March 19, 2018 Volume
xxiv, #11
“To me, the fundamental tales of life are: do good, do the best you can, and reach for the stars sometimes.”
—Valerie Pringle, Canadian television host and journalist, 1953- )
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TIMBER MART president shares concerns over potential product scarcity
MONTREAL ― During the recent TIMBER MART buying show in Montreal, group President Bernie Owens shared with HARDLINES his thoughts on challenges facing all dealers in the coming months.
He didn’t focus on growing product categories as much as how important it will be to maintain the status quo with existing products. Owens says that the trend is more toward ensuring product availability across categories. He says the potential for shortages with the advent of the busy spring season could well be one of the major issues facing dealers this year.
The continued boom in the U.S. economy, and the stabilization of the housing market there, will increase the American thirst for lumber and commodities. And while sales of new homes in the U.S. dipped dramatically in January, down 7.8%, they remained stable year over year. In addition, disaster recovery efforts across the U.S. continue to drive demand for everything from lumber and gypsum to roofing. Canadian customers could end up getting the short end of the stick, says Owens, as vendors seek ways to allocate their supply.
His concerns may have been borne out just last week at a Lowe’s in Toronto. The store on Danforth Avenue in Toronto’s East End was out of stock on half-inch drywall. In talking with one contractor looking to buy some, a salesperson advised that Lowe’s ran out “while it changes suppliers.”
“What we're seeing now in the industry is a focus on security of supply and making sure we have enough product to meet the needs of our dealers,” Owens says.
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Ace Canada’s Bill Morrison: clicks can make urban stores a viable option
MISSISSAUGA, Ont. — A constant challenge for hardware retailers in urban locales is maintaining a business amidst high rents and low margins. The solution often requires getting maximum sales out of very limited square footage. But that’s something Ace Hardware says it’s prepared to do.
According to Bill Morrison, vice president of Ace Canada, Ace is prepared to set up shop in major urban markets. He says new investors “are excited about the urban potential.” Ace has developed a considerable digital presence, he adds, which those urban stores can tap into as pickup points for online sales in a way that was not possible in the past.
He notes that Ace is appealing to investors looking to start up a smaller operation. Ace provides an important alternative for new or smaller dealers, including investors who turn to the credibility of the Ace banner to invest in. Lowe’s acquired the license to Ace in Canada when it purchased RONA in 2016.
Now, Morrison says, Ace is very close to signing its 100th store in Canada.
“Ace in the U.S. has a great urban program that’s tremendously successful. I think if you look at urban retailing, it’s different. You have to relate to the community and be prepared to innovate. It’s not,” he concludes, “your father’s hardware store.”
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Digitalization a major theme at the International Hardware Fair in Cologne
COLOGNE, Germany — The International Hardware Fair (Eisenwarenmesse), one of the world’s largest trade shows for the home improvement industry, brought together more than 47,000 visitors from 143 countries earlier this month.
A major theme at this year’s show was the increasing digitalization of retail. Innovations were showcased in a Start-up Village, a 3D printing exhibition, and the DIY Boulevard, which featured 50 exhibitors—all of which drew considerable interest from attendees.
The four-day show was preceded by a gala dinner. Speaking at the event, Gerald Boese, director of the board for Koelnmesse, which puts on the show, explained the importance of digitalization at this year’s fair. Even as new technologies offer retailers more options, it’s important those dealers understand how to take full advantage of these emerging opportunities.
Boese added that it won’t be long until home improvement retailers are selling 3D-printed objects in their stores. “Times have always been shaped by change, and the strong companies have always successfully adapted to that,” Boese said.
Many of the exhibitors also brought new innovative high-tech products to the show. Caterpillar, the machinery and tools company, was on-hand with a brand-new smartphone. The device, described more as a working tool than just a phone, was an early prototype of a new line of Caterpillar’s CAT phones, the S61. The newest model features a thermal imaging camera, laser-assisted distance measurement, indoor air quality sensors, is fully waterproof, and has a huge battery. It’s anticipated to be available in Canada in July.
Long recognized as the show to visit to glimpse the trends expected to hit North America in the next few years, Eisenwarenmesse puts a huge emphasis on innovation. Cutting-edge products that also incorporated the theme of sustainability were recognized at the show through the Eisen award.
The next International Hardware Fair will be March 1 to 4, 2020 in Cologne.
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Big box chains aim to close America’s skilled labour gap
MOORESVILLE, N.C. & ATLANTA — Both Lowe’s and The Home Depot are investing in programs to bridge the skilled labour gap found in the U.S. workforce.
Lowe’s recently launched its “Track to the Trades” program, which aims to develop specialized skills among its existing employee base. The program began on March 1 in Charlotte, N.C.; Denver; Pittsburgh; and Richmond, Va.
Lowe’s will offer interested employees up to $2,500 to pursue their specialized skills education in specific trades, including carpentry, heating and air conditioning, electrical, plumbing, and appliance repair. The company will also offer academic coaching and mentoring, and give those who complete the program placement opportunities for full-time positions at Lowe’s.
Lowe’s says it plans to expand the “Track to Trades” program beyond the four pilot cities to qualified part- and full-time employees across the U.S. by the end of the year.
Home Depot is also acting to close the skilled labour gap in America. The retailer says existing skilled labourers are rapidly reaching retirement. Citing data from the Bureau of Labour Statistics, the company says there are currently 158,000 unfilled construction sector jobs in the U.S.
To combat this, The Home Depot Foundation is investing $50 million to train 20,000 skilled workers by 2028, the company confirmed. It will fund an existing trades training program for military members that it created in 2017 in partnership with Home Builders Institute, as well as other initiatives.
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Liteline Corporation has promoted Ryan Boudreau to the role of territory sales manager for the Greater Toronto Area. With a focus on specification grade projects, Boudreau will now work more closely with designers, architects, and engineers, and with both internal and external sales agencies.
Ola Bentolila is now product manager at DAP Canada. She was previously with Hudson’s Bay Co.
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