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28/9/2020  
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Boston Consulting Group (BCG)

Digitalization will create 100,000s of German jobs according BCG


The increasing integration of digital technologies in industry will create hundreds of thousands of new jobs in Germany, according to a report by the global management consulting firm Boston Consulting Group (BCG) published Thursday.
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 The firm estimates a total of 390,000 new German jobs will result over the next decade from what it terms Industry 4.0, referring to the increased use of software and robots, in the study entitled Industry 4.0: The Future of Productivity and Growth in Manufacturing Industries.

"Germany, renowned for its manufacturing prowess and a world leader in industrial automation, is a good example to use to quantify the impact of Industry 4.0," the BCG report said.

The report predicts 1-per-cent growth in the German economy as a direct result of improving digitalization, or an extra 30 billion euros (32.23 billion dollars) on the gross domestic product each year.

Additional investments of 1- to 1.5-per-cent of manufacturers‘ revenues, or 250 billion euros, will be required by 2025 to drive the change, the report said.

"Germany has excellent chances of further expanding its global leadership role in machine building and automation, considerably increasing productivity and growth and creating more high-skilled jobs," said Michael Ruessmann, BCG partner and co-author of the report.

"To maintain this advantage in the long term, however, German companies have to invest much more strongly in building production-related IT and software competence and train highly skilled workers in these fields in a targeted manner," he said.

The report did not specify how much government would have to invest in education and training.

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