A global survey from Rockwell Automation reveals the top challenges and opportunities of new technology for the global consumer packaged goods (CPG) industry, focusing on navigating inflation, supply chain disruptions, and more.
MILWAUKEE—July 2023—Rockwell Automation, Inc., the global leader in industrial automation and digital transformation, recently disclosed the findings of its 8th annual “State of Smart Manufacturing: CPG Edition” study. The research incorporates responses from 216 Consumer Packaged Goods (CPG) leaders across 13 of the world’s most industrious nations.
This year’s report underscores the transformation within the CPG industry, encompassing home and personal care and food and beverage manufacturers. It specifically highlights the struggle to balance quality and profitable growth, the influence of process automation, the uptake of smart manufacturing, and the pivotal role of technology in mitigating risks, enhancing quality, staying competitive, and ensuring business continuity.
- 52% of CPG manufacturers see inflation as their biggest external obstacle in 2023.
- 42% of businesses are accelerating their digital transformation to keep pace with competitors, while 44% are doing so to improve quality.
- On average, businesses in CPG invest just over one-fifth of their operating budget on technology with the top three investments in cloud technology (45%), supply chain planning (42%), and cybersecurity (41%).
- 57% of businesses are using software to automate processes and 63% are using it to better track corporate data. Notably, 48% of leaders are increasing process automation to address labor shortages.
- 90% of CPG manufacturers believe they will maintain or increase the size of their workforce as a result of technology, with 38% expecting to repurpose their existing workforce and 29% assuming they’ll hire more workers due to technology adoption.
- In practice, 31% of CPG manufacturers report smart manufacturing initiatives have helped deal with the impact of the COVID-19 pandemic and keep pace with market transformations. Additionally, 28% report smart manufacturing is helping them mitigate cybersecurity risks.
- 95% of CPG manufacturers have ESG initiatives in place, with 44% pursuing sustainability and ESG initiatives as a competitive differentiator.
“The CPG industry has been hit hard by a perfect storm of challenges over the last year, with disruptions in the supply chain, a shortage of workers, and inflation all contributing to a dramatic impact on businesses,” said Lee Coffey, strategic marketing manager – consumer packaged goods, Rockwell Automation. “Adapting to these changes requires agility, innovation, and a willingness to embrace new ways of working to survive and thrive in these uncertain times.”
Technology is increasingly being seen as the answer to many of the challenges CPG leaders face. The single most common way CPG leaders are mitigating risk – both internally and externally – is by adopting new technology.
“Rockwell understands the CPG industry is constantly evolving, and we are committed to providing companies around the world with the expertise and solutions they need to succeed,” said Coffey. “With our dynamic portfolio of industry solutions and extensive partner ecosystem, we are uniquely positioned to serve as a trusted advisor in this space. Whether companies are just starting their digital transformation journey or are already advanced in smart manufacturing, Rockwell can meet them where they are and help drive innovative growth that delivers real results.”
The full findings of the report can be found here.
This study draws on the insights of 216 leaders in the Consumer Packaged Goods (CPG) industry, spanning 13 different nations. The report’s definition of the CPG sector includes Home and Personal Care (encompassing health and beauty, and household products), as well as Food and Beverage manufacturers. This research forms part of the 8th annual iteration of the State of Smart Manufacturing Report. This wider study collected feedback from 1,353 managerial and leadership figures across various manufacturing sectors. The report was compiled through a collaborative effort between Sapio Research and Rockwell Automation.
About Rockwell Automation
As a global forerunner in industrial automation and digital transformation, Rockwell Automation, Inc. (NYSE: ROK) marries human ingenuity with technological potential, pushing the bounds of human achievement to cultivate a more efficient, sustainable world. With its headquarters located in Milwaukee, Wisconsin, Rockwell Automation comprises a dedicated team of approximately 28,000 problem solvers, serving customers in over 100 countries globally. Discover more at www.rockwellautomation.com.