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Small Businesses Step Up to Social Responsibility

In honour of small business month (May), the Association of Corporate Citizenship Professionals (ACCP), an American advocate for corporate social impact professionals, suggested the small business community should engage in social responsibility initiatives.

“Corporate social responsibility (CSR) isn’t only for large corporations with deep pockets. In fact, small businesses that adopt proactive social and environmental policies and practices stand out from their competitors, especially among customers and employees,” says Carolyn Berkowitz, president and chief executive officer of ACCP. “By prioritizing CSR initiatives, small businesses can enhance their reputation, attract and retain top talent, earn an advantage with customers, and contribute to a better world.”

In my 23 years in the home improvement retailing industry, I have met many small business owners. But I don’t recall coming across one business in our industry that doesn’t support its community. Whether it’s providing uniforms and jerseys to the local kids’ sports teams or donating building supplies to renovate a local charity, small businesses in the home improvement sector

are very generous to and involved with their communities. They have been practising CSR since long before people started throwing the term around.

Fifty-three percent of small businesses in Canada and the US were supporting a social mission in 2022, says the Social Awareness Survey by UpCity, a company that connects B2B businesses. Twenty-eight percent of the remaining businesses are working to put a social plan in place.

Benefits from social missions

Consumers, especially the millennial demographic, demand that retailers have smart business practices. This sentiment has become stronger since the pandemic. Additionally,

“Entrepreneurs and small business leaders are starting to see the significant benefits of embracing social missions, such as increased employee satisfaction and retention, which is critical in the postpandemic economy where so many employees are willing to leave an employer in search of better opportunities,” says UpCity.

In our industry, home improvement retailers are basically synonymous with community. Things haven’t really changed much from the old days, where the local hardware

store was the hub of the community. These small business owners don’t support the community to benefit from it; they just want their communities to thrive. Likewise, they need the support of the community so they can thrive.

Nienke Hinton Editor

I don't recall coming across one business in our industry that doesn’t support its community

—Mike Duell, General manager, Taber Home and Farm Center

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INDUSTRY UPDATE

hardware distributor based in Eugene, OR, reinforcing its presence in a market where it has a distribution centre. In the Calgary, AB, area, it will consolidate two of its centres at the end of the year and set up a premier showroom while increasing its service capacity in western Canada.

Gillfor

AD

Senso Group Building Supplies Inc., based in the Greater Toronto Area, ON, has joined AD as a new Building Supplies ‒ Canada member, effective May 1. Senso opened its doors in 2011 and, through focusing on service and listening to the needs of its customers, the organization has grown to encompass three divisions: building supplies, equipment and rentals, and waste management. AD will help the business continue to grow and prosper further, through access to a roster of suppliers, networking opportunities, and a range of financial and programmatic benefits.

Richelieu

Richelieu Hardware completed four acquisitions in Canada in January – Rabel Hardware, a specialty hardware distributor in Terrebonne, QC; Trans-World Distributing, a distributor of industrial fasteners in Dartmouth, NS; and Unigrav and Usimm, companies offering custom products including a 3D scanning centre for the architectural and industrial market, located in Drummondville and Montreal, QC. Subsequent to the end of the quarter, Richelieu acquired Maverick Hardware, a specialty

Gillfor Distribution Inc. has finalized the amalgamation of AFA Forest Products branches. Gillfor says it will continue with its “soft landing” philosophy to ensure undisrupted service to customers, continued business growth for supplier partners, and continued growth opportunities for employees. “While we endeavour to operate our business as usual this year, we are also developing plans for some exciting new opportunities and initiatives in preparation for 2024,” says Mike Schneider, vice-president of business development.

GMS

GMS Inc., a North American specialty building products distributor and parent company to Canada GMS Inc., has completed the acquisition of Blair Building Materials Inc. GMS says the acquisition will enhance its market density and expand its product offerings in Ontario. Blair’s product assortment, which includes exteriors, insulation, and waterproofing products, will complement that of GMS’ subsidiary Watson Building Supplies, which also serves the Ontario market.

Fenplast

Quebec-based door manufacturer Fenplast, through its subsidiary Altek windows and doors, has acquired ADG doors and windows in Terrebonne, QC, and a minority stake in Solarcom, a manufacturer of aluminum windows based in Beauceville, QC. ADG will continue to produce fenestration products for commercial and institutional segments, allowing Fenplast to strengthen its presence in these two sectors. The Solarcom investment expands the company’s portfolio of all-aluminum products. “These acquisitions will allow us to better meet the needs of the industry and strengthen our position as a leader in the door and window sector

in Quebec,” says Jean Marchand, president of Fenplast.

Regal ideas

Regal ideas Inc. joined forces with some of its top DeckStars for the 13th Annual North American Deck and Railing Association (NADRA) National Deck Competition. Regal ideas and Neighborhood Fence and Deck took the top award for Best Overall Project, Best Alternative Deck Between $150,000 and $250,000, Best Pool Deck, and second place for Hardscape Project, and Limitless Creations Over $250,000. Regal ideas and LS Underground were awarded Best Product Display and Regal ideas and Heartland Red Construction were awarded second place for Entry Level Deck. Each year NADRA celebrates and honours outstanding successes in the industry at an industry awards presentation at the competition.

ODL Inc., a manufacturer of door glass and insulated blinds headquartered in Michigan, has expanded into exterior doors by acquiring Ontario-based Tru Tech Doors. This acquisition supports ODL’s brand and its commitment to long-term growth and innovation and to be the leading solutions provider for the door system. Celebrating its 25th anniversary this year, Tru Tech manufacturers high-performance steel and fibreglass doors.

ODL

Regal ideas

PEOPLE

Fastenal

Czayka

Derrick Czayka is territory manager for Alberta including the Kootenays area, Cranbrook, Fernie, Creston, and Trout Lake with Regal ideas. Previously, he was field operations manager with Infarm, a global vertical farming company.

RONA

Garry Senecal is interim chief executive officer with RONA. The former executive at Loblaw will work with RONA’s senior leadership team until a permanent replacement for Tony Cioffi, former president of RONA, is found.

Noelle J. Oas is executive vice-president of human resources with Fastenal. She has been with the company for eight years, serving previously as director of compliance.

Conifex Timber

Trevor Pruden is chief financial officer, Conifex Timber, effective June 15. He joined the company in 2011 and has worked in various operational, finance, and leadership roles.

NAWLA

with Uponor North America. He joined the company in 2015, serving most recently as senior director, operations.

BuildDirect.com

Jay Allen is general manager of BuildDirect. com Technologies. With experience in the apparel, home goods, and flooring sectors, his background includes positions at Starbucks, STAINMASTER, and Lowe's.

Goodfellow

Andree Coursol is outside sales representative / project management with Goodfellow. Previously, she was sales project manager with BARWAY Plastic Equipment.

MSL Fibre

All Weather Windows

Colin Wiebe and Jillene Lakevold are co-chief executive officers with All Weather Windows. Wiebe has been with the company for over 10 years, most recently serving as vice-president of sales and marketing. Lakevold has been with the company for 18 years, previously serving as vicepresident of manufacturing and director of commercial channel.

Henry Company

Lavoie

Patrick Lavoie is regional director, Quebec, with Henry Company, a roofing manufacturer. Previously, he was regional sales manager, eastern Canada with Dörken Systems.

Swets

Stanley

Mark Swets is interim executive director at the North American Wholesale Lumber Association (NAWLA). He will oversee operations as the NAWLA board of directors search for a new director.

Black & Decker

Chris Nelson is chief operating officer, executive vice-president, and president of tools and outdoor at Stanley Black & Decker, effective June 14. Previously, he was president, HVAC segment, with Carrier Corporation.

Roseburg

Lorraine Russ is director of structural and specialty panels at Roseburg. Previously, she was general manager of diversified products at Carlisle Construction Materials.

Kreg Tool

Davis Rowe is chief revenue officer with Kreg. Previously, he was vice-president of sales for Larson Manufacturing with Fortune Brands.

Uponor North America

Jon Sillerud is vice-president of operations

Alessia Floria is digital marketing specialist with MSL Fibre. Previously, she was SEO (search engine optimization) assistant with Insurance Navy Brokers.

Positec

Hanna Huffman is senior vice-president of marketing and e-commerce at Positec Tool, parent company of the WORX, Rockwell, Noesis, and Kress brands. Previously, she was senior vice-president of marketing at Dotdash Meredith.

Emerson

Mike Baughman is executive vice-president and chief financial officer with Emerson. He joined the company in 2017 and served, most recently, as vice-president, controller, and chief accounting officer.

