CHHMA - EYE ON OUR INDUSTRY
Volume 10, Issue 44, November 10, 2010
Association News
New Look for "Eye On Our Industry" Newsletter
As you can see, we have made a change to the “Eye On Our Industry” newsletter. In addition to the new look, articles are now organized by news categories and appear in shorter synopsis format with a link to the full article (if applicable) on the CHHMA website. The shorter version will make it easier to browse the weekly news, especially if viewing on a blackberry or other hand-held device and allow readers to then pick and choose the full articles they would like to read.
We will also continue to provide a full PDF format attachment as well as post the PDF version on the CHHMA website in the “Newsletter” section where past issues are archived.
Individual articles as well as press releases can also be found on the CHHMA website in the “News” section, conveniently organized by news categories. There is also an article word search function available to help you find a specific article from the past.
Comments regarding content and format are always welcome. Please contact Michael Jorgenson at mjorgenson@chhma.ca or (416) 282-0022 ext.34.
Member News
SPG International Celebrates 50 Years of Manufacturing Excellence in Canada
November 2010 marks the 50th anniversary for CHHMA member company, SPG International of Drummondville, Quebec. In 1960, Mr. Guy Guerrette made and sold his first toolbox. During his first year in business, he would take his toolboxes across Canada in his personal truck, often showing potential customers his products in their company parking lot. His first sale came at the end of a long week on the road, and that first customer is still with SPG today, 50 years later.
The company started with a short line of “Classic” toolboxes and the product line has grown to include more than 300 tool storage and job site products for the DIY, contractor, automotive and industrial professional. It also includes shop storage systems for the home owner garage, work shop and maintenance shop.
With over 1 million square feet of manufacturing facility, SPG International is one of the largest tool storage manufacturers in the world today. The majority of SPG International products are still made in Drummondville, making SPG International the oldest toolbox manufacturer in Canada. The company has a wealth of experience in their workers and has also invested in new manufacturing equipment and techniques. “The combination of these assets allows us to develop new products quickly and efficiently”, says Eric Lemieux, President of International Tool Boxes. The International brand is a wholly owned trademark of SPG International.
For further information, please visit www.spginternational.com.
Industry News
"Innovation for Sustainability" Program to Help Small Manufacturers
The Home Depot Canada and the Ontario Ministry of Economic Development and Trade (OMEDT) have partnered to launch “Innovation for Sustainability” – a first of its kind project to enable qualified small manufacturers to bring innovative, environmentally-preferred home improvement products to market.
Any small or medium-sized Ontario manufacturer has up until November 19, 2010, to submit information about its innovative home improvement product or technology at www.homedepot.ca/innovationforsustainability. After reviewing entries, the merchandising team at The Home Depot Canada will invite prospects with potential to the first of four “Meet the Buyer” events on December 13, 2010 in London, Ontario. Following this first event, selected products will be stocked by The Home Depot in three London area stores and assessed for expanded distribution to the Canadian market. All proposals received after November 19th, will be considered for future Meet the Buyer events.
The Home Depot is looking for the following types of innovative and environmentally-preferred home improvement products: indoor/outdoor building materials/supplies/tools (siding, cement, lumber), lawn and garden, shelving, storage and organization, plumbing, paint, electrical, power equipment, hardware, outdoor furniture, lawn mowers, kitchen and bath, appliances, window treatments (blinds, shutters), flooring (tile, carpet, hardwood), sheds, décor, heating and cooling, safety and security, lighting, fans, cleaning and janitorial products.
“Ontario is proud to work with companies, like The Home Depot Canada, that are leading by example in their efforts to conduct business in an environmentally responsible and sustainable manner,” said Sandra Pupatello, Ontario Minister of Economic Development and Trade. “Innovation for Sustainability promises to drive innovation, sustainability and economic opportunity for Ontario-based companies. For the first time, small companies that haven’t been able to meet the requirements of the large retail market are being given that opportunity through this partnership between the province and The Home Depot Canada.”
“This project not only supports our business goal of bringing innovative home improvement products and technologies to market, but offers important insights on existing gaps, opportunities and how business and government can best support manufacturers looking to move beyond research and development to retail success,” said Gino DiGioacchino, VP of merchandising, The Home Depot Canada.
