Automation booming in Food and Beverage Industry

  • November 27, 2012
  • ARC Advisory Group
  • News
November 27, 2012 - Automation expenditures in the food and beverage industry are expected to reach $7 billion by 2016. “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,” according 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. 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 un-precedented levels of accountability and the evolution to the transparent enterprise.
ARC’s “Automation Expenditures for Food and Beverage Industry Global Market Research Study” will help users learn what others in the industry are doing and the capabilities of each supplier. The study discusses strategies and tactics for suppliers and user manufacturers to be successful in the rapidly changing environment of the worldwide food and beverage industry.
Opportunities and Challenges
Some key questions food and beverage manufacturers are trying to answer are:
• How do I address the fluctuating price and availability of commodi-ties?
• How do I reduce my energy and other utilities costs and ensure the long term availability of these resources?
• How do I find and evaluate new technology that will support innova-tion and speed time-to-market?
• How do I find and evaluate technology that will improve my manufacturing efficiency and effectiveness?
• How do I come up with new ideas or equipment that allow multi-tasking and that can reduce change over time?
• How do I reduce my manufacturing cycle time?
• What are the best metrics to support future manufacturing require-ments?
• What are the leading best practices in the industry, in manufacturing in general, for sustainable manufacturing?
• What is my competition doing?
• How do I support my ever expanding manufacturing and business automation systems and networks?
• What are other companies doing to improve the skill sets of their operators and staffs?
About ARC: Founded in 1986, ARC Advisory Group is the leading re-search and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. 
Learn More

Did you enjoy this great article?

Check out our free e-newsletters to read more great articles..