May-June 2018 Wood Industry

GRAZIE

XYLEXPO MAY/JUNE 2018

www.woodindustry.ca

The business side of woodworking

ERP processes go beyond Lean Knowing when to incorporate

UR0 1 8 BO 2 LA C U S

Loewen Windows: Make statements to compete

FO

Do you owe basics to employees?

Of course.

Ignoring obligations could leave you exposed.

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FIRING can

go both ways

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Editor and Publisher

Kerry Knudsen

kknudsen@wimediainc.ca 647-274-0507

Associate Publisher

Steve King

sking@wimediainc.ca 905-703-6597

Contributing Editor

Mike Edwards

medwards@wimediainc.ca Art Director

Lee Ann Knudsen lak@wimediainc.ca Graphics

nsGraphic Design nspence@wimediainc.ca Circulation

Omni Data Services circulation@wimediainc.ca www.omnidataservices.com

The business side of woodworking MAY/JUNE 2018 Vol. 14, No. 3

Feature:

Wood Industry is published six times annually, Jan./Feb., Mar./Apr., May/ June, July/Aug., Sept./Oct. and Nov./Dec., for the secondary wood products manufacturing and marketing industries in Canada.

For employee and employer, firing can go both ways.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shows:

© 2018 by W.I. Media Inc. All rights reserved. W. I. Media Inc. and Wood Industry disclaim any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect to the results of any action taken or not taken in reliance upon information in this publication. The opinions of the columnists and writers are their own and are in no way influenced by or representative of the opinions of Wood Industry or W.I. Media Inc.

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Canadians take home business, ideas from wood industry trade fair in Milan. . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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Focus on Labour:

Constructive dismissal

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Architect-ready

Loewen Windows & Doors responds to high-end market demands. . . . . . . . . . . . . . . . . . . . . . . . . . . 16

WOOD Editorial . . . . . . . . . . . 4 Filings . . . . . . . . . . . 10 Law . . . . . . . . . . . . . . 14 Design . . . . . . . . . . . 19 Digital . . . . . . . . . . . 20

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WOOD INDUSTRY 3

From the editor

Trilateral best deal T

hose of you that know this magazine know we don’t endorse products and we don’t involve advertising or advertisers in our editorial content. The reasons for this are many and strong, but largely editorial involvement in advertising invariable leads to conflicts, deceived readers and irritated suppliers. The whole practice, as is in evidence, is remarkably unbrilliant.

That said, I don’t want to be prevented from saying something that needs said, so I want to mention Combilift. Combilift has never Kerry Knudsen advertised with us, and possibly never will. They should, but that is not the objective of this note. Full disclosure: I have been to Ireland twice in 10 years to see Combilift, both times at their expense. So it took me 10 years to decide to write about it.

On first blush, the original Combilift looks and acts as if it’s a forklift. And it is, of sorts. However, it specializes in the kinds of long and fragile loads we run into in the wood industry.

Functionally, its four-way steering system allows the machine to travel sideways with long loads and change the direction of travel by 90 degrees with the flick of a switch.

This is not the same as the zero-turn-radius lawnmowers, etc., that are all the rage today. The deck and cab of the truck remain in the same orientation, but the wheels rotate and the truck, itself, takes off crab-wise to what was the right or left.

You need to see it in action to appreciate the savings in time and space that some of our readers could realize. You can see for yourself at https://combilift. com/products/c-series/.

They are, admittedly, pricey, but certainly worthy of a cost:benefit analysis. Time and space are pricey, as well. I would be interested to hear your opinions.

All eyes are on the international stage this month, as U.S. President Trump readies himself for the first-ever summit between the U.S. and North Korea.

Trump is getting a lot of credit, and well he should, but there are other pieces of the puzzle.

MAY/JUNE 2018 2018 INDUSTRY MAY/JUNE 4 WOOD INDUSTRY

If we put ourselves in Kim’s place, we can see some salient facts.

First, following Kim’s last nuclear test, most observers suggest the inside tunnel(s) of the testing facility collapsed. This was followed by the escape of some radiation from the top of the mountain.

Since this mountain is on the border with China, two things are possible. First, Kim may no longer have a testing facility to decommission. Second, China may not want radiation floating across the border.

In either case, Kim may not have a program any longer, so may want to parlay and cut his losses.

Also, the treatment and death of U.S. captive Otto Warmbier did not play well, and China has enough to answer for on human rights without that. It is possible that Kim, seeing he still had three U.S. prisoners (not “hostages”), wanted to get them out of his hands fast, before something, even accidental, happened.

So Kim becomes all warm and fuzzy, and Trump can make a deal.

Taking a broader look, North Korea has been a primary supplier to Iran’s nuclear program. Therefore, if you look at the relationship in a trilateral sense, between North Korea, the U.S. and Iran, you can see that some of Trump’s accomplishments with North Korea are likely to affect Iran. Fissionable materials come to mind.

In that case, North Korea’s relationship with Iran may become a big liability in negotiating a “best deal” with Trump. And this may leave Iran a bit lonely unless Russia wants to stick its head up on its own instead of using Kim as a proxy.

With no friends and with newly reinstated sanctions enforced by the States, Iran may be a bit more reluctant to go using its own nuclear-testing mountain. It appears those things may be impossible to replace, and Israel seems both feisty and irked, and it has a history with nuclear mountains in Iran.

History teaches us that bullies disarmed become either submissive or suicidal. The mullahs could do either or both, all because of North Korea, and Trump will get all the credit.

At press time, Kim is threatening to kill the summit. This comes right after he was caught hiding nuclear weapons. Too late, in my opinion, but we’ll see.

Call me a cynic, but some things just tickle me.

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18

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LA FO

Constructive dismissal: The employee court of last resort

FIRING can

go both ways When a business is humming along, and workers are all pulling in the same direction, employers might never give a second thought to a disgruntled employee lurking behind a bench.

What did you do to cause such resentment? Was it a job reassignment? Or was a much-younger supervisor put in place that put a nose out of joint?

There are many reasons a business — your shop, even — might face a “constructive dismissal” suit by an employee. In a nutshell, this is when the employee is “firing” the boss, not the other way around.

According to Damien Buntsma, associate counsel, Miller Thomson of Vaughan, Ont., “there are two sides to what usually ends up in litigation from the employment side with respect to terminations.

“One is where the employer actively terminates somebody. You end up with a wrongful dismissal lawsuit. The other side of that is something that is usually much trickier which is called a constructive dismissal. So that is where things usually end up in litigation as well.”

MAY/JUNE 2018 2018 INDUSTRY MAY/JUNE 6 WOOD INDUSTRY

Bunstma notes that this is where an employee will say that he views that the employment contract has been breached or the employer has demonstrated that they no longer wished to be bound by the employment agreement.

Employment is a contract

But just what is an employment agreement? This can be a signed, written document, with the employee agreeing to show up at work at the time stipulated by the employer, and to perform the duties provided under the contract.

In turn, the employee would expect his pay, benefit and vacation time.

An employment agreement also contains implied terms that are recognized by the courts. “So implied terms in any contract would be the duty of good faith, honesty, to provide a safe and healthy workplace in accordance with their obligations under statute,” says Buntsma of the employer.

Cissy Pau, principal, Clear HR Consulting in Vancouver, B.C., has AWMAC (Architectural Wood Manufacturers Association of Canada) as a client, in addition to working with individual association members. “Typically,” says Pau, “a client will say ‘Jim’s just not working out.

We hired this guy to become the supervisor and want to

demote him to CNC operator. We thought he could be a manager but doesn’t really have that skill set.’”

Pau works with companies to figure out what to say and how to say it in these scenarios. “It’s often a very difficult thing for people to do because you’re telling a person ‘we don’t think you’re good enough at your job.’”

This is where a client will come to Pau and say, ‘what should we do?’ “We will say ‘have you spoken to them?’

Often, it’s no.

“If people aren’t happy, how could they not know? You have to expressly tell them that you should be advising the employee along the way as to whether they are meeting expectations or not. There needs to be some conversation around next steps, consequences or what your options are. Is it maybe a straight termination or is it do we want to demote, or is it something else?”

That is where an employer’s alarm bells should ring immediately, she says. “You, as an employer, cannot unilaterally change a fundamental term of their employment without their express agreement.”

There is a misconception amongst those who would seek to pursue constructive dismissal litigation, according to Ed Upenieks, certified specialist in civil litigation at Lawrences in Brampton, Ont. “Employees think that if certain things happen all they have to do is say ‘oh, that’s constructive dismissal’ and they can leave and get a package,” says Upenieks.

That is not how it works.”

change to salaries, hours or in job duties, according to Upenieks. “So, a small change isn’t sufficient.”

