Facts & Challenges
The plant and mechanical engineering sector in Germany, with around 6,500 companies and around 1 million employees, generates a turnover of around 240 billion euros. It is dominated by medium-sized companies. Small companies with fewer than 100 employees and a turnover share of 12 percent account for around 65 percent of all mechanical engineering companies. Companies with 100 to 500 employees account for around 30 percent of mechanical engineering companies. They generate around 35 percent of the sector's turnover. Large companies, which account for only 5 percent, generate more than 50 percent of the total turnover. The largest plant and mechanical engineering companies in Germany include Siemens AG, Robert Bosch GmbH, Thyssenkrupp AG, Linde AG, MAN SE, Krones AG and DMG Mori AG. The sector is very diverse and includes a wide range of companies from general and specialised mechanical engineering, plant engineering, automation technology and robotics to suppliers and component manufacturers. Plant and mechanical engineering is one of the most important economic sectors in Germany and plays a crucial role in the German economy. The country is one of the world's largest producers and exporters of machinery. However, China is the biggest manufacturer of machines. According to the German Engineering Federation (VDMA), China overtook Germany as the world champion in mechanical engineering exports in 2020.
Industry 4.0 technologies such as digitisation and automation are having a major impact on the sector. For example, Siemens has developed a Digital Factory that uses modern technologies such as the Internet of Things (IoT), artificial intelligence (AI) and machine learning to automate and optimise production. This includes intelligent production lines, robot-controlled production systems and sensor networks that collect and analyse data to improve production processes. New materials and manufacturing processes such as additive manufacturing are also having a huge impact on the construction of machines and systems. Examples include lightweight construction and optimised design, rapid prototype development, spare parts on-demand, customised products and cost optimisation.
In addition, social issues such as sustainability, circular economy, a shortage of skilled workers and a crisis-ridden economic environment are having a major impact on mechanical and plant engineering. Demographic change is leading to a major shortage of skilled workers, including engineers. Many engineers are approaching retirement age, while the number of engineering graduates is declining.
Trends in plant engineering and mechanical engineering
Digitisation, Industry 4.0 and robotics have experienced an upswing due to the pandemic and other crises. The future belongs to intelligent manufacturing, as it enables significant increases in efficiency, cost reductions, greater flexibility, improved quality and safety, product personalisation and improved sustainability.
Factories, plants and production are being planned using digital twins:
With the help of digital twins, a smart factory can be simulated even before it is built. Production changeovers can also be easily monitored.
Automated storage systems, automated guided vehicles (AGVs), robots, connected machines, sensor technology, cyber-physical systems, big data and AI are increasingly being used in plant and mechanical engineering.
Lean Manufacturing and One-Piece-Flow:
In logistical flow production, employees accompany a workpiece through the various processing steps until completion. This approach makes production processes in mechanical engineering more efficient, resource-saving and flexible.
New materials and manufacturing processes:
New materials such as composites, metal foams or fibre-reinforced plastics enable the production of lighter yet robust components. Additive manufacturing enables complex geometries and optimised designs.
Subscription scheme for machine parks:
Instead of investing large sums in the purchase of machines, companies pay regular subscription fees to use the machines and equipment they need. The advantages are reduced initial investment costs, flexibility, additional services and access to the latest technologies.
Sustainability and circular economy:
The Green Deal aims at making European industry more environmentally friendly and promoting a circular economy, thereby promoting sustainable production technologies and the reduction of waste and pollution. The German Supply Chain Act obliges companies to comply with human rights and environmental standards along the supply chain.
Skills shortages, agile teams, new working time models and the use of AI are transforming the world of work in industry in general and in plant and mechanical engineering in particular. Engineers from all disciplines are desperately sought after.
Difficult economic environment:
Recession, inflation, crises, Chinese competition. One way to deal with this challenge is to increase customer proximity and loyalty and improve service which in turn have a positive influence on the resilience and the risk management of supply chains.
What are the requirements for logistics?
Logistics 4.0 technologies are being used ever more in plant and mechanical engineering. The goal is to create the smart, digitised and automated factory with matching logistics and intralogistics. As a result, automated warehouse systems such as shuttle-serviced warehouses, autostores, pallet racking systems serviced with storage and retrieval machines, automated small parts warehouses (AS/RS), etc. have become increasingly common. At the heart of Intralogistics 4.0 is an inventory or a warehouse management system (IMS or WMS). The various elements in a warehouse, such as storage systems, AGVs, robots, picking systems, etc., are connected with each other and with other parts of the company, such as production. All processes are optimised by collecting large amounts of data and evaluating them with AI. A digital twin can be used to simulate warehouse processes and increase efficiency.
In plant and mechanical engineering, Kanban and one-piece flow systems are still being used to optimise production, even if the pandemic may have led to larger buffer stocks. Both principles can also be implemented in the warehouse, for example with special Kanban racks. For the one-piece process, current warehouse processes are analysed to identify bottlenecks. To enable a continuous material flow, the warehouse layout must be designed accordingly. This can include the rearrangement of shelving and racking, work stations or the establishment of specific flow paths. Lean principles are implemented to reduce waste in the warehouse. These include measures such as avoiding stacked material, minimising transport times and improving work processes. Of course, warehouse processes must be continuously monitored and improved (keyword: Kaizen) in order to optimise material flow and throughput times.
Efficient handling of small parts and C-items is particularly important in plant and mechanical engineering companies. BITO provides shelving and racking as well as bins and containers for Kanban systems. such as C-item containers, which combine the advantages of handling bins and open fronted storage bins, and Euro containers in modular sizes. The driverless bin and container transporter LEO locative from BITO is particularly attractive for use in automated mechanical engineering processes due to its flexibility, plug-and-play installation, ease of use, low purchase costs and decentralised controls. LEO saves a lot of walking and reduces the strain on employees.
Of course, BITO offers many other storage solutions, such as static and live storage shelving and racking systems, single-tier and multi-tier installations as well as bins and containers for storage, transport and order picking.
