A3's Alex Shikany Shares Insights on New Robotics & Automation Data

Why It Matters

The data signals a decisive shift toward automation as a solution to labor shortages and e‑commerce pressure, making robotics investment essential for manufacturers to stay competitive and attract talent.

Key Takeaways

• Packaging picking and placing robots surged, now half of material handling orders.
• Food and consumer goods led 2025 growth, driving automation demand.
• Collaborative robots reached ~20% of orders, especially in material handling.
• Workforce shortages are primary catalyst for accelerating robotics adoption.
• E‑commerce and SKU proliferation push need for flexible packaging automation.

Summary

The Association for Advancing Automation (A3) released its latest robotics report, highlighting a sharp rise in packaging‑related automation. Executive Vice President Alex Shikany explained that picking and placing robots now account for roughly half of all material‑handling orders in North America, with a pronounced spike at the end of 2025. Key data points show food and consumer‑goods sectors posting the strongest year‑over‑year growth, while collaborative robots (cobots) comprised nearly 20% of total robot orders in 2025, dominated by material‑handling applications. Workforce shortages were repeatedly cited as the top driver, prompting firms to adopt automation to fill labor gaps and attract younger talent. Shikany likened the shift to giving employees a modern laptop instead of a notepad, emphasizing that today’s workers expect 21st‑century tools. He also noted that palletizing remains a popular entry point for SMEs, but picking and placing present greater SKU‑level complexity, especially in food handling where regulations add constraints. The implications are clear: manufacturers must prioritize flexible, cobot‑compatible solutions to keep pace with e‑commerce demand and expanding SKU assortments. Companies that lag risk losing talent and competitive edge, while early adopters can leverage automation to improve throughput, reduce labor costs, and meet consumer expectations for rapid fulfillment.

Original Description

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