly production methods and highly qualified jobs.

Software developers

employed by a digitized company, like Siemens, with industry-specific knowledge.

These are the challenges manufacturing
is facing today

Increasing efficiency

of all energy is required by industry alone

Energy efficiency as success factor

Thanks to innovative IT and software solutions for the virtual planning and development of products and production processes, optimized control of the production process and the use of innovative components, industry is succeeding in further increasing productivity and operating with less energy and other resources, and that dramatically cuts costs.

Shortening
time to market

shorter lifecycle of products nowadays

Shorten your time to
market and enhance competitiveness

As the real and virtual worlds converge, the development and production processes are becoming a single overlapping process extending from product development and production execution to services. That makes it possible to drastically shorten the time to market, and that is a considerable competitive advantage.

Enhancing flexibility

over the past 15 years, variety of products has more than doubled

Enhancing flexibility

over the past 15 years, variety of products has more than doubled

Today’s market is demanding more customized products and greater variety. A car, for example, can be ordered in any one of trillions of possible models – from the motor to the interior to the badge. That kind of variety and flexibility is only possible with the latest IT and software.

Improve competitiveness

The Digital Enterprise represents the entire value chain of a company.
Siemens solutions optimize and protect the processes of this value chain.

Selected References Publications on the future of manufacturing

Software

A consistent data model across all process steps generates a leap in productivity

The Siemens Digital Enterprise Software Suite reduces time to market by up to

while simultaneously
increasing quality

Digital Enterprise Software Suite New perspectives for plant
management

Duqueine Group designs and manufactures parts and subassemblies for aircrafts and race cars made of composite materials. The implementation of Siemens Teamcenter software reduces the development time of new products considerably.

Duqueine Group: On the road to international success

Communication

Efficient communication between people and machines creates maximum flexibility

Projected annual growth rate (CAGR) of M2M
communications by 2019:

Industrial communication delivers
higher productivity

"Vorsprung durch Technik" (progress through technology) is the motto of automobile manufacturer Audi. A philosophy also turned into reality in the body construction plant utilizing an end-to-end failsafe Industrial Wireless LAN.

Efficient communication in body construction plant

Security

Secure facilities and networks ensure system integrity and know-how protection

In 2014

large companies were
exposed to external
attacks

A holistic view of security Thinking security to ensure productivity

Cyber criminals are increasingly focusing on industrial facilities. The Industrial Security Lab operated by Siemens in Beijing helps customers protect themselves against hacker attacks.

IT-Security - Cyber Security in China

Services

Intelligent data analysis leads to more efficient production control

Predictive maintenance increases machine availability by up to

From Big Data to Smart Data Maximum plant performance
using smart data

The water supply network of Acquedotto Pugliese S.p.A. (AQP), represents an unusually extensive system of facilities. The technically advanced telecontrol system delivers real time data on the entire system. This enables more efficient maintenance processes based on predictive maintenance.

Acquedotto Pugliese: Always well informed

The Future of Manufacturing:
Bringing the real and virtual world together

On the way to Industrie 4.0 – Driving the Digital Enterprise

A company that wants to produce high-quality goods should do it the right way.
Instead of just “making things,” the formula for success in the future is:
“Making things right.”

The future of manufacturing depends on those who step up to the challenges
and provide reliable results.

By 2030 manufacturers will be able to move from idea to finished product in a fraction of the time that is
now required. The reason: even the most complex products - and their associated production processes -
will be designed and tested to perfection in the virtual world.

Download publications on The Future of Manufacturing
ARC Client Report: Scenarios for Investment in Manufacturing through 2050

Investment in industrial manufacturing will continue to grow worldwide. In their study “The Future of Manufacturing: Scenarios for Investment in Manufacturing through 2050,” ARC analysts define three different categories of countries and how likely they are to invest in the manufacturing sector through 2050 and beyond.

Request your copy of the report free of charge
Networked manufacturing: The digital future

The digital future is an Economist Intelligence Unit report that is based on desk research and in-depth interviews with experts including manufacturing professionals, policy makers, and academics. It discusses t networked manufacturing and the conditions that may enable a successful shift.

Request your copy of the report free of charge
Pictures of the Future: Solutions for tomorrow's world

Digital transformation, affordable infrastructures and intelligent energy use are the three key topics of the 2014 spring edition of Pictures of the Future. Digitalization is changing the rules of the game in every sector. Industry software can benefit manufacturing enormously – helping to improve resource efficiency, integrate processes and data and increase productivity.

Pictures of the Future
The Siemens customer magazine

The new Siemens customer magazine is now online! Find out about major developments in technologies, industries and markets – featuring the views of international experts and decision-makers from business, science and politics.

Siemens customer magazine
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The future of Manufacturing