Modern manufacturing is complex, and the more advanced the process is, the more challenging it becomes to efficiently manage people, processes, and systems.
Industry 5.0 marks a transformative evolution in manufacturing.
A distinguishing feature of Industry 5.0 is the shift towards human-technology collaboration, with advanced technologies augmenting human capabilities.
While Industry 4.0 had a technology-driven approach, the focus now is not on technology replacing humans but on assisting them through human-machine collaboration (cobots), freeing up human capacity to do the things that technology cannot do while boosting efficiency and performance.
For manufacturers involved in complex manufacturing, or advanced manufacturing as it is often referred to, smart technologies are transformative. Smart factories that deploy automation, AI, robotics, and IIoT (Industrial Internet of Things) are increasingly shaping the industry by streamlining processes and enhancing efficiency.
Modern ERP systems that are replacing legacy systems and the adoption of emerging technologies are both contributing to the rise of smart factories.
Six key trends shaping this new era of manufacturing
Adopting these advanced technologies is a critical priority for complex manufacturers looking to optimize operations and stay competitive, with six emerging trends driving this new era of manufacturing: balancing sustainability and innovation; adopting a human-centric approach; human-robot collaboration; shifting towards sustainable manufacturing; shifting towards a circular economy; and adopting a value-centric approach.
There are many good reasons for manufacturers to adopt new technologies—a recent survey found that over 60% of manufacturers view IIoT as essential, while 32% of manufacturers are leveraging automation and robotics to enhance their precision, quality and efficiency, with small and medium-sized businesses seeing a productivity improvement of 26% to 50% by embracing emerging technologies.
Of the manufacturers, 43% identified themselves as in a pilot phase, with 57% at the stage of partial implementation. It is worthwhile to note that none of the manufacturers surveyed had yet reached full implementation.
Adoption is uneven
However, the six key trends are not necessarily a reflection of manufacturers’ investment priorities, and not all six trends are currently being adopted by African manufacturers. Traditionally, Africa has been dominated by low-value activities such as textile production and food processing.
However, with countries like South Africa, Morocco, Egypt, Ethiopia, and Kenya investing heavily into industries such as automotive and machine manufacturing, aerospace components, ICT and pharmaceutical production, the manufacturing landscape is changing.
Many African manufacturers are still embracing Industry 4.0, with the integration of digital technologies helping manufacturers on the continent leapfrog traditional stages of industrialization.
Where African manufacturers are moving ahead with Industry 5.0 is in the widespread adoption of automation and robotics, with 37% of survey respondents identifying them as integral to their operations.
Both these technologies offer immediate benefits, including precision in assembly lines, stringent quality control and wastage reduction, while their seamless integration with existing systems is helping to accelerate their implementation.
Other smart technologies are gaining traction at varying paces. AI, adopted by 19% of respondents, holds significant future potential despite its slower implementation rate.
Its ability to improve data analytics, optimize maintenance, and minimize downtime positions it as a disruptive force in the industry. IIoT, adopted by 18%, is seeing a slightly faster uptake, valued for enabling real-time, data-driven decision-making and enhancing operational efficiency.
Barriers to adoption
The study reveals that more than 50% of complex manufacturers are still in the early to intermediate stages of implementing advanced technology.
Some sectors rapidly integrate innovative technologies to boost efficiency, quality, and competitiveness, while others lag due to limited resources, outdated infrastructure, and unclear digital strategies.
Technology adoption also differs widely across regions, in part driven by evolving industry demands, financial capacities and limitations, and access to advanced technologies.
For example, in South Africa, which has a digital competitiveness rating of 49 as opposed to the USA’s 100, manufacturers prioritize maintaining competitiveness and meeting customer demands, with less emphasis on adopting smart technologies.
Two key barriers to implementation are slowing uptake—high costs and resistance to change. A quarter of all companies reported that high upfront costs are the biggest barriers to adopting cutting-edge technologies.
Despite offering long-term benefits, the initial financial burden can be overwhelming, especially for mid-sized or budget-constrained firms.
The second biggest barrier is internal resistance to change, with 22% of respondents reporting a focus on current and not future operations. This makes it harder for CIOs and CTOs to lobby for an investment in new technologies, with skepticism about these technologies’ impact on efficiency and value addition creating further barriers to adoption.
Other key concerns cited by manufacturers include a lack of technical expertise to implement and manage new technologies and difficulties integrating new technologies into their existing technology stack, with manufacturers showing caution about actions that could disrupt operations regardless of the long-term benefits.
To overcome these challenges, CIOs and CTOs must secure executive buy-in, develop an implementation plan, and invest in a strong support team during technology implementation.
Change is inevitable
What is clear is that the adoption of advanced technologies remains a critical priority for complex manufacturers—and those who embrace Industry 5.0 stand to gain the most from this transformative era.
By strategically implementing smart technologies like AI, robotics, and IIoT, African manufacturers can not only enhance efficiency and competitiveness but also lead the charge towards sustainable and innovative production.
The path forward demands adaptability, vision, and a commitment to overcoming barriers, ensuring that the manufacturing sector in Africa evolves to meet global standards and continues to thrive in an increasingly interconnected world.
Johan du Toit is a strategic sales executive for SYSPRO Africa
