Implement Success 15.2

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Volume 15 Issue 2 | The Official Publication of AMC | Agricultural Manufacturers of Canada |

Taking the risk out of international trade page 11

INSIDE: Setting sights on global markets page 14

Advocate’s Voice Export landscape for 2019 page 16 Member Profile | Axalta The Canadian shortline market page 18


Implement Success | Fall-Winter 2018


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Implement Success | Fall-Winter 2018



For over 145 years, Axalta has used scientific and technological advances to deliver high performance coating solutions to the agriculture, construction and earthmoving equipment industry (ACE), around the world. 1.855.6.AXALTA

ThankYou AMC’s 2018 Corporate Partners

With a growing number of members, AMC collaborates with corporate partners to provide ongoing support, services and programs that help members’ businesses grow. We would like to thank our 2018 corporate partners for supporting the growth of the agricultural equipment manufacturing industry in Canada:


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ImplementSUCCESS FALL | WINTER 2018 Volume 15 Issue 2


Profiles & Features Departments Thank You to Our Sponsors page 4

Chair’s Message page 7

Meet the New Executive Director page 9

Index to Advertisers page 20

2019 Events and Trade Shows page 22

Taking the risk out of international trade page 11

Perspective page 25

By Judi Smith, Business Development, Aon Risk Services, Aon

Setting sights on global markets

page 14

By Jim Carr, Minister of International Trade Diversification

48th Annual Convention and Trade Show page 12 Advocate’s Voice Export landscape for 2019 page 16 By Jacquie LaRocque, principal of Ottawa-based Compass Rose Group

Member Profile | Axalta The Canadian shortline market page 18 By Karen Wesseling


The Agricultural Manufacturers of Canada (AMC) is a national, memberdriven organization dedicated to sustaining a strong, viable and highly respected Canadian agricultural manufacturing industry.

Published Semi-Annually for Agricultural Manufacturers of Canada (AMC), Ph. 306.522.2710 | MISSIO N S TAT E M E N T To foster and promote the growth and development of the agricultural equipment manufacturing industry in Canada. PUBLISHED BY 31st Line Strategic Communications, 316342 31st Line, Embro, Ontario N0J 1J0 | Ph. 519.475.6378, Fax 519.475.4792, GROUP PUBLISHER Karen Sample EDITOR April Jackman MARKE TING April Jackman PROJEC T MANAGER April Jackman L AYOUT Debra Buchanan | ©2018 Agricultural Manufacturers of Canada. All Rights Reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Published December 2018/PIM-AMC3149


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Implement Success | Fall-Winter 2018

Chair’s Message The theme of this issue, “Changing Trade Realities” is very appropriate for the world in which we live today. In the past year, much has changed: a USMCA agreement has been reached but has not yet been final scripted let alone ratified, tariffs on steel and aluminum have been put in place and more. From one day to another, we never know what may change. This makes agricultural manufacturing more challenging than ever. I also think of our end customers – farmers – and how they are dealing with these turbulent times. In this issue, we are pleased to give you a trade perspective from our Minister of International Trade, Jim Carr. Thank you to Axalta for sharing their view on changing trade realities as well as their adaptation strategies. Compass Rose has provided a thoughtful perspective on trade negotiations and recent trade agreements. In addition, AON has provided a detailed and practical article on insurance as it relates to international trade and travel. Richelle Andreas Chair | Board of Directors Agricultural Manufacturers of Canada

The last year has also been one of change at AMC with staff flux and a new Executive Director now coming on board. Throughout, one constant has been and will continue to be your talented and committed members of our board. Over the last several years, AMC has itself changed significantly, for the better. We have advanced the interests of our members and we are stronger and more unified than in the past. We now have a significant lobby presence as well as more engagement from our members. This positions us well to support our members and our industry in these difficult times. AMC has much more work to do on your behalf and I am personally looking forward to the next chapter, despite the change we all experience every day.

AMC Team

Agricultural Manufacturers of Canada | Board of Directors

Steve McCabe Executive Director

Chair | Richelle Andreas Chief Executive Officer S3 Enterprises Inc. PO Box 39, 2180 Oman Drive Swift Current, SK S9H 3V5 306-773-0645

Vice Chair | Frank Capasso Executive Vice President The CTD Group 1331 Chevrier Blvd. Winnipeg, MB R3T 1Y4 204-453-6833

Past Chair | Russ Klassen Director of Canadian Sales AGI 198 Commerce Drive Winnipeg, MB R3P 0Z6 204-489-1855

Treasurer | Linda Turta Chief Executive Officer RAM Industries PO Box 5007, 33 York Rd E. Yorkton, SK S3N 3Z4 306-786-2678

Director | Nigel Jones Chief Executive Officer Vaderstad Industries Inc. PO Box 123 Langbank, SK S0G 2X0 306-538-2221

Director | Grant Adolph Chief Operating Officer Buhler Industries Inc. 1260 Clarence Avenue Winnipeg, MB R3T 1T2 204-654-5702

Director | Cor Lodder Director Walinga Inc. PO Box 1790, 70 - 3rd Ave NE Carman, MB R0G 0J0 204-745-2951