Innovation for Sustainability is aligned with the Ontario Government’s economic revitalization strategy which has seen the introduction of policies such as The Green Energy Act to stimulate innovation, job creation and economic growth in the manufacturing service and related sectors. Investments in areas such as renewable energy, lighting technology and water purification highlight the Ontario Government's efforts to develop innovative products. While there have been some successes in the commercialization of new technology, many innovative products never make it beyond the research and development phase. There are a number of factors responsible for this situation including financing, viability, performance, etc. but a frequent underlying cause is the inability of various sectors to come together to nurture and grow high potential products or technologies to scale through a distribution channel. Stronger collaboration between manufacturers, government, retailers and social innovation companies, such as Summerhill, are required throughout the business lifecycle process to enhance the required conditions for success. This is the purpose of the Innovation for Sustainability initiative.
Bill 168, Occupational Health and Safety Amendment Act (Violence and Harassment in the Workplace)
Bill 168, An Act to amend the Occupational Health and Safety Act with respect to violence and harassment in the workplace and other matters, came into effect June 15, 2010. Workplaces in Ontario are now required to have the necessary policies, programs, measures and procedures in place. That means that now, safety trumps any privacy laws. Bill 168 poses unique challenges that most employers will need help with in terms of understanding the requirements; realizing the far-reaching implications; and devising strategies for compliance.
The legislation will require employers to develop:
• Violence and harassment policies and programs
• Employee reporting and incident investigation procedures
• Emergency response procedure (violence only)
• Process to deal with incidents, complaints and threats of violence
Employers are required to complete a risk assessment of violence hazards that may arise from the nature of the workplace, the type of work or the conditions of work before developing a program.
Bill 168 adopts an approach similar to other federal and provincial violence and harassment laws by:
• Providing clarity around employer accountability
• Taking a process-driven, “how-to” approach to compliance
• Sending a “take action” message to supervisors and middle-managers
To obtain a copy of Bill 168, visit:
www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=2181
The above information was provided by Wolf Gugler, Wolf Gugler & Associates Limited, Executive Search & Assessment (www.wolfgugler.com).
Economic News
Housing Starts Drop in October
On Monday, Canada Mortgage and Housing Corp. (CMHC) reported that housing starts fell more than expected in October, the third consecutive monthly decline. The seasonally adjusted annual rate of 167,900 starts in October was down 9.2% from 185,000 in September. The September number was revised down from the previously reported 186,400.
Housing starts moved lower in October due to a decrease in urban single starts in all regions, with the exception of Atlantic Canada. Both single-detached and multiple starts decreased in October. Housing starts in urban areas were down 12.3% to an annualized rate of 142,400. Starts were down 24.5% in Ontario, down 16.9% in the Prairies, down 9.1% in B.C., down 2.6% in Quebec but up 32.9% in Atlantic Canada. Urban multiple starts fell 15% in October to 84,700 units, while singles slipped 8% to 57,700 units. Rural starts were estimated at an annual rate of 25,500 units in October.
Since the spring of last year through to this September, starts of single-detached units have fallen 39% while multiple unit starts have risen 29%. The boom in multiple starts has been a “head scratcher,” with starts in recent months well above historical norms, said TD senior economist Pascal Gauthier. He believes multiple starts will show “some vulnerability” in the coming quarters.
The rate of housing starts in Canada has generally been trending lower since reaching a level of 205,700 in April. But starts have recovered significantly from the rate seen during the recession, which bottomed out at an annualized rate of 112,000 in April 2009. The moderation of housing starts is consistent with CMHC’s forecast for 2010 of 184,900 units. Looking ahead into 2011, the agency sees housing starts becoming gradually more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.
Canadian Real Estate Association Lowers Home Sales Forecast
Last Friday, the Canadian Real Estate Association (CREA) lowered its resale home forecast, saying activity will decline this year and next. National sales activity is now expected to fall 4.9% this year to 442,200 units and sales will tumble another 9% to 402,500 units next year. Lacklustre economic and job growth, muted consumer confidence, and the resumption of interest rate hikes next year are the main reasons behind the lower sales forecast in 2011. Prices, however, are expected to hold up better ending this year 3.1% higher than they started before falling 1.3% next year.
September sales data showed the average national sales price at $331,089. Prices peaked in May at $346,881. CREA expects prices will continue to fall for the rest of the year. Much of the national decline in the next year will be driven by lower demand in Ontario and British Columbia. Modest average price gains are forecast in 2011 in all provinces except Alberta, B.C. and Ontario. Lower sales activity in B.C. and Ontario are expected to result in the 1.3% decline in the national average price to $326,000.
“Interest rates are expected to resume to more normal levels next year, but will still be at levels that are friendly to the housing market,” said Georges Pahud, CREA’s President. “For the tenth year in a row, more than 400,000 homes are expected to change hands over the MLS systems of Canadian real estate boards and associations next year.”
