( CNN ) -- Germany 's industrial sector is known for its efficiency . Its automotive industry is among the most successful in Europe , and stands as the third largest in the world . But with an aging population , the country is struggling to meet the demand for a skilled workforce which can continue to propel manufacturing forward . Cue the `` Factory of the Future '' , a 17,000 square foot innovation hub in the city of Chemnitz where researchers experiment with new technologies and machinery in a bid to improve the production process . Developed by scientists at Fraunhofer Institute for Machine Tools and Forming Technology in Saxony , the factory is particularly committed to rethinking the role of humans in manufacturing lines . `` The processes we are developing today are so much more complex , '' says Professor Dirk Landgrebe , director of the institute . `` The machines and resources are so much more sophisticated that we will need qualified people to handle these processes in the future , '' he adds . Virtual training . To ensure future workers are fully prepared , the lab has created a state of the art virtual environment where potential employees can test out the new technologies and intelligent systems that are set to form the building blocks of German industry . Employees enter a 3D room which can take on the appearance of a factory or even a piece of equipment . By using a controller , the advanced technology detects head motion , adapts to movement and changes the user 's view accordingly . Funding innovation . Fraunhofer Institute , the brains of the `` Factory of the Future '' operation , is part of the 70 institutions committed to researching and developing new ways to enhance Germany 's industrial landscape . The German government is also involved in funding work that will eventually form the infrastructure of German production . `` Our task at Fraunhofer is to bring as much of our research as possible straight into industrial production , '' says Matthia Putz , director at Fraunhofer Institute . `` We do n't focus on reports , we develop new products and new technologies together with industrial partners , '' he adds . Germany 's manufacturing industry has long held the standard for innovation , and even though it has faced challenges , it looks like `` The Factory of the Future '' may keep the country from losing its edge .
Germany 's industry is among the most successful in Europe . However , the aging population struggles to meet the demand for workforce . The country has a very low birth rate and an extremely high death rate ( about 1 / 1000 people ).