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Cogio
Strategy· 10 min read· by Alexandre Sauvageau

AI in a metal fabrication shop: five use cases that pay for themselves

Estimating, DXF bills of materials, CSA standards, schedules: five local AI use cases that pay for themselves in a metal fabrication shop.

A welding arc throwing sparks across a steel workpiece
Photo: Paata Gogua, Pexels

Five expensive irritants found in almost every shop

Metal fabrication shops resemble each other on one point: the value rests on a handful of people. The estimator who knows the prices by heart. The project manager who knows which press brake is free. The welder who guesses the right joint preparation without opening the procedure. As long as those people are there, everything runs. The day one of them leaves, the knowledge leaves with them.

At a steel structure fabricator in the Eastern Townships, the picture was typical: roughly 100 GB of drawings, specifications and history sat dormant in network folders, unfindable at the moment the estimator needed them. The full case study sets out that engagement; this article draws the lessons that apply to most shops.

  • Estimating that is slow and variable, dependent on a few experts who are hard to replace
  • Bills of materials counted by hand from the drawings, with the errors in lengths, quantities and weights that come with it
  • Resource conflicts (the same certified welder, the same press brake, the same crane) discovered too late
  • Welding and assembly know-how never written down, exposed to retirements
  • Drawings, pricing and quotes to protect, for Law 25 as much as for commercial confidentiality

Use case 1: assisted estimating, because the estimator is your bottleneck

Quotes go out at the pace of the expert preparing them, and every public tender arrives with a hard deadline. An assistant that indexes your past quotes changes the posture: the estimator asks “what have we quoted that is comparable to this walkway?” and gets the relevant files, the prices used and the particulars of the contract, with the source cited down to the page.

The enterprise brain principle applies in full: the assistant prepares a basis for the estimate, the estimator adjusts, decides and signs. The speed comes from the search; the judgment stays human. The gains are to be measured at your site, quote by quote.

Use case 2: bills of materials extracted from DXF files, not recounted by hand

Counting parts by hand on drawings is slow, and it is the surest way to miss a plate or get a length wrong. An extraction agent reads the DXF files and produces a structured bill of materials: profiles, lengths, quantities, weights.

The output never goes straight into production. It arrives as a checkable table, with a reference back to the original drawing, and someone from the shop validates it before it feeds purchasing or cutting. That is the rule of the game: AI counts, people confirm.

Use case 3: searchable standards, from CSA W47.1 to the RBQ licence

CSA W47.1 and W59, CWB certification requirements, the conditions of the RBQ licence issued by Quebec’s building authority: these frameworks govern every public contract, and nobody reads them cover to cover in the heat of the moment. A conversational search engine indexes your procedures, your work instructions and your compliance documents, then answers by citing the document and the page. No invented answers: if the source does not exist, the assistant says so.

The most lasting effect lies elsewhere. By formalizing the questions and the answers, you capture the veterans’ knowledge before they leave: the foreman who asks “what joint preparation for this profile?” enriches, answer after answer, the company’s memory. Knowledge that retires is poorly replaced; it is much better captured.

Use case 4: schedule conflicts spotted before they stop the floor

The same certified welder is scheduled on two contracts in the same week. The press brake is booked twice. The crane arrives before the steel. These conflicts are usually discovered when the floor grinds to a halt; a constraint-optimization agent spots them in the schedules while there is still time to act.

The agent proposes resequencing scenarios; the project manager chooses. Nobody hands the plant over to an algorithm: you hand it the chore of cross-referencing dates and resources, the one nobody has time to do by hand.

Use case 5: the meeting summary, the fastest gain to deliver

It is the least spectacular use case, and often the first delivered: the production meeting is transcribed then summarized, and the decisions, the owners and the action items come out structured. In the engagement described, the meeting and procedure agents made up the first wave, the one that builds trust.

The value goes beyond the writing saved: decisions stop evaporating. Three months later, “who decided to change the bolt supplier, and why?” has a documented, dated answer, attached to its context.

