In a context where Quebec manufacturers are facing both a chronic labor shortage and new restrictions on Temporary Foreign Workers (TFWs), automation is no longer a long-term project, it is an immediate lever for resilience.
Recent federal policies have imposed strict limits on hiring TFWs in several manufacturing sectors. Certain regions, such as Chaudière-Appalaches, will be particularly affected as early as this fall. In Beauce, for example, manufacturers are already voicing serious concerns about the potential impact on production (source: EnBeauce).
According to a report from the Journal de Québec, some companies are even mobilizing with coordinated campaigns alongside their TFW employees to persuade Ottawa to ease these new restrictions (source: JdQ).
Automation: A Strategic Investment, Not an Expense
A few years ago, investing in a robotic cell might have seemed costly and risky. Today, the opposite is true: waiting costs more than acting.
| Comparison Point | TFW Worker | Robotic Cell |
|---|---|---|
| Annual cost (wages, housing, etc.) | $45,000 – $55,000 | $35,000 – $75,000 (CAPEX) |
| Risk of sudden loss | High (non-renewal, turnover) | Low (depreciable asset) |
| Payback period | N/A | 2–5 years |
| Cost per working hour | $25–30/h (with overhead) | $7–12/h (incl. maintenance) |
| Availability 24/7 | No | Yes |
Result: In most cases, a robotic cell achieves ROI in 12 to 24 months—often faster when subsidies are applied.
Subsidy Programs: More Generous Than Ever
Several government programs directly support automation as a solution to labor shortages. Key programs include:
ESSOR – Investment Support Stream
- Up to 50% of eligible expenses in grants or partially forgivable loans
- Eligible: automated equipment, industrial software, integration engineering, training
- Managed by Investissement Québec
PSCE – Business Competitiveness Support Plan
- For both SMEs and large manufacturers
- Automation included in eligible projects
- Can be combined with other government support
Investment and Innovation Tax Credit (C3i)
- Rates between 10% and 20% depending on region
- Eligible: automation, robotics, vision systems, etc.
- Can be combined with ESSOR and PSCE
SR&ED Tax Credit
- If automation projects involve R&D or custom engineering, a large portion may be reimbursed.
- The earlier the decision is made, the stronger the economic leverage.
The Bottom Line
With labor shortages and federal restrictions on TFWs intensifying, Quebec manufacturers must rethink their operating models. Automation is a direct, measurable, subsidized, and in many cases more profitable alternative to human replacement.
FAQ
1. Do I need all the technical details before applying for a subsidy?
No. A project estimate, quote, or preliminary study is usually sufficient to start the process.
2. Are software and programming eligible for subsidies?
Yes, in most cases. This includes vision systems, PLCs, and HMI interfaces.
3. Do subsidies apply to used robots?
Generally not. Programs typically require new equipment.