PPG

Christine Camsuzou is vice-president, procurement and chief procurement officer (CPO) with PPG. She joined the company in 1986 and worked, most recently, as interim CPO.

Home Depot

William “Billy” Bastek is executive vicepresident of merchandising for The Home Depot. Previously, he was senior vice-president of hardlines.

Senecal

Lakevold Wiebe

Oas

Pruden

IN STORE

BMR

Goderich, ON-based Leis Lumber Company Ltd. has joined BMR Group. Established 18 years ago, it is a family business owned by Murray and Janette Leis. The retailer will operate under the BMR banner, and store upgrades should be complete by the end of the summer. Upgrades will include a facade that will reflect the BMR brand and colours.

Home Hardware

owned by Kushal Parikh. The store has 4,000 square feet of retail space that offers categories including farming supplies, paint, hardware, housewares, electrical, plumbing, casual clothing, workwear, and footwear. The store also carries a selection of tools, automotive supplies, seasonal lawn and garden items, hunting and fishing gear, birdseed, and pet food.

Wolseley

TIMBER MART

TIMBER MART gypsum specialty dealer Morin Supply, located in Ottawa, ON, will be expanding its business this summer by opening a second location in Gatineau, QC. The Gatineau property will encompass 800 square feet of office space, a 42,000-squarefoot yard, and 15,000 square feet of storage; it will offer a wide selection of interior systems products. MontLaurier, QC-based GML Produits de Bâtiment has joined TIMBER MART. The dealer offers DIYers, contractors, and builders a wide assortment of building materials, including various types of exterior cladding, culverts, insulation, and pressure-treated wood.

RONA

Coast Builders, located in the Sunshine Coast region of British Columbia, has opened kitchen and appliance showrooms at its Sechelt and Madeira Park RONA stores. This new showroom concept provides an improved shopping experience to support customers through their home or professional kitchen improvement projects from design to installation. The stores are designed as showrooms where kitchens and appliances are displayed in a home-like environment. Vantage Building Supplies in Alberta has joined the network of RONA affiliated dealers. Founded in 1975, Vantage Builders added the Vantage Building Supplies Hardware Store to its business model in Vegreville, AB, in 2005. Paul Sharpe has acquired the BFD RONA Building Centre store in Kitchener, ON. Major renovations have already been completed, including a new pro desk and a lumberyard redesign.

Since joining the Home Hardware Stores Ltd. banner in 2021, Roger Grenier Inc. has invested $400,000 in upgrades to Warwick Home Hardware Building Centre and Laurier-Station Home Hardware. The Warwick, QC, store has over 5,000 square feet of retail space with a 1,000-square-foot warehouse. The Laurier-Station, QC, store has 7,000 square feet of retail space and a 1,000-square-foot warehouse.

Wolseley Canada has opened a 21,000-square-foot store and showroom in Ajax, ON. The store will offer plumbing as well as heating, ventilation, and air conditioning (HVAC) products.

Sexton

Slack Lumber has joined Sexton Group Ltd. The independent retailer has served the York and Haldimand, ON, regions since 1950. Nunavut Logistic Solutions Inc. has also joined Sexton. The company transports construction materials from Quebec to northern Canada.

GMS

GMS Inc., a North American specialty building products distributor and parent company to Canada GMS Inc., has completed its acquisition of Jawl Lumber Corp., which provides service to the Vancouver Island market under the Home Lumber and Building brand name. Established in 1960 by the Jawl family, Home Lumber and Building Supplies operates from a single location in Victoria, BC.

ACE Canada

ACE Canada in St. Walburg, SK, is now

Castle

Family-owned and family-operated Beautiful Bath Renovations has joined Castle Building Centres Group Ltd. Owned by Chris and Tori Bowie, the business, in operation for 30 years, provides a full range of bathroom products, a showroom, and remodel and renovation services in the Halifax, Dartmouth, Kentville, and Bridgewater, NS, regions. Hodgins Building Centre, an independent retailer with two locations in southwestern Ontario, has joined Castle Building Centres. The family-owned business operates in Lucknow and Wingham, ON, serving the local community for over 80 years. Crown Flooring & Building Supplies and its five locations in the Greater Toronto Area, ON, have joined Castle Building Centres. Founded in 2000, this Canadian family-owned and family-operated business has cultivated a reputation of service excellence and customer satisfaction. Southgate, ON-based Ridgeview Lumber Inc. is opening its doors as a Castle Building Centre to serve customers in southwestern Ontario and Grey county.

Healthy Retail Environment Can Increase Profits

Retailers can improve the shopping experience for their customers and potentially increase their profits by providing greener, healthier stores, says the Health, Wellbeing and Productivity in Retail: The Impact of Green Buildings on People and Profit report from the World Green Building Council. The report says that although there is a surge in interest in health and well-being in the property sector, most retailers are currently missing a key opportunity to better understand how the physical retail environment can affect staff and customers – including the retail experience – and impact their overall business performance.

This is despite emerging evidence showing that greener, healthier retail stores –those that typically have good levels of daylight, fresh air, and greenery – are becoming more attractive to consumers and potentially more profitable for retailers. Green building represents a great opportunity to positively address environmental challenges such as climate change.

However, buildings are fundamentally for people. They should enhance quality of life, whether at home or at work or engaged in other activities – including leisure and retail. In fact, the report suggests that a building is not truly green if it does not work for people.

Impact on customers and employees

There is robust evidence that demonstrates that low-carbon, resource-efficient, and environmentally sensitive buildings can actually enhance the health, well-being, and productivity of building users, namely employees. This can be extrapolated to retail customers, the building users of stores.

Retailers are well aware of consumers’ rising interest in greener and more ecofriendly products, especially in the home improvement sector. However, they are just

beginning to understand how building design also aligns with economic performance.

Most of the effort on improving sustainability of stores has been about energy efficiency or renewable technologies to save money and lower a carbon footprint. But improving the design of a building also has an impact on the customer experience and can make people want to come, stay longer, and spend money. It will also impact employees’ well-being, which will improve engagement and productivity.

Benefits of WELL certification

A study in the Journal of Building and Environment found that WELL certification drives significant benefits across occupant satisfaction, perceived health, well-being, and productivity. The WELL Building Standard (WELL), administered by the International WELL Building Institute (IWBI), is a comprehensive building certification program that aims to enhance the health and well-being of building occupants.

WELL certification offers a series of

statistically significant occupant benefits, including:

• a near 30 percent improvement in overall satisfaction with the workplace, which jumped from 42 percent to 70 percent when comparing the precertified building to post-certification

• a 26 percent overall increase in reported well-being scores

• a 10 percent increase in mental health and a 2 percent increase in physical health

• a 10-point jump in median productivity scores

The study also finds healthier buildings help occupants feel more energized, more motivated to work, and more confident that the workplace is conducive to health. Occupants also say they have an increased sense of pride in being a part of the organization.

Additionally, every company in the study saw sizeable advances in overall occupant satisfaction. All saw marked improvement in overall perceived mental health. The average productivity score also improved for all companies, ranging from 1.4 percent to as much as 6.7 percent.

Win the War for Talent through Reliable Payroll

Many things are up for negotiation in an employment agreement – the one thing that is not is reliable payroll.

Canada's labour force is currently in an employee market. With high levels of job vacancies and low levels of unemployment, candidates have more options than ever when it comes to deciding where they want to work. As a result, employers are feeling the strain as they struggle to attract new talent while watching great people move on to new opportunities.

Organizations are taking major steps in an effort to stand out from the crowd and convince existing employees to stay. They are revisiting their pay structures, increasing their benefits packages, and creatively upgrading the perks they offer. However, recent research from the National Payroll Institute (NPI) reveals that they're probably already doing what is most important to employees – but have yet to capitalize on it.

Work for pay

Employees come to work to be paid. This is the central covenant of the employeremployee relationship, and, no matter what perks and benefits are layered on top, if payroll breaks down, the relationship breaks down. In fact, the study of working Canadians shows that 94 percent would look for a new job if their pay was regularly delayed and 91 percent would look for a new job if their pay was regularly inaccurate. This highlights a critical area of opportunity that employers can't afford to ignore: the importance of professional payroll.

Payroll is the single biggest expense for organizations; however, it’s most often viewed as a cost of business rather than a strategic investment, which is a mistake, says NPI. When done right, the return on investment of payroll can be impressive and provides data-rich metrics to improve efficiencies and make business decisions. In contrast, when payroll is not handled professionally, it can be to the serious detriment of an organization. The study shows that if consistent and accurate pay for an employee’s work were withdrawn, changed,

(38 percent), strain on workplace relationships (29 percent), negative mental health impacts (27 percent), and a lack of productivity or disengagement at work (26 percent). Each of these responses impacts an employee’s willingness and ability to do good work, which ultimately means dollars lost for the business.

