Automation’s Catch-22: CPGs Eye Expansion, But Costs and Constraints Persist

End users see automation as a solution to labor shortages, but space limitations, high costs, and line complexity force many to take a gradual approach.

Insidethe Workforce Gap
PMMI Business Intelligence: 2025 Inside the Workforce Gap

Despite widespread labor shortages, many CPG manufacturers report limited automation in key operations. While plans are underway to expand automation, barriers such as cost, space, and flexibility limit adoption. Screenshot 2025 12 12 At 3 24 33 PmPMMI Business Intelligence: 2025 Inside the Workforce Gap

According to the 2025 Inside the Workforce Gap report by PMMI, The Association for Packaging and Processing Technologies, only 42% of CPGs currently automate loading/unloading, while even fewer have automated tasks like warehousing (23%), quality inspection (22%), and changeovers (13%). A surprising 35% reported no automation in any of the listed areas.

However, CPGs say automation usage is expected to increase. The Business Intelligence team finds that over the next 1-3 years, 64% plan to automate or expand loading/unloading, and over 50% anticipate expansion in changeovers and quality inspection.

Automation is no longer seen as synonymous with job replacement. Instead automation can help compensate for workforce shortages and make existing staff more effective, by augmenting the workforce.

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