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10 US News About the Cover For centuries, scientists have been intrigued by the gecko as 31 News they can cling to almost any 10 surface. As a central element to Bostik’s new image, the gecko 39 Product Focus represents an inspiring example of adhesive innovation from the natural world. Today, you’ll see 40 What’s New the Bostik Gecko and our smart product packaging in DIY, trade and construction markets. Newsmakers 31 DesignBUILD 2016 celebrates its 30th year DesignBUILD 2016 returned to Melbourne in May and celebrated its 30th year with a new outlook and fresh features. The 2016 show saw a new show floor layout to allow for a more fluid experience onsite.
32 Tradies and manufacturers big winners from the Budget More than 300,000 tradies and builders are winners from the 2016-17 Budget, with those 8 set to benefi t including young 22 Australians looking to enter the manufacturing industry, as well as businesses who agree to internships for young job seekers.
34 Bondor announces $20 million dollar investment Bondor/Metecno recently announced a $20 million dollar investment in a state- of-the-art production facility in Campbellfi eld Melbourne, with the facility due to open later this year.
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 3 VIEWPOINT
ay certainly was a month of o en be wrong or simply not there. ‘Click excitement, particularly with and Deliver’ which is free of charge, is the Published by HBT holding its 2016 National way of the future. is is where Amazon MConference which saw 204 stores and and Australian retailers fail,” Mr Dart said. GLENVALE PUBLICATIONS A.B.N. 31 218 591 688 117 suppliers attending the event. e “Amazon’s freight bill eats up virtually all 5 Palmer Crt, Mount Waverley VIC 3149 HBT conference was jam packed with of its pro t. Retailers, including Amazon, PO Box 50, Mount Waverley VIC 3149 presentations by HBT representatives hand ownership of the customer over to Phone: (03) 9544 2233 Fax: (03) 9543 1150 and key-note speakers, with the initial Australia Post/Star Track, Toll etc. at a conference sessions also highlighting the high cost, because they do not understand Editor: Christine Bannister importance of maintaining an online a value proposition and have not worked Phone: (03) 9550 6813 presence to members. out how this can be achieved. Suppliers are Email: [email protected] Group manager, Tim Starkey, not fed up with the high cost of doing business Journalists: David Burton only touched on the phenomenal growth with retailers in all sectors, not just home Bob Vareen of the group, with HBT expected to top improvement, and it seems world leading Geoff Dart 600 members this month, but also posed brands are successfully developing and Online Communications & Production: several possibilities on the sale of Masters. implementing e-commerce platforms Lauren Butler Email: [email protected] See inside this special edition of AHJ direct to the consumer.” for extensive coverage of the conference, “ e excessive trading terms and rebates, ADVERTISING including photos, supplier and member instead of going to the retailer, fund the total awards and trade-show stand shots. supply chain cost for the supplier to deliver Harry Rabiee directly to the customer’s door, with trials Email: [email protected] Denial of e-commerce Phone: (03) 9550 6866 to date showing a better than ve per cent Mobile: 0403 000 444 With online shopping such a hot topic at saving - let alone more e ective advertising the HBT conference, I was not surprised and promotional activity that just doesn’t go ACCOUNTS when Harvey Norman recently announced back into price by the retailers, but builds Melissa Graydon that it had partnered with courier company, brand equity,” Mr Dart said. Email: [email protected] Shippit, to o er consumers three-hour “More and more suppliers are expected delivery for online shopping - on selected to increase their Omni-channel strategies SUBSCRIPTIONS items. Harvey Norman executive chairman, and improve pro tability. Unless Roula Pappas Gerry Harvey, introduced the new o er Australian retailers get on-board with $88.00 – 12 issues + Suppliers Directory saying it was a game changer for online online shopping combined with a free, [email protected] retailing, particularly at a time when daily delivery service, there may very well consumers had become more demanding. be up to 30 big box stores, 100 discount ART AND PRODUCTION e three-hour delivery service department stores, 200 supermarkets and Justin Carroll on selected items is guaranteed, with 100 liquor stores and so on, closing in the PageSet Australia deliveries for online orders honoured next ve years. e research is compelling. Phone: (03) 8542 5555 between 7am and 10 pm Monday to Friday, Bricks and mortar retailing certainly has and consumers also given the option of an important role to play, it will just be a PRINTING tracking their delivery via GPS. di erent role,” he said. Erwins Printing Mr Harvey said that the new service 170 Cheltenham Rd, Dandenong 3175 targets impulse buyers, with fast delivery Coming up in the July edition… Phone: (03) 9793 4844 quickly becoming the way of the future. AHJ’s Garden & Outdoor Living and is is evident with Amazon o ering one, Agents & Sales Merchandising features two and three hour deliveries, he said. are already well under way for publication Prices for delivery start at $11 if the order in the July edition, with o ers of interest Glenvale Publications and Australian Hardware Journal are is placed before 1pm, with additional pricing in advertising and editorial currently pleased to provide the articles contained in this publication implemented a er this time and the service being put forward. Please contact Harry to keep its subscribers up to date on issues which may be relevant to their businesses. This publication is is currently available in major cities. Rabiee or myself to discuss either of the supplied strictly on the condition that Glenvale Publications upcoming features. and Australian Hardware Journal, its employees, agents, Online shopping delivery crucial authors, editors and consultants are not responsible for any deficiency, error, omission or mistake contained in Home improvement and retail industry Christine Bannister this publication, and Glenvale Publications and Australian analyst, Geo Dart, also spoke to AHJ on Editor Hardware Journal, its employees, agents, authors, editors and consultants hereby expressly disclaim all liability of the importance of online shopping, saying whatsoever nature to any person who may rely on the online purchases partnered with free contents of this publication in whole or part. delivery services was crucial for the future Australian Hardware success of retailers. Journal is a member “Currently the ‘Click and Collect’ facility of the Circulations Audit Board. is not working because customers still have Auditors are AMAA. to go to the store. Worse still, the order can
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Store name: Total Tools Lonsdale Total Tools Lonsdale Store owners: Jeremy Atkinson doubles in size & Tim Ward Buying group: Originally establishing itself as an un-bannered independent Total Tools hardware store, Total Tools Lonsdale, based in South Australia, joined the Total Tools group in 2001, after fi nding it was too diffi cult to make a profi t independently. Since joining Total Tools, the store now carries the largest professional tool range in the region.
wners, Jeremy Atkinson and Tim Ward agree that the store is a much more stable business, andO has also substantially improved its profi tability since joining Total Tools. “We carry all the big brands. Th is, combined with our large retail space, ensures we have a strong off er versus our competitors. Total Tools was key in ensuring we were covered with a broader range than what we had previously stocked. Th ey were also instrumental in facilitating a larger breadth and depth of range with key suppliers.” “I think what makes us unique in our area is that we have become much more competitive and the franchisor has also provided an array of services and support outside of our core competencies,” Jeremy said.
Store history Total Tools Lonsdale has utilised key suppliers to extend its range. Total Tools Lonsdale fi rst opened its doors in 1992 and since this time has established off er to ensure that the store is delivering Jeremy and Tim then made the decision itself as a key destination for tradespeople on its mantra ‘every tool every trade’. to relocate to a much larger premises across who seek professional tools. However, it seemed that the store’s original the road from the original store, and began Jeremy said that this was achieved by retail footprint was preventing the store trading from the new site in December recognising the need to expand the store’s from trading at its full capability. 2015. Th e new store is 1950 square metres
6 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 RETAIL FOCUS
expectations. Th is is what keeps them coming back,” he said Total Tools will continue its consistent marketing plan over the next 12 months and this will be supported through most media channels as it increases its advertising coverage year on year, according to Jeremy. “Further to this, we have a highly successful membership, or loyalty database, called ‘Insiders’. Th is program off ers a distinct point of diff erence to our competitors because it off ers numerous benefi ts to the end consumer. Our customers remain highly engaged with the program and it also allows us to L-R: Tim Ward, Ossie Richardson, Simon Laundy communicate to our customers on what is and Jerry Atkinson. going on in our store,” he said.
Over 35 years’ experience Building customer loyalty Jeremy and Tim began their partnership Tradies love to shop in Total Tools, over 35 years ago, and the two run the according to Jeremy, who said it really is a store along with three of Jeremy’s sons who haven for tradies. also work in the business. To date, Jeremy “Customers call our store ‘tool heaven’. boasts over 35 years of retail experience We provide an environment and retail in the tool and hardware industry. With space that is just for them. Th ey value the trade making up 80 per cent of the store’s service, advice, knowledge and breadth customers, Jeremy and Tim have ensured and depth of what we off er. We do our Total Tools continues to implement an extensive marketing program, particularly with regular that all of the staff at Total Tools Lonsdale best to off er personalised service and we catalogues. have a wealth of knowledge, which tradies are always questioning what it is they are can draw on daily. looking for. An example of this was when in size, which is over double the size customers told us that our door was of the previous store. not always open when they wanted “We relocated and did a complete to shop. As a group we made the refi t program. A lot of eff ort has decision to open seven days a week. gone into the merchandising of stock Putting the customer fi rst is always in our new store. All departments top of mind.” are performing well since the move. With Jeremy always looking on In particular, we have seen strong ways to improve the business, he improvement in areas such as recently asked a customer if there safety, welding, storage and power was anything they could do to tools. I think this is because we have improve their customer experience. signifi cantly increased our off er in “Th e customer said ‘do you think these areas,” he said. you could put some bar stools at the “Th e new relocated store sits as a counter? I love it here, I am in no A grand opening sale was held when the store fi rst opened in stand-alone retail space on the corner December last year. hurry to get home’, which is great,” of two high profi le roads in Lonsdale. Jeremy said. Ironically, even though we are now trading Marketing plan in a space more than double that of our According to Jeremy, the Total Tools Group previous store, I still complain that we do not supports all stores through a consistent have enough space,” Jeremy said. marketing plan, with either a catalogue Nationally Total Tools is also enjoying or an event booked every month on the consistent growth, according to Jeremy, who calendar, and this is oft en supported by said it is not only new stores that are growing digital marketing and/or radio. but also existing stores and stores that have “We like to make a lot of noise and relocated into a bigger footprint model. ensure we do not leave it to chance, so that “A combination of improved marketing our customers always know what is on off er and expansion into new categories or behind our doors. When the customers increasing our off er in old ones, is driving walk through our doors, we want to Total Tools Lonsdale focuses on providing a ‘tool sales,” he said. ensure we are meeting and exceeding their heaven’ for its customers.
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 7 BEHIND THE COUNTER
Nine steps to reducing taxes as you head towards ‘EOFY’
Michael Moschetti is a business owner, business adviser, and tax expert at The Hendrie Group. In this report he investigates how you can minimise your tax at the end of this fi nancial year.
