Company: Shepherd Hardware Products LTD. (“Shepherd”) is a distributor of general duty and industrial casters, replacement wheels and floor protection products. The company is headquartered out of Three Oaks, Michigan, and has a global presence with distribution centres in Canada, Mexico, England, France, Australia, China and the United States.
Challenge: Faced with an upcoming lease expiry at their Markham facility, Shepherd wanted to evaluate how to better service their customers, while promoting long term growth and sustainability for the company.
Response: LIDD was hired to help develop a long-term network capacity plan that provided Shepherd with the necessary infrastructure to promote growth in North America and to most effectively reach their consumer market. Concurrently, LIDD’s real estate advisory team was engaged to begin a dialogue with Shepherd’s current landlord at their Markham facility to discuss their upcoming lease expiry.
Solution: LIDD’s integrated model was used to understand Shepherd’s operation on a deeper level and to help Shepherd make strategic decisions based on an exhaustive set of data gathered by LIDD’s supply chain engineers. A competitive negotiation strategy was created which aided in maximizing leverage with the current landlord. The end result was an extension of Shepherd’s 47,000 SF lease with basic rent below market ask, as well as a tenant improvement allowance to allow Shepherd to modernize the facility.