How digitalization is transforming metalworking and factory efficiency

Digital transformation is becoming increasingly important for metalworking manufacturers seeking to improve productivity, reduce operational inefficiencies and remain competitive. However, many companies, particularly small and medium-sized enterprises (SMEs), continue to face challenges involving outdated equipment, limited digital expertise and disconnected production systems.

These challenges will be among the key topics at NexGeM (Next Generation Metalworking), a new trade exhibition taking place alongside HANNOVER MESSE from April 5–8, 2027. Under the theme Metal Works Digital, the event will bring together specialists in metalworking, industrial automation, information technology and digital manufacturing.

Moving Beyond Digital Pilot Projects

For manufacturers, implementing digital technologies requires more than introducing new software or connecting individual machines. Successful transformation involves examining the entire production process, identifying inefficiencies and developing a long-term improvement strategy.

Professor Jürgen Fleischer, Director of the wbk Institute of Production Science at the Karlsruhe Institute of Technology (KIT), emphasizes that digitalization should be treated as a continuous process rather than an isolated project.

According to Fleischer, manufacturers need to establish clear implementation stages, assess production bottlenecks and ensure that management remains committed to the transformation process.

The urgency is particularly evident in globally competitive industries, where manufacturers must respond quickly to customer inquiries, prepare quotations and deliver products within shorter lead times.

AI and Connected Systems Improve Production Efficiency

One of the major obstacles to factory digitalization is the lack of seamless communication between production systems.

In many manufacturing facilities, information is still transferred manually between machines and departments using spreadsheets or external storage devices. Such practices can delay production decisions and create unnecessary inefficiencies.

Integrating work preparation, numerical control (NC) programming, resource planning and shop-floor operations can help manufacturers create a more coordinated production environment.

Artificial intelligence can further support this transition by accelerating data analysis, optimizing machine utilization and improving production planning.

Fleischer also highlights the importance of developing digital skills among employees and working with external specialists when internal expertise is limited.

GROB-WERKE Demonstrates Practical Smart Factory Solutions

German machine tool manufacturer GROB-WERKE provides an example of how traditional manufacturing operations can transition toward data-driven production.

The company began its digitalization journey in 2013 with the establishment of Grob-Net4Industry, an internal Industry 4.0 development department.

Its initial objective was to connect machines with different control systems, regardless of their manufacturer or age. This enabled GROB-WERKE to collect production information from both modern and legacy equipment.

Through its connectivity solutions, the company can access data directly from programmable logic controllers (PLCs) and NC systems, including equipment without native OPC UA communication interfaces.

The collected information can then be made available through industrial communication technologies such as MQTT and OPC UA for further analysis and integration.

Potential Efficiency Improvements of 8–15%

According to GROB-WERKE, manufacturers implementing continuous improvement programs supported by machine data can realistically achieve efficiency gains of 8–15% within one year, based on the company's experience.

However, collecting data alone does not automatically improve productivity. Manufacturers must use the information to identify recurring equipment problems, production bottlenecks and opportunities to optimize machine availability.

GROB-WERKE has also developed retrofit solutions that allow older machines to be connected without extensive modifications to existing factory infrastructure.

These approaches can be particularly valuable for SMEs seeking to introduce smart manufacturing technologies while continuing to operate established production equipment.

Cybersecurity and Data Ownership Remain Priorities

As industrial equipment becomes increasingly connected, manufacturers must also address cybersecurity and data protection.

GROB-WERKE emphasizes security-focused system design, external penetration testing and compliance with relevant European cybersecurity regulations.

Depending on customer requirements, its digital solutions can operate through on-premises or cloud-based systems. For cloud applications, selected machine data is processed and transmitted while sensitive manufacturing knowledge remains within the company.

At NexGeM 2027, GROB-WERKE plans to showcase its Grob-Net4Industry digital solutions and Cosera manufacturing execution system (MES), demonstrating how connected manufacturing technologies can support production management.

Building a More Competitive Metalworking Industry

For manufacturers planning their digital transformation, the central challenge is not simply adopting new technologies but ensuring that these investments deliver measurable operational improvements.

By connecting machines, integrating production information and applying AI-driven analysis, metalworking companies can create more efficient and adaptable production environments.

NexGeM 2027 will provide a platform for exploring practical digitalization strategies, particularly for manufacturers seeking to modernize existing facilities and improve their competitiveness.