Automotive industry overlooks employee skills in digital transformation push, study shows

As car manufacturers drive to embrace even more automation and data-driven processes as well as artificial intelligence, a study in the International Journal of Environment, Workplace and Employment suggests that the sector may be overlooking one of the biggest problems in digital transformation: how to equip employees with the necessary skills to thrive in this new era.

Industry 4.0 is the term often used to describe the integration of digital technologies into conventional manufacturing. It has become the main focus of many automotive companies hoping to remain competitive.

From the development of autonomous production lines to the use of so-called blockchain-based supply chains, the sector is undergoing major changes. But, the systematic review of the academic and industry literature shows that while the machines may be ready, the people might not be.

The study examines the shifting demands placed on the workforce as manufacturing processes become increasingly digitized. It identifies three broad domains of skills that are needed for this transition to be successful: technical, managerial, and social.

Technical competencies include knowledge of advanced data analytics, blockchain systems, and the operation of autonomous production lines. Managerial competencies relate to strategic decision-making in rapidly changing, technology-focused environments. Social skills, which are often overlooked in technical discussions, encompass communication, teamwork, and emotional intelligence.

These various skills are collectively known as Human Capital 4.0 and represent a more anthropocentric approach to industrial transformation. The review suggests that there is an urgent need to define these skills more precisely for real-world applications.

Moreover, training programs and workforce strategies, the researchers found, remain too general to be effectively implemented at scale. There is thus a pressing need for a new, well-defined blueprint for the workforce of the future in the automotive sector. Despite the tech, people remain close to the heart of the industry.