“Of course I am minimising my tax. And if anybody in this country does not minimise their tax they want their heads read, because as a government I can tell you’re not spending it that well that we should be donating extra.” — Kerry Packer
e have talked to a lot of business Nine steps to minimise your taxes: owners over the years. Th ey 1. Slash your tax for retirement - Super- have shared their dreams, their annuation is an area that many busi- Wgoals, their fears and their frustrations ness owners neglect but it is absolutely with us and it seems there are a few essential for saving tax. Put more mon- things that seem to frustrate everyone in ey into your super account and less into general, including: the government’s coff ers. 2. Squeeze money from the government 1. You are paying too much tax - You - Take advantage of special concessions want to reduce your tax as much as available only to business owners and possible. You do not want to rip off maintain your business’s true value. In the government, but you want to pay about 90 per cent of the business sales I what is fair and reasonable. have been involved in, the owners have 2. There is never enough time - You paid zero tax! Th is could save you hun- know there are things you can do to dreds of thousands of dollars depend- pay less tax and improve your overall ing on the sale price of your business. financial position, but there never But you need to meet the criteria and income (so you pay less tax) without seems to be enough time to do it. be structured correctly to take advan- aff ecting your cash fl ow. 3. You have no clear direction - Even if tage of the concessions. 8. Insurance that will not break the you have been in business for a while, 3. Money for jam (transition to retire- bank - Take advantage of tax conces- it often feels like you are just plod- ment) - Accept this government gift sions that can reduce your life insur- ding along. that could have thousands of extra ance premiums. dollars going into your super instead 9. Get a leg up with the bank’s money - Many business owners are also con- of disappearing in tax. Even if budget Use negative gearing to build wealth cerned that if they keep paying too much changes come into eff ect, it is still an and save tax. tax without doing anything about it, the awesome opportunity for most busi- Each of these nine steps can have a power- money may soon run out. But it does not ness owners over the age of 56. ful impact on how much tax you pay and this have to be that way. 4. Tax advantaged business structures in-turn can determine the quality of your fu- How would it feel to: pay the mini- - Make sure your business setup is tax ture fi nancial freedom. Get it right and you mum amount of tax - legally, have the eff ective and protects you. will have the freedom to do what you want, time to do what needs to be done, know 5. Optimise tax opportunities - Make when you want, and how you want. Get it what you want, where you were going, the most of all possible deductions. wrong and you will just keep plodding along and how to get there. 6. Right money, right hands, right time and feeling like you are not getting anywhere. Believe it or not, it is possible. You - Make sure your benefi ciaries do not can start by taking control of your tax lose most of their inheritances to tax. Get started right now and once you have that under control, 7. Reduce your taxable income - Use Th e fi rst step to fi nancial freedom is identi- you can take control of everything else. strategies that will lower your taxable fying the areas that need attention. Take a
8 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 BEHIND THE COUNTER
look at our ‘stop ☐ Compulsory superannuation unpaid as at donating to the June 30. government’ ☐ Credit card and bank statements up to and success wheel including June 30. on the right. As ☐ Details of assets acquired during the year. you can see, it ☐ Details of new leases/hire purchase agree- is divided into ments for assets acquired during the year. nine segments. ☐ Details of any payout on leases/hire pur- Now, think chases during the year. about where you ☐ Details of assets sold (or traded in) during sit in each segment the year, including date, proceeds of sale/ (1. being “I don’t trade in, and GST charged. even know where to ☐ Copies of your BAS for the full fi nancial start” and 10 being “I’m year. in total control of this area”) ☐ For current business loans, statements for and plot a point (you need to be Tax checklist the full year. brutally honest). While no one went into busi- ☐ Details of new loans, including loan agree- When you have done it for all nine seg- ness simply for the fun of lodging another ment and loan statements. ments, join the dots and have a look at the tax return, this is an important time of year ☐ Copy of Employee Payment Summaries shape you have drawn. If it is a nice small to gather information for your tax expert to issued at year end. circle you can rest easy. You are not paying prepare your return; you want to make sure ☐ Copy of PAYG tax reconciliation. any unnecessary tax, and can focus on other all your paperwork is in order. Remember ☐ Copy of Payroll Tax Reconciliation sub- areas of your fi nancial planning. But if it is a this is the stuff that keeps you out of jail, so mitted for the year (if applicable). small or bumpy circle you need to take ac- it’s pretty important. ☐ Copy of Work Cover Certifi ed Rateable tion and stop donating extra money to the To make it really easy, I have put together Remuneration submitted for the year. government. a simple checklist you can use when you are ☐ Details of any business income not banked getting your paperwork in order. Th is will to the business bank account. A simple next step put you in the best position to maximise ☐ Details and dollar amount of goods taken To achieve total fi nancial freedom, you need your deductions, have the work completed in from stock for private use. to incorporate all nine steps into your busi- a timely manner and ensure the information ness and fi nancial tax planning. Th e best way is as accurate as possible. Michael Moschetti specialises in helping to get started is to have a valuable conversa- business owners implement simple, prac- tion with your accountant. Th is year, instead Check list tical, and e ective growth strategies to of just dropping in your fi nancial informa- ☐ Access to Cloud accounting soft ware/ help you achieve nancial freedom. For a tion and waiting for your accountant to tell computer disk/USB of backed up record copy of his special Business Owners pub- you how much tax you need to pay, make keeping system (Cash Manager/MYOB/ lication: ‘ e Ultimate 360°™ - 8 steps to sure the meeting is really meaningful for Quicken/Quickbooks). unlocking your nancial freedom’ visit: your fi nancial future. ☐ A list and value of stock on hand at June 30. www.hendrie.com.au A Team Aus Hardware Journal - 1115_Layout 1 4/11/2015 11:17 am Page 1
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JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 9 his year, it was bigger, better and quite diff erent. Th e NHS once again Bigger, better and worked with the North American TRetail Hardware Association, with its educational segment off ering a variety of speakers and symposiums that provided different this year visitors with information on how to com- pete with giant competitors and how to use social media and mobiles to connect with There is nothing quite like the US National Hardware millennials and other younger consumers. Show (NHS), which again this year was held in Las First and foremost, the National Hard- Vegas in May, and which is also why tens of thousands ware Show is a trade show off ering prod- ucts and promotions from more than of retailers, distributors and manufacturers from around 2,800 suppliers from around the world. the world attend it. US reporter, Bob Vereen, gives the A large number of non-USA fi rms were, following report on the show’s major events. as might be expected, from China. Th is year management organized its 2,800
10 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 US NEWS
to identify exciting new opportunities, Ranch’ and ‘Emergency/Disaster’ catego- this year’s show highlighted new prod- ries, with major US wholesalers continu- ucts in two areas including New Product ally adding merchandise in the ‘Farm & World and New Product Launch, which Ranch’ category to help their customers is specifically for products not yet on the better compete with such chains as Trac- market but about to be launched. Another tor Supply, a multi-billion retailer which is source of new items for retailers was the now growing rapidly. fact that more than 600 exhibitors were When disasters strike or are about to new to the show. strike, people flock to their local hardware Due to the show covering such a wide store or home center for much needed range of products, it attracted retailers of items including: generators, plywood to all types, ranging from mass marketers to board windows, batteries etc. however, home centers to e-commerce sellers. The in the past, retailers have not identified show’s organization into 15 categories themselves as headquarters for those helped buyers make the best use of their needs. This is changing and the show en- time in Las Vegas. sured retailers were fully informed on how Here are just some of the categories and they could utilize ‘Emergency/Disaster’ the number of vendors buyers could visit: categories.
Building Products...... 291 Lighting shows potential Electrical...... 264 Two categories that received plenty of E-commerce...... 16 buyer attention were solar lighting and Farm & Ranch...... 403 LED light bulbs, both showing impressive Hardware/Tools...... 1,104 growth potential. With outdoor living Housewares...... 758 becoming more important to consumers, Lawn & Garden...... 1,104 lighting has also become a key feature for Paint & Accessories...... 288 outdoor spaces. Whether it be illuminat- BBQ etc...... 372 ing architectural or landscaping accents, Pet Products...... 100 adding a level of security or providing Plumbing...... 309 ambience for entertaining areas, outdoor Storage & Org...... 92 lighting is high on the shopping lists of many consumers. It seems this year product categories According to a Houzz survey of 4,500 were better identified by signing than in people, seven in 10 homeowners are previous years, making it easier for buyers installing lights to illuminate their land- to find what they were looking for. scaping and a majority of homeowners are making eco-friendly choices for their Popular categories yards. The Houzz survey also found that Two of the fastest growing segments for “of the two thirds of homeowners who are many hard-lines retailers include ‘Farm & updating the lighting in their yard (65 per exhibitors into 15 different categories for buyer convenience, including some which identified growing sales opportunities such as ‘Farm & Ranch’ supplies, e-com- merce and items retailers should stock for both emergency preparation and disaster recovery. While it is called the National Hard- ware Show, the show actually is an inter- national sourcing event with exhibiting manufacturers from many countries in- cluding: Australia, Brazil, Canada, China, India, Indonesia, Israel, Italy, Malaysia, Malta, Mexico, Pakistan, Switzerland, Thailand, Turkey, the United Kingdom and Vietnam. To make it particularly easy for visitors
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 11 US NEWS
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cent), a majority is going green with LED (58 per cent) and solar powered lights (56 per cent). Homeowners in rural neighbor- hoods are also most likely to choose solar powered lighting.” Many vendors offered solar lighting varieties that can be installed anywhere, so retailers have plenty of options on what they need to stock. Vendors suggested selling lights that attach to fences or gutters, or even solar string lights that are primarily used for decorative purposes.
New to the show The outdoor ‘Tailgate, Outdoor Living and BBQ’ area was also expanded on this year, and provided buyers with an opportu- nity to see various products in use (and also an opportunity to sample enticing treats). Show management devoted considerable effort to helping attendees work the show easily and productively. One of the unique innovations this year was to provide the ability for buy- ers to identify the categories or areas of special interest to them, and then they were provided a list of exhibitors fulfilling those needs. Buyers could make those requests when they registered or even did so on the show floor to ensure their time on the show floor was used productively. In addition, the show even offered coffee and refreshments in the morning, allowing attendees to have some breakfast while they planned their day or talked with other retailers. A free breakfast was also offered Thursday morning at the Tailgate, Backyard & BBQ shuttle bus drop-off area. Perhaps only in Las Vegas could one expect it, but each afternoon, a happy hour also opened in the main lobby between the Central and North Halls, which was near the shuttle pickup.
Educational seminars from the NRHA In an effort to encourage more independent retailers to attend the show since it is working collaboratively with the North American Retail Hardware Association (NRHA), management provided a show guide on site that showcased more than 1,000 exhibitors selling to independent retailers. PRECISION The NRHA’s role was to provide a wide range of educational GERMAN ABUS | www.abus.com seminars and speakers, ranging from how to compete with the ENGINEERING LSC | www.lsc.com.au world’s largest retailer (Walmart), and other giant retailers, as
12 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 US NEWS
well as how rapidly changing technology will be affecting con- retailers believe they are doing better than they are, which creates sumer behavior. a false sense of competence among many retail operators. Donna Embry, chief payments advisor with Payment Alli- “Customer expectations themselves are a moving target. ance International, discussed new mobile payment trends and There is also a lot of new competition, especially online. There what retailers need to do to meet the expectations of today’s is also new technology, such as the use of smart phones on Omni-channel buyer. retail sales floors which are being used to research products Ms Embry stressed the importance that retailers create and pricing, and emerging generations (millennials) entering a more engaged environment for consumers. One way is by the marketplace to help speed that process along,” he said. making it easier for consumers to pay for their purchases, One illusion Mr Robisch said he wanted to dispel right away she said. was that bricks and mortar was in a significant state of decline. Keynote speaker, Charles Fishman, also discussed the According to his data, 72 per cent of customers expect to shop changes taking place in Walmart, how the company is in-store, just as much as they did last year, while 18 per cent changing and how those changes are affecting or will affect expect to shop more. However, only 27 per cent of customers Walmart’s competitors. feel that retailers provide a consistent experience across vari- “Sam Walton had employees visit competitors’ stores each ous channels, in comparison with the 51 per cent of retailers week and report what they saw. But they could only report who think they succeed on this front. positive things because he did not want to know what they Not surprisingly, prompt service (54 per cent) is a key con- were doing poorly. He wanted to know what they were doing cern for customers, followed by a personalized experience (30 smartly,” he said. per cent) and smart recommendations (30 per cent). A lack of “Every retailer should follow Walton’s practice, because prompt service will actually drive 85 per cent of customers out no retailer should fail to recognize and adopt ideas and suc- of the store. cessful strategies that competitors are employing, which is Michael Switzer, partner in Goldberg Segalla LLP, a law the most important idea one can steal from Sam Walton,” firm that works with Member Insurance Agency in the US, Mr Fishman said. also spoke about cyber security. He mentioned that major data If there was any overriding theme to the educational ses- breaches have occurred at firms like Home Depot and Target sions, it was to remind attendees how fragile their relationship and discussed cyber liability, coverage for data breach liability with customers is these days, due in part to the tremendous and how retailers can protect their businesses from closing if growth of online retailing as well as to competitive pressures they have customer data compromised. from all sorts of bricks-and-mortar competitors, not just other hardware stores or home centers. Next year… In other words, according to Jim Robisch, senior partner of The 2017 National Hardware Show will be held in Las Vegas The Farnsworth Group, retailers should not feel positive that they again next May, and will revert to a Tuesday-Thursday format, are meeting customers' expectations. He also warned that many with the dates confirmed from May 9 to 11.
