|Novatech Group Inc.
Doors, door lights, patio doors
Primary markets: Canada, US, Europe
Number of employees: 500
Harold Savard, president
Doors open to new markets
Canada’s residential home construction and renovations sector has performed surprisingly well during the post financial crisis era, significantly outpacing household formation. However all those new homes need doors. Novatech Group, one of North America’s largest manufacturers of door products, glass and other components is happy to supply them. Led by Harold Savard, who took over as president in 2010, the company has expanded steadily in recent years.
Novatech Group’s success stems from a variety of factors. These include the company’s vertical integration, as well as its custom and mass manufacturing of steel and fiberglass door panels, patio and garden doors and steel entry doors.
Savard places strong emphasis on innovation, by for example investing three percent of the company’s revenues in research and development. “Twenty-five percent of our sales come from products that did not exist four years ago,” notes Novatech Group’s president. The company, which does not sell directly to consumers, also continues to build and expand its existing marketing network, which includes distribution centers in Toronto and Calgary.
That said, while proud of Novatech Group’s success, Savard wants to double sales within the next five years, in part through acquisitions. The company has also been increasingly looking overseas and now sells in more than a dozen countries, particularly in the European market. Those initial efforts are expected to increasingly pay off in coming years, due to the recent inking of the Comprehensive Economic and Trade Agreement between Canada and Europe. The deal will reduce the tariffs on Novatech Group’s products from seven percent to three percent. Recent strength in the US dollar, which makes Canadian imports cheaper there, should also open up new opportunities south of the border.
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