MONTREAL, May 7, 2018 /CNW Telbec/ - The 9th edition of the STIQ Baromètre industriel québécois (Quebec Industrial Barometer) reveals that nearly 76% of manufacturing SMEs (Small and Medium Enterprises) have integrated or plan to integrate digital technologies. Companies that have begun transitioning to Industry 4.0 reported strong revenue growth, are more likely to sell internationally, are more competitive and have increased their headcount.
"One of the main challenges for Quebec SMEs will be to undertake or continue the transition to Industry 4.0. Too many manufacturing SMEs – one-quarter – have not yet started to integrate digital technologies into their operational and management processes. The Barometer results speak for themselves: companies that have integrated or plan to integrate digital technologies perform better," says Richard Blanchet, President and CEO of STIQ.
A growing manufacturing sector
The manufacturing sector in general experienced considerable growth in 2017. According to the Barometer survey, conducted among 500 companies with 10 to 500 employees, 67% of the companies surveyed disclosed significant revenue growth in 2017 as compared to 2016, whereas a mere 8% reported a decline in their revenue.. Since the survey was first introduced, the difference between these two figures has never been as pronounced.
Similarly, 40% of companies stated a sharp increase in their headcount, whereas only 7% reported a decrease. Since last year, the gap has grown between companies that are hiring and those that are firing.
Quebec manufacturing SMEs must deal with multiple challenges, all interrelated
The STIQ study identifies many issues facing Quebec manufacturing SMEs. The most worrying issues are related to staff recruitment, as it has never been so high and impacts 82% of respondents. The challenge of succession is also major for 73% of SMEs. The situation is critical to the point of jeopardizing the very growth of certain companies.
Although sales are strong, it is another story for new business development. In 2017, just 34% of survey respondents reported that more than 10% of their sales were generated by new customers. This percentage has been decreasing in recent years.
Once again this year, SME investments in equipment have stagnated, while investment in Research and Development (R&D) has receded, with just 13% of respondents reporting that they invested more than 5% of their earnings in 2017.
Innovating and investing go hand in hand
The diagnosis has long been known: Quebec manufacturing SMEs do not invest enough, affecting their productivity and their competitiveness. And yet investing pays off! Companies investing heavily in equipment, in R&D and in ICT (Information and Communications Technologies) are experiencing significant growth in revenues, sales outside Quebec and hiring.
As regards to innovation, the performance of our SMEs is relatively good, but it could be better: one-quarter of them take no, or very few, innovative actions. Once again, the Barometer results show companies that innovate are much more competitive and achieve better results than those that take no innovative action.
The more companies invest, the more they innovate and the more they set themselves apart!
"The results of the Baromètre industriel québécois speak volumes: innovation remains a condition of survival for our companies. The good news is that most SMEs have undertaken innovative actions. However we need to accelerate the shift towards Industry 4.0, invest in technologies and enhance the training of our workforce. At Investissement Québec, alongside STIQ, one of our manufacturing initiative partners, we are there to support companies that want to prosper," says Pierre Gabriel Côté, President and CEO of Investissement Québec.
SMEs play an undeniable role in the longevity and prosperity of the Quebec manufacturing sector. Many are models of success, as they have capitalized on their employees, on innovation, on investments and on leading technologies to meet their customers' expectations. Let's bet that they'll inspire many more...
To read the full study: www.stiq.com
About STIQ
Founded in 1987, STIQ is a multi-industry association of Quebec-based manufacturers whose mission is to improve the competitiveness of manufacturing supply chains in order to promote the development of our economy. With the largest manufacturing network in Quebec, STIQ acts as a performance activator by creating fruitful networking and managing made-to-measure improvement programs.
Website: www.stiq.com - Twitter: @STIQRéseau
SOURCE STIQ
Cindy Mc Culloch, Communications and Partnerships Coordinator, STIQ, Telephone: 514-875-8789 ext. 232, Email: [email protected]
Share this article