Tariffs Spur Innovation: How Chapman’s Built Canadian Cone Manufacturing, According to Emily Lyons

In a recent LinkedIn post, Emily Lyons highlights how external economic pressures, specifically tariffs, can unexpectedly drive domestic manufacturing innovation. Lyons, who owns a Canadian beauty brand, shared the story of the Canadian ice cream company Chapman’s as a prime example of this phenomenon.

The Domino Effect of Tariffs on Small Businesses

Lyons uses the Chapman’s case to illustrate a broader point about the vulnerabilities of Canadian businesses reliant on foreign supply chains. For years, Chapman’s sourced its ice cream cones from American manufacturers due to a lack of comparable Canadian suppliers in terms of scale and cost. This reliance became a critical point when tariffs were introduced.

According to Lyons, the tariffs presented Chapman’s with a pivotal decision point:

“They could raise prices, absorb the cost, or ask a different question: Could we create this here?”

This crucial question, as Emily Lyons points out, shifted the company’s focus from passive acceptance of external costs to proactive problem-solving and investment in domestic capabilities.

Building Domestic Capacity: Beyond ‘Buying Canadian’

The narrative shared by Emily Lyons emphasizes that the popular call to ‘buy Canadian’ requires a foundational layer of domestic production. She argues that the willingness to invest in Canadian infrastructure and manufacturing is a prerequisite for consumers to support local businesses.

Lyons elaborates on the practical steps involved in establishing such capabilities:

“Someone has to buy the machine. Open the facility. Hire the people. Take the risk.”

This perspective underscores the entrepreneurial spirit and significant investment required to build a robust Canadian supply chain. It’s not just about consumer choice, but about the foundational business decisions that enable those choices.

The Role of Support and Investment

Furthermore, Emily Lyons highlights the reciprocal nature of building domestic industry. While entrepreneurs must take the initial risk, support from other entities is crucial for success. As Lyons notes:

“And someone else has to be willing to say: if you build it, we’ll back you.”

This suggests a collaborative ecosystem where innovation is fostered not only by market forces or individual ambition but also by a supportive business and investment environment. Lyons observes that this story resonates with her because she has witnessed firsthand the extent to which Canadian businesses depend on imported ingredients, packaging, and manufacturing, often due to cost or the current lack of domestic infrastructure.

A Catalyst for Reshoring and Self-Sufficiency

The Chapman’s story, as presented by Emily Lyons, serves as a powerful case study in how external economic challenges can catalyze significant shifts towards self-sufficiency. By the end of the year, an item previously unavailable at scale within Canada will be manufactured domestically, a direct result of strategic adaptation in response to tariffs.

Lyons concludes her post with a call to action, encouraging support for Canadian businesses and emphasizing the underlying need for domestic production infrastructure. Her analysis suggests that fostering a truly ‘Canadian-made’ economy requires a dual focus: encouraging consumer purchasing power and, critically, supporting the entrepreneurs who undertake the risks to build the necessary manufacturing and supply capabilities within the country.