HIR 29.04

Embracing new beginnings

As the world embarks upon a new normal after more than two years of unforeseen circumstances and chaos, everyone looks forward to a fresh start and a chance to explore fresh opportunities and a new way of doing things.

Here at Home Improvement Retailing, we also look forward to new beginnings as part of global media company Key Media. In April of this year, Key Media acquired Powershift Communications, HIR’s parent company.

pages of over 50 magazines it publishes per year, and face to face at its 90+ annual events enjoyed by thousands of key industry players.

Key Media prides itself on entrepreneurialism, innovativeness, agility, and perceptiveness, attributes that allow it to react to the needs of its niche audiences quickly and precisely. The group continues to grow, diversify, and evolve.

What can you expect in the coming months and years? Great opportunities abound. We are committed to building upon the strong founda-

continuing to be your trusted source for business information. Your feedback and input are invaluable to us as we strive to shape the future of this magazine. We are eager to hear your thoughts, suggestions, and ideas as we move forward together.

As we begin this exciting new journey, we are excited to continue to be a part of our readers’ lives and to carry on helping you build your business to its full potential.

We extend our heartfelt gratitude to you, our readers and supporters, for three decades of loyalty and to the legacy of the original publishing company that dedicated 29 remarkable years to this magazine.

Key Media is a global media company with more than 35 titles and around 400 people across eight countries: Canada, Australia, New Zealand, the Philippines, the US, the UK, Korea, and Antigua.

This award-winning company delivers world-class content via multiple platforms –online to a combined audience of over 2.4 million unique visitors per month, through the

tion laid by the original owner and taking HIR to new heights. Expect fresh perspectives, innovative storytelling, and a renewed dedication to serving our readers’ interests.

Our mission remains the same – to be your trusted source of information and inspiration. Our editorial team is already hard at work, exploring new avenues of storytelling, delving deeper into issues that matter, and curating content that resonates with you.

Your continued faith and support have been our driving force, and we pledge to reward your trust with a publication that is more vibrant, engaging, and thought-provoking than ever before.

As we navigate this period of transition, we look forward to interacting with all industry stakeholders and

Expect fresh perspectives, innovative storytelling, and a renewed dedication to serving our readers’ interests

The Cedar Shop has been a Sexton member since 1993. Having the Sexton Group on our side has permitted us to compete in a very volatile market for many years. Today we are Canada’s largest Cedar showroom which would not be possible without access to the vendors and pricing that Sexton has made available. Rebates are timely and in our hands, allowing us to use the funds to grow and improve bottom line profitability. Joining the Sexton Group is a sound business decision for your future.

—Mitch Wile, President, The Cedar Shop

Our Promise to You:

Our strength as a buying group is built on four major advantages: We’re a dedicated team of industry professionals focused on your success. We negotiate competitive programs and leverage our strong relationships with vendors to resolve any issues quickly for you. We have a first-class accounting team that promptly delivers accurate rebate payments as promised.

Hear

INDUSTRY UPDATE

ness, which includes Fortress Decking, Cladding, and HULK Fasteners, and the associated exclusive North American distribution rights. Eva-Last has been in partnership with Fortress for seven years working on the APEX PVC and Infinity I-Series Composites. The transaction will allow Fortress to focus on core metals products.

METRIE TO OPEN ONTARIO MANUFACTURING FACILITY

ongoing production and sale of its Structural I sheathing with integrated water-resistive overlay, operating under the WeatherLogic brand. Specific terms of the resolution remain undisclosed.

RESOLUTE SELLS PULP AND PAPER MILL

CANADIANS UNDERESTIMATE VALUE OF SHOPPING LOCAL

For every dollar spent at a small business, 66 cents on average stays local, says data from the Canadian Federation of Independent Business (CFIB). Conversely, only 11 cents of every dollar spent stays in the community when consumers shop at a large multinational business. The CFIB report shows that Canadians greatly overestimate how much of each dollar they spend at multinational companies is reinvested locally, while underestimating small businesses’ contributions. “The importance of what shopping local means to our communities can’t be stressed enough,” says Ryan Mallough, CFIB vicepresident of legislative affairs for Ontario. “Small businesses ... source their goods and services from other local businesses in a way the retail giants just don’t. This is why governments at all levels need to focus on policies that support local businesses.”

GILLFOR NAMED CANADIAN DISTRIBUTOR FOR TANDO COMPOSITES

Gillfor Distribution Inc., a Canadian building products distributor, has partnered with Tando Composites to distribute the Beach House Shake and TandoStone lines of exterior cladding throughout their 14 distribution locations. Tando, a brand of Derby Building Products, is a manufacturer of composite exterior cladding. The deal is part of Gillfor’s go-to-market strategy to collaborate with innovative product lines.

EVA-LAST AMERICAS ACQUIRES COMPOSITE DECKING BUSINESS

Eva-Last Americas has acquired Fortress Building Products’ composite decking busi-

Manufacturer and distributor of millwork solutions, Metrie will open a mill facility in Woodbridge, ON, by the end of the year as part of its move to improve its millwork solutions and expand its reach in North America. The move is part of the company’s “commitment to growth, innovation, and delivering unmatched value to our customers,” says Kent Bowie, president and CEO of Metrie.

ATLAS TO ACQUIRE LÉON CHOUINARD ET FILS

Atlas Engineered Products (AEP) plans to acquire Léon Chouinard et Fils Co. Ltd./ Ltée. (LCF), a manufacturer of wall panels, trusses, and floor systems and a supplier of engineered wood products (EWP). The acquisition is part of AEP’s move to expand its geographical reach as well as its capacity in wall panel manufacturing.

LP BUILDING SOLUTIONS RECEIVES SAFEST COMPANY AWARD

LP Building Solutions (LP), a manufacturer of high-performance building products, has been recognized as a 2022 Safest Company Award-winner by APA – The Engineered Wood Association. Now in its 15th year, LP has won this prestigious recognition 11 times. In addition to the Safest Company Award, LP’s oriented strand board facility in Ponta Grossa, Brazil, won APA’s Three-Year Safety Award, which is presented to mills with the best average weighted incident rates over the last three years. Additionally, the facility won APA’s Safety and Health Honor Roll Award.

LP AND HUBER ENGINEERED WOODS SETTLE PATENT DISPUTE

LP Building Solutions (LP) and Huber Engineered Woods have reached a settlement agreement to resolve the patent-infringement claims related to LP’s WeatherLogic Air & Water Barrier. The settlement includes LP’s

Resolute Forest Products Inc., a subsidiary of Domtar Corporation and a part of the Paper Excellence Group, has completed the previously disclosed sale of the Thunder Bay, ON, pulp and paper mill to an affiliate of Atlas Holdings. Resolute will continue to operate its sawmills and woodlands operations in northwestern Ontario. With the closing of the transaction, Resolute will continue to provide chips and biomass to the Thunder Bay mill.

GREEN BUILDING MATERIALS MARKET TO SHOW STRONG GROWTH

The global green building materials market will increase from US$184.1 billion in 2023 to $347.7 billion in 2028, representing a 13.6 percent compound annual growth rate (CAGR), says a report from ResearchandMarkets.com. Green buildings currently comprise a small share of the global construction market, but the investment opportunities in this sector are enormous, says the report. The residential sector will dominate the market in emerging countries,

DISTINCTIVE ACQUIRES LES DISTRIBUTIONS AVANTGARDE

Distinctive, a member of the Amiel Group, has acquired Les Distributions

Avantgarde, a Canadian household appliance distribution company. This strategic move strengthens Distinctive’s portfolio of products and allows it to reach a larger market share. Martin Beauchamp, president and co-founder of Les Distributions

Avantgarde, will streamline the transition.

and the commercial sector will dominate in developed regions. Insulation will be the most prominent application sector.

CO-HOMEOWNERSHIP ON THE RISE

To beat increasing home prices, Canadians are teaming up with family and friends to buy homes, finds a survey from Royal LePage. It shows that 6 percent of Canadian homeowners co-own their property with another party, not including their spouse or significant other. Another 8 percent co-own with someone who is not a friend or family member. Forty-four percent of co-owners say that all the co-owners live in the home together. A smaller percentage (28 percent) co-own a home with another person(s), but they do not cohabitate. Six percent of respondents co-own a home with another person(s) and neither party uses the home as a primary residence, rather as an investment or recreational property. According to the survey, 76 percent of co-owners say that affordability was a major motivating factor in their decision to co-purchase their property.

LOYALTY MARKET TO REACH $9 MILLION BY 2027

The loyalty market in Canada is projected to see a year-over-year increase of 12.3 percent, reaching $6,233.77 million in 2023, says a report from ResearchandMarkets. com. “Canada Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – Q1 2023 Update” shows the market witnessed a consistent compound annual growth rate (CAGR) of 12.6 percent from 2018 to 2022. The market is forecasted to surge from $5,553.60 million in 2022 to $9,735.36 million by 2027. The growth is attributed to the rise of mobile-based loyalty programs.

