Automatization and Digitalization are keywords regarding innovative assembly of Smart Factories. Despite all, no Smart Factory is able to produce completely without blue color workers. To stay competitive in the global world companies they need to find the balance to hire only as less employees as possible to guarantee all assembly processes. Therefore, Labor Efficiency is the key figure to control attendance and output. This article explains the role of labor efficiency with regards to the Smart Factory. For this purpose, the input factors attendance and output are explained and illustrated by practical examples. Moreover, it explains how labor efficiency can influence competitiveness positively.