After a quarter century, CRG Automation has learned that close customer relationships are no longer optional. Rather, collaboration-from challenge to solution-is a bedrock of the Louisville, Kentucky, custom engineer of automated solutions for the packaging and material handling industries. As a new member of PMMI, CRG sat down with OEM Magazine to share their story and offerings with fellow PMMI Members.
Can you provide a brief history of your company?
CRG Automation was founded in 2000 with a focus on refurbishing capital equipment. Acquired by James DeSmet in 2019, the company experienced rapid growth, landing it on the Inc 5000 list while earning numerous national company and product awards, including Fast Company's World Changing Ideas.
CRG Automation quickly developed a reputation for delivering sophisticated automation solutions in complex applications, including the high-profile chemical demilitarization of the US (DoD) stockpile. It now serves a variety of blue-chip commercial customers across the manufacturing, distribution, and packaging segments, designing and implementing custom-engineered systems and manufacturing high-performance equipment and machinery.
CRG successfully implemented an advanced automated palletizing and label application system for ProAmpac's six production lines.Photos courtesy of CRGWhat sets your company apart in the industry—what makes it shine?
CRG Automation recognizes that businesses need more than automation equipment; they need a partner in the automation journey. Our team comprises applications engineers, mechanical designers, controls engineers, shop technicians, and project managers, all committed to ensuring amazing results for the customer. We listen intently to our customers' goals and directly tie them to our recommendations. Collaboration is not optional; we seek input throughout the duration of the project, and we understand communication is key to a successful partnership. Last but certainly not least, CRG thrives when given a difficult challenge that others can’t or won’t address. Our focus on making the complex simple leads to amazing results on the production floor and enduring relationships with our customers.
What made the decision to join PMMI come about?
Everything that’s consumed must be packaged, whether it’s food, pharmaceuticals, or floss. However, no two products are the same, and the requirements for packaging efficiently, reliably, and safely can vary from industry to industry and company to company. An organization like PMMI brings together the best minds from all industries who are focused on packaging technology and best practices. For a company like CRG Automation, being at the leading edge and networking with customers, peers, and collaborators is a must.
Have you participated in any PMMI programs since becoming a member?
Yes! We have been a staple at PACK EXPO and are taking advantage of PMMI’s tuition and training reimbursement programs.
What’s your approach to new product development? How do you come up with ideas for new machines and market-test them?
It starts with a problem. (A customer’s problem, that is.) The odds are that if one customer experiences the challenge, other businesses do as well. And therein lies the genesis of a new product concept. We don’t sit around waiting for inspiration to strike; instead, we work closely with our customers to understand their operations and the issues they face. Working with a customer to create new products de-risks the investment and focuses your development team on the most important requirements.
How has your product line broadened over the years?CRG Automation's 50,000 sq ft manufacturing facility.Photos courtesy of CRG
We started the business with a single product—an intermittent motion cartoner—and have since expanded to include a wide range of automation solutions, including a corner board application system and a heavy-duty pallet stacker. We also sell packaged solutions such as robotic palletizers, print-and-apply labelers, and fully custom systems.
Do your machines incorporate PackML or other OMAC standards?
CRG Automation is familiar with the PackML standard and its underlying principles. While our systems are not strictly implemented using the PackML state model, we apply modern object-oriented programming practices with modularized code structures that follow a similar approach.
Our machine state models closely align with PackML’s standard states, including Stopped, Starting, Running, Stopping, Aborted, E-Stopped, and Resetting. These states support consistency in machine behavior and integration, which is a key goal of the PackML standard.
Can you share your annual investment in R+D (% of sales)?
Approximately seven percent of revenue is allocated for R&D investment annually.
Where do you find most of your employees? What sort of background or specific talents/skills do you look for?
Given our diversity of roles, we find people from all types of backgrounds – from farms to factories and everywhere in between. Often, we look for technical backgrounds (by education and/or trade) and a passion for creative problem-solving. Louisville and Kentucky are home to many large multinational engineering powerhouses, including GE Appliances, UPS Worldport, Ford Motor Company, and more. Additionally, our city’s namesake university has a highly reputable engineering school. Across all roles, we seek individuals who demonstrate curiosity, drive, and empathy.
Why do employees love working for your company?
Whether building equipment or the customer pipeline, CRG Automation is a company made for builders. Nobody sits on their hands, waiting for something to happen. Because the world is full of problems that need to be solved, opportunity exists around every corner. We work hard to attract the type of people who relish that mindset and thrive in an environment of “organized chaos.” Beyond competitive compensation and benefits, CRG offers an environment where people can quickly move up, take on more responsibility and directly impact the company's success while growing their careers.
