[The Editors' Verdict] Time to Usher in a New Renaissance for Manufacturing

Published 06 Jan.2022 11:52(KST)

As COVID-19 has prolonged, the public has grown quite weary. With the emergence of variant viruses, the previously eased social distancing measures have been reinforced again. As some of the base effects on economic growth rates disappear, this year's growth rate is likely to return to levels seen in the past. In this situation, it is necessary to closely examine our country's industries.

Industries that have significantly declined in domestic share due to COVID-19 include face-to-face sectors such as manufacturing, wholesale and retail, transportation, accommodation and food services, and finance and insurance. On the other hand, due to the surge in real estate prices, business facility management, business support and rental services, real estate, as well as professional, scientific, and technical services have improved. Even without COVID-19, these changes were inevitable with the Fourth Industrial Revolution, but now they are being felt more rapidly.

First, it is necessary to strengthen the competitiveness of existing manufacturing. Many countries have seen growth slow and employment stagnate as they shift from manufacturing to service-oriented economies. There is no doubt that manufacturing has been the driving force of our country's growth and continues to contribute significantly to the economy through industrial ripple effects and employment. Therefore, it is necessary to integrate and operate Fourth Industrial Revolution technologies such as artificial intelligence (AI), big data, cloud computing, 5G, Internet of Things (IoT), robotics, 3D printing, new materials, and metaverse (extended virtual world) within manufacturing.

Of course, the scope of manufacturing is very broad, making it difficult to fuse with other new technologies, but innovation is still necessary. This is because costs can be reduced and production can increase. Additionally, new value must be created. By applying these technologies across all corporate activities derived from manufacturing?planning, design, development, raw material procurement, production, distribution, marketing, delivery, and after-sales service?new value can be generated.

To this end, technical personnel should be deployed in manufacturing or work together with companies that have technological capabilities. Employment can also increase. If manufacturing investment is induced domestically, production can increase further and economic growth rates can rise.

Digital transformation like the Fourth Industrial Revolution is necessary for existing manufacturing. Furthermore, incorporating our country's unique culture can secure industrial competitiveness. After COVID-19, our country's culture and content continue to be exported overseas, and with the spread of Hallyu, exports of manufacturing products such as cosmetics, home appliances, and automobiles are occurring. When digital transformation is fused with culture, it can produce powerful effects.

Manufacturing is not a declining industry. Most are still operational and play a pivotal role in our country's economy without a doubt. To revive manufacturing and enhance competitiveness, the government must implement various policies. It should improve business management conditions and resolve difficulties. Various regulations should be relaxed as much as possible, and support should be provided for the supply of technical personnel to existing workers and employment subsidies. Additionally, tax support should be strengthened to ensure that foreign direct investment returns to domestic companies, and anti-business sentiments should be alleviated. The government also needs to assist in the digital transformation of factories.

Manufacturing has encountered an opportunity for change due to COVID-19. Now is the time to integrate with the Fourth Industrial Revolution and infuse our country's culture to transform into a new, competitive industry, and this has become a necessary situation.