Manufacturing in transition: Transformation instead of hesitation

Mechanical engineering is a cornerstone of the German economy and is known to face the challenge of redefining itself in a dynamic world. Digital technologies, sustainable processes, and innovative business models offer enormous opportunities - but also require

determined willingness to act. Customer orientation, regional strategies, and the development of skilled workers become the foundation for successfully shaping the future of mechanical engineering. The core aspects are largely correctly identified in the industry, but active implementation is often still insufficient.

The much-cited digitalization specifically opens up new possibilities for mechanical engineering to address customer needs more precisely while simultaneously increasing its own efficiency. Technologies like predictive maintenance and machine-as-a-service (MaaS) are of central importance here. Predictive maintenance allows the condition of machines to be monitored in real-time and maintenance needs to be predicted before failures occur. This reduces unplanned downtime and significantly lowers maintenance costs.

According to a recent study by McKinsey, companies can reduce their maintenance costs by up to 30 percent through the use of predictive maintenance while simultaneously increasing machine availability by up to 25 percent.

Machine-as-a-Service revolutionizes traditional business models

A practical example is provided by Siemens with its AI-supported predictive maintenance solution, which makes it possible to make maintenance processes more interactive and intuitive. By using artificial intelligence (AI) and the Internet of Things (IoT), machines can be continuously monitored and potential problems detected early. This not only leads to cost savings but also increases machine availability and extends their lifespan.

Machine-as-a-Service (MaaS) revolutionizes traditional business models by allowing customers to no longer purchase machines but to pay for their use as needed. This model offers flexibility and reduces capital commitment for customers, while manufacturers benefit from continuous revenue streams. An example of this is the company Trumpf, which offers customers the opportunity to pay only for actually produced parts with its pay-per-part model, thereby lowering investment barriers.

The integration of digital twins into production processes makes it possible to create virtual replicas of machines to simulate and optimize their operation. This leads to improved production planning and control. Companies like Trumpf use digital twins to make their manufacturing processes more efficient and reduce energy consumption.

Digital twins are not only a tool for optimization, but also a key for integrating sustainable practices into the production process, as they can significantly reduce resource consumption.

Why regional networks are important

Globalization has posed new challenges for mechanical engineering, particularly regarding supply chain stability and sustainability. Diversifying production locations and building regional networks are crucial to increasing resilience to global disruptions.

Regions like Southeast Asia and Africa not only offer sales potential but also opportunities for collaboration in manufacturing. Siemens, for example, has successfully established production facilities in Asia to better serve regional markets while reducing transportation costs and emissions.

The European Union's Carbon Border Adjustment Mechanism (CBAM) underscores the importance of sustainable production processes. Companies must reduce their CO₂ emissions along the entire value chain to avoid additional costs and regulatory hurdles. Schaeffler is increasingly focusing on climate-neutral manufacturing strategies to compete in this new competitive environment.

These investments not only ensure compliance with new regulations but also strengthen customer trust. At the same time, regional networks open up the possibility of working more closely with local partners to leverage cultural and market-specific expertise.

Developing and securing skilled workers

The shortage of skilled workers in mechanical engineering is one of the industry's biggest challenges. To counteract this, investments in education and training are essential. In October 2022, the federal government presented a new skilled worker strategy, which includes the modernization of dual vocational training and the promotion of further training opportunities.

According to a study by the German Economic Institute (IW), there is currently a shortage of over 30,000 skilled workers in mechanical engineering, a number that could increase further without targeted measures.

Companies like DMG Mori rely on dual study programs and tailored training programs to promote young talent and further educate existing employees. These approaches combine theoretical knowledge with practical experience and optimally prepare skilled workers for the requirements of the modern working world. At the same time, new technologies such as e-learning platforms open up additional opportunities to offer training content flexibly and individually.

International skilled worker migration offers another way to address the skills shortage. ZF Friedrichshafen, for example, cooperates with universities in India and Brazil to attract talent early and integrate them into the corporate structure.

This strategy combines global recruitment with local retention to create long-term benefits. The introduction of visa facilitation for skilled workers in Germany could further accelerate this process

and make access to international talent easier.

Interim management offers another flexible solution to provide expertise in critical projects on a short-term basis. Temporary assignments of experienced managers make it possible to bring in specific know-how without burdening long-term structures.

The combination of interim expertise and long-term knowledge transfer is crucial for the success of such projects.

Change as a lever for shaping the economic future

The German mechanical engineering industry faces the task of repositioning itself in a changing environment. By consistently focusing on customer needs, integrating digital technologies, and securing qualified skilled workers, the industry can maintain and expand its competitiveness. However, it requires courage and determination to actively shape these changes and the willingness to accept initial bumps and mistakes in the design as learning effects on the way to the goal.

Companies that take this path will not only secure their own future but also set new standards for the entire industry. At the same time, it becomes clear that sustainable practices and regional networks offer not only ecological but also economic advantages.

The core aspects of the challenges and opportunities in mechanical engineering are widely known - digitalization, sustainability, and securing skilled workers are in focus. However, the reality shows that practical implementation often lags behind expectations. Many companies remain stuck in pilot projects instead of daring the necessary scaling and integration of new technologies into everyday life.

Some companies have already set the right course, but the industry

 as a whole must show more courage: From the widespread introduction of predictive maintenance strategies to the increased use of regional networks to decisive investments in training and retaining talent. The window for hesitant action is closing rapidly. It is time to actively shape the challenges and not just remain in a state of constant analysis.