From micro-production to industrial manufacturing: the journey of Quebec manufacturing innovators
Résumé
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. While American tariffs threaten up to 41% of costs for certain 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 allows us to reimagine North American manufacturing with ambition.
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 of Oatbox ), and Pierre-Edouard G. ( Fabli ) shared their inspiring journeys, from micro-production to industrial scale, demonstrating how innovation and boldness transform challenges into opportunities.
Reimagining the Manufacturing Economy
“We need to use such high levels of information and software in our manufacturing that labor costs are essentially not a relevant input cost,” explains Katherine Homuth of SRTX. This approach, which she calls “techno-industrialization,” shifts the competitive advantage from labor costs to energy costs, naturally positioning Quebec as an ideal manufacturing hub.
Pierre-Édouard Goriaux of Fabli reinforces this vision: "Our manufacturing partners are in direct competition with China, and their only advantage is bringing production back here. They must find innovative solutions to remain competitive. And the reality? Our entire Quebec supply chain is already competing with China."
This perspective is confirmed by his real-life experience: "We gained about 15 Canadian dollars in margin compared to manufacturing in China, while developing a significantly higher quality product."
As Goriaux perfectly sums up: "Quebec is at the top on many levels. It's time to manufacture here."
Start small, think big
Nick Saltarelli of Mid-Day Squares shared a perspective that resonated throughout the discussion: "You don't need huge sums of money to create an amazing manufacturing industry—just start making shit. "
His company perfectly exemplifies this philosophy, having started production in a condo before moving 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 proposed by contract manufacturers didn’t make sense,” Saltarelli explains. After evaluating 26 different contract manufacturers, Mid-Day Squares chose an incremental approach to building its own production capacity.
"No one in their right mind was going to give us money to build a factory, considering that none of the founding team had experience in this specific field," he adds. This "microfactory" approach allows companies to validate their concepts before seeking major investments.
Vertical integration as a strategic advantage
For SRTX, the decision to acquire a shuttered hosiery factory in 2019 wasn't just tactical—it represented a fundamental pivot. "The materials needed to solve our problem were essentially coming from the ballistics world," explains Katherine Homuth. "They were breaking all the standard textile machinery."
This bold acquisition transformed the company, taking it from a garage operation to "Canada's largest hosiery factory," just months before COVID hit.
Adapting to tariff challenges
Looming 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 its workforce, anticipating potential tariffs of 41% on products shipped to the United States, which represents 85% of its business.
"It's truly disastrous for Canada if this happens—but we are acting quickly to adapt and protect our industry," she said.
Its strategy in the face of this storm is deployed in three axes:
- Restructuring the supply chain to source locally
- Accelerate the development of the Canadian market
- Temporarily reduce staff 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 much more traction in the Canadian market." This sentiment creates a buffer against international trade disruptions while reinforcing the strength of domestic brands.
The Future of Manufacturing
Speakers emphasized that the future of manufacturing lies not in the pursuit of low-cost labor, but in the adoption of techno-industrialization.
Quebec's clean and affordable energy positions the province perfectly for this manufacturing revolution. As Katherine Homuth observed: "Canada has some of the cheapest and 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... every one of us literally contributes to GDP in our office every day. We are a living, breathing, creating organism."
Conclusion
Now 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 manufactured 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, businesses can build resilient models that contribute to economic growth while reducing dependence on uncertain global supply chains.
Moderator: Julie White ( MEQ - Manufacturers & Exporters of Quebec )