The latest 2026 Quebec Industrial Barometer published by STIQ sends a clear message to manufacturers: in a business environment shaped by U.S. tariffs, labor shortages, and economic uncertainty, improving productivity is no longer optional—it is a strategic necessity.
The study, conducted among 500 Quebec manufacturing SMEs, shows that companies investing in continuous improvement, automation, robotics, and digital transformation consistently outperform their peers across nearly every key business metric.
For manufacturers, the conclusion is straightforward: the most productive companies are also the ones growing faster, exporting more, hiring more employees, and adapting better to economic challenges.
Productivity: The Manufacturing Industry's Number One Challenge
According to STIQ, Canada continues to lag behind most developed economies in terms of productivity. This gap directly impacts the competitiveness of Quebec and Canadian manufacturers.
In response, manufacturers are taking action.
Among surveyed companies:
- 74% plan to invest in productivity improvements;
- 70% have implemented continuous improvement programs;
- 68% use performance indicators and KPIs;
- 66% have invested in higher-performance equipment;
- 63% have reorganized their plant layout or workstations.
These results demonstrate that manufacturers recognize the urgency of improving operational efficiency.
Automation and Robotics: Key Drivers of Competitiveness
One of the most significant findings of the report relates to automation.
Among companies affected by new restrictions on temporary foreign workers, 66% plan to implement automation or robotics solutions to offset labor shortages.
This confirms a growing trend across the manufacturing sector: robotics is no longer viewed solely as a labor replacement tool. Instead, it is becoming a strategic investment that enables companies to:
- Increase production capacity;
- Reduce dependence on skilled labor;
- Improve quality and consistency;
- Lower operating costs;
- Remain competitive in a challenging economic environment.
Despite these benefits, only 45% of surveyed companies report having already implemented automation or robotics initiatives.
This indicates substantial untapped potential within the manufacturing sector.
Top-Performing Companies Invest More
The Barometer highlights a strong relationship between productivity investments and business performance.
Companies that implemented multiple productivity initiatives are more likely to:
- Increase revenue;
- Improve profitability;
- Export internationally;
- Plan future hiring;
- Advance their digital transformation efforts.
In other words, productivity acts as a force multiplier.
Organizations that invest in their processes, equipment, and digital technologies generate measurable business benefits and gain a competitive advantage.
U.S. Tariffs Are Accelerating Productivity Investments
The study reveals that 80% of Quebec manufacturers have experienced negative impacts from U.S. tariffs.
However, these economic pressures have also created a powerful incentive for change.
Rather than simply absorbing higher costs, manufacturers are increasingly investing in:
- Productivity improvement initiatives;
- Market diversification strategies;
- Automation and robotics projects;
- Modernization of production equipment.
This shift is encouraging for the future competitiveness of the manufacturing sector.
Key Takeaways for Manufacturers
The 2026 STIQ Industrial Barometer confirms what many industry leaders already observe on the shop floor: manufacturers investing in automation, robotics, digital technologies, and continuous improvement achieve better business outcomes.
At a time when labor shortages persist, operating costs continue to rise, and global competition intensifies, automation projects are no longer simply technology initiatives.
They are growth initiatives.
For manufacturers looking to improve productivity, reduce costs, increase production capacity, and strengthen long-term competitiveness, the time to act is now.
Source : Sous-Traitance Industrielle Québec (STIQ)