History and Future of Industrial Revolutions

– From Industry 1.0 to Industry 5.0.

One might wonder how China has become the undisputed leader in manufacturing, especially in industries like textiles, which are often viewed as low-value-added and labor-intensive compared to sectors like electronics. Despite paying janitors around $500 USD and garment stitching workers between $800–1,000 USD, China continues to dominate the textile industry. In contrast, countries like India, Pakistan, Bangladesh, and Vietnam pay workers just $100–150 USD as minimum wages and still struggle to compete with China’s textile supremacy, even with Western countries’ support to counter Chinese imports.

The key to China’s success lies in technological advancements across the entire value chain. This includes innovations in raw material sourcing, operational efficiency, and automation, driven in part by artificial intelligence. The latest leap in this evolution is referred to as “Industry 5.0,” a concept that combines human creativity with cutting-edge technology. For countries like Pakistan, with a population of 240 million, adapting to these technological advancements is crucial not only for the survival of its industries but also for improving the living standards of its people.

To fully grasp the significance of Industry 5.0 and its potential advantages and drawbacks, we first need to explore the history of industrial evolution and how technology has shaped modern industries.

The history of Industrial Revolutions refers to the transformation of societies from primarily agrarian economies into industrial powerhouses, marked by the development of factories, mechanised production, and urbanisation. This process began in the 18th century and has continued to evolve through different phases over the centuries.

What is Industry?

Industry refers to the economic activities involved in the processing of raw materials and the manufacturing of goods, typically in factories.

It consists of three key components:

1. Raw Material (RM) Warehouses – where raw materials are stored prior to production.
2. Operation Departments – where the actual processing and manufacturing of goods take place.
3. Finished Goods (FG) Warehouses – where completed products are stored before distribution.

This structure enables industries to efficiently manage the flow from raw materials to final products.

Resources: Essential Costs for Industry

Running an industry requires a variety of critical resources, including:

1. Capital– the financial investment needed to acquire machinery, materials, and cover operational costs.
2. Time – the necessary duration for production, processes, and project completion.
3. Space – physical locations like factories, warehouses, and offices.
4. Human Resources – the skilled workforce responsible for managing, operating, and maintaining processes.
5. Materials – raw inputs used in production to create goods.
6. Energy – the power required to operate machinery and sustain production activities.
7. Effort – the work and commitment of the team to achieve efficiency and productivity.
8. Machines – tools and equipment purchased with capital to enhance productivity and automation in manufacturing.

The First Industrial Revolution: Industry 1.0:

The First Industrial Revolution, which began around 1780, marked the start of mechanisation. This era saw the shift from manual labor to machine-driven production, primarily powered by water and steam.

Key Purposes of First Industrial Revolution:

1. To significantly increase production output.
2. To reduce reliance on animals like horses and oxen for labor.

Key Technologies and Techniques used during First Industrial Revolution:

1. Cranks – mechanisms that converted rotary motion into linear motion.
2. Gears – used to transfer and modify mechanical power efficiently.
3. Engines – steam engines and fossil fuel-powered engines revolutionised energy use in factories.
4. Water Channels – utilised to transport goods and power watermills.
5. Windmills – harnessed wind power to aid in mechanical tasks like milling and pumping.

This revolution laid the foundation for modern industrial processes by introducing mechanised systems that dramatically improved efficiency and production capabilities.

The Second Industrial Revolution: Industry 2.0:

Beginning around 1870, the Second Industrial Revolution was driven by the advent of electrification. This era introduced mass production through the use of assembly lines, transforming the scale and efficiency of manufacturing.

Key Purposes of Second Industrial Revolution:

1. To increase production output.
2. To reduce costs.
3. To minimise wastes (8 Types of Wastes).

In the industrial prospectives, there are Eight Types of Wastes which are generally referred to as TIMWOODS.

1. T for Transportation
2. I for Inventory
3. M for Motion
4. W for Waiting
5. O for Overproduction
6. O for Overprocessing
7. D for Defects
8. S for Skills (underutilised talent)

Key Technologies and Innovations used during the Second Industrial Revolution:

1. Assembly Lines– revolutionised manufacturing by streamlining the production process.
2. Conveyor Systems – facilitated efficient movement of materials and goods.
3. Lean Systems – Japanese technique focused on minimising waste while maximising productivity.
4. 5S – a Japanese workplace organisation method to improve efficiency and safety.
5. Toyota Production System (TPS) – emphasised continuous improvement through an inclusive approach.
6. Total Quality Management (TQM) – aimed at ensuring quality in all aspects of production.

 

This revolution not only increased production speed but also introduced practices to improve efficiency and reduce waste on a massive scale.

