In Conversation With... Ron McMillan, President of Reid's Heritage Homes

After 45 years in business, Reid’s Heritage Homes recently undertook a brand revitalization to reflect its tradition of innovation, quality and commitment to customer satisfaction.

The move also involves repositioning its construction arm – Reid’s Heritage Construction – to expand its focus on building midrise residential projects on behalf of other developers, as well as midrise communities internally.

We spoke with Reid’s President Ron McMillan for his insight on this decision, and what else the company has on the horizon.

Let’s start with an easy one: What’s your assessment of the housing market these days? There seems to be more signs of things heating up, with many hoping for the Bank of Canada to drop interest rates, which would help spur activity…

There has been an uneasiness over the past six to eight weeks as homebuyers and investors await some positive news from the Bank of Canada and our politicians. With the announcement on June 5 of BoC’s rate cut, we’re optimistic that buyers will be confident that the market has nowhere to go but up, but we don’t anticipate a buying frenzy just yet.

A lot of your development is in the Greater Golden Horseshoe… how are markets in this area doing these days, compared to those in the GTA or more closely associated with Toronto?

In general, we are seeing the same slowdown as the GTA. As with all real estate, a good location at the right price is still selling but at a much slower pace.

What opportunities exist in the GGH that might not in the GTA, such as more space, bigger lots, mature buyers, more bungalows…?

We are still able to purchase infill acreage, that allows us to build affordable (less than $600,000) medium density townhomes with above-ground parking. With increased development charges and longer approval times, this is getting harder to do in the GGH now, too.

How does the typical buyer profile differ?

Our medium density product is still very popular to the GTA investor in the larger centres such as Guelph, Kitchener and Cambridge. In the smaller centres such as Stratford and Atwood, the buyer tends to be retirees or families with adults working from home.

Reid’s Heritage Homes recently announced a brand refresh after 45 years in business. What’s the genesis, reasoning and opportunity with this, besides the anniversary?

Reid’s Heritage Homes has been a leading homebuilder in the Greater Golden Horseshoe Region for more than 45 years. With the merger of RHC (our construction management division) and Sherwood Homes (northern homebuilder), the time was right to introduce a fresh logo and branding that reflected our continued commitment to innovation and quality.

What does it all entail?

Merging three companies and three leadership teams in less than 12 months was quite an accomplishment. On Jan. 2 of this year, we were able to bring everyone together into our new state-of-the-art 27,000-sq.-ft. head office located in Cambridge, Ont. The synergies between our teams since January has been great and the official rebrand announcement afterwards was the icing on the cake.

Reid’s Heritage Construction will effectively operate as a builder or service provider for other developers… Why did you choose to go down this road?

Reid’s Heritage Construction (RHC) has been operating as a successful construction management division and firm for more than 20 years, and has completed numerous projects for other developers and REITS over the years. The only change now is that RHC will operate as a construction management company under the Reid’s Heritage Homes brand. This effectively gives our construction management team more resources and expertise to draw upon.

Building, supplies, costs, trades availability… these are some of the issues in new home construction these days. How does your new construction unit, or Reid’s itself for that matter, navigate these challenges?

Reid’s Heritage Homes has always believed in building lasting relationships with trades and suppliers and this loyalty has definitely helped us navigate and control some of the uncertainty related to costs and trade availability over the past few years. We are still using some of the trades that our founder, Orin Reid, helped get into business more than 40 years ago.

If you could advise the province, or even Ottawa, on housing policy, what would suggest they do, both now and over the longer term?

Remove development charges (this is an unfair tax for new-home buyers); increase funding to municipalities for infrastructure improvements and upgrades; provide financial incentives (paid work terms) for high school and college students to get into the trades.

What’s next for Reid’s Heritage Homes… what will the company look like at your 50th anniversary?

Our goal is to continue to add more new homes to the Greater Golden Horseshoe market and be a big part of the solution to the current housing shortage in our region. We are very fortunate to have a team of individuals who not only care about what we build but are also extremely passionate about continually moving the needle on building efficiencies and sustainability.

reidsheritagehomes.com

& on a personal note

How do you spend your time away from the office?

I spend most of my time with my family – a wonderful wife, a five-year-old daughter and 10-year-old son. The winter is spent in hockey arenas with my son, and dance with my daughter, while the summers are spent in the backyard.

What or who inspires you most?

Most of my inspiration comes from watching the Reid’s Heritage Homes team in action – they really are a fun and engaging group to be around. Watching them grow and excel is the best part of my job.

What do you consider your greatest accomplishment?

Convincing my wife to marry me and having two wonderful children will always be my greatest accomplishments. A close second would be helping to build and assemble the award-winning team here at Reid’s Heritage Homes over the past five years.

What’s on your reading list these days?

Good to Great, by Jim Collins
Bluefishing, by Steve Sims
Let my People Go Surfing, by Yvon Chouinard
The Power of Conflict, by Jon Taffer