Predictive maintenance on rise in Canadian manufacturing, powered by AI, Industry 4.0

Corporations are seeing significant benefits of enhancing predictive maintenance with smart technology.

As artificial intelligence (AI), Industry 4.0, and other technological innovations continue to change the face of Canadian manufacturing in 2025, one specific area that is already seeing major transformation is predictive maintenance. An increase in this approach to equipment monitoring has potential to boost efficiency, minimize downtime and costs, and improve quality control for many businesses across the country.

Predictive maintenance is a process that determines the condition of operational equipment to estimate when the company should conduct maintenance on it. A key advantage of this process is that it enables convenient scheduling of maintenance and prevention of unexpected failure. It also prolongs equipment life, increases health and safety, and optimizes spare-parts handling. Predictive maintenance is not to be confused with preventive maintenance, which does not take current equipment conditions into account.

An undated case study, published by IT and business-consulting firm CGI, describes how a major Canadian utility implemented a predictive AI algorithm to detect warning signs of equipment with CGI’s assistance. The customer had been working with unreliable sensors and transmitters to deliver water-level readings and crucial data-based insight into its machinery; these sensors frequently malfunctioned, prolonging the time required for predictive maintenance while risking environmental damage.

“The AI model we developed can detect anomalies and potential problems that are instantly displayed on a map that enables a rapid response by engineers,” CGI claims in the case study. “The intuitive AI program is easily configurable to enable enhancements as needed, to keep the plant operating reliably and safely around the clock.”

CGI concludes in the report that its AI solution for predictive maintenance delivers unmatched efficiency with its data-driven decisions. “As AI rapidly emerges in the area of predictive maintenance, there remains much ground to cover in the race to transform capabilities and remain competitive.”

Industry 4.0, or using automation and data analysis to create smart factories where machines communicate with each other and workers, is another possible means of revolutionizing predictive maintenance. A Nov. 11 story in CanadianSME magazine notes that Canadian businesses have been investing in the Industrial Internet of Things “to simplify manufacturing and improve supply-chain management.”

In another article from that day, CanadianSME reports that data-driven technology is another factor that is enhancing predictive maintenance for many organizations. “Linamar Corporation utilizes data analytics to optimize operations and implement predictive-maintenance solutions, extending their equipment’s lifespan and preventing costly disruptions,” the magazine says.

“Manufacturers will require data to enhance efficiency and make well-informed decisions as the industry develops.”

Another reason why predictive maintenance may be an ongoing trend in Canadian manufacturing is as a response to economic pressures. Manufacturing sales dropped by 1.3 per cent over the third quarter of last year, the fourth straight quarterly decline, according to a Feb. 13 blog post by CMB Insurance Brokers – which suggests generative AI as a way to enhance predictive maintenance to reduce expenses while improving competitiveness.

A Jan. 2 report by Business & Industry Canada cites examples of corporations yielding recent, solid benefits from technology-driven predictive maintenance. For instance, Magna International, a mobility-technology company based in Aurora, Ont., reduced its unplanned downtime by 35 per cent after it installed smart sensors across its production lines – leading to a return on investment (ROI) of 287 per cent in less than 18 months.

And Bombardier’s plant in Thunder Bay used AI-powered equipment monitoring to lower unplanned downtime by two-fifths, while saving $2.3 million per year. In Vancouver, seaplane airline Harbour Air installed AI monitoring systems for aircraft maintenance: this resulted in a ¼ decrease in the costs of replacing parts, a 45 per cent reduction in maintenance-related delays, and an ROI within 14 months.

“These success stories demonstrate the tangible benefits of AI adoption in manufacturing,” writes Business & Industry Canada.

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