In 2025, manufacturers are navigating one of the most complex decision-making landscapes in decades. Interest rates remain high. Tariffs are adding pressure to margins. And the post-COVID purchasing shift has moved from “buy now, figure it out later” to deliberate, data-backed investments.
In this environment, return on investment (ROI) isn’t just a financial metric. It’s a strategic tool for determining how well your operation can adapt, compete, and thrive.
That’s the perspective Viking Masek National Sales Manager - Flow Wrapping Division, Robert Barkley, brought to the conversation during our latest episode of the Wrapping Things Up podcast. After more than a decade in packaging automation, he’s learned that true ROI goes beyond quick paybacks to strategies that strengthen a manufacturer’s position for years.
Reliability as a Return
In capital expenditures, ROI is formulaic: net gain from machine investment divided by total machine cost. Multiply the result by 100 and you’ve got your ROI percentage calculation. The equation is accurate and necessary, but Robert cautions that the view may be limited.
He points to how investing in automation pays dividends in addressing the manufacturing labor squeeze.
“Often, labor is a main issue for our customers. They are faced with hiring 30 temp workers, and 15 show up for a shift. Or, PTO and sick days disrupt productivity. All of that is human. Investing in a quality piece of automation equipment eliminates that instability.” – Robert Barkley, National Sales Manager
The reliability of automation equipment is further augmented by its ability to optimize worker impact. Even partially automating a once entirely manual packaging task reduces the amount of labor required to produce results similar to that of a full workforce.
Where ROI Hides in Plain Sight
A less obvious ROI driver is switching from rigid containers or premade pouches to rollstock. When a manufacturer is ready to take that first step to automation, the potential cost savings of making the switch is rarely a consideration.
However, ROI lies in making the transition. Using a roll of film instead of pouches or containers:
- Reduces freight costs: There is no need to do what Robert terms “ship air” to get preformed packaging to a facility.
“They’re bringing in all of these containers, and that’s all it is – just containers. There’s no product, no added value to offset the expense.”
- Frees up warehouse space: Square footage is at a premium in manufacturing facilities. Dedicating space to storing containers before use comes at a cost. If containers aren’t getting filled and shipped to make some money, they’re overhead
Robert notes that while brand teams may initially resist packaging format changes for shelf-appearance reasons, the operational savings can be substantial — and should be weighed in ROI discussions.
Even switching film size can generate savings.
“We recently worked with a customer who took their 11” film down to 9” across ten different lanes. They quickly saw the money they saved and how it made sense to upgrade to a nicer piece of equipment just with that small change. And that upgrade? It paid for itself within two years.”
Delaying Automation Could Put ROI at Risk
Manufacturers often delay automation decisions, waiting for “the perfect time,” which could mean anything from budget dollar approval to landing a large contract to justify the purchase. It sounds prudent, but there’s risk in hesitation.
Robert’s best advice?
“You need to think a little bit more forward to how quickly can I start getting my money back, even if that investment might hurt a little bit upfront. You can’t get back a missed opportunity.”
Looking at ROI Through a Different Lens
If your ROI discussions begin and end with cost recovery, you may be missing the bigger picture.
Key questions to consider include:
- Will this investment make us more resilient to labor challenges?
- Could it open doors to new customers or product lines?
- How will it position us for the next five years, not just the next fiscal quarter?
When it comes to automation, there are ROI intangibles that can’t always be quantified:
Operational Agility
Automation lets you pivot faster when SKUs change or demand spikes unexpectedly. That ability to adjust in days — not weeks — is a competitive advantage that protects revenue streams.
Workforce Empowerment
Rather than displacing workers, well-planned automation frees them from repetitive, physically taxing tasks. This reduces burnout, improves retention, and creates career pathways through upskilling that keeps institutional knowledge in-house longer.
Brand Reputation
Consistent quality, fewer errors, and faster order fulfillment strengthen customer trust. That trust can translate into long-term contracts and higher-margin opportunities.
Future Readiness
Investing in automation now builds the foundation for tomorrow’s capabilities, from AI-driven predictive maintenance to advanced quality control systems. The real payoff is sustained competitiveness three to five years down the line.
The Power of Partnership
Robert emphasizes that ROI depends as much on the people behind the machinery as the technology itself. The right partner will:
- Listen intently to your goals, ask questions to understand your needs before offering solutions
- Provide responsive support long after installation
- Offer training that gets your team comfortable and confident quickly
- Troubleshoot effectively to minimize downtime
- Help you plan for scalability so you’re never limited by your own equipment
Viking Masek is the partner you need to help you look beyond the spreadsheet to the sometimes intangible long-term value-adds that automation can deliver.
Catch the full conversation with Robert Barkley on Episode 3 of the Wrapping Things Up podcast and start to view ROI in a whole new way.