Meanwhile, Gregory Klump, CREA’s chief economist said “Housing demand and supply is stabilizing. That’s good news for home buyers, who feel less hurried to make an offer than they did when transitory factors ignited housing demand early in 2010. It’s also good news for home sellers, who feel more confident about price stability now that the housing market has become more balanced. Many households will be focused on paying down their debts before the Bank of Canada resumes hiking interest rates next year. Economic uncertainty is likely to keep potential home buyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell.”
Building Permits Rise in September
Statistics Canada reported last Friday that the value of building permits increased 15.3% to $6.6 billion in September, rebounding from previous monthly declines, as both residential and non-residential sectors saw strong gains. Most economists had expected permits to rise only 2.5% during the month. Overall, permit values were up in five provinces, led by Ontario, British Columbia and Quebec.
The value of residential permits rose 8.3% to $3.9 billion in September, the second straight monthly increase, with the majority of building intentions seen in Ontario and British Columbia. The value of building permits for single-family dwellings increased by 9.5% to $2.2 billion, following five months of declines. There were higher construction intentions in seven provinces, led by Ontario. Intentions for multi-family dwellings rose 6.7% to $1.6 billion, the second monthly increase in a row. B.C. recorded the largest increase among the six provinces that reported a gain in this area. Nationally, municipalities approved 17,510 new dwellings in September, up 4.0% from August. The increase came mostly from single-family dwellings, which rose 9.2% to 7,178 units. The number of multi-family dwellings edged up 0.6% to 10,332 units.
The value of non-residential permits was up 26.7% to $2.7 billion. That followed a 24.2% drop in August.
Canadian Job Growth Little Changed in October
The Canadian economy eked out 3,000 jobs in October, less than economists had expected and the second month in a row of little change. Statistics Canada reported last Friday that Canada’s jobless rate dropped to 7.9% in October from 8% the month before, as more people left the labour force. The rate has remained around the 8% mark for the seven past months and is well above its pre-recession level of 6.2%.
The latest labour report suggests employers remain cautious about hiring. While the labour market has created 375,000 jobs in the past year, most of the strength happened in the first half of 2010. Job growth averaged 51,000 positions a month in the first six months of the year, compared with 5,700 jobs a month in the past four months. That said, details of the latest jobs data were actually better than the headline number would suggest. October’s small gains came as higher paying full-time employment (particularly in the private-sector) rose by 47,000 while part-time jobs fell by 44,000. In the past three months, part-time losses have been offset by full-time gains. Over the past three months, 164,000 full-time jobs have been added to the Canadian labour market. Public-sector jobs were little changed during the month and self-employment fell by 24,000. The fall in self-employment and offsetting gain in full-time jobs indicate a boost in the quality of jobs being created, economists say.
Like much of the past year, employment rose among older workers. In October, nearly all the gains among workers aged 55 and over came among women. Employment fell among those aged 25 to 54. Among sectors, retail and wholesale trade recorded losses. Information, culture and recreation along with construction and agriculture added to payrolls. The goods-producing sector of the economy, which tends to have higher paying jobs, created 35,600 positions in October (led by a gain of 21,000 in construction), offsetting a 28,900 decline in retail and wholesale trade services.
U.S. Adds 151,000 Jobs in October
In the U.S., meantime, job growth increased by a better than expected 151,000 non-farm payrolls in October, the first increase since May, while the jobless rate held steady at 9.6%. The Labor Department survey of employers released last Friday showed that private employers hired 159,000 workers, while governments at all levels shed only 8,000 jobs, a much better showing than September’s sharp drop. The October increase was powered by gains in mining and a number of service-providing industries. Last week, the Federal Reserve unleashed an eight-month, $600 billion US asset buying program in an effort to help the U.S. recovery in order to bring down the unemployment rate. The economy needs to create about 150,000 jobs a month just to keep pace with the additional numbers coming into the labour force, thereby preventing the unemployment rate from rising any higher.
CHHMA Events For 2010
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Industry Cocktail
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Tuesday, November 30
Montreal Casino,
Montreal, QC
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To register for all events visit our website at www.chhma.ca or call Pam Winter at (416) 282-0022 ext.21.
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"Eye On Our Industry" is published by the CHHMA as an information resource for our members. Member input regarding content and format is welcomed. Please contact Michael Jorgenson by email: mjorgenson@chhma.ca, or call at (416) 282-0022, ext. 34. CHHMA is located at 1335 Morningside Ave., Suite 101, Scarborough, ON, M1B 5M4 www.chhma.ca