IPE WOODS USA PLANTS 5,600 TREES IN AMAZON RAINFOREST

Ipe Woods USA, a supplier of exotic hardwood materials, has planted over 5,600 trees in the Amazon Rainforest, underscoring the company’s dedication to preserving the environment even as it provides premium wood products to customers. The company plants a minimum of five trees in the Amazon Rainforest for every single order placed. ensures a positive ecological impact that goes beyond the resources used.

RONA

PEOPLE

J.P. Towner will be chief financial officer of RONA, effective October 16. His previous roles include chief financial officer at Dollarama and executive vice-president and chief financial officer at Pomerleau Inc.

marketing planning. He joined the company in 2015.

ORGILL

OWENS CORNING

Nicolas Del Monaco is president of the global insulation business at Owens Corning. He joined the company in 2000 and previously served as senior vice-president and managing director of the company’s European operations. Todd Fister is chief financial officer. Previously, he was president of the global insulation business.

Ferris McLaren

WEST

FRASER

Sean McLaren will be president and CEO at West Fraser, effective January 1, 2024. He has been with the company for 35 years and is currently chief operating officer. He succeeds Ray Ferris, current president and CEO, who will retire on December 31.

Stephens Farias

LP

BUILDING SOLUTIONS

Gabriel Farias is vice-president of OSB manufacturing with LP Building Solutions. He brings over 25 years of manufacturing experience, having previously worked in both the steel and building products industries. Landon Stephens is director of OSB sales and

Kristyl Lawson is director, talent development at Orgill. Previously, she was communications director. Earl Bernard is communications director. He joined the company in 2021, bringing experience in engineering, technology, and communications.

Lawson

PPG

John Bruno is vice-president, finance at PPG. Previously, he was vicepresident, investor relations.

Bruno

PAPER EXCELLENCE GROUP

Steve Henry is president of the Paper & Packaging business at Paper Excellence Group. Previously, he was Domtar’s executive vice-president and chief operating officer.

WOLSELEY CANADA

Alex Nahvi is general manager for Ontario at Wolseley Canada, effective August 1. He has been with Wolseley Canada’s parent company, Ferguson PLC, for 21 years.

ROSEBURG

Stuart Gray has been appointed chief executive officer with Roseburg, effective October 1. He is currently chief operating officer. He succeeds Grady Mulbery, who is retiring after 12 years of service with the company. Mulbery will remain on Roseburg’s board of directors through the end of 2023 and serve as an executive advisor through 2024.

LL FLOORING

Robert L. Madore is executive vice-president and chief financial officer with LL Flooring Holdings. Most recently, he was interim chief financial officer at F45 Training Holdings. Andrew W. Wadhams is senior vicepresident, retail and commercial sales. He joins the company from The Wadhams Group, where he held the role of principal. Laura Massaro is senior vice-president and chief marketing officer. Previously, she was director of integrated marketing at Delta Air Lines.

Towner

Fister Del Monaco

IN STORE

Home Depot launches hub for homeowners

RONA Foundation organizes Home Sweet Home campaign

BMR Group partners with Groupe

Anctil

BMR Group is partnering

with Groupe

Anctil, a renovation, construction, and hardware retailer. Groupe Anctil was founded in 1935, starting as a familyrun general store. It now employs over 350 people and operates two renovation centres in St-Denis-de-Brompton and Magog, QC.

Roofmart Ontario acquires AMA roofing supplies

Roofmart Ontario , a residential and commercial roofing supplier, has acquired Hamilton, ON-based AMA Roofing Supplies. The transaction brings together two longtime, family-owned members of the roofing supply industry in Ontario. Roofmart plans to retain AMA’s current staff of industry professionals. Roofmart has more than 50 branches across Canada.

Fergus Home Hardware Building Centre celebrates 100 years

Dixon Home Hardware Building Centre is celebrating its 100th anniversary in Fergus, ON. The store has been family-run since 1923, and current dealer-owners, brothers Jeff and Jason Dixon, joined the company with their father in the 1990s. In 2004, the Dixons joined the Home Hardware banner. “The communities of Fergus, Elora, and the surrounding areas have been incredibly loyal over the years, and without their continued support, we would not be where we are today,” says Jason Dixon, dealer-owner of Dixon Home Hardware Building Centre.

Home Depot has launched a Homeowners Hub to enable first-time homeowners to easily access resources in home construction, including DIY guides, product recommendations, and design inspiration. Research from the retailer finds that more than half of millennials (53 percent) are worried about purchasing their first home. They also find home maintenance (74 percent) and home improvement projects (68 percent) the most stressful aspects of having their own home.

Cloverdale Paint expands Surrey facilities

Cloverdale Paint Inc. is upgrading its manufacturing plant in Surrey, BC, and its distribution facility and warehouse in North Surrey, BC. The Surrey plant now has expanded capabilities, with upgraded automation to double the production of decorative paint and reduce the time required to produce paint.

New store brand launch: rooms + spaces

Canadian-owned rooms + spaces opened the doors to 24 new stores across Canada. The grand-opening celebrations took place in August 2023 in Woodbridge, ON, and Vancouver, BC, with more locations and events planned through September. rooms + spaces is a home and decor retail venture that claims to offer a comprehensive range of affordably priced, high-quality products designed to help Canadians craft personalized living spaces.

Laminam expands North American presence

Laminam, a natural-surfaces producer for interior and exterior design applications, is growing its presence in the North American market. The company is set to open five new state-of-the-art showrooms with adjoining distribution centres. Laminam entered the North American market in 2011 and has, since then, had consistent market share growth year over year.

The RONA Foundation, which oversees the philanthropic activities of RONA inc., a home improvement retailer operating the Lowe’s, RONA+, RONA, and Réno-Dépôt banners, has launched a campaign called Home Sweet Home. In the context of the housing and shelter crisis, the initiative aims to support the most vulnerable populations by raising donations to revitalize living environments or make access to housing easier.

Walmart Canada supports Children’s Miracle Network

The Children’s Miracle Network has completed another successful spring fundraising campaign with Walmart Canada, contributing $7.8 million to support Canada’s kids, families, and their local children’s hospitals. This year’s campaign featured kids who have been patients of the 13 children’s hospitals in Canada that are supported by Children’s Miracle Network.

AD’S 2023 summit a success

Nearly 200 attendees from AD member and service-provider companies came together in St. Louis, MO, in July for the 2023 AD Finance, HR & IT Summit. The three-day event focused on crossfunctional collaboration and best-practice sharing and offered over a dozen breakout sessions covering diverse topics in finance, HR, and IT. “Across finance, HR and IT, our industries constantly shift and require us to stay up to date on the newest trends and opportunities available to us,” says Drew Moyer, AD chief financial officer.

Labour challenges continue for manufacturers – optimism low

As rising interest rates, poor economic conditions, and an ongoing talent shortage continue to plague manufacturers, optimism amongst industry leaders remains low, says an industry report from Sikich, a business management consultant. The “Sikich Industry Pulse: Manufacturing and Distribution” says more than half of manufacturers (57 percent) rated their optimism about business prospects over the next six months at a seven or lower on a scale of one to 10. This is similar to March 2022, when 53 percent of manufacturing leaders rated their optimism a seven or lower on a scale of one to 10.

When asked about factors contributing to decreased optimism, three main challenges were cited:

• 36 percent cited interest rates

• 27 percent cited economic conditions

• 26 percent cited labour shortages

Compounding these challenges, manufacturers have had to increase wages to meet labour needs and support employees through an economic slump. More than half (53 percent) of manufacturers have increased wages by 5 percent to 8 percent in the past 12 months, and nearly one-quarter (22 percent) have increased wages by 9 percent or more. Thirty-six percent of manufacturers reported that wage increases over the past 12 months are significantly higher than increases over the past five years.

On a positive note, nearly half of survey respondents (43 percent) reported consistent or increased customer demand, and 34 percent noted improvements to the supply chain. In comparison, in October 2022, 43 percent of manufacturers reported supply chain issues.

“While manufacturers are working through turbulent economic conditions, customer demand remains consistent –

putting an even bigger strain on labour challenges,” says Jerry Murphy, partner-in-charge of manufacturing and distribution services at Sikich. “Manufacturers that invest in talent strategy differentiators today will be able to meet customer demand and weather the economic storm, setting themselves up for long-term success.

Focus on talent acquisition

To keep up with customer demand, manufacturers are focused on talent acquisition. Half of manufacturers plan to increase their workforce within the next 12 months. Of those companies, two-thirds plan to increase their workforce by more than 5 percent, and nearly 20 percent plan to increase their workforce by more than 10 percent.

