Weak GDP may delay policymakers’ ‘Industry 4.0’ plans

Significance

This spending is needed as manufacturers are under pressure to re-engineer their businesses by deploying technologies to enhance productivity and develop and scale new products and data-based services under the rubric of 'Industry 4.0'.

Impacts

• Technologies will revolutionise every aspect of industry from materials, product development, processes, networks and client interactions.
• Customer solutions based on intellectual property, data, services, skills and other intangibles will be critical sources of value creation.
• Capital investment is falling amid rising cashflow pressures and competition and faltering demand; this could reduce potential growth.
• Slower growth will worsen differences between firms that successfully adopt technologies to enhance customer value and those that do not.
• Governments will face rising pressure to respond to the social impacts of changes affecting their industrial sectors and to protect jobs.