Toyota is turning to human labor again. The Japanese car manufacturer’s decision attracted worldwide media attention. After years of increasing automation, Toyota returned to manual production in several areas of its factories towards the end of the last decade, as part of a quality and efficiency initiative. Mitsuru Kawai, the former head of automation, made the decision clear by stating that humans are more likely to notice deviations than machines and therefore also reveal weaknesses in processes more quickly. Process improvements and innovations thus originate primarily from humans, and robots perform to the extent of their human teachers’ competence.
Kawai is a proponent of the Japanese work philosophy »Kaizen« (literally: change for the better). As such, he focuses on strengthening the knowledge and skills of his employees, especially when it comes to error detection and suggestions for improvement. This decision is groundbreaking, especially in today’s era of growing use of artificial intelligence and digitalization. Industrial companies all over the world are wondering: How much automation can the factory of the future support?
Automation is often portrayed as a potential threat to the labor market. Given the current economic situation, that is not the case anymore. Prof. Dr. Julian Polte is the head of the Production Systems division at Fraunhofer IPK and the Managing Director of TU Berlin’s IWF. He asserts that a high degree of automation today guarantees productivity and job security. »Works councils and trade unions, including IG Metall, have made it clear that many German locations would not be competitive without automation. Particularly small and medium-sized enterprises, which are the foundation of German industry, are under threat. At the same time, humans must remain at the center of production, benefiting from the relief provided by machine support and human-machine-collaboration.«
International cost pressure and the investments required for modern automation have led to considerable burdens. Companies that fail to keep pace with developments risk being taken over or having their services outsourced to other companies, according to Polte. Automation is driven by efficiency considerations and has a significant impact on the fundamental independence of companies.
The shortage of skilled labor is contributing to the aggravation of this development. This is not purely a numbers problem, but rather a skills problem. There are hundreds of thousands of job vacancies across Germany, yet at the same time many people are unemployed. In 2024, industry
had 570,000 unfilled jobs, while 2.6 million people in Germany were out of work. The current economic situation may not suggest it, but there will be a total shortage of around seven million skilled workers by 2035. The metal and electrical industries, along with mechanical engineering, are particularly affected.
The discrepancy is mainly due to the mismatch between qualifications and requirements. A significant number of positions remain unfilled due to a lack of qualifications. Automation is the key to closing this gap. It does not replace people; it relieves them of a part of their workload or supports them in further training.
Trade union representative Christoph Hahn from IG Metall Berlin-Brandenburg-Sachsen is committed to using technological advances to humanize work. »For us, this means that technology should relieve the burden, but never take away people’s autonomy. We prioritize targeted training before any rationalization, ensuring collectively agreed learning times, a right to continuing education, and clear paths from plant operator to data and maintenance professional. Introducing new technologies always means investing in people and reorganizing work.«
There are numerous examples of automation and human input already working well together. These often come from passenger transport, such as aviation or rail transport. Autopilots have been standard in aircraft for decades, and modern train control systems take over many routine tasks. Humans are still indispensable when it comes to assessing the plausibility of decisions, taking responsibility, and maintaining control in exceptional situations.
This concept is gaining traction in the industry, as Prof. Dr. Jörg Krüger, head of the automation technology divisions at the IWF of TU Berlin and Fraunhofer IPK, confirms: »The Industry 5.0 era is built on three key principles: human-centeredness, resilience, and sustainability. People are at the core of this, with machines taking over routine tasks while employees retain their decision-making power and concentrate on more demanding tasks.« Resilience to crises is a key priority, Krüger continues: »Production systems must be able to flexibly cushion disruptions and strengthen the role of humans as problem solvers. In terms of sustainability, it will be very important to retain the valuable experience and knowledge of people who will be retiring in the coming years. AI methods can also be used for this purpose, and they will be a greater focus of our research in the future.«
Pilot projects demonstrate how machines can provide practical support to humans. The Fraunhofer flagship project EMOTION uses wearable technologies, like sensor vests, to precisely measure workers’ fatigue levels. In the event of a failure, an autonomous vehicle equipped with a robotic arm seamlessly takes over pending tasks. Smart glasses document human workers’ steps and provide multimodal data that can be used to train artificial intelligence. This establishes a new form of collaboration in which humans and machines function symbiotically.