Director | Cam Cornelsen Director of Sales Norstar Industries PO Box 119, RR1 Morris, MB R0G 1K0 204-746-8833

Director | Mark Hildebrand Director of Sales Monarch Industries Ltd. PO Box 429, 51 Burmac Rd. Winnipeg, MB R3C 3E4 204-786-7921

Director | Bob Cochran General Manager Highline Manufacturing Ltd. PO Box 120, Hwy 27 Vonda, SK S0K 4N0 306-258-2233

Director | Paul Horst General Manager Tube-Line Mfg/Horst Welding 6455 Reidwoods Drive Elmira, ON N3B 2Z3 519-669-9488

Director | Randy Bauman President Bauman Manufacturing / Eldale Machine & Tool 3 Industrial Drive Elmira, ON N3B 2S1 519-669-5195

Director | Glenn Burrma President Penta Equipment 4480 Progress Drive Petrolia, ON N0N 1R0 519-882-3350

Associate Committee Chair | Robert Ablamowicz Canadian Group Leader Axalta Coating Systems 54 Lake Crescent Toronto, ON M8V 1V8 416-720-9754

April Jackman Manager of Marketing and Communications Ty Hamil Manager of Government and Membership Relations


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2018-10-31 10:52:09 AM

Meet New Executive Director Steve McCabe Steve still calls Kenilworth, Ontario home. “It was a great way to live” he recalls of growing up on the family beef and cash crop farm in the Wellington County township. In his spare time, Steve enjoys the outdoors and depending on the season he snowshoes, ice fishes, curls or fly fishes.

Steve McCabe Executive Director | Board of Directors Agricultural Manufacturers

With his sporty orange jeep, his ever-present canine co-pilot Molly, and his keen sense of humour, Steve McCabe is a well known, familiar and friendly face on the roads of rural Southwestern Ontario and at many agricultural events across the country. At Halloween you might even see a photo on Twitter of his trademark wheels with a skeleton hanging off the back. Steve had to develop his sense of humour growing up as the only boy with six older sisters. “I learned to use the shower very quickly and spent a lot of time in the barn.”


His career path is as diverse as his interests. He worked for the Federal Government in Human Resources for three years, then moved to a private HR company. Next, he moved into sales. He held a number of roles working for Western Producer, then Director of Sales at Copernicus

“Trade issues and barriers and getting our members’ products to the global market. That’s going to be the biggest challenge,”

Educational Products, selling classroom equipment. From there he went back to his agricultural roots and that is where he has remained since. After about six years in sales at Top Crop Manager, he accepted a position at Grain Farmers of Ontario as their Manager of Member Relations. “I was the conduit between the GFO board and growers. My job was to let farmers know what direction the board was going and to tell the board what the issues were in the field. It was a great job!”

It was in this role that Steve had the opportunity to host the second Women’s Grain Symposium. He was also heavily involved in the GFO Grains in Action program, which he describes as a way to get young farming professionals involved in the organization through a tour to show them where their commodities go after leaving the field. When asked what he is looking forward to most in his new role at AMC, Steve did not hesitate, “Meeting members and finding out what they manufacture, how they manufacture, and why.” As for the biggest issue facing the industry in the next year, he points to the theme of this issue of Implement Success. “Trade issues and barriers and getting our members’ products to the global market. That’s going to be the biggest challenge,” he says. Looking forward to the next few months, Steve will be calling on members to begin the conversation and share their own individual challenges and discuss a strategic plan that will best serve the Agricultural Manufacturers of Canada.

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INDUSTRY ADVICE What you need to consider to protect your business By Judi Smith, Business Development, Aon Risk Services, Aon

Taking the risk out of international trade

Recent trade developments present great opportunities for Canadian agricultural equipment manufacturers to increase exports to both new and existing markets. However, with any new business venture there are risks that need to be considered in order to protect your growing business. Are you aware of regulations in various countries that may impact your business? Are your employees protected? What about privacy rules? Managing your risk requires being prepared and being aware. What follows are potential areas of risk you should consider and be prepared for when you do business outside of Canada.

➢ 1. Cash Flow One of the first conversations we have with our clients is about payment. Do you know how you are going to be paid? Regardless of where your customer is located, you need to be sure you will get paid. Some companies are able to secure instalments, so that by the time their goods are delivered, they have been paid in full. However, for those companies that cannot operate that way, trade credit coverage is used to ensure they will get paid for their work. There are a variety of options available that help companies improve their cash flow and avoid debt loss, and many AMC members use our trade credit team to help them secure the best terms possible. What’s important is to have flexibility and plans in place in case of sudden or unexpected changes in the market. Such changes could impact your customers and suppliers, thereby directly impacting your business. Having best practices in place can help you to improve your cash flow and avoid bad debts.

➢ 2. Supply Chain A common issue we hear about from AMC members is faulty workmanship and inconsistent quality of materials. Supply chain due diligence is a key step in mitigating risk associated with quality. For instance, we have seen situations where manufacturers use foreign steel and have had issues with metallurgical testing. This resulted in 10

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their customers questioning the quality of their product. At worst, this can lead to a product recall, and having to remanufacture the equipment with North American steel. Not only does this negatively impact the manufacturer’s reputation, but the manufacturer has to bear the extra costs of additional raw materials, production expenses, and shipping of replacement product. The delays associated with this type of situation can cause the customer to search out alternative manufacturers to supply them with quality and timely delivery.

