Page 19 - D16489 - LBMAO - Jul-Aug-2020 REPORTER - web optimized

Key points of the submission are:

• Total number of retail building
supply dealers in Canada: 8,400
• 2019 Sales: $38.4B
• National GDP Contribution:
$13.7B
• Direct Employment: 147,000
• Fourth highest footprint in
retail in Canada in number of
businesses.
• This sector has increased
employment by 18% in the last
decade.
• Many core products sold in
building supply retail/wholesale
are Canadian made. (Every
$1M of Canadian-made wood
products sold in building supply
stores supports 11.4 jobs across
Canada.)
• Average weekly wage for the
building supply retailer is 19%
higher than the overall retail
trade sector.
• Career opportunities are
abundant with 19% employed
in management positions in the
sector.
• More than 6% of all workers in
this sector are self-employed
compared to 1.4% in general
merchandise stores, 4.2% in
automobile dealers and 4.7% in
the food and beverage sector. Executive Summary (cont.)
(High level of entrepreneurship.)
• Other jurisdictions (Ireland,
Germany) are using a similar Summary economic impact, building supplies and wholesale sectors (2019)
program with very positive Table 1: Summary economic impact, building supplies retail and wholesale sectors (2019)
results towards tax generation. Building supplies Building supplies
• The HRTC in 2009 was a major dealers retail sector wholesale sector
contributor to the economic
recovery from the financial Total number of establishments 8,400 9,910
crisis, so we know that it can Sales (2019) $38.4B $108B
work.
National GDP contribution $13.7B $28.0B
The full report is available on Employment and income
the LBMAO website under "News". Direct employment 147,000 134,000
As the key points above indicate, Total employment (with indirect 218,000 243,000
the HRTC not only benefits the and induced effects)
home improvement sector, it also Total employment income $8.3B $15.3B
drives up overall employment and
consumer spending (food, vehicles, Taxes generated from operations* $2.9B $6.5B
renovations, furniture, appliances);
and the implications of this towards Household spending (generated by $6.2B $11.3B
increasing tax revenues without a employment income)
negative impact on the economy.
We encourage all members to *Sales taxes generated from the sale of goods and services in the retail stores was not estimated.
contact their MPs requesting they
consider this stimulus proposal as needs to be on the safety of our employees, get back to a vibrant economy in Canada and

we move into a recovery mode from customers and families as we practice the will need to encourage our governments
The wholesale and retail building supplies sectors across Canada have many other positive attributes to
COVID-19. protocols needed to maintain a safe workplace; lean towards less spending and more stimulus
including:
As we move forward adapting our but we also have to realize that in the long that will generate tax revenues but not have a

lives to the “New Normal”, our focus term, whether we find a vaccine or not, we will negative influence on the economy.
The wholesale and
There are building supplies dealers in over 1,600 different
retail building communities ranging from communities of a few hundred people
LBMAO Reporter - July-August 2020 19
www.lbmao.on.ca supplies sectors to the largest urban centres. Of the 26 main retail trade industry

benefit communities groups, only three have a larger footprint (i.e. more stores) than
large and small the building supplies dealers (Sections 2.2). There are building
across the country supplies wholesale establishments in more than 800 different
communities across the country (Section 2.5).
The sectors are a Among the larger retail industry sub-sectors, only food and
major employer beverage, automobile dealers, clothing stores and general
merchandise stores have more employees across the country
(Section 2.2). The building material and supplies merchant
wholesalers sector employs more people than all other major
wholesale sectors except one. Employment in the sector has
increased by 18% in the past decade (Section 2.4).

THE CASE FOR A FEDERAL HOME RENOVATION 4
TAX CREDIT PROGRAM