The Dutch manufacturing sector is in the midst of a new phase of digitalisation. Industry 4.0 still forms the technological basis for this, but the discussion is increasingly shifting towards Industry 5.0: an approach in which technology not only boosts productivity but also contributes to people-centred, sustainable and resilient production.
According to Aeternus, which specialises in corporate finance, this trend is clearly evident in recent takeovers of Dutch companies in the fields of industrial automation, manufacturing software, sensor technology and energy management. A striking example is Sensorfact, a Dutch provider of energy management software, which was acquired by ABB.
Strategic value
In discussions with business owners, Aeternus’s Industrial Manufacturing sector team has observed that buyers are focusing more specifically on technology that makes production processes more scalable, more predictable and less reliant on manual labour. For buyers, this increases the strategic value of such companies: their solutions contribute to a more resilient business model, greater cost efficiency and a stronger competitive position for Dutch manufacturing companies, including in comparison with production sites in low-cost countries.
Operational excellence and digital maturity
For businesses in the manufacturing sector, operational excellence and digital maturity are becoming increasingly intertwined. Companies that make effective use of production data can manage their processes more quickly and accurately, thereby achieving structural improvements in efficiency, quality, flexibility and scalability.
Buying and selling
Mergers and acquisitions in the manufacturing sector are primarily centred on automation, manufacturing software and technology for the connected factory. These solutions make production processes more efficient, more scalable and less reliant on scarce labour, whilst also contributing to sustainability and operational resilience. For strategic buyers, they offer immediate technological enhancement, whilst investors see opportunities to develop broader platforms centred on the digital and future-proof factory through a ‘buy-and-build’ approach.
Trends in the manufacturing sector
A clear early trend is the sustained demand for factory automation, robotics and machine vision. For manufacturing companies, these technologies are no longer merely of interest for cost-saving purposes, but also for increasing capacity, quality and reliability. With the emergence of Industry 5.0, an additional dimension is added: automation must not only make machines smarter, but also support employees and make the production environment more future-proof.
Software as a connecting layer
A second trend is the emergence of software as a unifying layer within the manufacturing industry. Whereas manufacturing companies used to work with separate systems for planning, ERP, shop floor control and quality recording, there is now a growing need for integrated software environments.
Industry 5.0
Alongside automation and software, two further themes stand out: enabling technologies and operational efficiency. These themes fit well with the shift towards Industry 5.0, in which connected assets, data and specialist technology are also utilised to promote sustainability, flexibility and the continuity of production.
Platform formation
Mergers and acquisitions in the market show that platform formation is also gaining ground in the Dutch manufacturing sector. Whilst Industry 4.0 primarily centred on connecting and automating production processes, the focus is now shifting towards broader propositions centred on productivity, sustainability, human-machine collaboration and operational resilience. Buyers are not only looking to add individual pieces of technology, but also to establish a broader range of services, software and technology centred on the digital factory.
Photo: Image by Gerd Altmann via Pixabay Source : Aeternus
Companies that make effective use of production data can manage their processes more quickly and accurately, thereby achieving structural improvements
achieving efficiency, quality, flexibility and scalability.Report: ‘Digitalisation drives deal activity in the manufacturing sector’
