Industry 5.0
Industry 5.0 is a global strategy that prioritizes a balanced view of value over time to dive down the CO2 level with an approach that utilizes people and technology to create sustainability. This idea of Industry 5.0 recognizes the importance of human and natural capital and financial capital and emphasizes building resilience to mitigate risks. Achieving resilience requires long-term planning that considers people, the planet, and prosperity.Abstract
In today’s increasingly eco-conscious world, smart factories have a vital role in minimizing industrial operations’ carbon footprint. While technological advancements have enabled these factories to become more energy-efficient, employees’ active involvement and commitment truly drive down greenhouse gas emissions. Currently, factories are responsible for producing the largest amount of greenhouse gases (29%). The European Commission (EC) has determined that to achieve this goal, we undergo an industrial evolution, which the EC is calling Industry 5.0. Industry 5.0 will focus on sustainability, resilience, and human-centricity. However, bringing these factories into existence requires employee engagement, and it can be challenging for factories when employees show little interest. This topic aims to explain how smart factories are changing and how there is a direct need for people in factories to bring forward Industry 5.0. The smart factories leverage advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and robotics to enhance productivity, efficiency, and connectivity. However, amidst all the excitement surrounding these advancements, it is crucial to recognize the importance of engaging employees in this new era. According to a recent global Gallup poll, only 23% of employees feel engaged in their work. With a new workforce and factories dealing with evolutional change such as the “Great Resignation,” transformation is hard. Smart factories of the future will use advanced technologies like IoT, AI, and robotics to improve productivity, efficiency, and connectivity. They must produce more with less to reduce greenhouse gases and meet the 2050 net zero goal. The US industrial sector currently contributes 30% to greenhouse gases (US EPA, 2021). The European Commission determined that meeting this goal requires a new industrial revolution – Industry 5.0, built on sustainability, resilience, and human-centricity. However, achieving these factories requires employee engagement. This topic will explore the changes in smart factories and the direct need for people to bring forward Industry 5.0.Introduction
Today’s advances in factory technology, digitalization, and enhancement in flexibility have turned factories into smart factories, also known as Industry 4.0. However, the supply chain is embarking on a challenging time as businesses are seeing the push to reduce greenhouse gases through government and corporate initiatives (Jafari et al., 2022). As Ivanov (2022) suggests, smart factories are changing practices by bringing the resilience of Industry 4.0 to drive sustainability within the industries, seeing the need to engage the smart factory workforce to drive sustainable solutions to reduce greenhouse gases. The concept of Industry 5.0 was developed by the European Commission (EC) in 2021 as the EC was determining how countries could meet the Paris Agreement to be “net zero emissions” by 2050 (United Nations [UN], n.d.). The EC (2021) determined that a three-part approach around sustainability, resilience, and human-centricity would need to occur to create a framework for the rapid development of innovation within the value chain. The concept of “net zero emissions” refers to balancing the amount of greenhouse gases emitted into the atmosphere and the amount removed from it. The idea of net zero can be achieved through various means, including reducing emissions, increasing carbon removal through natural processes like afforestation and reforestation, and technological solutions such as carbon capture and storage. Several countries, regions, cities, and corporations have committed to achieving net zero emissions by a certain target year, typically by 2050 or earlier. This commitment involves significant efforts to transition to renewable energy, improve energy efficiency, adopt low-carbon technologies, and implement policies to reduce emissions across various sectors such as energy, transportation, industry, and agriculture (UN., n.d.).Problem
In the face of organizational maladaptation, motivation, process industry discipline, workplace stress, and social exchange contribute to why employees disengage in the process industry (Schwartz, 2018). A recent global survey of individuals found that only 23% of employees felt engaged at work (Gallup, 2022). With low engagement, the process industry and other workplaces must evaluate what is driving the data and determine the best course of action to transform the workforce (Ahmad et al., 2022; Schwartz, 2018). Neglecting employee engagement can negatively affect various aspects of a business, including employee morale, staff turnover, process industry productivity, and overall business performance (Bebi̇Toğlu, 2023). Prioritizing employee engagement can lead to a thriving and successful organization (Ingsih et al., 2021). Since the First Industrial Revolution, factories have had an association with a grueling work environment; employees work long hours, where injuries and deaths are rapid, and employees have limited say in these matters (Stroup, 2020). Much has changed in today’s process industries; however, the workforce still has little voice in matters (Matošková et al., 2023). The transformation from Smart Factories to Industry 5.0 requires a skilled employee needing continuous training and the will to keep up with the demands of