RONA will launch new vendor listing procedure

BOUCHERVILLE, Que. — In an effort to create a more disciplined relationship with its suppliers, RONA inc. has developed a new basket of "tools" to help its vendors be more efficient. "This is industry best practice," says Eric Cantin, the electrical merchandiser at RONA who spent the last eight months spearheading the project. "We’re going to do it with everyone." The process, a first for North America, will be available for download online by vendors beginning in April. It will lay out a series of steps by which to prepare for selling to one of the country’s largest home improvement retailers. Too often, says Cantin, vendors are ill-prepared, not knowing enough about their own category — or about RONA itself. The new program intends to change all that. It will offer a checklist of steps for preparing for a meeting with a RONA buyer, including important market information. "Do you provide EDI?" asks Cantin by way of example. "If not, go back to your office." According to Cantin, some of the inspiration for the process stemmed from his personal involvement in past buyer events, including Hardlines’ own Meet the Buyers, where vendors may have only 15 minutes to make the right impression. "But if you’re prepared, 15 minutes is plenty of time for a buyer to find out if there’s interest in your product. With this, you’re going to have everything you need to know before meeting us." (Eric Cantin will introduce this new program at our incredible Meet the Buyers seminars, March 27 in Toronto and in Montreal, in co-operation with ADMACQ, on March 29. For details, please call Isabel directly at 416-489-3396 or click here for more info.)

↑ top

Optimism overcomes bad weather at Moncton show

MONCTON, N.B. — The performance of this year’s Atlantic Building Materials Show, held March 1-3, reflects, in many ways, the performance overall of the industry down east. Although it’s still early to get feedback, says Don Sherwood, president of the Atlantic Building Supply Dealers Association, which owns the show, he takes a clue from how the exhibitors felt at the end of the show. "We had a smooth move-out, indicating that the exhibitors were in a good mood. And we had a lot of requests for additional space next year," he adds, despite the fact that the show was held at the beginning of March, instead of at the end, as in years past. "We’re hearing early reports that they like it earlier in the month." The event remains a strong selling show, as more than 1,200 dealers attended the show — despite the threat of bad weather. "The weatherman got us with all the hype on a storm in Ontario," says Sherwood. "Flights were cancelled from [Toronto International Airport] early Thursday, yet most of our delegates were in Moncton." The storm never really materialized. "We received a dusting of snow on Friday evening and the sun was shining and the snow melting by show time on Saturday. Nevertheless, many headed for home early Friday in advance of the weatherman’s predictions." As the only trade show for the industry in Atlantic Canada, it once again proved an excellent networking opportunity, with 830 people at the meet-and-greet on opening night, and 450 at the chairman’s gala. Nest year the dates are March 13-15, "and I can forecast a snow storm already," says Sherwood sardonically.

↑ top

Quebec publication celebrates anniversary with dealer draws

LONGUEUIL, Que. — Louis-Jacques Laferté, a dealer in Drummondville, Que., has won a second draw in a contest that celebrates "50 Years of Quart de Rond". The magazine is the publication of record for the Building Materials Retailers Association of Quebec, ADMACQ. A total of eight gift certificates worth $500 each are being awarded throughout the year. ADMACQ is an association of business people bringing together retailers, manufacturers, wholesalers, and distributors of building materials and hardware products. Laferté himself "is a long-time member of ADMACQ and a loyal reader of Quart de Rond," says association executive vice-president and Quart de Rond editor Donald O’Hara. This draw was sponsored by Maia Home Products Inc., while other sponsors of the anniversary campaign are RDTS, AFA Forest Products Inc., and les Centres de formation en transport routier de St-Jerôme and Charlesbourg (CFTR & CFTC).

