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V O L . X X V N O. I JA N UA R Y 7 , 2 0 1 9 14 R E TA I L / D I S T R I B U T I O N Lewiston footwear distributor to step up hiring B y r e n e e C o r d e s L ewiston's M. Leonard International Inc. plans to step up hiring after adding a Danish clog brand it's distributing exclusively for Sanita Denmark A/S. e shoe wholesaler recently increased its ware- house space in Lewiston by fivefold and opened a new office in Scarborough where it employs six people, with plans to hire up to five more. "We need good creative people to handle all aspects of the business," Matt Tracy, the company's founder and president says while sifting through 50 resumes that came in within 24 hours of an ad on indeed.com. He attributes the interest in part to having a nationally known consumer brand and says he's noticed more applications from people with varied backgrounds, "which I think is good." M. Leonard began shipping its first pairs of Sanita shoes in October, taking over from a previ- ous distributor in Texas earlier than planned. "We had everything in place," Tracy says, "and now we're trying to play catch-up with our staff." Another priority will be to attend consumer fairs and other events to reach end users and not just store buyers, he adds. Tracy founded M. Leonard in 2006, setting out to import woolen slippers and shoes made by Austria's Giesswein, which it now carries for retail customers nationwide, including Renys and Selby Shoes Etc. in Maine. ough M. Leonard does not disclose revenues, Tracy projects 2019 volume at close to 200,000 pairs, with Sanita clogs — used in various profes- sions — making up three-quarters of that. With the new account, it expects to be busier throughout the year since clogs are less seasonal than slippers. "is is certainly going to keep us busy for the next 12 months at least," Tracy says. "After that we may look at adding another brand." M. Leonard employs two full-timers at its warehouse in Lewiston and hires up to 10 during the peak season. It also has a 12-strong independent sales force nation- wide and expects to stay at that number. While Tracy had thought about mov- ing the whole business to the Portland area, the Lewiston native chose to keep its base in Lewiston in part because of a better labor pool and real estate availability. e company recently increased its warehouse space from 8,000 square feet to 40,000 square feet at the Roy Hill Mill Complex, where it will lease an entire floor vacated by another shoe dis- tributor. "It's a great space for all kinds of busi- nesses," he says. AC C O U N T I N G Tight labor market among challenges ahead B y P e t e r V a n a l l e n C PA Pete Dufour, founder of Dufour Tax Group LLC, is an advisor to hundreds of business clients. He's also a member of the Maine Society of Certified Public Accountants, so he gets insight from other certified public accountants. "I saw an increase in revenue across most sec- tors during 2018, generally translating to a healthier bottom line," he says. "But it appears some segments peaked early in 2018 and are beginning to soften slightly as we enter the new year." New tax laws could save companies money, par- ticularly those created by the Tax Cuts and Jobs Act, which took effect in 2018. "For most business clients, our projections indi- cate that the [Tax Cuts and Jobs Act] will result in modest to significant tax savings. Enhanced depre- ciation and expensing rules will allow businesses to accelerate deductions for equipment purchases, which will help fuel further savings," he says. A common challenge his clients faced in 2018 was the tight labor market — and the trend is "likely to continue," he says. e Portland firm tackled the issue by enhancing benefits, including profit-sharing and retirement plans, and creating a so-called phantom equity plan, which is a deferred compensation plan. In each case, the incentives reward employees for contributing to company growth. For clients, Dufour helped introduce technology that can increase productivity and efficiency while reducing the number of employees. Dufour says Maine's aging baby boomers will con- tinue to look for a way to transition into retirement. For that reason, Employee Stock Ownership Plans, or ESOPs, will continue to be popular this year. "Our outlook for 2019 is positive, with an under- standing that certain business sectors likely will see slowing growth, or perhaps a flattening of revenue," he says. "Keys to driving profitability will con- tinue to be solid tax and financial planning — and implementing automation and technology to help increase profitability." Peter Dufour A common challenge clients faced in 2018 was the tight labor market, a trend likely to continue. — Pete Dufour Dufour Tax Group LLC P H O T O / C O U R T E S Y O F P E T E D U F O U R P H O T O / C O U R T E S Y O F M . L E O N A R D I N T E R N AT I O N A L F O C U S We need good creative people to handle all aspects of the business. — Matt Tracy M. Leonard International Matt Tracy

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