By Jorge Izquierdo, Vice President of Market Development for PMMI
As workforce woes persist, investing in training, technology, and pertinent partner outreach is the best way forward.
Labor issues continue to be a production stumbling block for craft beer and spirit manufacturers, but solutions, such as artificial intelligence (AI), automated systems, and targeted training, can help increase efficiency and overcome workforce problems, according to “State of the Industry 2025,” a business intelligence report from PMMI, The Association for Packaging and Processing Technologies.
Attaining and maintaining a qualified workforce continues to be one of the most demanding challenges facing the industry and is characterized by the shortage of skilled tradespeople, technician burnout, and limited internal capacity to meet customer demand.
Rising labor costs are reshaping brewery strategies, according to a recent study entitled Craft Beer Production in the US Market Research Report (2015-2030) from IBISWorld.
Breweries are paying more to attract talent and keep pace with inflation, but this puts a real squeeze on already-thin profits and forces innovative staffing and retention tactics, the report states.
Technological advancements in brewing techniques and supply chain management are resulting in better quality and more creative flavors, helping the market to grow, according to a study called Craft Beer Market (2024 – 2030) from Grand View Research.
At the same time, research from the Manufacturing Institute (MI) suggests that there is no one-size-fits-all approach for manufacturers seeking to revamp their manufacturing and training programs. In other words, manufacturers need to tailor their labor upskilling strategies to realize transformative operational benefits fully.
In fact, MI’s study concluded that manufacturing organizations that emphasize the development of adaptive skills are more likely to unlock a competitive advantage, accelerate their transformation, and directly address the manufacturing skills gap. The research also demonstrated that adaptive skills represent the critical translation point necessary for reskilling the current workforce and for rebranding, attracting, and retaining talent.
Many savvy manufacturers are considering automation not only to address production issues but also to alleviate the challenges of labor shortages. At PMMI’s 2025 Top to Top meeting, a report entitled 2025 Performance Optimization: Insights for Packaging Line Readiness concluded that three distinct, yet interconnected, phases create an environment of operational readiness. These phases are vertical startups (productivity), operator training (workforce), and IT-OT integration (automation).
The operator training phase focuses on ensuring that operators have the necessary knowledge and resources to perform their roles effectively. This phase emphasizes the importance of designing training programs around the needs of the workforce and adopting a people-centric approach. Key themes include using technology to improve training, enhancing the skills of trainers, and regular and hands-on training.
Technology to support training and improve information retention should include videos, interactive manuals, augmented reality, and tablet-based instructions. In addition, beverage manufacturers should request that original equipment manufacturers (OEMs) simplify machinery design and provide user-friendly and intuitive human-machine interfaces to accommodate operators with varying skill levels.
AI Provides Increased Efficiency
One tool for workforce development is AI. According to PMMI’s 2024 study, The AI Advantage in Equipment: Boosting Performance and Bridging Skills Gaps, AI is not at the level yet where tasks can be completed solely by the technology, so a human is still required to make final decisions. The key impacts that currently available AI solutions can have on the packaging industry are increased staff productivity, better machine performance and OEE, and the mitigation of skills gaps and labor issues.
AI technology, particularly AI assistants, has the most potential to improve staff efficiency and productivity. Time-consuming tasks, such as data entry and coding, can now be completed with the help of these assistants. This increases the speed at which projects can be completed, freeing up additional time for staff members to focus on other tasks.
With a high turnover of staff positions (particularly among maintenance staff and machine operators), optimized training can ensure that employees are receiving the highest-quality training available. AI assistants and generative AI predictive maintenance solutions enable users to ask questions about any issues they encounter, further allowing staff to upskill independently and reduce the risk of human error.
More Solutions Are Available
PMMI’s OpX Leadership Network explores common industry challenges and develops new work products through special task forces and solutions groups. The entire OpX library of solutions is free for all to use.
Recently, OpX has focused its efforts on bridging the workforce divide characterized by seasoned operators with decades of institutional knowledge leaving the industry, while a new, tech-savvy workforce comes in with a fresh perspective on learning, relevance, and impact. This generational shift demands not just replacement, but a reinvention of how work is performed.
To aid in this process, OpX has launched two industry-led solutions: Operator Training Standardization (OTS) and Data Management Standardization (DMS). Built collaboratively by OEMs and consumer packaged goods firms, these work products can help close the gap between experience and execution — accelerating onboarding, strengthening data practices, and elevating performance across entire operations.
Another tool, PMMI’s Mechatronics Certification program, provides technical credentials to employees through a series of tests based on industry-developed skill standards. The PMMI Mechatronics Certification program:
• Helps employers assess workers for core skills.
• Guides schools in developing curricula to prepare students for the manufacturing workforce.
• Provides a career pathway for students looking for rewarding careers in advanced manufacturing.
The Struggle to Stay Ahead in the Face of Constant Change
At the same time they’re adapting to new technologies and operational models, beverage producers are facing economic pressures, labor shortages, and regulatory changes, according to Ernst & Young LLP’s Trends in the Beverage Industry: Navigating Change and Innovation report.
Industry success requires innovation and optimized supply chains, as well as social media- and data-driven marketing strategies, even as market fragmentation complicates the landscape.
While many craft beverage manufacturers tend to focus on practical applications that can help solve real problems on the plant floor, one clear way to improve efficiency is by increasing corporate investment in workforce development programs.
