We investigate the relationship between backshoring of production activities and digital manufacturing technologies, also known as Industry 4.0 (I4.0). We argue that I4.0 supports backshoring because it provides a higher productivity and flexibility which offers an incentive for firms to locate production close to their European customers.The empirical test is based on a large dataset of more than 2,000 manufacturing firms. Backshoring is still a rare event with a share of no more than 4% of all firms. Descriptive statistics as well as regression results indicate a positive correlation between the adoption of I4.0 technologies and companies' backshoring propensity.
This note presents empirical evidence on production backshoringthe movement of production activities from locations abroad back to the home country. Between 2010 and Mid-2012, only four percent of all firms moved production activities back to their home country. For every backshoring firm, there are more than three offshoring firms. Thus, from today's perspective it is unlikely that backshoring will be an important driver of a 'manufacturing renaissance' in Europe. The most frequent reason for backshoring is poor quality of the goods produced at foreign locations, followed by the loss of flexibility and too high transport costs. Sectors with a high backshoring propensity are electrical equipment, communications equipment and the automotive industry. These sectors may be the most obvious candidates for policy intervention to increase the frequency of backshoring in European manufacturing.
Purpose - Case study findings increasingly indicate that the implementation of service-based business concepts is becoming a global business trend. The purpose of this paper is to analyze a broad European survey to understand the extent to which service infusion has already deeply affected manufacturing industries and the factors influencing service infusion. Design/methodology/approach - Data from 3,376 companies participating in the European Manufacturing Survey were included in an evaluation of service offerings and service sales. Multivariate data analyzes were used to develop statistically relevant conclusions regarding service infusion and the factors influencing it. Findings - Whereas, the vast majority of companies surveyed offer services, the turnover generated by services was still low, and the adopted service strategies did not seem fully developed. The most significant determinant of service sales was the breadth of services offered. Other relevant explanatory factors included the characteristics of the type of products sold, whereas the position in the supply chain did not seem to affect service infusion. Research limitations/implications - Using large-scale survey data, this analysis provides a representative picture of service infusion in manufacturing industries and related causal relationships. Further qualitative research should develop interpretations of the relationships found in our quantitative analysis; as such, subsequent quantitative analyzes are necessary. Originality/value - As most previous studies on service infusion are based on case study reports, the value of this paper comes from its use of a broad empirical database. Thus, the paper supports, confirms, and generalizes previous qualitative findings
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AbstractPurpose -This paper aims to map the incidence of teamwork in European manufacturing industries and describe the process of teamwork diffusion over time. The impact of country, company size, manufacturing sector and other factors on teamwork diffusion is identified. Design/methodology/approach -The study is based on data from 3,522 companies gathered by the European Manufacturing Survey covering ten European countries with a common survey tool. Findings -Overall, six out of ten manufacturers with more than 20 employees have implemented teamwork in production. Furthermore, the authors show that implementation rates vary significantly by country, firm size and, to a lesser extent, sector of the company's activity. R&D expenditure, product complexity, innovation capability, strategy and to a lesser extent international competition and supply chain position create significant differences between firms opting for teamwork as a work organization practice and companies neglecting it.Research limitations/implications -The main limitations of the paper derive from the concept of EMS as a multi-purpose survey and the lack of adequate representation across European countries. Originality/value -The value of this research is the ability to offer recent, international and relevant figures about teamwork implementation and diffusion. Furthermore the data set makes it possible for the first time to describe the process of teamwork diffusion over time.
Services are playing an increasingly important role in modern economies. But services and innovations in services are not only a phenomenon in the service sectors, they also occur in the manufacturing industry. Services in the manufacturing industry are product-related services which are offered to customers together with the main products as an integrated solution. Based on firm level data from the European Manufacturing Survey 2006 for Germany, this paper explores the empirical relevance of product-related services and service innovations for manufacturing enterprises. The paper empirically analyses which types of traditional and advanced services manufacturing firms offer to their customers. Furthermore, it is shown that product-related services and service innovations significantly contribute to the sales of manufacturing firms. Using a multivariate regression model, it can be shown that services are particularly important for manufacturers of complex products and single unit or small batch size manufacturers
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