Industrial Restructuring in the U.S. Logistics and Packaging Sector: Winners and Losers in the Age of Automation

The U.S. logistics and packaging sectors are undergoing a seismic shift driven by consolidation and automation. As companies realign strategies to navigate macroeconomic pressures and technological disruption, the winners and losers are becoming starkly apparent. This article examines the forces reshaping the industry and identifies the firms poised to thrive—or falter—in this new landscape.

The Rise of Consolidation: Winners in the M&A Surge

Consolidation has accelerated in 2024–2025, with institutional investors and industry leaders targeting infrastructure and high-margin niches. BlackRock’s proposed $22.8 billion acquisition of CK Hutchison’s global ports business underscores the sector’s pivot toward scalable infrastructure assets [1]. Similarly, UPS’s $1.6 billion purchase of Andlauer Healthcare Group reflects a strategic shift toward healthcare logistics, a segment insulated from broader freight volatility [1]. These moves highlight a broader trend: firms leveraging M&A to dominate resilient markets.

Third-party logistics (3PL) and supply chain technology firms are also thriving. WiseTech Global, for instance, reported a 14% revenue increase in fiscal 2025, driven by its $2.1 billion acquisition of e2open, which expanded its supply chain software portfolio [2]. The company’s EBITDA margin of 49% demonstrates the profitability of digital integration [2]. Meanwhile, logistics automation leaders like Honeywell and Dematic are capitalizing on the $23.8 billion U.S. logistics automation market, which is projected to grow at a 10.4% CAGR through 2034 [3].

Automation as a Double-Edged Sword

Automation is a critical differentiator, but its benefits are unevenly distributed. Large enterprises, which account for 64% of the logistics automation market, are investing in AI-driven demand forecasting, warehouse management systems (WMS), and robotics to reduce costs and improve efficiency [4]. For example, the U.S. packaging automation market, valued at $22.82 billion in 2024, is projected to reach $39.73 billion by 2034, fueled by robotics and IoT-enabled systems [5].

However, smaller firms are struggling. The high upfront costs of automation and integration challenges have left many mid-sized companies lagging. Feldmuehle, a German specialty paper producer, recently filed for insolvency under self-administration, illustrating the vulnerability of firms unable to adapt [6]. In the U.S., labor shortages and supply chain disruptions further exacerbate these challenges, with 70% of packaging facilities reporting delays in automation implementation due to skilled labor gaps [7].

Strategic Failures and Market Share Losses

Consolidation has also created losers. The packaging sector’s shift toward sustainable and smart solutions has marginalized companies that failed to innovate. For instance, firms in the food and beverage sector that resisted adopting hygienic, scalable packaging solutions have seen market share erode to competitors leveraging automation [8]. Similarly, logistics providers that delayed investments in electric vehicle fleets and AI-driven route optimization face higher operational costs and customer attrition [9].

UPS’s Q2 2025 results highlight the risks of misalignment: its Supply Chain Solutions segment saw an 18.3% revenue decline due to the divestiture of Coyote and soft demand [10]. While the company offset this with a 5.5% increase in revenue per piece in its U.S. Domestic segment, the contrast underscores the importance of strategic agility.

Investment Implications and the Path Forward

For investors, the key lies in identifying firms that combine technological agility with strategic foresight. Winners are those investing in high-margin niches (e.g., healthcare logistics), digital infrastructure, and automation. Losers are often smaller players unable to scale or adapt to regulatory and market shifts.

The long-term outlook remains positive for the sector, driven by e-commerce growth, infrastructure spending, and sustainability mandates. However, the winners will be those that embrace automation not as a cost center but as a competitive advantage. As the industry consolidates, the ability to integrate AI, robotics, and data analytics will separate the resilient from the obsolete.

Source:
[1] Transportation and Logistics: US Deals 2025 Midyear Outlook, [https://www.pwc.com/us/en/industries/consumer-markets/transportation-logistics/transportation-logistics-deals-outlook.html]
[2] WiseTech Global Reports Strong FY25 Financial, [https://www.tipranks.com/news/company-announcements/wisetech-global-reports-strong-fy25-financial-performance]
[3] US Logistics Automation Market Size, Trends and Insights, [https://www.linkedin.com/pulse/us-logistics-automation-market-size-trends-insights-20252034-m-vuasf]
[4] Logistics Automation Market Size, Share & Forecast Report, [https://www.gminsights.com/industry-analysis/logistics-automation-market]
[5] U.S. Packaging Automation Market Size, Share & Report, [https://www.expertmarketreports.com/reports/united-states-packaging-automation-market?srsltid=AfmBOooTC1suXWqvVBn-r9KZ_6ecc8iB5DK4r0YMlPLzAbfrkqGNGlbl]
[6] Paper Clips Industry News, [https://www.midlandpaper.com/about-us/paperclips-industry-news/page/3/]
[7] Packaging Industry Outlook: Trends, Challenges & ..., [https://modula.us/blog/packaging-industry-outlook/]
[8] United States Packaging Automation Systems Market Size, [https://www.linkedin.com/pulse/united-states-packaging-automation-systems-market-wbghf]
[9] How automation is solving logistics' biggest problems in 2025, [https://www.freightwaves.com/news/how-automation-is-solving-logistics-biggest-problems-in-2025]
[10] UPS Reports $21 Billion in the Second-Quarter of 2025 Revenue, [https://www.stattimes.com/air-cargo/ups-reports-21billion-in-the-second-quarter-of-2025-revenue-1356037]