The research study examined Industry 4.0, the Internet of Things (IoT) and the state of implementation of these two concepts in the Slovenian timber industry, with an emphasis on smart factories and smart, innovative products (smart furniture, smart house/home, etc.). In the empirical part of the research, we prepared a survey and interviewed selected managers and directors of Slovenian timber companies. The results show that more than half of the surveyed companies (57%) are already implementing the Industry 4.0 concept in their businesses, while the rest are beginners when speaking about digitalisation. The biggest obstacles to the implementation of the concept in business are the high investments needed in the equipment and the lack of financal support from the state. The lack of digital competences, which is especially prevalent among older workers, is another major barrier that businesses face. Among the elements of smart factories, most companies use advanced materials (28%), while fewer (around 10%) use intelligent control systems and smart mechatronic tools. Another fact is that only 15% of the surveyed companies are engaged in the production of smart products. We can conclude that digitalisation in the Slovenian timber industry is still at a relatively low level.
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