Tied in with change is the reporting relationship. “If you’ve gone from being the boss of 100 people and then having someone 20 years old as your boss and not having anyone report to you — that could be substantial,” says Upenieks. Geographical location, major change in working conditions or being put on probation without due reason are considered by the court. “If an employer makes some changes, it’s up to the employee to accept them expressly.”

Constructive dismissal can also occur after a series of acts by the employer. This is where the employer behaviour demonstrates to their employee they no longer wish to be bound by the employment agreement.

“That arises by employer’s conduct which makes the relationship completely intolerable,” says Bunstma.

“You, as an employer, cannot unilaterally change a fundamental term of their employment without their express agreement.”

More than hurt feelings

Upenieks notes that taking this route leaves the onus on the employee to prove just cause and pass the test in court. “The fact that one particular employee is hurt or feels hard done by is not an objective test,” says Upenieks. “The court always looks at what are the express terms of the contract.”

Whether written or implied, were the terms breached by the any changes? “It has to be a fundamental change,” says Upenieks. “Reporting to one different person doesn’t cut it. It has to be fundamental.”

What constitutes a fundamental change? Substantial

Ounce of prevention

Preventative measures certainly help to limit any chance of a constructive dismissal suit from an employee, all three agree.

“The easiest way to avoid it is to treat your employees with respect, honesty and good faith,” says Buntsma. “You abide by what would be the employment agreement. On a day to day basis, you do not change the terms and conditions of employment — that you understand what you contracted for in the relationship and provide that to the employee.”

Pau is continually counselling her clients, whether they have 5, 50 or 100 employees. “We help them develop policies and processes and systems to manage their staff,” says Pau. “It could be for specific policy requirements like creating a policy manual or helping them figure out how to pay their employees properly.”

Clear HR Consulting often will recommend to clients they seek legal counsel on issues like termination or accommodation for disability. “We understand the legal context, but its more how to make processes work internally,” Pau says. “How do you set expectations with your employees? Do you have job descriptions? Do you know how to tell employees what you expect of them? What do you say if they are not working out?

“Those things I think a lawyer can provide informawww.woodindustry.ca www.woodindustry.ca

INDUSTRY 7 WOOD WOODINDUSTRY

Constructive dismissal tion on the legal context but not on the day to day operation of it.”

Managing employee absences, progressive discipline, coaching and performance management should all be done in accordance of the employment agreement or the statutory obligations that the employer has, according to Buntsma. “Your HR department — if you have one — is essentially the face of your organization towards its employees and the obligations towards them,” he says. “Their role is the most important role within the organization in order to avoid such things as constructive dismissal. A lot of times what you need to have is a strong HR professional that is coaching management on its obligations. And making sure that those obligations are met.”

It’s time for pros

When there are any questions or doubts as to how to deal with employee discipline or a problem employee that is dealt with through HR, it should then be followed-up by the employer through a human resources professional or through legal counsel. Bunstma recognizes that not all

shops can afford an in-house HR professional, so he recommends finding an HR consultant and labour and employment lawyer.

“Both exist within the same world,” says Buntsma.

“HR consultants can be brought in and exist within the same world and deal with less complex day to day operational matters and then they advise employers on how to deal with those. In more complex organizations that have significant employee issues they should engage legal counsel. Before any employee issues are dealt with improperly by the employer that could cause any constructive dismissal claims, they should consult with an HR consultant or legal counsel.”

Upenieks observes that courts in Canada are slanted in favour of employees as opposed to employers. “Employers with 5 to 100 employees should have a regular lawyer, a corporate lawyer or trusted advisor in any significant situation,” says Upenieks. “But I think they should contact the lawyer just so that they can find out if what they are doing is offside or if it will have unwanted consequences.

“Obviously, employers are concerned about legal costs and law firms are mindful of them. Often you can save yourself a lot of grief and a lot more lawyer’s fees if you take the time to make the call first.

“It’s basically preventative medicine.”

Comment at www.woodindustry.ca

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Filings WOOD Roseburg completes purchase of Pembroke MDF

Springfield, Ore.-based Roseburg Forest Products has completed the purchase from Pembroke MDF, of Pembroke’s medium Pete Hancock density fibreboard (MDF) plant and molding production facilities located in Pembroke, Ont. Roseburg has also announced that Pete Hancock has accepted the position of Roanoke Timberlands Manager, effective May 7, 2018. In this role, Hancock will oversee the day-to-day harvest and land management activities on Roseburg’s 158,000-acre fee land base in North Carolina and Virginia. Hancock will be based in North Carolina and report to both Gabe Crane and Phil Adams.

Loewen gallery re-opens after extensive restoration

The Historic Gallery at Loewen Windows and Doors in Steinbach, Man., has re-opened after extensive restoration and improvements to the front showroom area after storm damage. Filled with photos and memorabilia from the past 112 years of the wooden windows and doors manufacturer, the gallery shows Loewen’s journey from its beginnings in 1905 producing church pews and beekeeping equipment, through all its milestones and achievements

10 WOOD INDUSTRY

MAY/JUNE 2018

to become the company that it is today. Among the first generation of Loewens born in Canada was a son, Cornelius Toews Loewen, with a fourth generation poised to continue.

Axyz International acquires WardJet

Burlington, Ont.-based Axyz International, a manufacturer of CNC router systems and CNC knife systems, has announced the acquisition of WardJet, a Tallmadge, Ohio, firm that manufactures waterjet cutting machines and offers custom waterjet solutions to a variety of industries.

WardJet products will continue to be made in the U.S. at its Ohio facility and will now be supported by Axyz’s global network of sales and support offices. Richard Ward will retain the title of WardJet president of the business he founded 23 years ago.

Canadian industry applauds CP-TTP

The Forest Products Association of Canada (FPAC) of Ottawa, Ont., predicts better access to key global export markets, especially in Asia, with signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The remaining members of the CPTPP — Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – agreed to a revised trade deal after the U.S. abandoned the agreement. The FPAC expects the following reductions in tariffs on Canadian wood exports: 31 percent tariff to Vietnam for certain kinds of wood, going down to 0 percent starting Year 1 of the agreement; 40 percent tariff to Malaysia for plywood, down to 0 percent by Year 6. 10 percent tariff to Japan for wood products, going down as low as 5 percent in Year 1 and 0 percent as early as Year 11.

McFeely’s and Festool end 20-year relationship

Following the sale of Harrison, Ohiobased McFeely’s assets this past summer, new management started an immediate review of all strategic business relationships and vendors. During this time, the company states, the new private ownership has brought back discontinued items, replenished inventories, lowered many prices and made investments in technologies to improve customer service, security and vendor relations. Historically, the company states it was one of the first dealers in the U.S. of Festool products, states McFeely’s, but it found the business philosophies were headed in different directions. As a result, McFeely’s states it had no choice but to sever business ties with Festool after 20 years.

NKBA Thirty Under 30 nominations open

Hackettstown, N.J.-based National Kitchen & Bath Association has announced that nominations are open for its Thirty Under 30 Program created to celebrate young professionals who possess the passion, creativity and brilliance to be the voices of the next generation of kitchen and bath experts. Those selected will be honored at the Kitchen & Bath Industry Show in Las Vegas, Feb. 19-21, 2019.

To be eligible for this honor, individuals must be working in the kitchen and bath industry in any capacity, from designer or remodeler to retailer, marketer, manufacturer or another business role. They must be born after Feb. 19, 1989, interested in furthering their career in this field and be supported by their current employer to participate in the program.

Most importantly, the association says, they must be outgoing and have demonstrated their energy and enthusiasm for this industry. For more information, go to bit.ly/2q2qUuZ.

Trade contractors encouraged by legislative progress in Manitoba

The National Trade Contractors Coalition of Canada of Ottawa, Ont., has voiced its support for the advance-

ment of prompt payment legislation in Manitoba. Manitoba Prompt Payment (MBPP) has driven support of Bill 218, The Prompt Payments in the Construction Industry Act, which was passed recently at second reading in the Manitoba Legislature. MBPP, a coalition of 29 construction unions and associations in the province, has led an effort to see legislation introduced. Payment delays are widely recognized as the most significant barrier to business growth and success by trade contractors and suppliers.

In Canada, trade contractors complete over 80 percent of the work done in the construction sector. Delayed payment limits their ability to make competitive bids on new projects, hire staff, train apprentices, and invest in capital goods.

As a result, efficiency drops across the sector and the consumers and business that need to build end up paying more.

Best Renovation $75,000 to $150,000.

Design credit goes to HSK Design of Toronto. The Best Renovation Under $75,000 was awarded to Torontobased Bramson Construction. Urbanline Architecture, also of Toronto, won the Best Renovation $150,000 to $300,000 award. The company also won for Best Renovation $300,000 to $500,000, for the transformation of a mid-size, three-storey house. Design credit for both projects goes to Urbanscape Architects in Toronto.