To help increase awareness of the importance of good payroll practices, NPI has compiled some core principles required to conduct payroll professionally. Together, these principles comprise the “Declaration of Payroll” ‒ accuracy, timeliness, transparency, security, equity, compliance, disclosure, and professionalism.

For most organizations, these principles may seem obvious as they are the tenets of their payroll practices every day. The declaration provides business leaders an opportunity to make a public commitment to uphold these principles to the best of their abilities and use this as a differentiator that appeals to the needs of current and future employees.

disrupted, or compromised on a regular basis, there would be further consequences for the organization, such as:

• 64 percent of employees would trust their employer less

• 59 percent of employees would caution others about joining the company

• 51 percent of employees would have concerns about how much their employer values them

Further still, survey respondents who had experienced payroll mistakes or delays reported feeling, as a result, unease about their ability to manage expenses (38 percent), unappreciated by their employer

Payroll professionalism will look different for every organization. Whether a business has an in-house payroll team or utilizes a payroll technology solution, the declaration aims to inspire leaders of businesses of all sizes to think critically about their payroll operations and proudly let workers and potential workers know that they do so.

Businesses can make their Declaration for Payroll and gain access to a suite of tools, including an employer badge to use on social media and other marketing materials as well as a toolkit to share their commitment externally and with current and future employees.

For more information, visit www.payroll. ca/declaration.

Going Green Possible While Growing Economy

Canadian entrepreneurs believe that it is possible to grow the economy and protect the environment at the same time, despite challenges they face to go green.

Small business owners are actively taking steps to make their operations more environmentally friendly, but they face many barriers on their path to going greener, says the Canadian Federation of Independent Business (CFIB).

In 2022, 53 percent of business owners said there were simply higher-priority issues that their business had to address before they make going green a priority. This barrier has increased by nearly 40 percentage points since 2020.

Meaningful difference

The second-largest barrier for 37 percent of businesses was uncertainty around whether any change they make will make a meaningful difference to the environment. Three in 10 owners (32 percent) also said government grant programs were too complicated to use.

When a new environmental policy is developed without small businesses in mind, the implications can be huge, says CFIB. For example:

• Small businesses are hit the hardest by the carbon tax. They pay close to half of the carbon-tax revenue collected by the government, but they don’t get the same amount back as individuals and households do through rebates.

• The national single-use plastics ban can add complications to businesses having to source new and sometimes more expensive alternatives. Small businesses estimate it will cost them on average $6,605 to adhere to the single-use plastics ban in the first year after it is introduced.

• The federal government is also

proposing regulations that will require at least 20 percent of new vehicles sold in Canada to have zero emission by 2026, at least 60 percent by 2030, and 100 percent by 2035. This change could cause issues for businesses operating in remote and cold areas.

Most small business owners (74 percent) believe that it is possible to grow the economy and protect the environment at the same time. In fact, almost two-thirds (64 percent) of small business owners said that recycling materials, from excess product packaging to shipping paper, was the most important environmental issue to their business. Over half (59 percent) said reducing waste was an important environmental issue, followed by clean water and sewage treatment (44 percent) and preservation of natural environments (40 percent).

Guiding principles

CFIB has released a report entitled Working Together: Developing Environmental Policy with Small Business in Mind, which offers guiding principles and recommendations for the federal government on how to ensure that its environmental policies work for small business.

The organization says environmental policies should support the principle that it is possible to grow the economy and

protect the environment at the same time. As well, it suggests the government take an evidence-based approach when implementing new environmental policies and carefully consider any potential impacts on small business and the economy prior to implementation.

“Government should consider the current state of small business and the economy when developing environmental policies,” says the report. “A small business lens should be applied to all environmental policies to ensure minimal impact on small business’ operations.”

With that in mind, CFIB says the government should lower the cost of doing business and reduce the tax burden on small businesses, so they can invest in green technology and other environmental initiatives.

“Small businesses are already taking actions to go greener in their operations whether it’s going paperless or reducing waste, but they will need additional support from government if more environmental regulations are proposed,” says Taylor Brown, CFIB’s senior policy analyst. “It’s difficult for small businesses to invest in a growing number of environmental initiatives if their primary concern is to just stay afloat. Any government measures should benefit small business’ environmental practices without adding more costs or increasing their overall tax burden.”

EARNINGS

Stanley Black & Decker

Stanley Black & Decker had net sales of $3.9 billion for the first quarter of 2023, a decrease of 12 percent compared to net sales of $4.4 billion in the first quarter of 2022. Positive price realization increased 2 percent but was more than offset by decreases in volume (11 percent), currency (2 percent), and the company’s divestiture of its oil and gas division (1 percent). The company’s gross margin was 21.2 percent for the quarter, down from 31.3 percent in the year-ago period. Net sales for the tools and outdoor segment were down slightly year over year and its profit rate was 3 percent, down from 14 percent in the first quarter of 2022. Net sales for the industrial segment were down 5 percent year over year, with a profit rate of 11 percent, up 410 basis points versus the prior-year period.

AD

AD (Affiliated Distributors) member sales were US$18.3 billion for the first three months of 2023, an increase of 6 percent year over year across 14 divisions and three countries. Purchases by member companies from AD suppliers reached $4.63 billion. Net distributions to members grew 11 percent in the quarter to $386.3 million compared to the prior-year period. Same-store member sales increased 12 percent, led by 19 percent growth in AD’s US electrical division and its bearings and power transmission division. Same-store sales were positive for every AD division when measured in their own currency.

Masco

In the first quarter of 2023, Masco Corp. had sales of $1,979 million, a decrease of 10 percent compared to sales in the first quarter of 2022. In local currency, North American sales decreased 10 percent year over year and international sales decreased 3 percent. The overall plumbing product and decorative architectural products segments’ net sales both decreased 10 percent year over year. Gross margin for the quarter was 33.8 percent, up 180 basis points compared to gross margin of 32 percent in the year-ago period. The company’s net income was

$205 million compared to net income of $233 million last year.

West Fraser

West Fraser Timber Co. Ltd. had sales of $1.627 billion in the first quarter of 2023, slightly up from sales of $1.615 billion in the fourth quarter of 2022. The company had a first-quarter loss of $42 million compared to a loss of $94 million in the fourth quarter of 2022. Adjusted earnings before tax were $58 million for the quarter, representing four percent of sales. The company says its earnings reflect challenging demand markets due to seasonal effects and higher mortgage rates that continued to moderate new home construction activity in the US.

Fastenal

Fastenal Co.’s net sales were $1,859 million for the first quarter of 2023, an increase of 9.1 percent over net sales of $1,704 million in the first quarter of 2022. Higher unit sales contributed to the increase. Gross profit, as a percentage of net sales,

declined to 45.7 percent in the quarter from 46.6 percent in the prior-year period. The change in gross-profit percentage reflected changes in customer and product mix and lower product margins. Operating income as a percentage of net sales increased to 21.2 percent from 21 percent in the prior year. Net earnings were $295.1 million, an increase of 9.5 percent compared to the first quarter of 2022.

Richelieu

Richelieu Hardware’s net earnings were $22.6 million in the first quarter of this year, down 25.4 percent compared to the previous fiscal year. The decline was mainly due to the increase in the amortization of rights-of-use assets related to business acquisitions and expansion projects, mainly in the United States, as well as interest on the line of credit. Sales were $403 million, up 4.8 percent, with internal growth accounting for 1.8 percent and three percent from acquisitions. Canadian sales increased 0.7 per cent.

Dollarama

Dollarama Inc. had sales of $1,473.2 million for the fourth quarter of fiscal 2023, an increase of 20.3 percent compared to sales of $1,224.9 million in the fourth quarter of 2022. The increase was driven by growth in the total number of stores over the past 12 months and in comparable store sales. Comparable store sales for the quarter increased by 15.9 percent, consisting of a 14.1 percent increase in the number of transactions and a 1.6 percent increase in average transaction size. This compares to comparable store sales growth of 5.7 percent for the prior-year period.

Owens Corning

Owens Corning had net sales of $2.3 billion for the first quarter of 2023, in line with net sales in the first quarter of 2022. Net sales for the composite segment decreased 18 percent

to $585 million in quarter compared to the year-ago period, primarily due to lower volumes, including the impact of previously announced divestitures. The insulation segment net sales increased 7 percent to $919 million due to positive price realization partially offset by lower volumes. Roofing net sales increased 7 percent to $895 million, primarily due to positive price realization partially offset by lower volumes.

