search icon
Back to press release

Canadian Manufacturers Prioritizing Investment in Technology and New Markets in Response to Canada-US Trade Relationship, Sage Research Finds

Canadian manufacturers fight back in face of fluctuating trade regulations affecting business, but remain confident thanks to investments in technology
Highlights:
  • 58% Canadian process manufacturers consider expanding into new geographies and markets a priority
  • 49% of respondents say that changes to CUSMA (formerly NAFTA) are affecting their business
  • 89% admit that changes to import/export conditions are having a “high” or “very high” impact on their strategic decision-making

Richmond, B.C. (July 22, 2019) –– Sage, the market leader in cloud business management solutions, today released the Canadian findings from its global survey of more than 900 process manufacturers . Almost half of Canadian respondents (49%) to the survey said that pending regulatory changes introduced by the Canada-United States-Mexico Agreement (CUSMA – formerly NAFTA) are affecting their business. In addition, 89 per cent regard the fluctuating import-export regulations as having a “high” or “very high” impact on their strategic decision-making.

Despite this challenging business environment, Canada’s process manufacturers remain confident in their ability to control their own destiny, with 86 per cent reporting that they expect to be industry leaders by 2025. Their top three priorities for driving this future success are emerging technology (59%), expansion into new geographies and markets (58%), and research and development of new products and solutions (54%). 

The industry’s overall optimism is consistent with the results of Sage’s recent We Power the Nation survey, which found that despite citing “political uncertainty” as the largest barrier to investing in international trade, 64 per cent of Canadian businesses expect the amount of trade with customers and suppliers to increase next year – a higher percentage than their counterparts in either the U.S. (56%) or U.K (49%).

“Despite the headwind that Canadian manufacturers acknowledge, our research reveals a sector more technologically-savvy and confident in its position of international leadership than ever,” said Paul Struthers, Executive Vice President and Managing Director, Sage Canada. “With the Fourth Industrial Revolution in full swing, Canada’s manufacturers are taking full advantage of the technologies and skills they need to excel, with half saying uncertainty around CUSMA is making them more likely to invest in technology.”

An Industry in Transition

The report, entitled “Riding the wave of uncertainty: How process manufacturers are planning for a brighter future in 2019,” depicts an industry aware of its own digital transformation, with 62% of Canadian respondents expecting emerging technologies such as robotics, Internet of Things (IoT), and automation to be the development with the greatest impact on their industry in the next five years.

Other key findings from the report include:

  • 68% of respondents said they had recent or mature deployments of on-premises enterprise resource planning (ERP) software, with an additional 25% of respondents planned to deploy on-premises ERP software in the future
  • 55% had recent or mature deployments of cloud-based ERP software (with an additional 32% planning to deploy it in the future)
  • 50% reported implementing advanced and predictive data analytics (with an additional 42% planning to do so in the future)
  • 47% reported implementing automation and robotics (with an additional 43% planning to do so in the future),
  • 46% reported using IoT (with an additional 44% planning to do so in the future).

“We are encouraged by the industry’s plans to invest in and deploy AI, automation, robotics and other emerging technologies,” Struthers said. “That so many of Canada’s process manufacturers are already taking advantage of the gains technology offers in terms of productivity and efficiency shows that Industry 4.0 is a robust, quickly levelling playing field.”

Methodology

Questions were asked on a wide range of subjects including business plans and technology adoption, and fielded in American English, British English, and Canadian English and French. A total of 906 qualified individuals (302 in the U.K., 303 in the U.S. and 301 in Canada) completed the questions they were asked. They all had decision-making responsibility at mid-sized manufacturing businesses in an IT or business role.

Additional resources

Like Sage on Facebook – https://www.facebook.com/SageNAmerica/
Follow Sage on Twitter – http://www.twitter.com/SageNAmerica

About Sage

Sage (FTSE: SGE) is the global market leader for technology that helps businesses of all sizes manage everything from money to people – whether they’re a start-up, scale-up or enterprise. We do this through Sage Business Cloud - the one and only business management solution that customers will ever need, comprising Accounting, Enterprise Management, People & Payroll and Payments & Banking.

Our mission is to free business builders from the burden of admin, so they can spend more time doing what they love – and we do that every day for three million customers across 23 countries, through our 13,000 colleagues and a network of accountants and partners. We are committed to doing business the right way and giving back to our communities through the Sage Foundation.

Media contact:

Betty Tian
Sage
Office: 604-207-3611
Mobile: 604-376-7398
[email protected]