Lewitt Construction of Toronto won the award for Best Renovation $500,000 or more, for the conversion of a 1920s house. W.C Meek Design and Construction of Scarborough, Ont., won the award for Best Condominium Renovation. SevernWoods Construction of Toronto was presented with the Best Custom Home award for creating an architecturally significant home that will provide comfortable living spaces for family life and large events.

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See us at IWF 2018

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WOOD INDUSTRY 11

Filings WOOD Altendorf Group acquires Hebrock

Minden, Germany-based Altendorf Group, manufacturer of sliding table saws, has acquired Maschinenbau Hebrock, a family-owned manufacturer based in Bünde, Germany, as well as EBM Maschinenbau of Hüllhorst, Germany. Hebrock has developed and manufactured edge banding machines

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since 1980, with distribution channels in over thirty countries. The purchase price of the acquisition is subject to a confidentiality agreement.

HNI chief executive to retire, new president announced

Muscatine, Iowa-based HNI Corp. has announced changes to the contract furniture manufacturer’s executive staff. Stan Askren plans to retire as c.e.o. and chairman by the

end of the year, while the company announced the promotion of Jeffrey Lorenger to president, and his election to the company’s board of directors.

Stan Askren Upon Askren’s retirement, Lorenger is expected to be promoted to c.e.o. Lorenger joined HNI in 1998 and has held multiple executive level positions including: president, Office Furniture; president, Contract Furniture Group; resident, Allsteel; vice president, sales and marketing, The HON Co.; and vice president, general counsel and secretary for HNI. With sales of $2.176 billion US in 2017, HNI brands include Allsteel, HON, Gunlocke, Lamex, OFM, HNI, Lamex, Maxon, Heatilator, Heat & Glo, Vermont, Quadra-Fire, Harman, Monessen and Fireside Hearth and Home.

Egger breaks ground on North Carolina office

Egger of Lexington, N.C., has broken ground on its North American corporate offices in North Carolina’s Davidson County. The office building, which is scheduled for completion in early 2019, will house Egger’s North American future office staff. This building also lays the groundwork for future plant operations, which includes a particleboard manufacturing plant. Construction of the plant is expected to start at the end of 2018 and production at the future facility is slated to begin in 2020. The company also plans to establish a training center at this location to train and grow skilled workers in the region.

Homag and Kuka enter strategic partnership

The Homag Group and Kuka signed a strategic partnership agreement at the Holz-Handwerk 2018 trade fair in Nuremberg, Germany. The Germanybased companies from Schopfloch and Augsburg, respectively, have agreed to

12 WOOD INDUSTRY

MAY/JUNE 2018

cooperate on global development projects. Two such projects have already been launched in China and Germany.

The aim of the partnership is to join forces in developing smart robot solutions and selling them worldwide. The collaboration is said to benefit from Kuka’s broad experience gained in different sectors in the field of robotics and from its network of certified partners located around the world that not only program its robots but also integrate them at customer sites.

In other Homag news, the company has announced a new product-brand identity across all new products, as well as consistent product names designed to help customers easily identify the correct machine for a specific need. In the spring of 2017, the company combined its existing brands, including Weeke, Holzma, Butfering and Brandt, under the unified Homag name. Using this new naming structure, each machine name will reflect the function it performs. For example, all edgebanding machines will be known as Edgeteq, while their line of panel saw technology will adopt the name Sawteq. More about the new Homag identity will be announced in August at the 2018 IWF trade show in Atlanta, Ga.

within, according to president and founder Luke Psarianos. Appointments include: Demetri Psarianos, promoted to executive v.p. of operations and corporate affairs — interim; Thomas Psarianos, seasonal employee responsible for procurement of materials, logistics, and scheduling; Penny Psarianos, executive assistant to the president and accountant, board member/partner; Nilton Bernal, aesthetics and project finishing coordinator with 25 years as

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WOOD INDUSTRY 13

Law WOOD It’s never too early to incorporate

Own a start-up?

I

t is no secret that Canadians have been caught up in the start-up culture that has emerged across various industries. According to Innovation, Science and Economic Development Canada’s small business statistics, there are Munish Mehta just over 1 million small businesses across the country, which employ approximately 8.2 million people that constitute 70.5 percent of private sector employment.

Within Canada, the proportion of businesses that are high-growth enterprises is 7.4 percent (based on revenues). Rapid growth and access to technology has enabled Canadians to think outside the box and to develop new products and services that improve the lives of Canadians.

Entrepreneurs are working with their start-ups on either a full-time basis, or part-time basis while continuing their current employment.

Entrepreneurs are initially concerned with funding, gathering information and understanding how to market their product or service.

However, another aspect that entrepreneurs must consider is the appropriate business structure for their start-up. The three most common business structures are sole proprietorships, partnerships and corporations.

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Sole proprietorships are formed, intentionally or by default, when an individual starts to operate a business without any other legal structure in place. A sole proprietorship is carried on by a single individual.

A partnership is an economic activity carried by two or more individuals with the expectation of earning profit. The obvious difference between those two business structures is the number of individuals who are involved in the business. It is possible for either of them to exist, even without formal registration. That being said, a business name will have to be registered if the business is carried on using a name different from the names of its owners.

On the other hand, a corporation is a separate entity with formal legal requirements. This is a crucial difference between a corporation and the two less formal business structures mentioned above. Anyone who wishes to carry on a business through a corporation is required to file articles of incorporation with the government’s corporate registry to form a corporation. A corporation can be registered provincially or federally. For example, a for-profit business that will operate primarily in Ontario will register under the Ontario Business Corporations Act (“OBCA”), while one that will operate in various jurisdictions across Canada would likely incorporate under the Canada Business Corporations Act (“CBCA”). A corporation may also be required to register extra-provincially, if it carries on

business in a province other than the province in which it is incorporated.

When making a decision on whether to incorporate, there are many issues to consider across a broad range of factors. In considering the issues, you will need to consult with an advisor in areas such as law, tax and other disciplines, as required based on the specific circumstances of the proposed business venture.

That being said, there are some broad considerations that must be addressed as a preliminary matter, which include liability, tax and structural implications distinct to a corporation.

Limited liability

Starting a business is a risky endeavour. Start-ups often fail or, if they succeed, have difficulty growing in the first few years of business. Startups heavily rely on the support and collaboration with investors, suppliers and creditors. However, many entrepreneurs are reluctant to leverage their personal assets to finance initial business expenses. A sole proprietor has unlimited personal liability for the debts and obligations related to the business. For partners, that exposure applies to each partner and each is liable for the obligations of the business received by each of their partners.

One of the benefits of incorporating a business is that it limits the liability to the individual owner (called a shareholder). A corporation is a separate legal entity. A corporation can apply for loans, own assets, issue equity or otherwise enter into contracts for which it is legally responsible. If a claim arises, a claimant must seek recourse directly from the corporation.

This shields shareholders personally from such claims. If a corporation loses value, shareholders will likely not lose more than their investment.

A shareholder would not be liable for a corporation’s debt unless the shareholder, for example, provides a personal guarantee.

Tax implications

Another major difference is that business income is taxed as part of the sole proprietor’s or partner’s personal income while the corporation is a separate tax payer for the business income.

Furthermore, corporations often enjoy a lower tax rate and have opportunities to defer tax. The Canadian government incentivizes some corporations with lower tax rates in order to promote business venture and activity. For example, the small business deduction is a valuable tax savings measure for new businesses.

The small business deduction can reduce the federal tax rate on the first $500,000 of active business income each year to approximately 10 percent for a Canadian-controlled private corporation (CCPC). This encourages corporations to retain and reinvest the income saved from taxes on active business assets, such as equipment, which can help generate growth and create new jobs.

The tax implications for each corporation is different and can change.

For example, the government recently proposed changes to the rules for taxing passive business income, which may gradually eliminate the benefit of the small business tax rate on active business income based on the amount of passive investment income a corporation earns. These changes may even cause entrepreneurs to defer incorporating a business and continue with a sole proprietorship or partnership. Accordingly,

it is best to consult a tax advisor to determine if incorporating is an appropriate tax-saving strategy for the business.

Corporate structure

Another benefit of incorporation is that it assists a business in setting out the parameters for its corporate structure and management. The process of organizing the corporation is usually done in conjunction with incorporation. For example, the initial organization of the corporation includes appointing the corporation’s directors, officers, accountants, and establishing a date for the corporation’s fiscal year end.

Additionally, the corporation will adopt bylaws that set out, for example, the term and role of the directors and officers, the procedure for shareholder and director meetings, and protocols for the conduct of the affairs of the corporation. The bylaws can be revisited and amended from time to time. As a separate legal entity, a corporation can continue indefinitely, regardless of the changes in the corporation’s directors and shareholders.

Also, annual shareholder meetings for the corporation’s shareholders and directors are mandatory under the CBCA and OBCA. The meetings provide an appropriate opportunity for shareholders to approve financial statements and analyze the economic strength of the business. Shareholders can also elect new directors at an annual meeting.