Trex

The fourth-quarter consolidated net sales for Trex Co. Inc. were $192 million, a decline of 36.8 percent compared to $304 million in the prior-year quarter. Selling, general, and administrative expenses were $142 million, or 12.8 percent of net sales. Net income was $10.1 million, a decrease of 60 percent, versus $25 million from the year-

ago period. Gross profit was $65.5 million for the quarter, compared to $118.2 million year over year.

Doman

Doman Building Materials Group Ltd. had revenues of $572.9 million in the fourth quarter of 2022, a loss of 10.7 percent when compared to $641.6 million for the same period in 2021. Net earnings were $4.3 million, a loss of 62.9 percent compared to $11.6 million in the year-ago period. Sales by product group were 72 percent construction materials, 24 percent specialty and allied products, and four percent forestry and other. Gross profit was $82 million in the quarter with a gross margin of 14.3 percent, compared to a gross profit of $88.7 million and a gross margin of 13.8 percent last year, a drop of 7.6 percent.

PRIVATE WEALTH

Estate Plan Key to Financial Success

Most small business owners (76 percent) plan to exit their businesses over the next decade because they are ready to retire, yet many don’t have a last will or testament or a formal estate plan. Yet, having a will and estate plan is imperative to ensure their wishes are fulfilled in a tax-efficient way while maximizing the value of the estate.

The Angus Reid Institute (ARI) says half of adults in Canada don’t have a last will and testament, a proportion that remains consistent since it surveyed this subject five years ago. A further 13 percent have one that is out of date. Only 37 percent of Canadians say they have an up-to-date last will and testament; however, that number increases to 49 percent for Canadians aged 55 to 64, and 71 percent for those aged 65 and older.

In Canada, if a person dies without a will, it’s called dying intestate. When that happens, their money, assets, and debts are put into an estate, and a court-appointed representative closes their financial affairs and distributes their assets according to the rules and regulations of the province. This can vary significantly in each province, though in most cases assets pass to spouses, partners, or along the family tree.

But there are more reasons to have a will. Besides a loss of control over a dispersal of assets, there are also potential and significant tax burdens that can be passed on if individuals die intestate.

The time-consuming nature of writing a will is more of an issue for Canadians living in high-income households (12 percent) than those living in households earning $50,000 or less annually (6 percent). Perhaps that is an issue because higher-income households are likely to have more assets, complicating a potential will. Indeed, a lack of assets is cited less as a reason for not having a will for those in households earning six figures annually (9 percent) than others.

Part of estate planning

A will is a part of estate planning. Estate planning is a comprehensive strategy to help ensure that all final wishes are carried out in the most tax-efficient way possible, and that the estate’s value is maximized, says IG Wealth Management. It says having a will is only scratching the surface of estate planning. Careful estate planning takes into account the most tax-efficient ways of naming beneficiaries for several types of financial assets, including businesses.

The key purpose of estate planning is to ensure that all assets are distributed in the most suitable way. This may include setting up trust arrangements, which allows the ability to limit the uses of the money or dictate when it is dispersed. It will also ensure charitable giving is carried out in the most impactful and tax-efficient way. For

more complex trusts, hiring a trust company to manage the estate plan could make sense.

IG Wealth Management says long-term, thorough estate planning is even more important for business owners. Having spent years or even decades building a valuable business, it requires serious planning to maintain its value as the owner prepares to pass the business on.

Business owners should have a taxefficient strategy for passing their business onto their family members (if that’s the plan). They should identify a separate power of attorney to make business decisions on their behalf. Ideally, this person should be someone they trust who has a thorough understanding of the business.

Another consideration is businessowned life insurance to ensure the business continues operating in the event of the owner’s unexpected death. It can protect the business by providing funds to cover any taxes owing and help with a smooth transition of ownership.

Owners should also consider a creditor protection strategy, which involves moving excess corporate profit out of the operating company to protect it from unforeseen creditors.

If retirement is becoming a consideration, business owners need to make sure they have all the strategies in place to ensure a smooth transition of their personal and business assets.

Buying Canadian Achieves Big Goals with Everyday Practices

The 2023 federal budget is called a “Made in Canada Plan.” It focuses on the shared responsibilities of the federal government, provincial governments, and private sector to invest in our country to reach net-zero goals by 2050. It discusses the importance of investing in natural resources, a clean economy, and policy frameworks that will create jobs for Canadian workers and help the middle class thrive.

While these macro ideologies are important, every Canadian can help achieve these goals on a more micro level with small, everyday decisions about where they shop and what products they buy. Supporting local businesses and buying products made in Canada are vital steps to ensuring Canada’s economic prosperity for generations to come.

The pandemic brought a new awareness to how people shop. A study by Accenture says that making more sustainable choices and shopping in neighbourhood stores are priorities for 54 percent and 46 percent of consumers respectively, and 88 percent believe that these behaviour changes will continue for many years.

Buying Canadian-made products means consumers are buying quality with oversight of the manufacturing process and reducing the environmental footprint. Supporting local businesses helps stimulate the regional economy by creating valuable jobs, supporting families, and strengthening the local community and culture.

Backbone of the country

Small businesses are the backbone of our country and employ almost 70 percent of the Canadian labour force. They are adaptable to regional and national markets, trends, and influences. At the same time, they go out of their way to build relationships with their customers and their communities. This is

how they try to stand out from large, multinational companies.

Just as it is important for consumers to shop local and buy Canadian, it is important for small businesses to do the same by supporting local business and domestic products as they are able. For example, is there a Canadian software product alternative for back office or POS systems? Are they stocking products from Canadian manufacturers or at least offering them alongside foreign competitor products and materials?

The grocery sector has seen a huge shift toward stocking local produce and products, and customers are more aware of this trend than ever before. The post-pandemic issues with supply chain and product short-

ages have underlined the importance of domestic product.

Small businesses that support Canadian and local businesses and their communities are setting an example for their customers. Along with customers who shop local and buy Canadian, these businesses are returning to their communities and encouraging economic growth.

At the same time, the taxes spent on these products and at these businesses wind up back in the community. Taxes paid to small businesses and the local taxes paid by small businesses end up paying for community improvements such as schools, green space, public transit, and healthcare. Conversely, taxes paid to big corporations or when

MADE IN CANADA

shopping online may not stay local or even within Canada.

Support local charities

Small businesses that support their communities also become representatives for their community. They are more likely to contribute to charities, especially local ones. Small businesses donate 250 percent more than larger businesses to local non-profits and community causes, says research from SCORE, a network of volunteer business mentors. As well:

• 66 percent give to local charities

• 48 percent support youth organizations

• 39 percent support local religious organizations

• 32 percent donate to local charities and social organizations

In fact, 75 percent of small business owners donate an average of 6 percent of their profits to charitable organizations each year.

And, while giving back to the community is good for the community, it is also good for business. The SCORE research says 85 percent of consumers have a more positive image of companies that give to charities, and 90 percent want to know how companies are supporting charitable causes.

In an increasingly homogenized world, communities that preserve their one-of-akind businesses and distinctive character have an economic advantage, says data from US-based Institute for Local SelfReliance (ILSR), a non-profit organization working to strengthen independent businesses and local economies. As well, local ownership ensures that important decisions are made locally by people who live in the community and who will feel the impacts of those decisions.

The ILSR research shows that shopping at local stores helps to sustain vibrant, compact, walkable town centres, which, in turn, are essential to reducing sprawl, automobile use, habitat loss, and air and water pollution.

This brings us to another important reason for shopping local and buying products that are made in Canada – reducing environmental impact.

Reduce environmental impact

The federal government’s budget clearly prioritizes reaching net-zero goals by 2050. The home improvement industry can have a significant impact on reaching these goals just by supporting home renovations and construction to build homes that support that goal. The materials used to build those homes are also important, but not just because they are made from recycled materials or because the manufacturer has a low carbon footprint.

A lot of energy and resources are required to produce many of these materials, and they are even worse for net-zero goals if they aren’t disposable and end up in landfills. But even if products have a low-carbon footprint and they are disposable, products that are made or sourced offshore create a larger carbon footprint based on how they are transferred from site of origin to site of manufacture to the store.

Buying locally reduces processing, packaging, and transportation waste, all leading to less pollution. Local businesses that purchase from other businesses in their area also help the environment with less commercial traffic and congestion, which means reduced potential fuel emissions that contribute to air pollution in communities and across the globe.

