--- title: "Automated Packaging vs Manual: Potentially Reducing Labor Costs" description: Weigh out your options with automatic packaging equipment vs manual equipment. Are you costing your company more than you could be? Lets see: image: https://www.industrialpackaging.com/hs-fs/hub/386184/file-1679104778.jpg --- ** ** [ Talk to an expert ](https://www.industrialpackaging.com/contact-us) - Categories ** - ** [Subscribe](https://www.industrialpackaging.com/blog-subscribe) [«  View All Posts](https://www.industrialpackaging.com/resources) ![Automated Packaging vs Manual: Potentially Reducing Labor Costs](https://www.industrialpackaging.com/hs-fs/hub/386184/file-1679104778.jpg) ![Blog Feature](https://cdn2.hubspot.net/hubfs/298890/blog-files/blog--cards-feature.png) [Subscribe](https://www.industrialpackaging.com/blog-subscribe) ![David Roberge](https://www.industrialpackaging.com/hubfs/Davids%20Headshot%202025%20IP%20-%20Dark%20Blue.jpg "David Roberge") By: [David Roberge](https://www.industrialpackaging.com/blog/author/david-roberge) on October 8th, 2014 ** Print/Save as PDF # Automated Packaging vs Manual: Potentially Reducing Labor Costs [Equipment](https://www.industrialpackaging.com/blog/topic/equipment) | [The Business of Packaging](https://www.industrialpackaging.com/blog/topic/the-business-of-packaging) - Share: - [**](https://www.facebook.com/sharer/sharer.php?u=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment) - [**](https://twitter.com/intent/tweet?text=Automated+Packaging+vs+Manual%3A+Potentially+Reducing+Labor+Costs&url=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment&via=) - [**](https://www.linkedin.com/shareArticle?url=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment&title=Automated+Packaging+vs+Manual%3A+Potentially+Reducing+Labor+Costs&summary=Weigh+out+your+options+with+automatic+packaging+equipment+vs+manual+equipment.+Are+you+costing+your+company+more+than+you+could+be%3F+Lets+see%3A) - [**](mailto:?body=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment) ## Do You Produce Enough to Justify an Automatic Shrink Wrapper? It's all really a function of **how many packages per minute (PPM) you need** and** how much you are spending on labor**. Here's what you are looking at with going automatic or staying manual with your [packaging machinery](https://www.industrialpackaging.com/products/machinery): --- *Looking for ways to become more efficient in your production? We've gathered some tips that can help:* [![Get My FREE Cheat Sheet](https://no-cache.hubspot.com/cta/default/386184/4aab91cf-d1cd-4953-93de-5495add66e27.png)](https://cta-redirect.hubspot.com/cta/redirect/386184/4aab91cf-d1cd-4953-93de-5495add66e27) --- ## Your Equipment ### Manual Packaging Equipment **Lower Capital Investment** - Its cheaper initially, so no need to worry about a large [investment](https://www.industrialpackaging.com/blog/save-money-with-sustainable-packaging-why-it-pays-to-use-sustainable-materials). **Odd Shaped/Unusual/Large Products** - If you have a product you are packaging that is oddly shaped, unusual in nature, or very large it may not be easily [automated](https://www.industrialpackaging.com/blog/integration-how-to-automate-your-lines). Take a look at the [packaging machinery available](https://www.industrialpackaging.com/products/machinery) and see if your product fits within the specs.  **You Might Not Be Taking A Long-Term View Of The True Cost** - We see a number and automatically think $$$. Not weighing out the options, we just don't see the future benefits of the initial cost being returned quickly. Sometimes spending more initially saves you **BIG BUCKS**! Think long term when making your decisions. ### Automatic Packaging Equipment ![NOHEADS_edited-2.jpg](https://www.industrialpackaging.com/hs-fs/hub/386184/file-1681713256-jpg/Blogging_Images/NOHEADS_edited-2.jpg?width=640&name=NOHEADS_edited-2.jpg "NOHEADS_edited-2.jpg") **Reduce Headcount** - [Automated packaging](https://www.industrialpackaging.com/products/machinery) can reduce your staff headcount. - Lets say you have one employee working the manual equipment. Lets just say their pay is $15.00 per hour, fully loaded. You know, Social Security payments, worker’s comp, unemployment  insurance- $31,200+. Even if you hire temps and pay minimum wage, each employee is costing you** over $20,000 per year **(in [Massachusetts](https://www.bls.gov/regions/new-england/massachusetts.htm) anyways). - [Purchasing an Automatic L-Sealer](https://www.industrialpackaging.com/products/machinery) could pay itself off in one year, dropping one head and reducing labor costs! ## Your Needs ### How many Packages Per Minute (PPM) do you need?  - Is packaging speed determined by upstream production (Your product is spitting out at X/min)?  - If so, your production speeds set your PPM. OR - Is your product accumulated and brought over to the packaging equipment in bulk?  - If so, your packaging machine sets the PPM. If you are accumulating before packaging you *could* run 1 day on the packaging lines instead of 2, you just need equipment that runs fast enough. There is a potential to save $6,000 annually depending on your labor cost structure If you could run the line faster, could you reduce labor costs?  - [How much are you spending on labor](https://www.industrialpackaging.com/blog/how-is-your-line-realization-what-is-your-labor-ratio) to run your packaging line? - How many hours does the line run? - If you eliminate 1 position, the savings is anywhere from $25,000 to $35,000 or more annually, again** **depending on your labor cost structure.  Do yourself a favor and take a few minutes to go over your current annual costs and weigh your options. Are you asking your supplier the right questions to your team for your next machinery purchase? Download this checklist to make sure: [![Download My Copy Of The Checklist](https://no-cache.hubspot.com/cta/default/386184/f7db1d48-ff42-471c-ad64-4643f2164a96.png)](https://cta-redirect.hubspot.com/cta/redirect/386184/f7db1d48-ff42-471c-ad64-4643f2164a96)   ### About David Roberge I help CPG brands find the right contract packaging partner through content that answers real questions. I get to do that alongside a team whose values actually match mine: respect, teamwork, and always getting better. I also appreciate the psychology behind decision-making. Outside of work you'll find me hiking with my partner and dog, learning German and Spanish, pulling tarot cards. - **Connect with David Roberge** - [**](https://www.linkedin.com/in/davidroberge) - [**](mailto:david.roberge@industrialpackaging.com) - [**](https://www.facebook.com/sharer/sharer.php?u=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment) - [**](https://twitter.com/intent/tweet?text=Automated+Packaging+vs+Manual%3A+Potentially+Reducing+Labor+Costs&url=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment&via=) - [**](https://www.linkedin.com/shareArticle?url=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment&title=Automated+Packaging+vs+Manual%3A+Potentially+Reducing+Labor+Costs&summary=Weigh+out+your+options+with+automatic+packaging+equipment+vs+manual+equipment.+Are+you+costing+your+company+more+than+you+could+be%3F+Lets+see%3A) - [**](mailto:?body=https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "David Roberge", "url" : "https://www.industrialpackaging.com/blog/author/david-roberge" }, "datePublished" : "2014-10-08T12:00:00.000Z", "headline" : "Automated Packaging vs Manual: Potentially Reducing Labor Costs", "image" : [ "https://www.industrialpackaging.com/hs-fs/hub/386184/file-1679104778.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.industrialpackaging.com/blog/justifying-automatic-vs-manual-packaging-equipment", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.industrialpackaging.com/hubfs/INDUSTRIAL%20PACKAGING%20LOGO%202016.png" }, "name" : "Industrial Packaging" } } ```