Manufacturers also reported that talent acquisition is easier than it was this time last year.

“In addition to increasing wages and benefits, we’ve seen some manufacturers get creative when it comes to their talent acquisition strategies,” says Laura Fischer, a managing director on Sikich’s human capital management and payroll consulting team. “Offering alternative work schedules,

strengthening employer branding initiatives, and working with external recruiters are all effective strategies to attract and retain a high-performing workforce.”

One area where manufacturers can improve their talent strategies is pay transparency. Pay transparency is the degree to which employers are open about what, why, how, and how much employees are compensated and to what degree they allow employees to share that information with others. Less than one-third (32 percent) of survey respondents already have or plan to have pay transparency policies in the next 12 months. “As manufacturers look to increase their workforces to meet customer demand, pay transparency is an effective way to attract talent and exude a forward-thinking, inclusive culture,” says Fischer.

Sikich surveys manufacturers and distributors multiple times throughout the year on a range of business topics to create industry benchmark data. In March, Sikich surveyed more than 130 executives from manufacturing and distribution companies across sectors including industrial equipment, wholesale and distribution, metal fabrication, food and beverage, apparel, footwear and textiles, and transportation.

Sustainability in retail trending upward, delivering growth

Spending on sustainability is trending upward across several areas of discretionary general merchandise and consumer packaged goods (CPG). As of September 2022, 40 percent of consumers reported that environmental issues impact their decision on whether to shop at a specific manufacturer or retailer, says a report from Circana, surpassing social issues for the first time.

“Products that impact our energy use, reduce waste, and use recycled materials or natural ingredients are all getting attention from consumers and presenting pockets of retail growth,” says Marshal Cohen, chief retail industry advisor for Circana. “Despite concerns related to rising prices, consumers continue to prove their willingness to spend on the right products that deliver the value –and values – they seek.”

While some consumers might say they are not willing to pay more for sustainable products, there are discretionary general merchandise categories where the sustainable options

outpaced the alternatives despite a higher price per unit. Unit sales of footwear made with recycled materials have grown more than sixfold over the past three years while sales of nonrecycled options declined. Recycled office supplies sales grew 14 percent compared with three years ago, but non-recycled offerings declined by 16 percent. Prestige beauty is thriving overall, but unit sales of refillable options more than doubled in the last three years while the rest of the market grew 25 percent.

Sustainability making its mark

Sustainability is making its mark on the CPG industry as well. Circana conducts annual research with the New York University Stern Center for Sustainable Business and found that in 2022, among 36 CPG categories, sustainability-marketed products had a 17.3 percent share but grew 30 percent from the prior year. The most prevalent sustainable claim on consumer food and beverage prod-

ucts is “recyclable,” and revenue for products touting the fact that they use recyclable packaging increased 12 percent versus the previous year, and 30 percent compared to three years ago, outpacing the industry averages for both comparisons. Sales of vegan cookbooks have also been on a steady rise over the past four years, which indicates a consumer desire for incorporating more sustainable, plant-based foods and beverages into their diets. Increased spending is going toward categories like oat milk and frozen meat substitutes.

“The continued growth in sustainable product sales demonstrates the importance of bringing newness and innovation to the market,” says Cohen. “Even with all the economic and political distractions facing consumers, they continue to demonstrate a focus on sustainability and a willingness to pay a premium for it. Bringing sustainability to the forefront continues to be a wise marketing tool and, for some brands, the main tool when it is built into the DNA of the product.”

WCB rebates could boost struggling small businesses

has registered a funding ratio of 145 percent and have announced it will not be sending rebates to employers even though they have surpassed their own target of 130 percent. For a small business with five employees, the rebates could be in the thousands of dollars, ranging from $505 in the Yukon to $4,835 in British Columbia.

CFIB is calling on governments to follow Ontario’s lead and legislate surplus rebates. As of late July, Ontario was the only province to legislate a mandatory rebate distribution when the funding is at least 125 percent. CFIB continues to encourage other provinces to follow Ontario’s suit and deliver meaningful financial relief to small business owners.

Calling for rebate of surplus funds

To ensure fairness for small businesses, CFIB is calling on all boards to:

Small businesses across Canada could get a $3 billion boost if overfunded Workers’ Compensation Boards (WCBs) provided rebates, says the Canadian Federation of Independent Business (CFIB).

If five overfunded Workers’ Compensation Boards across Canada rebated their excess funds, it would give a $3 billion boost to small businesses, according to CFIB’s latest research snapshot entitled “Funding Fairness: State of Workers’ Compensation Funding.”

“Workers’ Compensation Boards are holding onto billions in extra money, while over half of small businesses (60 percent) are still carrying their pandemic-related debt, at an average of $126,000,” says Marvin Cruz, CFIB director of research. “Getting

excess WCB money back to small businesses would be game-changing. Businesses could reinvest the funds or use them to keep up with inflation, maintain jobs, or pay down their pandemic-related debt.”

Boards exceed funding targets

The data says boards in British Columbia, Manitoba, New Brunswick, Prince Edward Island, and Yukon were overfunded, meaning boards exceeded their desired funding target.

British Columbia’s board continues to be massively overfunded at 146 percent when its own funding target is 130 percent. Rebating the excess funds would amount to $2.5 billion for BC businesses. Additionally, Manitoba

• rebate surplus funds to employers or lower employer premiums, if funding ratio exceeds its target funding, with a stronger preference for a rebate to eligible employers

• legislate surplus distribution policies

• implement mandatory distribution policies where none exist

“Obviously, workers’ compensation systems need to be adequately resourced to continue the important work of supporting workers and making workplaces safer,” says Duncan Robertson, CFIB policy analyst and co-author of the research. “But why should boards have more employer money than they need, while small businesses – the backbone of the Canadian economy – are still struggling? The source of funding for the boards comes directly from employer-paid premiums. So, it’s only fair for the boards to give back the excess money.”

EARNINGS

AD

AD had member sales of $37.8 billion in the first six months of 2023, an increase of 5 percent compared with the first six months of 2022, across 14 divisions and three countries. Purchases by member companies from AD suppliers reached $9.7 billion year over year. Net distributions to members grew 5 percent to a record $673.9 million. AD member samestore sales grew 8 percent through the first six months compared with the prior-year period. Same-store sales in the US were up 9 percent, while those for companies headquartered in Canada were up 5 percent. AD’s strongest samestore performers, by division, were bearings and power transmission (+15 percent), US industrial (+14 percent), US safety (+14 percent), and US electrical (+11 percent).

Taiga

Taiga Building Products Ltd. had sales of $446.9 million for the second quarter of 2023, a decrease of 31 percent compared with the second quarter of 2022. This decline primarily

stemmed from reduced commodity product prices. Gross margin for the quarter was $52.4 million, a decrease from a gross margin of $69 million recorded in the year-ago period. Gross margin percentage was 11.7 percent compared with 10.7 percent. The company had net earnings of $17 million for the second quarter, down from the $20.8 million in the year-ago period primarily due to decreased gross margin dollars.

ADENTRA

ADENTRA Inc. had sales of $585.9 million in the second quarter of 2023, down from sales of $700.3 million in the second quarter of 2022. Gross profit for the quarter was $119.4 million, representing a gross margin of 20.4 percent. This compares with a gross profit of $153.8 million with a gross margin of 22 percent in the year-ago period. Net income reached $9.4 million for the quarter, down 77 percent compared with net income of $41.9 million in the prior-year period. The decrease primarily reflects lower EBITDA and

an increase in net finance expense. Adjusted EBITDA was $46.2 million compared with $78.6 million last year.

Canadian Tire

Canadian Tire Corporation had a net income of $126.9 million for the second quarter of 2023, a decrease from a net income of $177.6 million in the second quarter of 2022. Consolidated comparable sales were up 0.1 percent in the quarter, following 5.0 percent growth in the second quarter of 2022, due to softening consumer spend in the latter part of the quarter, particularly in Ontario. Retail sales were $5,214.9 million, down 2.8 percent compared with the second quarter of 2022, with petroleum driving the decrease. Retail sales excluding petroleum and consolidated comparable sales were down 0.1 percent and up 0.1 percent, respectively. Consolidated income before income taxes (IBT) was $281.8 million, compared with $284.3 million in the prior-year period. Loyalty sales as a percentage of retail sales recorded an 80 basis points rise, as loyalty sales continued to outperform nonloyalty sales.

Richelieu

Richelieu had sales of $472.1 million for the second quarter of 2023, a decrease of 3.2 percent compared with sales of $487.9 million in the second quarter of 2022. Earnings before income taxes, interest, and amortization (EBITDA) were $61.5 million, down 21 percent from the corresponding quarter of 2022, mainly due to the return of operating expenses closer to pre-pandemic levels as well as costs related to external storage, due to temporary inventory increase. Gross margin remained stable. As a result, the EBITDA margin was 13 percent, compared with 16 percent for the corresponding quarter of 2022. The company had net earnings of $31.2 million, down 33.9 percent from the prior year 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.

