Executive Summary

Smart manufacturing (SM) refers to the major progression toward more sophisticated and technologically advanced processes related to manufacturing. Globally, jurisdictions such as the United States, Germany, and Singapore are viewed as leaders in today’s global SM ecosystem. These countries consistently invest in innovation, sustainability, and workforce development, propelling the evolution of manufacturing practices worldwide. For decades, Canada has been recognized for its strong manufacturing economy, driven by large and complex domestic automotive, food processing, pharmaceutical, and aerospace and defence industries. However, despite strong manufacturing foundations, Canada’s SM sector is not as mature as the SM sectors in the international jurisdictions mentioned above.

This project reviewed and assessed the Canadian SM landscape with emphasis on barriers and challenges, including those that could be potentially addressed through standards. It explored the current state of SM in Canada, government policy, funding, and regulations, relevant standards in SM, and Canada’s SM adoption challenges.

The research presents six major identified challenges to strengthening Canadian SM and proposes recommendations, including standards-based solutions, to help address these challenges. The identified challenges are as follows:

• an unclear value proposition to Canadian companies with respect to return on investment and lack of clarity in the specific outcomes of adopting SM technologies;
• difficulties associated with capital access for small and medium-sized companies to invest in and operate SM solutions;
• a prominent and growing national talent gap associated with the highly skilled workers necessary to implement and operate SM technologies;
• complex technical challenges related to interoperability and cybersecurity as a result of the implementation and interconnection of SM solutions;
• national under-investment in the intellectual property assets necessary to scale, commercialize, and realize the financial gains of SM investments; and
• lack of a clear national SM strategy that could organize and synergize what several interviewees see as a fragmented manufacturing ecosystem overall.

The report presents a list of proposed recommendations to help tackle those challenges and better support SM adoption in Canada, including through the use of standards. Achieving successful SM implementation in Canada requires a thoughtful approach that balances short-term requirements with long-term vision. To navigate this journey effectively, organizations should grasp the essential components: infrastructure, skills, and processes. By simultaneously addressing technological advancements and human resource development, businesses could proactively prepare for seamless SM integration.