➢ 3. Fraud & Cyber Risk An increasing number of AMC members are experiencing the challenges of fraud and cyber related risks. From simple telephone calls where fraudsters present themselves as vendors needing updated banking information, to social engineering schemes, to hacking, AMC members have been caught off guard or unaware by scammers. When no insurance is in place for this type of issue, the financial impact can be devastating. The more international your business, be it distributing or manufacturing, the bigger the risk, but all members need to make themselves aware, be wary and take preventative measures to reduce the risk to the bottom line.

➢ 4. Privacy Privacy laws and regulations are becoming stricter. If you do business in the EU or the UK, a new data privacy regime known as the General Data Protection Regulation (GDPR) came into force in May 2018. The law applies to Canadian companies who do business in the EU or the UK and there are massive fines for breaching privacy under the GDPR. Similarly, the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada is currently being developed by the Federal government. Privacy laws for privatesector organizations will be set out similarly to the GDPR. AMC members should also take care to be familiar with U.S. federal and state privacy laws. @AMCshortlinecda

Another thing to keep in mind is the security of your clients’ and employees’ information. How is their personal information being safeguarded? We have seen situations where the tax department notified a manufacturer that they were submitting tax returns for employees who had retired or were deceased. This was how these firms found out they had been hacked. AMC members must be aware of the massive fines that exist for businesses that breach privacy laws.

➢ 5. Insurance In our experience, we find that many companies rely on their freight forwarders for insurance requirements. These firms have contractual limitations that protect them. They often share freight and limits between customers. You may find your part of the shared insurance is insufficient should the need arise to collect it. The rule of thumb is if you own it, you should be the one to insure it.

➢ 6. Employee Travel It may be necessary for you to send members of your staff abroad along with equipment you are selling. As an employer, you are liable for your employees. Regardless of whether your employees travel to make a local service call or for an international installation, you have a responsibility to make sure they are safe and have the proper documents required to meet the rules and regulations of the country they are entering. If you are sending staff to the U.S., we suggest you speak to an immigration lawyer about the various business visas that are available. We have heard that many companies doing business in the U.S. have had employees and senior management turned away because they did not have proper documentation. This can cause inconvenience to the traveller, as well as the inability to deliver the promised goods or services on time. This, in turn, may affect your bottom line. Many companies have travelled successfully under the previous NAFTA agreement. However, if you do get a Customs and Border Protection Officer that goes by the book, we are hearing from some of our

clients that Canadian business people who travel to the U.S. need to obtain B1 Visas or other types of Visas depending on the reason for their visit. Service staff may need another type of Visa. We recommend our clients with employees travelling internationally discuss proper documentation requirements with immigration lawyers. There are many mistakes being made, such as assuming that if the travel is under 180 days, then no documentation is required. This is not the case. Employers are liable for their employees. If a travel situation arises involving an employee who does not have proper documentation or breaks the rules, it can cost you tens of thousands of dollars in legal bills. If you are nervous about sending your goods to a particular region, then you have to think twice about sending your staff. Kidnap and ransom coverage is available from providers for those who travel to areas that are not safe or are known to have issues. It’s also important to confirm that your Workers Compensation coverage is applicable to and set up for the province, state or country where your employees are travelling. If you are unsure of what you need to have in place to do business outside of Canada’s borders, or want a review of your current practices, contact an international broker for assistance. Being prepared will ensure you don’t get sidelined with unexpected and potentially catastrophic expenses.

Aon is a publicly traded, full risk services brokerage with offices in Canada and around the globe. Manufacturing (including specifically agricultural), is an important part of our business. Our centres of excellence include cyber risk, intellectual property, trade credit, environmental and financial services. We offer coverage for Directors and Officers, fiduciary, crime, mergers and acquisitions and large enterprise risk. Our expertise includes health and benefits, pensions and group RRSPs as well as a VIP program for owners of companies and their families.

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48th Annual Convention and Trade Show

Performance. Precision. Part The 2018 Annual AMC Convention and Trade Show will take place December 4th and 5th at the Fort Garry Hotel in Winnipeg, Manitoba. This year’s convention theme, “Performance Precision - Partnership” highlights that agriculture is about performance whether you’re in the field as a farmer or providing a farmer a high-quality piece of equipment. Agriculture is increasingly more precise in terms of operations and data management. Looking to the future, the evolution of agriculture will require continued and perhaps new types of partnerships. We welcome you to be part of our 48th Annual Convention and Trade Show whether as a sponsor or a delegate. Either way, your engagement will make it memorable and promote a strong, sustainable and profitable agriculture industry in Canada. Thank you to the 2018 AMC Convention Planning Committee: Grant Adolph, Buhler Industries; Cor Lodder, Walinga; Mark Hildebrand, Monarch Industries; Damir Gospic, CTD Group; Robert Ablamowicz, Axalta; Sean Ralph, AIC Supply and Frank Capasso, CTD Group. Visit for more information and to view the agenda.

