In business, there are different schools of thought on what it takes to achieve long-term success.
Some companies incentivize short-term gains giving the appearance of strength on the surface. Others prioritize belt-tightening and adopt complicated approval mechanisms where ‘No’ is the default. This can make it difficult to add more when necessary.
And then there’s Canerector.
We believe there is only one true path to long-term success – and that’s thinking long-term. For us, this means a real commitment to investing in our businesses and our people.
In what may, on the surface, appear as a ‘zag’ to conventional wisdom, Canerector believes its family of industrial and manufacturing companies will best thrive through addition, not subtraction. This commitment is more than just a state of mind; it is a strategic imperative that has enabled us to build a robust network through over 75 acquisitions and mergers. We support this growing network through investments that involve everything from team to product to expansion efforts.
“I like to think of us as the house of ‘yes’,” explains Matt Warden, Co-President of Canerector. “We take a long-term view of our businesses and support them to be agile and level up. Capital expenditures (CapEx) are a great example of how we do that.”
One of the biggest reasons Canerector can freely invest in long-term success is our strong balance sheet. As a debt-free company, Canerector pays cash for its acquisitions and investments. No external financing is required. Combined with our deep experience, we’re able respond to opportunities as they arise.
This is how we were able to move quickly on the sizeable expansion investment for Hubb-Cap, a member of the Canerector family. The amalgamation of four like-minded companies, E.S. Hubbell and Sons Ltd., Capitol Equipment Rentals, Capstan Fabricators, and Brother’s Equipment Rentals, Hubb-Cap epitomizes synergy in action. Last year, Hubb-Cap was approved for a CapEx investment of one million dollars for expansion to a new location. This investment enabled the business to set up a new distribution branch for their corrugated steel pipe and other drainage and road products.
Ian Kalverda, President and GM of the group, brought the idea forward when he recognized an opportunity to earn a competitive advantage through expansion in central Ontario. “The logic was strong,” said Warden. “It only took us three days to approve the request.”
Warden points out the somewhat paradoxical philosophy behind their investments. They are about helping our companies grow and stay ahead of the curve while preserving the essence of what has made them successful for many decades.
“Hubb-Cap is just one example that embodies our ethos of preserving legacies while pioneering progress,” said Warden. “Our investment underscores our unwavering support for their vision.”
Warden believes the expertise Canerector companies have in their respective fields enables them to anticipate where the industry is going and identify what they will need to deliver on the current and future demands of their customers.
This perfectly describes the $500,000 CapEx infusion for equipment enhancement at Harris-Stolper. Harris-Stolper is an industry leader in designing and manufacturing material-handling operator cabs across North America, Europe, and Africa. They plan to continue this long legacy of design and manufacturing excellence by turning to the very latest technology in the field.
Harris-Stolper recently added two FANUC America Corporation CRX-25iAs to their welding department, with future potential for more. Also known as Cobots, these are industrial robots designed for collaborative applications with humans.
“They both have simple drag-and-drop programming, so it feels as though we’re now playing a video game with the cheat codes turned on,” said Amit Jain, President of the company. “It’s just one of many exciting investments in the business to keep delivering superior-quality cab enclosures.”
Supporting companies with the latest technology is also behind the $225,000 CapEx investment to DB Piping Group. With expertise in the fabrication of piping products that meet special needs in terms of size, thickness, and special alloys, DB Piping Group relies on the best technology on the market to continually exceed customer expectations. Investing in a new Plasma Cutting Machine will serve this critically important purpose.
“Being a member of the Canerector network certainly has advantages,” said DB Piping Group President, Darko Petrovic. “Not the least of which is access to the investment we need to both continue and evolve our proven track record of integration and excellence.”
Warden believes that anyone in the Canerector family who is wondering whether there will be approval to replace older equipment may not be asking the right question.
“With more than 50 businesses in our organization, there is never a question of whether we’ll support our businesses staying up to date. We may ask though if you’re thinking big enough,” he said. “We’d rather spend more to enhance your ability to do more, than provide an apples-to-apples replacement.”
Warden stressed that growth and support continue to be a top priority.
“We want to grow and we’re challenging our businesses to focus on executing their long-term vision,” he said. “We’ll give them the support they need when there’s an opportunity worth taking. It’s what has kept us going for three generations and will keep us going long into the future.”