Dr SB Hegde highlights the changes that are imminent in the new Cement 5.0 era, which combines advanced technologies with human intelligence and sustainability, in part one of this two-part series.
The cement industry plays a key role in building global infrastructure and is now entering a new phase called Industry 5.0. This phase blends advanced technology with human creativity and puts strong focus on sustainability.
Today, cement production is responsible for about 7 per cent to 8 per cent of the world’s carbon dioxide emissions—roughly 2.7 billion tonnes each year. As the demand for cement is expected to rise to 5.5 billion tonnes by 2030—especially in fast-growing regions like Africa and Asia—companies must find ways to meet this need while cutting down their emissions to reach net-zero by 2040. This goal matches global efforts to limit temperature rise to 1.5°C, as outlined in the Paris Agreement.
This new era, called Cement 5.0, needs a workforce that understands new technologies like artificial intelligence (AI), the Internet of Things (IoT) and robotics, as well as eco-friendly solutions such as carbon capture and the use of alternative raw materials. Industry 5.0 builds on the progress of Industry 4.0 but adds a more human touch—focusing on collaboration between people and machines to make production smarter, greener and more customised.
According to a 2023 report by the World Economic Forum, half of all workers will need new skills by 2025, and 40 per cent of current job tasks will change due to technology. In the cement industry, this means workers must learn to use data for better decision-making, handle automated equipment and support environmental goals.
Companies also need flexible teams that can adapt to change, advanced control rooms to oversee operations and strong leadership to guide these changes. It’s also important to focus on diversity, cybersecurity, virtual reality training, partnerships with other industries, global knowledge sharing and employee well-being.
This article shares a simple, step-by-step plan for cement industry leaders to train their teams, build flexibility and develop future-ready leaders. By doing this, the industry can stay competitive and meet its climate goals in a smart, sustainable way.
The Cement 5.0 paradigm
Industry 5.0 is a new phase for the cement industry where human creativity and advanced technology work together to make cement production more sustainable. While Industry 4.0 mainly focused on automation and smart systems, Industry 5.0 highlights teamwork between people and technologies like AI, IoT and robotics to build cleaner, more efficient cement plants.
To meet global climate goals, the cement industry must cut its carbon emissions by 25 per cent by 2030, as per the International Energy Agency’s 2023 guidance. This is especially important because making clinker—the main part of cement—causes about 88 per cent of the industry’s emissions due to its energy-heavy process and chemical reactions in kilns.
However, many cement plants still use old systems and depend on traditional job roles like manual machine operators. A 2024 Deloitte report found that 70 per cent of companies in industries like cement don’t have workers with the skills needed for digital upgrades which I highlighted earlier.
To thrive in the Cement 5.0 era, companies need workers who can use data to make operations more efficient, manage modern machines, and use green technologies like carbon capture. For instance, the Global Cement and Concrete Association reported in 2024 that cement companies using digital tools improved their energy use by 12 per cent on average.
Training workers to use these tools is now a top priority, especially as global cement demand is expected to grow by 10 per cent by 2030—mostly in developing countries. Companies should check what skills their workers currently have and identify gaps in areas like data handling or sustainability. Tools like Gloat’s AI platform have helped companies understand and plan for the skills of over 20,000 employees.
Working with groups like the European Federation of Building and Wood Workers can also help create training programmes that match the needs of Industry 5.0. Encouraging workers to keep learning through online courses and digital certificates can boost training participation by 30 per cent, according to a 2023 LinkedIn study.
One strong example is Holcim’s ‘Plants of Tomorrow’ programme, which started in 2020. It trained 20,000 workers at 270 plants in areas like IoT and eco-friendly practices. By 2024, this helped reduce energy use by 10 per cent at pilot locations.
Such efforts show that with the right training and mindset, the cement industry can prepare its workforce for the technical and environmental challenges of Cement 5.0.
Upskilling for data science
Data science is changing how cement is made by helping companies predict equipment problems, save energy and keep product quality high. According to a 2024 McKinsey report, using AI and data analysis can reduce kiln breakdowns by 15 per cent to 20 per cent, cut energy use by 10 per cent to 12 per cent and improve cement quality by 25 per cent.
But 85 per cent of companies don’t have enough workers who know how to analyse data, which makes it harder for them to use these new tools. More cement plants are now using digital twins—virtual copies of equipment that collect real-time data through sensors—to make their operations more efficient.
To work with these systems, employees need to learn tools like Python (a coding language). For example, predictive maintenance systems can look at sensor data to guess when a machine might break down. These systems are up to 90 per cent accurate and can save up to 15 per cent on repair costs.
Plant workers can use this information to adjust machines like kilns, and managers can use it to make better decisions. One good example is Heidelberg Materials’ ‘Cement 4.0’ programme in Germany. By 2024, it had trained 1,500 employees in data science, which led to a 12 per cent improvement in plant efficiency and a 7 per cent drop in energy costs at the Lengfurt plant.
To achieve similar results, companies should offer targeted training, like six-month bootcamps that teach Python to operators and advanced data skills to engineers. Online learning platforms like Coursera and IBM’s SkillsBuild offer low-cost courses that can help companies train about 15 per cent of their workforce each year.
Companies can also start in-house ‘data academies’ where experienced data experts teach others using real data from the plant. This helps workers learn practical skills they can use right away.
By investing in data science training, cement companies can save money, work more efficiently and stay ahead in a digital world.
Reskilling for process automation
Automation is helping cement plants become smart factories, where machines do routine work and people manage and control the systems. A 2023 OECD report says that by 2030, 14 per cent of industrial jobs could disappear due to automation, and 32 per cent of jobs will change. This means workers will need to move from manual jobs, like running kilns, to new roles such as programming and supervising automated machines.