Photos from the 2017 AMC Convention and Trade Show In Saskatoon, Saskatchewan. 12

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Presenting Sponsor:

Thank you to our 2018 Sponsors GOLD




M A N U F A C T U R I N G I N C.


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Canada’s Agricultural Equipment Manufacturers

set sights on global markets

Jim Carr Minister of International Trade Diversification

A BOUT THE MINIS TER Jim Carr has been a dedicated business and community leader in Winnipeg for more than 30 years. He was a musician and a journalist before entering public life in 1988. In 2015, he was elected as a Member of Parliament, and in the same year, was appointed as Minister of Natural Resources. In 2018, he became Minister of International Trade Diversification.

Growing up in rural Manitoba, I know firsthand the importance of having the right tools for the job: the essential equipment that farmers rely on to provide for their families, create jobs in their communities and feed the world.

export a record $64 billion worth of agricultural and food products last year—and we have our sights set on $75 billion by 2025. See Figure 1.

Every day, Canadian farmers go to work depending on quality equipment produced by members of the Agricultural Manufacturers of Canada (AMC). Our world-class agricultural equipment manufacturers span the country providing well-paying jobs for Canadians and keeping our rural economies strong.

We know there are challenges in exporting to foreign markets, in obtaining financing or when facing tariffs and import taxes. Obstacles like country-of-origin labelling and other non-tariff barriers can make exporting much more difficult, and so can border security issues, red tape and burdensome customs procedures.

As Canada’s Minister of International Trade Diversification, my job is to expand market access, reduce barriers and create a level playing field so that hard-working entrepreneurs have an opportunity to compete and succeed in the fast growing and dynamic global markets.

A past AMC chair noted last year at a House of Commons committee meeting that a large part of the costs faced by the agricultural equipment manufacturing industry is the registration of patents in each country. The different legal requirements can be expensive to follow.

The nearly 300 members of the AMC produce innovative, high-quality equipment sought by buyers from around the world. Almost 80% of your members are already exporting abroad and are looking to expand market share and enter into new markets.

Our government has listened to you on these important issues and has taken action by embarking on an ambitious trade diversification strategy that will create new opportunities so that manufacturers can continue to sell into established markets and find new ones. Our competitors don’t let up—and we won’t either.

“Our world-class agricultural equipment manufacturers span the country providing wellpaying jobs for Canadians and keeping our rural economies strong.”

That is why we have embarked on an ambitious plan to make trade deals such as the landmark Canada-European Union Comprehensive Economic and Trade Agreement (CETA), which provides exporters with preferential access to 500 million consumers.

In 2017, Canadian farm machinery manufacturers exported more than $1.9 billion worth of equipment to 154 countries. As well, Canadian leadership in cutting-edge equipment and technologies helped Canadian farmers


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We congratulate the members of your organization for this impressive leadership and hard work.

Since then, we have negotiated the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will provide access and new opportunities to 10 strategic markets, including Japan, Singapore and Malaysia. With CETA and the CPTPP in place, Canada will have preferential market access to nearly 1.5 billion consumers.

Canadian Agricultural Exports & Future Goals Figure 1 – Data Source: Statistics Canada.


exported over $1,9 billion worth of equipment to 154 countries


exported $64 billion worth of agricultural and food products in 2017 On September 30, 2018, we announced the successful completion of negotiations toward the United StatesMexico-Canada Agreement. The United States and Mexico will continue to be top markets for Canadians, however, I believe there has never been a better time to diversify and seek opportunities in dynamic, fast-growing markets. Building on this momentum, we are also looking to Latin America to provide more opportunities for our exporters. The nations of the Pacific Alliance—Chile, Peru, Colombia and Mexico—are engaged with us in talks to expand our status with the alliance. And earlier this year, we launched trade negotiations with MERCOSUR, a trading bloc comprising Brazil, Argentina, Paraguay and Uruguay that has a combined GDP of $2.9 trillion. We know your members see benefits from the clarity and certainty that comes with free trade agreements.


$75,000,000,000 goal set of $75 billion by 2025

Arriving at new agreements and diversifying our trade in all four corners of the world is providing that certainty. Small to medium-sized enterprises are the drivers of economic success, and through these new trade agreements, they will employ more Canadians and boost export sales. From our Canadian Trade Commissioner Service, which has a presence in more than 160 offices in countries in the world, to Export Development Canada, which can help with funding, we have put in place the expertise, advice and boots on the ground to help your members navigate complex international markets so they can tap into new opportunities abroad and create more jobs at home. We know that the exporters in the AMC share our vision of diversifying exports and creating new markets around the world. We are there with you to help meet the challenges and seize new opportunities.

