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Serving the Canadian Ground Water industry for 46 years.
8 DRILLING DOWN
GWC’s first industry survey looks at your business, your perspective and your future
13 THE SOURCE
Find out what’s happening in the Ontario Ground Water Association via The Source
20 SUCCESSION PLANNING
With our aging demographic and changing society, retirement-bound owners have big decisions ahead 4
SURVEY SAYS by Colleen Cross 6
Three steps to marketing your business online.
ON THE WEB:
Ultra-small, parasitic bacteria found in groundwater, humans Inside your mouth right now, there is a group of bacteria whose closest relatives can also be found in groundwater deep under the Earth’s surface. In a major discovery published in the journal Cell Reports, scientists have found these organisms have adapted to diverse environments such as dogs, cats and dolphins without radically changing their genomes. TM7 and other ultra-small, parasitic bacteria may play important roles in health and disease.
www.groundwatercanada.com
A conversation about groundwater
by Colleen Cross
The rewards of working in groundwater are many: tell others what you do and why you do it
Results of Ground Water Canada’s first Ground Water Professionals Survey are in.
To everyone who responded openly and constructively, thank you for your feedback. As you’ll see in our featured article “Drilling down” starting on page 8, your willingness to share information, anonymously, is giving us all a bird’s eye view of your work, helping us understand your daily challenges and pointing the way forward for the industry.
In short, the survey results give us a snapshot of the groundwater industry, largely from the contractor point of view.
It is a unique industry that brings together the skilled trades, science and manufacturing. What motivates people to do the work involved in accessing and protecting groundwater?
Spreading the word starts with pride in your work and a willingness to talk about what you do and why it’s important.
In the survey contractors, drillers and installers pointed out some of the rewards of working in this industry. You liked the variety and challenge of the role, the independence it gives you, your co-workers, the well owners you serve, the ability to work outdoors, the continuation of a tradition and, of course, financial compensation.
The work seems to attract people who like getting their hands dirty, solving problems, helping people in their local area and communing with nature. Communing with nature includes protecting natural resources and that is, if not in your DNA, then quickly learned in the field. When you think about it, it is shocking how many otherwise well-informed people are unaware of the differences between surface and groundwater, but maybe not so shocking when you consider it is hidden from view.
In the survey several people mentioned this need to raise awareness. These two things – the rewards
of your work and letting people know about them – go hand in hand. We must communicate to the public why we do what we do, why it’s an excellent career choice and why this industry needs to be renewed to carry on with its important work.
Spreading the word starts with pride in your work and a willingness to talk about what you do and why it’s important.
I’ve had a number of conversations with people outside the industry and found they are usually very interested to learn there is a whole industry out there dedicated to accessing and protecting groundwater. Talking to people outside of the industry can be eye opening. A comment I often hear is, “I never thought about where my water comes from.”
I challenge everyone to have one conversation about what you do with someone who doesn’t know much about groundwater.
Another key step in promoting this industry is to become a voting member of the Canadian National Ground Water Association. The CNGWA’s mission statement appears on page 11 with a membership form on the back. Tear out the page, fill out the form and mail it in with the $100 fee. Your financial support is absolutely vital to the association continuing its work – and raising awareness is a key part of that work.
As ambassadors of groundwater we need to shine a bright light on this hidden resource. It’s for the good of the public and the good of our industry.
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NEXT ISSUE: The next issue of Ground Water Canada will focus on pumps, pump technology and news from Groundwater Week. Also included is our 2021 pull-out calendar Don’t miss it!!
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INDUSTRY NEWS
CNGWA TO FOCUS ON GROUNDWATER AWARENESS, ADVOCACY, KNOWLEDGE AND EDUCATION
The Canadian National Ground Water Association will focus on increasing public awareness of groundwater, advocacy, knowledgebuilding and education.
The mission of the association is to:
• Increase public awareness of the critical importance of groundwater to Canadian society and the economy.
• Advocate governments and industries to protect and improve the quality of groundwater resources across Canada.
PRIVATE MEMBER’S BILL AIMS TO PROTECT FRESH WATER
On July 21, Lindsay Mathyssen, Member of Parliament for London/Fanshawe in Ontario, introduced a Private Member’s Bill to protect fresh water. Bill C-245, The National Freshwater Strategy Act aims at modernizing Canada’s policies on fresh water.