The Third Industrial Revolution: Industry 3.0:

The Third Industrial Revolution, which began in the 1970s, was characterised by Automation and Globalisation. This era saw the rise of electronics and computers in manufacturing, alongside the offshoring of production to lower-cost economies.

Key Purposes of the Third Industrial Revolution:

1. To increase production efficiency.
2. To reduce costs.
3. To minimise wastes (8 Types of Wastes).

Key Technologies and Innovations used during the Third Industrial Revolution:

1. Robotics – automation through the use of advanced machines, replacing manual labor in many areas.
2. Data Collection and Processing – computers enabled the efficient sorting and analysis of large amounts of data, improving decision-making and production accuracy.
3. Fast Communication – technologies like the fax machine facilitated quicker global interactions, making globalisation more viable.
4. Reduced Raw Material Costs – more efficient global supply chains helped drive down the costs of materials.
5. Internet and Email – revolutionised communication, further accelerating globalisation and enabling seamless business operations across borders.

Industry 3.0 ushered in a new era of smart, interconnected, and automated production, transforming manufacturing into a faster, more efficient, and globally integrated process.

The Fourth Industrial Revolution: Industry 4.0:

Beginning around 2010, Industry 4.0 is defined by Digitalisation and the integration of advanced technologies like connected devices, data analytics, and artificial intelligence to further automate and enhance manufacturing processes.

Key Purposes of Fourth Industrial Revolution:

1. To increase production efficiency.
2. To optimise costs.
3. To minimise wastes (8 Types of Wastes).
4. Improve resource management.

Key Technologies and Innovations used during Fourth Industrial Revolution:

1. Internet of Things (IoT) – connected devices enabling real-time data exchange and smarter operations.
2. Artificial Intelligence (AI) – automating complex tasks, improving decision-making, and enhancing predictive capabilities.
3. Big Data – leveraging large data sets to drive insights and optimise processes.
4. Real-Time Data and Cloud Computing – enabling instant access to data and improving coordination across global operations.
5. Barcoding, QR Coding, and RFID – enhancing tracking and inventory management through automated identification.
6. E-commerce – revolutionising the way goods are sold and distributed globally.
7. Automated Guided Vehicles (AGV) – used in warehouses for efficient material handling.
8. Automated Storage and Retrieval Systems (ASRS) – optimising warehouse storage through automation.
9. The Cloud – Single source of rapid data saving, across the board and with remote retrieval.

Industry 4.0 is transforming manufacturing by leveraging digital technology to create smarter, more efficient, and interconnected production environments.

The Fifth Industrial Revolution: Industry 5.0:

Industry 5.0 focuses on the interaction between humans and machines, emphasising cognitive computing and collaborative robots. This era aims to achieve mass customisation and personalisation to better meet individual customer needs.

Key Purposes of Fifth Industrial Revolution:

1. To enable customised production tailored to individual preferences.
2. To optimise costs.
3. To minimise wastes (8 Types of Wastes).

Key Technologies and Innovations used during Fifth Industrial Revolution:

1. Arificial Intelligence (AI)– including advancements like ChatGPT for enhanced human-machine interaction.
2. Digital Twin – creating virtual replicas of physical systems for real-time monitoring and optimisation.
3. Wearable Technology – such as smart glasses from companies like Google and Apple, enhancing augmented reality experiences.
4. Neuralink – a technology enabling individuals to control computers or phones using brain activity alone.
5. Microchip Implants – for secure identification and payment methods.
6. Real-Time Location Systems (RTLS) – tracking and managing assets or personnel in real time.
7. 3D Printing – Enabling on-demand and highly customised production.
8. Biotechnology and Genomics – revolutionise healthcare, agriculture, and pharmaceuticals, enabling gene editing, personalised medicine, and sustainable food production.
9. Augmented Reality – to use in training, maintenance programs, and training of new employees on machines virtually.
10. Cobots – a combination of bots and humans, doing things with perfection, learning what to do next, with human connection. Bots which are aware of human touch.

The Most Important Component for Industry 5.0:

Humans are the ultimate and most important resource for Industrial Revolution 5.0. Humans can be referred to as a “zillion-dollar machine” due to their cognitive and creative capabilities.

Following techniques could be used for maximising human potential in Industry 5.0:

1. Happiness Evaluation – assessing and improving employee satisfaction.
2. Success Evaluation – measuring and supporting personal and professional achievements.
3. Food, Lifestyle, and DNA Analysis – optimising well-being through personalised health and lifestyle interventions.

Industry 5.0 is centred on enhancing human-machine collaboration to create more personalised, efficient, and innovative manufacturing processes.

The future of industrial revolutions promises transformative changes with both opportunities (like space colonisation & AGI – Artificial General Intelligence) and challenges (like environmental impact and inequality). These shifts will require adaptability, foresight, and the development of new ethical, social, and regulatory frameworks to ensure they benefit society as a whole.