Canadian construction spending up in 2Q

OTTAWA—Residential construction investment totalled $20.8 billion in the second quarter, up 8.5% from the $19.2 billion invested in the second quarter of 2005. According to the latest report from Statistics Canada, this substantial growth was due to increases in all three components of residential construction, namely new homes, renovations, and acquisition costs. Since the start of 2006, residential construction investment has totalled $37.7 billion, up 9.2% over the same period of 2005. Low mortgage rates, high employment, and a robust housing market in Western Canada are among the factors that stimulated housing demand. Rising prices for new homes also contributed to the increase in the level of residential construction investment. The value of new home construction was particularly buoyant, hitting $10.4 billion in the second quarter, up 9.8% from the same quarter of 2005. New single-family home construction was up 8.9% to $6.5 billion, while investment in new multiple-unit construction rose 14.3% to $2.3 billion. Renovation spending totalled $8.6 billion in the second quarter, up 8.1% from the same quarter in 2005. Acquisition costs rose 3.4% to $1.8 billion.

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Home Depot launches in-store "home shows"

ATLANTA—Home Depot is launching a national "home show" in more than 1,000 U.S. stores. The in-store promotional program, which started Sept. 7 and runs to Sept. 24, will feature live demonstrations, in-store celebrity clinics, a virtual home tour, and online workshops. Called "Home Show 06", the event showcases new products in a range of categories, including energy efficiency, home safety and decor. "We challenged our suppliers, our stores and our product merchants to source the marketplace for the very best innovations in home improvement products, and we are proud to present to our customers what is perhaps the largest single concentration of cutting-edge solutions for their homes," said Bob Nardelli, chairman, president & CEO of The Home Depot in a prepared release. Innovations include a carpet that resists pet odors, a dishwasher that releases detergent automatically, and light bulbs that claim to last a decade. In-store do-it-yourself clinics will be held on Thursdays, Saturdays and Sundays. Topics include "innovative paint applications", "quick bathroom updates", and "the latest in flooring solutions". Television celebrities from The Learning Channel home improvement shows will also hold seminars. Leslie Segrete from "Trading Spaces" and "While You Were Out", Andrew Dan Jumbo from "While You Were Out", and Hildi Santo-Tomas from "Trading Spaces" are among the celebrity designers.

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RONA’Äôs Dutton uses humour to deliver serious message

BARRIE, Ont.—Robert Dutton is a funny guy. As the president and CEO of RONA inc. continues to improve his proficiency in English, his delivery gets more relaxed—and more humorous. Dutton flexed his bilingual stand-up prowess at a presentation to the Chamber of Commerce in Barrie, Ont., where the company recently opened its first big-box store. He started by apologizing for his accent. "Is my English alright?" I don’Äôt understand it anyway," he quipped. "My father was Irish’Äîhe had a good Irish name—but my mother was a French Canadian, and she won the language war at home," he told the audience. On a more serious note, he reiterated his position on the imminent arrival of Lowe’Äôs Cos., the giant U.S. big-box retailer, which will open up to 10 stores in Canada next year. Speculation has grown that Lowe’Äôs may wish to buy RONA to fuel its expansion here. "Our business model is unique and Home Depot and the others have big-box stores only. I have to prove that Canadian retailers can succeed," he said. "It frustrates me to hear that they must become Americanized." To underline his point, Dutton showed a slide that explained how many stores RONA has in a variety of formats. The chart was illustrated in the shape of a house. He paused and smiled: "Do you see a house? Good! You’Äôre normal." One of RONA’Äôs strengths, he added, is its ability to provide a range of store types, depending on the market. "We know our markets because every region of Canada has its own particular flavour."

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Rate of U.S. house prices slows drastically

WASHINGTON—The rate at which homes increased in value during the second quarter was the slowest in 30 years, says a new report. Offering yet another clue that the overheated U.S. housing market is cooling off, the report, from the Office of Federal Housing Enterprise Oversight, suggested that higher interest rates and rising inventories of unsold homes are dampening demand, thereby contributing to the drastic slowdown. According to the report, home prices rose 10.06% from the second quarter of 2005 to the second quarter of this year, but by only 1.17% from the first quarter to the second quarter, for an annualized rate of 4.68%. By comparison, prices in the second quarter of 2005 were up 14.04% over the same period in 2004. However, the rate of increase in housing prices still remains ahead of inflation. At 10.06%, it still outpaces other items in the basket of goods and services that comprise the Consumer Price Index, which was up 4.41% in the second quarter.

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Support by big retailers key to success of London DIY Show

LONDON—The London DIY show has weathered a change of ownership to ensure the participation of the U.K.’Äôs largest dealers. Brintex, the new owner and organizer of the London DIY Show, has reaffirmed all the attendance of key buyers from the industry’Äôs leading wholesalers and buying groups. "The interest and support we get from the teams at the National Merchant Buying Society, Home Hardware, Mica Hardware, Stax and Decco is very important to us," said Exhibition Director James Murray. As in the U.S., retail buying power continues to consolidate. For example, NMBS has grown into the U.K.’Äôs largest independent buying group, with more than 600 independent members that own 1,400 outlets and represent ¬£500 million annually in sales. Home Hardware represents 330 members based across the Southern half of England and Wales. Together, these organisations represent a huge part of the independent retail market in the U.K. The DIY & Garden Show and Totally Tools take place on January 14-16, 2007 in Earls Court, London. Already, 78% of the exhibition space has been booked. Visitors may now register for their tickets online at www.diyandgardenshow.com or www.totallytools.co.uk. For more information about exhibiting, email Paul Grinsell p.grinsell@hgluk.com. 

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