Manufacturers in the consumer packaged goods sector are pivoting toward technology and workforce strategies designed for sustainable growth rather than short-term savings. Rockwell Automation’s 10th annual State of Smart Manufacturing Report: Consumer Packaged Goods (CPG) Edition shows a decisive move away from one-off pilots and cost containment, with investments increasingly targeted at scalable tools, data-driven decision-making, and employee development.
Rising Competition and Changing Consumer Pressures
The 2025 findings highlight competition as the top challenge facing CPG companies, overtaking economic uncertainty and inflation, which dominated concerns in 2024. The rise of private-label brands, shifts in buying behavior, and consumer expectations for faster innovation and product transparency are intensifying market pressure. To stay competitive, manufacturers are emphasizing technology that integrates smoothly with operations rather than simply adopting the latest tools.
According to the survey, workforce capabilities rank as a central success factor. Communication and teamwork (86%), adaptability (85%), and analytical skills and cybersecurity practices (84%) were cited as the most valuable traits. This underscores the industry’s focus on ensuring people can work effectively with new technologies, rather than being overwhelmed by them.
AI, Robotics, and Data Utilization Gain Ground
Seventy percent of respondents said they are investing in AI, robotics, and simulation technologies to secure long-term growth, a marked shift from 2024, when investment leaned more heavily on sales analytics and process optimization. Data-driven decision-making is also gaining traction, with 44% of manufacturers reporting they now use data consistently to guide operations, up from 40% last year. AI applications are advancing fastest in quality control, logistics, and cybersecurity, outperforming adoption rates across other manufacturing sectors.
Workforce strategies are evolving in parallel. Rather than focusing solely on recruiting skilled labor, 34% of manufacturers are prioritizing retraining current employees on updated processes, while 33% are concentrating on change management and retention efforts. This shift reflects the understanding that scaling digital initiatives requires employee buy-in and fluency with new systems as much as it requires capital investment.
Looking Beyond the Obvious Efficiency Play
The emphasis on scalability and integration suggests that CPG manufacturers are reframing innovation not as a cost-efficiency exercise but as a long-term architecture for growth. What often goes overlooked is that these investments also position companies to respond more quickly to regulatory requirements, such as packaging sustainability mandates emerging in the U.S. and Europe. By aligning people, processes, and technology today, firms are creating the operational resilience needed to withstand the next wave of disruption, whether competitive, regulatory, or geopolitical.