Digitalization and Adoption of Industry 4.0 in Engineer-to-order Small and Medium-sized Manufacturing Companies: An Empirical Analysis

Industry 4.0 marks a significant shift in manufacturing practices, deeply influencing small and medium-sized enterprises (SMEs) in the engineer-to-order (ETO) sector. This study delves into the impact of digitalization and Industry 4.0 adoption in ETO SMEs, specifically within control cabinet manufacturing. A web-based survey was conducted to explore perceptions of digitalization, perceived advantages, and implementation obstacles of 14.0. Results indicate that ETO SMEs generally perceive digitalization as an opportunity for growth and transformation, expecting notable benefits such as increased efficiency, improved data management, and enhanced product quality. Yet, the study also identified obstacles such as high costs, lack of technical expertise, and cybersecurity concerns. This paper underscores the transformative potential of digitalization and I4.0 within the ETO manufacturing sector, stressing the need for comprehensive support systems and educational initiatives to help SMEs navigate the digital transition, enhance their competitiveness, and ensure their sustain ability in the I4.0 era.