The Industrial Sector is traditionally the most important sector of the Slovak Economy and one of the main contributors to its GDP. Over the past decades, the Automotive segment has become the most dynamically developing segment within this sector globally with high potential to continue in this trajectory of development. This unique sector has found favorable conditions for rapid development in the Central European region and has contributed significantly to the successful growth of national economies in this area.
The Automotive segment is a main pillar of the Slovak Economy. It generates 13% of the Slovak GDP, with almost two hundred vehicles produced per thousand inhabitants. It creates up to 35% of the industrial export of Slovakia and employs about 154 000 people. Slovakia has high potential to become a new leader in the field of modern and environmentally friendly drives and other technologies, which are increasingly penetrating this segment, thanks to the substantial development of the Automotive segment in combination with Slovakia’s unique geographical location.
Besides the most substantial Automotive segment, the other segments such as Mechanical Engineering, Electro-Technical and Chemical ones, play essential roles in the industrial production of Slovakia. While Slovakia has been even recently perceived rather as an assembly line for cars, machinery or electrical products, the influx of new trends and technologies into this sector motivates existing and new investors to focus more on establishing operations with higher added value.
Amrop Jenewein, with more than thirty years of tradition not only in Executive Search but also in a broad spectrum of other services of the Jenewein Group, has a long-lasting partnership with many significant Slovak and global companies in the Industrial sector, including a substantial portion of clients in Automotive manufacturing. We clearly understand that currently this segment dominates penetration of the new technology, starting from more eco-friendly drives and materials related to environmental sustainability, automated driving, safety, digitization, and the creation of internet-connected cars as a place for work and entertainment.
Need for New Leaders
The influx of new trends, production processes, materials, and technologies into the Industry also brings significant challenges to human capital. Particularly, a substantial shift from traditional and less sophisticated sets of competencies, experience, and skills required from leaders in this field towards new and more complex ones, creates higher pressure on the identification of the best leaders on the market and young talents with a strong potential to fill critical roles.
Important: At Amrop Jenewein, we are well aware that the new leaders, for example in the Automotive segment, must have a broad overview within new technologies that penetrate automotive from various areas, as well as in automation, digitization, and robotization of processes in the car production, including excellent orientation in Industry 4.0.topics. Additionally, they have to face challenges of still more rapidly changing market environment and a phenomenon called VUCA WORLD.
The Entry of New Segments
The new forms of more ecological drives, such as electricity or hydrogen-based, will have a significant impact on the emergence of the latest cutting-edge development and design centers for auto manufacturers. These centers will create jobs with higher added value requiring not only highly specialized professionals but also adequate leaders for senior management positions.
From Traditional to New
Due to increasing penetration of the latest technologies from other sectors into the Industry, particularly into the Automotive segment, the car manufacturers and their suppliers must be prepared for an overall change in their strategy and traditional practices. Companies across all industries must undergo and handle well transition from conventional and well-established methods to the new principles of leadership and functioning. It will require the identification of the new talented leaders within existing structures, who are ready for such changes and attraction of the unique talents from other areas. There will be strong demand, especially for people with high potential for successful adaptation across various segments and for implementation of the new trends, changes, and shaping of the whole Industry.
Change in Employment Structure
If we take a closer look at the Automotive segment, the gradual shift from traditional drives based on the combustion of fossil-based fuels to the new alternative types of propulsion will also significantly affect the employment structure. Modern electric vehicles consist of a considerably smaller number of components; therefore, as recent studies predict, probably 30% of people will lose their jobs or will need requalification. The gradual application of automation and robotics into production processes may further increase this figure also in other industries. It is one of the significant challenges that the Industrial sector must consider seriously, too.
Amrop Jenewein has a team of experienced professionals with a long-lasting focus on projects across all industries, who closely monitor trends and development in this area, and closely working with industry leaders supporting them in the development of the new approaches and strategies and helping them to be successful and competitive on the current market