THE 300. While it designs nearly 8,000 kitchen projects per year, has 260 employees and has a turnover of around $50 million, Armoires Cuisines Action is now at the head of a small empire regional. Despite the many challenges that threaten the company, labor shortage in mind, the SME does not intend to cut short the rapid expansion it is experiencing.
“This year alone, our growth is close to 20%. Since 2016, we have experienced annual growth of over 12%, ”proudly affirms François Chaurette, who took over the reins of the company barely twelve months ago.
The thirty-year-old SME, specializing in storage solutions - particularly for kitchens, wardrobes and bathrooms - has set up its factory and head office in Sainte-Sabine, near Farnham, in the Montérégie region. Armoires Cuisines Action also has four branches in the greater metropolitan area, in La Prairie, Boucherville, Saint-Jean-sur-Richelieu and Laval.
Consequence: its clients, 40% of individuals and 60% of "condo builders", often come from the most populous region of Quebec. "Our product, the boxes we deliver, travel very badly, "explains Mr. Chaurette. There is an aspect, a very regional vocation to what we do. It protects us, but it limits us.”
The expansion that the company promises will therefore necessarily involve the opening of new branches elsewhere in the province. The locations are still uncertain, but the Sabinese plant has all the necessary capacities to support growth, confirms the president. An amount of $8 million has also been invested over the past three years to modernize and expand its facilities and automate its manufacturing processes, among other things. This modern factory is precisely one of the keys to sustained growth.
Everything at Armoires Cuisines Action is homemade. From concept to manufacturing, design to design and delivery to installation, everything is controlled by the company. For the SME, the margins are accumulating, while for the customer, the solution is turnkey. This is also why, according to the president, the small regional company has managed to carve out a place for itself among the giants such as IKEA of this world.
"The experience of our customers, the diversity of the offer, the imagination, the creativity ... All of this is limited by standardization," says Mr. Chaurette. We can adapt to all the requirements of our clients, whether their budgets are $5,000 or $100,000.”
And their demands are high and numerous, the kitchen often being the room in the house that receives the most attention. A particularly true situation in Quebec, where the kitchens are also the places of gathering par excellence, argues the leader.
To shape these places of life, you first need several hundred employees. Of course, the wave of labor shortages that hit Quebec head-on does not spare Armoires Cuisines Action.
To compensate for the lack of employees, the company has invested heavily in the automation of its manufacturing processes in its factory. However, these new methods alone cannot suffice. "We believe we have reached maximum optimization," says the president, adding in the same breath that the main asset of the company, these are its employees. To preserve and acquire these precious assets, the SME must offer a panoply of advantages to its workers. All kinds of programs have been put in place: fitness, family support, teleworking where possible, monthly events, etc.
Again, employee retention and recruitment can pay the price for the seasonality of business operations. We don't often install kitchen cabinets during the holidays, for example, or during the summer, when it is more the earthwork projects that occupy the minds. That said, the SME cannot fire or lay off its teams with the seasons. Above all, we must not lose the talent so dearly acquired and developed.
In order to tackle this issue, Armoires Cuisines Action has also set up a bank of hours system for its employees. So when the company needs its employees to work longer hours, workers can accumulate time to defer later. One way to adapt to market needs while offering more flexibility to its human capital.
The company is also very active in the area of philanthropy. "On our website, we even invite people - the general public - to submit causes to support," notes Mr. Chaurette. The company has already supported the Maison Gilles-Carle - which offers respite to caregivers - regional hockey clubs, including in Chambly, the Maison Bleue - which offers social perinatal services - or recycling initiatives. in the Brome-Missisquoi MRC.
A smooth transition
The labor shortage is far from being the only challenge SMEs face. Managed for almost 30 years by the co-founder, Christian Van Gennip - who created it with his wife, Danielle Naud -, Armoires Cuisines Action has now been chaired by Mr. Chaurette since the fall of 2018. Business leaders know this, even as many fear, major changes in the management structure can upset a company. Yet in this specific case, the transition seems successful.
There is no miracle recipe here. “We had everything worked out to prepare for the transition,” explains Van Gennip. Our teams are efficient, united, communication is clear and we had very specific pre-established objectives.”
In 2013, a first attempt to hand over management to employees failed. It was therefore necessary subsequently to find the "good entrepreneurial spirit", which had been lacking during the failed test, according to the founder. While "taking the necessary time" to find it. “The true nature of a person, it takes years to know it,” he insists.
When Mr. Chaurette, who was previously a partner at the investment firm Novacap, also based in Montérégie, and a long-time friend of the founding family, expressed his interest in the company, “we trusted him », Explains Mr. Van Gennip.
Mr. Chaurette joined the team and, over time, as he achieved the goals set for him, the confidence solidified. "He is more methodical than me, he is very orderly, very prepared", launches the founder of Armoires Cuisines Action about his new president. “And that gives better results.”
“Basically, as a builder entrepreneur, you want to see your business succeed without you,” concludes Mr. Van Gennip. That's good, that's exactly what his successor and his teams are promising, expansion as a bonus.