In a nutshell, locally sourced materials produce less waste by cutting out unnecessary travel and delivery and reducing the amount of packaging used.

Supported by WMH

In Canada, our industry is fortunate to have a federally chartered non-profit organization that encourages the purchase of quality building materials and other items manufactured in Canada and intended for the residential market. Bien fait ici/ Well Made Here (WMH) was collectively founded in 2018 by several industry banners and professional associations.

WMH’s vision is to strengthen the value chain between manufacturers, banners, and their network of hardware stores and home improvement centres to better serve consumers

and building contractors. More specifically, WMH seeks to address five issues:

• For consumers: to help them find information on quality products made locally

• For certified contractors: to enhance their offering, in conjunction with retailers, through the purchase of local, quality products

• For retailers: to position themselves as destinations of choice for customers keen on purchasing accredited products

• For banners: to have their image and networks associated with the growing movement in favour of buying local, quality products

• For manufacturers: to stand out from imported or low-added-value products by providing technical information for DIYers and contractors

Currently, the organization is working with the federal government during consultations about the Competition Act. Competition policy involves the ongoing review and development of domestic policies and international trade agreements to encourage competition while promoting the efficiency of the Canadian economy.

“We want an improved law that considers it as a disloyal or unfair competition if products from overseas do not meet our national technical requirements (such as the construction code or the CSA specifications) or the products do not respect the Canadian standards for workers and for the planet,” says Richard Darveau, chief executive officer of WMH. “Our argument is based on the fact that a Canadian-made product usually costs more because it has to respect our quality standards, the safety and respect of workers, and the health of the planet.

“Moreover, we argue that specifically the consumption of greenhouse gases created due to transportation times should be calculated by authorities.

“As well, we will present that many countries such as Germany, France, and the US are known as good players involved in free-trade agreements while, in parallel, they are concretely and officially supporting the industrial products that are manufactured on their own territories.”

Made in Canada – What it Means

The acts administered by the Competition Bureau do not require businesses to identify the country of origin of a product. They do, however, contain provisions that prohibit false or misleading representations. This means that when a business makes a representation about a product’s country of origin, it will need to comply with those provisions.

Under the Competition Act, the general impression conveyed to consumers is what really matters.

Advertisers represent products as Canadian-made in different ways. They can make an explicit statement, or they might use a combination of words, images, and other visual elements. Whether a representation is a “Made in Canada” claim will depend on whether the various components, viewed together in their normal context, are likely to create the general impression that the product is Canadian-made.

The guidelines set out the Competition Bureau’s approach to determining whether “Made in Canada” claims in relation to nonfood products are likely to contravene the false or misleading representations provisions of the acts it administers. If a business follows the guidelines, it is unlikely that their representations will raise concerns.

Specific claims guidelines

The Competition Bureau has long taken the view that advertising a product as “Made in Canada” signifies to consumers that the last substantial transformation of the good

occurred in Canada and a majority, or more than 51 percent, of the total direct costs of producing or manufacturing the good are Canadian. This allows Canadian businesses to benefit from their investment in Canadian manufacturing while recognizing the modern reality that certain costs of manufacturing may be foreign.

The guidelines therefore examine the issue from three different perspectives:

• where the direct costs of manufacturing the product were incurred

• where the last substantial transformation of the good occurred

• the representations themselves and the general impression they create

Furthermore, by making a distinction between “Made in Canada” and “Product of Canada” claims, the guidelines provide a useful way for businesses and consumers to distinguish between products where a significant proportion of the costs are incurred in Canada and those that are almost wholly Canadian-made or Canadian-sourced:

• Made in Canada – The Competition Bureau generally will not challenge a representation that a good is made in Canada if at least 51 percent of the total direct costs were incurred in Canada, the last substantial transformation occurred in Canada, and the representations include an appropriate qualifying statement, such as “Made in Canada with imported parts.”

• Product of Canada – “Product of Canada” is the designation reserved for goods almost wholly Canadian-made.

The Competition Bureau generally will not challenge a representation that a good is a product of Canada if at least 98 percent of the total direct costs were incurred in Canada and the last substantial transformation occurred in Canada.

• Other claims – When a product does not meet the criteria for either “Product of Canada” or “Made in Canada,” businesses who want to signal a Canadian component should accurately describe the production or manufacturing activity that took place in Canada (e.g., “Assembled in Canada with foreign parts” or “Sewn in Canada with imported fabric”). The representations should be clear so that consumers understand they refer to a specific process or part and not to the general manufacturing of the product.

The Competition Bureau recommends that companies take steps to ensure they comply with the law by making certain that their employees know the rules and have the information and tools they need to follow them.

The guidelines are an important source of information. They provide a framework that companies can use to design and implement policies and procedures to promote Canadian-made products without misleading consumers and contravening the law.

In the meantime, the Competition Bureau will continue to monitor representations of this type to ensure that they do not have the potential to mislead Canadian consumers.

PRODUCT SPOTLIGHT

Liteline

Richmond Hill, ON-based Liteline has launched the SHADE Mini, a 13-watt, six-inch round downlight for retrofit application onto existing six-inch recessed housings or a 3.5- to four-inch octagon box. The fixture is wetlocation rated and has a colour temperature switch. It features an airtight aluminum body and finish variations for the body and trim.

BP Canada

BP Canada has launched a multi-toned pale grey shingle called Morning Mist as part of its Mystique Collection. The shingles consist of a mixture of grey, white, and brown. BP Canada has offices in Calgary, AB, and St. John’s, NL.

Rust-Oleum Canada

Concord, ON-based Rust-Oleum Canada has launched its first-ever all-in-one pre-tinted wall paints, Colour Spark. The brand’s room visualizer tool allows customers to pick the perfect hues for their space and takes the guesswork out of the process. The paints are available in 13 hues that the company developed with design expert Leigh-Ann Allaire Perrault. They are available in interior and exterior formulations and two contrasting finishes, eggshell and semi-gloss.

Sinopé Technologies

Sinopé Technologies’ Calypso is a smart water heater controller designed to provide profitable energy savings during peak periods as part of power utilities’ dynamic pricing programs, time-of-use rates, and during a prolonged absence. The controller facilitates remote control of the water heater and aligns with power utilities’ pricing programs while maintaining users’ comfort and safety. Sinopé’s head office is in Saint-Jean-sur-Richelieu, QC.

Uniboard

In partnership with M2M Panel Processing Solutions and Mercury Wood Products, Uniboard has released the Slim Shaker cabinet door collection. The collection is constructed with a 45-degree mitre joint that is visible from the face and concealed on the back. M2M’s cabinet door designs come in a variety of Uniboard materials, colours, and finishes. They are moisture-resistant and have seamless glue lines. Uniboard is headquartered in Laval, QC.

Daich Coatings

Daich Coatings’ Rock Patch is a polymer/stone pre-mixed compound that can fill, level, and resurface interior and exterior surfaces. The cement-free product comes ready to use and is ideal as a prep-work step for cracked or pitted surfaces. It can be used as a spot fix or for a full-surface base for floor coverings such as paints, decorative coatings, and linoleum. It can also be used as a flooring and be left as is once sealed. The compound forms a firm bond to the underlayment and is impact-, salt-, and moisture-resistant. Daich Coatings is based in Hamilton, ON.

Walker Industries

Niagara, ON-based Walker Industries has launched a sustainably sourced bagged soil and mulch brand, GrowBetter Gardens. The products are made from 100 percent renewable, recycled material and composted ingredients. The brand includes four products: Fabulous Flowers & Shrubs soil, Vibrant Vegetables soil, Hemlock CPM mulch, and CPM Pine Nuggets mulch.

Diversity Efforts Crucial to Success

By: Susanne Tedrick & Bertina Ceccarelli

The term “diversity, equity, and inclusion” (DEI) has been given an increased and intense focus in the last few years. DEI programs, often led by human resources departments, are seen as offering valuable education and interactions, adding to an organization’s moral and ethical compass.

However, although DEI efforts are also viewed as measures that do not add to the financial bottom line, nothing could be further from the truth.

Research shows that organizations with strong DEI initiatives are more likely to meet or exceed financial targets. A comprehensive 2014 to 2019 study by McKinsey & Company says that workplaces with strong gender and ethnic diversity are more likely to produce better financial results than less diverse competitors. The study says that in 2019, companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have aboveaverage profitability than companies in the bottom quartile. What’s more, in terms of ethnic and cultural diversity, top-quartile companies outperformed those in the bottom quartile by 36 percent in profitability. Additionally, organizations with strong DEI initiatives are more likely to have high-performing teams.

