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IteraniumBack to InsightsIndustry 5.0

What Industry 5.0 Actually Asks of Manufacturers, and What It Leaves Unchanged

Vineet Saxena

Vineet Saxena

Industry 5.0 & Smart Manufacturing

March 27, 20257 min read
Industry 5.0Industry 4.0Manufacturing StrategyHuman-CentricResilience
The practical point. Industry 5.0 is not a new wave of technology that replaces Industry 4.0. The European Commission framed it in 2021 as a change of purpose: production that is human-centric, sustainable and resilient [1]. For plant leaders, that changes what we measure and whom we design for. It does not change the physics of the process, or the discipline it takes to run a plant well.

New labels, old plants

Over a long career in industrial automation, the pattern I have seen most often is that the vocabulary of our industry moves faster than the shop floor. Every decade or so a new label arrives, with conferences and white papers attached. Meanwhile the plant keeps running on equipment and practices that were installed one or two labels earlier. That is not a failure. Plants are long-lived capital assets, and the people who run them are right to be cautious about anything that could stop production.

It helps to remember how the layers we rely on today were built. The programmable logic controller (PLC) was conceived in 1968 to give General Motors a simpler, more cost-efficient replacement for hard-wired relay systems, and it went into regular production in November 1969 [2]. Distributed control systems reached the process industries in the mid-1970s, taking over from banks of single-loop pneumatic controllers [3]. In 2000, the International Society of Automation (ISA) approved the first part of ISA-95, a shared model for deciding what information business systems and control systems should exchange [4]. Industry 4.0 was first described in Germany in 2011 [1], and its implementation recommendations were presented in April 2013 [5]. Each step added capability. None of them removed the need for sound maintenance, real process knowledge and well-trained operators.

That is the right lens for Industry 5.0.

What the Commission actually said

In January 2021, the European Commission’s Directorate-General for Research and Innovation published a policy brief titled “Industry 5.0: Towards a sustainable, human-centric and resilient European industry” [1]. Its central definition is worth reading slowly. Industry 5.0, the brief says, “recognises the power of industry to achieve societal goals beyond jobs and growth to become a resilient provider of prosperity, by making production respect the boundaries of our planet and placing the wellbeing of the industry worker at the centre of the production process” [1].

The brief is careful on a point that often gets lost in the retelling. It says that Industry 5.0 “should not be understood as a chronological continuation of, or an alternative to, the existing Industry 4.0 paradigm” [1]. It complements and extends Industry 4.0. Its criticism of Industry 4.0 is measured. Over its first ten years, the brief observes, the concept leaned more on digital technology and artificial intelligence (AI) than on its founding values, focusing “less on the original principles of social fairness and sustainability, and more on digitalisation and AI-driven technologies for increasing the efficiency and flexibility of production” [1].

Here are the three pillars, translated into plant terms:

PillarWhat the brief asksWhat it means in a plant
Human-centricTechnology adapts to the workerDesign jobs and tools with operators
SustainableRespect planetary boundariesTrack energy and waste per good unit
ResilientWithstand disruptionKnow your single points of failure

What it adds

Three things are new, or at least newly explicit.

First, the worker is treated as an investment, not a cost. The brief says so plainly: the worker “is not to be considered as a ‘cost’, but rather as an ‘investment’ position for the company” [1]. It also asks that workers be “closely involved in the design and deployment of new industrial technologies, including robotics and AI” [1]. That is a design requirement, not a slogan. It means operators and maintenance technicians are in the room when a new line, a new operator screen or a new robot cell is specified, and that their objections are allowed to change the design.

Second, resilience sits beside efficiency as a design goal. The brief makes an observation that every plant manager will recognize: gains in efficiency “often come at the cost of lowered resilience”, and “the most efficient factories may be rigid in their setup” [1]. Thin inventories, single-source suppliers and tightly coupled lines all save money until the day something breaks. The brief asks us to price that risk deliberately, rather than discover it in the middle of a crisis.

Third, sustainability becomes a production measure. The brief calls for circular processes that reuse and recycle resources, and for lower energy consumption and emissions [1]. For a plant, that puts energy and material per unit of good output on the same board as throughput and quality, reviewed by the same people in the same meeting.

What it does not change

It is just as important to be clear about what Industry 5.0 leaves alone.

The technology is largely the same. The Commission held two virtual workshops with Europe’s research and technology organizations in July 2020, and the resulting report concluded that the technologies at the core of Industry 5.0 “are largely congruent with Industry 4.0” [6]. The six groups it named were human-machine interaction; bio-inspired technologies and smart materials; digital twins and simulation; data transmission, storage and analysis; AI; and technologies for energy efficiency and trustworthy autonomy [6]. Anyone who has followed Industry 4.0 will recognize the list. One workshop participant, the report notes, called the idea “Industry 4.1” [6].

Industry 4.0 itself is not finished. The same report observed that small and medium-sized enterprises, craft manufacturers and traditional industries “are still far from a wide-scale implementation of Industry 4.0 technologies” [6]. A plant that cannot yet trust its own production counts will not leap ahead by adopting new language.

The fundamentals remain. A furnace still needs its heat-up time. A batch still needs its approved recipe. Work instructions, preventive maintenance, spare parts, calibration and change control are not made obsolete by any framing. A human-centric plant needs them more, not less, because people cannot do good work around unreliable equipment.

Practical advice for plant and operations leaders

Here is how I would turn Industry 5.0 into actions a plant can take this year, without creating a new program office.

  1. Put operators on every specification team. For each automation or digital project, name at least one operator and one maintenance technician as full members, from requirements through commissioning.
  2. Add two lines to the plant scorecard. Track energy per unit of good output and one measure of workforce wellbeing, such as recordable injuries or voluntary turnover, beside throughput and quality.
  3. Map your single points of failure. List the machines, suppliers, software licences and individual people whose loss would stop the plant for more than a shift. Decide which risks you will accept and which you will fix.
  4. Fund skills the way you fund spare parts. Treat training as something the plant cannot run without, because it cannot.
  5. Finish the Industry 4.0 basics. Reliable data from the equipment, a clear information model and disciplined change control are the foundation for everything in the Commission’s framing.

Read carefully, Industry 5.0 is a reminder of what good plants have always known. Technology serves the people who run the process. The process lives within physical and environmental limits. And a plant that cannot absorb a shock is not as efficient as its numbers suggest.

References

  1. M. Breque, L. De Nul, and A. Petridis, “Industry 5.0: Towards a sustainable, human-centric and resilient European industry,” Policy Brief, European Commission, Directorate-General for Research and Innovation, Publications Office of the European Union, Luxembourg, Jan. 2021.
  2. EDN, “Happy birthday to the PLC,” EDN, Nov. 2008.
  3. N. Konishi, “CENTUM history,” Yokogawa Technical Report, Yokogawa Electric Corporation, 2012.
  4. ANSI/ISA-95.00.01-2000, “Enterprise-Control System Integration, Part 1: Models and Terminology,” International Society of Automation, 2000.
  5. H. Kagermann, W. Wahlster, and J. Helbig, “Recommendations for implementing the strategic initiative INDUSTRIE 4.0: Final report of the Industrie 4.0 Working Group,” acatech and Forschungsunion, Apr. 2013.
  6. J. Müller, “Enabling Technologies for Industry 5.0: Results of a workshop with Europe’s technology leaders,” European Commission, Directorate-General for Research and Innovation, Publications Office of the European Union, Luxembourg, Sept. 2020.

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