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 13 HAND, POWER & TRADE TOOLS
Hand, power and trade tools grow through innovation and safety
ith the U.S. hand and power tools market set to grow by 4.8 per cent annually, to $13.1 billion in 2016, Freedoniagroup.com recently reported this Wis a turn around from declines in sales in America from 2006-2011 and will no doubt be a refl ection of what can be expected on the Australian market in the months to come. Globally the value of the power tools market was USD$27.58 billion in 2015, with the market expected to reach USD$46.47 billion by 2025, according to futuremarketinsights.com, with some of the latest trends seeing power tools outpacing hand-tools as more DIY’ers use power tools to accomplish tasks. While growth in the U.S., Chinese and Indian hand, power and trade tools markets are expected to come mostly from the recovering construction industry, this is also a refl ection of what is happening in the Australian market. Growth in the Australian market is also expected to come from not only new housing, but also continued popularity of DIY, particularly in cordless tools with con- sumers choosing these tools over corded. In the power tools market an obvious key trend towards Lithium-ion batteries continues, with users preferring the light weight and enhanced run-time over Ni-Cd technol- ogy. Safety features are also popular in power tools with Hitachi Power Tools Australia continuing to design tools with the end user in mind. Its latest brushless cordless angle grinder, the G18DBAL, was specifi cally designed
14 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 HAND, POWER & TRADE TOOLS
There is no shortage of innovation in the hand, power and trade tools market currently, with Australian and international companies leading the way not only in pioneering designs, but by also adhering to the needs of the modern tradesman.
with an array of safety features, including kick-back protection, paddle switch and overload protection to an anti-vibration side handle. Key trends in the hand tools category include improv- ing safety and saving time, with multi-function tools particularly growing in this segment. German designed WERA tools has also released several time saving alternatives onto the Australian market, with the company designing original products never seen before. WERA sales director overseas, Ralf Josch, said although WERA does produce a screwdriver and a ratchet, it is not an everyday screwdriver or ratchet. “WERA designed a laser edge to the head of its screw- driver. Th is allows the screwdriver to actually grip the socket, so you can let go of the screwdriver without it falling to the ground. So it is not just a normal screwdriver because it does not fall out of the screw and it is not magnetic,” Mr Josch said. “It is not only the innovation we implement but the materials we use, which are very strong and undergo more stress on the steel than a usual screwdriver. Each tool grip also has a patented handle designed specifi cally to fi t into the palm of the hand,” he said. WERA has also launched its innovative tools in a ‘take- it-easy’ colour coding system, so users can easily refer to size and tool shape. WERA’s ‘hold it’ function for sockets is also proving popular, where each WERA socket with this capability allows the user to temporarily grip the bolt or
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 15 HAND, POWER & TRADE TOOLS
screw when plugged into the socket, without “The air tools range includes over twenty it falling out. class leading products, including impact wrenches, powerful air hammers, die grind- Mumme Tools announces new ers and air riveters,” he said. leadership Key points on the air tools include: One Australian tool manufacturer that has • No ‘Test & Tag’ required on each tool, only continued to grow and evolve since its incep- the compressor. tion in 1936 is Mumme Products, with the • Economical - only one power source is Mumme brand maintaining its commitment required, the tools are generally cheaper to providing quality manufactured tools that than power equivalents. ‘do their job’. This year the Mumme Products The Mumme family have produced forged hand • Durable - power tools are prone to burning brand is celebrating 80 years of manufactur- tools for three generations. out when jammed. ing hand tools in Australia. • Safety - electrical hazards are less likely to The Mumme family have produced Mumme Products range. exist when using the tools. forged hand tools in South Australia for Mumme Products tools are now exclu- • Ergonomic – lack of electric motor means three generations and are Australia’s leading sively specified for use in many mine sites, smaller, lighter tools. forged hand tool manufacturer. councils, defence contracts, and are well- • Ease of use - infinitely adjustable in speed, The business started during the loved by builders, contractors and home more compact with less internal moving depression of the 1930’s when the late handy persons. parts. Bill Mumme, a tool smith, was having More recently Mumme Tools was pleased • Versatile - can be used in any country difficulty finding work. He began forging to announce the appointment of a new man- regardless of the power source. copper soldering irons, for the defence aging director, Greg Lowe. • More powerful - more power and torque, industry. Soldering irons remained the Known for his passion for Australian consuming less energy than equivalent principal priority of the business during manufacturing and commitment to grow- power tools. WWII as part of the war effort. ing the business and leading the organisation • Power to weight ratio – an air tool is gener- Bill’s sons, Chris and Des, joined in forward, Mr Lowe has a background in the ally half the size and weight of an equiva- the late 1950’s and early 1960’s, and began automotive parts manufacturing sector. lent powered impact wrench. to diversify into other forged tools such Recently he spent the last eight years • Run cooler - electric motors are cooled by as wrecking bars and crowbars, with its as general manager of TI Automotive, a the dirty ambient air, air tools cooled by bars still made the same way as they were manufacturer in the automotive industry the filtered and dried air supplied by the back then. supplies area. power source (compressor). Chris and Des Mumme took over the Steering the growth of the Mumme • Less affected by dirty environments - as business in the late 1970’s, and continued Products brand, as well as growing the dis- above, clean filtered air is supplied to the to develop the range of products. Des tribution of its sister company’s products, tool at all times unlike electric grinders/ retired in the late 1990’s and Chris’ sons Klein Tools, Mr Lowe has already begun sanders that draw the dirty dusty air to Adam and Matthew took on principal to implement many positive changes to cool them. roles in the business. the business in order to grow the brand. The range includes: impact wrenches, The Mumme brand has grown dramati- ratchet wrenches, straight and angle die cally over the years, especially since the late Kincrome maintains momentum grinders, cut-off tool, angle sander kit, ran- 1990’s. The business has acquired several The new Kincrome air tools range is just one dom orbital sander, hammer chisel set, air Australian manufacturing brands, including of many recent launches by the company, grease gun, needle scaler attachment, com- the Lock Tool Company, Evro Tools, James with the range designed specifically to offer posite air drill, reversible drill, air hydraulic Watt Tools and Melville Ladders, whose the tradesperson, industrial user and products have been incorporated into the DIY enthusiast, a comprehensive range of air tools. Recognised by the trade as a lead- ing industrial and commercial tool brand, Kincrome continues to stock an extensive range of pneumatic products including air compressors, air tools and accessories. The Kincrome air tools have been built to last, are covered with a two- year warranty and have been relent- lessly tested and proven in the field, with attention to quality, reliability and the ultimate in performance, Mumme Tools is pleased to announce the according to national account man- The new Kincrome air tools range is just one of many appointment of new managing director, Greg Lowe. ager, Marcus Alexander. recent launches by the company.
16 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 HAND, POWER & TRADE TOOLS
riveter, air body panel saw and several air time to launch such a promotion to help many features including: chequer plate fi lter/regulators. support the release of our new pink prod- steel construction, UV stabilised white ucts,” he said. powder coat, dual sided reinforced doors Pink workshop Th e range includes: a 134 piece workshop with dual gas struts on each door, stain- Kincrome also recently introduced a new combo kit, eight metre tape measure, chest less steel T-handle locks (keyed alike) and limited edition pink work- and trolley combo, 48 piece pink socket a 130 litre storage capacity. shop range. set, magnetic stubby holder, “Th is is a low profi le designed unit and “It is a great little range pink drinks cooler, as well is ideal for mounting behind the cabin of which we are all really as pink storage with port- utes and trucks. Th is is only a promotional proud of and we look for- able Bluetooth speaker. item for now, however, if it is successful ward to seeing how the “We have done our best like its predecessors (51096 and 51097) it market receives it. to create a mix of traditional may just become core,” Mr Alexander said. Th is is something Kincrome items which we new for Kincrome are famous for and also a Soft storage and we believe few promotional items to As part of its constant evolution of prod- that there is an appeal to the masses,” Mr ucts, Kincrome has reviewed its range of opportunity to Alexander said. soft storage products. develop a cus- “As part of this review we have achieved tomised range Truck box lower price points than our current range targeting women Adding to its compre- while increasing the quality of each product that work on the hensive range of vehicle compared to the previous superseded mod- tools every day. storage is Kincrome’s new els. Th e most notable change is that we have Although this was 1600mm gullwing truck upgraded the materials so that the bags are not exclusively adver- box, designed to target price made of much stronger and tougher 1680D tised as a Mother’s Day pointed competitors in the (Denier) polyester across our new bag range, promotion, we believe Kincrome has introduced a new market. Th e 51099 gullwing which means they are much less prone to that it was the perfect limited edition pink workshop range. truck box is designed with splitting or tearing,” he said.
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 17 HAND, POWER & TRADE TOOLS
“Other changes include the new colour for extra comfort, and PVC reinforced lids scheme with two tone inner/outer fabric for strength and easier access on the K7422 colour, extra padded shoulder straps, thick wide mouth bag,” Mr Alexander said. stainless handle for comfort, additional side The range includes a mobile utility bag reinforcement for greater rigidity on the (700mm), tool tote bag (450mm) and wide K7421 tote bag, removable internal divid- mouth bag (500mm) with many more Kincrome has reviewed its range of soft storage ers in the K7420 mobile bag, soft hip pad exciting bag options arriving shortly. products.
New look grinder The new WORX WX710 grinder is the guide the grinder where it needs to go. perfect combination of looks and power, This also ensures the WX710 is more com- designed to impress both, DIY’ers and fortable, safer and more efficient to use. tradesmen. The new look grinder is just Just some of the new look grinder’s one in a range of the new and improved features include a tool-free safety guard colour schemes at WORX. adjustment, a safety on/off slider switch With an ultra-modern industrial de- for simpler accessible control, as well as a sign, the 100mm WX710 angle grinder gear, with the gear housing made from a- ticks all the boxes. It has slimline angles, durable, eco-friendly aluminium. a powerful motor and the confidence of a With a whopping 860W of input power, three year warranty to top it all off. a lightweight two kilogram body and an The grinder utilises a detachable auxil- impressive disc rotation of 12,000 per min- The new WORX WX710 grinder is the perfect iary handle to ensure users can effortlessly ute, the WORX WX710 really can do it all. combination of looks and power. switch between left or right handling to For more information visit www.worx.com
New 20V Max Lithium-ion Reciprocating Saw WORX is proud to unleash its 20V Max Lithium-ion Reciprocating Saw WX508.9 to join its ever expanding PowershareTM Range, providing users with the conveni- ence of a cordless saw. WORX has unleashed its 20V Max Lithium-ion Working with multiple materials Reciprocating Saw WX508.9. and applications can be fickle, but with a no-load speed of 2,900rpm and also designed for comfort, with the rub- a pendulum function, users will benefit ber over-mould offering a cosy grip. The from improved cutting efficiency when adjustable pivot foot plate also provides sawing through wood, PVC pipe, and a larger contact surface for stability, and not sacrifice on performance, while the steel materials. when it comes to power, the WX508.9 has Powershare® 20V battery is interchange- The saw is simpler thanks to the tool- plenty to get the job done. able with other WORX tools, so users can less blade change system, ensuring time The High-Capacity 20V Max Lithium conveniently switch batteries between is spent more efficiently. The WX508.9 is battery is cordless for on-the-go, and does tools, and never be short for power.
