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Low investments in technology slowing down productivity
- January 17, 2020
- News Release
- Management
Canadian Manufacturers & Exporters (CME) has released the “Industry 4.0 and Canada’s Digital Future in Manufacturing” report, which highlights some key reasons that Canadian manufacturers are not adopting new technology when compared to international counterparts.
The report emphasizes that low investment rates in new technologies are negatively affecting Canada’s productivity, as well as its share of global markets. It identifies three hurdles to technology adoption for manufacturers: high purchase costs and uncertain ROI, lack of information and testing opportunities, and skill and labour shortages.
“Data from the World Economic Forum shows Canadian businesses are very risk-averse compared to their U.S. [counterparts]. Canada ranks 31st in the world when it comes to business appetite for entrepreneurial risk, and 28th when it comes to companies’ willingness to embrace risky or disruptive business ideas,” said Dennis Darby, president/CEO of CME.
CME is advising that three key areas of the report be implemented to improve spending and its associated competitiveness.
1. The federal government must improve the accessibility of information about new technologies for business owners and testing opportunities by funding case studies, technology demonstration hubs, and site visits, and work directly with CME to develop tools to help manufacturers plan their journey toward technology adoption.
2. The government also must offset high purchase costs and investment risks of new technologies by working with provincial governments to implement a joint federal/provincial 20 per cent tax credit on the purchase of new machinery, equipment, and technologies, including software.
3. Take steps to encourage more Canadians to choose a career in the manufacturing sector and to solve the skills and labour shortage crisis by funding the development of workforce planning consortia across the country.
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