Employee Training is the Key to Successfully Bridging the Packaging Industry’s Skills Gap
EMPLOYEE TRAINING IS THE KEY TO SUCCESS
By Chuck Raymond, Principal Strategic Account Manager of Packaging at Advantive
Rising costs, sustainability pressures, and supply chain disruptions are creating major challenges for the packaging industry. But one issue urgently stands out: ensuring the workforce keeps pace with rapid industry changes. As automation, new materials, and evolving regulations reshape operations, companies can’t afford to rely on outdated skills. Since 85% of packaging companies report difficulties in hiring qualified employees, focusing solely on recruitment won’t solve the problem according to an industry report by PMMI Business Intelligence.1 The key to maintaining efficiency, innovation, and marketability is contingent on continuous employee training.
A well-trained workforce adapts more easily to technological advancements, giving packaging companies a competitive edge in innovation and customer satisfaction. As consumer expectations shift toward faster, personalized experiences and sustainable practices, teams must adapt and support these demands. Continuous training on new technologies helps companies meet expectations while enhancing productivity and complying with evolving industry regulations.
Leading the charge to develop skilled workers actually benefits organizations in more ways than one. Over 75% of employees say they are more likely to stay with companies that offer continuous training according to a Deloitte study.2 So, in addition to serving as a bridge between current challenges and future success, training is also a retention tool.
Identifying the Right Training Opportunities is Key
Creating impactful training programs involves understanding the skills gaps as well as the technologies that will shape and influence the market. To get employees started on the right learning paths, businesses should focus on:
1. ERP and MES Training: Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES) are software solutions that help packaging manufacturers manage workflows and improve efficiency across operations. Staffers trained to interpret the data they provide can make real-time strategic decisions, such as using ERP insights to improve inventory management, optimize pricing, and identify cost-saving opportunities. Similarly, staffers familiar with MES capabilities can streamline production scheduling and resource allocation, ensuring equipment and personnel are well-utilized. Equipping teams with the ability to apply these tools effectively drives greater efficiency, reduces waste, and improves overall agility.
On their own, ERPs and MESs deliver significant benefits, and companies can further boost their impact by teaming up with a trusted software provider and partner to guide implementation, updates, and ongoing optimization.
2. Reskilling for technology-driven roles: As technology reshapes every facet of the packaging industry, employees are being freed up to focus on more complex, strategic work. The shift requires reskilling and ongoing training to ensure workers can step into higher-value, technology-driven roles. From operating advanced machinery to analyzing data for process optimization, employees must develop new skills that align with digital transformation.
3. Leveraging automation and AI: Automation and artificial intelligence (AI) are rewriting the rules for packaging efficiency. The AI-driven packaging sector is expected to grow from $2.6 million in 2023 to $7.3 million by 2033 according to a market.us report.3 Frontline workers need to learn how to use AI-powered software for a variety of purposes, such as analyzing supply chain logistics, reducing downtime, and operating robotic equipment to enhance production. Employees who master these technologies can help their companies integrate new innovations and maximize their impact, which boosts competitiveness and longevity.
Employees and Employers Benefit From Proactive Training
Providing continuous learning opportunities pays back in dividends. In addition to bridging skill gaps when qualified new recruits are scarce, a well-structured training program can improve employee retention and engagement, enhance operational efficiency, boost innovation, and build long-term sustainability.
One of the fastest ways to lose the interest of valuable employees is to ignore their need for growth and development. Workers who are offered professional development opportunities are 15% more engaged than those who do not according to a recent survey by Better Buys.4 Training programs help employees feel valued, actively involved, and open to growing their careers with their current organization. They also become more efficient, which can help boost a company’s bottom line.
Research by McKinsey & Company found that lack of skills and inefficiency could cost a median-size S&P 500 company roughly $163 million per year.5 Fortunately, employees trained in ERP or MES, automation, and data analytics not only work more efficiently but are also better equipped to identify productivity barriers and leverage technology to optimize workflows.
Beyond the development of ERP and MES expertise, diversified training puts packaging businesses at an advantage when it comes to meeting changing customer demands, which now encompass everything from customized yet speedy interactions to an insistence on environmentally friendly processes. Training programs that emphasize green manufacturing practices and technologies, for example, can enable companies to meet clients’ eco-conscious expectations, boost sustainability, and maintain regulatory compliance.
The packaging industry faces a multitude of challenges, and addressing the skilled labor shortage through employee training isn’t just a smart move — it’s essential. Whether through reskilling for new technologies, leveraging automation, forming educational partnerships, or integrating advanced ERP and MES tools, companies have vast opportunities to strengthen their workforce. When organizations proactively invest in employee development, they are closing the skills gap and building a future-ready organization that’s primed for technological progress and long-term success. Employees are a company’s greatest asset, so develop them wisely.
References:
- https://www.pmmi.org/report/2024-technology-workforce-using-smart-technologies-to-bridge-the-skills-gap
- https://www2.deloitte.com/us/en/insights/topics/talent/workplace-well-being-research-2024.html
- https://market.us/report/ai-in-the-packaging-market/
- https://www.betterbuys.com/lms/professional-development-impact/
- https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/increasing-your-return-on-talent-the-moves-and-metrics-that-matter
About the Author
Chuck Raymond is currently a Principal Strategic Account Manager at Advantive. He has a demonstrated history of assisting Fortune 500 and growing companies with digital transformation efforts across many software platforms and solutions. He previously worked for Kiwiplan (now part of the Advantive family) for over 20 years providing software solutions for the packaging industry. Visit https://www.advantive.com.