the factory’s new technologies (Matošková et al., 2023; Kim & Lee, 2021). However, while technology is moving fast (Barata et al., 2019), today’s workforce struggles to keep up with technology and retain talent as innovation is deployed (Horvath & Szabo, 2019). Losing human capital will lead Smart Factories to struggle to engage their employees through slow results (Matošková et al., 2023). As Kim and Lee (2021) suggest, a skilled employee is pivotal in ensuring smooth operations in the complex landscape of smart factories. These professionals are responsible for the operations and upkeep of sophisticated machinery, identifying and resolving technical issues, and implementing proactive running strategies (Razavi et al.,2022). Industry 5.0 represents a significant shift in the manufacturing sector, with smart factories evolving into more advanced and interconnected systems (Matošková et al., 2023; Kim & Lee, 2021). This transition necessitates a highly skilled employee adept at troubleshooting and repairing complex machinery and systems. Continuous training is essential for these workers to stay current with the latest technologies and advancements in the industry (Jafari et al., 2022). The future employees must demonstrate a strong dedication to keeping up with the demands of the factory’s evolving capabilities, ensuring optimal performance and efficiency of the production process. Adaptability and a willingness to learn and adapt to new technologies are crucial factors in successfully navigating the transformation to Industry 5.0 (Ivanov, 2022). In a recent survey acknowledging the issue of employee engagement, 83% of the companies surveyed globally have employee well-being as important and are actively constructing strategies to address the problem (Aon, 2023). Not addressing employee engagement can cause high absenteeism, turnover, theft, safety incidents, and quality drops (Due et al., 2022). The phrase “Quiet Quitting” has become popular following the Pandemic, particularly with the Generation Z community (Gallup, 2022 p4). The term is defined as rather than workers quitting jobs, employees are quitting the idea of going above and beyond. Unhappy with some aspect of their current company or role, the employee chooses only to complete the bare minimum” (Ford, 2023, p2). When polled, 59% of employees acknowledged disengagement with the job and seeking new work(Gallup, 2023, p4). While employee engagement is a clear call to action, some barriers slow facilities to act (Ahmad et al., 2022). The drawbacks include the financial commitment to support change, the current cultural barriers, management commitment, and legality that inhibit the facility’s ability to create positive change, which leads to a process industry business leader’s unwillingness to invest (Matošková et al., 2023). However, many facilities see a direct link between employee engagement and being more reliable, sustainable, and productive, which drives many facilities to reconsider their strategies (Materi & Renna, 2021). Engaging facilities employees is an Organizational Transformation process, a term used to drive change (Ahmad et al., 2022). However, for companies that have decided their facility needs a change, only about 30% of transformations are successful (Viana Vargas et al., 2020). The common reasons are employees’ resistance, management engagement, and support or limits to budget or resources in the budget for change (Bodell, 2022, p.1; Ewenstein et al., 2015). Industry Transformation is shown to be difficult as a whole; however, within the different industries, data has shown that the pace of transformation is 76% faster in process industries than that of industry peers such as Government, Education, Retail, or Health/Medical Services (Viana Vargas et al., 2020). As industries are hesitant to embark on a transformation (Ewenstein et al., 2015), there is a clear call for improvement, as estimates suggest that the global economy is impacted by $8.8 trillion annually and that the companies that are working to improve employee engagement have seen a 21% increase in productivity against the standard (Gallup, 2023).History
To understand Industry 5.0, it is important to understand the previous industry revolutions.Industry 1.0
The Industrial Revolution, Industry 1.0, started in the late 17th and early 18th century and allowed mass production and distribution. New manufacturing processes that used steam power and coal made this possible. This period saw the rise of automation, with inventions such as the weaving loom and steam engine in transportation.Industry 2.0
Industry 1.0 utilized steam and coal, while Industry 2.0 introduced electrical energy, which led to mass production with sophisticated machines capable of assembly.Industry 3.0
In the 1970s, Industry 3.0, or the “Digital Revolution,” emerged. It introduced computers, PLCs, and electronics, leading to further automation. Integrated circuits and transistors increased production accuracy, speed, and quality. Today, this technology is still prevalent in many factories, including robotics and continuous flow assembly.Industry 4.0
Industry 4.0 is still pertinent, and it has made Industry 3.0 more substantial and more effective. It enhances the competitiveness and efficiency of Information Technologies by connecting every resource (data, people, and machine) in a supply chain. Industry 4.0 is primarily about continuous monitoring, processing of large data sets, and mobility in handheld devices. Industry 4.0 can be divided into 9 pillars of technology (Akman & Karaman, 2021).| · Industrial Internet of Things |
| · Big Data and Analytics |
| · Horizontal and Vertical System Integration |
| · Simulation |
| · Cloud Computing |
| · Augmented Reality |
| · Autonomous Robots |
| · Additive Manufacturing |
| · Cyber Security |