Conclusion

The above-mentioned implications are not meant to be an exhaustive list of considerations when deciding whether it is beneficial or the right time to incorporate.

For example, incorporating can offer flexibility in financing. If the business requires costly assets for their operations, entrepreneurs should consider the benefits of applying for loans or raising equity through a corporation. Furthermore, sole proprietors and partners might determine that it is a good idea to implement a rollover by transferring their business assets to a corporation. That being said, entrepreneurs would need tax advice to get a better understanding of the benefits of a rollover.

When starting a business, entrepreneurs should carefully assess which business structure is appropriate for accomplishing their business goals and objectives. Accordingly, it is best for entrepreneurs to consult with a legal advisor to fully understand which business structure will most benefit their business.

Munish Mehta is a corporate and commercial lawyer at Lawrences Lawyers, Brampton, Ont. Comment at www.woodindustry.ca.

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WOOD INDUSTRY 15

PROFILE: Loewen Windows and Doors, Steinbach, Man.

ARCHITECT-READY Windows respond to high-end market demands

When architects want to wow a high-end budget client, giant windows and craftsman doors can make a satisfying statement about status, taste and function.

Loewen Windows and Doors of Steinbach, Man., has been working with wood for over a hundred years when the original Loewen family business made church pews and beekeeping equipment for Manitoba farmers.

Today its high-end products are specified by architects in stately homes across North America.

Clyde Loewen, senior vice president of product and marketing, grew up in the business’s multi-generational environment. “Saturday mornings when we weren’t in school, we could come and make a nuisance of ourselves in the shop,” he says. “It was typical back then that the drumbeat of work, the shop and the lumber yard — which is where this came from — there would be a five-day work week plus Saturday morning.”

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Loewen had several older brothers who found their way into the business before he came of age, so his path was already well worn. “I was a younger brother and wasn’t expected to lead since there were already people there.

My father headed the company until he passed away quite suddenly in the mid-’80s.”

Loewen’s path around that time was to take a couple of years business school, and then found that he was more interested in the science and technology. “I switched over to science and got a physics degree. Of all non-practical things!”

His Master of Physics degree studies were cut short when the father passed away. Loewen decided to come back and join the company with his technical science background, knowing he had other people leading the company already. “It was kind of practical for me to get into the product development area,” says Loewen.

After a couple of years in the Calgary branch location to learn the business, then close to three years in

Toronto where the company did final assembly, Loewen also learned customer service in that market’s then small operation. Combining a business and science education, along with his work in branch locations, he returned to Manitoba in the fall of 1990 to head up the product development area.

“The product area has been my home base ever since,” says Loewen.

His background made him a natural for technical areas like quality and engineering, where he led a project to implement an MRP system. “I found it is a challenge because typical technical people don’t really like the marketing side that much because it’s sort of soft.”

Juggling responsibilities is a challenge, Loewen says, because “you have to make stuff that people want to buy.

You can’t just design stuff that’s really cool. There has got to be a demand for it. You have to keep up with trends and you have to keep up with what the other competition is doing. You are sort of blending an art and science that way — which I find interesting.”

In the mid 1980s when he started, the

As a company with over 100 years of wood industry traditions, Loewen has refined its mandate to specialize in a less-crowded marketplace. The semi-custom nature of its production has proven resistant to automation, but the company is committed to exploiting advanced technologies wherever it can, including 3D printing to experiment with window rail systems (round inset left).

company was almost a regional Canadian provider of windows and doors. “Before that we would have been very Western Canadian focused. Then we went into Ontario in a bigger way and opened up a Mississauga operation in 1988.”

With the North American Free Trade Agreement in place, the company found that tariffs weren’t a big thing in its industry. “It was sort of a signal that there was a whole U.S. market that we found our product was very well suited to,” says Loewen.

“We made a product that was robust and had triple glazing for the Canadian market already. We had already used Douglas Fir as our base wood species. We found that that all added up to a real kind of quality higher end presence in the U.S. almost by happenstance. And it was not a bad time for the Canadian dollar back then.”

When eyeing the U.S. market

through the 1990s, Loewen found a whole bunch of different window companies all serving the same market. It turned out that the luxury or the highend market was where the company was ideally suited to occupy.

But Loewen still had to develop some products for the U.S. market.

In 1990 it didn’t have a double hung window or a terrace door, so the company developed those in the very early 1990s for the U.S. market and started down a strong growth track.

“We weren’t necessarily what we call really high end or luxury,” says Loewen. “We were really good value and started developing more and more into that really higher end market.

Some other companies had that perception, but it wasn’t a well identified market at that time.”

During that time the PVC segment was starting to grow and really take

hold, according to Loewen, “particularly in Canada where it has become to dominate the middle end segment and now it’s the material of choice for the track or housing market. It has happened in the U.S. as well.

“There is still this core higher end market in the U. S. that is attracted to the warmth and beauty of wood. That is our niche — we don’t make a PVC product.”

There are challenges working at the top end of the market for the company, in particular because it is dealing with people who want something very specific for their home. “Almost always with our company and our portion of the market means dealing with an architect,” says Loewen.

“Architects want to make their own specific statement and their clients want that. They often want what a lot of people would call custom or very high choice. We consider those slightly different. High choice would be maybe a lower end producer who would offer two or three finishes and hardware.

We may offer six or seven painted, oil rubbed bronze, a solid brass, a brushed steel, a brushed chrome, polished chrome. That’s an example of high choice. Those are all standard choices, but you need to offer all of them.

“A lower-end producer may have five colours of cladding, painted cladding finish. We will offer more than a dozen plus many more architectural or custom colours as well as anodized finishes. Most of those are standard but very high choice.”

To accommodate the choices, Loewen’s operation needed to facilitate it. “In terms of wood processing,” says Loewen, “rather than having one or two widths of muntin bars on a window you might have four different widths and three or four different profiles in those widths. Those bars need to be fitted and have quite high tolerances for the fit and finish of those profiles — how they fit the sash and so on. Those are all high choice.”

But the line is crossed into custom when someone says “I don’t like that. I don’t like any of your standard choices,” Loewen says. “I want the one that my architect has designed and or I want you to replicate this 1863 original home www.woodindustry.ca

WOOD INDUSTRY 17

Clyde Loewen, senior vice president of marketing and product development, with one of the company’s 3D printers that assist in speeding up product development. His formal education at university studying both business and physics has provided a unique position from which to address marketing and manufacturing challenges. that was on my property and it had this.

Will you do this? That is pure custom.

“You couldn’t predesign it because you didn’t know what they were going to ask for beforehand.”

As a result, the company has found it tough to automate choice within a standard production line. “It just complicates each step of that production line,” says Loewen. “That’s why you fill it in with manual processing a lot of the time.” On top of that, the company’s business is still a seasonal one where it needs to manage its labour force accordingly. “But there is only so much you can do.”

Nevertheless, the company has invested fairly heavily into CNC equip-

ment in the last couple of years. “We could do a lot more and will do more. You have got to make sure there is a payback and make the equipment work for you.”

The need for new product development is constantly on the mind of Loewen and his team. “We feel we need to improve product category X. It’s time for a new casement window because the old chassis needs to perform better or make it more efficient to produce. Incorporate this feature or that feature. That sort of thing. The ideas from that would come from looking at market trends, what your competitors are doing.”

With everyone in the industry being aware of what the others do, it is often

difficult to tell whether something is a trend or a fad, and some of them have longer life cycles than others. “Colours can come and go,” says Loewen. “They can be hot for two years and then go away.”

To help them quickly investigate new ideas, the company has also invested in 3D visualization design software and 3D printers. “We use our 3D printers for design work to either demonstrate or actually work through designs to see if they will work, such as for components of a window system where you’re problem solving. The other use we have is for actually producing components that are required for special applications where it doesn’t pay to get an actual injection die mold.”

Pressures come from dealers, architects and designers that tell the company what they would like to see.

“You listen to the designers because they have things they would like to accomplish for their clients,” says Loewen. “But you need to always make sure that you can be profitable in meeting those needs.”

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Design WOOD Designers must see the trees for the forest

Oblivious I

really like maple trees, but the tree that I’m the most familiar with is actually the most common tree in Canada, the Populus tremuloides, more commonly and (apparently) more properly known as the quaking aspen.

We just called it the poplar.

Why not? It was the most common tree, Paul Epp and why give it a fancy name?

Poplar is the most common deciduous tree in North America, although it’s most commonly found in the colder areas, which, of course, is most of Canada, especially the boreal regions.

There weren’t so many species of trees in Northern Alberta, so we didn’t need a guide book or Latin nomenclature.

