Daegu Chamber of Commerce and Industry Surveys 301 Companies
"Customized Support Measures Needed"
The Daegu Chamber of Commerce and Industry (Chairperson Park Yunkyung) conducted a survey on the current status and difficulties of digital transformation (Digital Transformation, DX) among local manufacturing companies on the 16th, as part of efforts to enhance corporate productivity and work efficiency.
According to the results of a survey and interviews conducted with 301 manufacturing companies in the Daegu region from the 4th to the 15th, only one out of four local manufacturing companies is currently pursuing digital transformation.
By company size, the larger the sales, the higher the proportion of companies pursuing digital transformation. In particular, 70% of companies with annual sales of 100 billion KRW or more are implementing digital transformation, while only 18.8% of companies with less than 100 billion KRW in sales are doing so, indicating that small and medium-sized enterprises are lagging behind in digital transformation efforts.
The main reasons for not pursuing digital transformation (multiple responses allowed) were: "It is difficult to implement digital transformation due to the nature of the industry" (56.7%), followed by "The cost burden is too high" (41.8%), "Lack of specialized personnel" (26.9%), and "Uncertainty about the effectiveness after digital transformation" (23.1%).
Among companies implementing digital transformation, 62.8% are at the "introduction stage," 27.9% at the "initial stage," and 9.3% at the "expansion stage," with no companies yet having reached the "advanced stage."
Regarding the fields of digital transformation (multiple responses allowed), manufacturing and production accounted for the highest proportion at 83.7%, followed by finance and accounting (44.2%), and logistics and distribution (14.0%).
As for the purposes of digital transformation (multiple responses allowed), most companies (95.3%) cited "improving work efficiency," followed by "increasing productivity" (58.1%) and "cost reduction" (14.0%).
- The main difficulties encountered during digital transformation (multiple responses allowed) were "high initial investment costs" (72.1%), followed by "compatibility issues with existing systems" (48.8%), and "lack of technical capabilities" (44.2%).
Regarding the support needed from the government (multiple responses allowed), "financial support and subsidies for digital transformation" was the most common response at 83.3%, followed by "consulting support for digital transformation" (29.6%), "financial and tax support" (25.3%), and "support for integration and linkage solutions between existing systems and new technologies" (23.5%).
Company A, a packaging machinery manufacturer, stated, "Due to the characteristics of our industry, digital transformation is not easy. There are too many types of models that change frequently, making it difficult to establish production lines. Currently, assembly is done manually, and since it is hard to hire young workers, we are retaining older employees even after retirement. For now, securing a stable workforce is more urgent than digital transformation," expressing practical difficulties.
Company B, a manufacturer of temporary construction products, said, "For companies that mass-produce standardized products, digital transformation such as smart factories is easy and effective, but for companies producing a small quantity of various products, there are limits to automation," calling for support tailored to the manufacturing field.
Company C, a ship engine parts manufacturer, emphasized, "We are pursuing digital transformation led by an external consulting firm, but progress is slow due to the lack of specialized personnel in-house. Digital transformation training for employees of small and medium-sized enterprises is essential."
Lee Sanggil, Executive Vice Chairman of the Daegu Chamber of Commerce and Industry, said, "To maximize the efficiency of digital transformation, it is necessary to first analyze the potential for digital transformation for each company. Based on this, customized support measures should be developed for individual companies."
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