Ageing machinery and skills gaps challenge packaging industry

Ageing equipment, growing demand for automation and shortages of skilled engineers are putting pressure on packaging manufacturers. Modernising production requires targeted investment in machinery, digital systems and workforce development.

Packaging manufacturers face mounting pressure to modernise production, improve efficiency and meet changing customer and regulatory requirements. Artificial intelligence (AI), robotics and digital technologies offer opportunities to improve operations, but ageing machinery and shortages of skilled engineers can make these technologies difficult to adopt.

The challenge extends beyond equipment. Modern packaging lines need engineers and technicians who understand mechanical and electrical systems, automation, software and sustainable manufacturing. Recruiting and retaining people with these skills is becoming increasingly important as manufacturers compete with other industries for technical talent.

These pressures are closely connected. Older machinery can limit automation, skills shortages can delay upgrades, and investment constraints can slow improvements in productivity and environmental performance.

Bridging the gap requires a coordinated approach to equipment modernisation, digital integration and workforce development.

Ageing machinery complicates packaging modernisation

Packaging production relies on equipment ranging from filling and sealing lines to conveyors, labelling machines, case packers and palletisers. Many manufacturers continue to use machinery that has operated reliably for years.

Replacing an entire production line can require substantial capital investment and cause significant disruption. Manufacturers therefore often extend equipment life through maintenance, component replacement and selective upgrades.

However, older machinery can present obstacles when businesses introduce automation and digital monitoring.

Some legacy equipment lacks the sensors, communication interfaces and control systems needed to collect and share production data. This can make it difficult to monitor performance in real time, identify recurring faults or connect machines to wider factory management systems.

Compatibility is another concern. New robotics, software and automated equipment may not communicate effectively with older machinery, increasing the complexity and cost of integration.

These problems are particularly relevant to factories operating equipment from several suppliers. When systems cannot exchange information reliably, production data remains fragmented and opportunities to improve efficiency may be missed.

Manufacturers must therefore assess which machines can be upgraded economically and which have reached the point where replacement is the better option.

AI and automation offer opportunities for packaging production

AI and industrial automation can help packaging manufacturers improve productivity, quality control and equipment reliability.

Machine vision systems can inspect packaging for defects, incorrect labels, damaged seals and other quality problems. Automated inspection can improve consistency and reduce reliance on repetitive manual checks.

AI-based analytics can also support predictive maintenance. When machinery has suitable sensors and reliable operational data, monitoring systems can identify unusual conditions and signs of equipment deterioration before a failure occurs.

This allows maintenance teams to investigate problems earlier and plan repairs, potentially reducing unexpected production stoppages. However, predictive maintenance depends on data quality, suitable monitoring equipment and reliable analytical models. It cannot replace routine maintenance or engineering judgement.

Robotics offers further opportunities. Automated systems can perform repetitive tasks such as case packing, sorting, palletising and product handling.

Collaborative robots can also support selected operations alongside employees, particularly where production requirements change frequently. Their suitability depends on the task, safety assessment and operating environment.

Automation is not equally beneficial for every packaging operation. Production volumes, product variety, available space, integration costs and maintenance requirements all influence the business case.

For manufacturers operating older machinery, the priority is to identify applications that deliver measurable improvements without requiring complete production line replacement.

Engineering skills shortages threaten progress

Modernising packaging production requires employees capable of installing, operating, maintaining and improving increasingly sophisticated machinery.

Recruitment and retention remain significant challenges.

Research published by PMMI, the Association for Packaging and Processing Technologies, in its 2025 Inside the Workforce Gap report found that 95% of surveyed consumer packaged goods companies were experiencing difficulties recruiting skilled operators and technicians. Nearly 60% expected recruitment challenges to become more demanding.

The findings also highlight the impact of experienced employees retiring, staff turnover and competition for technical talent.

The problem extends beyond packaging. The World Economic Forum’s Future of Jobs Report 2025 found that 63% of surveyed employers identified skills gaps as a major barrier to business transformation between 2025 and 2030.

Packaging manufacturers increasingly need engineers whose expertise spans traditional machinery and digital systems.

Mechanical engineering remains essential for maintenance, fault diagnosis and production reliability. However, modernisation projects can also require electrical engineering, industrial software, robotics, data analysis and machine safety expertise.

Sustainable packaging introduces further requirements. Engineers must understand how changes in material composition, thickness and surface properties affect feeding systems, forming processes, sealing temperatures, machine speeds and product protection.

Workforce planning must therefore be considered alongside machinery investment rather than treated as a separate operational issue.

Sustainable packaging places new demands on equipment

The transition towards more sustainable packaging is often associated with recyclable materials, recycled content and waste reduction. Yet production machinery plays a critical role in determining whether new packaging formats can be manufactured efficiently and consistently.

Equipment designed for one material may need modifications before it can process another.