We had the common and even ubiquitous poplar and where it was wetter, we had the other poplar, the Populus balsamifera, popularly known as the black, or water, or balsam poplar, with balsam being the most correct, but who cared? It was the tree that grew near the creek. If you were from Europe, you might call it the black poplar,

which is a European tree that it resembles. I liked the sound of balsam, and the occasionally heard Balm-ofGilead, which may not have been 100 percent correct for the tree, but it sounded good. I also liked its smell and the white, cotton-like fluff that filled the air in early summer. I liked the other poplar for how the leaves rattled, especially just before it rained, showing their pale undersides.

Apart from those two deciduous trees, we had the spruce. That was it: the spruce. No fancy distinctions for this tree, either. It gives a wonderful green backdrop to the bright yellow poplars in the fall. And it was a much more valuable tree, in that it made good building lumber, or at least it was the best option from among very few, up there in the bush.

Somewhere along the trajectory of my education, I learned that Canada had two kinds of spruce trees in the boreal region. (There are other types in other areas.) The white and the black. Huh? I thought all spruces were just green. But no, there are two versions of this common tree where I lived, in the north. The Picea glauca, the white spruce, is the most common and is the one I thought of when I thought spruce. The other,

Picea mariana, the black spruce, was around, but what distinguished it? I couldn’t tell. Until I could.

Last spring, I drove across Canada, east to west, with my most eastern point of departure being Burnstown, in the Ottawa Valley. From there, it doesn’t take long to get into serious northern terrain. I soon saw a lot of spruce trees. Rocks and lakes, too.

Early spring is a good time to look at spruce trees because the poplar leaves haven’t gotten in the way yet.

And here was the distinction: White spruce are more pyramid shaped in outline and their branches are straighter. In contrast, the black spruce is closer to being parallel sided in its outline, with shorter branches that remain more uniform in length as the tree grows upwards.

And these branches are often a more sinuous form, dipping down before turning back up. And another difference is that the black spruce are usually found were the soil is wetter, so along the edges of water, or in swamps. Bingo. It was obvious.

So what does this have to do with design? Well, quite a bit, I think. It reveals to me how easy it is to be oblivious. We typically take things as they are brought to us. We call the trees what our parents called them, and usually without inquiring why. And I don’t think that designers can afford to do that. We need a much sharper and knowledgeable perception and also a deeper database. We’re doing a serious job, and lots of people are depending on us, in one way or another. What I’ve just described about the trees I know best probably doesn’t matter at all. But what it reveals about how easy it is to be complacent does matter. Designers can’t know too much. Everything is related to everything and the more we know, the better we are able to fit things together.

So, there you have it and here’s the lesson: pay attention!

Paul Epp is an adjunct professor at OCAD University, and former chair of its Industrial Design department. www.woodindustry.ca

WOOD INDUSTRY 19

Digital WOOD Planning resource from outer space

Is ERP for me?

T

here comes a time in any manufacturer’s journey where the factory he or she gave birth to grows to become an unwieldy, out-of-control, tangled mess.

Where it once was so easy for one person to know what inventory was in stock, who was working on what project and which Alain Albert customer had paid their bills, there now is only missed deadlines, declining productivity and more people seemingly in control of nothing at all.

At this point, nobody would be faulted for thinking that the solution might lie in a sophisticated computer software that could manage all aspects of their business and control the everyday minutiae of a production environment with the precision and efficiency that computer algorithms are well-known for. A sort of digital factory overlord is what we might yearn for.

This software that purports to be the savior of the small manufacturer growing too fast for their own sanity has a name or rather an acronym; ERP which stands for “Enterprise Resource Planning” which doesn’t say much so let’s go back a few decades.

In the 1960s, MRP (Material Resource Planning) was developed to supply the American space program and it eventually branched off to be used by

20 WOOD INDUSTRY

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the manufacturing industry. Black and Decker was the first manufacturer to use MRP to make sure that there was enough inventory of raw materials on hand for production and also that there were enough finished goods in inventory for customer orders. By 1975, 700 companies were using this high-tech management software.

In the 1980s, with the introduction of personal computers and a growing threat from Japanese manufacturing efficiency resulting from Lean Manufacturing, MRP evolved to become Manufacturing Resource Planning.

Now, MRP version 2 was able to do more than just manage inventories.

Manufacturers could schedule production resources based on machine capacity and worker availability. As MRP continued to evolve, it started incorporating applications for managing other components of the manufacturing value chain such as sales and accounting. MRP became ERP (Enterprise Resource Planning) to better describe the role it played in the management of all the departments of an organization.

If you are running your company using several different software systems to manage the various aspects of your business right now and lots of resources are wasted on double entries, erroneous data, missing information and if your sales and customer relations are suffering, then perhaps you are a good candidate for ERP. Remember that ERP is not a substitute for proper business processes.

If you don’t currently have robust business processes in place, then you need to go back to the basics and work on these processes first.

At the heart, ERP is a suite of many distinct softwares that share a common database, and it receives input from all areas of an organization, analyzes this data and presents it back to the users in a useful way. The software still needs you to capture the data and perform actions based on the calculations.

Most of the processes that are essential to running a business have their respective software module in a modern ERP. Here are a few examples: • Marketing: Marketing Automation, Email Marketing, Events, Surveys, Social Media • Communications: Discussion Boards, Forums, eSignature • Human Resources: Recruitment, Employees, Fleet, Leaves, Appraisals, Reviews • Manufacturing: BOM, MRP, PLM, Equipment, Quality, PMMS • Operations: Inventory, Timesheets, Projects, Purchase, Helpdesk • Finance: Accounting, Invoicing, Expenses • Sales: CRM, Point of Sale, Sales, Subscriptions • Website: Website Builder, eCommerce, Blogs, Forum, Slides, Live chat, Appointments While this class of software sounds like a must-have for any manufacturing operation, a great deal of caution must be exercised. Implementing and administering an ERP system is not easy and will require a great deal of resources and time.

I have personally seen many companies who have successfully implemented ERP and who have benefited immensely from the exercise but there are also some who, for many reasons, weren’t so lucky and the implementation failed miserably.

Implementing an ERP solution is a process that will take you a minimum of several months and up to a couple of years. You need to be ready and committed to making this happen.

Here are some of the elements that can help in a successful ERP implementation: • The typical wood manufacturing company ready for implementing ERP has annual revenues in the range of 3 to 5 million dollars and up, and employs at least 15 to 20 people.

• Do your homework, evaluate your needs diligently, hire an experienced consultant to guide you and expect to spend a great deal of time on the planning stage.

• Name a champion for this project and give them a budget, clear goals and the authority to make tough decisions.

• Make sure your existing processes are working properly and that the data that is available is clean and relevant. ERP requires a great deal of data, business intelligence and input from various sources within the company.

• Commit to training your staff.

ERP is likely to be very different

from the way everyone is used to working now, and proper training is always the best way to get everyone up to snuff quickly.

good example and while the two can certainly co-exist, mixing them together requires a good amount of balance and restraint because both aim to achieve the same goal using two opposing approaches. ERP is a top down approach based on forecasting, collecting, and managing inventories, while Lean favors worker-led initiatives pulling flow from actual customer orders with no or very little inventory on the floor.

In both cases, after expending wads of cash, buckets of sweat and a great deal of time, you can expect to come out the other end a shiny, efficient and profitable, new manufacturer.

Given lots of planning and hard work, most ERP implementations are successful and result in more efficient business processes and more consistent and accurate data being available in real time to users. At the very least, it paves the way to improved productivity through a more streamlined purchasing and scheduling process.

Customer service will improve, and simpler reporting will become the norm which leads to better communication and more profits.

Professionally trained in architecture, Alain Albert has worked in wood as an entrepreneur, in production management, in design and as a digital manufacturing consultant.

Contact: aalbert@wimediainc.ca.

For the rest of us manufacturers out there who are still too small or simply hesitant to invest in yet more complex software requiring more data collection, more reporting, and bar coding, there is a lot of work that can be done in preparation for or as an alternative to ERP. Lean Manufacturing is a

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Xylexpo ’18 welcomes the globe Xylexpo, the biennial international exhibition of woodworking technology and furniture industry supplies, celebrated its 26th edition and 50th anniversary this spring.

Held at FieraMilano-Rho trade fair grounds from May 8-12, 2018 in Milan, Italy, the show attracted 17,781 industry professionals, 2.1 percent more than the previous edition. Among them, 5,032 came from abroad, 28.3 percent of total attendance, according to organizers of the show.

The Italian Trade Commission based in Toronto, Ont., sponsored a Canadian delegation of machine tool distributors and wood shops to visit the fair in search of new business and efficiency opportunities, respectively.

Wood Industry magazine Xylexpo trip draw contest winner Manuel Garzitto of Mosaic Millwork in Surrey, B.C., himself of Italian heritage, was looking for ways to make his 11-man shop more productive. Scott Eagles, general

manager at Dieppe, N.B.-based Triangle Group, was investigating clamping systems in particular, as well as other ideas to improve his cabinet manufacturing business. Distributors Normand, CNC Automation and Continental Machinery included in the delegation sent staff representatives from their respective companies.