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ADVOCATE’S VOICE Export Landscape for 2019: Now more than ever #CdnAg horizons are unlimited By Jacquie LaRocque Canadians—from the farm gate to the halls of government—have never been as aware of our export potential nor as committed to the expansion of foreign sales—both in the United States and other markets. Given this, the government has never been more aware of the need to let the Ag sector do what it does best: innovate, sell and lead. For AMC’s export-driven membership, 2019 will offer crucial opportunities to explore new markets and take advantage of long-standing export successes. Although the United States remains the primary export market for AMC goods, ongoing sales diversification has generated sales in 154 countries, including Australia, China, Chile, Germany, Brazil and New Zealand. With the 2019 federal election less than a year away, sustaining robust economic growth and creating well-paying jobs in a time of global trade and environmental reflections will be top of mind. The federal government has made the quest for new foreign markets a top priority, and it has mandated activist ministers to advance “Canada’s trade agenda by pursuing agreements and opportunities that create jobs and economic benefits.” The much-publicized talks with the U.S. focused the country’s attention on the vital importance of trade. Canadian businesses breathed a big, though tentative, sigh of relief when the new United States, Mexico, Canada Agreement (USMCA) was presented. After grueling negotiations, led on behalf of Canada by Minister of Foreign Affairs Chrystia Freeland, Prime Minister Justin Trudeau, Mexican President Enrique Peña Nieto and President Donald Trump all signed on. The U.S. Congress is expected to vote on ratification in 2019. It will bear paying attention to the outcome and aftermath of the U.S.’ November midterm elections, which may impact the agreement’s finalization and ratification. 16

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With export diversification being a key political imperative, the government is also implementing the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP), which will open doors in the fast- growing Asia-Pacific area, particularly for Canada’s machinery, equipment and farm products. As a result of 14 breakthrough trade agreements, Canadian businesses will have preferential access to 51 countries with nearly 1.5 billion consumers and a combined GDP of more than US$50 trillion as soon as later this year or early next year. The importance of these opportunities was driven home by the federal government-commissioned economic table on the agri-food sector. It recognized the prime importance of the agri-food industry in Canada’s future economic growth strategy and singled out improved Capital Cost Allowance (CCA) tax incentives as the best way to enable Canadian exporters to compete globally. AMC Chair Richelle Andreas drove this point home to legislators during their fall tour. Efforts are being expanded on an urgent basis by numerous federal government departments and agencies to offer exporters financing, information, advice and on-the-ground support in foreign centres. For instance, CETA economies will get streamlined help through a dedicated website and contact points, to increase access to 500 million consumers on the continent. It is heartening to see the Trade Commissioner Service amplified, and the BDC and EDC are more focused than ever on overseas sales. With the USMCA completed, China has become a renewed priority. The Canadian government is pushing ahead in hopes of beginning free trade negotiations. This would be the jewel in the crown of Canada’s trade diversification agenda. An agreement would create a historic new framework

JACQUIE L AROCQUE is principal of Ottawa-based Compass Rose Group, a government and public affairs agency specializing in export and innovation. Jacquie is consistently ranked as a Top 100 lobbyist in Canada by The Hill Times. You can find her at

to support opening more Canadian opportunities in the huge Chinese market on a B2B basis. The government also looks upon South America as a prime target for diversification. Canada is currently negotiating an ambitious trade deal with the MERCOSUR countries, which includes Argentina, Brazil, Paraguay and Uruguay. It is the world’s fourth-largest trading bloc, representing a combined population of 260 million and a GDP of over $3 trillion. Achieving an agreement would be an important breakthrough. All in all, it’s an exciting time for export. As entrepreneurs who have always thrived on ingenuity, Canada’s shortline farm equipment manufacturers are well-placed to take advantage. As Election 2019 approaches, AMC members must continue to ensure Ottawa fulfills its promises and they must engage with their political representatives all along the way. Besides calling for CCA improvements, AMC has recommended that Ottawa pursue more trade deals and encourage increased support for exporters in developing regions such as South America. What our elected officials know for sure is that the sector will be watching.

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COMMODITY PRICE$ TARIFF$ IMPLEMENT COST$ Axalta shares their thoughts on the Canadian shortline market in view of the recent turmoil created by tariffs by Karen Wesseling Just like their coatings, Axalta is built to endure difficult conditions, conditions they have faced during the recent changes in trade. Axalta is a manufacturer of industrial and automotive coatings, with a robust business in the agricultural industry. Axalta has more than 150 years of expertise in the coatings industry. In 2013, Axalta purchased the coatings business from DuPont and has consistently gained recognition in the coatings industry; now ranking as one of the top five globally. “Axalta recognizes that the shortline agricultural implement business provides vast opportunities for us, but is a cyclical business,” noted Robert Ablamowicz, Canada Group Leader – Industrial for 18

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Axalta Coating Systems Canada. The Canadian shortline industry was on an upward trajectory for seven-plus years and then begun to slow down in 2015. Sales remained soft thru the fall of 2016 but rebounded in Q3 2017. When the discussion of tariffs began, specifically those around steel, Axalta started to see a softening of demand from the market. With the implementation of tariffs, many manufacturers needed to adjust and assess the impact on costs. In some cases, this has led to some reductions in output. “Our customers are feeling the effect but are rapidly adjusting to the new reality. There may be further uncertainty in 2019 as tariffs take full effect thru US-based supply chains. Having said that, Canadian shortline manufacturers are creative and innovative. They will adjust, realign and survive.” “Tariffs on steel and other commodities are having a notable effect on our industry. Raw materials used in coatings are sourced globally. The imposition of tariffs and burgeoning trade wars drive up costs,” said Ablamowicz. The inflationary pressure that this produces then forces companies to think carefully how best to proceed. “We must maximize efficiencies as much as possible to offset increasing costs! We are always reassessing cost inputs and looking at ways to increase productivity.”

