Competitiveness is crucial to grow the manufacturing sector and its value addition within supply chains, and talent development is one of the main drivers of manufacturing competitiveness, Department of Trade, Industry and Competition (DTIC) Fourth Industrial Revolution (4IR) chief director Ilse Karg said this week.

Digital transformation of industry and inclusive economic growth means a well-educated workforce is needed. South Africa, therefore, needs to ensure it has the necessary skills and knowledge to participate in the digital economy, she said during a conference hosted by Manufacturing Enterprise Solutions Association (MESA) Africa.

She said the DTIC recommended a human-centric automation policy as the national industrial strategy and policy.

"We have to be aware of the new technologies and what opportunities we can create, including how Africa can cooperate to improve competitiveness on the continent," Karg noted.

The DTIC has identified four areas that it believes can improve competitiveness in the manufacturing sector, namely physical technology, applications, digital platforms including networks and production systems, and digitally traded services.

The DTIC aims to support the development of technical and technological capabilities so that the country can leverage the benefit of smart manufacturing technologies. For example, the DTIC is researching user interfaces and virtual reality solutions to train workers and prepare them to do new jobs.

"We are busy with research on technology innovations, and we are working with industry to look at how we can support industrial innovation," Karg stated.

The department is also investigating how the national system of innovation can better support industrial innovation. The DTIC is part of the National Advisory Council on Innovation, which advises Cabinet on innovation.

The council focused a lot on industrial innovation and how the broader ecosystem and incentives could support industrial development. It was undertaking research in this area, she added.

"In the national system of innovation, we are looking at technology readiness levels for basic and advanced research and development through to full commercialisation. However, we are part of a policy landscape that involves other departments, which also introduces various interdepartmental dynamics into this space," Karg said.

In transforming and developing a sustainable manufacturing sector, the DTIC is focusing on building technical capabilities in many areas and is investigating how the institutional landscape and the technology institutions and science councils can play a big role in supporting industrial technology innovation.

Technological innovation would also support the country in achieving a higher growth trajectory, she said.

Additionally, to build sustainability in the manufacturing sector, the DTIC is focusing on skills development, the future of work and the benefits of smart factories.

"Moving to smart manufacturing requires a capable workforce. Our research shows that talent development is the main driver of manufacturing competitiveness, and we must focus on talent development.

"We are, therefore, also looking at qualification recognition. With the open courses available, the DTIC is also investigating microcredentialling to determine how we can recognise short courses," she said.

Further, for South Africa to build its local manufacturing capacity, it needs to measure the value addition in manufacturing, which requires data collected from industry so that policy makers are able to create evidence-based policies and interventions.

"To build local manufacturing capacity, value addition and jobs, beyond import and assembly, we rely on evidence from data collected from industry to be able to determine what interventions could work. Government can go into partnership with industry to solve the problems of manufacturing value addition and building local manufacturing capacity," said Karg.

The DTIC is, in line with the advice from the United Nations Industrial Development Organisation, looking at developing an Industrial Internet as a tool for industry.

"The Industrial Internet will be capable of connecting industrial devices and facilitating real-time data collection and analysis, which will define the new standards and shape the growth of smart manufacturing."

Meanwhile, building a sustainable manufacturing sector means building environmental sustainability, she highlighted.

"This is particularly relevant in manufacturing, which can make various choices about materials and must consider the sustainability of products produced from the design phase.

"Sustainability also presents opportunities to make manufacturers more competitive, such as through energy efficiency and water and waste management."

Industrial policy was the second of nine priorities in the National Development Plan, and was part of a range of policies, including the 4IR country strategy, post-school education and training policy and digital skills strategy, and a digital economy masterplan, noted Karg.