CHHMA - EYE ON OUR INDUSTRY
Volume 11, Issue 25, July 07, 2011
Inside This Issue:
Positive Efforts Made by Canadian Consumer Product Safety Coalition on New CCPSA
One Week Left to Send in Applications for CHHMA Scholarship Program
Register for CHHMA Go Kart Night
King Marketing to Represent T.S. Simms in West
Home Depot Canada Launches 20 Products from Innovation for Sustainability's First "Meet the Buyer" Event
Stewardship Ontario: MHSW Q3 2011 Reports Due July 31, 2011
Homeowners Cut Renovation Spending
Building Permits Rebound in May
Industrial Product, Raw Material Prices Fall in May
Canadian Economy Flat in April
May Inflation Jumps to Highest Level in 8 Years
Association News
Positive Efforts Made by Canadian Consumer Product Safety Coalition on New CCPSA
The CHHMA along with the other twelve trade associations that formed the Canadian Consumer Product Safety Coalition have been instrumental in making some positive changes to the new Canada Consumer Product Safety Act (CCPSA), which became effective June 20, 2011.
At the very beginning, the biggest challenge for industry was to ensure that the new legislation would not become more onerous than originally drafted. The Coalition was able to change a number of provisions as well as importantly defeat harmful amendments that could have made the legislation worse. For example:
- The definition of a "danger to human health or safety" was amended to include the term an "unreasonable hazard";
- A clause was removed that would have allowed the Minister to disclose any information to the public related to a danger to human health or safety;
- Amendments were defeated that would have required labelling provisions on consumer products for toxins and carcinogens;
- The expected time-frame for a review of an inspector's orders for corrective measures was improved;
- Orders for recalls and taking measures were placed under the Minister's discretion rather than an inspector;
- When reviewing orders for a recall a review officer now must complete this review within specific time frame; and
- Numerous improvements were made to the Guidance Document for Mandatory Incident Reporting, the most significant changes being a shift from awareness reporting to evaluative reporting and the incorporation of an "unreasonable hazard" into the determination of a reporting incident.
As companies begin to work through the new CCPSA provisions and questions begin to arise, the Coalition will seek out opportunities to discuss these matters with Health Canada in order to establish further clarification. The Coalition and its member companies remain committed to working with Health Canada in order to ensure the CCPSA achieves the desired results of enhanced consumer product safety.
Look for further updates in future CHHMA newsletters and Government Watch bulletins.
In the meantime, if your company experiences problems during the implementation period, please feel free to contact CHHMA President Vaughn Crofford at 416-282-0022 ext.30 or crofford@chhma.ca.
One Week Left to Send in Applications for CHHMA Scholarship Program
The CHHMA is once again pleased to be able to offer the opportunity for children of employees of our member companies to apply for a scholarship to help offset the cost of post-secondary education. The Association recognizes the importance of education and therefore encourages children of our member companies to attend University or College.
Five to seven scholarships are awarded each year. Successful candidates receive $1,000 CDN per year for the first two years of study leading to a diploma or degree from an accredited community college or university.
The scholarship program is available to the dependents of any current full-time employees of the CHHMA or member companies. The program is only offered to Canadian companies or divisions of companies based in Canada which are members of the CHHMA. The member company must remain a member in good standing in order for the student to qualify for the second year of the scholarship. The student's parent or guardian must be an active full-time employee with at least one year seniority with the CHHMA or member company as of July 15th in the year of application. Applicants must be high school seniors preparing to enter an accredited community college or university in the fall term, and attain a minimum average of 75% in the last year of high school. The decision of the Selection Committee and the CHHMA is final and not open to appeals. The CHHMA reserves the right to withdraw a scholarship should the student's parent(s) or guardian(s) voluntarily leave the employment of the CHHMA or member company, or if employment is terminated for just cause prior to the start of the school year, or if the company terminates its membership in the Association.
Complete details and application forms can be found at http://www.chhma.ca/Public/Scholarship-Program or click here for a PDF information sheet: http://www.chhma.ca/Public/Page/Files/34_CHHMAScholarshipAwardPoster_2011.pdf
The deadline for the CHHMA to receive applications is Friday, July 15th.
Since 2001, the CHHMA has awarded $108,000 towards scholarships and some 54 young people have benefited from the scholarship program.
Register 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, so register soon!
Click here to register: http://www.chhma.ca/Public/CHHMA-Upcoming-Events.
