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.
Scaling Capacity and Strengthening Client Trust
Customer relationships at MattPak improved exponentially due to the company’s enhanced ability to service customer needs and provide fast, efficient reporting, according to Nulogy. MattPak's facility is planned to grow from its current 55,000 square feet to over 100,000 square feet in the next few years, according to Food Dive. The combined effect of operational efficiency and transparent data has not only deepened client trust but also directly fueled MattPak's ambitious physical expansion plans. Production speed from automation, coupled with digitalization's data visibility, transforms client satisfaction and supports significant physical growth.
A Model for the Co-Manufacturing Industry
MattPak's journey provides a compelling blueprint for other co-manufacturers seeking to overcome traditional growth barriers through strategic, accessible automation and digital transformation. Based on MattPak's experience, co-manufacturers clinging to traditional capital-intensive automation are not just losing out on production efficiency, but are actively sacrificing exponential improvements in customer relationships and future growth agility. Companies that fail to adopt flexible, service-based automation models, like Formic's, will find themselves unable to match the rapid scaling capabilities and superior customer service of their more agile competitors, effectively ceding market share in a demand-driven industry. By 2026, co-manufacturers prioritizing traditional capital outlays over agile, service-based solutions risk losing significant market share to competitors like MattPak.
Addressing Common Co-Man Automation Concerns
How does service-based automation compare to traditional equipment purchases for long-term ROI?
While traditional equipment purchases require substantial upfront capital, service-based models like Formic's eliminate this initial barrier, converting capital expenditure into operational expenses. This allows co-manufacturers to allocate resources more flexibly, potentially achieving faster returns on investment by scaling production immediately without debt, and by avoiding the depreciation of owned assets.
