Canadian firms tap into U.S. housing recovery

MONTREAL — Canadian firms beyond lumber producers are expanding their reach in the United States to capitalize on the ongoing housing recovery.

The head of Richelieu Hardware says the Montreal-based firm has completed a series of acquisitions over the past few years to position itself among the leaders in a market creeping back from the 2008 housing crash.

“We should be as big in the U.S. as we are in Canada, it’s only a matter of time,” Richard Lord said Thursday following Richelieu’s annual meeting.

He anticipates demand for many of its popular products, such as door handles and kitchen organizers, will grow as rising consumer confidence and employment prompt more Americans to remodel their homes and new construction continues to improve.

The U.S. accounted for 36 per cent of Richelieu’s sales in the first quarter, up from 32 per cent a year earlier.

Some of North America’s largest homebuilders — including Canadian-based Mattamy Homes, Brookfield Residential Properties and Tricon Capital Group — have also expanded their reach south of the border by buying undeveloped land or properties when prices fell.

Brookfield Residential Properties said 75 per cent of the $2 billion it has invested over the last seven to eight years has been in the U.S.

Tricon, which has about 88 per cent of its $3 billion US of assets under management in the U.S., has made a big bet on the growing American rental market.

It recently agreed to pay about $1.4 billion US for Silver Bay Realty Trust Corp.