Member News
King Marketing to Represent T.S. Simms in West
Thomas Simms, Chairman, and Chuck Martin, President, of T.S. Simms & Co. Limited, Canada's leading source for paint applicators, are pleased to announce that effective immediately King Marketing Ltd. will begin to represent Simms in the Western Region. Tom Locey, Western Region Manager, who has been with Simms for over twenty five years, will continue in his role and work along with and support the King Marketing sales team.
Industry News
Home Depot Canada Launches 20 Products from Innovation for Sustainability's First "Meet the Buyer" Event
Last month, The Home Depot Canada announced 20 innovative products from 13 Ontario manufacturers that are now available at selected Home Depot stores. This pilot store project is the result of The Home Depot Canada's partnership program with the Ontario Ministry of Economic Trade and Development (MEDT)'s Innovation for Sustainability initiative.
Introduced in October 2010, the Innovation for Sustainability program invited small or medium-sized Ontario manufacturers to submit information about innovative home improvement products or technologies. The Home Depot Canada's merchandising team reviewed entries and invited prospects to the first of four "Meet the Buyer" events on December 13, 2010 in London, Ontario. Coming out of the event, The Home Depot selected 20 products from 13 Ontario manufacturers and has been working with them to get their products to retail in select stores in London and Ottawa, as well as some availability online at www.homedepot.ca. Each will be assessed for expanded distribution in the Canadian market.
"Ontario's businesses know that innovation is key to competitiveness and success," said Sandra Pupatello, Ontario Minister of Economic Development and Trade, in a Home Depot press release. "This great collaboration between Ontario and The Home Depot is helping our very innovative manufacturers seize opportunities in the home improvement market which is continually increasing efforts to search for products that are sustainable and innovative."
The list of products identified from the first "Meet the Buyer" event include:
- Bio-Lite Liquid Fire Starter, Bio-Lite Environmental Technologies (Kemptville, ON)
- BTE Utility Bin, BTE (Listowel, ON)
- Compostgenie Seeds, Cooter Muck Probiotics (Vankleek Hill, ON)
- Easy Coat Paint and Stain Applicators, Custom Foam Systems (Kitchener, ON) (three items)
- Dig It Handwear, Dig It (Toronto, ON) (four items)
- COOLFLEX, DuROCK Alfacing International Ltd. (Woodbridge, ON)
- ELT Living Wall Vertical Garden Kit, ELT EasyGreen, (Brantford, ON
- EnviroSAND and EnviroSTONE, Envirobond Products Corp. (Cambridge, ON)
- Handi-Block, Fiber Reinforced Cellular Concrete Canada (Georgetown, ON)
- NaturoPure HF 380 Air Purifier, Heaven Fresh (Toronto, ON)
- EconoGreen Plastics Kitchen Catchers and EconoGreen Plastics Garbage Bags, Jig-A-Loo Canada Inc. (Orillia, ON)
- Bio-Desolve Natural Septic & Wastewater Treatment, MTS Environmental Inc. (Centralia, ON)
- Rollux Paint Tray, Nuway Painters Supply Inc. (Dundas, ON)
"We were very impressed with the number and calibre of product submissions," said Jeff Kinnaird, vp of merchandising, The Home Depot Canada in the press release. "The 20 products selected meet important criteria of The Home Depot and our consumer - helping them save time, money and reduce their environmental impact. And we're committed to nurturing and assisting the 13 manufacturers as they build the capacity to do business with a large-scale retailer."
Even if a manufacturer was not selected for The Home Depot pilot, they were provided with valuable insight into the market, technology and customer knowledge requirement to succeed in retail. They were also given the option to work with MEDT Business Advisory Services to identify obstacles, gaps, and opportunities for growth. Business Advisory Services has 26 advisors across the province, working with small and medium sized manufacturers to help drive their businesses forward.
Submissions for the next "Meet the Buyer" event to be held in fall 2011 are now being accepted. Qualified small and medium-sized Ontario manufacturers with an innovative home improvement product can submit information for consideration at www.homedepot.ca/innovationforsustainability.
The Home Depot is looking for the following types of innovative 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, decor, heating and cooling, safety and security, lighting, fans, cleaning and janitorial products.
Stewardship News
Stewardship Ontario: MHSW Q3 2011 Reports Due July 31, 2011
Stewardship Ontario would like to remind stewards of the MHSW Program that their Q3 2011 reports of all nine Phase 1 materials are due by July 31, 2011. The reporting portal is now open.
Q3 reports are to include data from April 1, 2011 to June 30, 2011. Q3 payments are due by August 30, 2011.