The bill calls on the Minister of the Environment to consult with representatives of provincial and municipal governments, Indigenous groups, freshwater and climate scientists and researchers, and representatives of civil society such organizations as environmental groups to develop a national strategy for the conservation, protection and use of fresh water.
The strategy is in relation to drinking water standards and their implementation; the consideration of freshwater issues in international agreements; the evaluation of water and wastewater infrastructure in Canada in light of climate change; the reduction of eutrophication in Canada’s freshwater lakes; the protection of freshwater biodiversity and ecosystems; and the identification and resolution of knowledge gaps in relation to groundwater.
The MP may be contacted through OpenParliament.ca.
• Contribute industry knowledge and expertise to the development of relevant and effective Canadian federal and provincial groundwater legislation.
• Help prepare future generations of well drillers, contractors, suppliers, scientists, and engineers through outreach, education, and accreditation.
For more information on the association and how to become a voting member to have a say in the creation of bylaws and other groundwater industry issues, see page 11-12 of this magazine. For updates, visit groundwatercanada.com and follow us on Twitter, Facebook and Instagram. Reach out to the CNGWA to share ideas (info@cngwa.ca), donate (accounts@cngwa. ca) or ask questions (executivedirector@cngwa.ca).
NGWA OFFERS NEW PFAS EDUCATIONAL RESOURCES FOR PRIVATE WELL OWNERS
The National Ground Water Association has released two new educational resources for private well owners concerning per- and polyfluoroalkyl substances (PFAS).
NGWA’s “PFAS and Private Well Owners: What You Need to Know” fact sheet is an accessible and easy-tounderstand document written by members of the association’s PFAS Task Force focusing on everything private well owners should know about the impacts of PFAS on their wells.
PFAS and private water wells are also the topic of NGWA’s premier episode of its new podcast, “Know Your Well.” Each week, “Know Your Well” explores different issues facing private water well owners, from basic well maintenance to water quality. In this first episode, NGWA member and PFAS expert Karen Kinsella, PhD, discusses issues surrounding PFAS in water supplies and how they could affect private water systems.
Both resources are available for a free download at NGWA.org/PFAS and WellOwner.org.
In 2018, NGWA published “Groundwater and PFAS: State of Knowledge and Practice,” which was one of the first PFAS guidance documents to be released.
“PFAS contamination of groundwater is a serious issue affecting many communities throughout the United States and the world,” said David S. Lipson, PhD, PG, the NGWA PFAS Task Force chairman and principal hydrogeologist at HRS Water Consultants Inc. “NGWA is the best resource for private well owners who have questions about PFAS, other emerging contaminants, and the safety of their water supply.”
For more information, readers may contact Ben Frech at bfrech@ngwa.org or call 614-898-7791, ext. 1570.
It’s simple to install with the power to handle jobs up to 30 hp. Designed specifically for water systems, so you don’t have to waste your time with over-complicated VFDs.
DRILLING DOWN
Results of GWC’s first survey offer industry overview
We asked nosey questions and you answered. The results of Ground Water Canada ’ s first Ground Water Professionals Survey are in.
To everyone who responded openly and constructively, thank you for your feedback. As you’ll see below, it is giving us all a bird’s eye view of your work, helping us better understand your daily challenges and pointing the way forward for the industry.
The survey, co-sponsored with the Canadian National Ground Water Association and the Ontario Ground Water Association, gathered information and opinions from 94 participants, including water-well contractors who are owner or partner in their business, pump contractors who are owner or partner in their business, and engineers and scientists with professional designations. Some used the “other” category to describe their role in the industry: water operators no longer certified to install, association staff, owners of pump and water treatment businesses, government groundwater technologists, water line locators and retired groundwater consultants and manufacturers/suppliers to the industry.
WHO ARE YOU?
31% of respondents described their business as pump installation and servicing, while 25% said they were engaged in water-well drilling and servicing. 20% do professional consulting, 17% list “other” responses, including well head and pump installation and servicing, filtration sales and service, aquifer testing, pump distribution, manufacturer, consulting/ supply/commissioning and wholesale business. 4% do geothermal drilling and servicing and 3% do geotechnical drilling and servicing.
