WHAT DO YOUR CUSTOMERS

WANT?WHY ARE YOU STILL TRYING TO SELL THEM

FOUNTAIN PENS?

Victor Hyman, EMCO Corporation

EVERYONE PLEASE PULL OUT YOUR FOUNTAIN PENS…

IMAGINE YOU OWN A PEN SHOP…

IF YOU DON’T SELL IT, SOME ELSE WILL.

WHO OWNS AN IPAD?

WHO OWNS AN IPAD?

WHO WOULD HAVE PREDICTED THAT?

1943: "I think there is a world market for maybe five computers." -- Thomas Watson, chairman of IBM1977: "There is no reason for any individual to have a computer in his home." --Ken Olsen, founder of Digital Equipment Corp.1981: “Cellular phones will absolutely not replace local wire systems.” — Marty Cooper, inventor.1995: “I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse.” — Robert Metcalfe, founder of 3Com.2005: “There’s just not that many videos I want to watch.” — Steve Chen, CTO and co-founder of YouTube expressing concerns about his company’s long term viability.2006: “Everyone’s always asking me when Apple will come out with a cell phone. My answer is, ‘Probably never.’” — David Pogue, The New York Times.2007: “There’s no chance that the iPhone is going to get any significant market share.” — Steve Ballmer, Microsoft CEO. Here is a prediction that is true. Alvin Toffler said in 1970 "The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."

LET’S TALK ABOUT OUR INDUSTRY…

LET’S TALK ABOUT OUR INDUSTRY…

CAN WE PREDICT THE FUTURE?AND FIGURE OUT WHAT OUR CUSTOMERS WANT?Things we know for sure:1) Urban density will continue to increase2) Living spaces will get smaller3) National building code now allows 6 storey wood-frame buildings

1+2+3 = more low-rise multi-family buildings4) Fuel costs will rise – Hydro will rise more than 2x the CPI and Carbon Taxes are coming to Ontario5) Energy efficiency requirements will get more stringent and Glenn Murry is pushing for geothermal

to make (another) comeback – DV water heaters to be dead next year, atmospheric WH will be dead within 5 years and PV (non-condensing) to be dead in 10 years.

4+5 = Net Zero will be a requirement:You won’t be able to afford to use any extra energy

6) Everything will be connected to the internet7) Millennials will want to rent/finance/monthly pay everything

What don’t we know? If you will close the sale.

MY BOLD PREDICTION FOR THE FUTURE OF OUR INDUSTRY

NOW Now in BC, SOON in ON NOW in QC, SOON in ON

THANK YOU

Victor Hyman, EMCO CorporationFebruary 19, 2016