Is colored lighting in industrial photography outdated?

I don't think the problem is colored lighting itself. I think the problem is the choice of colors used by the previous 2003 photographer. I think this shot could look great...if the colors chosen were a bit different. Something better suited to industry. There are a few ways that could be done.

The "red" is absolutely horrid, and the blue is too soft. They have an almost pastel look, a creamy soft effect that just doesn't really fit the scene being photographed. I think a better contrast, such as a cooler, harsher blue and an actual orange that has a clearly warm balance would make for a better shot, and probably enhance the skin tones. As it stands, the reddish light absolutely ruins the skin tones on the worker's hand.

An alternative would be to go with a single color balance entirely. Cool lighting (bluer/whiter) is often well suited to industrial scenes that involve machining and part construction. Alternatively, of what you are photographing has to do more with the smelting process, the working of metals, coking, etc. a warmer balance might be better.

Additionally, keeping your photos very sharp might help enhance the stark, clean, industrial feel. High sharpness would probably go better with a cool balance than a warm balance, but sparks showered from smelting and metal working processes look great when they are very sharp.

Colored lighting in photography is not necessarily a bad thing...its just that the choice of colors and the way they were blended in the sample photograph you posted is rather poor (to use the kindest word.)