WEALTH

Resilient choices define success and thriving in retirement

Today’s thriving retirees are redefining success in retirement by making resilient choices – providing a valuable model for Canadian millennials, says a study by Edward Jones Canada in partnership with Age Wave, a thought leader on population aging.

While retirees overwhelmingly agree (92 percent) that “preparation, flexibility, and willingness to adapt are key to success in retirement,” this new breed of retirees knows they will face challenges and are increasingly willing to make a wide variety of adjustments, trade-offs, and course corrections – some thing other generations can learn from.

“Making resilient choices is becoming more essential to pre-retirees and generations of future retirees who are not yet financially prepared to retire. In the face of new chal lenges faced by retirees, preretirees, and even younger generations like millennials, resilient retirement planning has never been more important,” says David Gunn, president of Edward Jones Canada. “Insight across genera tions can equip people planning to retire with the knowledge they need to enjoy their later years.”

Work longer for financial security

Amid recent economic volatility, many Canadians are nervous, with the large majority (76 percent) believing their generation will need to work longer than their parents’ generations to gain financial security in retirement, particularly millennials (85 percent) and genXers (84 percent). Millennials (aged 27–42 years old) specifically are anxious about their – and their families’ – financial future. This

includes concerns around adjustments they need to make now to achieve a financially secure retirement.

According to the research, 82 percent of Canadians (including 85 percent of millennials) agree their generation could learn a lot from older generations (implying that millennials could learn a lot from the experience of those retiring right now).

have experienced significant personal illness or health issues compared to their male counterparts (28 percent versus 31 percent of retired men). In fact, Canadian women live an average of four years longer than Canadian men. Faced with this reality, retired women are more likely to make the smarter economic choices such as reducing everyday expenses (51 percent versus 43 percent of men) and/or adopting a more frugal lifestyle (42 percent versus 31 percent of men). It is important to note that while women often face greater challenges in retirement than their male counterparts, they are also more likely to make certain changes as necessary, a testament to their resilience and adaptability in the face of retirement

Part of estate planning

Retirees have sage advice for younger people looking ahead to their futures: planning matters. When asked what they wish they would have done differently when preparing for retirement, retirees indicated they would have started saving earlier and more (40 percent), reduced debt or paid off a mortgage (23 percent), and/or educated themselves on how to manage and spend down money in retirement (16 percent).

Retired women are resilient

The study particularly reveals the resilience of retired women, despite their greater likelihood of being on their own and less financially secure. Retired women are more likely than retired men to be widowed (17 percent versus 4 percent). They are also slightly less likely to

While these course corrections have the potential to make a positive impact, the type of finance-related course corrections that will have the most significant impact depends on individual circumstances. It could include reducing or eliminating debt, saving as much as possible during working years, developing and following a financial plan and budget, or getting financial advice from a professional.

FOCUS ON CUSTOMERS

Brands need to refocus on customer centricity

Customer experiences are regressing rather than improving, demonstrating that brands need to focus on customer centricity, says a report from CCW Digital, a division of Customer Management Practice (CMP).

The Annual Consumer Preferences Survey, conducted in June 2023, shows that only 4 percent of consumers feel that experiences improved over the last year, while a staggering 57 percent feel they have gotten worse. Personalization, speed, convenience, empathy, and channel accommodation are major pain points as brands struggle to deliver highly personalized experiences. Additionally, long wait times remain a significant frustration, with 66 percent of consumers reporting extended wait or hold times when interacting with brands.

In terms of customer service, despite the growing emphasis on agent excellence,

consumers cite a lack of notable improvements from agents on the frontline and do not see the evolution of agent support, with only 11 percent feeling that agents are better at detecting and responding to customer challenges.

As well, brands are becoming increasingly restrictive as 58 percent of consumers have faced difficulty in receiving a refund or make-good despite more than 60 percent of agents sharing that they are willing to go “above and beyond” for their customers.

Time to refocus

“The findings of our study send a clear message to C-suite executives: it’s time to refocus on customer centricity and prioritize delivering exceptional, personalized experiences that align with customer values,” says Mario Matulich, president at CMP. “What makes the lack of improvement so concerning is that customer experiences are

already weak. Consumers are not faulting brands for failing to move from “good” to “great,” but rather for allowing inefficient, impersonal experiences to persist at a time when customer centricity should be a driving force. Organizations will strengthen customer loyalty and satisfaction by addressing these issues and driving business growth and success. Ignoring these insights puts your brand at risk of falling behind in an increasingly competitive market.”

The research underscores the importance of addressing such issues, as customer satisfaction plays a pivotal role in brand loyalty and support. In fact, 90 percent of respondents indicate they are more likely to support a brand that has quick, easy, and convenient customer service, while 85 percent say that a highly personalized experience will have a direct impact on winning their business. Brand values also continue to be a key factor in connecting with customers, with 67 percent of consumers saying that a brand’s public stance on polarizing issues will impact their support for a brand.

Customers ghost brands rather than complain

Ghosting has become more prevalent and customers will now abandon a brand after only two or three negative experiences. The “2023 Customer Service Relevance Report” from Coveo, an AI platform provider, shows customers expect their service and support experience to deliver the most relevant information throughout their engagement with a brand.

Unfortunately, however, when they have a bad experience, many customers will end their interactions with a brand rather than complain. Fifty-five percent of consumers (up from 46 percent in 2022) say they rarely or never complain about a negative digital customer service experience.

The top reasons customers will abandon a brand are:

• it’s too hard to talk to an actual person – 53 percent

• they get conflicting information from customer service representatives – 46 percent

• they are not able to find information on their own – 43 percent

Coveo recommends brands look beyond knowledge base or marketing content to include multimedia that younger generations prefer – documents, specifications, and reports that will help prevent future issues. Offering this type of content can also be lucrative in luring in prospects, who are now more likely to do a lot of research before buying.

“While offering great customer service should be table stakes, many companies still miss the mark (and spend too much money)

on doing everything except the fundamentals,” says Patrick Martin, general manager of service at Coveo.

“Because customer expectations are constantly evolving, brands need to build an experience layer that works across all channels; it must sit on a flexible foundational platform that includes search and machine learning that allows brands to meet their customers wherever they are.”

Creating a strong company culture: Navigating change and thriving amid challenges

By: Margaret Graziano

In an era marked by immense volatility and complexity, characterized by technological advancements, business consolidations, fierce competition, and economic fluctuations, you may find yourself in an unprecedented time of change. The aftermath of the pandemic continues to linger, with burnout, stress, and overwhelm persisting among individuals and teams. Amid this tumultuous landscape, the challenge is this: how can organizations emerge stronger from the trials of recent years?

Understanding culture

When more than two people come together, they form a human system. Within this system, culture serves as the driving force or energy. Culture possesses the power to create and destroy, providing guidelines for interaction, conflict resolution, motivation, and progress. The objective of examining and shaping organizational culture is to channel the collective energy of individuals into a productive force – one that mirrors the synchronicity found in natural phenomena, such as the coordinated movements of a school of fish or flock of birds. This is called an emergent culture

Influencing culture

Effective impact on company culture entails understanding and influencing the energy inherent within the human system. To initiate this process, you must start with the leader. All culture begins with the CEO. What is their vision? Who are they as a leader? What are their values? Are they operating

and living congruent with all those markers, no matter how challenging or stressful the circumstances may be? Having a CEO who can answer those questions clearly and can live in alignment with them consistently is the foundation on which a company’s culture gets built.

Thus, the CEO must be conscious of what they’re emanating through their words and their actions. They must ensure that they have a clear vision, bolstered by positive moods and inspiring language that rallies people around their vision and engages them into action. Human systems are guided by behaviours, beliefs, actions, what’s said, what’s unsaid –all of that equates to the energy of the human system, and energy is culture.

The next step is to cultivate the leadership team. The leadership team further propagates cultural attributes throughout the organization. Behaviours exhibited by this team tend to cascade down to various departments. Similar to the CEO, leadership must demonstrate consciousness and accountability for their actions. This includes acknowledging their role in shaping the culture and undertaking personal growth to support a healthy, high-performance human system.

Assessing the environment

After cultivating the leadership team, it’s time to assess the environment and employees. Employee behaviour provides insights into the prevailing environment. Key considerations include whether they experience autonomy, trust, and support in their roles. Ask these questions to assess the environment that your employees are navigating:

• How well do employees handle challenges in the market?

• Do people feel the freedom and trust to share new ideas, take risks, and have space to fail?

• Is there space in the time at work to ideate, innovate, and co-create?