Photos courtesy of CRGHow do you balance standardized machine configurations with those requiring customization?
Inherently, automation equipment requires some level of customization. We focus on standardizing what we can within our designs, but also building in the flexibility to customize in areas where we know a customer will have specific criteria. Documentation is one key element of making the equipment more standardized, but another is focusing on segments of the market that are likely to have similar requirements.
Are you incorporating lean manufacturing? If so, please give some examples.
Though we are not a traditional manufacturer, we apply lean principles wherever possible. For example, we employ 5S, GEMBA walks, visual job boards for project management, and mobile carts for project parts to reduce waste.
How do you approach project management? (i.e., dedicated customer- or market-specific managers or something different)
CRG Automation has multiple project managers who are assigned to accounts at kickoff. Their role is that of a “communicator in chief,” focusing on not only the customer but also all internal stakeholders responsible for the project's success. Our project managers don’t just sit behind a desk organizing schedules; they actively work with our supply chain team on procurement strategy, walk the customer’s facilities, manage factory acceptance testing, and troubleshoot anything that arises during the project's duration.
What’s your process for handling a customer’s initial inquiry and needs assessment?
Our sales personnel have engineering and automation backgrounds, and for good reason. It’s important to fully grasp a customer’s operations and goals and know what automation solutions exist to deliver a great outcome. We are active listeners and documenters, and we combine our automation expertise with our customers’ unique product/process knowledge to deliver the best long-term solution.
Once a customer issues a P.O., what happens next? What can they expect?
After a project manager and engineering team are assigned to a new project, a line layout review is prepared and presented to the customer to ensure that all process criteria are being accounted for and that the schedule aligns with the customer's business needs.
Following the line layout review, we kick off engineering design and initiate a design review of the completed 3D model and exact component list. Post-design review purchasing is then kicked off, and as materials are received, we begin assembly and testing of the system at our facility prior to Factory Acceptance Testing, where the customer ultimately signs off on the final system before shipment.
What influences a new machine's turnaround/delivery time, and what happens during this process?
Several factors can influence delivery time: long-lead-time components, the customer’s schedule/needs, and CRG Automation’s internal capacity across teams. CRG Automation’s proposal details a timeline to ensure all parties are aligned with the key milestones and final delivery date. Additionally, our project management team provides the customer with a weekly status update that documents progress, risks, and timelines.
What’s the process for Factory Acceptance Tests?
We love hosting customers in our state-of-the-art automation facility! When customers visit for factory acceptance testing, we walk them through a series of operational checks, requiring their signoff every step of the way. We also spend some time with them documenting their questions or requests, as it’s a final opportunity to tweak a system before disassembly and shipping.
How do you handle field service and training? Do you have dedicated training personnel, or do Service Technicians typically conduct training?
CRG Automation’s project managers typically lead field service and support, pulling in the appropriate internal resources (for example, a controls engineer) for subject matter expertise. We've also incorporated remote support services to accounts, particularly those not located within a reasonably short drive of our headquarters. Systems like those offered by Olis Robotics have been a game-changer for remote monitoring, diagnostics and troubleshooting.
Do you have any plans for facility expansion or new operations?Photos courtesy of CRG
Yes! Our plans are not firm, but we forecast our floor space to be near/at capacity this year and anticipate kicking off the search for additional square footage. We’re also actively evaluating businesses for acquisition to accelerate our expansion.
What challenges do you foresee affecting your firm and all companies in this industry?
Hiring top talent will always impose certain constraints, but we never compromise on the quality of individuals we bring into the organization. In addition to employee attraction and retention, macroeconomic conditions have been affected by uncertainty—interest rates, tariffs, inflation, you name it. During tumultuous or uncertain times, businesses tend to adopt conservative approaches, which can present challenges for the automation industry overall. However, we also recognize several factors driving the industry forward, such as technological advancements, onshoring trends, and low labor force participation.
Any other thoughts on the future?
Customer-centric businesses thrive over time. Our organization has an open-minded approach and agility that enables us to adapt during periods of change or uncertainty. We are highly optimistic that the next ten years will bring substantial opportunities for the packaging automation industry. By staying at the forefront of technology and concentrating on addressing customer challenges, we aim to extend our past success into the future!
Company Background
When established: 2000
Range of products: Industrial automation equipment, ranging from automatic cartoners to pallet stackers and fully custom solutions.
Executive team: James DeSmet, CEO | Paul Lauritzen, COO | Alex Reed, CCO | Dillon Sego, VP Engineering and Sales
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