BOLTON, Ont. — Last year may have been a strong one for many dealers, but the year ahead is likely to have its challenges. That’s the outlook from one industry leader, Bob Holmes, general manager of the Ontario-based buying group, TORBSA. “Yes, 2018 was very good for TORBSA,” he affirms. “We had significant growth across all our members.” The group has 25 dealer members representing 49 locations, most of them in Ontario, with one in Richmond, B.C. They are mainly contractor-oriented yards, and many are heavy commercial yards specializing in drywall, steel studs and ceilings, or cement and block.

“I think we outperformed the market,” he says, of the group’s sales growth in 2018.

But looking ahead to the remainder of 2019, Holmes takes a more cautious approach. And the root causes run deeper than just key indicators such as the decline in housing starts. He anticipates even more profound changes. “I think it’s a totally different business.”

Last year, the big concern among his members was securing adequate supply as shortages and tariffs put a pinch on commodities. At the same time, prices rose, helping correct a market that had seen prices remain static in recent years—despite increased demand and rising costs. One challenge he anticipates is simply holding onto those increases, “making sure those prices don’t erode.”

Holmes also expresses concern about ongoing consolidation in the industry, especially as U.S. interests continue to invest north of the border. He cites the takeover of USG by German-based distributor Knauf, and the effect that could have on the Canadian business. But he sees more takeovers at the dealer level, as well, like last year’s acquisition of WSB Titan by Georgia-based GMS.

“Companies like FBM [Foundation Building Materials] and GMS are knocking on the doors of independents that don’t have a succession plan,” he says. “That’s going to be a marker in 2019."

In fact, FBM has just signed a dealer with three locations in the Greater Toronto area, Builders’ Supply (see “Retailer News” in this issue. —Editor).

Holmes expects this trend to continue to shape the retail landscape in Canada. Most independent dealers belong to buying groups, which are distinctly Canadian and work to negotiate deals with Canadian, or Canadian-based, suppliers. However, large U.S. chains are growing their presence across North America. He wonders what impact this will have on negotiations for the buying groups. “It’ll change the way we do business,” he says.

HALIFAX — The Building Supply Expo of the Atlantic Building Supply Dealers Association (ABSDA) is getting its third run in Halifax this year. The show, one of the last two major regional buying shows in the country (the other is the WRLA’s Buying Show in Calgary in January), was relocated by its organizers in 2017 after 35 years in Moncton.

This year’s event will be held at the Halifax Convention Centre. The show kicks off March 12 with the “ABSDA Meet and Greet”, beginning at 6:30 p.m., followed by two days on the show floor. The end of day one will feature the association’s annual gala dinner, with entertainment by Alan Doyle, lead singer and guitarist with the popular Atlantic folk-rock band Great Big Sea.

Through print ads and online promotion, the show organizers have used some clever math to help suppliers justify their “ROI” on participating in the show. Based on attendance by more than 200 dealer locations expected at this year’s show, the ABSDA costed out estimated travel time (150 hours) and distances that would have to be covered (12,000 kilometres), plus meals (147) and hotel nights (38). The logical conclusion, suggest the organizers, is to just come to the show and see all these dealers in one place at one time.

Thanks to the central downtown location of the Convention Centre, the show was able to secure special pricing at three hotels: the Prince George and the Marriott Residence Inn, both of which are already sold out, and the Cambridge Suites Hotel.

(For more information about the 2019 ABSDA Building Supply Expo, click here.)

WORLD HEADQUARTERS, Toronto ― At Hardlines Inc., we are proud to announce the appointment of a new Marketing and Events Manager. Savannah Jessie Crawford joins our team to oversee our promotional and marketing efforts. She will also manage our growing range of events, including the upcoming Orgill Canada Night, this year’s Lowe’s Meet the Buyers Breakfast and our annual Hardlines Conference.

Savannah joins us from Addictive Mobility, a mobile advertising company, where she co-ordinated and marketed the company’s annual thought leadership conference and supervised a range of employee events. She also has experience on the buying side, in a previous role as Materials Coordinator for office furniture company Keilhauer.

Savannah has been involved with the Ride for the Heart and the Ride to Conquer Cancer. Born and raised in Saskatchewan, she has a BA in Communication Studies from the University of Calgary.

SCARBOROUGH, Ont. ― The Canadian Hardware & Housewares Manufacturers Association has revealed its inductees to the 35th Hardware and Housewares Industry Hall of Fame.

Honoured this year are Terry Davis, past president and CEO of Home Hardware Stores Ltd.; Dennis Nykoliation, retired president of Black & Decker Canada, CanWel Building Products and GSW Building Products; and Accent Fairchild Group founder Solly Feldman.

The awards were announced by CHHMA President Sam Moncada. The Hall of Fame was established in 1984 to recognize the achievements of leaders and pioneers in Canada’s hardware and housewares industries. Over the years, 68 industry leaders, inventors, business founders and builders from the retail and manufacturing sectors have received the honour.

This year’s inductees will be honoured on April 2 at a luncheon held in conjunction with the annual CHHMA Spring Conference at the Mississauga Convention Centre. (To view the entire list of past inductees, click here.)