Many manufacturers who either build shortline equipment and or supply the industry, such as Axalta, are having to adjust selling prices. “We don’t want to have to pass these costs onto our customer, but we have to be smart about it.” Tariffs are having an effect on both the manufacturing and supply side of the business. “The reality is everyone is feeling the pinch and we just need to take the emotion out of it and adjust. The playing field has changed.”

“AMC is in an excellent position to support Axalta and other members through advocacy at the federal and provincial levels.” ­— Robert Ablamowicz, Canada Group Leader, Axalta

Easier said than done. Axalta’s customer base builds quality manufactured implements for the agricultural community. It is next to impossible to take emotion out of it when farmers are being squeezed from both sides. Ablamowicz acknowledges, “Farmers have faced lower commodity prices

and an increase in implement costs, remaining profitable becomes ever more challenging.” He predicts that the price inflation caused by tariffs is going to force farmers to be more conservative in their buying patterns. “Typically, farmers are buying equipment such as air seeders or swathers and trading them in every three to five years. With the rise in costs of equipment, they’re going to consider hanging on to equipment longer. This may, in turn, lead to a decrease in equipment sales, but potentially will see increases on the maintenance and parts side of the business.” The strategy for Canadian shortliners and other manufacturing businesses is to shift their focus to sales outside of the United States. More emphasis on the global market is needed. Many shortliners have had great success exporting equipment to Asia, Australia, Eastern Europe and Russia. “Canadian companies have relied too much on the US market, so there is a need to double down on export development. We know from a strategic standpoint, that we have to work with the government and work together to expand our global reach.” Axalta has seen many customers have great success exporting to other countries outside of the United States and feel that this strategy must continue and expand. As for AMC’s involvement in this strategic direction, Ablamowicz noted that, “We are very optimistic about the direction that AMC has taken in the past few years. With a focus on reinvigorating the organization, AMC is in an excellent position to support our members through advocacy at both the federal and provincial levels - export development being a critical item on the agenda.”

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Agricultural manufacturers produce over a billion dollars in equipment across Canada every year, yet the industry is not well known to most Canadians. AMC has made great strides in getting in front of government policymakers and providing advocacy on matters such as economic development and trade. The agricultural industry is strong and although this current climate is a challenge, Ablamowicz believes that if strategies evolve, the Canadian shortline industry will continue to thrive.


Implement Success | Fall-Winter 2018


Index to Advertisers ADVERTISING/PROMOTIONS Glacier Farm Media . . . Outside Back Cover BEARINGS Daemar Inc. . . . . . . . . . . . . . . . . . . . . . 8 Hi-Tech Seals Inc. . . . . . . . . . . . . . . . 24 BRAKE ASSEMBLIES Omega Drives Inc. . . . . . . . . . . . . . . . . 3

BUSHINGS & HUBS Daemar Inc. . . . . . . . . . . . . . . . . . . . . 8 Hi-Tech Seals Inc. . . . . . . . . . . . . . . . 24

CONVEYORS - BELT/AIR Eldale Machine & Tool . . . . . . . . . . . . . . . . . . . 26

CASTINGS Monarch Industries Ltd. . . . . . . . . 26

CYLINDERS Monarch Industries Ltd. . . . . . . . . 26 RAM Industries Inc. . . . . . . . . . . . . . 17

COATINGS Axalta Coating Systems Canada Company . . . . . . . . . . . . . . 4

CUSTOM BROKER Percy H. Davis Ltd. . . . . . . . . . . . . . . . . 24 EXPORT SERVICES Percy H. Davis Ltd. . . . . . . . . . . . . . . . . 24 FASTENERS Fastener Warehouse Ltd. . . . . . . . . . . 23 Leland Industries Inc. . . . . . . . . . . . . . 8 FINANCIAL ADVISORY SERVICES Farm Credit Canada . . . . . . . . . . . . . . . . 21 Wells Fargo Commercial Distribution Finance . . . . . . . . . . . . . . . . . . . . . . 6 FORGINGS AMS Industries Ltd. . . . . . . . . . . . . . . . . . . . 24 GEARS/GEAR BOXES Omega Drives Inc. . . . . . . . . . . . . . . . . 3 GOVERNMENT AGENCIES Government of Saskatchewan . . . . . . . . . . . . . . 23 GRAIN STORAGE BINS (LIDS) AMS Industries Ltd. . . . . . . . . . . . . . . . . . . . 24 GRAIN HANDLING SYSTEMS Walinga Inc. . . . . . . . . . . . . . . . . . . 19 HUBS/SPINDLES Eldale Machine & Tool . . . . . . . . . . . . . . . . . . . 26 Omega Drives Inc. . . . . . . . . . . . . . . . 3 HYDRAULIC PARTS & ACCESSORIES Daemar Inc. . . . . . . . . . . . . . . . . . . . . . 8 Hi-Tech Seals Inc. . . . . . . . . . . . . . . . 24 Monarch Industries Ltd. . . . . . . . . 26