Milwaukee expands its pliers offering Milwaukee Tools continues to expand its experience for the user. All pliers are forged hand tool offering with the introduction of for strength and feature rust protection for five new trade specific plier designs. extended tool life. Offering a winning com- The new designs include: the ironworker, bination of ergonomics and best in class the long nose, side cutting, fencing, crimp- performance, the new pliers are an exciting ing, PVC/Oil filter, nipping, cable cutting and addition to Milwaukee’s evolving hand tool linesman’s pliers. Each plier features durable offering, which now features almost 200 so- over moulded comfort grips, which prevents lutions for the trades. The new plier line-up peeling and adds comfort when completing again demonstrates Milwaukee’s commit- tedious tasks. Developed to provide appli- ment to offering innovative solutions for the cation specific solutions for the electrical, professional tool user. mechanical, HVAC, MRO and remodelling For more information visit: trades, the new pliers are designed to elimi- milwaukeetools.com.au/hand-tools/ nate downtime and provide a more efficient non-powered/pliers/
18 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 HAND, POWER & TRADE TOOLS
Milwaukee’s® right angle impact driver delivers on speed Milwaukee Tools recently introduced its M12™ ¼” Hex right angle impact driver (M12BRAID-0), a pertinent addition to its growing M12™platform. Delivering higher rotational torque and a fast paced rotational tapping mechanism compared to a standard drill, the new impact driver offers industry leading durability, as well as power and ac- cessibility in tight access applications. Milwaukee recently introduced its M12™ ¼” Hex Built to withstand tough worksite con- right angle impact driver. ditions, the new impact driver is armed with 68 Nm (600 in-lbs) of torque for fast, Designed to optimise cordless per- reactionless fastening. Satisfying both size formance and reduce down time on and performance requirements needed by the jobsite, the new unit also offers ad- users, the impact driver features a com- vanced electronics through REDLINK™ pact 35.6 mm head diameter and a rapid Intelligence, while conveniently featur- driving max speed at 2,425 RPM. ing a recessed forward/reverse switch For added accessibility the unit fea- which helps to minimise accidental tures an extended paddle switch for actuations. operation from multiple gripping posi- Th e new M12™ ¼” Hex Right Angle tions, while also featuring a built in LED Impact Driver is compatible with the light to illuminate the work surface, entire M12™ platform, which now off ers leading to a more productive and safe 40 plus cordless solutions for professional work area. tool users.
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 19 HALF-YEARLY REPORT
Market report 2016 Half yearly update - by Geoff Dart
Overview some 68 trade stores under the Wattyl discussions were at early stages. Over • Th e past six months has seen signifi cant and Solver brands. the past few years, it appeared as if TGG changes in the home improvement and • Wesfarmers/Bunnings acquire Home- had been preparing for an IPO, chang- building products market that will base in the UK for around $705 million ing the franchise model for that of a impact the future of the industry. in the process of launching the Bunnings corporate. • Woolworths announce an end to its brand. Further investment is reportedly • Th e acquisition, if successful, will expand failed venture into the lucrative home another $975.5 million. Certainly an and strengthen JB Hi Fi’s penetration of improvement market. Th e sale process exciting time for Australian business the value end of the home improvement is in train with several parties vying for and proves we can take on the world. market. Th is will combine TGG's posi- some or all of the business. Th is ranges • Category leaders reliant on Australia and tion as Australia’s leading retailer of from single interest in Home Timber & New Zealand (ANZ) for their future can kitchen appliances and growth in Better Hardware (HTH) through to the pur- learn a lesson from Bunnings and take a End fl at pack kitchens with JB’s DNA of chase of both entities, being HTH and strategic view of their respective businesses. technology and the ability to play a major Masters and various property options for Global pressures, such as Sherwin Wil- role in the $3.5 billion home security and the Masters sites (stores and vacant land). liams entering the ANZ market will have automation market. • Sales out of Masters increased each signifi cant consequences for local players. • Th e current players in the home improve- quarter and discounts accelerate. It is too • Signs emerge that new housing starts ment market have limited ability to deal early to call if quarter three activity is are coming off the boil as an over- with complex product and service off ers. leading to an end of FY liquidation sale. supply builds up, especially in the • This brings to reality the evolution of • Sales out of HTH decline in quarter three apartment sector. the hardware market over the past two with a number of members question- • Industry still in the dark ages with decades to that of home improvement ing the future and seeking alternatives. all players in denial over the future of and lifestyle. Metcash, as an interested purchaser of e-commerce. Sales online were 1 per • Consolidation of the industry will con- HTH, are being faced with ACCC ques- cent ($460 million) during 2015/16 and tinue over the next decade across all tions around ensuring competition in will increase over the coming fi ve years categories as the market globalises. Big the wholesales sector and the need for to 5 per cent ($2,670 million). fi sh in a little pond, such as Australia, independents to have a choice. • Retailers investing more in bricks and will be challenged by global brands. Th is • Sherwin & Williams spend around $11 mortars will be impacted during this includes suppliers and retailers. billion to acquire Valspar, the owners time with a signifi cant number of small, • Bunnings has been the most adventur- of the Wattyl, Solver and Pascol brands medium and big box stores closing down. ous and innovative in this regard, which across Australia and also the Taubmans • JB Hi Fi make a play for Th e Good hopefully inspires others to venture off brand in New Zealand. Th is also includes Guys. At the time of writing this report, shore and into the big wide world.
% Mkt % No. of Market share by major retailers Retailers ($m) 2015 YTD+ Comment 2016 is shaping as another strong year Chge Share stores for Bunnings and Reece, both leaders in Bunnings (excl. NZ) $8,887 $8,090 10.9% 22.4% 300* Going from strength to strength. 40 their respective segments. Nat Build $1,500 $1,100 n/c 3.1% Senior management change and better focused. Slight gain in a tough market. Member base shrinking and Mitre 10 (excl. NZ) $1,740 $1,344 2.5% 3.7% 50** At the time of writing, Woolworths JV’s challenging. had not received binding offers to buy Reece (excl. NZ) $1,872 $1,530 9.0% 4.3% 450 Going from strength to strength. Impact of acquisitions = growth. Member base shrinking, all or part of the home improvement Home Timber & HW $937 $750 6.0% 2.1% 43** venture. sales flattening. 4 new format stores Qtr1 with 50% planned to be converted Th is process is expected to extend into Masters $930 $1,130 25.0% 3.1% 63 by YE 2016. This has come to a halt amidst exit from market. the 2017 FY with Metcash awaiting a Total will stay at the current level of 63. New GM and cost cutting may not be enough to see growth. hand down from the ACCC reportedly, Tradelink (excl.NZ) $730 $535 (3%) 1.5% 200 June 30. Th e market is ripe for a strong Number 3 behind Reece and Bunnings in plumbing. number to emerge from the amalgama- HBT $359 $280 4.0% 0.8% 500 Hardware stores, excludes Industrial etc. tion and expansion of the Masters and SUB TOTAL $16,955 14,759 8.8% 41.0% 1,656 HTH businesses. TOTAL $46,646 $36,034 3.0% 100.0% n/a +YTD = As at Qtr. 3,2016. **Company owned or JV
20 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 Market size ($m) by category First three quarters of 2016 FY saw most categories improve with ‘fi nishing/value added’ ones (e.g. kitchens, bathrooms and fl ooring showing stronger growth). Th is is on the back of continued growth of the renovation segment.
Category 2009 2010 2011 2012 2013 2014 2015 YTD 16 Timber 4,480 4,569 4,660 4,427 4,206 4,290 4.419 2,265 Plumbing 4,050 4,131 4,214 4,214 4,256 4,426 4,603 2,359 Other/not known* 1,429 2,095 1,570 2,076 2,052 2,054 1,992 1,116 Building Materials 2,750 2,805 2,861 2,861 2,890 2,976 3,062 1,569 Paint 1,430 1,430 1,444 1,458 1,473 1,502 1,547 789 Fasteners 1,120 1,120 1,120 1,130 1,232 1,244 1,269 650 Electrical Fittings, Lights, Accessories 2,650 2,720 2,774 2,912 2,956 3,044 3,196 1,646 Nursery/Green life/Plant care 3,650 3,577 3,505 3,505 3,575 3,646 3,737 1,915 Garden Equipment/Décor 805 788 788 780 788 804 828 426 Locks/Door Hardware 855 881 899 908 917 954 992 508 General Hardware 495 500 505 505 505 515 525 268 Builders Hand Tools 677 684 684 684 694 715 736 377 Power Tool Accessories 555 572 578 578 587 599 617 316 Paint Applicators & Access 580 580 580 586 592 610 628 322 Power Hand Tools (incl.Compressors) 755 777 777 789 801 817 842 432 Power Garden Tools 334 327 321 340 350 361 372 190 Watering Equipment 345 335 332 325 328 338 348 178 Mechanics Tools 321 327 324 327 330 343 357 184 Garden Hand Tools 235 227 225 221 270 278 286 147 HARDWARE DEFINITION 28,119 28,445 28,161 28,626 28,802 29,616 30,356 15,557 Window Furnishings 5,000 5,000 4,950 4,950 4,851 4,996 5,146 2,663 Kitchens (incl. appliances, excl. labour) 2,000 2,200 2,244 2,,266 2,379 2,474 2,598 1,344 Bathroom & Laundry 700 720 734 719 705 733 770 398 Pools & Spas (maintenance) 1,000 950 YTD* 2016931 912 930 958 987 508 Flooring (carpet, timber, tiles) 3,000 3,090 3,121 3,059 2,998 3,088 3,212 1,662 Home Wares Plus (storage, art/craft) 1,375 1,444 1,473 1,502 1,532 1,578 1,641 845 Other Specialists NA NA 653 653 1,771 1,844 1,936 1,139 TOTAL $40,591 $41,849 $42,267 $42,687 $43,968 $45,287 $46,646 24,116 *YTD Jul-Dec 2015 YTD* 2016 Market Shares YTD 2016* Th e top 10 players account for 44 per cent of the home improvement and lifestyle market across the
trade and DIY56 segments. 56 per cent comprise corporate and SME specialists and independent retailers. Th e merger of Masters and Home, for example, into one brand with a multi-format store network will create further consolidation. Th e same is the case for suppliers, exemplifi ed by the recent acquisition of Valspar by Sherwin Wil- 56 liams and JELD-WEN acquiring Trend Windows. *YTD July-March
Bunnings NatBuild Mitre 10 Masters Home • Change brings both challenges and opportuni- HBT Reece Tradelink Others L & H ties for retailers and suppliers. Calendar 2016 will certainly be a time for suppliers to ensure they have plans in place to take advantage of Store numbers* and trends by channel Bunnings NatBuild Mitre 10 Masters Home the evolutionary process. • Industry consolidation includes all elements HBT ChannelsReece to Tradelink2016 Others2025 L+/- & HVs Comment Market 2016 of the supply chain, from marketing, research Big Box 380 460 77 The largest pending impact is the possibility that Masters (63 stores) will and development, manufacturing to sourcing, be closed down (converted to a shopping precinct?). Major issue is largely 7,000 people working at Masters and if they can be deployed into distribution and retailing. other retailers. Closing down may see up to 15 stores go to Bunnings and hence, 48 less Big box stores. • Th e growth of e-commerce is outpacing bricks and mortar retailing in most sectors, including Specialists (Corp. & 2,500 2,150 (420) Although numbers declining, the large are getting larger and helping to buying groups) drive consolidation. home improvement, and is driving the closure
Specialist 12,000 9,756 (2,422) The largest fall in store numbers are the Specialist Independents, of ‘shops’ in all channels. Independents including lighting, window furnishings, flooring, cabinet makers etc. • Whilst a signifi cant number of Australian Hardware Buying 1,300 1,190 (169) Store numbers being impacted by acquisition, closures and owners retailers and suppliers lag world best practice Groups retiring. Mitre 10 and Home to be adversely affected. in this vital area, there is a clear opportunity Hardware 1,200 1,024 (256) Similar story as members of Buying Groups. Independents for suppliers to take advantage of higher gross Internet ! ! ! The Internet is certainly a “Store” in the true sense of the word, and in margins by going direct to customers, being 2016, accounted for an estimated 1% of sales, being $460m. This is expected to increase to 5% by 2021, to $2.67 billion. No category is the end user and controlling the last metre. immune! • Investing in and capitalising on organic (range Other 1,380 1,194 (208) Fragmented and includes a range of “mixed use” businesses selling hardware. extension and aligned categories) growth and TOTAL STORES 18,760 15,775 (3,578) inorganic (mergers and acquisitions) growth will ensure improved revenue, profi tability and *Company reports and Yellow pages importantly, market share growth.
All surveys, forecasts and recommendations in this or any subsequent report are made in good faith upon the basis of information before us at the time. Not withstanding anything herein contained, neither DGC Advisory nor its servants or agents will, except as the law may otherwise require, be liable for any loss or other consequences, whether or not due to the negligence of DGC Advisory, or its servants or agents arising out of the services rendered by DGC Advisory, its servants or agents.
