How CPG Plants Tackle SKU Growth and Labor Shortages with Automation

The manufacturing landscape is shifting rapidly. With SKU proliferation at an all-time high and labor markets remaining stubbornly tight, CPG manufacturers are rethinking their end-of-line strategies. We break down the latest trends in case packing and palletizing automation and what they mean for your plant's resilience.

Q: Why is end-of-line automation becoming such a critical priority for food manufacturers right now?

A: It really comes down to the labor market. The labor shortage affecting food manufacturing is particularly pronounced in end-of-line roles. Case packing and palletizing require sustained, repetitive lifting across full shifts. It’s physically demanding work, which makes hiring and retaining employees incredibly challenging. Because of this, labor availability—rather than just cost reduction—is consistently cited as the primary driver for automating these tasks.

Q: How is the explosion of new SKUs impacting case packing and palletizing?

A: The number of SKUs moving through a typical food manufacturing facility has grown considerably over the past decade. Consumers want more flavors, more sizes, and more seasonal or regional variants. The shelf demands variety, and the production floor has to deliver it.

At the end of the line, this variety translates into a complex case packing and palletizing problem. Lines must be able to handle greater variety and execute faster format changes to keep up with production schedules without causing bottlenecks.

Q: Are manufacturers actually pulling the trigger on these investments?

A: Absolutely. The investment data shows a massive shift. The food and consumer goods sector was the fastest-growing segment for North American robot orders in both 2024 and 2025. In fact, robot orders in this sector jumped 105% year-over-year in Q3 2025 alone. Manufacturers are realizing that to stay competitive, they have to automate.

Q: What should plant operations managers and packaging engineers look for in modern palletizing systems?

A: The biggest game-changer right now is self-service, software-driven configuration. You want palletizing systems that store pattern recipes and allow your own plant staff to manage them without needing outside assistance from the vendor's service team.

When your team can manage format changes internally, it drastically reduces the operational friction of SKU changes. Keeping that control in the hands of plant staff accelerates changeovers and supports a much broader SKU portfolio.

Q: What does the ROI look like for these end-of-line investments?

A: The business case is very strong. End-of-line automation investments, including case packing and palletizing, can achieve payback in just 12 to 24 months in high-volume, high-overtime environments. And as mentioned earlier, keeping format changes in the hands of your plant staff shortens the path to that return by minimizing downtime and service costs.

Q: What is the biggest takeaway for CPG leaders planning their 2026 roadmaps?

A: The conversation around automation has fundamentally shifted. It is no longer primarily about cost reduction. It’s about resilience . It’s about building a line that can keep running as product lines grow, labor markets remain tight, and the pace of format changes shows no sign of slowing down. Adaptability is the new competitive differentiator.

Ready to build more resilience into your end-of-line operations? Discover how our flexible case packing and palletizing solutions can help your plant adapt to SKU growth and labor challenges.