Implement Success | Fall-Winter 2018

INSURANCE BROKERAGE/SERVICES Aon Reed Stenhouse Inc . . . . . . . . . . . . Inside Front Cover

SPRINGS Myers Spring Co. . . . . . . . . . . . . . . . 17

LASER CUTTING Hi-Tec Profiles Inc. . . . . . . . . . . . . . . 15 AMS Industries Ltd. . . . . . . . . . . . . . . . . . . . 24

STEEL/METAL SUPPLY Encore Metals . . . . . . . . . . . . . 23

LEAN TRAINING Axalta Coating Systems Canada Company . . . . . . . . . . . . . . 4 MACHINING Eldale Machine & Tool . . . . . . . . . . . . . . . . . . . 26 Monarch Industries Ltd. . . . . . . . . 26 RAM Industries Inc. . . . . . . . . . . . . . 17 Walinga Inc. . . . . . . . . . . . . . . . . . . 19 MANUFACTURING Degelman Industries Ltd. . . . . . . . . . . . . . . . . 23 Honey Bee Manufacturing Ltd. . . . . . . . . . . . . . . . . . . 19 MacDon Industries Ltd. . . . . . . . . . . . . . . . . . . 20 METAL FABRICATION Eldale Machine & Tool . . . . . . . . . . . . . . . . . . . 26 METAL PROCESSING AMS Industries Ltd. . . . . . . . . . . . . . . . . . . . 24

TANKS (ENDS) AMS Industries Ltd. . . . . . . . . . . . . . . . . . . 24

TIRES BKT Tires Canada . . . . . . . Intside Back Cover Dynamic Tire Corp. . . . . . . . . . . . . . . 22 WAREHOUSING & DISTRIBUTION Fastener Warehouse Ltd. . . . . . . . . . . 23

“FCC knows how our industry works.” Melissa Vencatasamy, Co-owner, genAG Farm Equipment Retail

PINS Fastener Warehouse Ltd. . . . . . . . . . . 23 PLASTIC MOULDING MANUFACTURING Daemar Inc. . . . . . . . . . . . . . . . . . . . . . 8 Northern Plastics Ltd. . . . . . . . . . . . 25 Hi-Tech Seals Inc. . . . . . . . . . . . . . . . 24 PTO SHAFTS & CLUTCHES Omega Drives Inc. . . . . . . . . . . . . . . . . 3 SAFETY/ENVIRONMENTAL PRODUCTS Axalta Coating Systems Canada Company . . . . . . . . . . . . . . 4 SEALS Daemar Inc. . . . . . . . . . . . . . . . . . . . . 8 Hi-Tech Seals Inc. . . . . . . . . . . . . . . . 24


Your business is unique. Your financing should be too. Grow with a lender who understands Canadian agriculture. With over 100,000 customers, big and small, and a portfolio that tops $30 billion, Farm Credit Canada can help build your business success story.

Implement Success | Fall-Winter 2018



Events and Trade Shows Trade shows are an excellent opportunity to market your product or business. This schedule will help you find agricultural trade shows throughout North America.

The maple leaf emblem denotes held in Canada.

December 2018 December 4 – 5, 2018

48th Annual AMC Convention and Trade Show Fort Garry Hotel Winnipeg, MB

January 2019 January 14 – 17, 2019

Crop Production Show Prairieland Park Saskatoon, SK Email: agmanager@ January 15 – 17, 2019

Salon de l’agriculture

Espace Saint-Hyacinthe St. Hyacinthe, QC Email:

January 22 – 24, 2019

March 12 – 14, 2019

The Keystone Center, Brandon, MB

EY Centre, Ottawa, ON

January 24 – 26, 2019

April 2019

Manitoba Ag Days

Salon industrie et machinerie agricole du Québec

Centre de foires d’ExpoCité à Québec Quebec City, QC

February 2019 February 5 – 6, 2019

Precision Ag Conference

London Convention Centre London, ON February 13 – 16, 2019

National Farm Machinery Show Kentucky Exposition Center Louisville, KY

March 2019 March 6 – 8, 2019

London Farm Show

Western Fair District London, ON


Implement Success | Fall-Winter 2018

Ottawa Valley Farm Show

April 3 – 4, 2019

Canadian Dairy XPO Stratford Rotary Complex, Stratford, ON

June 2019 June 19 – 21, 2019

Canada’s Farm Progress Show

Evraz Place, Regina, SK

July 2019 July 16 – 18, 2019

Ag in Motion

HWY 16, 15 Mins NW of Saskatoon, SK

September 2019 September 10 – 12, 2019

Canada’s Outdoor Farm Show

Woodstock, ON


“The Fastener Specialists” For all your Kanban and VMI needs

Located in the heart of Canada’s grain belt, Fastener Warehouse has developed an intimate understanding of the needs of all manufacturing sectors including agriculture, oil & gas, recreational vehicles as well as mining, forestry and cabinet making. Our extensive inventory includes all of the standard fasteners and class C items, as well as our specialty, customer specific made to print items. This allows us to virtually eliminate costly down time from parts shortages as all special parts are stocked by us for quick delivery when required. We save our customers time and money and offer vendor managed inventory. Saskatoon: 820-46th St. E., 1-877-374-1199 (toll-free) Winnipeg: 301 De Bates St., 204-477-5804 Regina: 1010 Kearns Cres., 306-352-1199

Encore Metals offers full service and specialty metals distribution and value added services. In addition to our fully stocked warehouses, we are capable of globally sourcing many different grades and shapes of material. CONTACT US TODAY TO HELP WITH YOUR MATERIAL REQUIREMENTS!


