Ninety three percent of Indian manufacturers want to achieve sustainability with 2-3x profitable growth through Industry 5.0, per a study by PwC India.
According to PwC report Decoding the Fifth Industrial Revolution: Marching towards a resilient, sustainable, and human-centric future, a number of Indian manufacturers are putting sustainability first in an effort to increase profits by two to three times over the next three to five years.
As per the survey, 52% of these manufacturers wish to create a culture of upskilling and lifelong learning.
Investing in sustainable practices:
According to the study, which covers six industries, 93% of Indian manufacturers are adopting Industry 5.0 in an effort to increase revenue and promote sustainable practices. With Industry 5.0 adoption, Indian manufacturers will be able to increase their revenues by 6.42% over the next two years, building momentum towards greater sustainability and resilience.
This year, over half of Indian manufacturers are making investments in sustainable practices a top priority. Among other things, the goal of these investments is to use digital technologies to increase energy efficiency and embrace renewable energy sources. Furthermore, this year, 52% of top executives at top manufacturing companies are investing in creating a culture of lifelong learning.
Sudipta Ghosh, Partner and Industrial Products Leader, PwC India, said, “Industry 5.0 represents a defining moment for the manufacturing sector – one that creates a symbiotic relationship between humans and advanced technologies like artificial intelligence (AI), robotics and the internet of things (IoT). 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 as an integral part of this transformative journey.”
Manufacturers believe their businesses have lost 4.37% of their FY24 revenues because of a lack of maturity in Industry 5.0 capabilities, according to the study. However, certain industries have invested more aggressively than others.
For example, 95% of manufacturers in the cement and manufacturing sectors are making real-time inventory tracking a top priority for this year and the coming year.
The importance of training:
The importance of training for C-suite executives and senior leaders in the automotive, cement, chemicals, industrial goods, metals, and textiles sectors is also highlighted in the PwC study.
Creating a culture of lifelong learning and offering opportunities for employees to reskill and upskill in order to promote experimentation and innovation is a top priority for 52% of senior executives across all industries this year.
According to the findings, workers will begin to see how machines can enhance and supplement their skills, enabling them to complete tasks more quickly and effectively, as training becomes more in-depth and on-the-job.
Nearly half of the executives surveyed from the cement and automotive industries expressed concern that robots and digital technologies would result in job losses; this would allay those fears.
“In the past, a top-down approach has been used to integrate machines and technology on shop floors and operations. The story would be a little different in the context of GenAI, though. In this situation, the emphasis on bottom-up innovation will require direction from sufficient top-down barriers. However, the incapacity to offer safe access to GenAI and related technologies to boost worker productivity has emerged as a problem for numerous executives in sectors like cement, automotive, textiles and apparel, and chemicals, Ghosh said.
Sectoral analysis:
The majority of executives concur that they would increase their revenues by an average of 6.42% over the next one to two years if they were prepared for Industry 5.0 capabilities that are pertinent to their workforce, customers, supply chains, business models, and ESG commitments.
According to executives in the chemical, cement, textile, and apparel industries, Industry 5.0 adoption would have the biggest positive impact on their sectors, with potential revenue growth of over 7%. The majority of executives in the automotive and metals industries emphasize that their clients are prepared to pay more for cutting-edge goods and services. Executives in the textile and apparel industry observe that consumers are willing to pay more for sustainable goods.
In order to maximize inventory levels, minimize excess inventory, and minimize stockouts this year and next, over 95% of respondents in the cement and industrial goods sectors are giving real-time inventory tracking top priority. Many executives in sectors like chemicals, cement, textiles and apparel, and automotive face difficulties in providing safe access to generative artificial intelligence (AI) and related technologies to boost worker productivity.
This year, almost 52% of executives from a variety of industries plan to prioritize investments in automating routine and repetitive tasks so that workers can concentrate on more important and value-generating tasks.
By incorporating real-time data and analytics to monitor for possible disruptions and implement preventative measures to reduce risks, almost half of executives are, on average, directing their investments toward creating responsive supply chains.
This year, over half of the executives are making investments in mechanisms to support the use of renewable energy sources, energy-efficient practices, waste reduction, and responsible water management a top priority. Investing in
Over 80% of executives in the chemicals and automotive industries hope that their sectors will be recognized for their efforts to promote employment and sustainability. They observe that their employees and clients are growing more conscious of the social and environmental responsibility of the products they manufacture and use.
46% of executives in a variety of industries are prioritizing investments in developing capabilities that will protect manufacturing systems, data, and intellectual property from cyber threats and guarantee the integrity and dependability of operations, demonstrating the growing significance of cybersecurity.