Positioned to succeed

The business case for diversity goes beyond quarterly financial reports. Competition for talent in the business

world is often fierce, and organizations viewed as prioritizing DEI are in a better position to succeed. The job search engine Glassdoor reports that 67 percent of jobseekers indicate that a diverse work environment was a key factor in their decision to work for an employer.

In addition to employees, the investment community is also prioritizing DEI criteria. The Institutional Limited

and innovation are imperative to success. Business agility is the ability to adapt quickly and effectively in the market and the environment. Agility embraces a people-centred, organization-wide capability that strongly encourages continuous improvement, trust, and collaboration. Agility empowers teams, individuals, and companies to satisfy customers’ changing needs and expectations, in turn driving innovation.

A 2018 study by Boston Consulting Group says that companies with above-average diversity among their leadership ranks have a greater financial return on innovation and higher earnings before interest and tax margins. Moreover, it found that firms with aboveaverage diversity on their management teams reported revenue that was 19 percentage points higher than organizations with less diverse management.

Partners Association’s (ILPA) Diversity in Action initiative requires participants to track hiring and promotions by race and gender and report employee demographic data while raising funds. Private equity firms low in DEI indicators risk losing coveted investments from largescale institutional investors.

Agile and innovative

Organizations with strong DEI initiatives are more likely to be considered agile and innovative as well. In today’s fastmoving corporate environment, agility

While important, business drivers should not be the only reason to act. There is a compelling moral and ethical case to pursue DEI programs as all workers deserve the right to be treated with dignity and compensated equitably.

Susanne Tedrick is a writer and speaker, co-author of Innovating for Diversity, and author of Women of Color in Tech: A Blueprint for Inspiring and Mentoring the Next Generation of Technology Innovators.

Bertina Ceccarelli is the chief executive officer of NPower and co-author of Innovating for Diversity: Lessons from Top Companies Achieving Business Success through Inclusivity.

COMMUNITY PAGE

Lance Eymundson, dealer-owner of Whistler Home Hardware, and Bobbi, store manager, received the BSIA Orion Award for Urban Hardware & Rural Lumber Yards – Lower Mainland.

BSIA recognizes Whistler Home Hardware

Dealer-owners Home Lance Eymundson and Gregory Dennie, along with the team at Whistler Home Hardware, were awarded best Urban Hardware & Rural Lumber Yards – Lower Mainland at British Columbia’s Building Supply Industry Association’s (BSIA) Annual Orion Awards. Founded in 1996, Whistler Home Hardware is a 9,700-square-foot store that is involved with many local charities and organizations within its community by donating to local food banks and community art events and sponsoring local sports teams and gardening initiatives. The BSIA Annual Orion Awards recognize the best retailers in the building supply industry.

Centre, Osoyoos, were awarded the BSIA Orion Award for Best Building Supply Centre.

Osoyoos home store awarded Best Building Supply Centre

Chris Norlen and the team at Home Hardware Building Centre, Osoyoos, were awarded Best Building Supply Centre at British Columbia’s Building Supply Industry Association’s (BSIA) Annual Orion Awards. Founded in 1987, Osoyoos Home Hardware Building Centre comprises 13,500 square feet of retail space with a five-acre lumberyard. The store is designed for the specific needs of contractors, custom home builders, and developers. The store has a large team of designers of engineered wood and structural framing components and offers installation and design services for interior and exterior projects. The BSIA Annual Orion Awards recognize the best retailers in the building supply industry.

Guelph RONA owner acquires Kitchener store

Paul Sharpe has acquired the BFD RONA Building Centre store in Kitchener, ON. One of his first major mandates is helping the Pro customer base to reach its full potential. Major renovations have already been completed, including a new Pro desk and a lumberyard redesign. Established in 2010, the BFD RONA Building Centre store has 10,000 square feet of retail space. It is known as a leader in decks and fences in its market with a large showroom that attracts customers from all around southwestern Ontario. Sharpe also owns the RONA Guelph store in Guelph, ON.

Noble launches robotic store

Plumbing and HVAC supplier Noble has implemented AutoStore, a fully automated warehouse solution operated by autonomous robots that will redefine inventory management and order processing operations. The automated system was developed and installed at Noble’s Concord, ON, location by Dematic, a global supplier of integrated automated technology, software, and services. AutoStore is a picking and fulfillment system designed to maximize warehouse space and minimize inefficiencies through automated robots programmed to collect orders from thousands of storage bins.

Chris Norlen and the team at Home Hardware Building

From left to right, Peter Kefalas, Dina Moreira, Jim Evens, and Paul Sharpe are ready to help their Pro customers reach their full potential.

Noble has implemented AutoStore, a fully automated warehouse solution operated by autonomous robots.

TEAM TALENTS

Six Ways to Support an Intrapreneur

By: Michelle Bennett

Do you have someone on your team who is a self-starter who proactively finds efficiencies and comes to you with fresh ideas and creative solutions to problems? There is a good chance you may have an intrapreneur on your team.

There is a rising appreciation for these types of team members, but what is an intrapreneur, and how do you create the right conditions to harness their unique talents?

An intrapreneur is an employee who behaves like an entrepreneur but within the company where they are employed. Like an entrepreneur, these individuals take the initiative to find solutions to problems, improve processes, uncover business opportunities, and develop new products or services.

If you think you have intrapreneurs on your team, there are several ways you can nurture their skills and support their talents.

Grant autonomy with boundaries

Creativity and innovation become stifled when employees feel too restricted in their roles. That’s why granting intrapreneurs autonomy where they’re free to tap into their entrepreneurial thinking is critical to harnessing their unique skills.

However, autonomy without setting boundaries can be dangerous, as these ambitious go-getters may get in over their heads when they don’t know where they need to tap in for your assistance or approval. To set them up for success, determine the amount of freedom they have and their boundaries upfront before you set their creativity free.

Provide coaching and mentoring opportunities

Coaching and finding mentors is one way

to show your employees that you appreciate, support, and are willing to foster their intrapreneurial talents. In addition, through coaching and mentoring, these employees have access to a sounding board to share their ideas and suggestions and receive feedback and advice.

In addition, intrapreneurs are often intellectually curious, so they will have an internal drive to understand the inner workings of the company, which can be discussed in your time with them or their time with a mentor.

With encouragement and visible support, and appreciation for their entrepreneurial talents, these individuals feel free and welcome to share their ideas without the fear of failure or backlash from their peers or other leaders for trying to initiate change. Additionally, when there is an environment that embraces change across an organization, leaders do not become defensive when an intrapreneur from another department generates an idea that may show a deficiency. Instead, their ideas are embraced and seen as an opportunity for improvement and growth.

Reinforce the vision and goals for your team and organization

The vision and goals of your team and the organization act as the guiding principles and framework for which your intrapreneurs work. Thus, confirming they’re crystal clear and deeply understood ensures your intrapreneurs are contributing to the direction the company wants to go.

Ensure they have the resources they need

Be open to new ideas and change

Unintentionally, you may be smothering your intrapreneur’s ideas and innovations. If you do not actively encourage new ideas, bring them up the corporate ladder, or help remove the internal red tape so their ideas can be implemented, your team members may not bother to offer them.

Challenge intrapreneurs to identify innovations and improvements

Creating opportunities such as stretch assignments where your intrapreneurs can take on projects outside their job descriptions can be a great way to generate new ideas, innovations, and process improvements.

Another way to support their talents is to grant intrapreneurs resources such as time, budget, equipment, training, and access to thought leaders and senior management. Deloitte says, “Employees need time and resources in order to come up with innovations. The most famous example is Google’s ‘20 Percent Rule,’ in which employees are allowed to spend one day per week on a project that is unrelated to their work. In addition, managers should grant quick access to resources, enabling intrapreneurs to validate their ideas quickly.”

Michelle Bennett is chief marketing officer at Niagara Institute. She has extensive experience leading high-performing teams at higher education organizations. https://www.niagarainstitute.com/

Digital Technology Lures Shoppers to Physical Stores

Shoppers continue to return to in-store shopping with 38 percent of consumers globally doing so more often now than pre-pandemic and 33 percent shopping in-store at the same level, says research from media company Mood Media. Its study, Charting In-Store Trends, shows retailers need to create the right atmosphere and incorporate the right digital technology to tap into consumers’ continued appetite to shop in physical stores.

Digital signage and content play a key role in consumers’ overall experience when shopping in physical stores and also influence their purchasing decisions once in-store. Twenty-six percent of consumers are more likely to buy something in-store based on digital signage, and 22 percent will stay in the store longer thanks to digital content.

