More than half consumer packaged goods (CPG) manufacturers say inflation is the biggest external obstacle in 2023, while 42 per cent are accelerating digital transformation projects to keep pace with competitors, Rockwell Automation’s latest report into the CPG sector found.
In its eigthth annual State of Smart Manufacturing: CPG Edition, the industrial automation and digital transformation specialist interviewed executives at 216 CPG companies in 13 leading manufacturing countries.
Rockwell Automation strategic marketing manager – consumer packaged goods, Lee Coffey, said technology is increasingly being seen as the answer to industry challenges.
“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.
“Adapting to these changes requires agility, innovation, and a willingness to embrace new ways of working to survive and thrive in these uncertain times.
“The single most common way CPG leaders are mitigating risk – both internally and externally – is by adopting new technology,” Coffey said.
The report looks at the evolution of the CPG industry, particulary about balancing quality and profitable growth, the impact of process automation, and the adoption of smart manufacturing. It also examines the essential role of technology when mitigating risks, improving quality, keeping up with competitors, and maintaining business continuity.
Key global findings
- 52% of CPG manufacturers see inflation as their biggest external obstacle in 202;
- 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 20% of their operating budget on technology;
- the top three technology investments are cloud technology (45%), supply chain planning (42%), and cybersecurity (41%);
- 57% of businesses are using software to automate processes;
- 63% of businesses are using software to better track corporate data;
- 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,
- 38% of CPG manufacturers expect to repurpose their existing workforce due to technology adoption;
- 29% of CPG manufacturer assume they’ll hire more workers due to technology adoption;
- 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;
- 28% report smart manufacturing is helping mitigate cybersecurity risks;
- 95% of CPG manufacturers have ESG initiatives in place; and
- 44% of CPG manufacturers are pursuing sustainability and ESG initiatives as a competitive differentiator.
Click here for the full report.
Read More: EXCLUSIVE: CPG smart manufacturing report – Food & Drink Business
