As Ontario’s construction industry faces potential U.S. tariffs, the need for reliable, locally manufactured components has never been greater. But despite the advantages of buying Canadian-made, one Ontario-based manufacturer has faced an uphill battle penetrating its own market—even while offering a product that meets the highest industry standards.
For over 20 years, the Airgenuity team has been dedicated to designing and building air control systems that protect critical lab environments across Canada. Recognizing the growing need for a local, secure, and sustainable air valve manufacturing solution, in 2020, the team launched a separate production entity; Airstaus to fill the need for, an Ontario-based air valve manufacturer. With years of expertise in airflow control and engineering, the transition into air valve assembly was a natural evolution. However, despite being a proudly Canadian operation, the company has encountered countless hurdles in an industry that has become used to defaulting to U.S. suppliers.
We spoke with Allen Hess, founder of Airstaus, about the company’s journey, the challenges of breaking into the Canadian market, and why now is the time for Ontario’s construction industry to rethink its supply chain.
Building a Manufacturing Legacy in Ontario
Q: What inspired you to start manufacturing air valves in Ontario?
A: We saw major shifts in the industry that demanded a better, more localized response. One of the biggest concerns was where lab control intellectual property is held—our clients needed assurance that their critical infrastructure components weren’t coming from jurisdictions with weaker data residency and cyber protections. Protecting our customers' intellectual property and data sovereignty became a key driver in our decision to manufacture in Canada.
At the same time, global supply chain disruptions have become a constant reality—COVID-19, the Ever Given bulk container blocking the Suez Canal, the Francis Scott Key Bridge collapse, and the most recent conflict in the Middle East hampering shipping in the Red Sea leading to a shipping container shortage, the Ukraine conflict, Western Canada’s wildfires disrupting rail transport, and even threats to the Panama Canal have all highlighted how fragile international logistics have become.
We also recognized that leading markets were concerned with embedded carbon. We wanted to produce products in Ontario where we enjoy one of the cleanest energy girds in the world.
We wanted to provide a stable, just-in-time delivery option that doesn’t leave customers vulnerable to these disruptions. Manufacturing in Ontario allows us to control quality and security, ensure supply chain resilience, and provide a dependable green alternative to offshore products.
Q: How did your experience in ventilation solutions for critical lab environments influence this new venture?
A: Labs require extreme precision in airflow control, and we already had deep expertise in designing systems that meet those exacting standards. Manufacturing air valves was a natural next step because we understood that durability, performance, and reliability are non-negotiable in critical environments. That critical attention to detail is embedded in every valve we produce.
The Hidden Costs of Imported Products
Q: What were the biggest challenges in establishing a Canadian manufacturing operation?
A: The biggest challenge isn’t making a high-quality product—we’ve done that. The challenge is overcoming outdated procurement habits that default to foreign suppliers, particularly from the U.S.
Most procurement processes are structured around total project cost, but the way it's calculated often doesn’t fully account for key factors like:
- The environmental impact of importing products
- The risks of supply chain disruptions
- The cost of increased maintenance and repairs on lower-quality, mass-produced imports
- Embodied carbon
- The long-term economic impact of supporting Canadian jobs
We also don’t have the luxury of making cheaper, lower-quality versions of our products. Unlike some large manufacturers, we don’t produce a premium line and a budget line—we only make top-quality valves for all applications.
Q: What have local buyers who have bought your products seen as added value in choosing you?
A: The biggest feedback we hear is about consistency, reliability, and long-term savings.
- Faster, more predictable delivery – Customers don’t have to worry about cross-border delays, customs issues, or supply chain disruptions affecting their projects.
- Stable pricing – Exchange rates, tariffs, and duties won’t cause unexpected cost increases.
- Lower total cost of ownership – Some foreign-made valves, including U.S. products, come with higher maintenance and repair costs. We manufacture with quality materials and precision engineering, reducing failure rates and extending lifespan.
- Stronger environmental responsibility – Canada has the cleanest energy in the world. Many countries, including the U.S., don’t prioritize low-carbon manufacturing. But procurement processes rarely give credit for that. Why isn’t the “embedded carbon” in a product factored into purchasing decisions?
Why Canada Needs to Prioritize Canadian Manufacturing
Q: What role does local manufacturing play in ensuring stable pricing and supply chain reliability?
A: When you buy local, you eliminate many of the risks that come with international sourcing:
- No waiting for shipments to clear customs
- No sudden tariff hikes or duties
- No currency exchange fluctuations impacting cost
Beyond just reliability, local production keeps jobs in Canada and ensures that critical industries—like construction—are not dependent on unstable global markets.
Q: Why is it so difficult for Canadian contractors to buy Canadian-made products?
A: The reality is that contractors don’t have much choice. To win projects, they have to submit the lowest bid, which means they’re pressured to buy the cheapest products available. And those cheaper options are often non-domestic.
Where’s the incentive to buy Canadian? It is in our hearts and minds but not in practice—at least, not under current procurement structures.
Q: What message do you have for Ontario’s construction industry?
A: It’s time to rethink procurement policies and give real weight to Canadian-made products in bid evaluations. Right now, the system doesn’t reward local sourcing, lower carbon footprints, or supply chain resilience. That needs to change.
We plan to increase Canadian content in our manufacturing and hire more Canadian workers—not because we have to, but because it’s the right thing to do and because we are proud Canadians. . However, if the system were to do a better job of recognizing and rewarding companies like ours for making these commitments, it wouldn’t just help us—it would help the entire Ontario manufacturing sector thrive.