Market research: SME manufacturing industry takes digitisation steps, but productivity gains lag behind

New market research shows that the Dutch SME manufacturing industry is missing opportunities to increase labour productivity. The use of data and sensors has not yet been sufficiently developed at 80% of companies. In addition, 83% of companies have insufficient insight into which parts of the production process lend themselves to automation with AI. As a result, the leap in labour productivity fails to materialise. The new market research was conducted by Midpoint Brabant, REWIN, FME, Koninklijke Metaalunie and Fontys University of Applied Sciences.

The market study "Production automation in the SME manufacturing industry" is a follow-up to a 2024 market study. It provides an up-to-date and sharp picture of the state of affairs within Brabant's manufacturing industry. Input was collected via a broad survey of SME manufacturing companies.

Central conclusion market research: Companies want to move forward, but lack direction

The central conclusion from the white paper "Production automation in the SME manufacturing industry" (emerged from the market research) is clear: companies are on the move, but lack grip to really follow through. Efforts are being made to deploy data and sensors in the production process, but applications are often limited and insufficiently developed.

Automation and AI

In addition, the vast majority of SME manufacturing companies still have insufficient insight into which parts of the production process lend themselves to automation with AI. This is precisely what inhibits the necessary growth in labour productivity. Entrepreneurs especially need concrete examples, practical step-by-step plans and support with investment choices. The willingness to digitise is growing, but without a clear direction, the impact is lacking.

Small steps work, but acceleration needed

The research shows that SME manufacturing companies are increasingly opting for small, feasible steps rather than large-scale trajectories. Process innovation in production and the use of AI and technology that includes employees from the start are key. That approach is working - but time is running out. International developments follow each other in rapid succession. Without acceleration, the Dutch manufacturing industry risks losing ground.

Adjusting expectations

Janwillem Verschuuren, director/owner of metal company De Cromvoirtse on how his company has made great strides in automation and robotisation in recent years: "It is good to adjust your expectations when it comes to robotisation. Often people expect 150%. Adjust them to 80%. Implement your robot and make improvements over time. That way, you gradually work towards 100%."

From insight to action

The message is clear: the foundations have been laid, but standing still is not an option. In central Brabant, more than 60 companies have already taken this step over the past two years through the Learning Networks for Open Innovation, part of Midpoint Brabant's Smarter Working programme.

Combining technological and social innovations

"In this network, manufacturing companies, education and experts join forces to arrive at concrete action plans for production automation," says Petra Mouthaan, Slimmer Werken programme manager at Midpoint Brabant. "By combining technological and social innovations, companies learn to increase their productivity, focusing on processes, technology and people. We drive the development of new digital skills and the change capacity of organisations. The goal is clear: structurally higher labour productivity."

The market research can be viewed here.

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