Driving success in manufacturing with the Canada Digital Adoption Program

Navigating the challenges

Despite the promising prospects, manufacturers in Canada face significant challenges in their digital transformation journey:

Skills gap

The survey highlights a lack of skilled workers is impeding the adoption of new technology. The manufacturing sector is facing a lack of young, skilled workers to meet the demands of advancing technology.

Funding challenges

Manufacturers face financial uncertainties, including high interest rates and inflation in 2024. This economic climate is forcing companies to find ways to maintain growth with less funding available.

Cybersecurity threats

In the current digital landscape, cybersecurity poses a growing threat to manufacturers. Given the increased vulnerability, having the right technology to safeguard business operations has never been more crucial.

Canada Digital Adoption Program

Only 47 percent of surveyed manufacturers have a concrete plan for their digital transformation. CDAP steps in as a solution, offering support to develop a comprehensive digital strategy. Through this program, manufacturers can ensure they are investing in the technologies that will work together to serve their specific objectives and unlock funding opportunities to give them a head start.

How CDAP works

• Technology review grant: CDAP provides up to $15,000 in grants for qualifying businesses that covers 90 percent of the cost to engage an approved digital advisor.
• Eligibility: The Boost Your Business Technology Grant is available to Canadian-owned businesses with 1 – 499 employees, generating annual revenue between $500,000 and $100 million in one of the past three tax years.
• Tailored plans: MNP's digital advisors work collaboratively with manufacturers to understand their goals, challenges, and available technology solutions. The result is a tailored plan that identifies key investment areas and provides a roadmap for implementation.
• Interest-free loan: Once the digital transformation plan is in place, manufacturers can apply for a five-year interest-free loan of up to $100,000 to facilitate its implementation.

Potential use cases for manufacturers

• Improve operation efficiency: Invest in robotics, sensors, or software to enhance production planning and scheduling.
• Back office automation: Acquire ERP, payroll, or digital labelling technologies and follow a roadmap for seamless integration with your team.
• IT digital foundations: Understand your data management strategy, conduct a complete cybersecurity risk assessment, and implement strategies to protect your data.
• Skilled workers: Leverage CDAP's Wage Subsidy to receive funding of up to $7,300 per eligible hire when hiring youth (age 18 – 30) to implement new technologies and digital strategies.
• Build credibility: Enhance your marketing efforts and improve your website to increase brand awareness and customer experience with additional CDAP funding opportunities.

Why now?

Long-term capital loans will continue to reflect new market conditions. On top of operating with less cash, manufacturers can expect more restrictive funding moving forward. It is important to take a comprehensive look at what digital technologies you should prioritize. Doing so will ensure the best return on your investment.

Many small and medium-sized manufacturers miss out on operational efficiencies due to a lack of real-time reporting systems. Developing a new ERP system or connecting your equipment to the cloud may seem daunting. Yet, if you had access to all the relevant data, it could improve your business decisions.