These distributors have been continuously committed to presenting Italian machine builders for the wood industry in Canada such as Fravol, Omal, Scm, Omas, Pizzi, Bonacin, Cefla and Omc Machinery.

Other Canadians made the trip to Xylexpo, including Ricky and Jason Pollak of Servi-Tech Prestige of Laval, Que. Their mission was to solidify relationships with Fimal/Paoloni and Tecnoma (see sidebar).

The health of Canada’s wood industry was also under-

Servi-Tech takes on worldwide Tecnoma parts distribution Laval, Que.-based Servi-Tech Prestige R.T. has become the worldwide parts distributor for all generations of Tecnoma edgebanders.

The company had been the official Tecnoma spare parts distributor for North America since 2013. “This transaction came about when the owner of Tecnoma, Ezio Stefani, decided to retire and approached us to acquire all his assets and take over distribution worldwide,” says Ricky Pollak, Servi-Tech president and owner. According to Pollak, the assets arrived in late 2017 on container ship from Italy. The Tecnoma website now automatically transfers inquiries to Servi-Tech. “We have acquired Servi-Tech’s Ricky Pollak (left), and v.p. Jason Pollak. a large inventory of spare parts in this transaction in order to support the demand of over 400 machines Canada-wide and over 2,500 machines worldwide,” says Pollack. The company is also in constant contact with the spare parts manufactures in Italy to continuously replenish stock.

Also, since 2013, Servi-Tech has partnered up with Fimal (Paoloni) of Fano, Italy, and is the official promoter, seller and servicing agent of all Paoloni machines and spare parts in Canada.

MAY/JUNE 2018 2018 INDUSTRY MAY/JUNE 22 WOOD INDUSTRY

HE AVY DUTY SC RE W POC KET M AC HINE Safety Speed Manufacturing is pleased to announce the introduction of the SPM301HD Screw Pocket Machine.

Augmented reality eyewear system for remote technical support from Scm was recognized by the XIA-Xylexpo innovation awards jury.

scored by one Italian machine-tool builder that shared its intention to enter the Canadian market in 2018 — with a possible official announcement to come at the IWF show in Atlanta, Ga., this summer.

The dates of the next Xylexpo have already been fixed: Monday 25 to Friday 29, May 2020, changing the 3-14-18-hfpg-epilog-WoodIndustry.pdf 1 3/14/2018 11:50:08 AM traditional Tuesday-to-Saturday timeframe.

The SPM301HD showcases an all-new heavy-duty, direct drive continuous electric spindle motor for those jobs that just keep on coming. Just like your CNC spindle, this motor runs continuously with little maintenance required. The new pilot air drill and high end spindle cutter produce superior lowangle 6 degree screw pockets.

LOOK FOR US AT IWF BOOTH # 6013

NEW

HEAVY DUTY SPINDLE MOTOR

MADE IN THE USA

FEATURING: • Direct drive continuous electric spindle motor.

• Smooth mechanical controlled action vs. pneumatic.

• Half the cycle time compared to other machines on the market.

• Easy adjustment dial for cycle speed for different wood species.

w w w.safetys peed.c o m • 800.772.23 2 7

www.woodindustry.ca www.woodindustry.ca

INDUSTRY 23 WOOD WOODINDUSTRY

WOOD

New Products Hex and square drive socket-ready impact driver

The model GDX18V-1600 18V socketready impact driver from Bosch Tools is a two-in-one tool said to switch quickly and seamlessly from a ¼ in. quick-

change hex shank to ½ in. square drive.

The cordless driver delivers up to 1,600 in.-lb of maximum torque. It pairs a cordless motor with a hammer-and-anvil system to deliver up to 3,600 bpm (blasts per minute) performance. The four-pole carbon-brush motor also delivers greater efficiency in battery usage, the company says. The unit weighs 2.7 lb (tool only, not including battery). It features a soft slim-grip handle and nonslip housing for added user protection in use. The tool also has a head-mounted LED system to light areas with poor illumination. www.boschtools.com

Power access for under desktop usage

Double-end tenoner dedicated to processing cabinet doors

SCM has introduced a new model of double-end tenoner for the processing of cabinet doors, drawer fronts, solid wood and MDF tables. Said to combine flexibility and productivity in the smallest possible space, the Celaschi cp double-end tenoner is designed to reduce the time of emptying the machine to maximize productivity, even in presence of small batches. The unit has 60 percent machine length of the corresponding Celaschi p60 model, with all the technology. The new tenoner has different modular configurations, ranging from 2 to 8 operating units per side, has a maximum workable size 3600 mm, minimum workable size 190 mm, feed speed up to 36 m/min and positioning speed of the movable beam of 12 m/min. www.scmgroup.com

UTMA P20 CNC Profile Knifer Grinder The FUTURE of Profile Knife Grinding

The PCS61 edge mount power unit from Mockett offers convenient power and USB charging ports under the desktop. Suitable for work desks, conference desks and shared work spaces, the minimalist design is said to blend in with traditional or contemporary furniture. Units also include the option to mount on the back of a desk or table above the surface. Two configurations offered are the PCS61A – power, dual USB charger and the PCS61B – 3 power, dual USB charger.

Products are available in black, white, or metallic silver. www.mockett.com/pcs61a.html

Manual spray gun features balanced operator handling

Sames Kremlin has announced the FPro Manual Airspray spray gun pressure range. The gun is said to be balanced with patent pending technologies inside the gun so that the painter has complete control with the paint application. The paint speed controller and spin effect deliver atomization with transfer efficiency up to 78 percent in HVLP. www.sames-kremlin.com

Laser distance meters available in three variations Safer More Consistent Faster...No Template Making Easier...DXF Files to Finished Knife 888.777.2729 24 WOOD INDUSTRY

MAY/JUNE 2018

www.csaw.com

Extech Instruments has announced the DT-M series of laser distance meters. Three new meters are said to make it easy to measure distances, compute area and volume, measure angles, and stake out distances between objects. Users can take

measurements with one-button, p oi nt - a nd - s ho ot convenience, saving time and dollars resulting from estimating errors, the company says.

The series includes: DT40M for up to 40 m; DT60M for up to 60 m and DT100M for up to 100 m. The pocket-sized meters measure targets with 2 mm accuracy. A built-in bubble level is said to ensure the accuracy of horizontal measurements. www.extech.com

Decorative laminate veneer door uses five-piece construction

The Winchester door with decorative laminate veneer style from Elias Woodwork is available in the company’s Memento colour pattern. The fivepiece construction of laminate doors is said to closely simulate wood doors and can be a cost-effective design alternative. Combined with the antibacterial, scratch and stain resistant properties of laminate, the panels are available with a colour match that supports sheet goods and components. The pattern adds shabby-chic to any kitchen or bath design, the company says. www.eliaswoodwork.com

Powder-coated MDF components

Modular open-shelving system

ings are sent to the company and it will route, powder coat, and ship the finished parts directly to the customer. With custom colour matching available, the company specializes in applications such as retail store fixtures, healthcare, hospitality and educational furniture components and architectural elements. www.dvuv.com

The Liberta Modular System from Richelieu is said to provide the ability to create versatile modular structures with open shelving and other configurations for both residential and commercial projects. The system is based on easy to assemble connectors and profiles that allow users to design optimal storage solutions and create customized furniture, the company says. The aluminum profiles can be cut to any size and are assembled to the metal connectors that adjust 4 ways simultaneously with a grub screw and an Allen key.

Each configuration can be combined with glass shelves, decorative paneling and lighting options. The system is offered in two sizes: 20 x 20 for smaller structures such as open top cabinets, hanging shelves or tables, and 25 x 25 for more robust structures such as lower cabinets, libraries or desks. Connectors can be concealed or visible depending on the desired effect.

The system is offered in satin aluminum or black anthracite finishes. www.richelieu.com/liberta

Two-level dovetailed drawer doubles storage volume

Dovetailed drawers for the kitchen, office, bath and closets have been introduced by CCF called the Double Deck Drawer. Said to double storage with their two-level design, the drawers have a newly redesigned top cap which conceals the drawer slide for what is said to be a cleaner look and are available in a variety of materials, as well as size and finish options. Onehour quick quotes are available with no minimum order needed. www.ccfdrawers.com

Cabinet Makers Produce Profit Using ShopBot CNC Cabinet and closet makers have been using ShopBot tools in their businesses for years. They depend on their tools for day-in, day-out production, and appreciate that our CNC tools can be adapted to accommodate today’s work demands.

At ShopBot, we don’t just import and resell something we don’t understand. Photo courtesy of Syzygy Woodworks We design, develop, build, and support our tools, all from our Durham, NC facility. Our customers know that we know CNC—and that we know cabinet making—inside and out.

