Made in Canada: How Rainstick Shower is Navigating Market Challenges

In the face of global trade disruptions, CEO Alisha McFetridge of Kelowna startup RainStick Shower is leading her company through challenges posed by tariff fluctuations while remaining committed to its mission of helping households significantly reduce water usage. RainStick aims to address the urgent water conservation needs in Canada, which uses around 220 litres per person per day—much of this in residential bathrooms.

Despite Canada’s abundance of fresh water, the country faces severe droughts and water crises, particularly in Indigenous communities. Globally, billions lack access to safe drinking water, highlighting an urgent need for improved water efficiency. McFetridge identified that a significant portion of household water usage occurs in bathrooms, making it a critical area for saving water.

RainStick launched its innovative shower system in 2023, designed to clean and recirculate water, improving pressure while cutting consumption by up to 80%. Their product, which reuses water multiple times during a single shower, was recognized as one of Time’s best inventions. It not only saves water but also reduces energy usage, solidifying RainStick's potential impact on environmental conservation.

However, recent tariff increases, including a 35% tariff on Canadian goods entering the U.S. as of August 1, 2023, have made future growth uncertain. RainStick has grown 200% from 2023 to 2024, but ongoing trade unpredictability poses challenges in product commercialization and market expansion. To adapt, RainStick is evaluating its manufacturing processes and material sourcing to mitigate the effects of tariffs.

The uncertainty has affected relationships with suppliers and customers, illustrating the broader impact of trade tensions on businesses. One significant project faced delays, reducing its scope by 50% due to companies being hesitant to invest given the volatile market conditions. In response, RainStick is pivoting its business model to explore new market opportunities beyond the U.S.

McFetridge emphasizes the importance of having a financial buffer, advising business leaders to plan conservatively amidst instability. Recently, consumer interest has shifted; while previous trends leaned towards climate action, there is now an urgent focus on cost-cutting amid economic pressures. Despite this shift, there remains a consumer interest in sustainable solutions.

RainStick has begun shipping its products to Europe, particularly targeting the U.K. due to its high water and energy costs coupled with a strong interest in climate action. This expansion is part of a strategy to diversify their sales channels amid domestic uncertainties. They’re receiving increased inquiries in regions affected by water scarcity, such as the West Coast and New Orleans, where local initiatives are integrating RainStick’s technology into resilient housing projects.

Looking ahead, RainStick plans to expand its presence in local plumbing stores, new housing developments, and hospitality venues. The company aims to develop a lower-cost product to reach a wider consumer base while enhancing its international visibility over the next year. In sum, RainStick Shower is navigating challenges with innovative solutions, positioning itself as a key player in the movement toward sustainable water management.