When you now enter your Q3 report, you will notice that identifying an "Environmental Lead" is now mandatory. You will need to indicate a person in your company who fulfills this role. Although this individual may be the same as your primary or secondary contacts, they must be re-entered as the Environmental Lead. This will ensure that Stewardship Ontario is connecting with the correct individual in your organization about stewardship matters that are outside the realm of reporting and compliance.
For further information, contact Stewardship Ontario at 1-888-288-3360 or werecycle@stewardshipontario.ca.
Economic News
Homeowners Cut Renovation Spending
According to an annual Canada Mortgage and Housing Corp. (CMHC) report on renovation spending in Canada released last week, 34% of households surveyed expect to renovate this year, down from 42% in 2010 and 50% in 2009.
Among homeowner households that renovated in 2010, 73% completed some form of alteration and improvement of their home, while 46% completed maintenance and repairs. 19% undertook both.
Among homeowner households that renovated in 2010, 41% contracted out all the work, 28% did the work themselves or with friends and family, 25% contracted out for some of the work as well as engaging in the work themselves, while 4% bought the materials and contracted out the labour.
Remodelling of rooms (25%), painting or wallpapering (25%), hard surface flooring and wall-to-wall carpeting (24%) and windows and doors (21%) were the most popular renovations in 2010.
Homeowner households across the 10 major centres surveyed spent an average of $12,972 in 2010, up from $12,100 in 2009.
High household debt and housing affordability are taking a toll on the renovation sector, as many homeowners are already spending at their limit.
Total renovation spending in Canada was about $60 billion in 2010 according to economist Peter Norman of the Altus Group. In comparison, the new home building industry was less than $55 billion.
"There is clearly a fall off in intent for renovating as consumers may be reacting to mixed economic news," Norman said in an article in the Toronto Star. "They understand we are still in a fragile recovery and they may just be being cautious with their money."
Home sales have still remained strong across the country with every home generating $9,400 in incremental renovation and repair spending within three years of purchase. However, that figure is down from a prior report that said consumers typically spent $15,000 within three years of purchasing, according to Altus.
"They are not spending as much as they use to when they take possession. It could also indicate that there has been so much renovation activity over the last decade that the homes are already pretty spiffy," Norman further added.
The Federal Government's Home Renovation Tax Credit, which ended in early 2010, also has played a role. Likely, some of the work contracted in 2009 was pulled forward, as much as two years. The HRTC, along with provincial and federal energy savings rebates have helped boost the renovation industry.
"We are seeing continued growth in the average spending on renovations but there are fewer households who intend to spend," the CMHC also reported.
Building Permits Rebound in May
Statistics Canada reported on Wednesday that the value of building permits rose 20.9% to $6.4 billion in May, following a 21.5% decline in April. The advance was led by higher construction intentions, particularly for commercial buildings in Quebec and Alberta and multi-family dwellings in Ontario.
The value of permits in the non-residential sector rose 50.9% to $2.7 billion, after two consecutive monthly declines. The gain came mainly from higher construction intentions in the commercial component in Quebec, Alberta and Ontario.
The value of permits in the residential sector increased 5.3% to $3.7 billion in May, following a 12.1% decline in April. The increase occurred largely due to advances in the value of multi-family dwellings (+23.1%) with Quebec and Ontario leading the way. The value of building permits for single-family dwellings decreased 4.9%, following two consecutive monthly gains. Municipalities approved 17,022 new dwellings, up 10.8% from April. Multi-family dwellings were up 24.9% to 10,393 units while the number of single-family dwellings declined 5.8% to 6,629 units.
The total value of building permits increased in every province except Nova Scotia. Quebec posted the largest advance (+45.8%) from April. Ontario and Alberta also recorded significant gains.
Industrial Product, Raw Material Prices Fall in May
Statistics Canada reported on Monday that prices for both industrial products and raw materials fell in May. The Industrial Product Price Index (IPPI), which measures the cost of products as they leave Canadian factories,edged down 0.2%, the first drop in 10 months. Meanwhile, the Raw Materials Price Index (RMPI) fell 5.2%, after seven straight monthly gains.
The decrease in the IPPI in May from April was largely a result of lower prices for primary metal products, which dropped 2.8%. All metals were down, with the exception of aluminum. World demand for industrial metals declined, while inventories grew during the month. Petroleum and coal products (-0.9%) as well as lumber and other wood products (-1.6%) also contributed to the decline.
