Insight

First of all, it’s an honour to once again contribute to this feature. As I read our previous two entries (2014 and 2016), we were entering, or already in, the midst of economic uncertainty. Steel prices were falling and we believed that we were at a crossroads where without intervention, the economy would sink further into recession.

Over the past 6 months, the government of China intervened to limit steel supply and to limit pollution in the country. This has had the effect of stabilising and raising steel prices, of which we can all see. 2017 has been more volatile with plant shut downs in China during the third quarter. We believe that 2018 will have greater stability, however, this is cautioned by the growing influence politics and governments are having on international trade.

Overall, 2017 has been a strong year for Brighton Best International Inc (BBI), and based on market information we see, the industry as a whole is growing. Activity is up, confidence is strong, and 2018 is looking to be a strong year. 

So we’re all growing, but I think the challenge will be understanding if we are growing because the ocean tide is rising, or, if we are growing because we are challenging ourselves as a company to grow. The former can be dangerous, and actually lead to complacency and financial strain when the tide recedes. The latter will grow regardless if the tide is rising or not.

At the end of 2017, BBI finished the acquisition of two companies. In October 2017, we completed the acquisition of Koala Nails in Australia and in November 2017 we completed the acquisition of Ironclad Performance Wear in the USA. Both put BBI into new markets, namely the construction fastener market and the safety industry. After the market announcements, congratulatory emails started coming in. Many complemented us on how we have planned our growth. It did not strike me at first, but eventually I realised people thought we had a plan for growth. We do not. What we do have at BBI is a desire to challenge the status quo, to constantly be moving, and to not get comfortable. 

Over the last three years, BBI has been focused on diversification. We have expanded into hand tools, safety, consumables, cutting tools, abrasives, etc. We have grown an organic brand called Proferred® within BBI’s distribution base. In 2018, we will continue to focus on diversification and we will continue to develop our two new acquisitions, in addition to investing further into the construction fastener industry in the USA.