Switching from conventional plastic packaging to paper-based or alternative flexible materials, for example, can affect feeding, forming, sealing and cutting operations. Differences in strength, flexibility, surface characteristics and heat sensitivity can influence production performance.

These changes require testing under realistic manufacturing conditions. A material that performs well in laboratory trials may behave differently at commercial production speeds.

Poorly managed changes can increase rejects, material waste and downtime. They may also compromise packaging integrity and product protection.

Engineers must therefore consider the relationship between packaging design, material properties and machinery throughout development and production.

Regulation adds another consideration. The European Union’s Packaging and Packaging Waste Regulation (PPWR) entered into force in February 2025 and became generally applicable on 12 August 2026, with some requirements taking effect later.

The regulation introduces measures covering packaging waste prevention, recyclability, recycled content and reuse, including important requirements scheduled for 2030.

Although the PPWR applies to packaging placed on the EU market, its implications extend to international manufacturers and suppliers serving European customers.

Businesses need to assess whether their packaging designs, materials and manufacturing processes can meet applicable requirements while maintaining production efficiency and product protection.

This reinforces the importance of engineering expertise when developing and scaling sustainable packaging solutions.

Retrofitting can extend the life of legacy machinery

Replacing ageing machinery is not always the most practical or economical response to technological change.

Retrofitting offers an alternative by upgrading selected components or systems to improve existing equipment.

Depending on the application, a retrofit may involve installing sensors, replacing outdated controls, upgrading motor drives or introducing digital monitoring.

These modifications can extend equipment life while improving process control and access to maintenance information.

Variable-speed drives, for example, allow motors to adjust their operating speed to production requirements. In suitable applications, this can reduce unnecessary energy consumption.

Sensors can provide information about temperature, vibration, pressure and operating cycles, helping maintenance teams identify potential problems and investigate performance losses.

However, retrofitting is not appropriate for every machine.

Older equipment may have mechanical, structural or electrical limitations that make extensive upgrades difficult. Some machines may lack suitable safety features, manufacturer support or compatibility with modern control systems.

Before proceeding, manufacturers should assess equipment condition, remaining service life, safety, integration requirements and total upgrade costs.

Environmental performance also matters. Extending machinery life can avoid some of the resource consumption associated with manufacturing replacement equipment. However, this benefit must be weighed against the energy efficiency, productivity and waste performance of newer alternatives.

The decision should reflect the full financial, operational and environmental implications of upgrading or replacing the equipment.

Digital integration remains a barrier to connected production

Installing automated equipment does not automatically create a connected factory.

Packaging manufacturers often operate production lines containing machinery of different ages, brands and technical specifications. These systems may use incompatible communication methods or store operational information in different formats.

This can make factory-wide monitoring, production planning and AI-based analysis difficult.

Connected packaging operations require reliable data on machine status, production output, downtime, material consumption and quality.

Without consistent information, managers may struggle to identify production losses, investigate recurring problems or determine whether equipment investments are delivering the expected benefits.

Industrial communication standards and compatible control systems can help connect machinery from different suppliers. However, integration requires engineering expertise, careful testing and appropriate cybersecurity measures.

Cybersecurity becomes increasingly important as production equipment connects to business networks, cloud platforms and remote maintenance services.

Manufacturers must protect production systems against unauthorised access while ensuring that employees and equipment suppliers can obtain the information needed to maintain operations.

Digital transformation therefore depends on more than software installation. It requires reliable infrastructure, compatible equipment, consistent data and clear responsibility for managing industrial systems.

Workforce training must keep pace with automation

Automation can reduce repetitive manual work, but it does not remove the need for skilled employees. Instead, it changes their responsibilities.

Operators may spend less time handling products and more time monitoring equipment, managing changeovers and responding to production problems.

Maintenance teams increasingly need to combine mechanical and electrical expertise with digital diagnostic tools and data analysis.

Training must evolve to reflect these requirements.

PMMI’s 2024 report, Technology & Workforce: Using Smart Technologies to Bridge the Skills Gap, highlighted opportunities to address workforce challenges through automation, digital troubleshooting, improved training resources and more accessible technical information.

Multilingual machine interfaces, digital documentation and visual training materials can help employees understand procedures and work with unfamiliar equipment.

These tools are particularly relevant to manufacturers operating internationally or employing workers with different levels of technical experience.

Machinery suppliers also have an important role. Equipment designed for easier operation, maintenance and troubleshooting can reduce dependence on a small number of experienced specialists.

Training should cover both emerging technologies and the engineering principles needed to diagnose faults safely.

Digital tools can support technical decisions, but they cannot replace the practical judgement required to assess equipment condition, investigate unusual faults and manage production risks.

Preserving engineering knowledge is a growing priority

The retirement and departure of experienced engineers create another challenge for packaging manufacturers.

Long-serving employees often possess detailed knowledge of machinery that is not fully recorded in maintenance manuals or technical documentation.

They may understand recurring faults, equipment adjustments, material-handling problems and the limitations of individual production lines.

