From microproduction to industrial manufacturing: the journey of Quebec manufacturing innovators
Summary
The recent rise in tariff tensions between Canada and the United States paradoxically creates a strategic moment for Quebec manufacturing innovation. As demonstrated by the experiences shared at the February 2025 Hardtech Innovators Meetup in Montreal, techno-industrialization is transforming the traditional economic equation of production. With U.S. tariffs threatening up to 41% of costs for some products, Quebec entrepreneurs are proving that, with strategic planning and innovative approaches, local manufacturing can compete with Asia while offering higher margins and better quality. More than simply adapting to circumstances, the experience shared by entrepreneurs at HIM enables us to think differently and ambitiously about North American manufacturing.
Introduction
The recent Hardtech Innovators Meetup brought together four Quebec manufacturing entrepreneurs who are redefining the rules of the local production game. Katherine Homuth(SRTX), Nick Saltarelli(Mid-Day Squares), Sophie Roy (formerly ofOatbox) and Pierre-Edouard G.(Fabli) shared their inspiring journeys from micro-production to industrial scale, demonstrating how innovation and daring turn challenges into opportunities.
Reimagining the manufacturing economy
"We have to use such high levels of information and software in the way we manufacture that labor cost is essentially not a relevant input cost," explains SRTX's Katherine Homuth. This approach, which she calls "techno-industrialization", shifts the competitive advantage from labor costs to energy costs, naturally positioning Quebec as an ideal manufacturing center.
Fabli's Pierre-Édouard Goriaux reinforces this view: "Our manufacturing partners are in direct competition with China, and their only advantage is to bring production back here. They have to find innovative solutions to stay competitive. And the reality? Our entire Quebec supply chain is already competing with China."
This perspective is borne out by his real-life experience: "We've gained around 15 Canadian dollars in margin compared to manufacturing in China, while developing a much higher-quality product."
As Goriaux sums it up perfectly, "Quebec is at the top on many levels. It's time to manufacture here."
Start small, think big
Nick Saltarelli of Mid-Day Squares shares a perspective that resonated throughout the discussion: "You don't need astronomical sums of money to create an incredible manufacturing industry-just start makingshit."
His company is a perfect illustration of this philosophy, having started production in a condo before moving on to a commercial kitchen, and then to a fully industrialized operation.
"When we analyzed the options, the gap between our raw materials and the final cost offered by contract manufacturers didn't make sense," explains Saltarelli. After evaluating 26 different contract manufacturers, Mid-Day Squares chose an incremental approach to building its own production capacity.
"Nobody in their right mind was going to give us money to build a factory, considering that none of the founding team had any experience in this particular field," he adds. This "micro-factory" approach enables companies to validate their concepts before seeking major investments.
Vertical integration as a strategic advantage
For SRTX, the decision to acquire a hosiery factory closing in 2019 wasn't simply tactical-it represented a fundamental pivot. "The materials needed to solve our problem essentially came from the ballistic world," explains Katherine Homuth. "They were breaking all the standard textile machines."
This bold acquisition transformed the company from a garage operation to "Canada's largest hosiery factory", just months before COVID struck.
Adapting to pricing challenges
Impending US tariffs pose a significant threat to Canadian manufacturers. Katherine Homuth shares that her company had to make the difficult decision to temporarily lay off 40% of their workforce, anticipating potential tariffs of 41% on products shipped to the US, which accounts for 85% of their business.
"It's truly disastrous for Canada if this happens-but we're moving quickly to adapt and protect our industry," she stresses.
Its strategy in the face of this storm is threefold:
- Restructuring the supply chain to source locally
- Accelerating development of the Canadian market
- Temporarily reduce headcount to ensure business continuity
Despite these challenges, the panelists remain optimistic. Sophie Roy of Oatbox observes, "Canadians are proud to buy Canadian, and we're seeing a lot more traction in the Canadian market." This sentiment creates a bulwark against international trade disruptions, while reinforcing the strength of domestic brands.
The future of manufacturing
Speakers stressed that the future of manufacturing does not lie in the search for low-cost labor, but in the adoption of techno-industrialization.
Quebec's clean, affordable energy perfectly positions the province for this manufacturing revolution. As Katherine Homuth observed, "Canada has some of the cheapest, cleanest energy in the world. It's the perfect place to build techno-industrialization."
Nick Saltarelli adds an inspiring dimension to this vision: "We hear about GDP in the news all the time... each of us literally contributes to GDP in our office every day. We are a living, breathing, creating organism."
Conclusion
More than ever, it's crucial to recognize the strength of Quebec's manufacturing sector. Instead of looking abroad, companies have the opportunity to tap into the expertise, talent and infrastructure that already exist here. Many companies are proving that world-class products can be made locally, reducing dependence on uncertain global supply chains.
By prioritizing Quebec manufacturers, we can stimulate innovation, create jobs and build a more resilient industry.
The consensus is clear: by investing in local manufacturing capabilities, embracing automation and capitalizing on Quebec's inherent advantages, companies can build resilient models that contribute to economic growth while reducing dependence on uncertain global supply chains.
Moderator : Julie White (MEQ - Quebec Manufacturers & Exporters)