After mechanization (1.0), mass production (2.0) and digital automation (3.0), the manufacturing industry is now entering its fourth era: one in which, thanks to artificial intelligence and communication, machines achieve productivity gains while enhancing the value of workers' tasks. Two experts from the Fund shed light on this.
If we recall that robotization (3.0), combined with globalization, caused many jobs to be lost in North America at the end of the last century, Industry 4.0 has a very different human impact since it helps to alleviate the shortage of candidates in a labor-short market in North America.
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“Manufacturing industries had already gained productivity by using robots, but with Industry 4.0, we add intelligence and communication; the company is full of sensors that allow devices and software to automatically coordinate their tasks,” explains Nicolas du Parc, Director of Investments, Venture Capital and Technologies for the Fund..
“This intelligence translates into more productivity, less resource consumption, and greater safety for workers. Ultimately, 4.0 is not intended to replace humans, but to help them in their tasks.”
Improving quality of life and safety
He cites the example ofOmnirobotic,a Laval-based company partnered with the Fund, which integrates artificial intelligence into robots currently used in liquid painting and powder coating processes.
“For example, in a factory that produces a wide variety of parts to be painted, a human currently does it, because you cannot reprogram the robot for each part. This person does the painting, is exposed to volatile chemicals during this process, and then performs the inspection to ensure the part is properly painted. With a technology like Omnirobotic, the robot will reprogram itself automatically according to the geometry of the part, paint it, and the employee will then be able to carry out the inspection safely, protected from paint spray”, explains Nicolas.
Because it stands in solidarity with workers, whose savings it invests in local companies, the Fund is sensitive to this human aspect, the expert adds.
“Our vision of 4.0 is an opportunity for workers to develop their skills to better contribute to the company's productivity while thriving more in their work, with improved quality of life and safety. In each of our investments related to 4.0 projects, we ensure that jobs will be maintained and that the changes will be positive for people as well as for the environment,” he says.
A matter of competitiveness
However, his colleague Martin Latreille, Director of Investments, Industries, specifies that the push for 4.0 is above all motivated by a pressing need for competitiveness among local companies.
“ Companies have already lost a lot of productivity compared with American ones over the last 15 years. Furthermore, the pandemic has shown that they have an interest in simplifying their supply chains to depend less on external factors. They therefore need to optimize not only their production but all of their business processes: inventories, procurement, customer service, etc.,” says the expert.
He cites the partner company Maibec, which benefited greatly from automating the packaging of the cedar shingles it sells across North America, and continues to optimize its painting processes among other things. According to him, the Lévis-based company perfectly illustrates how technological transition will now be the determining issue for the competitiveness of Quebec manufacturing.
Quebec expertise stands out
The good news for Quebec companies that want to make the leap is that they can find solid automation expertise in the province. To name a few, there is Excelpro, a leader in automation and industrial electrical work with 275 employees; or Worximity, a company partnered with the Fund, which works to maximize data collection in production to create real-time dashboards, in order to make decisions faster and reduce waste.
It is, moreover, to encourage networking between companies wanting to automate and those that can help them that the Fund is involved in the Grouping of Companies in Industrial Automation (REAI). Its 135 members combine revenues of more than $1.3 billion. It's the kind of initiative that allows the Quebec manufacturing sector to reach 45% automation today, compared with 39% in Ontario.
“It's important to connect all the players, because you should know that 4.0 technologies are not sold off the shelf: most are developed custom. They then have to be integrated into existing processes, not only technically but also at the human level, so you need not only adequate technical support but also a thoughtful approach to change management,” explains Martin Latreille.
Nicolas du Parc mentions the recent automation plan of Groupe Meloche, which was a nice project on paper but whose implementation depended on worker involvement. The Fund made Groupe Asthuce, its team of multisector experts, available to the company, which proposed organizing discussion groups to precisely identify workers' needs, understand their apprehensions, and devise solutions upstream. This made it possible to demonstrate the benefits of the project to them while allowing them to contribute their own improvements, and therefore to embrace it more easily.
The strawberry tower, and other visions of the future
“The role of the Fund as a venture capital investor is to help expertise emerge right here, and to prevent our manufacturers from having to seek solutions in Europe or Asia. We want to prepare champions who will not only meet local needs, here at home, but also stand out on global markets,” insists Mr. du Parc.
In Quebec, the typical candidate for 4.0 is a manufacturer that produces a large variety of different parts, but in small volumes – what is, in good French, called High Mix, Low Volume. Nearly three quarters identify with this profile, according to the expert, in fields ranging from aerospace to furniture manufacturing to the jewelry industry.
“Beyond the individual efforts of each company, our entire economy is called to transform. One can imagine, for example, that one day, instead of bringing strawberries by truck from California, they will be grown directly in the greengrocer's parking lot, pesticide-free, in towers fully automated year-round with a low carbon footprint. Bold players of this kind can come and shake up our companies, but ours are equally capable of shaking them up by strengthening their strategic 4.0 approach,” he illustrates.
As for change management, it must be achieved through involvement and communication, believes Martin Latreille.
“ The main challenge of 4.0 remains human, because it sometimes has an unforeseen impact on company culture. Adjustments must be made by supporting workers. We talk about automating repetitive tasks, but which ones will bring the most value? By studying the question collectively, members of the organization will find the most fruitful paths.”
