Store owners and managers across the country have reported a 2024 that was challenging for most regions. And into 2025, things are looking only somewhat better.
In its annual survey of retail dealers, managers, and head offices conducted earlier this spring, Hardlines has determined that the industry was down overall in 2024. We asked dealers what their biggest concerns were, and the one issue that stood out way ahead of all the others was the state of the economy. Fifty-three percent stated this as one of their biggest concerns. (Respondents were asked to list their three top concerns, so results will not equal 100 percent.—Your ever-helpful though somewhat math-challenged Editor!)
Given the uncertainties of the state of trade between Canada and the U.S., 18 percent of respondents cited the effects of tariffs as their biggest concern. “Really concerned about the tariffs and how they will impact us going forward,” said one Ontario hardware store owner. “We are very concerned about proposed tariffs by the U.S.,” added a building centre dealer from Newfoundland and Labrador.
The tariffs on products coming into this country are federal Canadian tariffs, issued by the Finance Department as “retaliation” for American import tariffs. But most people understand that the “retaliatory” tariffs would not be there without President Trump’s tariffs on Canadian goods.
A concern that carried over from last year’s survey was the shortage of labour, with 37 percent this spring reporting difficulties finding staff. “Our major concern is staffing. Small communities like we are in have a major challenge to find any skilled or knowledgeable employees,” reported one building centre dealer in Manitoba. “Most important to me is managing my stores the best I can,” added a hardware store owner in Saskatchewan.
“Our government spends more time supporting other industries than ours,” said a building centre dealer in Ontario. “The ability to find and keep good staff is weak, and the lack of good education for youth is one part.” Another dealer from the same province expressed concern about offering positions that represent a career opportunity for youth. “Attracting and retaining young talent to the industry [is a major concern]. Retail is perceived as representing a fill-in job, not the great future it really has.”
Another concern that ranked high among respondents was sourcing and product shortages. This issue was cited by one-third of respondents, as they look ahead with concern to the possibility of supplies tightening up, as happened during the pandemic. “I am mostly concerned with costing and supply issues for products coming and going across to the U.S.,” one building centre dealer from British Columbia told us.
Another dealer, a building centre dealer in Ontario, shared their concern about where products will be sourced from. “It appears moving forward, we will be asked about the country of origin for each product we sell as our customers are adamant about supporting Canadian manufacturers.”
Marketing was another concern, and actually reported by almost the same amount of dealers and managers as sourcing and product shortages. This issue drew was cited as a concern by 12.3 percent of respondents.
Some comments from respondents addressed other concerns not listed in the survey. For example, a building centre dealer cited “Artificial Intelligence’s impact on the customer-service advantage.” The difficulty of finding affordable housing was a concern expressed by a building centre dealer in New Brunswick: “We hope there will be government investment in affordable housing construction for our population—which would also help the regional economy.”
Perhaps the succinct comment of one specialty building materials seller in Ontario can sum up the key concerns of this industry. They said they are spending their time “Figuring out Trump and his tariffs!”
This special report was featured in the June 9, 2025 edition of Hardlines Weekly Report. Hardlines Weekly Report is part of the Hardlines Premium Membership. For more information and to sign up click here. To sign up for a 4 week trial of Hardlines Weekly Report click here.