Deploy in waves: people validate everything, and the first value arrives fast

Deploying everything at once is the surest way to fail. The engagement described planned five agents delivered in waves, with a decision point at every milestone: measure, adjust, continue or stop. The first measurable value was targeted at around two months, carried by the meeting and procedure agents.

On the hardware side, a single server installed in the plant is enough: a GPU with 48 GB of memory runs open models in the 24-billion-parameter class, under the Apache 2.0 licence, so with no royalty and no per-token subscription. Our comparison of models to host yourself sets out the current options.

One rule is not negotiable: no sealed drawing is produced automatically. The engineer’s seal remains a human act, as does weld certification. AI prepares the deliverables; the expert validates them and answers for them.

5

agents delivered in waves in the engagement described, with a decision point at every milestone

2 months

to the first measurable value targeted: summaries and procedures go into service in the first wave

48 GB

of video memory on a single server in the plant: enough for open models in the 24-billion-parameter class

Funding: close to half the invoice covered in a real package

In the package prepared with this client, public support covered roughly 45% of the implementation invoice, combining ESSOR and NRC IRAP. ESSOR stream 1B reimburses 50% of eligible expenditures up to $20,000, and stream 1C, 50% up to $50,000, for SMEs with 250 employees or fewer and revenue of at least $2.5M; applications can be filed until March 31, 2027.

NRC IRAP is aimed at SMEs with fewer than 500 employees, the C3I credit covers 15% to 25% of computer hardware acquired before 2030 depending on the region, and Services Québec funds team training up to 75%. Our overviews of Quebec and federal support set out the conditions and the documents to prepare.

Where to start

Start with the inventory: where do your drawings, specifications, work instructions and past quotes sit? Then pick a first low-risk use case (meeting summaries are a good candidate), set an indicator before you start and give yourself a real decision point at the first milestone.

Cogio designs this kind of enterprise brain: custom agents, hosted on your premises, where AI prepares and people decide. To find out what such a project would produce in your shop, let us talk.

Frequently asked questions

Do we have to send our drawings to the cloud to use AI?

No. A server installed in the plant, fitted with a 48 GB GPU, runs open models in the 24-billion-parameter class under the Apache 2.0 licence. Your drawings, your pricing and your quotes stay with you, which simplifies both Law 25 compliance and the protection of your competitive advantage.

Can AI seal a drawing or certify a weld?

No, and it never should. The engineer’s seal is a human act, as is the certification required by CSA W47.1 and the CWB. AI prepares the deliverables (searches, bills of materials, draft documents); the expert validates them, signs them and answers for them.

Our network folders are a mess. Is that a blocker?

No, that is the typical starting point. At the steel structure fabricator cited here, roughly 100 GB of drawings and specifications sat dormant in network folders before the project. Indexing starts precisely with a sort: you decide what goes into the enterprise brain, what gets archived and what gets thrown out.

How long before a first result?

Deployment goes in waves, with a decision point at every milestone. In the engagement described, the first measurable value was targeted at around two months, carried by the summary and procedure agents. Every context differs: set your indicators before starting and measure at your own site.

What funding is available for a project like this?

ESSOR stream 1B covers 50% of eligible expenditures up to $20,000, stream 1C up to $50,000, for SMEs with 250 employees or fewer and revenue of at least $2.5M (applications until March 31, 2027). NRC IRAP targets SMEs with fewer than 500 employees, and the C3I credit covers 15% to 25% of computer hardware acquired before 2030 depending on the region. In the package prepared for the engagement described, those levers covered roughly 45% of the invoice.

What about predictive maintenance on the machines?

It falls outside the five use cases in this article, because it requires sensors and a data history few shops have to begin with. The published benchmark from McKinsey mentions 30% to 50% fewer unplanned stoppages when it is well deployed: that is a published reference, not a promise. Start with the documents; the sensors can come later.

Sources and references

This article is a plain-language summary, accurate as of the date shown. It is not legal advice: for your own situation, consult a legal adviser or contact the Commission d’accès à l’information.