For example, automated kilns can lower fuel use by 8 per cent to 10 per cent and reduce emissions by 5 per cent to 7 per cent, according to a 2024 study by the European Cement Research Academy. To work in this environment, employees need to learn how to use systems like programmable logic controllers (PLCs), which control machines and SCADA systems, which help monitor the plant. They also need to understand robotics so they can manage equipment like robotic arms used to move materials.
Cemex’s plants in Mexico show how this works. In 2023 and 2024, they trained 1,000 workers to operate AI-powered kilns. This led to an 8 per cent cut in fuel use and a 6 per cent drop in emissions at five of their plants.
To make this kind of change, companies should work with tech partners like Siemens or Rockwell Automation to offer hands-on training in automation. They can also use virtual reality (VR) to let workers practice on digital versions of equipment. A 2024 PwC study found this method can reduce training time by 40 per cent.
Another useful method is job rotation—letting employees work in different departments like production and maintenance—so they understand how automation affects the whole plant. This makes workers more flexible and better prepared for the smart factories of the future.
By teaching workers new automation skills, cement companies can boost productivity and meet their sustainability goals. That makes automation a key part of the shift to Cement 5.0.
Embedding sustainability
Sustainability is a key part of Cement 5.0, as the cement industry works toward reaching net-zero emissions by 2040. According to the Global Cement and Concrete Association, carbon capture, use, and storage (CCUS) systems will help reduce 36 per cent of emissions by 2050. To make this happen, workers need to know how to run and take care of these systems.
New materials like Limestone Calcined Clay Cement can reduce emissions by 20 per cent to 40 per cent compared to regular cement, but using them requires knowledge of material science and environmental rules. Training programmes should also cover carbon accounting (measuring emissions during production) and circular economy practices, such as recycling old construction waste into new cement.
For example, carbon dioxide mineralisation—where captured CO2 is turned into solid building materials—can create low-carbon products. But this needs special training to apply correctly.
Lafarge Canada’s Bath plant is a great example. By 2025, they trained 250 workers in carbon capture and circular economy skills. This supported a pilot project that captures 1 million tonnes of CO2 each year, reducing emissions by 15 per cent.
To build these skills, companies can partner with top universities like MIT or ETH Zurich, which offer courses and certifications in sustainable engineering. Workers can also learn through AI simulations, which help them practice running carbon capture systems in real-life-like situations.
Sustainability training should be offered to everyone in the company, from workers on the shop floor to senior managers. A 2024 study from ScienceDirect found that giving employees this kind of training increased their engagement by 25 per cent, which also helps companies keep skilled staff.
By including sustainability in all training and job roles, cement companies can hit their green targets and build a strong reputation as leaders in clean, eco-friendly innovation.
Building agile teams
Agile teams are very important for Cement 5.0 because they help companies quickly adjust to new technologies and market changes. Industry 5.0 focuses on working together with machines, so workers need to be good at teamwork, solving problems and
being flexible.
But as of 2024, only 26 per cent of companies use platforms that match people’s skills to projects, which shows they aren’t using their teams as effectively as they could. Agile methods like Scrum, where teams work in short, focused cycles, can help complete projects 20 per cent to 30 per cent faster.
Besides technical skills, soft skills like communication and emotional intelligence are also critical. A 2023 study from PMI says 80 per cent of project failures happen because of poor teamwork.
A good example is Dalmia Bharat, which in 2024 trained 500 employees in Scrum. This helped them finish projects 25 per cent faster and come up with new ideas for low-carbon cement.
To support agile work, companies should teach employees how to use tools like Jira, which helps manage tasks and track progress. They can also use peer coaching, where experienced staff help guide others, improving team bonding by 25 per cent.
Setting up internal talent platforms—where workers are matched to projects based on their skills—can improve how people are used by 30 per cent. This makes it easier to quickly build teams for urgent jobs, like testing carbon capture systems or improving automated kilns.
By building agile teams, cement companies can react faster to changes, solve problems quickly and create a workforce that’s ready for the fast-moving, tech-driven future.
Digital command centres
Digital command centres are becoming the nerve centres of cement plants, using IoT, AI and automation to provide real-time insights into operations. These centres can reduce costs by 10 to 15 percent and speed up decision-making by 30 percent, according to a 2024 BCG study. They rely on data from sensors and digital twins to monitor equipment, predict failures and optimise energy use. Workers need skills in data visualisation tools like Microsoft Power BI to create dashboards and cloud computing platforms like AWS IoT Core to manage data flows.
UltraTech Cement’s digital command centre in India, launched in 2023, trained 400 employees in these skills, cutting downtime by 15 percent and improving energy efficiency by 10 percent. Training programmes should focus on teaching operators to monitor real-time data and make quick decisions, such as adjusting kiln temperatures to save energy. Information technology teams need training in cloud computing to ensure systems run smoothly.
Partnerships with technology companies like Amazon, through programmes like the Skills to Jobs Tech Alliance, can provide access to advanced training resources. Digital command centres also enable predictive analytics, which can reduce unplanned equipment failures by 20 percent, saving millions in repair costs. By centralising data-driven decisions, these centres help cement companies operate
more efficiently and stay competitive in the Cement 5.0 Era.
About the author:
Dr SB Hegde, a global cement industry leader with over 30 years of experience, is a Professor at Jain College of Engineering, India, and a Visiting Professor at Pennsylvania State University, USA.
Part two of the article to be published in the August issue of ICR.