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CHHMA NEWS

CHHMA - EYE ON OUR INDUSTRY
Volume 11, Issue 29, August 10, 2011

Inside This Issue:

Industry Memorial Golf Classic  
Spots Still Available for CHHMA Go Kart Night 
Marc Turgeon Retires From Groupe SEB Canada Inc.  
World Kitchen Canada Moves Office to New Location  
Canadian Tire Receives Clearance to Buy Forzani Group  
Housing Starts Rise More Than Expected in July  
Building Permits Increase in June  
Canada's GDP Shrinks in May  
Canadian Job Growth Slows in July  
U.S. Job Gains in July Higher Than Expected 

Association News


 
Industry Memorial Golf Classic 

This year's Industry Memorial Golf classic is being held on Tuesday, September 27th at a new location; the Blue Springs Golf Club in Acton, Ontario.
 
Registration will be open in the next day or two, so look for email notices from CHHMA Events or go to https://www.chhma.ca/Public/CHHMA-Upcoming-Events to sign up soon.

The event is held each fall in the memory of stalwarts from the Canadian Hardware & Housewares Industry who have recently passed away. This year's honourees include Joseph Kuchar (founder of Recochem Inc.), Sheldon (Shelly) Lush (former president & chairman of Supreme Aluminum Industries Ltd.), Jack Joseph Pountney (Proctor Silex, Shetland Lewyt, Hoover Company) and
Christof Vanooteghem (LM2 Marketing, Imperial Manufacturing Group, UAP/NAPA).

In addition, we will remember previous honourees: Ian Hay, Trygve Husebye, Bernie Carpenter, Don McDonald, Les Groves, Bob Hilton, Doug Straus, Mel Boshart, George Giles and Ed Barnes.

The event is open to CHHMA members and non-members with golf & dinner or dinner only options.

Money raised from the hole sponsorships and the silent auction will go towards the CHHMA Scholarship Program which provides support for children of CHHMA member company employees to attend university or college.

Consider donating an item or items for the silent auction. Housewares or hardware products, golf items or any item interesting and/or unique would be sincerely appreciated. Whether or not you can attend the tournament, your donation will contribute to the Scholarship Progam which has benefited 54 young people since 2001. Click here for a silent auction pledge form.

If you have any questions, contact Pam Winter at  16-282-0022 ext.21 or pwinter@chhma.ca



Spots Still Available for CHHMA Go Kart Night 

The CHHMA Go Kart Night is taking place on Thursday, September 1st at the Circuit ICAR motorsports complex (http://www.circuiticar.com/accueil.html), located 20 minutes north of Montreal in Mirabel, Quebec.

The Go Kart racing will take place on an outside 1 km long track designed by 1997 F1 World Champion Jacques Villeneuve, where karts can reach speeds of up to 65 km/h.

The cost to attend is $100 for CHHMA members, $120 for non-members plus taxes and will include a cold buffet served in the clubhouse (5:00 p.m.) prior to the racing competition which will start at 6:30 p.m. The competition will be a team format so register a team foursome (individuals not registering as a foursome will be assigned to teams). The event is limited to 40 persons.  Click here to register: https://www.chhma.ca/Public/CHHMA-Upcoming-Events.  
    

Member News

Marc Turgeon Retires From Groupe SEB Canada Inc.

Industry veteran Marc Turgeon retired from Groupe SEB Canada Inc. at the end of June. Marc joined the company in 1985 as President working out of Mississauga, Ontario with a staff of 10 people. The company moved to Scarborough, Ontario in 1987 and Marc was instrumental in the growth of the company over the last 26 years which has seen its number of employees grow to 42.

Marc plans to enjoy his retirement traveling with his wife, and spending lots of time fishing and hunting.

A farewell party for Marc took place on June 29 which was attended by family and many friends from the industry.
 

World Kitchen Canada Moves Office to New Location 

Effective July 15, 2011, World Kitchen Canada has moved their office to a new location. The primary purpose for the move was to be more centrally located, thus improving customer support. The new address is:

World Kitchen Canada (EHI), INC.
2265 Upper Middle Road, Suite 102
Oakville, Ontario L6H 0G5
1-800-263-2510



Industry News

Canadian Tire Receives Clearance to Buy Forzani Group  

Last Wednesday, Canadian Tire Corporation, Limited announced that they have received clearance from the Competition Bureau to proceed with its $771 million acquisition of The Forzani Group Ltd.

