Publication date: 
2021/12/10
The National Centre for Industry 4.0 prepared the fourth edition of the Analysis of Czech Industry 4/2021 on the occasion of independent debate of industry leaders - the Barometer of Czech Industry, which took place on 10 December. The survey was conducted in October and November 2021.

The majority of industrial company CEOs (74%) perceive rising energy prices as an incentive to increase investment in more environmentally friendly technologies, and three-fifths (62%) do not consider rising costs in this sector as a barrier to investment in more energy-intensive digitization and automation. Businesses are aware of the prevailing benefits of implementing Industry 4.0.

"Rising energy prices will accelerate the return on these investments along with their profitability," predicts Jiří Rusnok, Governor of the Czech National Bank. "Given the rise in energy prices and the fact that digitization and robotization will lead to increased energy consumption, it will be a good start for companies to produce their own electricity, especially from renewable sources, and if dynamic tariffs are introduced, it would be possible to shift part of the production to night hours," Vladimír Mařík, Vice-Chairman of the Czech Research, Development and Innovation Council and Scientific Director of the Czech Institute of Informatics, Robotics and Cybernetics at Czech Technical University, offers a solution.

"Rising energy prices could paradoxically have a positive effect on the ongoing digitization of industry, especially in the area of energy management. The current extreme gas and electricity prices are predicted to ease after the winter, but companies are certainly already aware that they need to think about their energy intensity and find solutions to reduce it. And new technologies for energy production or smart energy management can no longer do without digital elements. However, the ongoing digitization of production should not be significantly affected by increased energy prices, explains David Navrátil, Chief Economist at Česká spořitelna.

"I am convinced that the current unfavourable trend in energy prices can be an incentive to make the most of the solutions offered by digitization and the wider implementation of P4.0. However, at the same time, it is important to note that if companies face financing problems and are burdened by high interest rates on loans, many of them will put investments in digitization and P4.0 on hold for some time and focus on retaining their customers, production and employees as a priority. We are therefore sceptical that without state support there will be significant progress  in this area with regard to high energy prices," adds Jakub Lichnovský, Partner, PRK Partners, s.r.o.

State support of companies and the expectations associated with the arrival of a new government is an increasingly topical issue in the current situation. What the industry expects most from the government is greater support for technical fields, negotiation of favourable and realistic conditions for the Czech Republic in the Green Deal area, a quality energy strategy, effective use of funds from the National Renewal Fund and greater openness towards foreign workers.

"The government should digitize and modernize the state administration. It should set a smart immigration policy for a drained job market and attract talent to the country. It should modernize primary and secondary education, make universities more competitive and encourage upskilling and reskilling. Other necessary steps include strengthening of the capital market and boosting exports. I have already talked about the Green Deal as an opportunity. Last but not least, the government policy should be firmly based on our membership in the EU and NATO," Petr Jonák, Head of Corporate Affairs & Sustainability, T-Mobile Czech Republic a.s., lists his expectations from the government.

Rising energy prices are just a visible sore point of the missing energy strategy thatshould have been on the table long ago. Therefore, the factors of a quality energy strategy and negotiating realistic conditions for the Czech Republic with the European Commission in the Green Deal area received the second highest rating of the most desirable areas to be addressed by the new government (6.8 and 6.9 points respectively).

"The government should focus primarily on areas such as the stability of public finances, energy strategy, negotiating realistic conditions for Czech industry within the Green Deal, law enforcement, maximum support for vocational education and opening the borders to a greater extent for foreign workers - these are the tasks for the government, not inventing all sorts of direct subsidies or exemptions for selected sectors. The government should fundamentally reduce the administrative complexity of doing business in the Czech Republic," says Antonín Růžička, CEO, WIKOV Industry, a. s.

With regard to the persistent and decades-long shortage of quality workers, CEOs are asking the new government for greater promotion of and support for for practice in useful technical disciplines. On a rating scale of 0 for a measure that is of no importance to industry to 10 for a factor that is absolutely critical to the successful development of Czech industry, CEOs rated the measure of greater promotion of and support for practically useful technical education with 7.3 points.

"I think that what we lack the most is skilled workforce. The current situation is literally catastrophic. I think we need to make changes in the education system and in the presentation of the industry in the public media", says Pavel Sobotka, Frentech Aerospace, Ltd.

"I have watched with concern how the government behaved during the past waves of the pandemic, when it was unable to devise a strategy, an action plan, inform citizens and business people about the planned measures during the 'quiet' months, so that everyone would be prepared for possible scenarios and could adjust their expectations in business, for example. This would not have happened if the principles of Industry 4.0 and digitzsation had been implemented. If entrepreneurs approached the transformation of their companies in this way, we would soon have no entrepreneurs. But we are lucky that digitization in industry and other sectors is gaining momentum and that business owners are approaching this topic more and more responsibly and conceptually," Jaroslav Lískovec, Director of the National Centre for Industry 4.0, assesses the approach of the state and entrepreneurs.