Consumer brand manufacturers face a litany of challenges, not the least of which are supply chain distribution businesses and a weaker economy.

But a new survey of consumer-brand manufacturers from Rockwell Automation shows CEOs rely on digital technology and process transformation to solve challenges, gain efficiencies and improve sales.

Lee Coffey, Director of Global Strategic Marketing, CPG, Rockwell Automation

“The consumer packaged goods industry has been hit hard by a perfect storm of challenges over the past year, with supply chain disruptions, worker shortages and inflation all contributing to dramatic impact on business,” said Lee Coffey, global 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.”

The technology is increasingly seen as the answer to many of the challenges facing CPG leaders, Rockwell says. According to the survey of 216 CPG manufacturers in 13 countries, the most common way for CPG leaders to mitigate risk – both internally and externally – is to adopt innovative technology.

Specific results include:

• 52% of GIC manufacturers rate inflation as their biggest external hurdle in 2023.
• 42% of companies are accelerating their digital transformation to keep pace with competitors, while 44% are doing so to improve quality.
• On average, CPG companies invest just over a fifth of their operating budget in technology, with the top three investments being in cloud technology (45%), supply chain planning (42%) and cybersecurity (41%).
• 57% of companies use software to automate processes and 63% use it to better track company 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 through technology, with 38% planning to reallocate their existing workforce and 29% assuming they will hire more workers due to the adoption of technology.
• In practice, 31% of CPG manufacturers say smart manufacturing initiatives have helped cope with the impact of the COVID-19 pandemic and keep pace with market transformations.

“Technology is increasingly seen as the answer to many of the challenges facing CPG leaders,” says Rockwell. “The most common way for CPG leaders to mitigate risk – both internally and externally – is to adopt new technologies.”

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