Automation Study in Quebec: A Strategic Accelerator for SME Operations

According to a recent study of Quebec SMEs, automation is no longer just a technology initiative it has become a critical operational lever for improving performance. Conducted in summer 2025 by the Canadian Federation of Independent Business (CFIB) in collaboration with Investissement Quebec (IQ), the study provides a clear picture of automation adoption among SMEs and its impact on operations.

A Real Productivity Challenge in Quebec

The report highlights a fundamental issue for operations leaders: in 2024, Quebec’s hourly productivity stood at $56.4, compared to $59.2 for the Canadian average and $57 in Ontario.

In this context, SMEs which represent 99.7% of businesses and 55% of salaried employment in Quebec are on the front line when it comes to closing this gap. Automation is therefore no longer seen as an optional technology project, but as a direct tool for improving operational performance.

Why Quebec SMEs Automate: Clearly Results-Driven Motivations

According to the study, SMEs that have adopted automation do so primarily for well-defined operational reasons:

• 81% automate mainly to increase productivity, a significant increase compared to previous years, showing that automation is becoming a priority for optimizing internal processes.
• 62% also view automation as a lever to improve profitability, a strong indicator that automation is not just about doing things faster, but about doing more with existing resources.
• 59% automate to address labour shortages.
• 58% do so to reduce time spent on repetitive tasks.

These figures provide an essential, pragmatic perspective: automation can deliver visible operational improvements in the short to medium term, making it a compelling tool within transformation and operational optimization plans.

Obstacles and Support

While interest in automation is strong, the study highlights several persistent challenges:

• Financing is still largely self-funded by SMEs, even though external levers, such as government loans, grants, or tax credits, remain underutilized.
• Specialized support (consultants or public organizations such as Investissement Quebec) is used by only a minority of businesses.

Proportionate and Accessible Investments

Contrary to common perceptions, automation projects are not reserved for large organizations. The report shows that:

• Microenterprises (0–4 employees) invest a median amount of approximately $20,000.
• Manufacturing SMEs report a median investment of $500,000, reflecting the more capital-intensive nature of industrial automation.
• When adjusted per employee, median investment generally falls between $2,500 and $5,500 per employee, across all company sizes.

This indicates that the financial effort is proportional to the company’s structure, rather than a systemic barrier.

Return on Investment: Fast Results for Most SMEs

For operational decision-makers, return on investment remains a key factor. On this front, the findings are particularly compelling:

• 62% of Quebec SMEs that observed an ROI achieved it in less than three years.
• Among them, microenterprises are the fastest, with 49% achieving ROI in under one year.
• SMEs with 20 to 49 employees stand out for optimal mid-term ROI, with 57% recovering their investment within 1 to 3 years.
• In contrast, large enterprises (>500 employees) tend to experience longer timelines, with 42% requiring more than three years to reach ROI.

These results confirm that well-targeted projects aligned with critical processes can deliver rapid returns, especially in small and medium-sized organizations.

Measurable and Tangible Productivity Gains

Beyond financial ROI, the impact on productivity is clear:

• The median productivity gain after automation in Québec is 17%.
• SMEs with 0–4 employees and those with 20–49 employees report median gains of 20%.
• The manufacturing sector shows a median gain of 15%, while other sectors reach 20%.

The report also highlights a key insight: the first dollars invested generate the highest returns, particularly in small organizations, up to 1% productivity gain per $1,000 invested among microenterprises.

Automation Is a Measurable Lever for Productivity and Profitability, Not a Cost

In a context where every investment decision must clearly demonstrate value, automation emerges as a concrete tool to secure operational capacity, strengthen competitiveness, and support sustainable growth for Québec businesses.

Note : Automation: A Productivity Lever for Québec SMEs, published in October 2025, was conducted over the summer by Investissement Québec and the CFIB. The study analyzed responses from more than 350 Québec SMEs across various sectors, all members of the CFIB and clients of Investissement Québec.

Source : Rapport PDF