For our full line of tools, visit our website. Then give us a call.

DVUV offers UV-cured powder coated components for MDF wood. Draw-

We’ll find the tool that works best for your needs.

888-680-4466 • ShopBotTools.com

www.woodindustry.ca

WOOD INDUSTRY 25

WOOD

New Products Decorative veneer and TFL panels

Solid wood table tops

With hundreds of decorative veneer and TFL panel options, Roseburg is said to offer a comprehensive line of composite panels with SkyPly hardwood plywood and duramine TFL, all

available on a selection of composite cores. According to the company, Arreis, CFC, Medex, Medite FR, Medite II, SkyBlend, CFC, and veneer core can provide performance characteristics for any application. www.roseburg.com

18V Li-ion Bluetooth battery packs

Contemporary line of cabinet fronts

TableLegs.com has introduced thick wide-board solid hardwood table tops suitable for coffee tables, dining tables, benches, end stands, desks and kitchen islands, bath vanities and workbenches. To make their table tops, the company says it uses only premium grade boards, hand-selected for grain and color. Each top is made from 6 to 12 in. wide boards and are 1-ž in. thick. The table tops are available in three species, maple, walnut and mahogany, and are available in sizes from 12 x 12 in. to 48 x 110 in. Table tops are cut with square or chamfered edge treatment already applied, are sanded, and ready to finish, or finished with natural oil. www.tablelegs.com

Motion vacuum lifting system for vertical and horizontal panel transport Festool has introduced Bluetooth 18 V Li-ion battery packs that communicate with the Bluetooth module recently introduced on most models of the CT Dust Extractor. The battery packs are available in 5.2 and 6.2 Ah. Cordless tools from the company that can be updated with the battery packs include: TSC 55 tracksaw; HKC 55 carpentry saw; BHC hammer drill; PDC percussion drill; C 18 and T 18+3 cordless drills; DWC drywall screwdriver and Carvex jigsaw. An integrated LED display on the battery pack displays the charge status at all times. In combination with the SCA 8 Airstream rapid charger, battery packs are said to be charged quickly and effectively with active cooling during the charging procedure. www.festoolcanada.com

26 WOOD INDUSTRY

MAY/JUNE 2018

measuring 500 x 250 mm. The structural check is the responsibility of the customer and must be carried out by them, the company says, and the panels must be suitable for lifting with a vacuum unit. www.felder-group.ca

The V-motion classic vacuum lifting system from Felder is designed for both vertical or horizontal transport of panels. Features include a pneumatic 90 degree tilt function and load capacity of 250 kg. Lifting speed of the chain hoist is 0 to 10 m/min and is continuously adjustable. Lifting height is 2.0 m and operating pressure is 7 bar with filtered compressed air consumption of 11 Nl/sec. All the controls for the lifting mechanism and the vacuum lifter are located in the same control unit.

Vacuum traverse has a reinforced design with a one-piece long traverse (1.5 m) and two adjustable oval suction cups

Atlanta Cabinet Shop has launched a new line of contemporary cabinet fronts available online. The new product line includes both shaker style (5-piece) and slab style door and drawer fronts available in many material choices. The product focus is on high-gloss acrylics and textured TFL. The company has over 30 material choices, including 10 high gloss options. Zero-edge technology is employed on all solid color fronts. Depending on the material selection, the new products’ core material is MDF or particleboard. All board is Carb 2 compliant. Material choices include Uniboard, DixieLam, StyleLite and Panasphere. www.atlantacabinet.com

Variable speed random orbit sander

The M18, 5-in. random orbit sander from Milwaukee Tool produces corded power with a 12,000 maximum OPM output. The 7,000 to 12,000 variable speed dial allows the user control over the output of the tool to match the orbit speed for the application. The sander is powered by Redlithium battery technology that delivers up to 35 minutes of run-time on a 3.0 Ah battery pack. www.milwaukeetool.ca

Bullets WOOD Canadian municipalities issued $8.176 billion in building permits in February, compared to $7.613 billion in February 2017, an increase of 7.4 percent.

—Statistics Canada The Consumer Price Index in Canada rose 2.3 percent on a year-over-year basis in March, following a 2.2 percent increase in February.

—Statistics Canada February retail e-commerce sales in Canada totaled $1.1 billion, representing 2.7 percent of total retail trade. On a year-over-year basis, retail e-commerce increased 14.6 percent, while total retail sales were up 3.9 percent. —Statistics Canada German parquet manufacturers recorded a slight decline in production for 2017 as a whole, according to the Association of the German Parquet Industry (VDP). —VDP/Fordaq Taiwan recorded $596.3 million US of woodworking machinery exports value in 2017, an increase 14 percent compared to 2016, according to statistics released by Taiwan External Trade Development Council. The exports to the U.S. increased by 8.1 percent to $253.2 million US, followed by China with 44.6 percent growth to $97.1 million US and Vietnam with a 3.4 percent increase to $43.4 million US. — TAITRA U.S. softwood lumber demand will grow at an annual rate of 2.3 percent through 2030, higher than the real GDP, says a study by ForestEdge and Wood Resources International forecasts. Lumber consumed by the residential housing sector, including repair and remodeling, will continue to account for the almost 70 percent of the end-use market. —Lesprom In January 2018, Brazilian exports of wood products (except pulp and paper) increased 28.8 percent in value compared to January 2017, from $183.7 million to $236.6 million. —ITTO Timber and panel imports to U.K. rose by 10.8 percent in 2017. —Timber Trade Federation In January 2018 compared with January 2017, production in construction increased by 3.7 percent in the euro currency area and by 2.5 percent in the EU28.

—Fordaq

The German furniture industry achieved almost stable sales in 2017, falling by 0.6 percent to €17.9 billion, after growth years in 2015 and 2016 — with a 6.2 percent and 3.2 percent increase, respectively. Domestic demand declined by 1.1 percent, while foreign sales by German furniture manufacturers rose by 0.4 percent. —VDM The study, Moulding & Trim in the US, 7th Edition, forecasts demand for wood moulding and trim is projected to increase 3.7 percent annually to $5.5 billion US in 2022. —Freedonia Group The study, Global Windows & Doors, 8th Edition, forecasts windows and doors demand are projected to advance 4.5 percent per year to $214 billion US in 2021. The U.S. and China will drive demand as they account for 65 percent of the global sales growth over this period. —Freedonia Group Growth is projected in the Saskatchewan housing market through to 2021. Based on projected growth rates, the average annual households created between 2016 and 2021 will increase to 2,225 in Saskatoon and to 1,956 in Regina. —CMHC The trend in Canada for housing starts was 226,842 units in March 2018, compared to 225,213 units in March 2017. —CMHC An online survey of 2,507 prospective home buyers in Canada who intend to purchase a home within the next two years has been released. Reflecting an aging demographic, improved accessibility was a purchasing motivator for 13 percent first-time buyers, 12 percent of previous owners and 21 percent of current owners. —CMHC For 2017, the intra-EU trade figure by EU furniture suppliers was €19.2 billion, while exports from the European Union hit €8.8 billion and total imports €6.3 billion. —ITTO Following three months of lower imports, Canadian imports of tropical sawnwood increased to $1.5 million US in February. Imports from the U.S. accounted for one-third of total tropical sawnwood imports. —ITTO Total building permits in Canada are forecast to grow 12 percent in 2019 to $73.2 billion US after a modest increase in 2018. —Dodge Data & Analytics www.woodindustry.ca

WOOD INDUSTRY 27

Bullets WOOD According to the Kitchen Cabinet Manufacturers Association, members reported an increase in cabinet sales of 1.8 percent for February 2018 compared to the same month in 2017. Stock sales were up 1.6 percent, semi-custom sales decreased 0.4 percent and custom sales increased 11.3 percent compared to 2017. —KCMA The 2018 U.S. Houzz Kitchen Trends Study found that of over 1,700 U.S. homeowners using Houzz who are in the midst of, are planning, or recently completed a kitchen project, found that kitchen remodelers want to declutter their counters (75 percent), put things away (66 percent) and recycle (49 percent).

Similarly, the majority of homeowners also prioritize storage over all other functions of their kitchens (63 percent), followed by a space in which it is easy to work, play and live (38 percent), entertain (32 percent) and clean (32 percent). —Houzz.com B.C. commercial real estate investment activity and dollar volume achieved new heights in 2017 with the disposition of 230 office, industrial and retail properties valued at $7.5 billion during the record-setting year. The previous record was set in 2016 when 147 deals worth $4.1 billion transacted, which itself represented a substantial increase in dollar volume from 2015, which had also been a record-setting year with 149 transactions valued at $2.67 billion. —Avison Young According to the Canadian Real Estate Association 2019, national home sales are forecast to rebound modestly to 496,500 units from a projected 479,400 units in 2018. —CREA Investment in residential construction totaled $34.5 billion in the fourth quarter, up 9.2 percent ($2.9 billion) compared with the same period in 2016.