• Are the meetings inspirational and motivating or just a laundry list of getting things done?

• Are people being given the autonomy they need?

• Are people held accountable to their agreements, promises, and measures?

• Can they have difficult conversations?

Achieving resilience

In times of uncertainty, organizations with the ability to adapt and pivot harness their power. Such resilience hinges on a healthy human system and a shared commitment to the company’s purpose. Leadership needs to exemplify responsibility, optimism, and collaborative problem-solving across departments to overcome obstacles and realize the company’s vision. This approach cultivates an emergent culture, capable of navigating challenges effectively.

While this demands considerable dedication, care, and focus, the rewards are boundless. With a culture founded on change management skills, response agility, and employee fulfillment, organizations can not only weather storms but also soar to new heights.

Margaret Graziano is the founder and CEO of KeenAlignment, as well as a Wall Street Journal best-selling author for her book Ignite Culture.

WHEN WE SAY WE KNOW WHERE IT IS, WE

KNOW.

It starts with a single scan. From there, our integrated technologies and adept delivery systems ensure Taiga customers get certainty delivered with every product.

Because of this, we continue to be the leaders in product innovation, distribution and management systems.

We know what you want, where it is, and when you need it.

Whatever it takes.®

taigabuilding.com

Supply chain leaders invest in growth through technology

By: Nienke Hinton

As organizations place greater emphasis on supply chain management, supply chain leaders intend to invest in growth through new technologies.

A report by Gartner says 65 percent of global supply chain professionals anticipate it will be easier to fund new technology investments with almost three-quarters of supply chain IT budgets this year to be allocated to growth and performance enhancements.

Retailers, manufacturers, and supply chain companies are still combatting challenges that were created post-pandemic. The pandemic itself created its own set of challenges for businesses, but the fallout has resulted in leaders still struggling to stay competitive and profitable.

“Through the COVID years, all distributors’ capacities and resources were pressure tested with unforeseen sales volumes being fed by inconsistent supply pipelines,” says

Need for improved innovation

“This drove the need for improved innovation, planning, and communication both upstream with manufacturers and suppliers but also downstream to our dealer customers. Today, we find the distribution sector living with the consequences of many of the decisions that were made during that time, both for better and for worse. Customers now see which distributors were able to rise to the challenge and which distributors were not nimble or dedicated enough to continue their partnerships at the grassroots level.

“The main challenges facing the industry at this time seem to include the constraints surrounding labour availability and rising interest rates on renewing mortgages, which may continue to tighten consumer spending

on renovation projects in the next year or so.”

“The industry today is fairly consolidated and has been consolidating over the last few years,” says Russell Permann, chief executive officer, Taiga Building Products. “I think that in the lumber and building materials part of the business, which is where we’re obviously focused, the competitive landscape requires scale to stay competitive, and the market is looking for lower costs and efficient supply. And I think the most viable means of achieving those goals is through scale. We will likely see the industry consolidation trend continue.

“The biggest threats are interest rates and inflation. And I think those combined could evidence some pain points for everybody involved in the Canadian building product industries,” says Amar Doman, president and chief executive officer of Doman Building Materials Group, the parent company of CanWel Building Materials Division.

He adds that businesses can only move

Mike Schneider, vice-president of business development at Gillfor Distribution.

forward now, and that business as we know it will never be the same. “We’ve forgotten what normal is and we’re not going to get back to normal. It’s going to be a different type of world where we will have continued pressure on wages and continued pressure on pricing.

Supply chain top technology trends

Gartner’s report says the last three years of uncertainty have blurred the line between business and technology strategies to the point that they must be considered together.

“Supply chain leaders must have an understanding of the strategic, disruptive, and unavoidable technologies that will impact their planning processes over the next five years,” says Simon Jacobson, vice-president and analyst in Gartner’s supply chain practice.

The report offers eight technology trends that will impact the industry:

1 Actionable AI – Actionable AI delivers better data-driven decisions by mimicking the problem-solving that humans make by augmenting decisions and keeping humans in the loop for validation purposes. Actionable AI learns patterns based on past decisions and experiences to adapt to changing, real-world circumstances. Solutions continuously retrain models and learn within the runtime and development environments based on new data.

2 Smart operations – Smart operations extends the pre-existing concept of smart manufacturing to encompass all core operational capabilities, including manufacturing, service, and logistics that span warehousing, transportation, and global trade. This involves the orchestration of a web of different and distributed processes and the underlying systems and data that support them. While manufacturing is ahead in pursuing smart operations, logistics organizations are rapidly embracing the potential of this idea to transform their businesses.

3 Mobile asset optimization – Mobile asset optimization maximizes the use of an enterprise’s mobile assets by combining business process software, sensory technolo-

gies, and operational research techniques for optimization and business intelligence. This has implications inside the warehouse where intralogistics smart robots are garnering attention and investment. Outside, transportation visibility platforms can show carrier activity and capacity improving collaboration between shippers, carriers, and logistics providers.

4 Industry cloud platforms – Industry cloud platforms combine software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) with specific functionality for vertical industry use cases. They do so not as predefined, one-off, vertical SaaS solutions, but rather as agile composable platforms supported by a catalogue of industryspecific packaged business capabilities. In effect, they turn a cloud platform into a business platform and expand a technology innovation tool into one that also serves as a business innovation tool, creating added value beyond traditional cloud approaches.

5 Employee engagement – Employee engagement is broadly a set of tools and applications used to help companies improve frontline worker performance, satisfaction, and retention. This trend can span mixedreality and mobile devices to provide content that augments the job, wearables for safety, and location management, collaboration tools, and more. These technology investments must be anchored in a broader workforce strategy that spans knowledge curation, skills development, and training.

6 Composable application architecture

– Composable business applications are designed to follow the core design principles of modularity, autonomy, orchestration, and discovery with a specific business use case. These packaged business capabilities are encapsulated software components that represent a well-defined business capability, recognizable as such by an end user.

7 Cyber-resilient supply chains – As supply chains implement more advanced technologies, they add additional supply chain partners, vendors, and service

providers to their “digital” supply chain. However, each addition of an external entity to the digital enterprise represents additional digital connectivity and increased cybersecurity vulnerabilities and risks. Cybersecurity represents the tools, processes, and governance methods (mechanisms) needed to mitigate cybersecurity risks caused by the extreme heterogeneity of supply chain technologies and ecosystem participants.

8 Supply chain integration services –Supply chain integration services encompass technology platforms, integration teams, different integration strategies (strategic decision-making on which applications to connect when and how), and cloud services to manage these integrations. Supply chain integration services elevate the role of integration from a tactical, execution-centric, and technical view of system interoperability to a strategy-led vision of a more interconnected world.

Time to invest in technology

Canada’s top distributors are front of the line when it comes to implementing technologies to promote growth. The home improvement retailing industry is focused on one-on-one customer service and, as such, has not had the same need as other retail industries to rush into digital technologies such as e-commerce and cloud platforms. Many retailers are small businesses that continue to employ legacy systems that have always worked for them.

“Our industry certainly has been slow to adopt technologies that other industries have,” says Permann. But with all the challenges created during and after the pandemic, he sees that changing now. In fact, part of Taiga’s business strategy is to stay at the forefront of developing technology.

“Our objective is to be 100 percent right and 100 percent on time. If we do it right, we make it look easy. So, we’ve invested a lot in technology and systems to make that happen.”

He says Taiga is trying to get better at predictive sales analysis and at assuring quality of service, so the company has invested heavily in that space.

“We use warehouse management

technology to improve warehouse flow, ensure accuracy, and enhance our quality of service. We also developed a B2B web interface for our customers called TaigaNow that makes us available to our customers 24/7, which wasn’t a thing in wholesale distribution, especially LBM. Before that, we were exploring some AI initiatives to do a better job of predicting market dynamics. We’re also using AI to look at optimizing our warehouse flow and maximizing the use of our freight assets.

“The goal is to look for those emerging technologies that have applicability to our business. Our litmus test is if we find something that we think will make our employees’ lives easier at work, if it enables a customer, or it makes us more efficient or environmentally responsible, we’re going to give it a try.”

Doman is also investing in technology in all its divisions.

“We’ve invested in an inventory tracking system with barcodes and scanning. We hope to roll that out to all of our plants over time,” says Doman. “We’re making a large investment in those technologies to get the treating plants up to a higher level of technology for inventory tracking and costing, which will eventually drive more efficiencies. This will ultimately

drive savings and continue to allow us to be the low-cost producer in those areas. We also use truck telematics and GPS and have been using those technologies for several years.”

There is a wide array of technologies that Gillfor Distribution and its manufacturer partners use “to ensure we are the best we can be,” says Schneider. “Our current focus is on a custom communications and planning tool that will allow us to coordinate and integrate sales activities, communication, and vendor engagement in a manner that will produce measurable results. It’s important to us that we offer meaningful value to both our customers and our vendor partners, and that we are able to quantify that value in order to continuously improve our go-to-market strategies.”

