Understanding Socio-Economic Aspects


Objectives

Work Package 4 will identify mechanisms that relate technological innovation to socio-economic factors like employment and education, business cycles and sustainable growth. By analysing the current reality, a theoretical basis on socio-economic aspects will be developed. Given the fact that the machine tool and auxiliary equipment sector has a broad end-user spectrum and therefore is able to provide significant data on socio-economic aspects, this particular sector will be the main focus of the investigations.

 

The results of WP4 will support the “Scenario-making” activity in Work Package 3 and the Strategy Development in Work Package 5.  

 

 

Description of works / tasks


A focused socio-economic task force the Foresight Committee will carry out work Package 4.  The work group consists of socio-economic experts, and is co-ordinated by the economical department of CECIMO.

Work Package 4 is based on seven complementary tasks:

 

 

Task 4.1: Manufacturing technologies in the world economy

 

As background information for the whole project, Task 4.1 will generate a general statistical quantification and analysis of the manufacturing technology sectors, considering their weights and evolution in the European and world economy. 

The research will consider:

  • Comparison with end user’s sectors.

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  • Breakdown in various categories of manufacturing technologies.

  • Growing importance of service vs. equipment.

  • Difference related to the development level of economy (stress on EU candidate countries).

  • Importance of outsourcing (supply chain).

  • Evolution of the structure of the sector.

The applied methodology will consist in compiling and analysing public and private statistical data.

 

 

Task 4.2: Economic impact of technological innovations and productivity growth of equipment

 

This task aims at confronting the buying criteria of new equipment as defined by the economical theory with empirical data and to investigate on the economic consequences of the demand for more productive equipment.  It will address economic evaluation and financial justification techniques in new paradigms (cost benefits of automation and agility, equipment justification if machine capacity is rented…) 

With concrete examples of new technologies, the economic advantages of new generations of equipment will be highlighted.  This task will combine economic and technical analyses.

The research will include an analysis of:

  • The economic criteria to buy new equipment (micro-economy).

  • The impact of more productive equipment on the total demand (macro-economy).

  • The economic advantages of technological innovation in specific cases within MANTYS projects.

  • The impact of process chain modification.

  • The business cycle of equipment and resources for innovation.

The data generated in Task 4.1 will provide the basis for answering the main questions of Task 4.2.

 

 

Tasks 4.3 on external factors

 

The manufacturing technology sector is not only influenced by technological innovation of manufacturing equipment. The major external factors will be considered in three tasks:

Task 4.3.1: Product innovation by end users

Major product innovations at the end users’ side modify the requirements towards manufacturing equipment.

This task will focus on key sectors (automotive, aerospace) where it will determine:

  • The timing in which new technologies and products are progressively implemented (e.g.: “space frame” technology, electric car, fly-by-wire,...).

  • The relative economic importance for manufacturing equipment of these product innovations.

  • The quantitative relation between product innovations and manufacturing equipment.

Through exchange of information within the MANTYS network, analysis of specialised studies and magazines, and based on complementary interviews, the task force will make a synthesis on these issues.

Task 4.3.2: Business Cycle factors

 

Manufacturing equipment are capital goods required by numerous manufacturing industries to produce final items in a competitive manner.  But the demand of such equipment is facing deep business cycles that affect the resources of companies (human and financial resources).  This issue has consequences on the management of companies but it has also links with the technological innovations.

The aim of this task is to:

  • Better understand the factors that generate the deep business cycles of the manufacturing technology sector.

  • Investigate on the links with technological innovation and managerial issues.

  • Investigate on the correlation with other economic indicators.

Based on the data collected in Task 4.1, the questions will be mainly examined through econometric instruments.

Task 4.3.3: Public authorities and regulation

The public authority influences the economic framework of the manufacturing industries, among others through trade regulations, specific national or regional measures and through EU Directives applied to the sector.

The knowledge and perception of this legislation by individual companies that buy or sell manufacturing equipment is rarely investigated but is an essential factor for the effectiveness of these legislations.

The scope of research includes:

  • The impact of various measures to support investment (write-off legislation, ...) as perceived by companies.

  • Survey on influence of Directives.

The task group will identify specialists who can constitute a representative panel for the legislative matters on manufacturing equipment (from the point of view of end-users and equipment builders).

The task group will summarise its perception and opinions on impacts and difficulties of legislations related to manufacturing equipment.  These initial findings will be distributed among the MANTYS network in order to gather the opinion of companies in this field.  Based on this interaction, the initial synthesis will be further elaborated.

 

Task 4.4: Human resources and education

Task 4.4 focuses on the quantitative and qualitative requirement for human resources in the manufacturing technology sector. 

The objectives are:

  • To identify the shift in required qualification due to the evolution of equipment.

  • To evaluate the availability of the qualification on the market .

  • To compare the programmes offered by training institutes to achieve this goal.

  • To compare and exchange the measures taken on national level to attract more people to the manufacturing technology field.

  • To evaluate the management of careers in the manufacturing sector.

As broad experience and competence are already available at national associations and training institutes, the main task of this research group would be to collect, exchange, compare ("benchmark"), update and summarise the diverse measures and experiences on national level in this field through a comprehensive report.

Methodical questions and interviews will be added to the information shared by the task force members in order to update and summarise the findings.

 

 

Task 4.5: Social issues

 

Technological development is affecting the human relationship to technologies, the working conditions both within the companies producing capital goods and within those that use them.  The image of mechanical engineers and the manufacturing technology sector does not always correspond to the current and coming reality.

In addition, in our evolving society, new values such as the ethic behaviour of engineers or environmental issues are taking ground.

Task 4.5 will address these societal issues and will contribute to a better understanding of further requirements of the manufacturing equipment sector in this field.

The scope of research includes:

  • Societal image of the manufacturing equipment sector.

  • Evolution of manpower in end-users' companies.

  • Evolution of the working conditions.

  • Ethic and environmental challenges.


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