Following the announcement of the UK’s 2024 Autumn budget, UK businesses are set to face significant increases in costs associated with labour throughout 2025. The jump in employer National Insurance contributions will be a headache for many and mean that companies will need to look at where they can tighten their belts.
Compounding this, the UK labour market has cooled substantially from post-pandemic highs and remains challenging, compared to the last two decades. It’s getting harder to recruit and retain staff, particularly in logistics and operations-based roles. Last year, it was reported that some 76% of logistics leaders were experiencing notable workforce shortages.
So, how can business maintain efficiency whilst mitigating increased cost impacts? Packaging automation could be key. Have you ever considered it?
In this article, we will give a brief overview of packaging automation, explain how it can help you tackle increase in labour costs from rises in National Insurance contributions and provide examples of packaging machinery you can consider.
What is packaging automation?
Packaging automation is the process of packaging products without or with less manual human intervention, using machinery to assemble or dispense packaging materials.
It can also involve the movement of product or parcels throughout a warehouse between picking, packing and dispatch sites.
5 signs your business needs automated packing processes
So, how do you know if packaging automation is right for your business? Here are five signs you can consider:
- Your packaging is increasingly taking up room in your warehouse
- You continually need to hire new staff for your production and/or packing line
- Your packs produced per hour isn’t increasing in line with demand
- Your business is creating increasing levels of packaging waste
- You experience an uplift in customer complaints about damaged goods (if demand is too high, packing quality could be less reliable)
If you’ve said, “Yes” to just one of these signs, it might be worth you considering if you can automate any part of your packaging processes.
How packaging automation can reduce costs associated with labour and NI contributions
Labour costs, including employer National Insurance contribution, represent a substantial portion of many companies operating expenses. The good news is that implementing automated packaging systems can drastically improve your productivity, lower costs in multiple areas and enhance your sustainability without the associated increase in headcount.
Let’s look at the benefits packaging automation offers:
Labour costs, including employer National Insurance contribution, represent a substantial portion of many companies operating expenses. The good news is that implementing automated packaging systems can drastically improve your productivity, lower costs in multiple areas and enhance your sustainability without the associated increase in headcount.
Let’s look at the benefits packaging automation offers:
- Reduced pack times & increased throughput – using packaging machinery can significantly speed up your packing operation. In practice, automated packing systems can double your throughput without the need of increasing your headcount.
- Fewer manual touch points – implementing packaging automation means you have a reduced requirement for human intervention. You could reallocate resource or use less packers, while productivity increases.
- Lower labour costs long-term – the combination of increased productivity but the need for less manual intervention means you can look to lower labour costs long term and may need a reduced headcount. Plus, automation can reduce (or even eliminate) the need for seasonal labour hires during peak periods. Savings can range from 25% to 50% once a piece of machinery has returned on investment.
- Enhanced health and safety – automated packaging solutions eliminate the need for your team to perform physically demanding or repetitive tasks, reducing the risk of workplace injuries and associated costs.
- Reduced waste & packaging use – employing packaging automation means you can cut the amount of packaging use, and the lack of human error means the right amount of packaging is used every time. This helps you reduce waste and can enable you to lower the cost of your packaging consumables while improving sustainability.
- Improved packaging cubage – packaging that is formed by machinery can ensure a consistent parcel cubage.
- Lower transport emissions and costs – consistent parcel cubage combined with eliminating excess packaging material use, ensures that your packages can be lighter. In turn, this will reduce the emissions associated with moving your parcels and help you tightly control courier or fuel costs.
- Fewer damages & returns – the consistent packaging provided by automated packing systems ensures your packaging quality is maintained. This will help reduce damages and associated returns – along with the reverse logistics costs. Another great saving!
Ultimately, while labour costs and NI contributions rise, investing in packaging automation can help you mitigate or offset increased financial burdens associated with these areas. The wide-ranging benefits of using packaging machinery can also deliver savings in other areas of your supply chain, while future-proofing your packing process against spikes in demand and seasonal peaks.
Popular examples of packaging machinery
While almost any part of the packaging process can be automated, there are some key types of packaging automation systems that are used to enhance productivity. Some popular examples include:
- Case Erectors: these machines automatically construct boxes, saving time and ensuring consistent quality. They are usually fed with cases which are “popped” open and the bottom flaps of the box are sealed.
- Pallet Wrappers: machines for securely wrap pallets with minimal material waste, improving load stability during transit. The most popular types of pallet wrappers are usually turntable stretch machines, which rotate a pallet while it is wrapped.
- Case Sealers: often used in tandem with case erectors or right size box machines, this type of automated packaging system seal boxes quickly and uniformly, enhancing productivity and reducing material costs. These machines can use tape or glue to effectively seal boxes shut.
- Automatic Tape Dispensers: a small but powerful solution, automatic tape dispensers offer a quick way to enhance box sealing. They’re smaller than case sealers but still offer productivity and cost reduction advantages.
- Void Fill and Cushioning Systems: whether you want to use paper void fill or air cushions, there are many on-demand solutions that can be use as stand along machines or integrated into a production line, producing protective packaging as and when you need it.
- Strapping Machines: from battery-operated friction welders through to full automated strapping machines, this type of packaging equipment will seal, tension and cut strapping or pallet banding efficiently to stabilise packages for transportation.
Why choose Frontline Packaging for packaging automation?
Frontline Packaging is a trusted partner in delivering customised packaging automation solutions – including consultation, supply of machinery and packaging consumables.
If you choose to work with us, you can expect:
- Custom packaging automation solutions
- Expert support and packaging design
- Leading machinery brands
- Illustration of financial, operations and sustainability savings
Conclusion
In an era of rising labour costs and employer contributions, packaging automation offers a practical solution for businesses looking to improve efficiency, reduce operational expenses, and remain competitive. From case erectors to pallet wrappers, automated systems streamline processes, minimise manual effort and deliver consistent results.
If you’re ready to explore how packaging automation can benefit your business, contact Frontline Packaging today to discuss your requirements and discover the best solutions for your needs.