Indian manufacturers look to Industry 5.0 for more efficiency and sustainability
According to a new report from PwC, over 9 in 10 of executives in the manufacturing industry would like to be known for their sustainability initiatives while also achieving growth over the next three to five years. A major part of those plans hinges on the adoption of Industry 5.0.
Industry 5.0, or the ‘fifth industrial revolution’, moves beyond efficiency to foster resilience and sustainability through human-centric technology. Unlike Industry 4.0’s focus on automation, Industry 5.0 emphasizes closer collaboration between humans and technology to enhance sustainability, strengthen production systems against external shocks, and improve agility in responding to business challenges.
By embracing Industry 5.0, Indian business leaders are signalling that they want to prioritise the long-term wellbeing of their workforce and consumers while also regulating their environmental impact, said the PwC report.
More than half of the executives polled said they are investing this year into renewable energy, implementing energy-efficient practices, reducing waste generation, and managing water usage responsibly with the help of new technologies.
Digitalization and adoption of new automation tools is also at the top of many agendas. In fact, 52% of executives on average, across industries, said that their companies were investing in automating repetitive and mundane tasks. This is often done with AI tools.
Predictive analytics is another area that is becoming more important for forward-looking manufacturing companies. A Industry 5.0 strategy seeks supply chain solutions powered by intelligent algorithms and real-time data, which can help businesses address potential issues before they arise.
On average, around half of the executives polled by the consultants said they are investing in responsive supply chains by factoring in real-time data and analytics so as to check for potential disruptions.
In addition to these strategies of future-proofing businesses, a majority of manufacturing leaders (52%) are also prioritising their investments this year towards building a culture of lifelong learning, providing opportunities for upskilling and reskilling employees.
Another part of what it means to embrace Industry 5.0 is a focus on rapid value reinvention, which just means ways that companies and find new ways to create additional value. That often entails quickly accommodating changes in product design or customer requirements.
Industry 5.0 driving growth
These changes in the way companies in manufacturing work will undoubtedly create growth, especially in the chemicals, cement, and textile sectors, which all expect to see more than 7% annual growth going forward.
Some concerns over AI adoption still linger. For example, there is a fear that new automation technologies will replace jobs. But despite that fear, the report emphasises that an Industry 5.0 approach should foster collaboration between people and machines, helping employees to shift away from mundane tasks and focus on more important work.
“Industry 5.0 represents a defining moment for the manufacturing sector – one that creates a symbiotic relationship between humans and advanced technologies like AI, robotics and IoT,” said Sudipta Ghosh, partner and industrial products leader at PwC.
“Companies that fast-track their adoption of these capabilities will establish a competitive edge in the coming years, as transformation is crucial for building a sustainable and resilient future with humans being an integral part of this transformative journey.”
