STIQ publishes the results of its Cdn. mfg. study
by CM Staff
The study informs us that Quebec manufacturing SMEs are taking a cautious approach to investments due to inflation and high interest rates, resulting in reduced investments until an expected recovery in 2025.
MONTREAL — The multisectoral association of Quebec manufacturing companies, Sous-traitance industrielle Québec (STIQ), released the results of the 15th edition of its Baromètre industriel québécois. This annual study, conducted with the firm BIP Recherche, offers an in-depth analysis of the current state of the Quebec manufacturing sector, highlighting trends, challenges, and opportunities for SMEs in the field.
This year’s Baromètre industriel québécois focused on key topics such as succession planning, business profitability, and environmental commitments, highlighting the importance of effective business practices, including investments and the integration of digital technologies.
The methodology of the Baromètre industriel québécois relies on a telephone survey conducted with 500 local manufacturing SMEs between January 17 and February 13, 2024, along with an in-depth analysis of the key results.
The Baromètre reveals significant trends shaping the industrial landscape in Quebec, including: the economy, sales, human resources, digital technologies, cybersecurity, and environmental management. The study informs us that Quebec manufacturing SMEs are taking a cautious approach to investments due to inflation and high interest rates, resulting in reduced investments until an expected recovery in 2025.
Although manufacturing companies significantly hired in 2023, the issue of succession planning remains a persistent challenge.
On the other hand, the benefits of digital technologies are becoming increasingly evident, leading to increased productivity and cost reduction, but adoption rates remain low; meanwhile, cybersecurity challenges are gaining prominence along with increased business awareness. Finally, environmental management is emerging as a priority, driven by personal convictions of managers.
However, significant challenges persist, including economic uncertainty and labor shortages, emphasizing the importance of long-term talent management strategies for the future success of Quebec companies.
The share of Quebec’s manufacturing GDP in the overall economy slightly decreased, from 13.1% in 2022 to 12.9% in 2023. Sales of manufactured goods did not increase compared to the previous year, due to high inflation. Additionally, the growth of Quebec’s exports was slowed down.
Highlights:
- The Quebec manufacturing sector experienced a slowdown in 2023 due to high inflation and interest rates.
- Despite this slowdown, the sector remains a cornerstone of the Quebec economy, representing 85% of Quebec exports and employing over 441,000 people.
- Companies are adopting a more cautious attitude towards investments due to economic uncertainties.
- Recruitment and retention of specialized labor remain issues, although the situation slightly improved in 2023.
- Digital transition is progressing, but only half of the companies have integrated one or more digital technologies.
Companies using digital technologies benefit from increased productivity, reduced repetitive tasks or low value-added tasks, improved product quality, cost reduction, as well as mitigating the impact of labor shortages and attracting new talent. - Cybersecurity is becoming a growing concern for companies, with 73% of respondents considering it a somewhat or very important risk.
- Two-thirds of companies have made commitments to environmental management, but only 16% have quantified targets.
