Workforce shortages, inflation impacts and energy costs are the top external obstacles for consumer packaged goods (CPG) manufacturers in 2024, according to the 9th annual “State of smart manufacturing report: CPG edition” by Rockwell Automation. Results of the global survey released on July 10 consist of responses from 158 CPG leaders of home, personal care, food and beverage companies in 17 countries.
The respondents report they’re using emerging technologies to maximize workforce potential, improve planning and minimize risk. These technologies include smart manufacturing and automation, which can enhance and augment the value of employees, and help their companies to attract, engage and retain personnel.
The respondents also acknowledge that neglecting to adapt to the CPG industry's transformation can stifle growth and competitiveness, especially because the overall manufacturing sector could experience as many as 2.1 million unfilled jobs by 2030 if present workforce needs aren’t addressed.
The study also found that:
- 86% of CPG manufacturers are using or evaluating smart manufacturing technologies in 2024.
- Technology investments increased by 26 percentage points year-over-year from 21% to 27% of the companies’ operating budgets.
- Blockchain technology is one of the top 10 investment areas for CPG manufacturers in 2024, ranking second overall.
- Training present employees about new processes is the top workforce-related challenge for CPG manufacturers this year.
- Product quality is what matters most to CPG manufacturers’ environmental, social and governance (ESG) programs.
“As CPG manufacturing leaders navigate a complex and evolving landscape, they’re realizing that supporting their workforce will be a critical factor for success,” says Steve Deitzer, global industry VP for CPG at Rockwell. “This year’s report underscores the need for CPG manufacturers to prioritize workforce development because ensuring employees are well-trained and equipped to leverage emerging technologies will be essential for overcoming industry challenges and achieving sustainable growth.”
The survey’s full results are available here.
