Introducing Industry 5.0: Preparing for constant technology advances within the manufacturing industry
Defined as the era people work alongside advanced technologies, where man and machine work side-by-side, we explore utilising investment to get Industry 5.0 ready.
With Industry 5.0 quickly emerging not long after change from the last industrial revolution, the manufacturing industry needs to make sure it is up to speed with 4.0 whilst preparing for the newer advances and changes to come.
Around ten years ago, Industry 4.0 was coined by a German government project set to influence the manufacturing sector by creating new ways of thinking and industry innovations not seen since the 70s.
Dubbed as the 4th industrial revolution, the 21st century had become a time for emerging markets, ideas and breakthrough technologies. With numerous definitions for the principles surrounding Industry 4.0, most said it was the era of system automation and data accessibility, transforming economies, workforces and societies.
However, whilst some manufacturing businesses are still getting their heads around new ways of thinking – only just investing and incorporating new technologies into their production lines – the next revolution is already in full flow.
Though Industry 4.0 has not been at the forefront of business’ growth plans for long, manufacturers who were investing and adopting new technological innovations ahead of their competitors, are now in a good position to adapt to the industry’s next innovative phase.
The 4.0 approach complements the development of Industry 5.0, defined as the era people work alongside advanced technologies such as AI-powered robot, contributing more to society and enhancing the working environment. Aims go beyond that of making processes more efficient and productivity, shifting instead to a more sustainable, human-centric and resilient industry.
5.0 places people rather than machines back at the centre of the production and manufacturing development, sustaining the well-being of workforces to create higher valued jobs, as well as creating customisable and personalised products for the end customer.
Environmental, social and governance (ESG) issues will also need to be addressed and monitored in all business’ future plans, regardless of sector, to continue to secure investment, raise industry competitiveness, increase exports and pursue a net-zero carbon future.
Gearing up for future advances
With the new technologies, innovations and digitalisation of Industry 4.0 and now the aim to re-establish people’s creativity and problem-solving abilities back into the highly automated processes mix, manufacturing businesses must start to consider how they will achieve this growth in what will need to be the short- to medium-term.
This progression is unavoidable and securing investment can help SMEs keep up with the industry’s exponential momentum for innovation and change. Alternative investors, like FDC, can also help advise on how to best approach ESG, share their experiences working with similar businesses and open up their highly sought after network of connections to ensure decisions makers have the backing, knowledge and support for long-term success.
FDC manufacturing investment
FDC has a range of funding options available to SMEs working in the manufacturing supply chain to help support changes, such as the shift through to ideals of Industry 5.0, and has a team of dedicated, knowledgeable professionals with experience working with SMEs within many sectors of the manufacturing industry.
Funds available include the National Tooling Loan Fund, the recycled Advanced Manufacturing Supply Chain Initiative (AMSCI) and the FDC Debt Fund.
Being at the forefront of the funding landscape, FDC provide flexible investment packages and strives to be a responsible long-term investment partner, pledging far more than just capital. The team takes the time to understand a business’ needs and values, taking a holistic approach to the deal making process.
Jack Glonek, AMSCI Investment Director comments:
“It’s no secret that embracing creative and innovative ways of working early allows businesses to become more flexible and adaptive, traits that set leading businesses apart from the rest.
“Ready or not, Industry 5.0 has arrived – quicker than perhaps expected – however securing flexible investment packages and utilising the expertise of trusted partners will ensure supply chain provider, manufacturers and innovators keep up with the evolving industry and maintain a working environment that is sustained.”