—Statistics Canada The IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) registered 55.7, littlechanged from 55.6 in February and above the neutral 50.0 threshold for the 25th consecutive month. —IHS Markit Total U.S. construction activity for February 2018 ($1,273.1 billion US) was 0.1 percent above the January 2018. The January figure is 3.2 percent above the January 2017 activity of $1,223.5 billion US. —U.S. Census Bureau

28 WOOD INDUSTRY

MAY/JUNE 2018

New housing construction investment totaled $4.4 billion in January, up 9.4 percent compared with January 2017. Investment was up for all dwelling types.

—Statistics Canada With an Architecture Billings Index (ABI) score of 51.0 in March, business conditions at U.S. architecture firms remained strong for the month, although billings grew at a modestly slower pace than in February (any score over 50 indicates an increase in architecture firm billings). This makes the sixth consecutive month of increased demand for architectural services. —American Institute of Architects In 2016, global MDF market amounted to 96.4 million cubic meters, posting solid gains over the previous ten years. In value terms, the market stood at $38.5 billion US, which was approximately at the level of 2015. After a decline by 10 percent in 2009, the market recorded a robust upward trend over the next five years, until it dropped slightly in 2015 and then flattened. China accounts for approximately 57 percent of global MDF consumption. —IndexBox Global windows and doors demand is projected to advance 4.5 percent per year to $214 billion US in 2021. The U.S. and China will drive demand as they account for 65 percent of the global sales growth over this period. Increased spending on new office and commercial buildings in China, and the ongoing strength of new home construction in the U.S. will support this demand. —The Freedonia Group The gross domestic product (GDP) in Canada expanded 2.90 percent in the fourth quarter of 2017 over the same quarter of the previous year. GDP annual growth rate in Canada averaged 3.16 percent from 1962 until 2017, reaching an all-time high of 8.80 percent in the first quarter of 1962 and a record low of -4.10 percent in the fourth quarter of 1982.

—Trading Economics A Reuters/Ipsos poll released recently found that only 41 percent of Americans trust Facebook to obey U.S. privacy laws, considerably less than other major tech companies that gather user data. By comparison, 66 percent said they trust Amazon, 62 percent trust Google and 60 percent feel they can rely on Microsoft to keep their data safe. Apple and Yahoo! also had higher levels of trust at 53 and 48 percent respectively. —Statista

Events WOOD May 31 – June 2 AWMAC National Convention Edmonton, Alta. www.awmac.com June 11 – 13 NeoCon Chicago, Ill. www.neocon.com January 18 – 21 Interior Design Show Toronto, Ont. http://interiordesignshow.com/ July 10 – 13 MEDEX Teheran, Iran www.messe.de Aug 22 – 25 International Woodworking Fair (IWF) Atlanta, Ga. www.iwfatlanta.com Sept. 11 – 14 Drema Poznan, Poland www.drema.pl/en Oct. 13 – 17 High Point Market Charlotte, N.C. www.highpointmarket.org Oct. 16 – 19 Sicam Pordenone, Italy www.exposicam.it/en/

WOOD

Advertisers

Akhurst Machinery Ltd. www.akhurst.com.............................18

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Sames Kremlin www.sames-kremlin.com ...............15

Epilog Laser www.epiloglaser.com wood-industry ..................................23

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Felder Group Canada www.felder-group.ca .......................13 Grass Canada www.grasscanada.com .....................5 IWF www.iwfatlanta.com........................31 Nuvo www.nuvoconcept.com......................9

Taurus Craco www.tauruscraco.com.....................21 Vortex www.vortextool.com...........................8 Weima www.weimaamerica.com................12 Weinig www.weinig.com...............................11

Marketers: Invite customers to your booth at IWF Atlanta!

Surveys show 75% of trade show attendees make out schedules in advance. Take advantage of W.I. Media’s print and digital properties to connect with prospects!

October 24 – 25 Woodworking East Saint-Hyacinthe, Que. www.canadawoodworkingeast.ca Nov. 28 – 30 The Buildings Show Toronto, Ont. www.thebuildingsshow.com

Sales contact: Stephen

King

905-703-6597 • sking@wimediainc.ca www.woodindustry.ca • www.woodindustryus.com www.woodindustry.ca

WOOD INDUSTRY 29

WOOD

By the numbers New housing construction value in millions of dollars

60,000

New dwellings, all types

50,000

Residential construction investment In millions of dollars 40,000

Single houses

Residential construction investment Residential construction investment in millions of dollars in millions of dollars

40,000 40,000

35,000 35,000

30,000

Semi-detached houses

Total Total residential residential investment investment

30,000 30,000

Total residential investment

25,000 25,000

20,000

Row

20,000 20,000

Renovations

15,000 15,000 10,000

Renovations Renovations

10,000 10,000

0

5,000 5,000

Apartments Q2 2013 Q2 2013 Q3 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014 Q1 2014 Q2 2014 Q2 2014 Q3 2014 Q3 2014 Q4 2014 Q4 2014 Q1 2015 Q1 2015 Q2 2015 Q2 2015 Q3 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 Q4 Q1 2016 Q1 Q2 2016 Q2 Q3 2016 Q3 Q4 2016 Q4 Q1 2017 Q1 Q2 2017 Q2 Q3 2017 Q3 Q4 2017 Q4

2013

2013

2013

2014

2014

2014

60000

2014 2015 2015 2015 2015 2016 2016 2016 2016 Canadian building permits in millions of dollars

2017

2017

2017

2017

Canadian building permits In millions of dollars 50000

Residential

Canadian building permits in millions of dollars

60000

Residential building permits

40000

Residential

40000

30000

Commercial Commercial

30000

Commercial

50000

building permits Institutional and governmental building permits

20000 20000

10000

Institutional and Institutional and governmental

10000

governmental

0 0

Q3 Q3 2013

2013

Q4 Q4 2013

2013

Q1 Q1 2014

2014

Q2 Q2 2014

2014

Q3 Q3 2014

Q4 Q4 2014

2014

Q1 Q1 2015

2014

Q2 Q2 2015

2015

Q3 Q3 2015

2015

Q4 Q4 2015

2015

Q1 Q1 2016

2015

Q2 Q2 2016

2016

Q3 Q3 2016

2016

Q4 Q4 2016

2016

Q1 Q1 2017

2016

2017

Q2 Q2 2017

2017

Q3 Q3 2017

2017

Q4 Q4 2017

2017

New housing construction value in millions of dollars

60,000

New housing construction value In millions of dollars

New dwellings, all types

New housing construction value in millions of dollars

50,000 60,000

New dwellings, all types

New dwellings,

Single houses all types

50,000

40,000

Single houses

Single

40,000

30,000

Semi-detached houses

Apartments

30,000

Semi-detached houses

20,000

Row

Row

20,000

Row

Double

10,000 10,000

60000

0

Apartments Apartments

Canadian building permits in millions of dollars Q2 Q2 2013 2013

Q3 Q3 2013 2013

Q4 Q4 2013 2013

Q1 Q1 2014 2014

Q2 Q2 2014 2014

Q3 Q3 2014 2014

Q4 Q4 2014 2014

Q1 Q1 2015 2015

Q2 Q2 2015 2015

Q3 Q3 2015 2015

Q4 Q4 2015 2015

Q1 Q1 2016 2016

Q2 Q2 2016 2016

Q3 Q3 2016 2016

Q4 Q4 2016 2016

Q1 Q1 2017 2017

Q2 Q2 2017 2017

Q3 Q3 2017 2017

Q4 Q4 2017 2017

Residential

50000

Carpenter construction union hourly wage rates In dollars, including selected pay supplements Carpenter construction union hourly wage rates

60

In dollars, including selected pay supplements

40000

Toronto, Ont.

Toronto, Ont.

55

Commercial

Regina, Sask.

Regina, Sask.

30000 50

Edmonton, Alta.

20000

Edmonton, Alta.

Vancouver, B.C. Quebec, Que.

10000 40

Institutional and governmental

Saint John, N.B. QuĂŠbec, Que.

35

0

30

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

INDUSTRY MAY/JUNE MAY/JUNE 2018 2018 30 WOOD INDUSTRY

Saint John, N.B.

Source: Statistics Canada

Vancouver, B.C.

45

IMAGINE

2018 MACHINERY, DESIGN, AND MATERIALS REGISTER TO ATTEND EXPERIENCE IT ALL: • WITH OVER 900 EXHIBITORS • THOUSANDS OF PRODUCTS • NEW INNOVATIONS

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Wednesday - Saturday August 22 - 25, 2018 International Woodworking Fair, LLC® is owned and sponsored by:

(R)EVOLUTION 10째 30째

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10째

+

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