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 21 NATIONAL CONFERENCE 2016
HBT tops 600 members during
With the Hardware & Building Traders (HBT) group topping 600 members this month, and growing by over 100 members in just 12 months, many in the industry are asking - how do they do it?
hen posed with the question HBT’s strong growth during the HBT 2016 National During the general conference session on the Conference held in Townsville fi rst morning of the conference, Mr Starkey Wmid-May, group manager Tim Starkey said presented an extensive industry overview, the group’s success lies not only in the sim- which included specifi cs on the group’s plicity of the business model, but also the impressive membership growth. Mr Starkey relaxed nature of the group. said it had been an extraordinary six months “Th is year it seems our newest members and as of the beginning of May, HBT had 594 have commented on how enjoyable our stores with 10 in the offi ce in process. conferences are, particularly our trade show “Normally we see no new membership – which stood at 117 suppliers this year – and activity in December, because most of the how easy it is to do business in such a friendly independents are too busy to worry about and warm environment. Combine this with talking to us. But we were booking up new just kept going,” he said. our minimal fees, it seems new members members all the way until we closed on “Th ere are a lot of unhappy campers out choose us because they need stability, as well Christmas Eve. Again, nothing normally there, whether they are in other groups look- as to be part of a group that does not require happens in January (in regards to new mem- ing for alternative solutions to their buying unnecessary costs,” Mr Starkey said. bership bookings) but when we came back it issues and we continue to be amazed at how
April April STORE GROWTH – SINCE WE STARTED 2015 2016 SA 60 71 QLD 100 125 % April 2014 – 68 members VIC 152 184 Growth ACT 3 5 17.4 April 2015 – 113 members % Of Total Group NT 5 5 Business NSW 119 133 April 2016 – 138 members 19.7 TAS 27 30 WA 40 41 Total 506 594 Largest group by membership in the 1997 Today ‘industrial’ space
As at April 2016
Net membership numbers since HBT began. The last two years have shown a serious jump in The industrial group is now about 20 per cent of the HBT’s business per quarter. group’s total business. NATIONAL CONFERENCE 2016
its 2016 National Conference
many independent businesses there are out “It is still not clear if M10 are look- there, particularly timber merchants. We ing at all or only part of HTH. In the last few see those guys looking for an insurance days the ACCC has written to industry par- when policy for the future, particularly with all the ticipants, seeking their views on the eff ects Woolworths change and all of the corporate activity that of a merger. Obviously were these businesses deal with Hydrox is going on in our industry,” Mr Starkey said. to merge, then independent suppliers and Holdings it should add about Mr Starkey said HBT’s industrial and tool independent hardware stores go from having fi ve per cent to its bottom line in terms division has had phenomenal growth in the two large independent wholesalers down to of overall profi t of the group – so interesting last three years, reporting that the ITT group having one large independent wholesaler and times,” Mr Starkey said. is now unequivocally the largest of the inde- that appears to be the issue that the ACCC is When looking at Mitre 10, Mr Starkey pendent groups by membership numbers, in focusing on,” Mr Starkey said. said it was diffi cult to acquire any numbers this division. Mr Starkey posed the several possibilities because the group does not segment below “Our industrial and tool division has on the Masters’ sale, including the possibil- putting hardware and automotive together. grown very, very strongly over the last two ity that Lowes might take Masters out of the “So if M10 do acquire all or part of HTH, to three years. In that market place, we see joint venture. might they then sell that combined hardware Total Tools as becoming increasingly aggres- “Remember Lowes do have an interna- division once they rationalise it and improve sive and for the guys in this specialist space, tional business. It just recently bought a it and presumably cut some costs out of it, they probably focus on Total Tools in the way reasonably sized business in Canada. Inter- particularly on the distribution side? Aft er that traditional hardware stores might be estingly in Canada they have acquired a rela- all, they did sell one of their most profi table concerned about Bunnings,” he said. tionship with ACE Hardware, because the businesses recently, which is the automotive business they have bought (in Canada) has division, in order to help fi x up their balance Industry overview the marketing rights to use the ACE name. sheets so they could concentrate on their Mr Starkey also presented an extensive Could ACE Hardware buy into the HTH IGA business, which we all know has been industry overview, during the general business or the Mitre 10 business or both?” under signifi cant pressure.” business sessions, beginning with “ACE Hardware now operates in many “I think what is clear is a possible re- Hydrox Holdings. countries. Th ey have a signifi cant purchas- rationalisation of the wholesaling industry “It is expected at the moment that Woolies ing network out of China to feed their very down to one major national independent will take Lowes out and then sell or dispose successful US network of stores and their wholesaler with signifi cant product lines, is of each of Masters and HTH. Th ere are quite international operations. So it is interesting going to have some real implications for the a number of people looking at HTH and to note that ACE Hardware ran the ruler independent retailers that need a warehouse Masters or diff erent components. Anchorage over Mitre 10 when Mitre 10 was having to support them. But I also would think there Capital Partners are having a look at it and diffi culties many years ago and the CEO of would be a lot of suppliers who are wonder- are being advised by industry advisor, Geoff ACE Hardware was a keynote speaker at the ing what that means for their future as well,” Dart,” he said. Mitre 10 conference. I read somewhere that Mr Starkey said. NATIONAL CONFERENCE 2016
Grand Champion Timber - Hume Growth Champion Timber - ITI Grand Champion Hardware & Building - Growth Champion Hardware & Building Doors and Timber – Patrick Antoine. Australia – Justin Newman. Macsim Fastenings – Ian Mathews. - River Sands Pty. Ltd. – Kim Runje.
Recognition awards ITT Store of the Year – Cost Less Bolts currently, with HBT customers given the The Supplier of the Year Awards were also & Industrial Supplies, Ringwood VIC – chance to win one of six trailer give-aways, presented on the morning of the general Steve Gilbert filled with goodies, with each total package business sessions with the awards divided Herbert Hall was awarded HBT worth around $14k. into four categories: Grand Champion Store of the Year after it had massively Next year’s promotion will offer over in Timber, Growth Champion in Timber, increased its support of the group, $68k in prizes including a jet-ski and 4WD Grand Champion Hardware & Building and according to Mr Starkey. buggy, aimed specifically at tradies looking Growth Champion in Hardware & Building. “This store has remained extremely posi- to win a prize that they may not be able to The awards were selected from amongst tive with suppliers, has shown great growth afford themselves. The three major, high the suppliers who choose to participate in in-store, attended all the conferences, while value prizes, run later in the year but for a HBT’s Supplier Support Program and are also strongly representing HBT to suppliers,” longer period of time, and will be drawn voted upon and nominated by members. he said. early 2017. Late next year, the group has “There were 68 nominations shared by Cost Less Bolts & Industrial Supplies was aimed even higher with a new Ford Mus- 22 suppliers, then shortlisted suppliers who the first store to win the ITT Store of the tang up for grabs for HBT customers. had more than three nominations from Year award, with Mr Starkey saying these A new Key Supplier Program is also members and we looked at issues such as members had been instrumental in helping underway, which will highlight key suppli- support for conferences, growth in business the ITT group get up and running. ers in each category or sub-category. volume and general support for the aims of “Cost Less Bolts Supplies got a lot of mem- “The idea is that we will go to suppli- the group,” Mr Starkey said. bers together in the early years and got them ers who we think support our members talking to us. They have helped to persuade a and invite them to be a key supplier in Supplier of the Year lot of suppliers to support us and are incred- this program. And this will come with Award winners: ibly positive,” Mr Starkey said. a package of costs and opportunities for • Grand Champion Timber - Hume Doors being part of it. It’s a work in progress,” and Timber – Patrick Antoine New initiatives Mr Starkey said. • Growth Champion Timber - ITI Aus- HBT introduced several new initiatives at A core program specific to H Hardware tralia – Justin Newman the conference, including a new website with has also been launched including new • Grand Champion Hardware & Building - a fresh new look. New features of the web- marketing rebates, marketing material, Macsim Fastenings – Ian Mathews site include allowing members to search for with every H Store experiencing positive • Growth Champion Hardware & Build- products more easily, with category ration- growth since changing over, according to ing - River Sands Pty. Ltd. – Kim Runje alisation a focal point, as well as being more Mr Starkey. mobile friendly. A new home branded product for the Store of the Year Awards were then pre- A new trailer promotion is also being run group is also now underway, according to sented, with two store awards manager of member services, presented during the morning, Aimee Innes, who said the home including traditional HBT product will be available in sev- Store of the Year award and the eral different categories and will first Store of the Year Award to be available to all members. be presented to an Industrial and Tool Trader (ITT) member. McGrath Foundation sponsorship Store of the Year One of the major announce- Awards: ments to be made at the confer- HBT Store of the Year – Her- ence, was HBT’s recent sponsor- bert Hall, Charters Towers HBT Store of the Year – Herbert Hall, ITT Store of the Year – Cost Less Bolts ship of the McGrath Foundation QLD – Chris Nelson Charters Towers QLD – Chris Nelson. & Industrial Supplies. at the beginning of May. NATIONAL CONFERENCE 2016
“The intention going forward is to struc- new decking timber on the internet and “Webrooming is by far the top sales ture these in-store promotions around this hope something of good quality turns up. method in the timber and hardware space. sponsorship arrangement. The foundation’s Your customers want to make sure it looks We want to keep working with the group work tracks highly among the demograph- good before they’re going to spend all the and keep driving this so that we can build ics of our member’s customers, with men money, right? Webrooming is something a stronger online presence across the HBT relating to it because of the Glenn McGrath we see happen a lot in this industry, and it is group,” Charles said. connection – and they say a trade related, something we can take advantage of because hardware related demographic is absolutely it helps us get that foot traffic in the door, to Gala dinner spot on,” Mr Starkey said. then carry on with business as we do day to The gala dinner was a night of excitement “The foundation’s main focus is to place for HBT members, particularly when the a breast care nurse in a locality, but it costs traditional cash prizes were awarded. around $140k for one nurse and they will not The first prize to be awarded was for place a nurse unless they are confident that the Haymes Paint promotion, which was they have the funding for three years. We are a getaway to the El Questro station in the the only hardware organisation in Australia Kimberley of WA, including airfares, accom- that has a partnership with the McGrath modation, $1,000 towards meals and $2,500 foundation, which gives our members a seri- spending money, presented by Matt Haymes. ous point of difference,” he said. Kent’s H Hardware, Dave and Joan Kent, Starting in July, store events, incorporated said they started supporting Haymes Paints with in-store sales, will be run with exclusive a few years ago mainly because Haymes sup- pink product brought into HBT stores, along ported the independents so well. with a McGrath rebate. Dave and Joan Kent from Kent’s H Hardware won Suppliers also contributed to the yearly first prize in the Haymes Paint promotion. cash prizes awarded to members on the Focus on digital night, via the Supplier Support Program HBT also touched on the digital world day,” he said. combined with HBT’s contribution, total- throughout the conference, frequently high- Webrooming allows retailers to send ling $87,374.43. lighting to members on how to use digital requests through to their suppliers, so that platforms to evolve their businesses. suppliers can deliver information against Nine prizes were drawn including: Manager of member services, Aimee those requests and retailers can quickly and 1. $26,212.33 – Greg Oliver – Olivers’ Hard- Innes said that $278 million was spent online easily fill those shelves. ware & Building Supplies last year in the hardware industry alone, “By providing this platform, you can now 2. $17,474.89 – Brian & Margaret Godding – with tools and equipment the dominating get that information quickly, for several Moorooduc Timber & Hardware product and no major player in the online thousand, up to tens of thousands of SKUs 3. $13,106.16 – Nathan & Kaylene Crane – space at the moment. for your digital shelves. And you’re not going Beau-View Trade Supplies Charles Nicolson from Vesta presented to lose that face to face contact with your 4. $8,737.44 – Chris & Anthea Moorfoot an extensive presentation on the importance customers. If anything, you’re going to get – Yarra Junction Timber & Hardware of online visibility and what is known as end- more of it because at the end of the day, they Five equal prizes of $4,368.72 were less aisles. will come into the store after researching the awarded to: “One of the big advantages of the big green product online,” Charles said. 5. Fred Treble – Freds Lagoon Hardware boxes is that they have got a large number of Webrooming now accounts for 36 cents 6. Jason McElligot – Walker Bros Gosford SKUs. Online, you have the ability to actually of every dollar that is spent in store, accord- 7. Cheryl Newing & Sue Marsh – Virginia display as many SKUs as one of those big box ing to Charles, who said this is why it is so Building Supplies stores. If customers come into store and you powerful for retailers. 8. Andrew & Dee Henderson – Hendo’s have several products on the shelves, as well “When you think about every dol- Power Tools as other products that you can get in quite lar that goes through your till every day, 9. David and Hilary Wheeler – Gracemere easily, you can just as easily take all those think about the fact that 36 cents of every Hardware products and make them visible to your cus- one of those dollars has in some way been tomers online,” Charles said. influenced online before people come into Dinner guests were then entertained with “I want to introduce a concept to you your store. If you don’t have that online Tom Berger who amazed the guests with his called ‘webrooming’. Webrooming is when visibility, then where is that 36 cents com- psychic powers. customers go online first, to research eve- ing from? A supplier’s website maybe, if rything they can about a product, before you’re lucky? So by getting that online 2017 coming in store to make a purchase. Web- visibility, you are driving that 36 cents in With the HBT group growing so rapidly rooming is actually the most popular form your direction,” he said. it was expected that this would be the last of online trading in an industry like timber Seeing this opportunity, Charles said national conference the group will hold in a and hardware.” Vesta have developed a product distribution rural town, with Sydney ear marked for the “Your customers don’t go and buy their platform called Vesta Central. 2017 conference. NATIONAL CONFERENCE 2016
BND AUSTRALIA BRADFORD INSULATION
BND Australia had an outstanding response to the new INGCS range CSR Bradford is Australia’s leading supplier of insulation, acoustic of tools. HBT members who visited the stand were extremely impressed control and energy saving products for residential and commercial by the quality (and pricing) of these tools made to meet the needs buildings. Bradford can help you improve the energy efficiency of the Australian tradie. Also introduced was the INGCO Air Tool of the building envelope and have been helping Australians for range and petrol powered tools such as the industrial chainsaw. BND over 80 years with insulation knowledge, innovative products and Australia just added another quality range at a competitive price point. technical expertise. Check out www.bndaustralia.com.au for more information.
