MattPak avoided a $150,000 upfront investment for a traditional palletizing system by choosing a full-service automation model, setting a new precedent for scaling in co-manufacturing, according to Food Dive. This strategic choice allowed MattPak to bypass significant financial barriers, demonstrating a novel approach to increasing capacity without the typical capital expenditure. The move addresses a critical aspect of the co-manufacturer dilemma: learning to say yes to more business in 2026 by enabling agile growth.
Co-manufacturers need to expand capacity to meet growing demand, but the high upfront costs and operational risks of traditional automation often deter them. This tension frequently restricts growth potential in a sector facing escalating client requirements.
More co-manufacturers will likely shift towards flexible, service-based automation and digitalization to rapidly scale operations and remain competitive in a demanding market. This strategic pivot allows companies to enhance service delivery and operational intelligence simultaneously.
MattPak's Operational Overhaul
MattPak implemented automation, starting with end-of-line palletizing, to address physically demanding tasks and reduce injury risk, according to Food Dive. Since deployment, MattPak has experienced 98% system uptime with its automated palletizer. By targeting physically demanding tasks, MattPak not only enhanced worker safety but also achieved remarkable operational reliability, a critical factor for consistent co-manufacturing output. This 98% system uptime confirms the efficacy of outsourcing operational reliability, allowing co-manufacturers to focus on strategic growth rather than equipment maintenance.
The Blueprint: Flexible Automation and Digitalization
Formic's automation model offers a significant departure from conventional capital expenditure, including no large upfront investment, 24/7 support, and equipment flexibility, according to Food Dive. MattPak digitalized its co-production for greater data visibility, streamlined workflows, and stronger quality-related processes, according to Nulogy. These accessible, adaptable solutions provide co-manufacturers with the agility and financial accessibility needed to modernize operations and gain a competitive edge. The combination of zero upfront investment and near-perfect uptime fundamentally shifts the risk profile, allowing companies to experiment with automation in high-demand areas like end-of-line palletizing without typical financial anxieties.