RATES
Drilling rates have often been a source of frustration, with price undercutting all too often creating bidding wars among contractors for jobs.
We asked you to compare your current drilling rates to those your operation was paid in 2015. Answers suggest monitoring of prices over time may not be a priority for some. 29% of survey participants said their rates have increased by more than 10%. One-fifth (21%) weren’t sure. 18% said their rates have increased by 3-5%.
WORKLOAD
It’s no surprise that people in this industry are a hardworking bunch. 82% of you work 12 months of the year. Those who don’t work year-round, work an average of seven months of the year. Many of you – just over half of participants – work 31-50 hours per week. 34% push the envelope at 51-70 hours. A few (8%) report working a whopping 71-90 hours per week and one person clocked in at 110 hours (we appreciate you taking the time to fill out the survey)!
Most businesses (83%) reported working 41 or more weeks of the year. Just under 10% work 31-40 weeks. About 7% work 21-30 weeks.
Almost half of you (45%) work more than 55 hours per week. About one-quarter of you (24%) work 46-50 hours per week. 13% fall somewhere in between with 51-55 hours per week. 5% work 41-45 hours per week, 7% work 35-40 and 4% work less than 35 hours due to, among other reasons, semiretirement.
OPERATIONS
by COLLEEN CROSS
Participants hailed from Ontario (41%), Alberta (20%) and British Columbia (14%). A smattering of participants were from each of Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia and Prince Edward Island. The average number of business locations was two, suggesting many of you operate from one location. A couple of responses, giving a nod to growth and/or consolidation listed five locations.
When asked what activities their business is involved in, the most frequent answers were pump installation (65%), flow testing (62%), pump sizing (62%), well decommissioning (60%), water-well maintenance and repair (54%), pump sales (54%), water-well inspections (53%), installation of pressure tanks (53%), well rehabilitation (53%) and water-well inspections (52%). Many of you do equipment upgrades and replacement (49%), pump system rehabilitation (49%), water system design (47%), water treatment (45%), well upgrades/alteration, water filtration (42%), new industrial waterwell construction (38%), installation of controls, including variable frequency drives (38%), down-hole camera inspections, waterline trenching and installation (36%), new agricultural water-well construction (34%), new monitoring water-well construction (33%), electrical installation (pumping system to disconnect), new municipal water-well construction (31%) and water-well remediation (31%). Direct push and hydrogeologic analysis were
INDUSTRY SURVEY
among activities mentioned that were not in the survey options.
We asked drillers to share their preferred methods. Air rotary led the pack (41%). Mud rotary came in second at 24%. Cable-tool and auger drilling each got 16% of the responses. Then sonic (10%) and diamond (6%). Choices were rounded out with directional drilling, jetting, digging and boring (with 4% each) and handdriving (two%).
Drilling is a specialized and rather solitary business, so it’s no surprise that more than half of businesses employ a team of less than five people and 4% are a one-driller show. Quite a number (21%) have teams of 10 or less.
For drilling contractors, between 50 and 100 new wells drilled per year was the sweet spot for many (34%).
When it comes to office work, almost all (98%) use a professional accountant, 33% use a professional bookkeeper and a professional tax service. Under “other” some of you specified family, Canadian Federation of Independent Business, bookkeeping/ advertising done in house and legal counsel.
PROFIT
21% reported an average annual gross revenue of $251,000-$500,000. An equal percentage were in the next bracket of $501,000-$250,000. 20%
came in at $1,000,000-$2,000,000. About 15% reported gross revenue of under $100,000. An average of 53% of this figure is from well work only.
We asked participants to put pencil to paper to estimate their 2019 profit margin. What did they bank, measured as per cent, or, expressed another way, profit before income tax divided by total revenue. For example, $5,000 of profit on $100,000 of revenue = 5% profit margin. Encouragingly, 22% of you estimated 2019 profits at 11-15%. 18% of you made three to 5% in profits.
recruiting price undercutting profits
16% of you pulled in a healthy 20%plus in profits. About 14% were in the 6-10% bracket.
On the down side, 6% reported bringing in one to 2% profit, operating at a loss or being unsure about profits.
Quite a few of you (64%) found your profits fell in a similar range to the two previous years. For 6% profits were slightly higher. For 14% they were slightly lower.
What profit should you be making?