The company said it had received a letter from the Competition Bureau stating that it does not intend to take any action related to the transaction, which essentially clears the way for the purchase to be completed.

The Canadian Tire offer is valued at $26.50 in cash for each outstanding Class A common share of Forzani (a 50% premium to Forzani's stock price prior to the offer). The offer is open for acceptance from Forzani shareholders until August 18.

"Forzani is an excellent fit with the Canadian Tire family and will extend our reach to include new customers," said Stephen Wetmore, Canadian Tire President & CEO, in a press release. "We look forward to closing the acquisition in short order and getting down to work."

Forzani has 534 stores and 16% of the sporting goods market in Canada with annual sales of $1.4 billion. It runs chains under 12 banners including: Sport Chek, Sport Mart, Atmosphere, National Sports, Sports Expert, Athletes World, Hockey Experts, Intersport, Nevada Bob's Golf, S3, Fitness Source and The Tech Shop.

Canadian Tire has long sold basic sporting equipment, but the Forzani purchase will allow it to reach more 18 to 35 year olds who tend to shop in malls for more specific equipment and trendier brands.
    

Economic News


Housing Starts Rise More Than Expected in July  

Canadian housing starts unexpectedly rose 4.3% in July to a seasonally adjusted annualized rate of 205,100 units from a downwardly revised 196,600 units (from 197,400) in June, said Canada Mortgage and Housing Corp. (CMHC) on Tuesday. July's starts were above average expectations of analysts who were calling for 196,000 starts, and were elevated by a big jump in multi-residential construction in all regions except Quebec.
 
The seasonally adjusted rate of urban starts increased 4.7% to 185,200 units in July led by a 13% jump in multiple urban starts to 120,200 units. CMHC said Ontario (+1.7%), B.C. (+33.0%) and the Atlantic region (+36.1%) showed the most strength in the multi-residential sector. Quebec posted a decrease of 7.8% while urban starts decreased by 0.3% in the Prairie region.

Meanwhile, single starts decreased 7.8% in July to 65,000 units and rural starts were estimated at a seasonally adjusted annual rate of 19,900 units in July.



Building Permits Increase in June  

Statistics Canada reported last Friday that municipalities issued building permits worth $6.6 billion in June, up 2.1% from May, when growth was 20.9%. The increase in June was led by higher construction intentions for industrial and institutional buildings in Ontario and multi-family dwellings in Quebec.

The value of building permits in the non-residential sector rose 3.0% to $2.8 billion in June, following a 51.1% increase in May. Permits for industrial and institutional buildings in Ontario and Quebec were behind much of the advance.

In the residential sector, municipalities issued $3.7 billion worth of permits in June, up 1.5% from May. The value of building permits for single-family dwellings rose 3.4% to $2.2 billion in June, following a 4.8% decline in May. June's increase was attributable to gains in eight provinces, led by Ontario and Saskatchewan. Construction intentions for multi-family dwellings decreased 1.0% to $1.5 billion in June, following a 22.6% advance in May. Ontario, Quebec and Alberta accounted for much of the decline. Conversely, B.C. registered the largest gain, followed by Nova Scotia.

Canadian municipalities approved the construction of 17,227 new dwellings in June, up 1.5% from May. The increase came from single-family dwellings, which rose 4.7% to 6,946 units. Multi-family dwellings edged down 0.5% to 10,281 units.

The total value of building permits was up in seven provinces, led by Ontario and B.C., while Alberta, New Brunswick and Manitoba posted declines in June.
   

Canada's GDP Shrinks in May 

Canada's GDP shrank 0.3% in May, driven largely by declines in the oil and gas sector and mining, according to Statistics Canada data released July 29. Most economists had been expecting a small increase of 0.1% to 0.2% after GDP was flat in April. The drop was the largest since May 2009. 

The oil and gas sector, which had been a big driver for the economy recently, was responsible for a big part of the May drop, falling by 5.3% on the month. However, much of this drop was due to wild fires in Alberta which forced oil and gas companies to cut production. Support activities for mining, oil and gas extraction also contracted as drilling and rigging activities were down partly as a result of unfavourable weather.

Manufacturing declined 0.4% in May, with production of non-durable goods decreasing 1.4%, while the output of durable goods increased 0.4%. Output at refineries was significantly reduced, mostly as a result of maintenance shutdowns at a number of facilities across the country. Manufacturing of food and plastic products also declined. Motor vehicles and parts production decreased 0.5% in May, following a more pronounced decline in April due to supply disruptions as a consequence of the tsunami in Japan. Conversely, manufacturing of computer and electronics (+5.1%), chemicals (+2.3%) and machinery (+1.2%) was up.

