The geographical distribution of lighthouse factories around the world is broadly consistent with the distribution of manufacturing contributions

KPD202-501  We have observed a growing focus on green transformation in manufacturing, with companies paying more attention to efficiency, automation, decarbonization, and employee well-being. As of last year, there were 153 “lighthouse factories” in the world, 62 of which were in China. Can you share how the “Lighthouse Factory” project was launched? What is the significance of the Lighthouse Factory in the context of the Fourth Industrial Revolution?

Federico Torti: The Lighthouse Factory project started in 2018 and is one of the longest projects we have undertaken at the World Economic Forum. My team, the Center for Advanced Manufacturing and Supply Chain, started out with McKinsey & Company, and now we have eight industry partners who officially support us.

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KPD202-501  Fundamentally, the Lighthouse Factory network is a community of established advanced manufacturers who are deploying digital technologies at scale that also represent the fourth Industrial Revolution, such as artificial intelligence, advanced robotics, or blockchain, which are capable of having a substantial and concrete impact on factory operations.

KPD202-501  We pay particular attention to the financial impact, including the potential for cost reduction or additional revenue arising from the application of advanced technologies; Sustainability is another important evaluation Angle, we also pay special attention to the direct improvement of environmental and sustainability indicators through technology; In addition, we are studying how advanced technology is transforming the workplace and the benefits to workers. Of course, there are many operational metrics that have to do with the way a company works.

The factory is the node of the value chain where we see and learn first-hand how certain technologies are applied throughout the value chain and the transformative power they have. In addition, we also take business managers on our platform to visit these manufacturing plants to see how these benchmark companies actually operate.