↑ top

Ides of March brings big RONA recruitment drive

BOUCHERVILLE, Que. — RONA inc. launched a recruitment campaign last week in anticipation of the coming renovation and gardening season. Candidates were sought for nearly 3,500 positions in a job fair conducted right in 200 of RONA’s own stores. RONA’s biggest recruitment needs are in Quebec, where it is the market leader. About 2,000 jobs must be filled there. In Ontario, about 300 people are needed while close to 1,000 positions are available in Western Canada. Candidates were invited to seek jobs in 72 corporately owned big boxes, which operate under the RONA L’entrepôt, RONA Le Régional, Réno-Dépôt, and RONA Home & Garden banners. More than 100 proximity stores also participated. Students, retirees, and renovation and gardening enthusiasts are being sought in the hiring spree. In fact, to assist students, RONA grants scholarships of up to $500 a year, provided the student employees meet program requirements. RONA also offers flexible working hours to allow students to continue to work when they return to school in the fall.

↑ top

Depressed lumber prices affect CanWel’s year-end

VANCOUVER — CanWel Building Materials Income Fund had fourth-quarter revenues of $192 million, down from $208 million for the same period in 2005. The results reflect lower commodity prices. "For the year, lumber prices decreased by 15% and OSB by 38%," said Tom Donaldson, president and CEO of CanWel Building Material Income Fund, in a release. "Despite 2006 being a challenging period for the Fund due to the continuing weak wood-based commodity products, we managed to maintain and, in most cases, improve our margins," he added. Gross margin during the fourth quarter of 2006 was 11.7% or $22.4 million versus 12.2% or $25.3 million in 2005. EBITDA for the quarter was $5.1 million, down from $5.7 million for the fourth quarter of 2005. For the twelve-month period ended Dec. 31, 2006, CanWel’s revenues were $911 million, compared with $1.0 billion in 2005. Gross margin for the year was $97 million, versus $102 million in the prior year. EBITDA for the period increased to $27.5 million, or 3.0% of sales, versus $26.5 million, or 2.6% of sales, in 2005.

↑ top

Sourcing show brings Asian factories to Europe

COLOGNE, Germany — Tenny Lo and Maria To have a factory in Jiangmen City, in China’s Guangdong province. They also have sales offices for their company, Lotos Enterprises Ltd., in Hong Kong. But with no customers in Europe, they decided to participate in Asia-Pacific Sourcing, a trade show held here March 4-6. Lotos sells fryer pots, barbecue grills, smokers, and patio coolers. Tenny and Maria had brought a few samples to the show, including a giant 90-litre pot, and crammed everything into a 10-foot booth. Aside from some flyers, they had no materials or signage, just a book for signing orders. When Hardlines spoke with Tenny and Maria on day one of the show, they were tentative about their prospects. Traffic was light initially, and competition was intense: more than 660 exhibitors from China — mainly China — as well as Taiwan, Korea, and India were exhibiting. But the show ended up attracting 8,300 visitors, as buyers, agents, and importers from 60 countries walked the aisles of Asia-Pacific Sourcing. "Metro and OBI — all of the big buyers are here," said Hans Kampen, project manager for APS and its big sister, Practical World, the International Hardware Fair/DIY’TEC, which returns March 9-12, 2008. He expects the show to keep growing in favour of hardlines. "For the future, we will put more emphasis on hardware, including appliances," he said. And what became of Tenny and Maria at Lotos Enterprises? On the last day of the show, Hardlines went back in hopes of seeing that their fortunes had taken a turn for the better. They were so busy, with about eight people crowded in and around their tiny booth, pens in hand, that Hardlines couldn’t even get close to them. Giving them a cheery Hardlines wave, your intrepid reporter decided instead to go and interview some German beer.

↑ top

Proposed law would ban import of illegally harvested wood

WASHINGTON — A bipartisan group of American congressmen introduced a bill this week that, if passed, would prohibit the United States from importing any wood products coming from timber logged illegally. The U.S. International Trade Commission estimates that as much as 30% of U.S. lumber imports come from either suspect or illegal sources. But the concern in Congress could be seen to be as much about foreign competition as it is about logging improprieties. ITC notes that a lot of this wood first gets funneled through China. From there, it is eventually exported to other countries. The American Forest and Paper Association, a trade group that represents U.S. forestry interests, estimates that illegal logging costs U.S. companies $1 billion in lost exports annually.

↑ top