The IPPI was up 4.5% over May 2010, driven mainly by higher prices for petroleum and coal products (+31.2%) and primary metal products (+11.7%). Excluding petroleum and coal prices, the year-over-year IPPI would have increased 1.4% in May, slower than the 2.1% to 2.7% increases observed from January to April.
The month-to-month drop in the RMPI was driven mainly by mineral fuels (-8.4%). Crude oil was down 8.9%, following a jump of 14.1% in April and 16.2% in March. Crude oil prices fell in May as a result of high inventory levels in the U.S., the general state of the world economy, and weaker seasonal demands by refineries who suspend production at this time of year for maintenance.
Compared with May 2010, the RMPI was up 25.4% in May, led by mineral fuels (+37.0%), non-ferrous metals (+22.5%), vegetable products (+40.1%) and animal and animal products (+5.8%). Year over year, if mineral fuels were excluded, the RMPI would have risen 15.6% in May, similar to the growth rate in April.
Canadian Economy Flat in April
Canada's economy stalled in April, kicking off what is projected to be a weak showing for the second quarter. Real GDP was flat in the month, after expanding 0.3% in March, Statistics Canada said last Thursday. Both the goods-producing and services sector stalled.
Mining saw the largest growth in the month and is the fastest growing sector in the past year. The sector expanded 1% in April on strength in copper, nickel, lead and zinc mining, as well as coal extraction. Support activities for mining and energy also continued to climb. Retail trade increased 0.5% in April, after declining 1.2% the month before. Increases were registered at furniture and home furnishing stores, new and used car dealers as well as at clothing and accessory stores. In contrast, activity at building material and garden equipment and supplies stores was down. Construction edged up 0.1%, following a 0.9% increase in March.
Meanwhile, manufacturing decreased 0.7% in April, with most of the decline concentrated in the production of durable goods. The auto sector was down 6.9% due to supply disruptions. Wholesale trade decreased 0.5% in April. Wholesalers of motor vehicle and parts, petroleum products and building materials reported declines. Conversely, the wholesaling of food, beverage and tobacco products, as well as of personal and household goods and of machinery and equipment increased. The output of real estate agents and brokers decreased 4.4%, reflecting lower home resale activity in most provinces. The finance and insurance sector fell 0.4% in April.
Economists see growth in the range of 1% - 1.3% for the second quarter but expect the Canadian economy to pick up in the last two quarters of the year, closer to 2.5% growth, as gasoline prices simmer down and auto production rebounds, at least partly.
May Inflation Jumps to Highest Level in 8 Years
Statistics Canada reported last week that Canada's annual inflation rate jumped to its highest level in eight years in May, rising to 3.7%, as gasoline prices pushed the Consumer Price Index (CPI) to a new post-recession peak.
May's increase was higher than economists had predicted, and higher than the 3.3% hit the previous three months. On a month-to month basis, consumer prices rose by 0.7% in May from where they were in April.
Energy prices were up 16.6% in May, following a 17.1% increase in April. Gasoline prices were 29.5% higher in May than they were a year earlier, the largest increase since September 2005 in the aftermath of Hurricane Katrina. Prices were also higher for fuel oil (+28.2%) and electricity (+0.9%), while they declined 5.3% for natural gas. Excluding gasoline, the annual inflation rate would be 2.4%, still above the Bank of Canada's 2% target rate but less worrisome.
As well as energy, the cost of transportation also rose strongly in May by 9.1%, largely due to the cost of gasoline. Food prices continued to increase, 3.9% overall, and by 4.2% on food purchased at stores. Overall, prices increased at a faster rate in May from April in all major components of the CPI except shelter. Consumers paid 5% more for car insurance, clothing (+1.1%), and household operations, furnishings and equipment (+1.7%). Inflation was up in all provinces.
Providing some comfort for the Bank of Canada however, is that core inflation, which excludes volatile items like energy and some kinds of food, rose only moderately to 1.8% (up from 1.6% in April) and remains below the desired 2% target. In addition, gasoline prices are known to have fallen somewhat in June, and the HST effect in Ontario and B.C., estimated as much as 0.7 percentage points to the index, will be coming off in July.
The Bank of Canada's next scheduled meeting on interest rates is July 19, and most analysts expect they will keep the overnight rate at 1%, fearing any increase would weaken a still fragile economy. The central bank stated back in April that it expected inflation to push above 3% in the spring. Economists expect CPI inflation to fall back below 3% during the second half of 2011 and for core inflation to stay below the Bank of Canada's inflation target rate of 2%.
CHHMA Events For 2011
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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
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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