The fourth industrial revolution, or Industry 4.0, is here; and Advanced Manufacturing drives it. 3D printing, Advanced Robotics, 5G, IoT, Artificial Intelligence, and Virtual and Augmented reality are just some paths this new manufacturing wave is charging through. And it’s only the beginning.
Advanced manufacturing has brought the future here & now by enabling game-changing, disruptive production efficiencies. The progress made has had not only a positive impact on businesses but also on entire economies, societies and the environment. As countries witness the endless benefits of new advancements, it has, understandably, got funders, governments, start-up incubators and accelerators sitting on the edge of their seats.
Overview of the Global Advanced Manufacturing Industry
The global Industry 4.0 market is poised to grow from US$130.90 billion in 2022 to $377.30 billion by 2029, at a Compound Annual Growth Rate (CAGR) of 16.3%. The advanced manufacturing ecosystem comprises manufacturers (robotics, recycling, new materials) and enablers (tech, energy, logistics). The top players in the world currently are General Electric, Google, AIBrain, General Vision, Microsoft, Siemens, Amazon Web Services, Mitsubishi, FANUC, Cisco, HP, Yaskawa & IBM.
COVID-19 has added urgency to the growth of this market, marked by the immense disruption seen in supply chains and value chains during the pandemic. Among the various segments, IoT is expected to have the highest market share between 2021-2028. The digital twin virtual model, for example, powered by IoT has made its way into OEM manufacturing companies very quickly as it allows for remote tracking of assets and production in real-time. Siemens and Huawei have already jumped into the implementation of these models.
Adding to the momentum is the acceptance of robotics engineering. Industrial robots are no longer looked upon as expensive and rigid; they have now become accessible and multi-functional. In 2021, 486,800 robots were shipped from across the globe, according to the International Federation of Robotics. In Feb 2021, ABB Ltd launched SWIFTI, a speedy and robust robotic arm for payloads up to 4kg.
By application, automotive, transportation and chemical segments are expected to be early adopters of Advanced Manufacturing.
North America leads global Advanced Manufacturing
North America currently has the densest clusters of advanced manufacturing start-ups. Canada, for instance, is actively building up modern manufacturing capabilities to maximize competitive advantage in the global manufacturing market. The ‘Made in Canada’ campaign and Canada’s Advanced Manufacturing Cluster created under the Global Innovation Clusters Initiative have boosted Canada’s Fourth Industrial Revolution with funding of up to CA$250M available for eligible start-ups.
This initiative is expected to have a GDP impact of over $13.5 billion and create over 13500 jobs in Canada within 10 years. Canada is also working with universities, colleges and academicians to develop curriculums that can add to the highly skilled labour force Canada already enjoys.
Within Canada, Ontario continues to be the engine of Advanced Manufacturing. As a pioneer in artificial intelligence and robotics research and development, the province has built the second-largest IT cluster in North America. Amazon, Google, IBM, Shopify and Cisco are just some companies that have chosen to invest here. Since 2019, Toronto has added the highest number of tech jobs in North America, surpassing even San Francisco.
Meet the new wave of innovative Canadian Advanced Manufacturing Start-Ups
Aspire Food Group, uses Ai, Robotics, Analytics and Automation to create a sustainable non-meat protein supply chain in Canada.
Deepsight is digitizing work instructions into 3D holographic guides to be used for training and skill development using Augmented Reality.
Starfish Medical redesigned the ventilator and reintroduced a Winnipeg Ventilato suitable for large-scale manufacturing and use.
Arcelor Mittal Dofasco’s secondary ladle metallurgy facility successfully underwent a digital transformation with data intelligence, a massive achievement for a manufacturing asset in a mature, heavy industry.
Incentives for Advanced Manufacturing Start-Ups in Canada
The Canadian and Ontario government have announced and been successfully executing mammoth-sized advanced manufacturing projects in the country already. There are many initiatives, funds and resources made available to manufacturing business owners worldwide to set up in Canada. Here are some of the top resources to take advantage of:
Ontario’s Advanced Manufacturing Consortium (AMC): The AMC is a strategic partnership between McMaster University, the University of Waterloo and Western University to provide easy access to facilities and technical expertise required by innovative manufacturing start-ups.
Accelerated Investment Incentive: A complete write-off for newly-acquired manufacturing and processing equipment is available with the new Canadian federal tax credits. Additionally, Canada offers tariff-free imports of advanced machinery and equipment from parent companies – which means no import duties. The first country in the G20 to create this incentive.
The Advanced Manufacturing (NGen) Supercluster is a triumphant accelerator for advanced manufacturing start-ups as it brings manufacturers, technology providers, researchers, schools, government, investors and business networks to Fastrack manufacturing projects.
Scientific Research and Experimental Development (SR&ED) Advanced Manufacturing businesses can avail of this tax credit incentive that reduces 15-35% of tax expenditures in the form of tax deduction, tax credit or a cash refund.
Strategic Innovation Fund (SIF) offers funds of up to $10M for R&D projects, industrial research and development and technology demonstration.
Take advantage of Ontario’s advanced manufacturing incentives for Start-ups
Being an advanced manufacturing start-up in Ontario is a boon for any entrepreneur looking to make a mark in the global market. Government support, access to capital and mentorship are just a few of the resources that are made available to start-ups through start-up incubators like BHive. BHive boasts of expert Venture Managers trained to help global entrepreneurs set up advanced manufacturing facilities in Ontario. Contact us today!