Digital twin has transformative potential

Gartner’s research also shows that most supply chain leaders are not aware of the transformative potential of a digital twin of the customer (DToC). DToC is a dynamic virtual mirror representation of a customer that simulates and learns to emulate and anticipate behaviour. It is a nascent technology that can revolutionize demand fore-

casting accuracy, vastly improve customer experience, and serve as a critical input to enhance the use of AI/ML tools. A DToC can and should complement a broader digital supply chain twin (DSCT), says the report.

However, the survey found that while 60 percent of supply chain leaders are piloting or plan to implement a DSCT, just 27 percent are also planning to incorporate a DToC as part of their digital strategy.

“Supply chain leaders understand the importance of the customer in their physical supply chains, but most have not yet translated this lesson to the digital realm,” says Beth Coppinger, senior director, analyst in Gartner’s supply chain practice. “The opportunity for transformational benefits from a digital twin of the customer far exceeds the potential that most supply chain leaders see today. A digital supply chain twin that includes a digital twin of the customer can account for changing customer behaviours under a variety of conditions and support the growth plans of the organization.”

Among the potentially transformative benefits of a DToC is the chance to completely reinvent customer demand forecasting accuracy, which will augment and potentially supplant current demand-sensing tools. A future DToC will be able to accommodate many different inputs from a wide variety of sources and update customer behaviours and responses in real time.

In parallel with AI, the DToC will be able to simulate different responses to natural language queries about customer demand and then feed those responses into the broader digital supply chain. This will allow supply chains to take a more proactive stance in responding to a wide range of disruptions and trends.

New and developing technologies can help address some of the key challenges that the distribution industry faces today. Given the current economic headwinds, and as retailers and consumers alike entertain high expectations of supply chains with fewer risks, greater visibility and transparency, and enhanced trust, businesses should consider these solutions as a possible antidote to their supply chain challenges.

THE LAST THREE YEARS OF UNCERTAINTY HAVE BLURRED THE LINES BETWEEN BUSINESS AND TECHNOLOGY STRATEGIES TO THE POINT THAT THEY MUST BE CONSIDERED TOGETHER

Digitalization strategies that drive supply chain flexibility

By: Merilee Kern, MBA

With the considerable supply chain disruptions brought on by the pandemic and amid escalating inflation, supply chain resilience is more critical than ever before. The unforeseen pandemic presented a range of challenges that many supply chains were clearly – often admittedly – unprepared for. Labour shortages, shipping cost surges, and new patterns of production and consumption have all played a key role in disrupting business logistics, upending markets, industries, and whole economies in the process. In its wake are logistics, procurement, and other supply chain professionals who continue to suffer stress and chaos on the front line, scrambling to react to newly exposed systemic weaknesses and vulnerabilities.

“In order to prepare against unforeseen and inevitable turbulent events ahead, it’s important to take proactive measures to identify the most inherently fragile areas within a supply chain,” says Nirav Patel, CEO of Bristlecone – a provider of connected logistics solutions that’s part of the Mahindra Group. “In this postpandemic era, we need to challenge conventional thinking and pursue digital innovation

on a much larger and more significant scale. Embracing emerging technologies like AI and SAP integration can transform and fortify companies with an appropriate level of resilience and agility to defend against future crises and unforeseen challenges.”

Three risks to supply chain

While there are numerous reasons why supply chains are disrupted, there are a few prime culprits:

y Environmental forces: External factors, such as natural disasters, economic turmoil, and geopolitical instability, impact supply chain performance in numerous unsavoury ways like damaged transport infrastructure, cancelled deliveries, and demolished inventory – all of which can lead to unbalanced supply and demand.

y Value chain disruptions: Issues within the value chain – the process starting from businesses receiving raw material to then selling the finished product to consumers – can create a bullwhip

effect where small fluctuations in initial operations can lead to even greater negative effects across the entire supply chain. Value-chain triggers include labour disputes, limited supplier cash flow, manufacturing accidents, and more.

y Business operation challenges: When troubles arise internally within key areas of the business, like breaches in the finance, IT, or HR divisions, core operations will struggle to function and that will impede the company at large.

As supply chain threats like these and others remain omnipresent – with regional, national, and global implications – it has become imperative for organizations to employ digital tools for enhanced automation, visibility, and resiliency. Here are three digital strategies leaders can implement to do so:

1 Supply chain digital twins: Digital twins are digital replicas of physical supply chains. They integrate with the company’s systems to provide real-time

insights on any sudden disruptions in a supply chain’s performance level, allowing supply chain management to become more proactive than reactive. Digital twins help companies mitigate environmental risks by immediately notifying them of natural disasters or other external forces that can harm the supply chain’s efficiency. This simulation provides an additional level of visibility that would otherwise be impossible without leveraging technology.

2

Predictive maintenance: This is a preventive technique that uses machinelearning technologies and sensors to track how machines and systems are functioning. Predictive maintenance can foresee when a machine is likely to develop issues in the near future so that maintenance can be done before any breakdowns. Supply chain operations become more resilient knowing that all machines and robotics are working efficiently.

3 Tracking: Today’s supply chain management companies live in a fortunate time where they can collect real-time updates on current events courtesy of the internet and other technologies. Companies can leverage social media to obtain consumer-behaviour analytics while also monitoring the industry, news, and other sources that can indicate potential supply chain disruptions like the passing of a new regulation.

Logistics and transportation technologies provide powerful, modern digital fleet tracking so that companies can track their shipments and fleets across land and sea all over the world. Analytics from cloudbased and other technologies provide valuable insights on – and can fiscally quantify – things like employee engagement and productivity. This data is direct feedback that supply chain managers can leverage to assess which leadership tactics are effective and which fail to drive workforce benchmarks.

Mitigating avoidable business risk by proactively transforming and shoring up supply chains with digital technologies and methodologies like these is a trend forecasted to persist over the next few years. Research and consulting firm Gartner predicts that

“by 2026, more than 75 percent of commercial supply chain management application vendors will deliver embedded advanced analytics (AA), artificial intelligence (AI), and data science.” A McKinsey survey also cited that more than 90 percent of supply chain professionals have invested in digital supply chain technologies in the last year.

Reinventing modern supply chain

Digital transformation is already reinventing the modern supply chain across sectors as technologies like artificial intelligence (AI), machine learning (ML), lnternet of Things (IoT), and blockchain integrations grow. These nextgen digital deployments are offering innovative ways for supply chain professionals to procure highly accurate, up-to-the-minute data – the kind that creates opportunities for companies to predict and aptly react to macro and micro conditions, mitigate risks, and, at the most extreme level,

thwart a business-busting disaster.

“Supply chains are complex and disruption is becoming the norm,” says Patel. “Businesses must be able to operate seamlessly within their ecosystem of functional teams, partners, logistics providers, customers, and other stakeholders, and work together to navigate and mitigate supply chain risk – all while improving customer experience. Establishing multi-tiered digitalization replete with data aggregation, information exchange, collaboration, risk management, AI-powered analytics, and robust cloud technologies can shore up a supply chain with unprecedented speed, visibility, synergy, and control. It’s a missioncritical way to maintain the kind of resiliency that will demonstrate – and protect – business value.”

Merilee Kern, MBA, is a brand strategist and analyst and founder of The Luxe List, TheLuxeList.com, linkedIn.com/in/MerileeKern.

Annual Banners Report 2023

Closing Date: November 8, 2023

In December 2023, Home Improvement Retailing will produce its 29th Annual Banners Report. As our industry undergoes dramatic change, retailers are mindful of new developments and the reinforcement of their Banner partners. This issue will be used to discover, compare and bolster Retailers’ positions on current trends.

The leaders of the Banners or Buying Groups will provide useful and up-to-date information on their offerings to emphasize and persuade retail dealers to consider their products. The information is highly sought after and prized by all in the retail community.

If you are interested in increasing or protecting your dealer base, this is your chance! Be a part of this significant read that many retailers will be consulting to help them get a better understanding of the industry today.

If you are a supplier to the industry, be a part of this must-read, editorial reference piece to build your brand in the industry. Retailers will refer to it again and again, and your message will have continuing value.

Contact us now to be a part of this important publication.

Impress your market with news about your company when you have their attention.

