FactoryXChange 2.0 secures €5.7 million to future proof Irish manufacturing jobs

FactoryXChange 2.0, led by Irish Manufacturing Research (IMR), has secured €5.7 million in funding from the European Commission and Enterprise Ireland to deliver digital and sustainable manufacturing supports over the next three years. The funding was announced by Peter Burke TD, Minister for Enterprise, Tourism and Employment, and will enable Irish manufacturers and public sector organisations to future-proof their operations through access to advanced digital technologies and expert support.

Ireland’s manufacturing sector faces growing pressure from rising costs, global competition, and the urgent need to embrace digital and green technologies. Companies must adopt artificial intelligence (AI), high-performance computing (HPC), and cybersecurity to stay competitive and relevant.

FactoryXChange (FXC) is Ireland and Europe’s leading catalyst for sustainable, human-centric manufacturing transformation. Led by Irish Manufacturing Research (IMR) and supported by 17 expert partners nationwide, FXC 2.0 has secured 40% funding (€2.3 million) from the European Digital Innovation Hub (EDIH) programme with match funding of 60% (€3.4 million) from Enterprise Ireland to continue their work in helping Irish businesses move from uncertainty to action by offering up to 100% discounted services and tailored support, harnessing advanced technologies in a way that is ethical and sustainable.

Manufacturing is the backbone of the Irish economy. According to the Central Statistics Office (CSO), the sector directly employs more than 220,000 people. It accounts for over 34% of Ireland’s GDP – more than double the European average of 15%. In 2023, goods exports reached €197.25 billion, generating €13.7 billion in wages, €3.03 billion in income tax, and more than €10 billion in corporation tax.

FactoryXChange is coordinated by Karin Jancykova, Senior Programme Manager, IMR and operates through a national network of 17 consortium of partners in digital innovation, AI and robotics. Together, the consortium makes advanced digital tools and expertise accessible to businesses and public sector bodies across Ireland. FXC 1.0 supported over 495 Irish enterprises and public organisations SMEs to become more competitive in their business and production processes through digital transformation.

Speaking about the announcement, Peter Burke TD, Minister for Enterprise, Tourism and Employment, said:

“Extending the European Digital Innovation Hub programme in Ireland into Phase 2 ensures that our SMEs will continue to access world-class digitalisation support. By maintaining this momentum, we are increasing Ireland’s competitiveness and enabling enterprises across Ireland to future-proof their operations. This continued investment reflects our commitment to making advanced digital technologies accessible for every region and sector.”

FXC’s funding application received the highest possible score from the European Commission and was awarded the prestigious STEP – Seal of Excellence. This places FXC among a select group of projects recognised for outstanding quality and impact. The award underlines the consortium’s proven ability to deliver and unlock new opportunities for additional support, ensuring that Ireland remains a leader in sustainable and innovative manufacturing.

FactoryXChange 2.0 will apply the new funding to empower Irish businesses by connecting them with advanced digital technologies, expert advice, and funding to integrate ecological, digital, and societal solutions, thereby fostering sustainable growth and competitiveness. Through a collaborative, one-stop-shop approach, FXC and its 17 partners transform digital innovations into practical, impactful solutions that benefit both society and the economy, particularly focusing on enabling Industry 5.0 factories and accelerating digital transformation.

Manufacturers and public sector organisations can now engage with FactoryXChange 2.0 to access expert support and discounted services and help shape the future of Irish industry.

Avoca Seafood A Digital Transformation and Circular Marine Park Success Story

Avoca Seafood is an early-stage, pre-revenue SME in the Irish aquaculture sector, with a bold vision to develop a Circular Marine Park in Ireland.

Between July and December 2024, FactoryXChange supported Avoca Seafood and its associated parties in exploring this ambitious project, including the preparation of a pre-investment case analysis. The engagement not only helped define the capital requirements but also identified the socio-economic opportunities and digitalisation needs to make the vision feasible. 

Challenges 

Like many SMEs at the beginning of their digital journey, Avoca Seafood faced several challenges. Investments in digital technologies were limited, focusing mainly on administrative tasks, while advanced solutions such as AI, IoT, and automation were not yet in place. Employee digital skills were basic, with little structured training, and many processes remained manual or paper-based. Data management and cybersecurity strategies were still developing, and customer-facing digital tools, including e-commerce and CRM systems, were underutilised. 

Even for more advanced SMEs, similar challenges persist in scaling digitalisation. While staff may already be skilled and mainstream tools widely adopted, gaps remain in integrating advanced technologies, fully automating processes, improving data interoperability, and embedding sustainability into digital strategies. 

Solutions Implemented 

Avoca Seafood took steps to address these challenges. For SMEs at the early stage, the focus was on creating a clear digitalisation plan, allocating resources for IT infrastructure, and involving digital specialists to guide transformation. Mainstream technologies such as ERP and CRM systems were introduced to streamline operations and enhance customer interactions. Training programmes were developed to upskill employees, and initial data management and cybersecurity measures were implemented. 

For the moderately advanced stage, the plan included integrating advanced technologies such as AI and automation to improve productivity and decision-making. Data systems were strengthened to allow real-time access across departments, while green ICT initiatives were prioritised to ensure sustainable operations and reduce environmental impact. 

Results and Benefits 

Even at the early stage, Avoca Seafood began to see tangible benefits. Digital tools streamlined internal processes, reduced operational costs, and created new opportunities for market expansion through e-commerce. Employees became more engaged and confident as they gained new digital skills. 

For more advanced stages, the adoption of data-driven strategies and automation enabled better decision-making and freed employees to focus on higher-value activities. Digitalisation supported the development of innovative, digitally enhanced products and services, and sustainability measures reduced environmental impact while strengthening the company’s reputation. 