More than half of you thought a
CONTINUED ON PAGE 27
BECOME A VOTING MEMBER
In the new association...
In the forming of relationships within our industry in the other provinces and territories within Canada
In helping all the provinces and territories get on the same level playing field regarding groundwater
To all regulators and the federal government
The time is right, never been better for us to be “stronger together”.
Share the driver’s seat in the new association with your industry colleagues. Meetings are electronic by video conference and telephone no travel no heavy commitments
Be part of our groundwater force from coast to coast to coast
The Canadian National Ground Water Association exists to:
•Increase public awareness of the critical importance of ground water to Canadian society and the economy.
•Advocate governments and industries to protect and improve the quality of ground water resources across Canada.
•Contribute industry knowledge and expertise to the development of relevant and effective Canadian federal and provincial ground water legislation.
•Help prepare future generations of well drillers, contractors, suppliers, scientists, and engineers through outreach, education, and accreditation.
• National Unity – Have a Voice
• Continuing Education Program coming available to all members
• Many future benefits to unfold
• Have ideas of what you wish to see in our National Association. Let us know
• Sign up now and get a chance to win a Heron Instruments Datum Point Central Control Well Monitoring System complete with data logger (Value $3,000) For further information please contact Craig at executivedirector@cngwa.ca
WE’RE HERE TO HELP
Hello, everyone.
By the time you read this, the kids will be back in school (hopefully) and the push will be on for the busy fall season. I hope that everyone is remaining healthy and safe and continues to implement the procedures and protocols necessary to minimize any potential second wave.
Over the summer the Ontario Ground Water Association board and staff have continued to work hard behind the scenes. We have had several video conference meetings and have been busy on numerous fronts. Our main focus has been on membership support, keeping track of the evolving government programs and planning our annual Sept. 18 scholarship golf tournament. While taking on a different form this year, it is sure to be another great success. An overhaul and update of our website continues and we plan to unveil the improvements soon. We have also been determining our requirements for the annual general meeting that has been in limbo since the Province declared a state of emergency. We are working through some options and will keep you updated as we move forward.
and other support measures. Your business assistant at the CFIB can answer all of your questions about how these programs can be accessed and used. Once again, the benefits of the free CFIB membership that comes with your paid OGWA membership should be quite apparent. The weekly OGWA email will also keep you supplied with the latest information and resources.
As always, please continue following all of the Health Canada and local guidelines for masking, physical distancing, hand washing, the size of your “bubble” and avoiding unnecessary contacts.
Please do not hesitate to get in touch with me, or the OGWA staff, with any of your questions, concerns or suggestions. We are always here to help. Be healthy. Be safe. Be well.
MATT WILSON, President
INSIDE THE ISSUE
Executive Director’s Report
Make groundwater a boastable asset!
Rural well water testing packages
Brought to you by Well Wise and the Ontario Ground Water Association
OGWA membership application
Time to apply or renew!
CFIB benefits
Our partner, the Canadian
Through the OGWA’s partnership with the Canadian Federation of Independent Business, you have recently been sent updates with regards to the Canada Emergency Wage Subsidy program (CEWS), the transitioning of the Canada Emergency Response Benefit (CERB) to Employment Insurance that will be rolling out over the coming weeks and months, updates for the small business loan program, rent programs
PUBLISHED FOR THE ONTARIO GROUND WATER ASSOCIATION
Canadian Pipe & Pump Supply Ltd. 416-244-6476 Fax: 416- 241-2022
JEFFERY MCCRACKEN
Franklin Electric 647-641-2178
KYLE SMITH
Aardvark Drilling Inc. 519-826-9340 Fax: 519-826-9108
BRYAN WATSON
Hart & Sons Well Drilling Ltd. 705-887-3331 Fax 705-887-4788
MATTHEW D. WILSON
J.B. Wilson & Son Well Drilling Ltd.
519-639-9988 Fax: 519-269-3552
MAKE GROUNDWATER A BOAST-ABLE ASSET
I trust you are safe and well as you read this. COVID-19 remains all around us. I said in the last issue our vigilance is a necessity in maintaining our physical health and well-being. It is paramount to preventing the rampant spread of this virus. The consequence of a lack of vigilance and/or not taking this virus or, frankly, any public health situation seriously can be seen all too clearly south of our border.