Advertising

Abhiram Prabhu

abhiram.prabhu@keymedia.com

Mike Hughes

michael.hughes@keymedia.com

Editorial

James Burton

james.burton@keymedia.com

Nienke Hinton

nienke.hinton@keymedia.com

RETAILING BY DESIGN

Homes need retrofits to fend off weather events

By: Lauren Johnson

August saw record-high temperatures across Canada as the country was struck by a heatwave, accompanied by, in some regions, dangerous wildfires. The Fraser Canyon, BC, communities of Lytton and Lillooet both reached 40 degrees Celsius – the first time the 40 degree threshold has been recorded anywhere in Canada this year. Lytton also reached a new Canadian record-high temperature of 49.6 degrees Celsius (nearly 24 degrees higher than normal) in June 2021. According to Environment and Climate Change Canada, the extreme weather events of 2021 were the worst Canadians have endured in the 26 years the agency has been reporting Canada’s top 10 weather events. In June and July of 2021, over 600 people died in British Columbia from heat-related conditions in their homes and places of care because of just one extreme heat event.

These heatwaves and the increasing concern for the changing climate are fuelling the urgency to retrofit homes and buildings. Retailers can help their customers by being aware of the technologies and government support available.

A report by the Pembina Institute concludes that a national renovation wave of deep retrofits would reduce heatwave-related deaths and protect people from other extreme weather events caused by climate change. Retrofits can replace fossil fuel heating systems with heat pumps and other technologies to eliminate carbon pollution from buildings.

Improving resident health

The design of these renovations is beneficial as it provides both cooling and better insulation for homes, which ultimately improves the health of residents.

“Heat pumps will also reduce the impact of deadly heatwaves, as they cool homes in addition

to heating them. Retrofits make Canadian homes more resilient to extreme weather and floods,” says Tom-Pierre Frappé-Sénéclauze, director of buildings and urban solutions at Pembina Institute.

In addition, these renovations could generate more than $48 billion in economic development, while creating up to 200,000 jobs and significantly lowering carbon emissions. This is because the actions needed to decarbonize buildings, like manufacturing and installing windows, heat pumps, and insulation, are labour-intensive and located where people live – in big cities, suburbs, and small towns. They could create well-paid jobs in the trades, manufacturing, and professional services for small-scale contractors and larger firms while providing an economic boost to home improvement retailers and building supply dealers. The renovations could also strengthen community fabric and reduce social inequity by preserving affordable housing, preserving heritage, and improving the health of residents.

Retrofits also play a role in not only decarbonizing commercial buildings but adapting them for increasingly extreme weather. This is beneficial not only for health reasons but also to allow businesses to remain open and running at full capacity even in the event of an extreme weather event.

However, to ensure the climate-resilience of Canada’s privately owned homes and buildings, they need to be explicitly included in the National Adaptation Strategy.

The first iteration of Canada’s National Adaptation Strategy, released in November 2022, outlines a plan for more climate-resilient infrastructure, communities, economy, and workers. It includes funding for public buildings and maintaining more resilient public infrastructure like roads, bridges, and sewers, all of which are important components of adapting communities to withstand increasingly more extreme weather. But missing in this plan are strategies to adapt the houses where Canadians spend 90 percent of

their time to weather extreme heat, cold, flooding, and forest fires. This is where retailers can help, by informing customers about what they can do to make their homes safer from climate-related events and supplying them with the products and services they will need.

Improving insulation and ventilation

Increasing insulation and sealing leaky building enclosures help reduce heat loss or heat gain and costs associated with heating and cooling buildings. During power outages caused by extreme storms or weather, a wellinsulated, sealed building stays warm while heating systems are offline and cooler when air conditioning systems are offline.

Additionally, improving ventilation and air filtration helps ensure people living in areas with poor outdoor air quality from pollution or forest fires can continue to draw in fresh air at times when opening a window would make indoor air quality worse; this is particularly critical during extreme heat events.

According to the Pembina Institute, actions under the National Adaptation Strategy need to evolve in coordination with Canada’s Green Building Strategy to make sure market sector homes and buildings are healthy, safe, and net zero. These actions should include:

• mapping all climate risks throughouCanada, not just flooding, and developing pre-emptive strategies to ensure people are able to quickly recover from extreme weather events

• setting home and building adaptation upgrade targets, such as setting a minimum number of safe-temperature hours during a power outage in a cold snap and working together with provincial, territorial, and municipal

governments, as well as Indigenous leadership, on adopting and meeting those targets in tandem with net-zero emissions efforts

• supporting development of climatesecure building codes and facilitating code implementation by provinces and communities to help make adaptation a priority, long after the memories of an acute event begin to fade

• helping communities, home and building owners, and industry stakeholders learn how to identify vulnerabilities, assess local and regional risks, and take steps toward adapting new and existing buildings to new climate realities

• supporting industry capacity growth, training, and up-skilling to implement new standards for climate-secure buildings

In February 2023, Julie Dabrusin, parliamentary secretary to the minister of natural resources and to the minister of environment and climate change, on behalf of the Honourable Jonathan Wilkinson, minister of natural resources, announced an investment of more than $4.4 million to the Canadian Home Builders’ Association (CHBA) to enable energy efficiency in the residential sector in municipalities across Canada.

CHBA will find cost-effective approaches to net-zero home retrofits and inform the development of energy codes for existing homes, targeting multiple building archetypes in various climate zones and varying business models.

“Climate change is measured globally but felt locally. The CHBA’s project is looking to demonstrate the best ways to retrofit homes to net-zero, energy–ready performance levels, to reduce both costs and renovation time. In

turn, this will inspire energy-efficient changes throughout Canada’s construction industry while supporting jobs and lowering emissions on our road to net zero by 2050,” says Dabrusin.

The federal government is creating sustainable jobs, boosting the economy, building a clean energy future, and charting a path toward net-zero emissions by 2050.

Additionally, the large investments in clean electricity, clean technology manufacturing and adoption, and infrastructure promised in the 2023 Federal Budget will lay the groundwork for low-carbon industrial investment in Canada, ensuring Canada’s electrical supply and grid are ready to decarbonize everything from buildings to transportation to energy production.

Retailers can do their part by offering the products and services homeowners and contractors will need to make these much-needed changes to their homes and communities.

Strong,

Contractors optimistic as industry stabilizes

By: Lauren Johnson

More than eight in 10 Ontario contractors are feeling good about their business prospects this year. According to the Ontario Construction Secretariat (OCS) Annual Contractor Survey, 81 percent of respondents think their business prospects for 2023 will either stay the same (49 percent) or improve (32 percent), while only 16 percent are forecasting a drop in business.

The industry is stabilizing following heavy losses during the COVID-19 pandemic due to shutdowns, closures, supply chain disruptions, and labour issues. However, the pipeline of work in the sector is generating strong demands for contractors and labour, and ultimately fuelling optimism for 2023, says Robert Bronk, chief executive officer of the OCS.

Despite the mostly positive outlook, the availability of experienced skilled labour and material-related costs are still prominent concerns within the industry. However, the severity of some issues, such as material availability and supply chain disruptions, has decreased since OCS’ 2022 survey, Bronk says.

Compared with 77 percent at this time last year, fewer firms this year (73 percent) report facing significant supply chain disruptions. This can be attributed to approaches taken by contractors to avoid supply chain disruptions including using alternative suppliers or alternative materials, accelerating material purchases, and stockpiling materials.

In addition to fewer supply chain disruptions, there is also a high demand for construction work and, therefore, an increased demand for skilled construction workers.

Contractors plan to hire

One-third of the contractors surveyed by OCS expect to be hiring this year, and two-thirds have raised wages in the past year to both retain and attract skilled labour. There is also an uptick in the percentage of contractors who are employing apprentices – 64 percent this year compared with 60 percent in 2022.

Even though supply chain disruptions are becoming less of a concern, the industry is still facing some challenges, one of which is the delay or cancellation of projects. More than one-third of contractors (36 percent) report that they have had a project cancelled in the past year, and more than half (53 percent) report that they have had delayed projects.

Escalating project costs have been cited as the number one reason for cancellations, with difficulty sourcing materials coming in second. High interest rates, lack of funding, labour shortages, and the scope of work being higher than anticipated are other factors that have contributed to project delays.

Labour, costs still top concerns

Similar to 2022, availability of experienced skilled labour and material costs are also top concerns. However, the percentage of contractors rating material costs as the highest concern (29 percent) is much lower than in 2022 (44 percent). Material availability also dropped as a top concern, with 17 percent of contractors rating it as their top concern this year, compared with 34 percent last year. The intensity, or average score, of each concern lowered slightly compared with 2022, with material availability dropping from 5.6 to 4.8 (out of seven, and likely reflecting easing supply chains).

In June, Procore Technologies, a global provider of construction management software, released its construction industry benchmark report, “How We Build Now: Technology and Industry Trends Shaping Canadian Construction in 2023.” The report examines the general sentiment of the industry, the digital maturity and adoption of construction technologies, as well as the challenges and opportunities that businesses face.