COWDROY CYCLONE
Cowdroy said that it was exciting to be part of the 2016 HBT conference, Cyclone is an iconic Australian brand that has been around since where the company showcased its revitalised doors track range and 1898. Cyclone’s product offering includes a complete range of relaunched its seals range. During the trade show, Cowdroy presented fencing products at an affordable price, offering great value for revitalised branding, packaging and merchandising material along with money. Cyclone’s range of products includes gates, fence posts, new products. Cowdroy was very well supported by HBT members at the prefabricated, plain and barbed wire; as well as a range of fencing show and appreciated seeing old friends again. tools and accessories. For more information on our products visit www.cycloneproducts.com.au. NATIONAL CONFERENCE 2016
EASY SHED KINCROME
Australian owned and committed to local production, EasyShed has Kincrome Professional Quality Tools stands at the pinnacle of quality been a leading designer and manufacturer of DIY assembly storage toolmanship. Its broad range and quality is superior in lifetime, sheds for more than 30 years. EdgeSAFE, ScrewSAFE, 5 Step performance and innovation. This commitment to excellence is why Assembly, 25 colours, three wall height options - the flexible range Kincrome has become a market leader. Kincrome believes its customers of sheds was a great addition to the HBT show experience. and consumers deserve the best product in the market. Kincrome is immensely proud of its heritage in Australia and continues to be 100 per cent Australian owned.
KLINGSPOR MACSIM
Klingspor Australia was pleased to display at the HBT conference once On behalf of all its employees, Macsim would like to thank all HBT again as a major sponsor. Klingspor are a German manufacturer of high members for their continued support. The company said that it was quality abrasives with more than 120 years of experience. Klingspor’s an honour being awarded the ‘2015 Supplier of the Year – Grand popularity with HBT members continues to grow. Its special offer new Champion Hardware and Building Supplies’. As the recipient of diamond wheel range, on a retail display stand, proved to be a great this award, Macsim looks forward to further nurturing its valued success at the HBT trade show. partnership with the HBT Group. NATIONAL CONFERENCE 2016
MAXISAFE MERLIN SOFTWARE
Techware is a dynamically progressive business with over 35 years of Merlin Software has provided software and services to the retail experience in manufacturing personal safety products. The Maxisafe industry for the last 35 years. Cobalt Retail, the company's business range is recognised for its unique innovation, high quality and management software, has been created through years of experience innovative features. The company's vision is to ensure that its ‘brands and user feedback. Merlin Software takes pride in its customer have got you covered’, while its number one priority is customer service and will continue to build a strong relationship with HBT, service. Techware also guarantees that all Maxisafe products are and help the members to grow their business. manufactured and presented in the highest quality possible.
RICHMOND RUST-OLEUM WHEEL & CASTOR
Family owned Australian company, Richmond Wheel and Castor Since 1921, Rust-Oleum has provided product innovation, technical exper- Co, recently celebrated its 58th year of operation. Offering a range tise and customer support, giving your customers the best solution. While of wheel and castor products, the company is backed up with in- Rust-Oleum and HiChem Industrial products offer a quality finish; survey house manufacturing allowing it to remain innovative, while main- marking, rust treatment and metal protection are just the beginning in taining its quality. Its products have evolved to include pallet trucks, the range. Zinsser, 2X, Universal, Stops Rust and specialty brands enhance trolleys, hand trucks, table-lifters, conveyors, load skates, site safety, any project, while Australian made Rust-Oleum Motospray products have plastics, storage and much more. restored, repaired and protected automotive projects for over 30 years. NATIONAL CONFERENCE 2016
SIMMONDS GROUP WOODHOUSE TIMBER CO
The Simmonds Group is a premier wholesaler of a wide range of The Woodhouse Timber Company distributes value added building prod- timber products for the housing industry, commercial construction, ucts from a network of distribution warehouses. With new facilities opening home renovations and industrial markets. Simmonds is a growing in WA and SA, it is well placed to service all pack and broken pack needs. Its global player in timber and related products and HBT play an extensive portfolio includes Internal FJ Mouldings, MDF Primed Mould- important role in its business. With deep experience in timber sales ings and External H3 LOSP Structural and Decorative Products, marketed and distribution, as well as dedicated import/export professionals, under the Woodhouse EdgeLine, Woodhouse Weatherproof and Alpine Simmonds Group are the right choice in wholesale timber. MDF brands.
SOUDAL
Soudal is Europe’s leading independent manufacturer of sealants, construction foams and adhesives. Established in 1966 by Vic Swerts, Soudal is 100 per cent family owned, producing quality products in Turnhout, Belgium. For almost 50 years Soudal has offered quality, tailor made solutions and a premium after sales service - all elements of Soudal’s true success story. Over 2300 employees work in 44 different branches globally.
NEWS
DesignBUILD 2016 celebrates its 30th year DesignBUILD 2016 returned to Mel- several categories including: Landscape the architecture, design and construc- bourne in May and celebrated its 30th year & Outdoor, Structural & Materials, Inte- tion industries, while also offering a with a new outlook and fresh features. rior Fixtures & Finishes and Technology. dedicated platform for the new players The 2016 show saw a new show floor DesignBUILD Incubator and and university students to connect with layout to allow for a more fluid expe- DesignBUILD Raw were two high- industry on a commercial scale. rience onsite. Dedicated show floor lights launched at the 2016 show, which DesignBUILD Incubator sectors segmented the show floor into showcased new and emerging talent in DesignBUILD launched a new show floor
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 31 feature in 2016, the DesignBUILD Incu- bator, which was designed to provide a launch platform for fresh talent and new ideas in the industry. Incubator saw five emerging industry talents rewarded with free exhibition space and allowed them to present in front of key industry decision makers. Candidates spoke of the products’ benefits and also received direct industry feedback to help product development.
DesignBUILD Raw DesignBUILD also teamed up with RMIT and Deakin University to present the next generation of architecture and design professionals, in an exciting dis- play of upcoming talent. This saw tertiary students competing to have their designs for the event entrance feature, the thea- tres and central networking bar, awarded as the best design. The RMIT winners saw their designs constructed on the show floor. DesignBUILD event manager Ali Mead said that it was important for the industry to have visibility over new and emerging talent, through integrating university stu- dent projects and giving entrepreneurs a platform to showcase their work. “A new level of innovation and inspira- tion, offering an unparalleled opportunity for networking among the architecture, design, construction and landscape indus- tries, has helped to make DesignBUILD 2016 a stand-out event,” Ms Mead said. The overall theme of the event was col- laboration, with cross-disciplinary net- working taking a key role to all features at the event. Under the central theme of collabora- tion, the 2016 speaker program was split into three key topics including: compli- ance, sustainability and innovation. The program featured leading interna- tional keynotes and local peak authorities to discuss and debate the key trends across all disciplines in 2016. The Australian Construction and Industry Forum (ACIF), also used the event to announce its 10-year forecast at the ACIF breakfast during the show. For more information on the 2017 event visit: www.designbuildexpo.com.au Tradies and manufacturers big winners from Budget More than 300,000 tradies and builders are winners from the 2016-17 Budget, accord- DesignBUILD 2016 returned to Melbourne in May, with a new outlook and fresh ideas. ing to Master Builders Australia’s chief
32 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 NEWS
executive offi cer, Wilhelm government has also laid the Harnisch, who said those groundwork for long term who are set to benefi t growth with a major invest- include young Austral- ment in productivity-boosting ians looking to enter the infrastructure,” she said. manufacturing industry, Growth is set to remain below as well as businesses who trend for the next year, with agree to internships for subdued business investment young job seekers. to continue and muted wages Mr Harnisch said the growth to place continuing Budget will also boost pressure on revenues, according building industry confi- to the Budget, while the govern- dence through targeted ment’s 10-year enterprise tax growth measures and a plan is also considered a positive credible budget repair for big business, which operates strategy. on longer investment cycles and “It will enhance the is a signal that investment will capacity to strengthen The Australian manufacturing industry has had diffi culty attracting youth into the sector. be more competitive. the nation’s economic Australian manufacturing stability, future growth path and greater in more productive enterprises, while is also changing, according to national investment; which are fundamental also giving workers a better reward for head of manufacturing for Grant requirements for a strong building t h e i r e ff o r .t Thornton Australia, Mark Phillips, industry,” he said. “By acting now to move towards more who said that while original equipment Business council chief executive, competitive business taxes and making manufacturing is exiting Australian Jennifer Westacott, also said that the inroads on bracket creep on individuals, shores, new advanced manufacturing best way to boost growth is by giving the government has given the economy is taking its place and transforming the businesses greater capacity to invest a much needed shot in the arm. Th e Australian manufacturing landscape.