Perceived Social and Economic Impact 

The socio-economic impact of Avoca Seafood’s initiative is significant. The Circular Marine Park project is expected to create over 750 direct jobs, with an additional 1,000 to 1,500 positions in subsidiary roles as the facilities become operational. Capital investment in land-based facilities and the park could increase productivity in the Irish aquaculture sector by 850%, potentially generating up to €500 million over the next ten years. 

On a social level, digitalisation and training improved employee confidence, retention, and career development opportunities. Economically, the company is better positioned to compete both domestically and internationally, while sustainability initiatives demonstrate responsibility toward the environment and community. 

Measurable Data 

The impact of digitalisation and business growth can be measured in several ways: 

• Percentage of operations using digital tools 

• Number and type of processes automated 

• Staff participation in digital training and upskilling programmes 

• Customer satisfaction and retention rates 

• Cost savings from digitalised operations 

• Proportion of documents and processes digitised 

• Reductions in paper use, emissions, or energy consumption 

• Cybersecurity incidents prevented 

Lessons Learned 

Do: 

• Invest steadily in both mainstream and advanced digital tools 

• Create and follow a structured digitalisation plan across all departments 

• Provide ongoing training for staff at all levels 

• Involve IT specialists in decision-making 

• Align digitalisation efforts with sustainability and green practices 

• Implement robust cybersecurity measures and data management policies 

Don’t: 

• Delay investments in emerging technologies such as AI and automation 

• Allow digitalisation to remain siloed in administrative functions only 

• Rely on partial or ad hoc automation without a strategy 

• Overlook employee engagement in digital adoption 

• Neglect environmental considerations in IT and operational choices 

Niskus Biotec – Growing a Greener Future Through Digital Transformation

In 2024, Niskus Biotec faced a crossroads. As a biotechnology company rooted in sustainability and innovation, it was already well-regarded for its work in enzyme production and biobased solutions. Yet, despite a strong vision and growing demand from the food and beverage sector, its digital foundations remained underdeveloped.

While basic digital systems were in place, the company hadn’t yet unlocked the real value of digital transformation. The tools existed — but the strategy, skills, and confidence to scale them were still forming.

That’s where FactoryXChange came in.

Starting with the Basics

At the time, Niskus Biotec’s digital maturity hovered around an early baseline. Teams were using mainstream technology, but more advanced tools like ERP systems, AI applications, and integrated data platforms were still out of reach.

Internally, staff were willing — but cautious. There was hesitancy around adopting new tools, a reflection of change resistance that many growing companies face. Training was needed. A data strategy was missing. And while the company had ambitious sustainability goals, its digital capabilities weren’t yet supporting them.

Together with Irish Manufacturing Research (IMR) and the support of FactoryXChange, the company began laying the groundwork for a smarter, greener biotech operation.

Laying the Groundwork

The first phase of transformation focused on what the team needed most: a clear plan, achievable milestones, and cultural buy-in. With guidance from FXC experts, Niskus Biotec began to map out a three-year strategy, broken into manageable stages.

1. Phased Technology Adoption:Rather than overhaul systems all at once, the company opted for a phased rollout. Key digital tools would be introduced in 2025–2026, with pilot projects in ERP and data analytics scheduled for testing in late 2026.

2. Building Confidence through Training:A digital training programme was designed to boost internal confidence and capability, starting with the basics. Over time, this would grow into an internal network of ‘digital champions’—with specialist hires planned for 2026.

3. Changing the Culture:Niskus Biotec recognised that transformation isn’t just about tools—it’s about people. Regular briefings, listening sessions, and leadership involvement helped reduce fear of change and give staff a voice in the journey.

4. Creating a Data-First Mindset:With support from FXC, the company began developing a foundational approach to data: how it’s collected, stored, and used for decision-making. A full data strategy is scheduled for late 2026.

5. Digital Sustainability in Practice:Green procurement and low-impact ICT solutions were added to all new digital projects. This wasn’t an add-on—it was built in from the start.

What’s Happening Now

By mid-2025, the company had already seen progress. Staff engagement around digital was increasing. Basic data collection practices were being implemented. And plans were underway to pilot a new biobased product, expected to generate €2 million in revenue by 2027.

Niskus Biotec has also developed a pilot blockchain system to underpin its valorisation process. This initiative supports traceability and quality assurance for upcycled fermented products — laying the foundations for transparent, high-value supply chains in sustainable biotechnology.

Two new roles in digital biotech are expected to be created. One current staff member will be upskilled into a digital specialist position. Meanwhile, a €600,000 investment into enzyme production upgrades is due to kick off in 2026—with a projected return of €4 million over seven years.

And the environmental gains? The company is targeting a 20% reduction in greenhouse gas emissions through process efficiencies and smarter tech. That’s the equivalent of 4,500 tonnes of CO₂ avoided by 2027.

Lessons from the Journey So Far

“Digital progress is incremental. But when it’s tied to culture, to sustainability, and to real business outcomes—it sticks.”— Niskus Biotec Team Lead

For Niskus Biotec, the digital transformation journey has reinforced three core lessons:

• Start where you are – not where others are.

• People first – change only happens when staff are brought on the journey.

• Partner strategically – working with FactoryXChange and IMR helped de-risk early decisions and shape a roadmap that fits.

Looking to the Future

As pilot partnerships with beverage manufacturers move into development, and onsite biorefineries begin to take shape, Niskus Biotec is carving out a future built on smart technology, sustainable practices, and bio-based innovation.

The goal isn’t to become the most digital company overnight. The goal is to become the most digitally ready to grow—responsibly, sustainably, and confidently.