For a long time, automation in North America was viewed primarily as a response to high wages or labor shortages. However, recent data reveals a far more uncomfortable reality: low-wage countries such as Bangladesh are, in some cases, automating faster and more strategically than Canada.
This contrast raises a fundamental question for manufacturers here at home: why are we waiting so long to automate?
In 2025, Canada presents a well-known paradox within the manufacturing sector.
Historically, only about 8.4% of Canadian manufacturers have adopted robotic technologies.
Manufacturing remains the national leader in industrial automation, well ahead of other sectors. Investment intentions are increasing: 66% of Canadian manufacturers report plans to invest in robotics and automation.
On paper, these numbers seem encouraging. In practice, however, automation often remains reactive rather than proactive. It typically occurs when labor shortages become critical, fixed costs become unsustainable, or government subsidies become available.
The example of Québec-based manufacturer Royer, founded nearly 100 years ago, illustrates this reality starkly.
By comparison:
In this context, delayed or absent automation becomes a closure risk, not merely a competitiveness issue.
At first glance, Bangladesh should not be an automation leader. Yet reality tells a different story.
By 2023, 18.6% of factories in the garment sector (RMG) had implemented at least one form of automation.
That is more than double Canada’s historical robotic adoption rate.
Large export-driven factories are actively deploying:
While automation is not yet as advanced as in China or Vietnam, the trajectory is clear: it is accelerating.
Why Automate with $1.50/hour Labor?
Because Bangladesh understands a critical point: automation is not just about wages.
The real drivers are:
In other words, automation is viewed as a strategic lever, not a last resort.
|
Canada |
Bangladesh |
|
|
Labor cost |
High |
Very low |
|
Automation rate |
~8.4% (historical) |
18.6% (RMG) |
|
Adoption logic |
Reactive |
Strategic |
|
External pressure |
Labor shortages |
International clients |
Bangladesh faces significant constraints:
Production lines can cost between $150,000 and $500,000 USD, even in a context where more than 80% of factories are SMEs. Yet adoption continues to grow. This creates a striking contrast with Canada. Where Bangladesh automates strategically to meet international market demands and secure future competitiveness, Canada still too often automates reactively, under pressure from labor shortages and rising costs.
Automation is no longer a defensive luxury. It is a strategic decision that must be made before margins erode and operational capacity weakens. If even ultra-low-wage countries are automating to stay competitive, Canada can no longer afford to wait.
Sources : Journal de Montréal, Butex Business Club, CanadianSME Magazine