January 20, 2025
For well over a decade, manufacturing technology developers have focused on digitally powering the creation of smart, integrated factories and operations. Industry 4.0, or the Fourth Industrial Revolution, introduced several key technologies, including artificial intelligence (AI), big data and data analytics, the Internet of Things (IoT), and additive manufacturing.
Industry 5.0, the Fifth Industrial Revolution, was introduced in 2021 and builds upon the evolutionary advantages of Industry 4.0 by establishing principles that ensure manufacturing production prioritizes the welfare of workers and the planet by focusing on human well-being and sustainability.
Understanding Industry 5.0
The key principles of Industry 5.0 include human-centricity, sustainability, and resilience. According to an article published by The Journal of Cloud Computing, Industry 5.0 is "marked by a determination that is more than just manufacturing goods for profit.” It includes advanced technologies that prioritize the empowerment of people while focusing on environmentally conscious practices.
Companies that value human worker skills, creativity, and well-being respect the principle of human-centricity. These companies support and encourage the design of new technologies that enhance human capabilities rather than replace them. Systems that are also designed to be flexible and adapt easily to disruptions, market changes, and other unexpected events, support the principle of resilience.
The principle of sustainability focuses less on the well-being of workers and flexible technologies and more on integrating environmentally friendly practices into production processes and minimizing resource consumption. It also prioritizes circular economy principles by keeping products in use for as long as possible and eliminating waste and pollution.
The Role of Humans in Industry 5.0
Optimizing how humans interact with technology is a core premise of Industry 5.0. Despite how intelligent technologies become, human ingenuity and engagement will always play a vital role in ensuring support for the key principles discussed above and in meeting new challenges that arise in the future.
Will Quinn, Global Director, Strategy Infor Warehouse Management, explains in an article published in Direct Industry, “By thinking of AI as a means of empowering employees and turbocharging their productivity, rather than as a low-cost alternative for low-value tasks, manufacturers will be able to solve some of their most intractable challenges.”
Quinn explains that human employees contribute adaptive, creative, and problem-solving skills, while AI models and robotics bring speed and precision to the task. This combination helps solve labor shortage issues while enhancing job satisfaction, increasing productivity, and drastically reducing production errors. Human employees also benefit from a safer working environment since robots can perform physically demanding or potentially dangerous tasks.
Enhancing Workforce Skills for Industry 5.0
Before many manufacturing workers can add value to this new human-AI collaboration, they must develop new skills to leverage digital tools and platforms and adopt a learning mindset that helps them keep pace with rapid technological advancements. Digital skills are critical to working with advanced technologies, mechanical engineering and design skills are required to operate complex equipment, and data analysis skills are necessary to optimize production processes. Enhancing employees’ soft skills, such as problem-solving, communication, collaboration, and project and team management, is also critical in the Industry 5.0 era.
Augmented reality (AR) and virtual reality (VR) technologies allow employees to train in real-time. Research suggests that employees using augmented reality and smart glasses can upskill more rapidly, increasing their efficiency, productivity, and job satisfaction. Employees are guided through tasks and have immediate access to manuals and other documentation. VR technologies, which can provide training within controlled and realistic virtual environments, enable more efficient and effective health and safety training and enhance workers' soft skills through virtual character interactions.
Technology Driving Sustainability
According to Manufacturing Today, environmental sustainability has become a key principle of responsible business practices. Economically sound processes minimize adverse environmental impacts and conserve energy and natural resources. The publication lists seven sustainable manufacturing strategies.
- Renewable energy usage to reduce carbon emissions, conserve natural resources, and combat climate change.
- Waste reduction and recycling initiatives lower environmental impact and contribute to a circular economy, which keeps materials and products in use for as long as possible.
- Sustainable supply chains that utilize responsibly sourced raw materials, protect natural habitats, conserve biodiversity, and ensure fair labor practices.
- Energy efficiency and conservation are achieved through investment in energy-efficient technologies and practices to lower the environmental impact of manufacturing activities.
- Sustainable product design supports using recyclable materials sourced sustainably and engineering products for energy efficiency.
- Corporate social responsibility (CSR) demonstrates a commitment to ethical business practices and social well-being through supporting community development, education, and health.
- Innovation in sustainability promotes investment in the innovation of smart new products and solutions that contribute to sustainability.
Benefits of Industry 5.0 for Manufacturers
While the principles of Industry 5.0 may seem to burden manufacturers heavily, the benefits go far beyond solving labor problems, protecting the environment, and making a positive social impact. The advantages gained through Industry 5.0 include cost reductions from streamlining operations, minimizing waste, and getting the most from resources. Being an environmentally conscious company with a mission to improve the well-being of employees reflects positively on a brand’s reputation, leading to more sales, investor support, and improved relationships with customers.
Collaboration between humans and machines can foster creativity and innovation for developing new products and solutions. Using collaborative robots (cobots) that work alongside humans enhances safety and lets workers focus on more complex tasks. Companies that support the idea that technology should empower humans, not replace them, show employees they are valued.
Industry 5.0 Aims for Positive Impacts on Business, People & Planet
By combining the digital transformation accomplishments of Industry 4.0 with the human wellness and sustainability focus of Industry 5.0, manufacturers can positively impact their bottom line while positively impacting communities, the environment, and the planet. However, manufacturers will not realize these benefits without the right cloud technology and integrated management systems. Infor’s Cloudsuite Industrial (CSI) ERP system provides a single platform for connecting all departments, including the production floor and warehouse, enabling analysis of vast amounts of real-time data for 360-degree transparency and facilitating seamless communication between human workers and AI-powered machines.
Guide Technologies executives and professional consultants have helped hundreds of leading manufacturers navigate digital transformation and realize the benefits of social responsibility and human well-being. Ready for a partner to guide your business into Industry 5.0? Schedule a consultation with Guide today.
