Future of production: Germany must digitize now!

Future of production: Germany must digitize now!

On March 13, 2025, the “Internet of Production” Cluster of Excellence at RWTH Aachen University once again pointed out the central challenges and opportunities for Germany as an industrial location. A comprehensive analysis addresses the key technologies of the future of production and the important role of people in digitalization. Germany is confronted with high wages and an acute shortage of skilled workers, which threatens competitiveness in many areas.

Digitalization in production has already made progress, but this varies greatly between industries and company sizes. Large companies in particular, such as those in the automotive and electronics sectors, have successfully implemented highly automated production processes. In contrast, many small and medium-sized enterprises (SMEs) are lagging behind, which poses a serious challenge.

The role of digitalization

Modern factories are increasingly relying on automated production lines, smart factories and artificial intelligence (AI) to optimize their production processes. Despite these technological advances, humans remain important as decision-makers and workers, especially in human-machine collaboration. Digitalization can also help to compensate for locational disadvantages in Germany by increasing productivity and reducing inefficiencies.

However, there are also numerous challenges. IT security, a shortage of skilled workers and uncertainties in political and economic conditions often inhibit investments. Many companies hesitate to invest in digital technologies because integration into existing structures is often difficult and costly for SMEs. However, early engagement in digital processes can secure long-term competitive advantages.

Future prospects and goals

The advantages of digitalization are complex: It promises increased efficiency, reduced costs and more sustainable production. Companies can react more quickly to market changes and improve product quality. Workers benefit from safer and more ergonomic work environments, and new technologies support maintenance and training. However, digital transformation also requires new qualifications and further training measures for employees.

The companies' short-term goals focus on increasing efficiency, IT security and improving human-machine collaboration. In the medium term, over a period of three to ten years, AI and big data will be integrated, while sustainability will be promoted through circular economy and energy-efficient methods. In the long term, companies are aiming for autonomous, self-optimizing production systems and personalized production processes that minimize resource consumption.

Predictions for 2035 outline highly connected and automated production with intuitive human-machine interfaces. CO₂-neutral factories and a focus on creative and strategic activities could help Germany secure its competitiveness and take a pioneering role in digital, sustainable production. The Cluster of Excellence is optimistic that these measures can create a sustainable advantage for the industry that not only has a positive impact on economic indicators, but also keeps social responsibility in mind.

In summary, underlined RWTH Aachen the urgency to understand digitalization as a strategic tool for the future and to address these challenges collectively in order to advance the digital transformation of the manufacturing industry.