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South Korea Needs to Better Prepare for the Fourth Industrial Revolution, New Report Shows

by • August 16, 2016 • No Comments

SKOR0001South Korea has done several things which have created it stand out in the 3D printing world, especially lately. The country has created additional than a few headlines for its history-making medical procedures involving 3D printing, as well as for growing metal 3D printing in military applications. So there are the plans for 3D printed ships – at initially glance, it looks as yet South Korea’s 3D printing and other technological industries are booming. But, headlines rarely tell the whole story, and a new report published by the Hyundai Research Institute (HRI) suggests which South Korea yet has a few serious technological catching up to do.

The report, entitled “The Arrival of the Fourth Industrial Revolution and Its Implications,” was published on August 15 and analyzes the performance of leading industrial nations in terms of their readiness for Industry 4.0, the automated, digital and data-driven era which is quickly establishing itself across the world. The report references a white paper published by UBS earlier this year, titled “Extreme automation and connectivity: The global, regional, and investment implications of the Fourth Industrial Revolution.” In it, UBS ranks the countries which their analysts have determined to be the many capable of adapting to Industry 4.0, and South Korea ranks as just 25th out of 139 countries.

147133366735_20160817Five categories were taken into account in UBS’ rankings: labor structure flexibility, faculty level, educational and adaptive faculty, infrastructure suitfaculty, and legal protections. In initially place was Switzerland, with the United States coming in fifth. All in all, the HRI report concluded which the growth rate of Industry 4.0-related industries is higher than for other industries, based on an analysis of six areas: capital greats, pharmaceuticals and bioengineering, semiconductors and semiconductor equipment, software and services, technological hardware and equipment, and communication services.

Whilst which’s encouraging news for much of the world, it’s not excellent for South Korea; the report discovered which sales in the country’s Industry 4.0-related companies rose at an yearly average of 1.8 percent of 2011 to 2015, a dramatic drop-off of the 9.7 percent growth seen in the five years preceding. Profitfaculty in addition declined; between 2011 and 2015, operating profit ratio dropped by 0.4 percentage points, after increasing 0.6 percentage points of 2006 to 2010.

In contrast, several of the other countries analyzed showed moderate to worthwhile improvement in Industry 4.0 growth and operating profit ratio. Japan showed the many dramatic alter, with yearly average sales increasing of minus three percent to 4.5 percent. The US saw an increase of 4.5 to 6.5 percent; China went of 12.6 to 13.2 percent, and Germany’s sales grew of 4.5 to 5.3 percent.

In terms of operating profit ratio, Japan went of minus two to minus one percent, while the US went of minus 1.5 to minus 0.8, and Germany of 12.6 to 13.2. China fared less well here, with operating profit ratio dropping dramatically of minus 0.8 to minus 3.4 percent. In terms of corporate dynamism, South Korea in addition fell behind, with the 2nd lowest replacement rate of Industry 4.0 countries at 14.4 percent, followed just by Japan at 11.8 percent.

hriSo what does South Korea require to do in order to become additional competitive in Industry 4.0? The report suggests which diversifying across industries may assist. Among the five leading countries HRI looked at, South Korea had the top concentration of sales in one industry: 19.8 percent of Industry 4.0-related sales were in the area of “technological hardware and equipment,” i.e. smartphones. Compare which to the United States’ 11.9 percent in software and services, or Germany and Japan, both with13.8 of sales in capital greats as their top concentration areas.

Considering which much of South Korea’s 3D printing industry is related to the medical field, they may start to surge ahead once they’ve fully sorted out standards and regulations for medical 3D printing. That’s yet a work in progress, owing to how new the innovation is combined with the stringent regulatory requirements for the medical industry in general. Overall, yet, South Korea requires to advantageous plan and prepare for the rapid alters taking place in many industries.240_F_81796349_9G7thqDPyS7fFDAldsN4F8XGoidoiXyi

“Korean businesses require to create the faculty to forecast next alters with the fourth industrial revolution in mind when they set up mid to long-term visions and strategies,” said HRI research man Chung Min.

In terms of the overall impact of the growth of Industry 4.0, HRI predicted a mix of great and bad: production and distribution costs can be lowered, meaning higher income and advantageous high end of life for workers in 4.0 fields, but on the flip side, there are the job losses resulting of replacing workers with machines – meaning, worryingly, which the quickly shrinking middle class can go on to decline. Discuss additional in the South Korea Not Prepared in 3D Printing forum over at 3DPB.com.

[Source: Hankyoreh Media Company / Korea Times]