When these employees leave, businesses risk losing knowledge developed over many years.

PMMI’s 2025 workforce research identifies undocumented technical knowledge as a concern for packaging operations. It also highlights interest in digital troubleshooting guidance, short instructional videos, documentation accessed through QR codes and remote support from original equipment manufacturers (OEMs).

These resources can make technical information easier to access during production and maintenance.

However, digital documentation alone is insufficient.

Structured mentoring, apprenticeships and opportunities for less experienced employees to work alongside established engineers can help preserve practical expertise.

Partnerships with technical colleges, universities and machinery suppliers can also support skills development and create pathways into engineering careers.

For manufacturers adopting sustainable packaging, knowledge transfer should cover material properties, production efficiency, waste prevention and equipment performance.

The objective is to develop employees who can maintain existing machinery while adapting it to changing production requirements.

Smaller packaging manufacturers face investment pressures

The cost of modernisation can be particularly challenging for small and medium-sized packaging businesses.

Larger manufacturers may have dedicated engineering departments, established technology partners and greater access to investment capital. Smaller operators may depend more heavily on external specialists for equipment upgrades, software integration and technical support.

This can make modernisation projects harder to finance, plan and implement.

A phased investment strategy offers a practical alternative to extensive factory-wide upgrades.

Manufacturers can begin by identifying specific operational problems, such as frequent machine stoppages, excessive material waste, inconsistent sealing performance or lengthy product changeovers.

They can then assess whether better maintenance, employee training, equipment modifications or automation offers the most appropriate response.

Investment decisions should consider more than the initial purchase price.

Installation, production disruption, training, maintenance, software support and future compatibility all contribute to the total cost of ownership.

A relatively modest upgrade may deliver good value when existing machinery remains reliable. Replacement may be justified when equipment has reached the end of its useful life or can no longer meet production requirements.

The appropriate approach depends on machinery condition, available resources and operational priorities.

Industry collaboration can support modernisation

Packaging manufacturers cannot address every technology and workforce challenge independently.

Machinery suppliers, automation specialists, packaging material producers and training organisations all have roles in supporting modernisation.

Early collaboration can help manufacturers identify technical problems before committing to equipment investments.

For example, involving machinery suppliers during sustainable packaging development can help establish whether existing production lines can process proposed materials.

Material producers can provide technical specifications and samples for production trials. Automation specialists can assess control systems, integration requirements and opportunities to improve efficiency.

Equipment manufacturers can contribute through technical training, maintenance guidance, remote diagnostics and machinery designed around operator needs.

For international packaging businesses, collaboration is particularly important where technical standards, workforce capabilities and access to specialist engineering services vary between markets.

Clear specifications, agreed performance requirements and shared testing procedures can reduce uncertainty during equipment upgrades.

Long-term supplier relationships can also improve access to maintenance support as production requirements change.

Measuring the return on packaging technology investment

The success of a modernisation project should be judged by operational improvements rather than the sophistication of the technology installed.

Manufacturers need clear performance measures before committing to investment.

Relevant indicators include production output, unplanned downtime, energy consumption, material waste, product rejection rates and maintenance costs.

Overall equipment effectiveness (OEE), which combines equipment availability, performance and quality, can provide a useful measure of production efficiency when applied consistently.

Sustainability improvements also require careful assessment.

Reducing packaging material consumption may lower costs and waste, but manufacturers must ensure that lighter or alternative packaging continues to protect products effectively.

Similarly, more energy-efficient machinery may offer environmental benefits, but its overall value depends on operating hours, production output and expected service life.

Workforce performance should also form part of the assessment.

Training completion, time taken to resolve equipment faults, employee retention and reliance on external technical support can help manufacturers evaluate whether their engineering capabilities are improving.

Monitoring these measures allows businesses to assess the return on investment, refine modernisation plans and identify where further improvements are needed.

Packaging modernisation depends on technology and people

The packaging industry’s transition towards smarter and more sustainable production depends on how effectively manufacturers combine equipment investment with workforce development.

AI, robotics and digital monitoring can improve production efficiency and reliability, but their benefits depend on suitable machinery, reliable infrastructure and employees with the skills to operate and maintain these systems.

Ageing equipment does not necessarily prevent progress. Carefully planned retrofits, improved maintenance and selective automation can help manufacturers modernise without replacing entire production lines.

However, engineering skills shortages cannot be resolved through technology investment alone.

Businesses must preserve existing technical knowledge, develop new capabilities and provide opportunities for employees to adapt as manufacturing requirements change.

Sustainability adds further pressure. Changes in packaging materials, regulatory requirements and production processes demand closer coordination between engineering, operations, procurement and product development.

For packaging manufacturers, the challenge is not simply to adopt more advanced technology. It is to build the technical expertise and workforce capabilities needed to operate, maintain and improve that technology over time.

Manufacturers that align machinery modernisation with workforce development will be better positioned to improve production reliability, manage costs and respond to changing environmental and commercial demands.