Despite significant advances in AI and robotics, these sectors still face considerable practical limitations. Humanoid intelligent robots, a form of embodied AI, have failed to match human performance in complex tasks. Autonomous vehicles have already demonstrated impressive performance in test environments. However, in densely populated urban areas, they face significant obstacles that sometimes exceed their capabilities.
In medical engineering, robotics undoubtedly enable precision, but human intuition and responsibility remain irreplaceable. Robots have already successfully performed autonomous operations on animals for experimental purposes. However, when it comes to human life, it is essential to consider ethical considerations and be willing to make decisions under pressure and take responsibility for them. AI can process huge amounts of data, but it often struggles with contextualization and the biases in algorithms make its use prone to errors. Discussions about hallucinations in language models illustrate that trust in technology cannot be taken for granted.
German industry leads the world in integrating production science, mechatronics, and mechanical engineering. Digitalization is not just a matter of information technology; it requires interdisciplinary cooperation between technology, organization, and industrial psychology. Successfully overcoming this challenge is absolutely crucial for differentiation in global competition.
German industry must pursue an approach that goes far beyond mere efficiency gains. Instead, it should focus on combining technology, experience, and human responsibility. Digital natives may have grown up with artificial intelligence and they may be less wary of and more accepting of this technology. On the other hand, they have their own challenges, such as the willingness to take responsibility and make decisions in the face of the increasing transfer of tasks to AI.
Integrating technology into economy and society is the most important task for the coming years. Technological expertise alone is not sufficient for effective change management. It is crucial that it is embedded in an organizational and social environment that promotes learning, strengthens responsibility, and empowers people to work productively with automated systems. The transformation of the world of work is not a sure-fire success.
Manufacturing companies must develop training concepts that prepare their employees for the networked manufacturing of the future. Supporting them in this endeavor is an important task for production science. Researchers at Fraunhofer IPK, in collaboration with partners in the KIRA Pro project, have developed AI solutions for small and medium-sized enterprises. These solutions are designed for the creation and execution of agile continuing education concepts. They guarantee access to continuing education opportunities that align with employees’ individual development paths and harmonize operational transformation strategies and skills development.
Research must also clarify how people can interact optimally with automated systems. Increasing the efficiency of machines is not enough. The key to success here is designing processes that tap into the full range of human abilities, including creativity, problem-solving skills, and a sense of responsibility. Politicians and society must proactively shape this change instead of passively enduring it. This demands an education policy that emphasizes teaching digital expertise and a labor market policy that facilitates further training and retraining. Trade unions and companies must establish new forms of cooperation in order to secure and develop jobs in a human-centered way.
Automation must not be an end in itself; it should be a tool for optimizing work processes. It ensures productivity, quality of work performance, and competitiveness. The crucial question is not the technical feasibility of automation, but its social acceptance and benefits. The value of technology is realized when it aligns with social and economic goals, as IG Metall representative Christoph Hahn underscores. »Transformation must not leave anyone behind. When processes change, social compensation plans, future collective agreements, location and employment pacts, training budgets, and fair transitions are needed to protect workers. Sustainable value creation
is only possible when know-how converges with co-determination and innovation.«
In this context, it is essential to link technological and organizational perspectives and create synergies. People are at the heart of the factory – now and in the future. Automation can help stabilize value creation, and ultimately it is people who benefit from this. The key to strengthening German industry lies not only in purchasing the right machines, but in the ability to combine technology and responsibility. Companies that take this path will use automation as an opportunity for innovation and make »change for the better« a reality.