Summary: Canadian manufacturers face rising costs and supply chain challenges. ERP, cloud, and AI technologies can help improve efficiency and fuel growth. This article explores practical steps for adoption of technologies that deliver real manufacturing performance, and best practices for implementing those technologies for long-term success.
Technology has moved from an optional extra to a core part of how manufacturing works. For manufacturers increasingly facing challenges and pressures, it can also be a way to improve competitiveness, but only when approached the right way.
Every new technology on the market claims to reduce cost and streamline operations. The secret to real success with implementations is choosing technology with a clear business purpose and a real solved challenge behind it.
How Enterprise Resource Planning, Cloud and AI Impact Manufacturing Growth
Recently, the Canadian manufacturing environment has seen skills shortages and labour gaps affect its productivity. Add the impact of volatile tariffs from Canada’s largest trading partner, the U.S., and rising costs across both materials and labour, and it’s more critical than ever for manufacturers to operate as efficiently as possible.
ERP (enterprise resource planning) systems, the cloud and, Artificial Intelligence (AI) are often mentioned as potential solutions to alleviating some of these challenges, but what do they actually offer?
Understanding ERP, Cloud and AI: A Basic Guide
An ERP system is software that centralizes a manufacturer’s core business processes into one single system. This helps eliminate data siloing, or fragmented data spread over multiple systems. They offer real-time data visibility, and can enable better planning and coordination across the whole business.
The cloud, meanwhile, allows a new level of flexible working. Working hand-in-hand with a modular “bolt-on” approach to technology, it’s easier to scale up and down as needed and can be accessed almost anywhere. This brings extra flexibility and easier use of digital tools.
AI is now used across an array of manufacturing applications. It can automate routine administrative tasks to relieve the load on staff. It’s driving the adoption of automated production lines and co-bots that work alongside people, but also lets manufacturers bring their data together for better analytics and decision-making. In short, the impact (and potential) of AI is vast.
Together, these three technologies break down silos, support existing workers, plug workforce gaps, and help manufacturers be more responsive and better informed. This is a welcome competitive advantage for manufacturers.
Each of the technologies builds upon the other. ERP systems centralize data, but also support AI with that data. The cloud makes it more cost-effective to implement, and brings flexible ways of working together. AI-assisted processes turn hours of manual efforts into minutes of streamlined work, and the ERP refines that into standard, structured workflows business-wide.
Each is valuable on its own, but when used together, a greater impact is possible.
What’s Holding Adoption Back for Manufacturers?
In the 2021 Census, three out of five workers were employed where there was high potential for AI. However, in the second quarter of 2025, only 12.2% of businesses were using AI in production or services. While it’s double the percentage of the year prior, it’s still relatively small. Encouragingly, 11.3% of manufacturers plan to adopt AI hardware.
What’s holding back businesses from doing more?
Technology implementation is perceived as both costly and disruptive. Many manufacturers are tied to pricey machines that run legacy software. They worry that they’ll need massive capital investment to make any modernization move.
Staff could feel threatened by how AI adoption may impact their jobs, and may be reluctant to use digital tools. Many of them may not even feel they have the skills to do so. Inertia often seems more appealing than the stress of shifting to an AI environment. However, the hidden costs of doing nothing are holding back potential efficiency and growth, and increasing compliance risk.
What’s needed is a real understanding of what these systems can do for manufacturers. Not on-paper stats and brand-level hype, but a tangible tie to their current pain points, and a simple way to get started.
Best Practices for Technology Adoption in Manufacturing
Technology investment should never be what’s trendy. It needs to focus on real problems and needs. To make the most of it, manufacturers can follow a simple, structured approach fuelled by best practices.
Start with Business Outcomes
Instead of sorting through overwhelming options, start by defining the problems technology needs to solve. That could include:
- Reducing lead time
- Implementing predictive, not reactive, maintenance
- Improving first-pass yields
- Standardizing workflows for efficiency and ease
- Reducing manual administrative taskloads
With that insight, manufacturers can make investments that are targeted and measurable.
Bring People, Process and Technology Together
Technology only works when it’s used, and used to its full potential.
This means governance and training must be part of any implementation. Clear change management is essential. When you build your workforce’s digital skills, both through hiring and upskilling, you create workers able to use technology to its best potential. And greater returns follow.
Clean Up Data
Legacy systems don’t have to be completely overhauled. Many newer AI tools can be retrofitted to older machines to bring them in line with new developments. For example, sensor systems connected to a central AI-powered dashboard can generate information and insight for predictive maintenance, without replacing the machine itself.
Still, in a digital world, data is king. Both AI and cloud tools need clean, accessible, and above all, accurate data. Here is where ERP systems shine, centralizing and simplifying data collection.
Start Small, Think Big
Overhauling an entire manufacturing firm can be intimidating. Significant capital outlays may make technology investment feel out of reach for small and mid-sized manufacturers.
But smart manufacturers don’t start by changing everything. They open with targeted pilots, such as one under-productive production line, or a single back-office process. This lets them:
- Test the waters without offlining all productivity in the event of implementation issues
- Learn lessons from small implementations they can refine later
- Put generated return on investment (ROI) back into the firm to support future investment
This approach reduces risk and builds confidence.
High-Impact Areas to Explore
Used together, ERP, cloud and AI offer a strong path to new growth. Here’s some of the key areas where this combination can make a real difference.
- ERP with Advanced Analytics: ERP systems bring together shop-floor insight with financial and supply chain information, after which AI-driven analytics turn that data into real-time insight. Manufacturers can highlight problem areas, then prioritize problem zones with faster decision-making.
- AI-Powered Quality and Supply Chain Optimization: ERP and AI together can automate decisions and adjust production runs automatically. Models can use historical data to flag potential issues before they impact productivity.
- Cloud-Enabled Simulation: Digital twins remake real assets as digital ones. These can be used for scenario modelling to simulate results before committing, which leads to greater insight and smarter use.
- Manufacturing Execution Systems (MES): MES platforms monitor and control production in real time. Paired with cloud and AI analytics, this makes predictive alerts a reality, identifying looming problems before they impact output.
Final Thoughts: Technology Adoption for Success
Small and mid-sized Canadian manufacturers can approach technology strategically. Focusing on quick wins brings fast ROI, and basing investment choices on current challenges lets results show early.
Remember, technology is a facilitator, not the end goal. Success is driven by targeted investment in line with business priorities, and supported by people and processes ready for change.
Aprio supports small and mid-sized manufacturers through advisory services to help create alignment between technology and strategy. If you’re evaluating how cloud, ERP and AI can improve your outcomes, Aprio can help you chart a clear and actionable path. Reach out today.