The report found that respondents consider hiring and retaining skilled labour as one of the top challenges they will face over the next 12 months. Twenty-nine percent report they have been unable to take on more projects in the past three to six months due to labour shortage, and 27 percent agree there is too much competition in construction for talent.

Provinces impacted differently

The report also found that supply chain problems impact respondents to different extents across the country. Quebec-based respondents report the highest impact, with 41 percent reporting significant delays due to supply chain issues, compared with 35 percent of respondents in Ontario and just one-quarter of respondents in British Columbia.

Despite some challenges within the industry, the overall outlook for Ontario’s construction industry is very positive; there are numerous projects and a strong demand for construction, which is fuelled by population growth and the need to update infrastructure.

The Procore Technologies report found nine out of 10 of respondents in Canada express confidence (44 percent very confident) about industry conditions over the next 12 months, with seven out of 10 construction businesses expecting an increase in the number (70 percent) or value (72 percent) of projects over the same time frame.

One solution to maintaining this optimistic outlook and overcoming existing roadblocks is digital transformation.

Construction firms in Canada understand that digital transformation is required to overcome the labour shortage: 22 percent of construction businesses consider themselves a digital-first business, and 51 percent are “well on the way” to adopting digital formats and workflows.

They also recognize that technology provides benefits, particularly around resource efficiency through less rework, an enemy of sustainability. The survey shows 27 percent of the total time spent on a project is spent on rework or rectifying issues.

According to the report, the industry realizes the value of data, yet they are not able to leverage it to the fullest. Forty-one percent of respondents feel they would be able to make better decisions if they had better access to real-time and historical information on project performance.

Respondents rated construction management platforms; clean technologies involving green, sustainable, or innovative materials; and next-generation building information modelling (BIM) as the top technologies that will drive change in the construction industry over the next three years.

Other factors that the industry is keeping in mind include the plan to adopt more environmentally conscious and sustainable building practices and the need to improve the well-being of workers.

The survey also revealed that the popularity of artificial intelligence (AI) is continuing to grow, with 37 percent of respondents saying they were either adopting or just starting to adopt the use of AI (up from 23 percent in 2018 and 29 percent in 2021) – in the form of digital twins, smarter construction equipment, data and document management, and enhanced safety and communication. With that, there is still a way to go, with just 4 percent currently applying AI across every project.

Terry Mulock NOVA SCOTIA, NEW BRUNSWICK & PRINCE EDWARD ISLAND

Moores NEWFOUNDLAND & LABRADOR

The pipeline of work in the sector is generating strong demands for contractors and labour, and ultimately fuelling optimism for 2023

Orgill invests for growth

2023 Dealers’ Market held with NHPA to connect with customers

Orgill has been hard at work making investments to elevate its position as a leader in the home improvement industry.

From rolling out plans to develop a 500,000-squarefoot concept centre in Tennessee to holding its dealers’ market in tandem with the North American Hardware and Paint Association’s (NHPA) Independents Conference, the independent hardlines distributor is committed to continuous improvement and growth.

“We’ve moved to one dealer market each year in the spring, and we’re pleased to use the NHPA Independents Conference this fall to connect with customers,” says Boyden Moore, president and CEO of Orgill.

“At the end of the day, we think it is important to throw whatever support we can behind important events like the NHPA Independents Conference. The reality today is that all independent retailers need to rally together to find ways to compete and remain relevant against competition. The only way we are going to ensure independent retailers continue to thrive is by coming together to share ideas and support one another.”

In support of the NHPA event, Orgill held its own companion activities adjacent to the Dallas, TX, conference August 1–3. These activities included Orgill’s popular Technology Symposium, additional educational sessions, and opportunities to interact with key product vendors. Orgill hosted a networking celebration at the world-famous Gilley’s for all conference attendees.

Orgill also had members of its sales team and headquarters staff on hand to help customers get the most out of the company’s Fall Online Buying Event, which ran concurrently with the event.

“As the concept centre is completed in early 2025, we plan to use it to supplement how we connect in person with our customers while continuing to drive further innovation and how we do online buying events as well,” Moore says.

As Orgill gets ready for opportunities and growth in the hardware industry, it will boost its sales team numbers and increase distribution centre space and technology.

Adding to the sales force

More than 400 sales professionals serve as business consultants to the retailers they work with, keeping them up to date on the latest industry trends, products, and services that can help them grow their operations.

Orgill has experienced unprecedented growth over the past three

years. To accommodate for this growth, Orgill has announced that the company will be making an investment to expand its field sales team by as much as 10 percent.

Distribution centre upgrades

Orgill’s investment in building a new, 800,000-square-foot, stateof-the-art distribution facility in Tifton, GA, has been taking shape over the summer. This new distribution centre will replace Orgill’s existing Tifton facility.

The new facility adds an additional 150,000 square feet of capacity beyond what the former Tifton facility offered and will also include leading-edge distribution technology to streamline the order receiving and fulfillment process.

Orgill now operates eight distribution centres in North America with 6.7 million square feet of capacity and more than 75,000 SKUs in each facility.

PRODUCT SPOTLIGHT

SUNBRELLA OFFERS CUSTOM WINDOW COVERINGS

Sunbrella now has its first brand-owned custom window treatment offering. Featuring new ranges of light-filtering fabrics designed specifically for the collection, the custom window covering assortment brings elevated style and premium performance to the home. Available as soft drapery, Roman shades, or solar shades, the coverings deliver the proprietary Color to the Core technology for fade-proof and easy-to-clean beauty. The collection features more than 300 colourways available across more than 40 different patterns in a variety of textures. In addition, the offering includes a range of customization features, including liner options, header treatments, valances, and cornices. Control capabilities include motorization and home automation options to integrate the window treatments into any smart home system.

DEWALT LAUNCHES FIRST SNOW BLOWER

DEWALT, a Stanley Black & Decker brand, released its first-ever snow blower, the 21" 60V MAX Single-Stage Snow Blower. It is designed for professional results with the ability to power through tough snow, clearing up to 16 parking spaces on a single charge. The unit is powered with the FLEXVOLT battery technology and features a 7" steel auger and two-way electric chute rotation to blow through heavy snow. The dual LED headlights provide visibility while the advanced LED dashboard displays the state of the charge and the operational mode as well as load and fault indicators. It is designed to be easily stored and transported.

SIMPSON STRONG-TIE INTRODUCES SCLC STAIR CASSETTE LEDGER CONNECTOR

Simpson Strong-Tie’s SCLC stair cassette ledger connector can be used alongside Strong-Drive SDS Heavy-Duty Connector screws, in conjunction with the LSCZ stair stringer connector, or as a means of installing prebuilt cassettes. “Offsite modular construction provides building projects with a solution to labour challenges and quality control on the jobsite,” says Randy Daudet, group product manager for mass timber/offsite products at Simpson. “The use of prebuilt stair cassette components is one of the ways modular techniques keep projects moving fast. The new SCLC ledger connector provides construction crews with speed and safety in the installation of strong prebuilt stair cassettes so projects stay on track.”

ELMIRA STOVE WORKS RELEASES NEW COLOUR COLLECTION

Elmira Stove Works, a manufacturer of premium vintage-style appliances and woodburning cookstoves, has introduced its latest colour collection, called Mountain Views. Inspired by the monumental Rocky Mountains, the new colours are Azure Sky, Alpine Lake, Douglas Fir, and Sandstone. The new colour options are available for the customization of Elmira’s Northstar and Heritage product lines. Customers can view the colour options, as well as Elmira’s standard colours, through the visualizer page on its website. The visualizer enables the user to build, save, and share their dream kitchen designs. With the completion of the design, customers can view the detailed price estimate for the package.

WORX RELEASES NEW CHAINSAW WITH IMPROVED FEATURES

The WORX Nitro 40V, 16" Chainsaw boasts a high-efficiency, maintenance-free brushless motor and two 20V 4.0Ah Power Share Pro batteries. Designed for swift cutting, this chainsaw delivers gas-like performance for timber up to 30" in diameter. Its 16" bar is equipped with a 3/8" pitch reduced-kickback chain, ensuring safety and offering a high-speed cut rate of 59 ft/sec for professional-grade efficiency. The chainsaw package includes two 20V 4.0Ah Power Share Pro Batteries, a 4-amp dual-port charger, and a bar and chain scabbard.

DIABLO

LAUNCHES GENERAL-PURPOSE SAW

BLADE

Diablo Tools has launched its Wood Demon Ultimate General Purpose Saw Blade, created to maximize productivity when cross-cutting and ripping hardwood and softwood. Designed to fit both table saws and mitre saws, the blade features Diablo’s specially formulated TiCo Hi-Density Carbide for maximum cutting life. It has Axial Shear Face Grind (ASFG) for clean application, Double Side Grind tooth design for a “polished-like” cutting effect, and Hi-Alternate Top Bevel (ATB) tooth geometry for cutting precision.