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Innovation Over Cost-Cutting: Insights from Rockwell Automation

In a compelling report, Rockwell Automation, a global leader in industrial automation and digital transformation, unveiled the significant trends transforming the consumer packaged goods (CPG) sector. Released on August 19, 2025, the 10th annual "Smart Manufacturing State Report - CPG Edition" sheds light on how companies in this industry are increasingly emphasizing innovation and long-term growth strategies amidst rising competition.

Evolution of the CPG Sector

The CPG sector faces manifold pressures today, ranging from the growth of private label brands to heightened consumer expectations for rapid innovation and more sustainable products. As customer loyalty becomes harder to obtain, manufacturers are shifting their tactics, moving away from small-scale pilot projects and opting for large-scale solutions that yield measurable outcomes. This strategic pivot is designed not only to manage complexity but also to enhance competitiveness in a rapidly evolving market.

Key Trends for 2024-2025

Competition Becomes a Primary Concern

The report highlights that the intensified competition has emerged as the principal focus for CPG leaders. In 2024, inflation and economic uncertainty were the main challenges; however, by 2025, competition, driven by evolving consumer purchasing habits and the encroachment of private label brands, overtook these concerns.

Technology for People, Not Just Processes

An interesting shift noted in the report is that companies are prioritizing the adaptation of new technologies to their teams and operations, rather than merely adopting new tools. Decision-making processes now heavily weigh user-friendliness and scalability as critical factors in technology investments.

Skills in Demand

Moreover, the report reveals that communication and teamwork skills are highly sought after, with 86% of leaders emphasizing their importance. Similarly, adaptability and flexibility were highlighted at 85%, while analytical thinking and cybersecurity practices were equally regarded at 84%.

Investment Priorities: AI and Robotics

In a notable shift in mindset, 70% of CPG manufacturers are investing in artificial intelligence (AI), robotics, and simulation technologies to secure long-term commercial growth. This marks a move away from previous investments focused on sales analytics and process optimization toward technologies that can substantially enhance operational efficiencies.

Data Utilization on the Rise

The effective use of data is becoming more prevalent within the industry. The percentage of manufacturers leveraging data to inform their decisions has grown from 40% in 2024 to 44% in 2025. This trend signifies an increasing reliance on AI, which is now integral in areas such as quality control, logistics, and cybersecurity, noted for exceeding average performance ratings by 5%.

Shifting Workforce Strategies

While last year’s report concentrated on recruiting skilled labor, the latest insights reveal a substantial focus on training existing employees in updated processes, with 34% of manufacturers prioritizing this approach. Additionally, 33% are focusing on effective change management and improving talent retention.

A Sustainable Path Forward

Steve Deitzer, Vice President of Global Industry at Rockwell Automation, stated, "CPG manufacturers are no longer just reacting to disruptions; they are proactively investing in technologies that ensure sustainable growth and a competitive edge." This year's findings indicate a strategic pivot towards long-term thinking, where AI, automation, and workforce development are considered critical success factors.

Overall, the 2025 Smart Manufacturing State Report, derived from insights gathered from 174 CPG executives across 15 countries, emphasizes the importance of aligning technology, workforce, and processes. This alignment promises to deliver more agile and efficient operations designed to adapt to market dynamics.

Conclusion

As the CPG sector continues to navigate complex challenges, the commitment to innovation, talent development, and the strategic utilization of technology positions these manufacturers not just to survive but to thrive in a competitive landscape. For a detailed analysis, the complete report is available online.