If we intend to reclaim our position as a global manufacturing powerhouse, industry and government must act with urgency to accelerate technology adoption and give Ontario businesses the tools to compete and win.
REBUILDING ONTARIO'S MANUFACTURING ADVANTAGE
Ontario has led Canadian manufacturing for generations, but that advantage is slipping. A new report released by the Toronto Region Board of Trade puts the challenge in plain sight: Ontario's productivity problem is, at its core, a technology adoption problem.
The Technology Imperative: Rebuilding Ontario's Manufacturing Advantage draws on a survey of 200 manufacturing leaders across the region and the numbers tell the story. Manufacturing GDP has fallen 17% since 2002. Productivity sits at 70% of U.S. levels. Export growth has lagged nearly every other province for two decades. And yet, only 37% of manufacturers have invested in AI, and just 32% in advanced robotics with smaller firms falling even further behind.
The path forward requires action from both industry and government. For manufacturers, the report calls for stronger peer networks, cultures that genuinely reward learning and innovation, and sharper ROI measurement to guide smarter investment decisions. For government, the ask is straightforward, fund facilities where manufacturers can test new technologies without carrying the full cost alone as they have done in Singapore, streamline the patchwork of support programs so smaller firms can actually find and use them, and set a clear, public bar for where Ontario's productivity needs to go.
Global supply chains are being redrawn. Defence and energy spending is climbing. Ontario has the workforce, the infrastructure, and the industrial base to compete for what's coming. What it has lacked is urgency. This report is a case for finding it.
Read the full report and recommendations here
"This should be a wake-up call for all of us. Only a small fraction of Ontario manufacturers – 15% – consider their technology adoption advanced, compared to 70% south of the border. Even more concerning, 86 percent of Canadian leaders know technology could completely transform their business, yet the majority remain stuck. If this isn’t turned around quickly, Ontario will not reverse the erosion of its important manufacturing base."
—Giles Gherson, President and CEO, Toronto Region Board of Trade
"In a world of heightened uncertainty and global competition, Ontario manufacturers have no option but to adopt advanced technologies in order to compete and grow. This report addresses many of the fundamental challenges that are holding back smaller manufacturers that are the bedrock of the sector and of the Ontario economy. Its recommendations are important for government and for business alike. We need to act now to ensure that Ontario has a manufacturing future."
— Jayson Myers, Chief Executive Officer, NGen
“As this report makes clear, Ontario can become a global leader in advanced manufacturing – but only if we act decisively. By creating Shared Technology Hubs, we will de-risk innovation for manufacturers by providing them with a space to experiment with AI and digital-twin technologies, inspire students to pursue careers in advanced manufacturing, as well as strengthen our ecosystem in high-growth sectors like aerospace and defense, datacenters, and nuclear energy.”
— Joris Myny, Senior Vice-President, Digital Industries, Siemens Canada