The following is a conversation with Robert Cook, Ph.D. senior director, Global SMB Program Lead Siemens Digital Industries Software conducted during Pack Expo East: What are the primary challenges currently faced by small and medium-sized enterprises in the packaging sector? Small and medium-sized packaging and processing companies are being asked to operate with the sophistication of a large enterprise—but without the same resources. They are managing tighter margins, more frequent product changeovers, and ongoing labor shortages. At the same time, they face increasing compliance requirements, sustainability expectations, and pressure to deliver higher throughput and quality. One of the biggest challenges is visibility. Many SMB manufacturers have strong equipment and experienced people, but their data is fragmented across machines and systems. Without a clear, connected view of operations, it becomes difficult to identify root causes of downtime, optimize performance, or scale efficiently.

In what ways can these businesses utilize digitalization and artificial intelligence to enhance operational efficiency and reduce costs? Digitalization allows manufacturers to move from reactive to proactive operations. It starts with connecting packaging equipment and collecting performance data-understanding downtime, quality losses, and energy consumption in a structured way. From there, AI can be applied in very targeted, practical ways. For example, predictive maintenance can identify early warning signs of equipment failure before unplanned downtime occurs. AI can also help identify process inefficiencies, reduce scrap, and optimize machine settings to improve throughput and consistency. What is important is that this is not about adding complexity. It is about giving operators and engineers better insight so they can make faster, more informed decisions. Siemens helps manufacturers implement these capabilities in a scalable way, so they see measurable improvements in productivity, quality, and cost control. How can a strategic focus on robotics and automation facilitate the optimization of packaging operations? Robotics and automation provide both consistency and flexibility—two things that are essential in today’s packaging environment. Robotics can stabilize throughput by performing repetitive tasks like pick-and-place, case packing, and palletizing with high precision and reliability. This improves overall line efficiency while also reducing dependence on manual labor for physically demanding tasks. Equally important, modem robotic systems enable faster changeovers and greater adaptability. Manufacturers can respond more quickly to new packaging formats, new SKUs, and changing customer requirements. What steps can companies take to initiate their automation journey on a smaller scale, minimizing initial investments? What are the anticipated long-term advantages of this approach? The key is to start with a focused, high-impact use case. That might be a bottleneck machine, an end-of-line operation, or a process that experiences frequent downtime. By connecting that equipment and introducing targeted automation or performance monitoring, companies can quickly demonstrate measurable improvements. This creates immediate ROI while also building a foundation for broader digitalization. Over time, these incremental improvements compound. Companies reduce downtime, improve throughput, and gain the ability to scale production without proportionally increasing labor or capital costs.

What strategies can smaller organizations adopt to emulate the practices of larger OEMs in the packaging industry? One of the most important strategies is standardization. Larger OEMs rely heavily on standardized designs, reusable engineering assets, and digital simulation to ensure predictable outcomes. SMBs can leverage the same approach by using digital twins to simulate packaging lines before deployment, validating performance virtually, and reducing commissioning risk. This allows smaller teams to operate more efficiently and avoid costly trial-and-error during installation and ramp-up. How significant is customization in today’s packaging applications, and how is its importance expected to grow in the coming years? Customization has become a major competitive differentiator. Consumers expect more product variety, more personalization, and more sustainable packaging options. At the same time, regulatory and labeling requirements continue to evolve. This means manufacturers must support shorter production runs and more frequent changeovers without sacrificing efficiency. Digitalization and automation make this possible. By using standardized automation, recipe driven production, and simulation, manufacturers can adapt quickly and confidently. This capability will become even more critical in the coming years, as packaging continues to evolve toward greater flexibility and responsiveness. Why is it crucial for companies, regardless of size, to adopt a comprehensive approach to machinery and automation in 2026? In today’s environment, performance is determined by how well the entire system works together—not just individual machines. Companies need continuity across design, engineering, commissioning, and operations. Without that integration, inefficiencies and risks increase. A comprehensive approach allows manufacturers to design smarter, deploy faster, and operate more efficiently. It also reduces lifecycle costs and improves long-term scalability. What solutions is Siemens providing to tackle the challenges present in the packaging industry? Siemens provides a comprehensive digital portfolio that supports manufacturers from initial concept through full production. This includes digital twin technology for simulating packaging lines, integrated engineering tools that improve development efficiency, and operational analytics that provide real-time performance insights. We also enable virtual commissioning, which allows manufacturers to validate automation systems before physical deployment, significantly reducing startup time and risk. Our goal is to help manufacturers improve productivity, reduce downtime, and increase flexibility—while making digital transformation accessible and scalable for organiations of all sizes. How do you foresee technological advancements transforming the packaging industry over the next five to ten years? Over the next decade, we will see digital twins, AI, and automation become standard capabilities across packaging operations. Manufacturers will increasingly simulate and optimize production before implementing changes physically. AI will help predict issues, optimize performance, and guide operational decisions in real time. Robotics will become more flexible and easier to deploy, enabling faster adaptation to new packaging requirements. These technologies will enable manufacturers to operate with greater agility, efficiency, and resilience. The most important message today is that digital transformation does not have to be overwhelming. Companies do not need to do everything at once. The most successful manufacturers start with a clear business objective-reducing downtime, improving throughput, or increasing flexibility—and build from there.