Manufacturing AUTOMATION

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Automation expenditures to grow in food and beverage industry


December 5, 2012
By Manufacturing AUTOMATION

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Automation expenditures in the food and beverage industry are expected to reach $7 billion by 2016, according to new research from ARC Advisory Group.

“The information architecture is extending its reach all the way to the consumer by way of social networks and a new generation of 3D virtual on-line shopping and on-line product customization tools.  It is becoming an important solution in the drive toward mass customization and has begun to change the way consumer facing business is conducted,” said to principal analyst for the CPG Industries John Blanchard, the principal author of ARC’s “Automation Expenditures for Food and Beverage Industry Global Market Research Study.”

The major areas of focus in food and beverage manufacturing are margin protection and cost containment, innovation and time to profitability, food safety, more sustainable manufacturing focused on energy usage and waste reduction, and minimizing brand risk.  

Packaging is becoming increasingly important as an emotional selling point due to intense competition and more difficulty in achieving sustainable competitive advantage via functional differentiation.  Since most CPG companies have similar business strategies, flawless and timely execution differentiates leading companies from their competitors.  

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Innovation and flawless and timely execution have helped leading companies make manufacturing a competitive advantage.  The convergence of food safety, sustainable manufacturing, and new regulatory requirements is leading to unprecedented levels of accountability and the evolution to the transparent enterprise.