Workforce challenges emerge as a top concern among CPG manufacturers

By OEM Update Editorial July 10, 2024 6:30 pm

Global study reveals critical workforce issues, rising technology budgets, and evolving strategic priorities for CPG manufacturers.

Rockwell Automation, Inc., the company dedicated to industrial automation and digital transformation, announced the results of the 9th annual “State of Smart Manufacturing Report: CPG Edition.” The global study encompasses the responses of 158 leaders from CPG (Consumer packaged goods) manufacturers, inclusive of home and personal care, as well as food and beverage manufacturers, across 17 of the leading manufacturing countries.

This year’s report highlights the evolution of the CPG industry, specifically about utilizing emerging technologies to maximize workforce potential, improve forward planning and minimize risk. CPG leaders acknowledge that neglecting to adapt to the industry’s transformation can stifle growth and competitiveness, especially considering that the manufacturing sector could see up to 2.1 million unfilled jobs by 2030 if current workforce challenges are not addressed.

The State of Smart Manufacturing Report reveals several key global findings for 2024. Workforce issues, inflation, and the energy crisis emerge as the top external obstacles faced by CPG manufacturers. Despite these challenges, 86 percent of CPG manufacturers are either using or evaluating smart manufacturing technology. This trend is underscored by a 26 percent year-over-year increase in technology investments, now comprising 27 percent of operating budgets. Notably, blockchain technology ranks second among the top 10 investment areas for CPG manufacturers. However, training current employees on new processes remains the leading workforce-related challenge. Additionally, product quality stands out as the most critical factor in CPG manufacturers’ ESG programs.

Dilip Sawhney, Managing Director, Rockwell Automation India, said: “India’s CPG sector is at a pivotal juncture, where the integration of advanced technologies with a well-trained workforce is crucial to address industry’s evolving business challenges and sustainability goals. We are committed to supporting Indian CPG manufacturers on their journey towards smart manufacturing. By leveraging our deep industry expertise and comprehensive solutions, we aim to help companies meet current demands, strengthen competitiveness, build resiliency, drive innovation, and achieve long-term success.”

CPG manufacturers are prioritizing technologies, including smart manufacturing and automation, that enhance and augment the value of their employees to attract, engage and retain their workforce. 

The full findings of the report can be found here.