Phone: (205) 563-3343 Phone: (604) 940-0439 Phone: (780) 436-6660 Phone: (403) 236-1418 Phone: (204) 663-1450

Toll Free: (800) 663-8319 Toll Free: (800) 940-0439 Toll Free: (800) 661-5621 Toll Free: (800) 661-4140 Toll Free: (800) 665-9835

Saskatchewan. Real Opportunities. ENGINEERED TOUGH.

With its strong supplier base, central location, skilled workforce and low cost of doing business, Saskatchewan is a driving force in the agricultural equipment manufacturing industry. Discover the opportunities for your business. Degelman Canada • 1.800.667.3545 Degelman USA • 1.701.636.1876

@AMCshortlinecda |

Implement Success | Fall-Winter 2018


At Hi‒Tech Seals we offer an extensive range of products and services to keep you going strong.

Your Local Seal & Gasket Supplier Find out how we can help you at

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3/22/16 5:05 AM


Five Ways to Advertise with

2 • Inlet Cones • Grain Bin Covers • Wheel Shrouds

• Hemispheres to 65” dia. • Tank Ends to 96" dia. • Spun Metal Components for all industries

AMS Industries Ltd. 1575 Franklin St., Vancouver BC Canada V5L 1P3 toll-free: 1-877-251-3591 fax: 1-877-251-6422 email: website:


Implement Success | Fall-Winter 2018


Implement Success

Member Directory






Products and Services Guide

BOOK YOUR AD TODAY! Call or email Heather Brekelmans 519-475-6378 x31


In the Field: How do local machinery dealers

and growers view the changing trade realities? In these uncertain trade times, with tariffs and shifting trade relationships and agreements, manufacturers, dealers and farmers are all trying to figure out how to best prepare for what’s next. Since no one has a crystal ball, that is easier said than done. A representative from McGavin’s Farm Equipment in Walton, ON, comments “With our customers in mind, we did everything we could to prepare for this. We secured and pre-stocked our lot with old price equipment but that inventory only lasts so long. At the end of the day, if the cost of manufacturing is going up then the price is going up. There’s nothing we as a dealership can do about it, only hope that tariffs come off so prices adjust back down.” Jan Ter Keurs, a cash crop farmer in Strasbourgh, Saskatchewan, grows over 15,000 acres of corn, canola, wheat and flax. For the past 18 years, since he


came to Canada, Ter Keurs has traded equipment every year. “We need reliable machinery to run our business and you can’t get better than new,” he says. That has now changed. At the moment, he’s not trading at all. In fact, for the first year in a long time, he has purchased used machinery. Ter Keurs says, “I feel like we’re going to be hanging onto this equipment for a lot longer than normal.” In his area, drought was also pretty bad in 2018 and the yield suffered considerably. The same sentiment was repeated by Ian Matheson of Embro, Ontario, who owns RM Matheson Farms Limited with his older brother Scott. Together they farm 1200 acres of corn, soybeans and barley, provide custom spraying, planting, tillage and harvesting services and operate an 850 sow, farrow-to-finish operation. Recipient of the County of Oxford Stewardship

Award, Ian says, “We’re just going to have to stretch our equipment longer. We are fortunate because our used equipment is holding its value so what is flipped fairly regularly, we’re just going to have to run for longer and extend its life span.” Although not an ideal situation, the Mathesons have decided the best strategy is to adapt and be prepared to recognize and respond to opportunities. “When opportunities present themselves, we’re just going to have to jump on it. We have to be prepared to pull the trigger when we see a deal.” Ultimately, the changing trade realities are impacting all members of the equipment supply chain. Dealers and growers are doing what they can to adapt and mitigate risk. The strategy for growers, specifically, is to approach machinery investments with caution.

Implement Success | Fall-Winter 2018




GREY AND VALUE ENGINEERED DUCTILE IRON CASTINGS HYDRAULIC SOLUTIONS 51 Burmac Road, Winnipeg, MB, R3C 3E4 For more information please call 1-800-665-0247


Implement Success | Fall-Winter 2018


Implement Success | Fall-Winter 2018


The Canadian farmers’ first choice for agricultural news and information. Glacier FarmMedia extends your reach. Our acclaimed stable of agricultural information sources inform and inspire more farmers and ranchers than any other media group in Canada. With access to print and digital media, plus our agricultural event channels, we can effectively deliver the reach and results you’re looking for. When you need to connect with farmers in Canada, connect with Glacier FarmMedia.

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