Key Takeaways from the ENGAGE Conference: Trends, Challenges, and Industry Insights
Last month, members of the Tutor Intelligence team attended the ENGAGE conference hosted by the Contract Packaging Association (The CPA). The ENGAGE Conference brought together key players from the co-packing and manufacturing industries, offering valuable insights into the trends shaping the future. The event was more than just a showcase of technology and innovation—it was a forum for discussions about the challenges, opportunities, and evolving dynamics of the industry for passionate professionals. The following points are the major takeaways that the Tutor Intelligence representatives consolidated through their many conversations throughout the conference.
The State of the Industry
A major theme of the conference was the economic outlook for co-packers and machinery suppliers. Last year presented significant challenges, with companies facing tightened budgets and shifting market demands. However, the sentiment moving forward is cautiously optimistic. Industry leaders anticipate moderate growth this year, signaling a return to steadier operations.
For co-packers, the ability to rapidly launch new products has become a defining factor for success. Speed and flexibility are not just advantages, they’re essential. Brands are increasingly prioritizing partnerships with co-packers who can adapt quickly, communicate effectively, and maintain high standards for quality and compliance.
Co-Packers vs. 3PLs: Different Needs, Different Strategies
One critical takeaway from the conference was the distinction between third party logistics providers (3PLs) and contract manufacturers. While both operate in overlapping spaces, their priorities differ significantly.
3PLs view co-packing as a secondary service, a way to add value and strengthen customer relationships rather than a core revenue driver. Automation in 3PL facilities is less about cost savings and more about market differentiation. Having AI driven robotics or automated solutions enhances their reputation and helps them stand out in a competitive space.
Co-packers, on the other hand, see automation as a necessity. Reducing labor related risks, such as worker shortages, injuries, and quality control issues, is a top priority. Cost savings also play a significant role, but risk mitigation remains the dominant factor influencing automation investments.
What Brands Want from Their Co-Packers
When it comes to brand partnerships, trust is everything. Established, reliable co-packers with a strong track record of consistency and compliance stand out in the industry. Brands are willing to pay a premium for facilities that offer speed, adaptability, and seamless collaboration throughout the product development process.
However, brands also have strict non negotiables. Regulatory requirements such as traceability, serialization, and log management are becoming increasingly critical. Surprisingly, many co-packers are still unaware of these evolving standards, highlighting a gap that needs to be addressed.
Key Considerations for Equipment Purchases
The decision making process for new machinery is driven by two primary factors, trust and price. Established vendors with a reputation for reliability hold a strong advantage. For newer players in the market, competitive pricing becomes an essential strategy to build credibility and secure initial contracts.
Speed and Efficiency Matter
Co-packers operate in an environment where rapid response times can be the difference between winning and losing a contract. Delays in quoting, procurement, or installation can create bottlenecks, making vendors who prioritize quick turnaround times significantly more attractive.
Ease of Maintenance is Key
While service contracts and external maintenance support are valuable, co-packers prefer equipment that their teams can troubleshoot and maintain in house. Reducing downtime and ensuring smooth production operations remains a top priority.
Looking Ahead
The ENGAGE Conference reinforced a core truth about the industry, success is built on relationships. The co-packing and logistics sectors are not just defined by competition but also by collaboration. Companies that embrace partnerships, stay ahead of regulatory changes, and invest in the right technologies will be well positioned for long term growth.
As the industry continues to evolve, one thing remains clear, adaptability and trust will determine who thrives in the years ahead.