Laboratories and workshops in European SMEs: how to face the future between innovation and competitiveness

Mateo Manuel Mollá

Jul 1, 2025

Small factory owner, overlooking machinery

Small industrial workshops are the unsung heroes of Europe's manufacturing economy. From precision machining in the German countryside to adaptive prototyping labs in Northern Italy, these agile businesses fuel regional supply chains, specialized manufacturing, and innovation.

At Freutek, we've had the opportunity to work closely with dozens of these companies across Europe. Whether helping a family-run carpentry business grow with new automation solutions or assisting a machine shop in modernizing its welding processes, we've learned one truth: the future belongs to those who can adapt.

🔄 Digital Transformation: from Optional to Essential

The fourth industrial revolution has arrived, and even the smallest operators are jumping on board. Artificial intelligence, IoT, and augmented reality are no longer futuristic buzzwords—they're becoming part of everyday operations in artisanal workshops.

Artificial intelligence (AI) helps predict machine maintenance and optimize production schedules, even in small-unit configurations [1].
IoT integration also allows a simple CNC router to send data to a central dashboard—great for reducing waste and monitoring performance [1]
Augmented reality (AR) is used for training and diagnostics. At Freutek, we have pioneered AR overlays for machine setup, helping customers accelerate the onboarding of new staff [1].

📈 Resilience in an Uncertain Economy

Small-scale industrial enterprises have demonstrated their value during the pandemic, adapting to changes faster than large companies. According to the European Commission's SME Review 2024 , SMEs have outperformed large companies in job creation and adaptability across industrial ecosystems [2].

And it's not just resilience—it's also growth. The PMI Annual Report 2024/25 forecasts a 1.6% increase in real value added and a 0.9% increase in employment in the SME sector in 2025 [2]. Encouraging numbers for those investing in this sector.

We see this at Freutek too. Demand from small and medium-sized laboratories and workshops is growing rapidly—not just for machinery, but also for training, remote support, and scalable solutions.

🌱 Sustainability as a Competitive Advantage

The European Green Deal and national regulations are pushing all sectors toward sustainability. For small workshops, this shift represents both a challenge and an opportunity.

Energy-saving machinery not only reduces environmental impact, but also saves money in the long run. We often advise our customers to replace old pneumatic systems with new-generation compressors [3].
Digital tools help reduce inventory waste by improving planning accuracy [4].
Circular economy practices such as remanufacturing or recycling of components are becoming the norm [4].

Freutek is also adapting: we have registered on OPENES to monitor our sustainability performance.

🧱 The Real Challenge: How to Overcome the Most Common Obstacles?

Transforming a craft workshop or small workshop isn't easy—but it's possible. Here are three areas where we often see challenges, which can become levers for improvement:

Skills Gap – New technologies require new skills. Labs need support in training—not just in use, but also in digital thinking [5].
Capital Investment – Even if the ROI is good, the initial investment in machinery or digital tools may seem risky for small businesses [5].
Regulatory pressure – Even well-intentioned laws can be complex. Navigating CE marking, energy efficiency standards, and data regulations is not always easy [5].

And that's where partnerships come in. At Freutek, we don't just sell machinery—we seek to be a partner in planning, compliance, and long-term support.

🚀 Opportunities: Concrete Actions to Stay Ahead

To compete tomorrow, workshops can take action today. Here are some of the most effective strategies we've observed:

Start with scalable solutions – For example, our laser markers can be upgraded with accessories either at purchase or later.
Investing in digital expertise – Even a simple CRM or ERP system can significantly improve planning and tracking.
Collaborate locally – Some of the most successful labs we've worked with collaborate with technical schools, associations, or take advantage of digitalization calls.

💬 Final Thoughts: A Future Built on Agility

Europe's industrial future lies not only in large factories or automated logistics centers—but also in smart, specialized, and capable workplaces scattered across cities and provinces. These companies are resilient, inventive, and ready for change.

At Freutek , we believe in their future. That's why we focus not just on selling machinery, but on building relationships , offering transparent support , and making advanced technology accessible to companies of all sizes.

🔗 Find out more

Ready to take your small to medium-sized business to the next level? Visit our website www.freutek.com to discover solutions designed for small and medium-sized industries.