Industry 5.0: What's Next for Manufacturing?

Technology and industry are continually evolving. Just as businesses are getting accustomed to smart manufacturing, machine learning, and big data analytics, a new revolution is emerging: Industry 5.0.

This latest phase builds on the previous four industrial revolutions, but with a more collaborative and human-centered approach that brings tremendous benefits to workers.

What is Industry 5.0?

Also known as the Fifth Industrial Revolution, Industry 5.0 is the newest phase in industrialization. It emphasizes continual process improvement and humans and robots working together for increased productivity.

It's much more people-centric than the first four revolutions, which focused on mechanization, mass production, automation, and digital transformation (through the internet and artificial intelligence).

The arrival of 5.0 feels rushed and abrupt. Businesses are just getting used to artificial intelligence and the Internet of Things (IoT)—some haven't even begun implementation—and now the next big thing is here?

Industry 4.0 and Industry 5.0: Two Side-by-Side Revolutions

They're both here now: Industry 4.0 and Industry 5.0. It's two revolutions unfolding side by side.

Businesses are now focusing on smart automation and the interconnectivity of machines and systems using advanced computing, IoT, and AI—all Industry 4.0 related—but they are also integrating more personalization, human-guided strategy, and human collaboration with machines.

Not only are these revolutions taking place at the same time, they're complementary. As companies and societies continue to adopt and integrate technologies from Industry 4.0, the principles of Industry 5.0 are being applied to make sure that these advancements align with human values and sustainability goals.

This concurrent evolution provides an even-handed approach. Organizations must consider the ethical and environmental considerations of their operations, not merely profits alone. Increasingly, businesses are being compelled to adopt and act upon social responsibility charters.

Industry 5.0 Advantages and Disadvantages

Shifting our focus specifically to Industry 5.0, this revolution comes with its own set of advantages and disadvantages.

Advantages

• Greater Personalization for Consumers: Increasing availability of custom and make-to-order products and services such as custom-colored sneakers or a medical app that monitors a user's health and makes personalized fitness recommendations.
• Higher-value Jobs: With automation, humans can focus on product and process improvement and high-level strategy instead of repetitive manual tasks in the production process.
• Automation Feedback Loop: Consumers and end users can provide a constant stream of feedback for added value and improved products and services.
• Accountability: Demand for increased traceability and sustainability means businesses must be more transparent and agile in practices that benefit people and planet.

Disadvantages

• Business Shift: Not all organizations have the needed resilience to adopt and apply Industry 5.0 practices. Many companies will lag behind and risk obsolescence.
• Reliance on Industry 4.0: While organizations do not need to have fully realized Industry 4.0 before they can begin adopting 5.0 practices, a solid foundation is vital. People and smart machines can't efficiently collaborate if the business hasn't first digitized.

Core Tenets of Industry 5.0

Summing up the last couple of sections, three core tenets underpin Industry 5.0:

1. Human-centricity: Shifting to a people-first way of doing things instead of a company-first mentality.
2. Resilience: Focus on developing resilience to pivot and flex during challenging times for the organization.
3. Sustainability: Active pursuit of "Net Positive" goals. These are goals that go beyond lip service or only making small changes that do not meaningfully reduce environmental impact. Rather, companies must adopt practices that create no further harm and actively improve the well-being of planet and people.

Use Cases: How Businesses Are Using Industry 5.0

Many companies around the globe are using Industry 5.0 to enhance business and people processes. Let's look at some examples of how various businesses are deploying this advanced technology.

Epicor and Industry 5.0: Leading the Way in Modern Manufacturing

Epicor is at the forefront of Industry 5.0 as it integrates sustainable, human-centric technologies that enhance manufacturing processes and enterprise resource planning (ERP).

• Epicor Kinetic: Designed to streamline manufacturing operations with intuitive interfaces and personalized dashboards, enhancing productivity and job satisfaction.
• Sustainability and Circular Economy: Epicor promotes sustainable manufacturing and circular economy principles, focusing on efficient resource management, waste reduction, and energy conservation.
• Resilience through Epicor Data Analytics (EDA): Provides real-time insights (to the millisecond) and predictive analytics, helping manufacturers anticipate and adapt to any disruptions.
• Supporting People: Employee empowerment through continuous training programs to upskill workers to maintain morale, retention, and marketability as they gain skills that complement advanced digital technologies in the manufacturing and industrial sectors.

Through these initiatives, Epicor demonstrates how businesses can use Industry 5.0 to improve productivity and sustainability.

