Value-added service key to Richmond Steel Canada’s 25 years in business

By Robert Colman
November 2019

Starting a business and maintaining it is a challenge in any market. So when a company like Richmond Steel Canada reaches a milestone 25th anniversary, one can't help but ask what the key to its success has been. According to founder Bruce Richmond, it's a combination of product mix and customer service.

Home Advantage

Richmond started the business with two colleagues when he decided he wanted to work closer to Hamilton, Ont., the city and surrounds of which he has always called home.

"I was working in sales for a company that decided to move its business to Concord, Ont., north of Toronto," said Richmond. "I had no interest in moving there or doing that commute, so instead I took a job with what was called The Metal Store at the time in Mississauga. The owner was someone very similar to me in outlook and education, which made me think, 'I should be able to start a business like this myself'".

Initially Richmond started a franchise of The Metal Store. After five years, he and the owner parted ways amicably because they were interested in taking different approaches to the market.

"It was then I launched Richmond Steel and started buying directly from the mills," said Richmond. The company now has a staff of 12.

Steel Generations

Richmond's family has been involved in the steel industry for generations.

• His father worked at Dofasco all his life.

• His grandfather worked at Stelco.

• His great-grandfather worked for Wallace Barnes.

"My father encouraged me to go to university for business because he wanted something better for me," Richmond said. "Schooling was important in helping me grow the business, but you better have a strong back working in this industry as well".

It's also important to understand how to make your business stand out in such a competitive sector.

"We started supplying customers with cold-drawn bar because that's what we knew, along with precision-ground shafting, then branched out into all the hot-rolled products," said Richmond. "We then noticed that the market was underserved in the 4140 grade cold-drawn product. Now, 4140 and 1018 are still our primary products, along with a number of complementary products. With the advent of the 'Google monster,' as I call it, you have to be a mill representative specializing in something".

Richmond sees his specialty as serving a highly technical market.

"These days, most of the work in Canada is highly engineered one-off products, so I looked at what went into the machinery of such products—the robotics, the automation, the conveyors, that kind of thing. Canada is really good at supplying those types of products. These products use a lot of cold-finished bar, a lot of 4140, and a lot of shafting. We wanted to be part of that market".

Material Decisions

One of the big trends Richmond has seen grow in importance is material traceability.

"All of our steel has a pedigree, which is critical for our customers," he said. "Go to any piece of steel in our facility and we can give you a mill test report on it. We bring in predominantly North American and European product".

Richmond is always looking for the next big value-added item for his customers, but it has to make sense and complement what the company already handles.

"There's no point in going after an aircraft alloy or a Hastelloy," said Richmond. "But we will carry hollow structural sections because that's something our existing clientele can use. You always need to achieve those synergies".

Customer Connections

When asked how the recent tariff troubles with the U.S. affected his business, Richmond was quite positive.

• "Canadian companies started looking for more local suppliers like us when previously they bought U.S. steel," he explained.

• "It forced us to look further afield to Europe for more supplies, which was very positive. We actually found suppliers who were less expensive".

While product is important, Richmond believes that it's still people that make all the difference in business.

"Price is still king, but at the same time customers don't mind talking to a pleasant voice at the other end of the phone. We've got five people on the phones here," he noted, emphasizing that customers who are comfortable working with a particular person work with them all the time. Working through email alone is also acceptable.

The important thing is to ensure the customer has a good experience. "Courtesy and politeness may seem like minor things, but they can make a big difference in a business relationship".