Panel Abstract:
Smart manufacturing is an essential path to enhancing productivity, innovation, and competitiveness in Canada’s industrial sector. This panel will explore how the integration of advanced technologies (AI, automation, IoT), applied research, specialized training, and public policy can support a sustainable manufacturing transition. Through a variety of perspectives—industrial, academic, economic, and governmental—the panelists will discuss the levers needed to build an agile and sovereign ecosystem. This dialogue will aim to identify the winning conditions for anchoring Industry 4.0 at the heart of regional development, economic recovery, and Canada’s industrial strategy.

Summary of Conversations

The transition to advanced manufacturing is a systemic and collective project requiring technological evolution (integration of Industry 4.0), but above all a human and organizational transformation in which data is a lever for decision-making. The main obstacle identified is the lack of digital literacy among managers and the difficulty for SMEs (98% of companies) to adopt innovation without structured external support. The importance of financially de-risking investment projects and promoting sustainable collaboration models between industry, research, and technology transfer centers was emphasized. The need for a culture of continuous change was highlighted, as the pace of technological change will only accelerate. The challenge also includes the valuation of intellectual property.

Take Away Messages/Current Status of Challenges

• Low digital literacy among leaders: Only 6% of business leaders possess digital literacy skills, which often leads them to view digital technology as a perpetual cost center rather than a lever for growth.
• Barriers to adoption for SMEs: SMEs, which represent 98% of the economic fabric, are preoccupied with day-to-day production and survival, making it difficult to devote the energy and vision required for strategic innovation projects.
• Lack of internal change agents: Companies tend to finance external expertise (consultants) without embedding knowledge and technological “champions” internally, creating an unsustainable dependency.
• Paralysis by analysis and fear: The search for the “ideal” technological solution often delays the start of transformation, fueled by fear of change or fear of not being up to the task when faced with experts.
• Undervaluation of applied research: Manufacturers often confuse fundamental research with applied research, contributing to the low valuation of intellectual property resulting from public investment
• Availability and security challenge: In Industry 4.0, the availability of connected machines is becoming more critical than data confidentiality alone, as it directly impacts business continuity and worker safety.
• Contractual constraints: Some technology solution providers impose contractual conditions (prohibiting modification or updating) that hinder the evolution of technology in line with the reality and risks of the business.
• Ignorance of the ecological footprint: Companies are unaware of the direct link between energy savings (kilowatts saved) and increased profits, thus lacking a “green culture” in their productivity strategy.

Recommendations/Next Steps

• Adapt support programs for SMEs: Offer upstream support, i.e., free technological expertise combined with financing, to help SMEs design their transition plan before purchasing equipment
• De-risk capital investment: Offer financing programs that are repayable over very long periods with little or no interest to minimize risk and give the company time to adapt to new technologies.
• Strengthen the pooling of resources: Support the emergence and maintenance of technology transfer centers and shared expertise centers in the regions, linked to educational institutions, to provide sustainable, local support.
• Cultivating internal agents of change: Create mechanisms to finance the sustainable anchoring of strategic skills and technology champions within SMEs, beyond simply financing equipment or external consultants.
• Demystifying research and innovation: Raising awareness among manufacturers about applied research by bringing researchers out of their laboratories and into the field, thereby creating a more fluid network and communication.
• Take advantage of pivotal opportunities: Target and support SMEs at key moments, such as when they are taken over or entering highly demanding value chains (e.g., defense), to encourage them to make the leap to Industry 4.0.
• Encourage a culture of continuous change: Convince businesses that transformation is not a stairway to stability, but an ongoing process of continuous improvement, because the pace of change will only increase.
• Celebrate regional industrial pride: Highlight and celebrate entrepreneurs who take risks and successfully transition to new technologies in their region to inspire other SMEs to take the plunge.