Industry 5.0 is already being embraced by businesses worldwide, focusing on integrating advanced technologies with human-centric and sustainable approaches.

ArcelorMittal: Enhancing Worker Productivity with the 5G Steel Project

ArcelorMittal France has launched the "5G Steel" project in collaboration with Orange Business Services and Ericsson. This initiative is part of the French government's France Relance economic revival plan and deploys one of the largest 4G/5G networks in an industrial setting. It aims to enhance efficiency and worker productivity at the Dunkerque site.

• Operator Connectivity: Workers use tablets for the quicker and more intuitive collection, entry, and sharing of data during maintenance operations, safety audits, and tagout procedures.
• Enhanced Steel Recycling: Continuous, real-time data transmission on steel composition has significantly improved recycling initiatives.

The 5G Steel project aims to enhance and digitize the industrial ecosystem in France and the broader European Union, focusing on extensive coverage, high speed, low latency, and robust data security to support the digital modernization of industrial processes.

McMillan Electric: Advancing Data Management in Manufacturing

McMillan Electric, based in Woodville, Wisconsin, has leveraged advanced Epicor solutions to modernize company operations and boost overall efficiency. Transitioning from a legacy ERP system to Epicor Kinetic in May 2021, McMillan aimed to streamline processes and improve data management, aligning with Industry 5.0 principles.

• Human-Centric Technology: Epicor Kinetic and Epicor Financial Planning & Analysis (FP&A) have provided McMillan with user-friendly tools that integrate seamlessly with their existing workflows. This enhances employee productivity and job satisfaction, embodying the human-centric approach of Industry 5.0.
• Improved Forecasting: The adoption of Epicor FP&A has enabled McMillan to maintain and enhance its sales budget summary system, crucial for accurate forecasting and reporting, showcasing the efficiency improvements.
• Empowered Workforce: The intuitive Excel-based interface of Epicor FP&A allows employees to easily access and analyze data in a familiar platform for a more efficient and engaged workforce.

Through these initiatives, McMillan Electric demonstrates how advanced technology and a human-centric approach can drive productivity and operational improvements, fully embracing the pillars of Industry 5.0. Read more about McMillan Electric’s transformation.

Universal Robots: “Friendly” Robots that Work with Humans

Universal Robots is a company that designs and manufactures collaborative robots (cobots) to work alongside humans in various industrial applications, including construction and industrial settings.

These cobots are designed to increase efficiency, productivity, and worker safety—in addition to driving tremendous economic value for businesses.

• Cobots: Universal Robots specializes in cobots that are smaller, more flexible, and easier to reprogram than traditional robots. These cobots are ideal for various applications, such as machine tending, welding, packaging, and palletizing, making them a practical choice.
• Ease of Use and Flexibility: Cobots from Universal Robots can be quickly reconfigured for different tasks, addressing the need for high-mix, low-volume production without extensive downtime for reprogramming.
• Improving Efficiency: Cobots can handle repetitive and physically demanding tasks, allowing human workers to focus on higher-value activities. This not only improves productivity but also addresses labor shortages by creating safer and more attractive working conditions.
• Enhanced Worker Safety and Productivity: Cobots improve workplace safety by performing hazardous tasks. Additionally, they are equipped with sensors to ensure safe interactions with humans and physical objects.
• Training and Development: Universal Robots offers training programs to upskill workers in operating cobots and other jobs, enhancing workforce efficiency and job satisfaction.

Embracing Industry 5.0 and the Future of Manufacturing

As Industry 5.0 unfolds, it represents more than just another phase in the evolution of the manufacturing industry. It's a far broader concept that represents a human-first or human-centric approach to business strategy, resource efficiency, and production processes.

By embracing the collaborative potential of humans and machines—rather than viewing robots as job competition—manufacturers can uncover new levels of innovation, sustainability, and creativity, along with heightened employee job satisfaction.

Moving forward, it's not a question of if a business or industry can benefit from Industry 5.0 but how they can best leverage these advancements. Every day, Epicor helps businesses make the transition. Talk to a rep about your company's custom playbook for success, and ideas you can implement starting today. Let's chat.

Christine Hansen

Director, Product Marketing

Christine Hansen serves as the Director of Product Marketing at Epicor, where she applies over 20 years of industry expertise to drive inventive solutions for the manufacturing sector. She holds BAs in Spanish and business administration from Augustana College (SD) and is based in Minneapolis, MN.

Read More by Christine Hansen