ECONOMIC IMPACTS OF TECHNIQUE SUBSTITUTION IN CHEMISTRY DUE TO INDUSTRY 4.0

Abstract

The paper analyzes corporate economic effects caused by the substitution of labour by a technique. This kind of substitution is the main phenomenon of Industry 4.0. There is a lack of evidence that the economic benefits of Industry 4.0 outweigh the costs incurred. The paper proves if the initiative Industry 4.0 has positive impacts on corporate performance and if the opposite substitution (increasing importance of labor) does not lead to negative consequences on business results. Financial ratios focused on partial costs are employed to analyse traditional business financial data. The computed cost structure and development are summarized and evaluated by descriptive statistics and the effects of substitution are visualized applying the regression analysis. The chemical companies present a less significant effect of coming Industry 4.0 on the corporate performance than the logistic companies. The general development of the chemical industry was opposite and increasing importance of labour led to the lower level of performance in many cases. Such results could indicate the warnings of late implementation of Industry 4.0 in companies.