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JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 33 NEWS
“What has been lagging in this transi- Systems, was recently renamed AURES “We have launched the AURES KOBA tion is the development of the manufac- Technologies. Purchased in 2013 by the tablet which works as a tablet or can be turing workforce. While traditionally French based AURES Group, J2 Retail placed in a dock for a more traditional touch it has struggled to shake the stigma of Systems has become a major provider terminal operation. We also have some new a prosperous career, the government’s to retail and hospitality businesses tablets in development which are set to bring youth initiative provides an opportunity throughout Australia and New Zealand a new sense of style,” Mr Wild said. to invigorate the sector’s workforce,” Mr with companies such as Subway, Hoyts Phillips said. Cinemas, Forever New, Cue, Retail New national marketing The manufacturing industry has found Food Group and ANZ Stadium all in the manager for Total Tools it difficult to attract youth into the sector, J2 stable of customers. Total Tools has appointed a new national with 41.2 per cent of the manufacturing The name change finalises the merge marketing manager, Damian Lucas. Mr workforce classified as mature age workers, of J2 Retail Systems with AURES and Lucas brings with him a wealth of experi- including 25 per cent aged between 45 and in doing so creates one unified group ence in several heavily competitive retail 54 years, resulting in manufacturing hav- under one brand. environments. ing the oldest workforce in the Australian “Our approach to this brand change is He has held a number of senior mar- economy. that we have a new name, same solutions keting positions in retail over the last 10 The Youth Jobs PaTH programme and an exciting future. Our customers years, including working at Kmart, Coles provides an opportunity for Australian will not notice any major changes, albeit and The Good Guys and more recently manufacturers to attract young workers to a different logo on their invoices. What held the position as national advertising the industry, while gaining a foothold in they will notice is a broader range of manager at Bunnings. In 2012 Mr Lucas the labour market. The internship place- products as a result of the integration of completed his Master of Marketing at ment is focused on matching job seekers AURES and J2 product ranges,” AURES Monash University. and businesses, allowing young workers to Technologies Australian managing gain hands on experience in a workplace director, Phil Wild said. while receiving a small income. Busi- AURES Technologies recently nesses that take on interns will receive reported that it is committed to the ongo- an upfront payment of $1,000, and will ing research and development for new benefit from the opportunity to see what a integrated touch terminals and tablets to young worker can do and how they fit into remain at the forefront of the industry. the team before deciding whether to offer “We have developed a reputation as them employment. Further wage subsidies an organisation that develops high per- are also available from January 1 2017, forming, reliable solutions for the retail when Australian employers will be eligi- and hospitality industries. The land- ble for a youth bonus wage subsidy if they scape is changing as some traditional hire a young employee who has been in industry providers scale back their employment services for over six months. range and investments in retail point of sale technology, but as this is our core J2 Retail Systems renamed business we have no intentions to slow to AURES Technologies down in our quest to remain a force in Leading global point of sale integrated what we do,” Mr Wild said. hardware manufacturer, J2 Retail Besides the focus on performance and reliability of solutions, AURES brings an emphasis on ensuring that
solutions are stylish. Its AURES Sango Damian Lucas is the newly appointed national and Yuno integrated touch terminals marketing manager for Total Tools. have proven popular around the world and more of these modern designs are set to be released. Bondor announces $20 million dollar investment Bondor/Metecno recently announced a $20 million dollar investment in a state-of-the-art production facility in Campbellfield Melbourne, which is due to open later this year. Establishment of the 20,000 square metre factory is a significant gain for the Australian manufacturing indus- try, as it comes at a time when many manufacturers are either closing down
34 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 Bondor/Metecno recently announced a $20 million dollar Australian investment in a state-of-the-art production facility in Melbourne. Made Products from the
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A D U E S N T R W A L I A N O • Won’t shrink, sink, crack, fall out or relocating off shore. Bondor/Metecno’s between employee comfort and the • No waste • non flammable • 13 colours general manager, Geoff Marsdon, said quality of their work output. Because of or make your own • Takes all stains and coatings • Interior grade • 100% the factory is an important addition to this we are seeing many clients choosing Australian made the company’s existing facilities around insulated roof panel systems,” he said. Australia and will facilitate a signifi cant Powder increase in manufacturing capacity while Houzz Australia study fi nds also allowing the Metecno product range home renovation and design Putty to be manufactured closer to the impor- fi rms remain confi dent in 2016 tant markets in southern Australia. The majority of home renovation and “We are pleased to invest in this pro- design businesses in the Houzz Aus- Interior/exterior filler ject. Not only will it allow us to enhance tralia community anticipate widespread No waste, our service and product off ering to our revenue and profit growth in 2016 (70 easy to use, customers, but it also demonstrates our per cent and 64 per cent respectively), non-shrinking commitment to the future of Australia’s according to the 2016 Houzz Australia and water- manufacturing industry and the Austral- State of the Industry Study. resistant. 100% • Wood • Concrete ian economy. Th e factory will primarily The report from Houzz Inc., a plat- Australian • Cement Sheets made. • Steel • Plasterboard produce Polyisocyanurate (PIR) light- form for home renovation and design, • Masonry weight, thermally effi cient, fi re-retardant provides a review of 2015 and an out- Waxstix products,” Mr Marsdon said. look for 2016 for residential renovation Construction of the facility, under- and design businesses, based on data Touch Up Crayons taken by local builders Corplex Pty Ltd, reported by over 400 Australian-based is almost complete. Both the builders professionals. and roof installers, JJ Roofing, are very Revenue growth expectations vary happy with the speed of build, while slightly by industry group with growth Bondor/Metecno is utilising its own expected among 74 per cent of decor building products MetecnoSpan® (a businesses, 68 per cent of architecture A wide range of 13 PIR insulated roofing panel with fire- and design companies, 68 per cent of different coloured retardant core) and MetecnoInspire® (an building/contractor companies, and 72 wax sticks to repair insulated architectural facade system per cent for all other groups. scratches on timber with fire retardant core). To accomplish their projected growth surfaces. No bees wax to Mr Marsdon said the company’s for 2016, businesses are planning to leave white marks. insulated panel roofing systems are increase marketing/sales efforts (63 per becoming an Australian standard. cent), bring in larger budget projects (42 www.timbermate.com.au “This trend has been driven by per cent), offer new products/services Toll Free: 1800 354 811 (Except Mobiles) energy efficiency, installer safety and a (40 per cent) and improve customer Melbourne: (03) 9873 4811 better understanding of the relationship experience (40 per cent). Sydney: (02) 9983 9906
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 35 NEWS
“With a community of more than 1.5 next five years (65 per cent). million unique monthly users and more For more information visit: than 32,000 active home professionals, www.houzz.com.au Houzz Australia has unprecedented insights into the health of the home ren- The National Carbon ovation and decorating industry around Offset Standard the globe. Our research indicates expands healthy growth in 2015 among archi- The Turnbull Government’s tecture, design, renovation, decor, and decision to expand the National other small home-related businesses in Carbon Offset Standard to the Houzz Australia community, and include buildings, precincts a positive outlook for the remainder of and cities has been welcomed 2016,” Houzz principal economist, Nino by the Green Building Council Sitchinava said. of Australia (GBCA). 2015 was a year of revenue growth for The Australian Govern- almost two-thirds of residential renova- ment introduced the National tion and design companies, with over two- Carbon Offset Standard in thirds of companies in the Houzz Australia 2010 to recognise carbon community reporting that revenues met or neutral businesses, products, exceeded expectations in 2015 (69 per cent). services and events. While revenue and profit increased “We applaud the Turnbull in 2015, the cost of doing business Government’s commitment to also went up, according to 61 per cent expand the standard to include of respondents, driven by employee buildings, cities and precincts, wages (47 per cent), product/materials and are delighted to participate costs (45 per cent), and marketing costs in the ‘expert committee’,” says (34 per cent). Many firms also hired the GBCA’s chief executive employees to keep up with growth (27 officer, Romilly Madew. per cent), with only 10 per cent of firms “Our cities are responsible decreasing staff size. for as much as 80 per cent of Across most businesses, around two- our national energy consump- thirds plan to expand and grow in the tion, which means they are at the frontline of any efforts to tackle climate change. Aus- GBCA’s chief executive officer, Romilly Madew. tralia now has more than 1,050 Green Star projects under its belt, and we operating carbon neutral buildings, pre- have claimed the title of the world’s green- cincts and entire cities,” Ms Madew said. est property sector for five years running, Environment Minister Greg Hunt has according to the Global Real Estate Sus- promised to establish an ‘expert com- tainability Benchmark,” she said. mittee’ for carbon neutral precincts and “Australia’s property and construc- cities, and said “the aim is for Australia tion industry is responsible for deliv- to have its first officially certified and ering the building blocks of our cities, operating carbon neutral precinct or from individual buildings to entire city by January 2017.” communities. If we are to meet Aus- tralia’s emissions reduction targets A Team Merchandising’s new and international commitments to business manager limit global warming to less than Eddie Carrigan recently joined A Team two degrees Celsius, we must find Merchandising as its new business man- ways to encourage and empower ager. Mr Carrigan is finding his feet industry to deliver more sus- quickly, bringing with him a wealth of tainable development.” experience in the hardware industry “Expanding the which spans 28 years. National Carbon Mr Carrigan began his career with Offset Standard will Mitre 10's Victorian regional office and allow Australia’s has progressed through roles such as stock property industry control and category management in a to be recognised variety of departments. More recently, he Houzz principal economist, Nino Sitchinava. for creating and managed the national product file storing
36 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 NEWS
system at Mitre 10’s head office. Mr Car- Taiwan Hardware Show As the world’s second largest export- rigan is playing a key role in the ongo- (THS) provides many ing country for hand tools, Taiwan pos- ing progress of A Team Merchandising, opportunities for foreign sesses manufacturing capabilities, material identifying and supporting prospective companies resources and advanced technologies to new clients. He is also working with Designed as Asia’s leading premium produce quality hardware needs for global existing clients and A Team state super- business platform for the hardware markets. In 2014, the country’s hardware visors to maximise their business in the industry, the 16th Taiwan Hardware industry reached an output value of USD$ hardware channel. Show (THS) is this year poised to open 34 billion and is expected to increase fur- Mr Carrigan said, “A Team really is a greater entry windows for international ther with high positive growth rate in the great team to be involved with and it is market players to gain larger trade coming years. exciting to play a part in contributing to share in Taiwan and its corresponding President of Kaigo Co. Ltd, Gerd Keim, our clients’ success.” export markets. said that Taiwan holds an integral role in the hardware business where its robust develop- ment heavily influences macro trends in the international producer market. “This amplifies its position as a key con- tributor to the future growth of the hard- ware sector, generating valuable business and raising competitive standards amongst industry players.” Currently, Taiwan is home to more than 2,300 hand tool producers and about 70 per cent of its hand tool manufacturers are con- centrated in Taichung, the central Taiwan. This is a modest number and only repre- sents a portion of the highly diverse market with various booming sub-segments. “Amidst rapid global manufacturing, transformation towards greater sustain- ability and Taiwan’s leadership in pushing for quality excellence, a promising and fertile business landscape awaits foreign companies to join the market now. The Taiwan hardware pie is a large and open one for investors to penetrate, show their unique technological competence and grab the attention of high net-worth buy- Eddie Carrigan recently joined A Team Merchandising as its new business manager. ers and traders. In tandem, international
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JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 37 AHJ 08-15 Dynamic Sales.indd 1 5/08/15 10:43 AM NEWS
players can look towards collaborating with local partners to forge better alignment and strategy in their outreach across and beyond Taiwan,” Mr Keim said. With Taiwan’s vast industrial capacity and its position as a reputable hardware manufacturing hub for the region, par- ticipating exhibitors can seize bigger market share and rewarding profi ts via the country. For the 400 exclusive booth spaces available, international companies are welcomed to position their brands and products amongst Taiwan’s industry movers and alongside other top global manufacturers. Focused towards off ering global-class innovations for the lucrative Taiwan market, companies exhibiting at THS will showcase high-tech machinery and the newest technologies that highlight multi-performance automation with unmatched quality required by the market. With an estimated captive audience of more than 28,000 trade visitors, exhibitors can look forward to identifying the right partners for distributorship links and secure sales deals. Scheduled for a three day staging from 12 to 14 October 2016 at the Greater Tai- chung International Expo Centre, THS will be augmented with seminars and industry conferences fronted by notable international industry experts and local trade authorities who will share deeper insights on Taiwan’s hardware industry development. For more information visit: The 16th Taiwan Hardware Show (THS) is set to open greater entry windows for international market players www.hardwareshow.com.tw into Taiwan.
Ramset™ AnkaScrew™ WERCS – Faster, easier, stronger Trade is fast moving towards screw-in anchoring solutions has been proven in trade and construction for fi xing into concrete, brick and hollow or solid block, projects such as fi xing frames and metal ITW Proline recently reported. beams to concrete, external balustrad- Th e Ramset™ AnkaScrew™ WERCS range of products are ing, pallet racking and many more. the trusted trade solution for providing optimum perfor- Th e AnkaScrew™ WERCS are mance, according to the company, who reported that this easy to install and are 100 per cent removable, with the product simply screwing out, leaving an empty hole with no protruding metal parts to grind off . Th e AnkaScrew™ WERCS’ main unique feature is its suitability for close-to-edge fi xing as it does not expand and burst the surrounding substrate. Th e serrated washer face also off ers superior clamping and prevents it from loosening in the substrate, ITW Proline recently reported. Th e Ramset™ AnkaScrew™ WERCS are available in a range of sizes, and in two types of fi nishes, including zinc for internal applications and galva- nised for external projects.
