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Rockwell Automation Report Finds CPG Industry Prioritizing Innovation Over Cost-Cutting

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Rockwell Automation (NYSE: ROK) has released its 10th annual State of Smart Manufacturing Report focusing on the Consumer Packaged Goods (CPG) industry. The report reveals a significant shift in industry priorities, with manufacturers now emphasizing innovation and long-term growth over cost-cutting measures.

Key findings show that 70% of CPG manufacturers are investing in AI, robotics, and simulation technologies for business growth. Data utilization for decision-making increased from 40% in 2024 to 44% in 2025. The report also highlights evolving workforce strategies, with 34% of manufacturers focusing on training current employees and 33% prioritizing change management and retention.

The study, based on insights from 174 CPG leaders across 15 countries, indicates that competition has surpassed economic uncertainty as the primary industry concern, driven by private-label products and changing consumer behaviors.

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Positive

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Negative

  • Increasing competitive pressure from private-label brands threatening market share
  • Rising challenges in maintaining consumer loyalty
  • Complex market demands requiring significant technological adaptation

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Research shows CPG leaders are investing in AI and talent to stay competitive

MILWAUKEE, Aug. 19, 2025 /PRNewswire/ -- Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced the results of the 10th annual State of Smart Manufacturing Report: Consumer Packaged Goods (CPG) Edition. The findings highlight how manufacturers are placing greater importance on innovation, workforce development, and long-term growth strategies.

The CPG industry is facing pressure on multiple fronts, from the growth of store brands to the demand for faster innovation and more sustainable products. At the same time, consumer loyalty is harder to earn, and expectations for customization and transparency are rising. In response to this, CPG companies are moving away from small-scale technology pilots and investing in solutions that deliver measurable results across the organization.

The combination of workforce training, better use of data, and more adaptable systems is helping these manufacturers stay competitive while managing complexity. And as private-label brands expand and consumer expectations evolve, CPG leaders are prioritizing investments that help them compete more effectively in a crowded and fast-changing market.

Notable Key Trends from 2024 to 2025:

Rising Competition Leads Industry Concerns:

In 2024, economic uncertainty and inflation were main challenges noted in our annual survey. In 2025, competition has taken the lead, driven by increased market pressure from private-label products and changing consumer buying habits.

Technology Needs to Work for People:

Companies are focusing less on simply adopting new tools and more on making sure new technology fits their teams and operations. Usability and scalability are now critical factors in technological decisions. Capabilities CPG leaders are looking for in their workforce include: communications/teamwork (86%), adaptability/flexibility (85%), while analytical thinking and cybersecurity practices are tied (84%).

AI and Robotics Lead Investment Priorities: 

At the heart of technology investment decisions is a shift in thinking. 70% of CPG manufacturers say they are investing in AI, robotics, and simulation technologies for long-term business growth. This is a shift from last year when technology supported more sales analytics and process optimization.

More companies are using data effectively

The number of manufacturers who say they are using their data to guide decision-making is up from 40% in 2024 to 44% in 2025. AI is playing a growing role in data utilization in key areas like quality control, logistics, and cybersecurity, scoring 5% above the general average.

Workforce strategies are evolving

While 2024 emphasized attracting skilled labor, the 2025 report shows 34% of manufacturers are concentrating more on training current employees on updated processes, while 33% of the focus is on managing change effectively and improving employee retention.

"CPG manufacturers are no longer just reacting to disruption—they're proactively investing in technologies that deliver sustainable growth and competitive advantage," said Steve Deitzer, vice president, Global Industry, CPG, Rockwell Automation. "This year's report shows a clear pivot toward long-term thinking, where AI, automation, and workforce enablement are central to success."

Scalability and integration are now central to how CPG leaders approach growth. By aligning technology, people and processes, companies are working to build more agile and efficient operations that can keep up with market changes.

The 2025 State of Smart Manufacturing Report, based on insights from 174 CPG leaders across 15 countries, is part of Rockwell Automation's broader global research initiative surveying over 1,500 manufacturing decision-makers. The full findings of the report can be found here.

About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 27,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit  www.rockwellautomation.com.

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SOURCE Rockwell Automation, Inc.

FAQ

What are the key findings of Rockwell Automation's 2025 CPG manufacturing report?

The report reveals that 70% of CPG manufacturers are investing in AI and robotics for growth, data utilization increased to 44%, and companies are prioritizing workforce development with 34% focusing on employee training.

How has ROK's manufacturing data utilization changed from 2024 to 2025?

Data utilization for decision-making in manufacturing increased from 40% in 2024 to 44% in 2025, with AI playing a growing role in quality control, logistics, and cybersecurity.

What are the top workforce priorities for CPG manufacturers according to Rockwell's 2025 report?

The top workforce priorities include communications/teamwork (86%), adaptability/flexibility (85%), and analytical thinking and cybersecurity practices (both at 84%).

What is the biggest challenge facing CPG manufacturers in 2025 according to ROK's report?

Competition has become the primary concern in 2025, particularly driven by increased market pressure from private-label products and changing consumer buying habits, replacing economic uncertainty as the main challenge.

How many CPG leaders participated in Rockwell Automation's 2025 manufacturing survey?

The report is based on insights from 174 CPG leaders across 15 countries, part of a broader global research initiative surveying over 1,500 manufacturing decision-makers.