Sarah Tammi has joined Rust-Oleum Canada as account manager. Prior to this, she spent almost 12 years serving key accounts at Shnier. She reports to Chris Hatfield, Rust-Oleum’s national sales manager.

Peter Korecki has been named divisional vice-president, Pro Builder for Lowe’s Canada. He is responsible for pro pricing, external sales processes and estimating operations for all banners, and leads a team of Regional Managers across Canada. With an extensive background that goes back to the president’s role at Pierceys Building Supplies in Halifax, he spent the past decade working in RONA’s pro business division.

...that vendors are signing up fast and furious for our 2019 Hardlines Meet the Buyers Breakfast? Come hear from Igor Halencak, EVP of Central Customer Services for Lowe’s Canada; along with Carol Crystal, Merchandising VP Seasonal & Appliances; Marc Gingras, Merchandising VP Building Materials; and Josée Dumas, Merchandising VP Home Décor. This vendor-only event will be held March 26 at the Imperia Hotel in Boucherville, near Lowe’s Canada’s head office and distribution centre. Click here to sign up today!

CORRECTION: We reported last week in an article about Lowe’s Canada (“Lowe’s CEO remains bullish on Canada”, Feb. 4, 2019) that Lowe’s President and CEO Marvin Ellison visited the Canadian division in November, immediately preceding the decision by Lowe’s Canada to close certain locations in this country. Lowe’s Canada confirms that Ellison’s visit came earlier in the year, and the decision about the Canadian business was made by management at Lowe’s Canada—as previously reported in Hardlines (“With latest announcements, RONA will trim store count, consolidate operations”, Nov. 12, 2018).

TUSTIN, Calif. — Foundation Building Materials, Inc., the giant California-based specialty drywall distributor, has acquired Builders’ Supplies Limited, an independent gypsum supply dealer (GSD) with three locations in the Greater Toronto Area. The deal is expected to add an estimated US$20 million to US$24 million in net sales for the remainder of 2019. Foundation, which carries a range of wallboard, suspended ceilings systems and metal framing products, operates 170 branches across the U.S. and Canada.

ATLANTA — Home Depot is scaling back from its HDE installation business, prompting a round of layoffs. For its part, Home Depot says it’s shifting focus onto its core retail business, but that fewer than 1,000 jobs are affected. “After reviewing the installation business, we’ve decided it’s right to wind down our roofing, siding, insulation and gutters,” said spokesman Stephen Holmes in an interview with financial news service TheStreet. “[They are] just not going to be part of our focus moving forward.” The HDE division isn't disappearing altogether, he added, as other products including windows and doors remain available for installation.

DUBLIN — John Venhuizen, CEO and president of Ace Hardware, has been announced as keynote speaker for the Global DIY Summit in June. The head of the world’s largest hardware retail co-op will speak about management and service for independent retailers. The Global DIY Summit runs from June 5 to 7 at the Convention Centre Dublin. Click here to learn more about the event and to register.

NEW YORK — As big box competition drives many retailers from city centres, IKEA is making ambitious incursions into them, The Economist reports. London, Paris and New York are among the 30 urban core areas that will see new stores as part of IKEA’s current wave of expansion.

MOORESVILLE, N.C. — Lowe’s Iris Home Automation platform will shut down on March 31, the company informed subscribers last week. CEO Marvin Ellison tried unsuccessfully to sell the business last year. Subscribers will be charged for the service only through the end of January, and will be compensated for purchases of devices that are compatible exclusively with the platform.

SUPPLIER NEWS

FERNIE, B.C. ― A large clear-cut north of Fernie, B.C., has community members concerned about logging on private land around the city, following the clear cutting of a swath of land in the Elk Valley. CanWel owns an eighth of the total land in the Elk Valley and has logged a large area on a steep slope north of Fernie. This has increased locals’ concerns about rules surrounding the management of privately owned logging lands. Local activist groups have brought their concerns before the Fernie city council.

MORRIS PLAINS, N.J. — Honeywell reported earnings of $1.72 billion in the final quarter of 2018, including a $435 million favourable adjustment in tax charges. The results followed a $2.52 billion loss for the same period in 2017. Sales were down 10% on a reported basis and up 6% on an organic basis, the disparity owing primarily to the spin-off of businesses from the company’s aerospace and building technology segments.

ECONOMIC INDICATORS

The value of building permits issued in December rose for the fourth month in a row, reaching $8.8 billion. That’s up 6.0% from November. The gain was largely due to higher construction intentions for multi-family dwellings and commercial buildings. Residential permits were up 4.2% to $5.3 billion. In the multi-family dwelling component, the value of permits rose 11.1% to a record high of $3.3 billion, while single-family permits were down 5.4% to $2.0 billion. Non-residential building permits rose 8.9% in December to $3.5 billion.

OUT AND ABOUT

Watch for Team Hardlines at the upcoming TIMBER MART National Buying Show. David Chestnut, Savannah Crawford and Michael McLarney will be walking the show this Friday. It runs February 15 to 16 at the Toronto Congress Centre.