{"id":4780,"date":"2025-01-14T04:19:53","date_gmt":"2025-01-14T09:19:53","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=4780"},"modified":"2025-01-14T04:19:53","modified_gmt":"2025-01-14T09:19:53","slug":"using-packaging-automation-to-offset-labour-costs-and-national-insurance-contributions","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=4780","title":{"rendered":"Using Packaging Automation to Offset Labour Costs and National Insurance Contributions\u00a0"},"content":{"rendered":"


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Following the announcement of the UK\u2019s 2024 Autumn budget, UK businesses are set to face significant increases in costs associated with labour throughout 2025. The jump in employer National Insurance contributions will be a headache for many and mean that companies will need to look at where they can tighten their belts.\u00a0\u00a0<\/h2>\n

Compounding this, the UK labour market<\/a> has cooled substantially from post-pandemic highs and remains challenging, compared to the last two decades. It\u2019s getting harder to recruit and retain staff, particularly in logistics and operations-based roles. Last year, it was reported that some 76% of logistics leaders were experiencing notable workforce shortages<\/a>.\u00a0\u00a0<\/p>\n

So, how can business maintain efficiency whilst mitigating increased cost impacts? Packaging automation could be key. Have you ever considered it?\u00a0<\/p>\n

In this article, we will give a brief overview of packaging automation, explain how it can help you tackle increase in labour costs from rises in National Insurance contributions and provide examples of packaging machinery you can consider.\u00a0\u00a0<\/p>\n

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What is packaging automation?\u00a0<\/strong>\u00a0<\/h2>\n

Packaging automation is the process of packaging products without or with less manual human intervention, using machinery to assemble or dispense packaging materials.\u00a0<\/p>\n

It can also involve the movement of product or parcels throughout a warehouse between picking, packing and dispatch sites.\u00a0<\/p>\n

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5 signs your business needs automated packing processes\u00a0<\/strong>\u00a0<\/h2>\n

So, how do you know if packaging automation is right for your business? Here are five signs you can consider:\u00a0<\/p>\n

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  1. Your packaging is increasingly taking up room in your warehouse\u00a0<\/li>\n<\/ol>\n
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    1. You continually need to hire new staff for your production and\/or packing line\u00a0<\/li>\n<\/ol>\n
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      1. Your packs produced per hour isn\u2019t increasing in line with demand\u00a0<\/li>\n<\/ol>\n
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        1. Your business is creating increasing levels of packaging waste\u00a0<\/li>\n<\/ol>\n
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          1. You experience an uplift in customer complaints about damaged goods (if demand is too high, packing quality could be less reliable)\u00a0<\/li>\n<\/ol>\n

            If you\u2019ve said, \u201cYes\u201d to just one of these signs, it might be worth you considering if you can automate any part of your packaging processes. If you want to see our full automation checklist, click here <\/a>to download it.\u00a0\u00a0<\/p>\n

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            How packaging automation can reduce costs associated with labour and NI contributions<\/strong>\u00a0<\/h2>\n

            Labour costs, including employer National Insurance contribution, represent a substantial portion of many companies operating expenses. The good news is that implementing automated packaging systems can drastically improve your productivity, lower costs in multiple areas and enhance your sustainability without the associated increase in headcount.\u00a0\u00a0<\/p>\n

            Let\u2019s look at the benefits packaging automation offers:\u00a0\u00a0<\/p>\n

            Labour costs, including employer National Insurance contribution, represent a substantial portion of many companies operating expenses. The good news is that implementing automated packaging systems can drastically improve your productivity, lower costs in multiple areas and enhance your sustainability without the associated increase in headcount.\u00a0\u00a0<\/p>\n

            Let\u2019s look at the benefits packaging automation offers:\u00a0\u00a0<\/p>\n