Architectural Woodwork 2012
The industry has suffered its share during the recession, but is optimistic about the future.
Richard Reynolds, owner and president of R & R Woodwork Inc., an architectural woodworking company in Missis - sauga, Ontario says the last couple of years have been tough. He admits that it was hard to have a positive attitude as the jobs became scarce and the money got tight. "In 2009, we lost a staggering amount of money," Reynolds recalls. "In 2010, we lost half as much as the prior year and this year we broke even." Reynolds says things are looking up and his company will post a profit for the next business year - end in June of 2012.
Bruce Donald is the projects manager and chief estimator for Continental Cabinet Company, another Ontario - based architectural woodworking business. Donald agrees that times remain tough. Continental had to lay off a third of its workforce as part of downsizing efforts, but a new contract to provide millwork for a courthouse in Waterloo will see many employees rehired by the end of the year. Donald says outfitting the courtroom, as well as the judges library and conference rooms, is a multi - million dollar job that will provide work for 12 to 15 months.
Donalds great regret concerning the industrys recent struggles is that they triggered a return to cutthroat bidding practices. "Everyone comes away bruised," Donald argues, in a process that sees companies fighting for a slice of a still - shrinking pie. "You think you have the right number and somebody low - balls it." Donald suggests the numbers dont always make sense when some companies, often newcomers, are desperately trying to get work.
Donald admits, "For a while there, we were able to pick and choose the jobs we wanted to bid on. We would bid on larger jobs while neglecting the smaller jobs and, in so doing, we lost smaller customers." Now Donald bids on everything that comes across his desk - big and small. He foresees the economic climate remaining chilly for a while, but says his company has never walked away from a challenge as it remains true to its promise to clients that "anything that can be built out of wood, we can build."
B.C.- based Towne Millwork Ltd. president Greg Hesketh says it isnt all doom and gloom: "It hasnt been a banner year," says Hesketh, "but it hasnt been a bad year."
Hesketh says his company invested money at the beginning of the year on equipment with the goal of making the building process faster, better and more competitive. By streamlining the process, Towne Millwork was able to reduce overhead costs without huge job cuts. 2011 clients included ВС Place, Phase 2; Kwantlen College, Langley; BCIT Gateway; Shrum Science Centre at SFU; Kelowna Hospital and Kelowna Casino.
Adjusting nicely to the temperate Okanagan climate didnt deter Heskeths company from bidding on and winning four projects in the Yukon. Projects there include a recreation facility in Fort St. John, a geological core library in Whitehorse and a cultural centre in Haines Junction, which Hesketh describes as "three hours from the nearest hotel."
Hesketh says his company has also expanded its job description on some of the projects. "Weve been doing some design - build work," Hesketh explains, "where we go in with a building shell and do all the layouts, the layouts for the millwork, design it, budget it, and also do the drawings for electrical and mechanical, layouts for all that." Here again, experience in the industry counts. Hesketh says it is no secret that profit margins are now thinner. He adds that to remain competitive in todays market, architectural woodworking companies have to be better. "You have to be better, and smarter. You have to be more organized," he explains, "and I think that is our niche; we are getting jobs because we are organized and we have the manpower and equipment to get the job done on time." Spending money on new equipment during tough times may have seemed like a risky proposition but it has paid off for Hesketh - one more advantage in an industry struggling to get back on its feet.
As for the bidding process, the big change, according to Hesketh, is that companies have to prove their worthiness beforehand. Hesketh says, "For a lot of the bigger projects, you need to be pre - qualified to even bid on them. We are seeing a lot more of that: projects where only a few companies are qualified to quote on it." Pre - qualifying requires a healthy bank balance to prove one has the financial stability to handle work worth millions of dollars.
Hesketh says the industry is going through a shallow dip right now but figures it will be a pretty straight line for the next little while. "We wont see anything different from what we see right now anytime soon," Hesketh predicts. "We arent picking up steam but neither are we dropping like a rock."
Rick Dekok says his company has had an easier time of it than its counterparts to the west and the east. Dekok handles sales for Alberta - based Premiere Woodworking and says although the industry has slowed down, the companys bread and butter clients remain. Premiere Woodworking does high - end residential custom millwork, a market that remains relatively recession - proof. "We cant forecast the future," Dekok admits, "but the projects we have now are similar to those weve always done for a clientele that is pretty consistent."
Dekok says every customer is different, with the exception that everyone wants something unique, "Thats what we aim for: to make something for each client that nobody has."
Richelieu Hardware is Canadas main distributor, importer and manufacturer of hardware and complementary products. Sales and product manager Stephanne Demers says no downsizing has been required, even during the recent tough times. Demers says, "We drive worldwide innovations in functional and decorative hardware and because of our business model and the opportunity that exists within our platform, weve been able to increase our workforce."
Richelieus client base is extensive, including companies that work in health care, conventional - style living and institutional markets. Demers is realistic but upbeat about what lies ahead. "There will be turbulence throughout the year for architectural woodworkers as we move into 2012," he says, but we are optimistic about the Canadian economy. Many customer partners have engineered their organizations to be lean and versatile during tough economic times. We have done the same and look forward to what is ahead."
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