Reorganization of Industry: Challenges for IiM by Economic and Employment Effects of New Manufacturing Concepts

The effectiviness and efficiency of manufacturing is of crucial importance for European competiveness. It is a major ecomomic activity and establishes the base for high-value business services. Restructuring and modernization of manufacturing operations are a core interest of policy makers and industrialists. In the nineties the major developments in industry focussed on new manufacturing concepts which paved their way into industry. Results of the Fraunhofer-ISI survey on production innovation show the diffusion of elements of lean production and other re-organization concepts in German capital goods producing companies. The performance of companies using the concepts is significantly higher than of non-users although significant adopter potentials remain in the areas of work organization and personnel development. Further, the employment development of the companiesusing these concepts is twofold: A decreasing number of jobs is more likely if companies are using the concepts for cost -cutting efforts. Companies following a market-oriented strategy which relies on product innovation, service products and customer orientation, achieve more likely growth and more jobs. liM is one of the central R&D efforts in Europe to foster manufacturing and to enable business services. Future technologies should consider this strategic orientation along sustainable growth of both economy and jobs. Recommendations highlight the resulting requrements for technological development and the need for interdisciplinary research