Interactive digital screens rank high among consumers, with 26 percent indicating they are the most important feature in creating a pleasant in-store experience, just after friendly and knowledgeable staff at 49 percent and things to see, touch, and smell at 30 percent.

As well, more than half of shoppers (57 percent) now expect stores to invest in digital payment and self-service technology, while 55 percent expect to see interactive screens that let them explore options and customize services or products. Equally important, almost half (48 percent) expect stores to showcase engaging large video displays.

Consumers have come back to brick-andmortar stores with evolved shopping habits and expectations, says Scott Moore, global chief marketing officer at Mood Media. “They now increasingly see both online and offline as part of the same purchase journey, not one versus the other. And, due to their growing comfort levels in the online space, they now expect similar levels of digital technology solutions as an integral part of the physical space.”

Reach the right customer

Display signage plays a significant role in reaching the right customers at the right time. With digital signage, retailers can effectively communicate their message, product, and branding to customers through an appealing, interactive, and eye-catching display. Not only is it a great and effective way to communicate product offerings, but it can also be used to highlight promotions, events, and special offers.

Direct-view LED, self-service kiosks with LCD touchscreens, and digital/interactive whiteboards are three digital display trends relevant to retail that are gaining popularity in 2023, says Displays2Go, a point-of-sale display company.

Direct-view LED will continue to drop to more accessible price points for businesses with smaller digital budgets, says the company. One of the most significant advantages that direct-view LED displays have is their ability to grab attention from far away. With bright and vivid colours, these large-format displays are nearly impossible

to miss and instantly create an engaging viewing experience. They can be used for a wide variety of purposes, from displaying dynamic, eye-catching advertisements to providing real-time information to customers. Available in poster-size formats, video wall setups, or large-panel outdoor displays, their impactful footprint and resistance to glare ensure the viewing experience is not compromised even when used outdoors.

Business owners will also reap the benefits of LED’s energy efficiency and long lifespan.

ROI on displays

“You’re going to get more bang for your buck when you go LED. It’s a great investment because the shelf life on LED is a 10-year span (approximately 10,000 hours),” says Casey Sullivan, senior product developer at Displays2go. “The end user can actually sell ad space on the LED digital signage and get their return on investment (ROI) back pretty quickly.”

With up to 10 years of use from these

displays, retailers won’t have to worry about replacing these units often and, as the digital out-of-home advertising industry grows in 2023, there will be more businesses using large-format LED signage to rent out ad space to vendors and other businesses, and the digital investment can pay for itself.

Self-service kiosks with LCD touchscreens will grow in popularity this year due to the continuing consumer preference for self-service. This preference will have a major influence on digital product innovation and development. On average, 45 percent of customers are more likely to use self-service than before the pandemic.

A self-serve kiosk is a touchscreen device that allows customers to interact directly with a business, accessing key information and services without direct interaction with a person. Self-serve kiosks will grow more ubiquitous and are on their way to becoming an expected fixture in retail space. With the help of these displays, customers can easily access product information, place orders, and make payments without having to wait for assistance from a store employee.

Like the direct-view LED, self-serve kiosks can also be used to display advertising content and promotional materials. LCD screens allow these displays to offer high-

resolution images and videos with bright and vivid colours and clear text. They are energy efficient, long-lasting, and lightweight, which allows versatility in placement.

The technology and capabilities digital whiteboards offer will continue to expand in 2023. Digital whiteboards are becoming more advanced, offering web-browsing capabilities and increasing in size for more collaboration and available “thinkspace.”

They work by allowing users to write, draw, and interact with content on a large, touch-sensitive display. Paired with an internet connection and web-browsing access, these whiteboards are exceptional for classroom and conference room use, improving productivity and ensuring full engagement. Digital or interactive whiteboards can help businesses and organizations increase productivity, reduce costs, and improve communication and collaboration. Additionally, retailers can leverage this technology to create more interactive and engaging environments for customers, especially when assisting customers with something like kitchen or bathroom design.

Show, don’t tell

Providing detailed information in a visually pleasing and interactive way is a powerful

method to inform shoppers, but too much information could overload the buying decision. What many shoppers need is not information but guidance, says Mood Media. Digital signage can influence shoppers by not just telling the customer the benefits of a product but also by showing them.

Solutions like product kiosks can give shoppers video demonstrations of product to help show how that product can fit into the buyer’s life. Virtual sampling stations allow customers to virtually try before they buy, giving peace of mind before making a purchase. As well, even though most shoppers use their smartphones while shopping in-store, the right digital signage solutions can provide a deeper level of exploration.

“Our study shows how vital it is to balance digital with physical in stores today,” says Miya Knights, a retail-focused author and publisher who consulted on Mood Media’s research project. “Shoppers still expect a pleasant atmosphere, with good lighting, music, and things to touch and see. Knowledgeable staff and the ability to buy instantly or collect online orders cannot be understated, too. But the rising importance of digital technology for self-service, engagement, and interaction have a fast-growing role to play in shoppers’ choice of store, buying intent, and frequency.”

Contractors Get Creative with Industry Challenges

With Canada’s construction sector maintaining an elevated level of performance post-pandemic, contractors are optimistic about growth while getting creative to deal with any lingering or new business challenges. Thirty-two percent of contractors expect an increase in work in 2023, 49 percent believe they will do the same level of work as in 2022, and 16 percent expect less compared to 2022, according to the 2023 Contractor Survey from the Ontario Construction Secretariat (OCS). The survey provides information that retailers can use to help their pro customers.

Contractors say they have a positive outlook because of an abundance of work available (35 percent) and an increase in construction activity (10 percent). They expect to hire 10 percent more staff in 2023, a 2 percent increase over 2022.

To stay competitive as an employer during the labour shortage, contractors offer perks like raised wages, promotions, better benefits, referral bonuses, guaranteed overtime, and retention bonuses. If they are short-staffed, they will:

• be more selective on projects so they can utilize existing manpower

• expand timelines on projects

• split shifts to accommodate staff

• subcontract more jobs and parts of jobs

• work longer workdays with paid overtime

Supply chain disruptions were one of the biggest challenges contractors faced as they came out of the pandemic, says the OCS survey. And, while the supply chain is in better shape now, some issues still arise, such as manufacturing issues, environmental problems, regulations, and supply chain management performance. Contractors have approaches they take to avoid these disruptions:

• 80 percent use alternative suppliers

• 72 percent use alternative materials

• 70 percent accelerate material purchases

• 66 percent stockpile materials

• 10 percent – other

Import as necessary

When necessary, contractors will go outside of their province to get materials or have products imported from the US or another country. Some contractors offer higher price payment to suppliers. As well, they make sure their proposals include qualifications to limit exposure to cost increases, material shortages, and delivery delays.

If contractors don’t get creative in dealing with post-pandemic challenges, they will lose business. Unfortunately, when endcustomers are faced with higher prices or delayed product delivery, they will delay or cancel the job. Over the last 12 months, 36 percent of contractors had projects cancelled by the owners and

53 percent had projects delayed by the owners. Reasons include escalating project cost, whether due to supply issues or inflation (40 percent); difficulty obtaining materials (15 percent); high interest rates; lack of funding; scope of work increasing; and delays due to labour shortages.

Outlook optimistic

Challenges aside, the outlook for the construction industry is optimistic.

Canada’s construction sector has maintained an elevated level of performance following the record sales increase during the pandemic. Strong levels of investments by governments across the country have helped to stimulate the economy, demand for housing remains high, and private-sector entities continue to invest in construction. These factors combined in 2022 to increase total construction investment levels by 3 percent over the record high recorded in 2021, says BuildForce Canada in its 2023–2032

Construction and Maintenance Looking Forward national forecast.

Construction activity is anticipated to step down from its 2022 peak, with contractions projected for 2023 and 2024. The contraction will be brief, however. Growth is poised to resume by 2025, and, by 2032, total investment should increase by 1 percent over 2022 levels. It is important to note that these numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy.

Across the forecast period, activity in the residential sector will be driven by a combination of factors, says the report. Activity in the renovation and maintenance sector will increase continuously, as homeowners continue to upgrade and maintain their homes. On the new housing side, demand is expected to contract in response to rising interest rates in the short term and return to growth between 2024 and 2029.

Tradespeople needed

“The construction sector saw another strong year of growth in 2022, with overall employment growing further beyond prepandemic levels,” says Clyde Scollan, chair of BuildForce Canada. “More than 1.5 million Canadians, or about one in every 13 working people, now works in the industry. The challenge now is how to manage demands, given an aging labour force. Employment has

been growing faster than the labour force in recent years. These trends combined to bring the industry’s national average unemployment rate to below 5 percent in 2022, with a record low of 2.4 percent in July.”

