September 18, 2017 Volume xxiii, #35
“You are never too old to set another goal or to dream a new dream.” IN THIS ISSUE:
OTTAWA — The devastating impact of the hurricane season on the U.S. South could have a silver lining for Canadian softwood lumber producers. As communities look to rebuild in the wake of Hurricane Harvey in Texas, followed by further damages from Irma in Florida, demand for lumber has risen—and so has the price. However, the end result could be a softening of U.S. resolve in the perennial softwood lumber dispute.
U.S. retailers pitch in to support hurricane relief SPECIAL REPORT — U.S. retailers have been stepping up to support the victims of the hurricanes that have devastated much of the American South. Lowe’s announced a commitment of at least $1 million to support disaster relief and recovery efforts through cash and product donations as Hurricane Irma struck communities in Florida, Georgia, and South Carolina. The latest donation brings Lowe’s total contribution to disaster relief this year to more than $2 million following the major flooding and damage caused by Hurricane Harvey. Walmart has pledged to match customer donations to the American Red Cross up to $10 million. Target announced it would pledge $1 million in cash and in-kind donations to support communities impacted by Hurricane Irma, while Home Depot also raised its commitment to $2 million for hurricane aid this season. And while national retailers are making efforts to support stricken homeowners, relief efforts go right down to the local level. Susan Murff, co-owner of Cypress Hardware and Feed in Houston, a city that was hit with four feet of rain in a matter of days, considers herself fortunate. Her store suffered minor roof leaks, but did not experience the flooding that has gripped other parts of Houston and nearby Texas towns. “It was a crazy amount of rain, but we’ve done very well. We never lost power, but houses as close as two blocks behind us are totally underwater,” Murff says. She adds that her store never closed during the storm, but staff did take special precautions to help distribute emergency supplies to shoppers before Hurricane Harvey struck, as people lined up through the night to buys supplies.
LBM buying groups give independents an edge—despite lagging last year WORLD HEADQUARTERS, Toronto — The majority of Canada’s home improvement dealers are members of an LBM buying group, offering an effective way for smaller businesses to pool their purchasing power into larger volumes. However, despite the efficacy of the groups, overall sales did not keep up with the industry average last year, according to the latest research from HARDLINES. While affiliation with buying groups helps independent dealers stay competitive, the groups nevertheless faced tough market conditions in 2016, according to the latest Hardlines Retail Report. Much of that came in the form of competition from the industry’s top retail chains, such as Home Depot Canada and Lowe’s Canada. Dealers operating within LBM buying groups experienced growth that lagged behind the industry average in 2016. The retail home improvement industry overall grew by almost 3% last year; buying group sales grew by a mere 0.4%. In terms of sales volume, the largest group in Canada is represented by the building centre dealers within Home Hardware. Collectively, sales by LBM dealers in Home Hardware exceed $4 billion. That group is followed closely by Independent Lumber Dealers Co-operative, with collective retail sales by its members of $3.8 billion. TIMBER MART and Castle follow, with estimated sales of $2.8 billion and $2 billion respectively. The other noteworthy groups in Canada are Sexton Group, Delroc Industries, and Quebec-based Groupe BMR and Pilon Ltée. (You’ll find further in-depth analysis of the buying groups, how they operate, and sales and store counts for each group, in the 2017-2018 Hardlines Retail Report. This amazing report features everything we know about the size and growth of the retail home improvement industry in Canada, all packed into 200 PowerPoint slides. Click here now for more info and to order yours today!)
Roxul will rebrand in North America as Rockwool MILTON, Ont. — Roxul Inc., the North American division of the Rockwool Group, is undergoing a rebrand to the Rockwool name. The Rockwool brand has been marketed internationally for 80 years and now will be adopted in North America for the company’s insulation business. It takes effect January 1, 2018, and will apply to all segments of Roxul’s North America insulation business. Rockwool, which operates in 35 countries with 10,600 employees, manufactures stone wool products ranging from building insulation to acoustic ceilings and external cladding systems. The company’s Rockfon ceiling tiles and Grodan horticultural business will continue to operate under their respective brand names. The new branding will be integrated into all products, marketing materials, and digital and social channels throughout North America. The North American name change follows an announcement in April from the Rockwool Group that all its global subsidiaries have assumed a new, cohesive brand identity. This marked the introduction of the Rockwool symbol—a stylized graphic representing a volcano—as well as a new purpose statement that conveys a goal for all Rockwool companies to “release the natural power of stone to enrich modern living.” “The rebrand creates a unified identity for our company, its solutions and benefits on a global scale,” said Trent Ogilvie, president of Roxul Inc. Since 2014, the Rockwool Group has invested $350 million in three new North American manufacturing facilities, including a recently announced stone wool plant in Ranson, W. Va. Construction of the 460,000-square-foot facility will begin next month.
DID YOU KNOW…? ...that Early Bird pricing for our Hardlines Conference ended last Friday? But guess what? We’re so confident you won’t want to miss this amazing event, November 14 to 15 in Niagara Falls, Ont., that we’ve extended the special pricing for 72 hours! Register by midnight on Wednesday and save 15% on your registration. Click here now and get this on your calendar!
RETAILER NEWS BOUCHERVILLE, Que. — At Groupe BMR, Paulin Moisan Inc. of Portneuf, Que., has joined as its newest dealer-member. The business has been family-operated for the past 55 years. “Although this was an important business decision, it was a clear choice for our family,” said co-owner Sophie Moisan, hailing the buying group and wholesaler as “a solid, 100% Quebec-owned company.” BOUCHERVILLE, Que. — A Vancouver RONA store is the next to be converted to the Lowe’s banner. Grandview RONA Home and Garden will undergo renovations and its inventory will be updated to reflect that of a Lowe’s store. The process is expected to be completed by early March of 2018.
ST. JACOBS, Ont. — Home Hardware dealers had a couple of milestones recently. Rockwood Home Hardware near Guelph, Ont., celebrated its 25th anniversary with a special sale and plaque presentation last weekend, with the media and public invited to attend. The store also hosted a seniors’ days. Nykamp Home Hardware Building Centre in Cambridge, Ont., celebrated its grand reopening after finishing an extensive two-year renovation. The store recently remodeled its facility including a 3,000-square-foot kitchen, bath, and lighting showroom.
SUPPLIER NEWS CORRECTION: In reporting last week on the departure of Dotan Philip from Innovak, we mistakenly cut his career a little short. He had worked at Innovak since 2003, not 2013.
PEOPLE ON THE MOVE
ECONOMIC INDICATORS The value of building permits issued in July dipped 3.5% to $7.9 billion, the first decrease since March. Lower construction intentions for commercial buildings and multi-family dwellings were mainly responsible for the national decline. Seven provinces posted decreases, with the largest decline in Ontario. Residential building permits for the month amounted to $5 billion, down 2.2% from June and the first decline since April. (StatCan)
NOTED OUT AND ABOUT
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