Navigating Workforce Pressures

The U.S. economy closed 2024 on relatively stable footing, posting moderate growth despite persistent workforce pressures that continue to challenge manufacturers across the country. U.S. gross domestic product (GDP) grew 2.8%—a slight slowdown from 3.4% in 2023—while unemployment remained historically low at 4.2%. 

The tight labor market remains one of the most significant obstacles for the packaging industry seeking to fill open positions. Inflation eased to 2.9%, down from 4.1% in 2023 and dramatically lower than the 8% peak in 2022, offering some relief but not enough to offset the strain of ongoing labor shortages.

National Trends

A 2024 joint report from the National Association of Manufacturers’ (NAM) Manufacturing Institute and Deloitte, “Taking Charge: Manufacturers Support Growth with Active Workforce Strategies,” reinforces this trend. Manufacturing employment surpassed pre‑pandemic levels, reaching nearly 13 million workers as of January 2024. The sector is expanding, but the talent pipeline is not keeping pace. The study highlights three themes shaping the future of the manufacturing workforce:

• Growth is driving demand for workers at every level. From entry‑level associates to skilled technicians and engineers, manufacturers need more people across the board.
• Skill requirements are evolving. Technical manufacturing expertise, digital fluency, and soft skills are increasingly intertwined, requiring more comprehensive training and development strategies.
• Applicant shortages are widespread. Manufacturers are not only struggling to find skilled workers—they
  are struggling to find applicants at all. Retaining existing talent has become just as important as recruiting new employees.

Across the manufacturing landscape, workforce challenges are becoming increasingly structural. PMMI, The Association for Packaging and Processing Technologies, recently released its “Inside the Workforce Gap” report, which paints a clear picture of an industry in transition. High turnover, an aging labor force, rapid technological change, and intensifying competition for talent are reshaping how companies operate. 

According to the U.S. Bureau of Labor Statistics, an additional 3.1 million jobs in maintenance and repair occupations are expected by 2031. Yet many manufacturers report that simply attracting applicants—let alone retaining them once hired—remains one of their most pressing hurdles.

These dynamics are acutely felt by consumer packaged goods (CPG) companies, original equipment manufacturers (OEMs), flexible packaging converters, and suppliers. With leaner teams and rising expectations for speed, accuracy, and efficiency, companies are under pressure to reduce downtime, minimize human error, and preserve institutional knowledge across a multigenerational workforce.

Flexible Packaging and Labor

These national trends are mirrored within the flexible packaging sector. According to the Flexible Packaging Association’s (FPA’s) 2025 “State of the U.S. Flexible Packaging Industry Report,” converter members once again ranked the “labor pool” as their top challenge, while supplier members cited “growth/new materials.” Labor availability has held the No. 1 spot for converters for several years, reflecting the persistent difficulty of hiring in a market where unemployment has hovered between 3.6% and 4.1% over the past two years. Even as converters monitor pricing pressures and broader economic conditions, workforce constraints remain a defining concern.

Despite these headwinds, the flexible packaging industry continues to demonstrate resilience and profitability. In 2025, FPA partnered with John Dunham & Associates to conduct a comprehensive economic impact study that would illuminate the industry’s significant contributions to the U.S. economy.

The findings are compelling. The U.S. flexible packaging industry was projected to generate approximately $151 billion in total economic output in 2025, including $51.5 billion directly from flexible packaging manufacturers. In total, the industry represents roughly 0.50% of the nation’s GDP—a modest percentage that reflects a substantial economic footprint.

Employment figures further illustrate the industry’s importance. Flexible packaging supports an estimated 398,780 full‑time equivalent (FTE) jobs in the U.S., including more than 98,000 FTEs directly involved in manufacturing and distribution. The broader ecosystem—suppliers, logistics partners, service providers, and related industries—accounts for the remainder. Collectively, these workers earned more than $33.4 billion in wages and benefits, reinforcing flexible packaging’s role as both an economic engine and a source of stable, well‑paying jobs.

Looking Toward AI

As the industry looks ahead, one of the most transformative forces on the horizon is artificial intelligence (AI). While AI’s full impact remains uncertain, its influence is already reshaping both office and plant‑floor operations.

In corporate and administrative settings, AI is poised to streamline procurement, supply chain coordination, customer service, invoicing, finance, and even contract negotiations through increasingly sophisticated AI agents. These tools can reduce administrative burden, improve accuracy, and accelerate decision‑making—critical advantages in an environment where staffing remains tight.

On the manufacturing floor, AI‑enabled systems are expected to enhance artwork verification, integrate more seamlessly with customer systems, strengthen quality control, and support predictive maintenance. These
capabilities can help converters reduce downtime, improve consistency, and mitigate the effects of labor shortages by automating tasks that traditionally require manual oversight.

While AI will not replace the need for skilled workers, it may help alleviate pressure in specific roles and enable companies to operate more efficiently with smaller teams. The timing and scale of these changes will vary, but the trajectory is clear: AI will be a defining factor in the future of flexible packaging.

For converters and suppliers, the imperative is to begin preparing now. Understanding where AI can add value, identifying potential risks, and developing strategies for workforce training and adoption will be essential steps in remaining competitive.

The flexible packaging industry has long been characterized by innovation, adaptability, and resilience. As workforce challenges persist and technological transformation accelerates, those qualities will be even more important. The economic data underscores the industry’s strength; the next chapter will depend on how effectively companies navigate the evolving landscape of talent, technology, and growth.

Dani Diehlmann, IOM, CAE, is FPA vice president, communications. The Institute for Organization Management (IOM) graduate recognition from the U.S. Chamber of Commerce signifies completion of 96 credit hours of coursework in nonprofit management. The Certified Association Executive (CAE) designation, awarded by the American Society of Association Executives (ASAE), is a professional credential in association management, signifying expertise in leadership, strategy, and operations.