The development of skilled tradespersons in the construction industry takes years and often requires participation in a provincial apprenticeship program. Replacing retiring workers typically requires several years of pre-planning to avoid skills gaps. By 2032, overall hiring requirements in the industry are expected to exceed 299,000 due to the retirement of approximately 245,000 workers (20 percent of the 2022 labour force) and growth in worker demand of more than 54,000.

Based on historical trends, Canada’s construction industry is expected to draw an estimated 237,800 first-time entrants aged 30 and younger from the local population, leaving the industry with a possible retirementrecruitment gap of more than 61,000 workers. Clearly, an ongoing commitment to apprenticeship development in both compulsory and noncompulsory trades will be necessary to ensure there are sufficient numbers of qualified tradespeople to sustain a skilled labour force over the long term.

“The construction industry remains focused on building a more diverse and inclusive labour force. The industry has been working hard to enhance the recruitment of individuals from groups traditionally under-represented in the construction labour force, such as women, Indigenous people, and newcomers to Canada. Creating greater awareness of the tremendous career opportunities for these individuals within the construction sector will be critical to ensuring the sector is able to meet its future workforce needs,” says Sean Strickland, vice-chair of BuildForce Canada.

THE CONSTRUCTION INDUSTRY REMAINS FOCUSED ON BUILDING A MORE DIVERSE AND INCLUSIVE LABOUR FORCE

Lillian Diaz CENTRAL & SOUTHWESTERN ONTARIO

Andre Laurin CENTRAL & NORTHERN/ EASTERN ONTARIO

Building Connections across Cultures

By: Gaiti Rabbani

We are living in an increasingly diverse global community. More often, we are being called on to work, learn, and teach in situations where there is more than one culture at play. Acquiring the knowledge, skills, and experience necessary to manoeuvre effectively in multicultural environments is increasingly important.

Research demonstrates that cultural intelligence may easily be the single greatest difference between thriving in the 21st century world and becoming obsolete.

Recognizing your personal culture lens

Encountering another culture and respecting and accepting the similarities and differences

from our own is a much-valued skill as our vast world shrinks into a global village. We cannot develop this level of empathy without sharpening our own self-awareness and recognizing our personal cultural lens.

Our cultural looking glasses are accustomed to our own societal rules and definitions of what is normal and what is not. When someone behaves differently to our own social codes, we can be quick to judge their behaviour as abnormal or even wrong. Recognizing cultural expression as a learned behaviour separate from personality promotes a deeper level of understanding.

The culture iceberg

Initially, when two people from different cultures come together, they observe the visible features of culture. In some cultures, including Canada, it is a sign of respect to

RESEARCH

look someone in the eye when they speak to you. It demonstrates active listening and assures the speaker that you are engaged and interested. In return, if the other person holds

DEMONSTRATES THAT CULTURAL INTELLIGENCE MAY EASILY BE THE SINGLE GREATEST DIFFERENCE BETWEEN THRIVING IN THE 21ST CENTURY WORLD AND BECOMING OBSOLETE

eye contact, it signals confidence in what is being said. In many Asian cultures, however, it is polite to hold eye contact only briefly –especially in situations where the listener may be of a higher social status. Sporadic meeting of the eyes indicates respect rather than a lack of interest.

We often refer to the iceberg analogy to illustrate the concept of culture. Developed by anthropologist Edward T. Hall in the 1970s, the model showcases the depth and breadth of culture, likening the complexity of culture to an iceberg. You can see the top 10 percent of an iceberg, while 90 percent of its mass sits below the waterline, out of sight. Culture is much the same; the visible layer is a very thin slice.

Consider a cross-cultural business encounter. If each person relies only on the observable behaviour – in this case, eye contact – it will most likely trigger mutual

feelings of mistrust or a question of respect. While different cultural groups may share the same underlying values, such as respect and trust, with this example we can see that the expression of these values can differ.

The iceberg model highlights why we cannot judge a new culture purely on what we see. Instinctively we know there’s more to a situation than we initially perceive. Take a moment to consider what happens when someone’s behaviour goes against your cultural norms. Did you perceive the other person’s behaviour as unacceptable? Disrespectful? Was your perception true? It is essential to take time to uncover the beliefs that underlie the behaviour.

Developing your cultural understanding offers a pathway to navigating confusing situations and making appropriate adjustments to connect with others of different cultures.

Let’s go back to the example of eye contact.

DEVELOPING YOUR CULTURAL UNDERSTANDING OFFERS A PATHWAY TO NAVIGATING CONFUSING SITUATIONS AND MAKING APPROPRIATE ADJUSTMENTS TO CONNECT WITH OTHERS OF DIFFERENT CULTURES

There’s a tendency to confuse cultural preferences with personality traits. Could the person holding direct eye contact be perceived as rude and intimidating in Asian culture? Could the person consciously offering a fleeting glance be seen as untruthful or lacking confidence in Canadian culture?

Our cultural narratives start taking form during childhood, from the multiple layers of culture we experience in society. We learn the norms of the cultures we are exposed to, and these learned ideas become integral to our personal value system. To connect across cultures with people of diverse backgrounds, we first need to understand the values that mould our own lens of the world.

The question is not what you look at, but what you see, according to Henry David Thoreau.

Gaiti Rabbani is a cultural intelligence specialist, an executive advisor people and culture, and founder of Rabbani Collective, a company that enables businesses to harness the potential of their people through custom learning and development programs.

Last Mile Delivery Becomes Faster, Cheaper, Better, Greener

Retailers continue to innovate when it comes to delivery. They are being forced to create faster, cheaper, better, greener last mile delivery (LMD) in response to changing consumer demand. LMD is the most expensive (roughly 54 percent of total shipping costs) and timeconsuming part of the shipping process and is instrumental as it is the key to customers’ overall satisfaction.

Home improvement retailers, as sellers mostly of hard goods of all sizes, are not new to LMD. Most have their own fleets or the use of a fleet to distribute products to their customers.

Deemed an essential service during the pandemic, these retailers were able to continue selling products, but they had to get creative in how to get those products to their customers. As well, the pandemic created a new delivery standard. Customers demanded faster, cheaper, better access to products, and this included home improvement goods.

Up until the pandemic, the main goals of LMD were to consistently deliver orders to the right address, provide fast delivery service, and provide real-time visibility into the delivery status. This could be accomplished by the retailer with its fleet or a third-party delivery service. The inception of e-commerce, although slower to mature in the home improvement retailing sector, also changed the way people shopped and how they wanted to receive their products.

Staying safe

Retailers came up with the “buy online

/ pick up in store” (BOPIS) strategy so customers could come and get their products at the store as soon as they were purchased. The service enabled retailers to keep their staff and customers safe. This strategy was so popular, in fact, that most retailers in our sector still offer it. Many stores have now put in lockers so customers can just run in and grab their purchase.

As online sales grow, retailers race to develop new technologies and experimental supply chain models to increase parcel volume and keep ahead of how long the delivery takes.

One LMD inno vation is electric vehi cles (EVs) designed specifically for the logistics sector. EVs can do wonders in reducing overall operating costs and carbon footprints, as well as providing uninterrupted service. These vehicles provide economic value as well as eco-efficiency, which helps retailers combat the push toward carbon neutrality and sustainability.

As well, many larger companies have started testing autonomous delivery bots, also called LMDbots. However, the term “autonomous” is misleading because someone has to program and track the

machine and intervene if it runs into trouble.

Going skyward

Many logistics leaders are keen on this technology as well as its sister technology, the flying robot, also known as the drone. While these technologies can be helpful to streamline costs and logistics of LMD, they aren’t suitable for large-building-material deliveries. Drones also challenge the mapping aspect of logistics as they travel through the air rather than on the ground.

Robots are also heading the opposite way of drones, underground. Wendy’s, in partnership with hyperlogistics company Pipedream, will pilot an underground autonomous robot system with the goal of delivering digital food orders from the kitchen to designated parking spots in seconds, for faster and more convenient pick-up experiences. Pipedream says the technology was designed to make the digital order pick-up fast, reliable, and invisible. Many home improvement retailers and their buying groups are turning to last mile third-party logistics providers. These companies specialize in LMD, so the retailers will be able to benefit from their research and development and innovation as the industry continues to evolve.

“Innovation takes birth in sync with the evolution of customers’ expectations and demands or vice versa. Either way, organizations around the world have to continually innovate themselves and keep up with the people’s wants.”

~ Ketan Kapoor, co-founder of Mercer-Mettl