Fraunhofer Institute for Material Flow and Logistics IMLDigitalization has permeated almost all areas of life in recent years and presents new challenges and opportunities for the skilled trade sector. At a time when efficiency, flexibility, and customer focus are crucial to the success of a business, digital transformation offers skilled trade businesses the opportunity to optimize their processes, develop innovative business models, and improve cross-trade and cross-actor collaboration.
Digitalization in the skilled trades
Digitalization in the skilled trades: A step towards the future
Digitalization in skilled trade is not just a trend, but a necessity in meeting the challenges of the modern economy and the customer's demands. Many skilled trade businesses face the challenge of improving their processes while simultaneously satisfying the increasing expectations placed upon them by their customers. Digital solutions offer the opportunity to simplify workflows, improve communication, and increase efficiency. By using order processing software, digital communication tools, and modern planning tools, skilled trade businesses can not only optimize their internal processes but also increase customer satisfaction. The integration of innovative technologies and solutions is therefore a decisive factor for competitiveness in the skilled trade sector.
Together with various craft and trade businesses, we have carried out research projects on the digitalization of the skilled trade sector in recent years. Among other things, we developed a digital service platform, adapted the use of chatbots and augmented reality to the skilled trade sector, and tested digital solutions in everyday operations.
We support you in the digitalization of processes in your skilled trade and crafts business. Our approach includes a holistic view and analysis of processes, technology consulting and selection, and the development of innovative solutions to ensure the long-term digitalization of your business.
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We are specialists in the field of digitalization and can help you realize your individual project.
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Comprehensive support for digitalization of the skilled trade industry
The services listed are based on our researchers' extensive experience working with small and medium-sized companies and have already been used in various sectors, such as painting and interior design, plumbing, heating, and air conditioning, as well as electrical work:
- Independent and neutral digitalization check for trade and craft businesses
- Customized innovation guide: tech assessment for each trade, prioritization, business case, roadmap including qualifications and technical requirements
- Inclusion of skilled craft and trade organizations and businesses in research projects
- Planning and sizing of digital trade campuses
- Conceptualization of possible applications of AI (especially chatbots)
- Conceptualization of the use of augmented reality in skilled trades
- Optimization of materials management, e.g., using efficient warehouse technology and resource management
- Coaching & Enablement: train-the-trainer, support with selection, pilot testing, and rollout
Digitalization in skilled trades: opportunities and advantages
Simplifying procedures
The individual steps involved in completing a job in the skilled trades often do not align well with each other. Office tasks and documentation processes rely on the same data, from collecting customer and order information over the phone to preparing proposals and invoicing for the tax advisor. Analog processes and different software solutions result in duplicated efforts and delays. Digital order processing can significantly simplify these processes, along with all verification and documentation requirements.
Improved Collaboration with Each Other and Others
Customer expectations towards skilled trade and craft businesses are changing. Many customers, especially younger ones, prefer communication via messenger and are keen to receive updates on the status of their orders at all times. Coordination processes between different contractors on construction sites are also often inadequate, resulting in time losses. Unnecessary trips and delays can be avoided if information is exchanged digitally.
Competitive advantage during the shortage of specialists
Digitalization can be a competitive advantage when faced with a shortage of specialists. Younger, technologically adept specialists often show great enthusiasm for digitalized companies. A good market position can not only promote operational success but also increase the attractiveness of a company as a training provider and employer.
Understanding unfamiliar workflows and changes to work processes
Digitalization promotes transparency and mutual understanding between departments. In the “Athene 4.0” project, the digital depiction of processes made it possible to visualize the work of various groups, which resulted in the optimization of workflows.
“Digitalization in the skilled trade sector not only offers opportunities for greater efficiency but also requires companies to rethink their work processes to fully utilize their potential. We support companies in this process of rethinking and digital transformation!”
- Dipl.-Logist. Michael Lücker, Research Scientist in the field of digitalization and skilled trades at Fraunhofer IML
Four challenges for digitalization in the skilled trades sector
New workflows and requirements
Digitalization offers advantages but can disrupt business processes if not enough time is scheduled for the transition. Changes in workflows often require new types of expertise, which can place additional strain on employees.
Reservations
New developments are often met with resistance, as many employees and general management are wary and express reservations about a lack of resources and suitable software solutions. Employees who are less technologically adept are often particularly reluctant to embrace new technologies.
Aligning perspectives in software development
In software development, different mindsets and vocabulary can lead to software not meeting operational requirements. Regular testing and adjustments are necessary to ensure that employees receive the necessary data.
Software interfaces
Interface compatibility is a key issue, as companies often want to keep their current software. New solutions must be compatible with existing programs, which brings organizational challenges and should be considered at the time of purchase.
Digital solutions for the digitalization of skilled trades
Innovative technologies play a crucial role in the digitalization of skilled trades by modernizing traditional workflows and improving collaboration between skilled trade and craft businesses, customers, and suppliers.
- Cloud-Computing: Enables access to data and applications from anywhere and promotes collaboration.
- Mobile apps: Support businesses with order management, communication, and documentation on site.
- IoT (internet of things): Connects devices and machines to collect and analyze data in real time.
- BIM (Building Information Modeling): Digital planning and administration of construction projects, enabling better collaboration
- Augmented Reality (AR): Supports the visualization of projects and the training of employees.
- 3D printing: Enables rapid production of prototypes and components directly on site.
- Artificial intelligence (AI): Optimizes processes through data analysis and automation of everyday tasks.
- Chatbots: Customers expect quick responses 24/7, inquiries must be verified, and appointments must be made immediately—all of which takes time and resources. Custom chatbots provide a solution.
- Digital platforms: Connect craft businesses with customers and suppliers for more efficient order processing.
- E-learning: Offers training and continuing education for employees to promote digital skills.
We are digitalizing the skilled crafts: Our references
Digital service platform for skilled crafts
As part of the “Athene 4.0” research project, a digital service platform was developed that supports order processing from order reception to invoicing.
Digital technologies for the skilled trades
The aim of the MINERVA project (Skilled Trades 4.0: digital and innovative) is to promote the development and use of customized, innovative digital technologies in the skilled trades so that companies in this sector can offer new types of skilled trade services.
Eco-economic transformation through skilled trades
The GreenCraft project is developing a digital, AI-supported platform that connects craft businesses with private and commercial customers, architectural firms, and funding agencies in order to efficiently implement environmentally friendly projects.
Optimize processes and leverage the opportunities of digitalization – with our expertise!
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Understanding digitalization in skilled crafts: 3 questions and answers
Why is digitalization important in the skilled crafts sector?
Digitalization in the skilled crafts is crucial for enhancing the efficiency and quality of workflows. Digital solutions simplify order processing, improve communication, and boost customer satisfaction.
Younger customers in particular expect modern, digital communication channels. In addition, digitalization can help combat the shortage of specialists, as technologically adept professionals often prefer a digital workplace.
What challenges does digitalization pose for the skilled trades?
Small craft businesses tend to be hesitant when it comes to digital technologies. Challenges include digital expertise, fear of surveillance, and skepticism toward new technologies.
In addition, insufficient resources and the lack of clear benefits offered by digital solutions can act as barriers. It is important that digital solutions are practical and beneficial for everyday operations.
How can craft businesses successfully implement digitalization?
In order to successfully achieve digitalization, craft and trade businesses should offer targeted training measures for their employees to promote digital expertise.
Close cooperation between the craft and trade sector, science, and software development is also crucial for developing customized solutions. In addition, the needs of employees and customers should be placed at the center of attention in an effort to promote their acceptance and commitment.