Yet, this contradiction is more apparent than real. The core challenge for European industry today is not new. Our competitive model cannot and should not rely on low-wage labour, nor is full automation a viable escape route. Even the most technologically advanced production environments cannot afford to reduce human workers to secondary or disposable elements. What we need—what Industry 5.0 promises—is a reframing of how value is created on the shop floor.

From Automation to Augmentation

Industry 4.0 introduced smart factories, data-driven processes, and automation at scale. Industry 5.0 does not abandon this foundation—but it refocuses it. Rather than optimising only for efficiency, it emphasises quality, resilience, and meaningful work. This means designing production systems where human intelligence and creativity are not residual elements, but core assets. For companies like Volvo, this is not just a moral or social imperative—it is a strategic necessity. Responding to the complexities of the electric/hybrid/fuel transition, adapting product lines rapidly, and innovating amid uncertainty requires flexibility that only human workers can provide.

Human-Centric Production is Not a Luxury

Calls for a “human-centric” production model are sometimes dismissed as unrealistic or idealistic in times of crisis. But in fact, the opposite is true. A human-centered model is a survival strategy. In this model, workers are not just operators but collaborators—engaged in process improvement, quality innovation, and adaptive production. This requires rethinking management models, investing in skills, and designing work that is meaningful and dignified. Cutting jobs or stripping back human input in pursuit of short-term savings risks eroding the very capabilities firms need to remain competitive in the long term. There is no going back to Taylorism—the fragmentation of work into repetitive, meaningless tasks. That model may have once increased efficiency, but today it undermines innovation and responsiveness.

The Productive Forces of the Future

At its heart, Industry 5.0 is a wager on people. Machines can process and automate, but humans imagine, adapt, and cooperate. As we look toward the future of European industry, the most powerful productive force we must mobilise is the ingenuity and commitment of workers themselves. The current wave of restructuring and cost pressure must not distract us from this truth. The firms that will survive—and thrive—will be those that recognise the strategic value of human-centred production and invest accordingly.

Come to Leuven on June 17th 2025!

During our Bridges 5.0 Conference in Leuven (Belgium), we offer over 70 studies that support this view on Industry 5.0. Click below to find out more.