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How technology powers productivity and resilience in manufacturing

Updated: September 10, 2025

Canadian manufacturers are operating in a time of disruption and change, from an increasingly complex global trade landscape and cost pressures to evolving workforce expectations and rapid technological advancement.

While the full impact of these changes is still unfolding, companies that embrace innovation and digital transformation will be better positioned to adapt and grow. Modernizing operations, especially for mid-sized manufacturers, is no longer just about staying competitive; it’s about building resiliency in an unpredictable landscape.

These challenges, as well as the opportunities they create, are closely examined in BDO Canada’s recent Momentum Manufacturing and Distribution survey report, which gathered insights from industry leaders across the country. The results highlight how companies are building resilience and boosting productivity through strategic investment in technology and innovation. In this article, we highlight key insights from the report that are essential for today's Canadian manufacturers and distributors to thrive and evolve.

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1. Innovation for resilience

With labour shortages, regulatory complexity, inflation, and global supply chain instability all creating headwinds, manufacturers are feeling pressure across sectors. Innovation isn’t just a way to stay relevant; it’s becoming essential for future-proofing operations.

Through advanced automation, smarter use of data, or AI-driven insights, modernization enables businesses to remain agile in uncertain times. Those who embrace new technologies are better equipped to manage disruption and maintain momentum.

Delays in adoption render you vulnerable to disruption, making it critical to future-proof your business.

Make the shift now

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2. Digital transformation: Start small, think big

The Momentum survey revealed that roughly one-third of Canadian manufacturers are actively implementing a digital transformation strategy, and the majority are already seeing meaningful results.

Here’s a breakdown of those key insights:

  • Productivity gains: Companies can see measurable efficiency improvements, even from smaller-scale digital initiatives.
  • AI in action: 48% of manufacturers are currently using artificial intelligence in their business in areas like predictive maintenance, operational efficiency, quality control, and supply chain logistics.
  • ROI is real: Among those investing in digital, nearly two-thirds have already seen a return on investment.

Canadian manufacturers are well on their AI journey and are seeing real returns. Be part of the innovation and see how we can help.

Achieve real ROI

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3. AI is not just the shop floor

AI is also making a difference behind the scenes to streamline back-office tasks that typically consume time and resources. From automating invoice processing to helping staff quickly navigate complex regulatory documentation, AI is reducing manual work and improving accuracy.

AI tools are also being used to search and summarize complex documentation, saving teams dozens of hours each month. Even customer service teams are benefiting from AI tools that surface relevant information instantly, enhancing response times and client satisfaction.

How we helped a manufacturing client boost productivity through innovation

AI-driven efficiency in sales and estimating

Our client, a sign manufacturer, recently implemented an AI system to automatically generate high-level quotes. With 90% of their quote requests coming via email, their estimators were spending a significant amount of time on requests from potential customers who would not proceed with a purchase after seeing the price.

The new AI system processes each quote request and responds with an estimated range of the total cost based on the top three most similar past estimates or invoices. It also explains how the estimate was derived and highlights any gaps or upselling opportunities. This system helps the service team quickly identify qualified leads and prioritize their time, improving overall efficiency and sales conversions.

Your biggest challenge can be the next success story. Let’s connect and discuss where AI best supports your business.

Leverage the power of AI

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4. Tackling labour challenges with technology

Hiring and retention remain top-of-mind concerns, particularly as experienced workers retire, and younger generations bring different expectations.

Smart manufacturers are turning to technology to help close the gap by upskilling and training staff to work with digital tools increases both engagement and productivity. They are also looking at reducing repetitive tasks through automation, which frees up employees for higher-value work, which is especially important when headcount is constrained.

Don’t let labour gaps slow your progress. Let us walk you through ways technology can help upskill your staff, automate tasks, and boost productivity.

Empower your workforce

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5. Avoiding common pitfalls in digital transformation

Implementing technology isn’t always simple, and missteps can stall progress, but effective transformations often share several common factors that contribute to a smooth and positive outcome. These are:

  1. Leadership alignment: When executive teams are clear on the value of digital investment, it’s easier to get buy-in and help projects gain traction.
  2. Employee engagement: Involve employees in the process early and show them how the changes will help them. Showcasing the tangible benefits will help drive adoption.
  3. Clear metrics: Define KPI upfront so you can track what’s working, show results, or course-correct if needed.

Throughout any digital project, it’s important to regularly assess whether your digital initiatives are delivering on their goals and not hesitate to make adjustments if required. Especially with AI, experimentation is necessary, and organizations need to have enough agility in their approach to pivot rapidly as they chart their path towards success.

Our change management teams support our clients to understand the goals, vision and needs of the organization, ensuring the appropriate steps are taken for successful implementations.

Avoid delays, missteps, and stalled projects. Let’s connect to discuss strategies to keep your digital initiatives impactful and on track.

Transform with confidence

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6. Investing strategically in growth

Manufacturers are increasingly focused on investments that deliver both short-term efficiency and long-term advantage. According to our Momentum survey, 57% are prioritizing investing in digital tools, while 52% are prioritizing investing in modernizing their facilities and equipment. Other top areas of planned investment include expanding production capacity (44%), marketing and sales (40%), research and development (39%) and sustainability projects (21%).

According to our Momentum survey:

Many are also tapping into government grants and tax incentives to help fund upgrades. These programs, including those targeting clean technology, are playing a growing role in enabling transformation.

Are you making full use of the financial incentives available to support your modernization plans?

Our teams can help you access various funding sources and coordinate with all levels of government to support strong business cases.

Unlock funding

Let us help you turn technology into tangible gains

While uncertainty may be the new normal, manufacturers can take action now to support continued growth. Digital transformation, automation, and AI open up new possibilities for those who are ready to adapt.

Our team works to understand your business goals and help you invest in the right technology at the right time. From using AI on the shop floor to hyper automation in the back offices, we’re here to help you get the most out of your modernization journey.

Fill out the form to speak to a member of our team and learn how we can support your business needs.