EXECUTIVE INTERVIEW BERNIE OWENS TIMBER MART’S BERNIE OWENS: WE HAVE TO BE EYES-OPEN As TIMBER MART kicked off its 50th anniversary earlier this year, President Bernie Owens sat down with <strong>HHIQ</strong> to talk about the group’s past and his thoughts on its future. T he 50th anniversary of TIMBER MART finds President Bernie Owens enthusiastic, but also reflective. For him, the milestone offers a chance to look back at the evolution of this industry and question what lies ahead. “Talking about the next 50 years, the pace of change and consolidation in the industry, especially in recent years, I look at it and say, ‘How are we going to differentiate ourselves going forward?’ ” In conversation with <strong>HHIQ</strong> at the group’s annual trade show in Toronto, he touched on a lot of themes, but with a big-picture perspective. For example, the recent overtures by competitors to increase off-the-top rebates on invoices had him worried about the entire eco-system of the Canadian supply chain. For him, all sides have to succeed, for the sake of a strong Canadian-based industry—including vendors. His group works from that principle: “We have that intimacy with the vendor community, but we have to make sure we’re buying right for our members,” he adds. Owens talks about the independents competing alongside the big chains and offers some sobering thoughts about the next wave of consolidation that this country could face. Besides Lowe’s and Home Depot, there are numerous smaller, regional chains in the U.S. that are still huge by Canadian terms. He points out the acquisition last summer of the Construction Products division of Superior Plus (which includes Allroc and Winroc), which was bought by Foundation Building Materials in California. “That company didn’t exist two years ago,” he says. “It’s all private-equity money.” Could this become a larger trend that could impact more Canadian companies? “We have to be eyes-open that it’s an evolving industry.” Nevertheless, Owens sees the independent model as both sustainable and healthy, one that the buying groups are an important part of. The volume purchases that TIMBER MART can achieve for members, both big and small, he notes, provide plateaus that give them all a competitive advantage against the large chains. He believes the buying group model is a good one that will continue to serve independents. Owens also points out that the groups in Canada, unlike their U.S. counterparts, “are not channel specific.” Groups here can have members that range from pro dealers and gypsum supply dealers (GSDs) to home centres and hardware stores. “With us, it’s got its pros and cons—but more pros that we have different segments, so if one slows down the others keep going.” He points out, for example, that alongside Bernie Owens spoke with the <strong>HHIQ</strong> team at TIMBER MART’s annual trade show, where the group was celebrating its 50th anniversary. the traditional dealers in his group’s ranks, TIMBER MART represents the largest volume by GSDs in Canada. But he’s very selective about which commercial dealers can join. And that directive goes for any member, for that matter. There’s no cap in size, he says, but “if it’s a well-run business and we have a fit in our group, we can sign them.” He points to a larger affiliation, as well. TIMBER MART’s membership in yet another buying group, Spancan, gives his members access to a strong source of hardware supply. And in return he says his group can provide loyalty to drive volumes. “When a vendor wins it, he gets the business,” Owens says. The relationship with Spancan keeps growing, he says. With that group, his members can negotiate vendor-direct programs. For fill-in and less-than-vendor-direct orders, he praises the role that hardware wholesaler Orgill provides in supplying a full range of hardlines to his members. 20 THIRD QUARTER / 20<strong>17</strong> Hardlines Home Improvement Quarterly www.hardlines.ca
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