38 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 PRODUCT FOCUS Great style should not be hard work
Proving that style and physical labour are not mutually exclusive, ELEVEN Workwear is set to launch its new Stove Pipe Pants range, allowing a seamless transition from the construction site to after-hours drinks.
LEVEN Workwear’s new urban The new Combat Cargo and Super styled collection is designed to fill the Easy Stove Pipe Pants are a slim fit with growing demand from the fashion stretch, designed for work but with a Econscious new aged man who is looking for contemporary style. The fabrics have garments that are fashionable and functional. built-in stretch that is pre-washed for The ELEVEN Workwear Combat comfort. Both pants feature contoured Cargo and ELEVEN Workwear Super legs, a lower waist, multi-function Easy Stove Pipe Pants remain true to the pockets in all the right places, including ELEVEN Workwear collection, designed a deep pocket for a mobile and internal specifically to give more style, comfort, zip pocket for wallet. When considering function and value to the tradesman, durability, the pants feature a triple home handyman, DIY’er or gardener. stitched crotch gusset, reinforced slanted “The old stereotype of back hip pockets, extra the plumber’s crack is long strong belt loops and a gone as we see a shift in hardy work fabric. demographics within the “Our goal is to make blue collar workforce. The workwear that is 11 modern man thinks about his out of 10. We want appearance and is looking for to bring style back fashionable designs, which to the worksite with combine modern styling purpose built practical particularly when considering how hard with workwear durability,” fashion, which includes Australian tradies work. ELEVEN Workwear’s ergonomically designed “Australia’s workers make a huge designer, Leigh Eam said. functionality,” Eam said. contribution to our nation and we truly ELEVEN Workwear’s appreciate your efforts. You endure heat, key drivers include dust, glare, rain and cold. So we believe comfort, functionality, you should have workwear that makes durability and protection. your day a little easier. We want you to The Super Easy Stove Pipe Pants are have workwear that gives you more than available in black, while the Combat 10 out of 10.” Cargo Stove Pipe Pants are available in “We are always aiming higher. khaki, navy and charcoal. We understand you need to look professional while wearing the right About ELEVEN Workwear… gear. So we give careful consideration ELEVEN Workwear was established to the design of all ELEVEN Workwear by a team of workwear experts with a garments. Even the smallest detail is philosophy of giving retailers more at tuned and perfected to give you more.” every opportunity. To do this, ELEVEN ELEVEN Workwear is currently Workwear has taken the time to fine-tune available from RSEA safety stores or the design of every garment in its range. online at www.rsea.com.au or from ELEVEN Workwear made a promise elevenworkwear.com.au. to its customers that it will continue For more information visit: to aim higher in its product offering, www.elevenworkwear.com.au
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 39 WHAT’S NEW
Mr Fothergill’s bulbs for winter planting
Now is the perfect time for your customers is ideal for fl owering perennials, such as to whip their gardens into shape for lilies and gladioli, and produce including summer with the release of Mr Fothergill’s strawberries and asparagus. Start planting new produce and fl owering bulbs. now and in summer you will have an early Mr Fothergill’s produce bulbs are crop of fresh fruit and vegetables, and perfect for those who want farm fresh colourful fl owers fi lling your garden. Bulbs produce straight from their backyard, can also produce a crop for several years, so while summer fl owering bulbs will planting them once can lead to a colourful brighten up gardens when the warmer and healthy garden,” Mr Whitehouse said. seasons roll back in. New produce bulbs include Seed Potato Mr Fothergill’s managing director, Dutch Cream, Seed Potato King Edward Aaron Whitehouse, said there are and Seed Potato Russett Burbank, while several varieties that may be planted in new fl owering bulbs include Gladioli Mon the colder months. Amour, Hellebore Mix and Lilium Mapira. “Winter is the key season for planting Mr Fothergill’s summer bulbs and getting started in June Tel: 02 4571 6241
New 20V Max Lithium-ion Circular Saw
WORX Tools is proud to unleash its latest with its rubber over mould devised for a tool to join the expanding 20V MAX sure and comfortable grip. Including the Lithium-Ion™ Powershare range - the spindle lock for quick blade changes, the cordless 20V Max Lithium-ion Circular WORX Circular Saw is also fi tted with a Saw WX529.9. lock-off switch to ensure safe use. With a no-load speed of 3600rpm, Th e High-Capacity 20V MaxLithium the WORX cordless Circular Saw can battery provides cordless convenience take blades of up to 150mm in diameter, to go anywhere, without sacrifi cing creating smooth cuts up to 45mm and also performance. Th e Powershare® 20V battery 50 degree bevelled edges for a professional is interchangeable with other WORX tools fi nish. WORX has added a dust extraction so users can quickly and easily switch facility with built-in dust port directing batteries, ensuring they will not be caught unwanted debris away from the user. out with a dead battery ever again. Th is 20V Max Lithium-ion Circular Saw WORX is designed to fi t comfortably in the hand Tel: 1300 889 028
Haymes launches colour library
Haymes Paint recently partnered with Etsy. colour palette, which encompasses electric com, the online marketplace for handmade blues, bright coral, rich tan and soft greys,” and vintage goods, to launch the fi rst Ms Rennie said. volume from its new Colour Library – Each of Etsy’s creative making process Curate – and to also showcase handcraft ed formed a central component in building designs of talented Australian makers. the Curate story, with the Volume One Haymes colour and concept manager, Colour Palette showcased and its raw Wendy Rennie, said that the collaboration infl uences brought to life in the natural with Etsy on Curate, the fi rst of seven materials - linen, clay, porcelain - used for Colour Library volumes, was a natural fi t. each handmade piece. Th e Haymes Colour “Sharing a commitment to authenticity, Library, a new colour trends concept, was creativity and local design provided a offi cially launched in March, with the strong platform for this partnership to inaugural Colour Library containing seven fl ourish. For Curate, we selected some volumes of colour themes. handcraft ed designs from the Etsy Haymes community to represent the contemporary Tel: 1800 033 431
40 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 WHAT’S NEW
An axe for any job
While technique is important when the cutting edge to make it less sensitive swinging an axe, the design of an axe can to fractures. be the difference between efficiency and A hooked end of the handle prevents disaster. It is for this reason that Fiskars the axe from slipping from the hand, so has developed a new range of splitting users can swing with confidence, while and chopping axes with unparalleled the plastic sheath will help with safe design and toughness to optimise each carrying and storage. strike. The X-Series Axes balance comfort, There are four splitting axes and two durability and safety so users can focus in the new range, so no matter your on stacking their woodpile high. customer’s size, level of expertise, or the A light FiberComp™ shaft minimises diameter of the logs they are splitting, fatigue, coupled with an optimal anti- the X-Series has the right axe for all shock grip to ensure a comfortable wood-choppers. and firm grasp, rendering the X-Series virtually unbreakable. The 35 degree Fiskars convex shaped axe face also strengthens Tel: 03 8645 2400
Taking a soft approach to bathrooms
Kohler has combined soft, organic water a minute. Its gleaming good looks aesthetics with a strong stand on will be retained for the long term thanks sustainability with the introduction of its to Kohler’s polished chrome that resists new six star WELS rated Cuff collection both corrosion and tarnishing. of basin and shower mixers. There is also a matching shower/ Featuring classically refined profiles bath mixer, with and without diverter. of curves and oval shapes, the Cuff Both the Eco Basin Mixer and Tall Eco is both understated and devoid of Basin Mixer have a ceramic disc valve unnecessary embellishment. The lever and consumers are able to adjust both control, spout and body are a series of the water temperature and pressure to oval cylinders that are the perfect choice individual needs. for bathrooms, with statement finishes For more information visit: where no competition is required. www.kohler.com.au The Cuff Eco Basin Mixer and Tall Eco Basin Mixer both have an impressive six Kohler star WELS rating using only 4.2 litres of Tel: 1800 564 537
Architecturally sound windows and doors
Stegbar’s Siteline composite windows and Siteline’s windows and doors are also doors merge the warmth of timber on the engineered to protect the home with inside with the durability of aluminium Siteline suitable for homes in bushfire on the outside. Siteline products also have zones, and are also treated to resist water outstanding thermal performance, as the saturation, swelling and warping, ensuring timber breaks the transference that occurs they easily open and close every time. with aluminium frames. A wide selection is available in “In addition to the thermal break that the range including bi-fold, awning, the timber provides, we use energy- casement, sliding and fixed windows efficient glass which keeps the heat and bi-fold, hinged and sliding doors. out in summer and reduces heat loss Every Siteline window and door in winter. This permits designs with carries a specific guarantee, covering much bigger windows to allow for more workmanship, performance and natural light to flow through a home,” durability for up to seven years. Stegbar’s national marketing manager, Stegbar Christine Evans said. Tel: 1800 681 168
JUNE 2016 | AUSTRALIAN HARDWARE JOURNAL | 41 Diary Rack ‘em up
Dates facebook.com/
FIND US ON FACEBOOK facebook.com/TrioAustralia australianhardwarejournal Brought to you by: Trio trioaustralia.com.au
June 2016
1 – 2 Safety in Action Perth, Perth Convention & Exhibition Centre, Perth, WA
1 – 4 The International Exhibition on Woodworking Machinery Supplies and
Accessories, China International Exhibition Center, Beijing, China
4 – 6 Buildexpo Africa, The Dome, Carnivore, Nairobi, Kenya
14 – 16 PAACE Automechanika, Mexico City, Mexico
24 – 26 Timber & Working with Wood Sydney, Hall 6, Sydney Showground, Olympic
Park, Sydney, NSW
July 2016
9 – 1 Reed Gift Fair, Brisbane Convention & Exhibition Centre, Brisbane
20 – 22 Security Exhibition & Conference, Melbourne Convention & Exhibition
Centre, South Wharf, Melbourne
31 – 6 Aug ALOA 60th Anniversary Convention & Security Expo, Hilton Orlando, www.youtube.com/user/ Orlando, Florida HardwareJournalTV
August 2016
6 – 10 Reed Gift Fairs, MCEC & Melbourne Showgrounds, Melbourne Victoria
12 – 14 Perth Home Show, Perth Convention & Exhibition Centre, Perth, WA Subscribe
42 | AUSTRALIAN HARDWARE JOURNAL | JUNE 2016 Facebook Ad.indd 1 2/07/14 5:11 PM PRIMESIL
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The colours on this chart have been matched as closely as possible to actual www.bostik.com silicone colours and should be used as a guide only. Retail Case study #7 Wayne Greaves, Owner Moutain Timbers, Kilsyth VIC
How long have you been in the industry? Been in timber since I left school. I’ve worked in both wholesale and as a reseller. I bought the business in 1994 from a second generation owner. I guess it was a bit rundown back then. When we What sort of customers do you have? Originally we grew the trade business quite significantly, but got our first in recent years we’ve found that our DIY side has grown to be about 30% of the business. rebate cheque you joined HBt in mid 2003 – why? “ We knew we had to do something to improve our position i thought – this so we started looking at various groups. For our business we didn’t like the cost and control equation that a banner seems to involve you in. We were sceptical at first but it turned out is too easy. that HBT was pretty much a perfect match for how we wanted to run our business. and since then – what’s your experience been? When we got our first rebate cheque I thought – this is too easy. Joining HBT gave us a voice in the industry. At the conferences you feel totally part of something bigger. ” You realise that you’re not alone. any last word? With HBT you really feel like you are part of it – not just a member. is it OK if people call you? Our number is 03 9762 3899.
For more information and membership application call 1300 305 719 Head Office 02 4472 1515 HBT is a buying group for the independent hardware and building materials retailer www.hbt.net.au Inkredible1175-05_#7