New Rockwell Automation Study Shows CPG Industry Focus on Innovation Instead of Cost-Cutting

Rockwell Automation's Latest Findings on the CPG Industry

The 10th annual State of Smart Manufacturing Report, focusing on the Consumer Packaged Goods (CPG) sector, released by Rockwell Automation, highlights an essential pivot among CPG manufacturers towards innovation instead of cost-cutting measures amid growing market challenges. This comprehensive survey, based on insights from 174 CPG leaders across 15 countries, illustrates how the industry is navigating a complex landscape influenced by economic uncertainties and evolving consumer expectations.

Market Pressures on CPG Companies

The CPG industry is currently facing several pressures, including the rapid expansion of store brands, increasing consumer expectations for sustainability, and the demand for faster innovation cycles. Furthermore, building and maintaining consumer loyalty has become increasingly difficult, as expectations for product customization and transparency rise. In response to these challenges, CPG companies are moving away from limited technology pilots, opting instead for investments that yield measurable improvements throughout their organizations.

The report sheds light on notable trends observed from 2024 to 2025. Rising competition stands out as a significant concern, superseding economic factors such as inflation to become the primary challenge noted by industry leaders. This increase in concern reflects heightened market pressure from private labels and shifting consumer purchasing habits.

Prioritizing Technology and Workforce Development

A crucial insight from the report is that CPG companies are now focusing less on merely adopting new technologies and more on ensuring that these technologies integrate well with their teams and operations. Usability and scalability have emerged as critical criteria for making technological decisions. Key workforce capabilities that CPG leaders value include communication and teamwork (86%), adaptability and flexibility (85%), with analytical thinking and cybersecurity practices closely following at 84%.

Moreover, artificial intelligence (AI) and robotics have become paramount investment priorities. A striking 70% of manufacturers are allocating resources towards AI, robotics, and simulation technologies with the objective of long-term business growth. This reflects a significant shift from previous years, where technological investments primarily supported sales analytics and process optimization.

The report also noted a substantial increase in the effective use of data. The percentage of manufacturers utilizing data to guide decision-making has risen from 40% in 2024 to 44% in 2025. AI's influence is expanding, especially in critical areas like quality control, logistics, and cybersecurity, where its effectiveness exceeds the general average by 5%.

Evolving Workforce Strategies

The dynamics of workforce strategies are changing as well. While the 2024 report emphasized attracting skilled labor, the 2025 findings reveal that 34% of manufacturers are prioritizing training current employees on updated processes. Additionally, 33% are focusing on managing change effectively and enhancing employee retention.

Steve Deitzer, vice president of Global Industry, CPG at Rockwell Automation, articulated a significant departure from a reactive stance to disruption, explaining, "CPG manufacturers are no longer just reacting to disruption—they're proactively investing in technologies that deliver sustainable growth and competitive advantage. This year's report showcases a clear pivot toward fostering long-term strategies where AI, automation, and workforce enablement are central to achieving success."

This shift signifies that scalability and integration are now foundational elements in how CPG leaders approach growth. By harmonizing their technological implementations, workforce strategies, and operational processes, companies are moving toward building more agile and efficient operations capable of responding swiftly to market changes.

Conclusion and Future Insights

The 2025 State of Smart Manufacturing Report underscores the dedication of CPG companies to innovate and adapt to increasingly complex market demands. The full findings of the report reveal crucial insights that can guide industry professionals toward more strategic decisions.

In conclusion, the trend towards prioritizing innovation over cost-cutting presents a strategic approach to build resilience in CPG manufacturing. As highlighted by Rockwell Automation’s report, the future of the CPG industry hinges on embracing technology and fostering an adaptable workforce aligned to meet evolving consumer demands.