Construction activity was down 0.3% in May as poor weather delayed projects. A decline in engineering and repair work and non-residential building construction outweighed an increase in residential building construction.

Retail trade was up 0.2% in May as a result of increased activity at building material and garden equipment stores and general merchandise stores. Conversely, sales at food and beverage stores and new car dealers were down. Wholesale trade advanced 1.0% in May, with the growth concentrated in machinery and equipment as well as agricultural supplies. Wholesaling of petroleum products and motor vehicles was down.

Before this latest data, even the most pessimistic estimates for the annual rate of growth for the Canadian economy in the second quarter were still higher than 1%. In response to the latest numbers, economists are quickly revising their second quarter estimates to as low as 0.5%. Looking forward, most economists still see growth picking up through the rest of the year but questions are being raised about the strength of that pickup.

Meanwhile, U.S. GDP advanced at an annual rate of 1.3% in the second quarter, weaker than the 1.8% growth rate most analysts were expecting. Also, GDP numbers for the first quarter were revised downward from 1.9% to only 0.4%. The new calculations from the Commerce Department also showed that U.S. GDP contracted 5.1% during the recession, a full percentage point higher than the previous estimate. 
       


Canadian Job Growth Slows in July 

The Canadian economy created just 7,100 jobs in July, Statistics Canada said last Friday, about half of the 15,000 economists were expecting. The unemployment rate fell to 7.2% in July from 7.4% in June as fewer people sought work. This follows three straight months of strong job gains - 28,400 in June, 22,300 in May and 58,300 in April.

Job increases in the private sector (+94,500) were offset by losses in the public sector (-71,500) and fewer people who were self employed (-15,900) in July. The private sector has now added more than 240,000 jobs in the past 12 months. That's a gain of 2.2%, compared to a rise of just 0.9% for the public sector.

Full-time employment was up 25,500 for the month while part-time workers fell by 18,400.

July's job gains were led by the construction sector, which saw an increase of 31,000 jobs, following three months of little change. Over the past 12 months, construction employment is up 66,000 (+5.3%). Employment in the transportation and warehousing sector was up 28,000 jobs, and there were also 28,000 more people working in retail and wholesale trade in July. Employment in manufacturing edged up in July and has increased by 22,000 jobs (+1.2%) over the past 12 months.

In July, there were fewer jobs in health-care and social assistance, elementary and secondary schools, businesses, building and other support services, natural resources and agriculture.

Regionally, Alberta and Newfoundland and Labrador posted job gains in July, while Ontario saw losses (-22,400) and most of the other provinces saw few changes.  
  

U.S. Job Gains in July Higher Than Expected

U.S. job growth accelerated more than expected in July as private employers stepped up hiring, but the pace still remains short of what is required to ensure unemployment will keep declining. The Labor Department reported last Friday that nonfarm payrolls increased 117,000, above market expectations of an 85,000 gain. The Department also revised figures for May and June to show an additional 56,000 jobs were added than previously reported. July's unemployment rate dipped to 9.1% from 9.2% in June, as many discouraged job seekers gave up looking for work.
 
All the job gains came form the private sector, where payrolls rose 154,000, up from June's 80,000 gain and more than the 115,000 expected by economists. Most of the private sector gains were concentrated in the services sector. Manufacturing payrolls rose 24,000 in July after increasing 11,000 in June, with most of the gains coming from the auto sector. Construction employment increased 8,000 after dropping 5,000 in June.

Government payrolls declined by 37,000 in July, the ninth straight monthly decline. However, 23,000 of those job losses were the result of a partial shutdown of the Minnesota government, which has now been restored.

Average hourly earnings rose 0.4%, a decent increase that could indicate that consumer spending will pickup. 
  

 CHHMA Events For 2011

Soiree Karting/Go Karting Night
Thursday, September 1
Circuit ICAR, Mirabel, Quebec

Industry Memorial Golf Classic
Tuesday, September 27
Blue Springs Golf Club, Acton, Ontario

Industry Cocktail
Tuesday, November 29
Casino de Montreal, Montreal, Quebec

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

Canadian Hardware & Housewares Manufacturers Association | 1335 Morningside Ave., Suite 101, Scarborough, ON M1B 5M4
Telephone: (416) 282-0022   Email: pwinter@chhma.ca