Why manual labeling makes your production line unnecessarily expensive and slow

In many manufacturing companies, labeling is still a manual step in the process. Labels are printed, an employee picks up the product, sticks the label on it, and places the product back on the conveyor or in a box. On a small scale, this may seem logical and inexpensive.

However, as production volumes grow, this often becomes a problem. What once was a practical solution slowly turns into a bottleneck in the production line. The process takes more time, requires more labor hours, and becomes more prone to errors.

Automatic labeling can solve this problem. With a labeling machine, companies can produce faster, reduce costs, and make their production process scalable.

How labeling often looks in practice

In practice, we generally see three ways companies organize their labeling process.

1. Manual labeling
Labels are printed and then applied to the product by hand.

2. Semi-automatic labeling
An employee places products one by one onto a machine that applies the label, after which the product is removed again.

3. Fully in-line labeling
The product is automatically labeled during the production process and then immediately moves on to the next step, such as packaging or palletizing.

For many smaller companies, the process starts manually. That makes sense: volumes are still relatively low, and investments often need to go to other parts of the business first.

But as production grows, labeling quickly becomes a time-consuming and costly task.

Where is most time lost in manual labeling?

With manual labeling, time is not only lost in applying the label itself. Most of the time is actually spent on the actions around it.

For example:

• Picking up the product
• Picking up a label
• Applying the label correctly
• Placing the product back into the process

These actions are repeated thousands of times per day. As a result, the total time spent adds up quickly.

Another factor also plays a role. Machines operate at a constant speed, while human speed often fluctuates. At the beginning of a shift things usually move faster than later in the day. This makes the output of manual labeling less predictable.

Hidden costs of manual labeling

Many companies mainly look at the direct labor costs of labeling. However, manual processes often contain several hidden costs.

Common examples include:

• Crooked labels: This makes the product look less professional or requires relabeling.
• Lower production speed: The labeling process can become a bottleneck in the production line.
• Physical strain for employees: Constantly picking up products and applying labels can be physically demanding.
• Less attractive work: Sticking labels for hours is repetitive work that employees often do not enjoy.

As production volumes increase, these factors become more visible in daily operations.

ROI of a labeling machine: A simple example

Many companies hesitate to automate because they mainly look at the purchase price. When you look at the numbers, it often becomes clear how quickly a labeling machine can pay for itself.

Current situation without a labeling machine

Suppose an employee manually applies labels at a speed of about 20 packages per minute. On an average production day, 6,000 products are labeled.

The situation might look like this:

• 5 hours of labeling per day
• Employee wage cost: €25 per hour
• 20 production days per month

The costs would then be:

5 hours × €25 = €125 per day
€125 × 20 workdays = €2,500 per month

Situation with an in-line labeling machine

With an automatic labeling machine, the same production could process 50 labels per minute.

For 6,000 products, this means:

• 6,000 / 50 = 120 minutes of labeling
• That equals 2 hours per day

This results in:

• 3 hours of time saved per day
• More room in production planning
• Less dependence on manual labor

The payback period

Suppose a labeling machine costs €14,000 and you save €2,500 per month in labor costs.

The ROI would look like this:

€14,000 / €2,500 = 5.6 months

In other words: the investment pays for itself in less than 6 months. After that, the machine directly generates financial return.

What do companies notice first after switching to automatic labeling?

When companies switch to automatic labeling, they often quickly notice that their production process runs more smoothly. Machines operate at a constant speed, which means the labeling process is no longer dependent on the speed of employees. This creates more stability in the production line.

The quality of the labels also stands out immediately. Labels are applied in exactly the same position every time, giving the product a more professional appearance. Especially when products are placed next to each other in a store or distribution center, this makes a clear difference.

In addition, capacity is often freed up within the team. Employees who previously spent hours applying labels can focus on other tasks within the production process. This makes the overall operation more efficient.

Automation is often more accessible than expected

Many entrepreneurs think that automatic labeling systems are only interesting for large manufacturing companies. In practice, automation often becomes relevant earlier.

For relatively simple applications, such as applying a label to the top of a product, solutions already exist that can be placed above a conveyor belt.

Typical investments are around:

• €8,000 to €9,000 for simple applications
• €15,000 to €20,000 for more advanced systems

This makes automation feasible even for small and medium-sized manufacturing companies, especially when the payback period is so short.

When is the right time to automate your labeling process?

A good first step is to clearly map out the current process.

For example, look at:

• The number of products labeled daily
• How many hours employees spend on labeling
• The expected growth in production
• The requirements for label placement

When these numbers are analyzed together, it often quickly becomes clear whether automation is worthwhile.