We must be aware of what is going on around us, from what is at hand to what is in the world.
What has become abundantly clear to me, however, is the fact that these “things” going on around us are all moving targets, precious little seems stationary anymore. I have talked about change before in this column, but I am now realizing the speed of that change is an important variable that must be considered, watched and calculated.
What is at hand and what we encounter in our daily lives are the easiest to keep an eye on. However, gradual changes daily can often be easily overlooked because they are gradual, creeping slowly into the mix. But they are close and generally noticed sooner.
As we consider those changes happening further afield, we realize that unless we are paying attention, they can happen without there being any warning. Suddenly we discover something new, something different or a standard we had no clue was on the horizon.
I believe that we in the groundwater industry are in a totally unique situation.
As important as water is and as vital to the health, well-being and economies of humankind, our industry is largely ignored. Especially by those in North America who rely on it for their daily living but are complacent in its importance.
Groundwater just is not sexy; it is not seen as a boast-able asset. Water: who cares?
That, ladies and gentlemen, is our fault. The fault of this industry. We must talk about it.
People do not know their water supply could be better and if they do not know it could be better, they don’t want it to be. If they don’t want it to be better, this industry is not going to sell it.
In the local hockey arena, mall or church (when we were able to congregate there) one could always hear lots of talk about new cars, SUVs, pickups, snowmobiles, four-wheelers, tractors, motorhomes, boats and trips to no end. When, if ever, have you heard someone boasting about a well or pumping system, or both? About how much water they have available and how good their water is. About how they can run the dishwasher and take a shower at the same time they are watering the lawn or topping up the pool or any other brag-able quality. Yet we all need water every day. Not everyone – unless you are on a municipal system – has the same amount available and household plumbing determines how much you can get at once. It is inconvenient if we must calculate when and how we can use it: “Oh, I cannot put on the washer while Jack is in the shower.”
Water can be a luxury for some but a heartache for others. With so many variables, I do not understand why it is not talked about. Why aren’t circumstances compared? How much horsepower your vehicle has and how fast it will go is talked about but not how good your water is. This lack of comparison of yours to mine is what has led to the complacency that leaves water, wells and pumping systems so misunderstood. People do not know their water supply could be better and if they do not know it could be better, they don’t want it to be. If they don’t want it to be better, this industry is not going to sell it.
Simple as that: desire breeds sales. Did I mention cars, SUVs, pickups, snowmobiles and the like?
So, we must share our wisdom and get people talking about water. We must make them understand that the quality they have might be far less than what they could have and the price for it far less than the price of that car sitting in the driveway. We must educate our consumer.
Earlier I mentioned paying attention to what is going on further afield, keeping an eye on the horizon. That includes regulation and legislation changes, which are sometimes good, sometimes not so much.
Keeping in the know can be quite a chore.
On July 21 there was the First Reading in Parliament in Ottawa of Bill C-245, known as the National Freshwater Strategy Act. it was sponsored my Lindsay Mathyssen, MP for London-Fanshawe as a Private Member’s Bill. Now that Parliament has been prorogued, this bill sits. Will it survive to its second reading? That will remain to be seen. It is possible with the new rules but there are no guarantees. I have a call in to Lindsay Mathyssen and I will report to you.
What goes on in Ontario originates from Toronto provincially and Ottawa federally. Regardless of where you are, it is difficult to keep up on everything. But you must. Individual provinces and territories are making policy and decisions under federal guidelines that affect those of you in the industry in that province or territory. That is the way it has always been since 1970. It appears the federal government has some interest in making changes to the Canada Water Act proclaimed in September of 1970. I told you of the Canada Water Agency in my last column. What does the process of redoing the Canada Water Act mean to our industry? The fact is we do not know, but we must know, because if we sit back and wait we will likely find out too late. The industry most affected must keep an eye on the process. This is one of those changes from further afield I mentioned earlier that can be slow and unassuming, but no less – and perhaps even more – important than one happening right under your nose.
We hear lots of talk about new cars, SUVs, pickups,
boats and trips to no end. When, if ever, have you heard someone boasting about a well or pumping system, or both? About how they can run the dishwasher and take a shower at the same time they are watering the lawn or topping up the pool or any other brag-able quality. Yet we all need water every day.
voting membership. To have a say in the direction of the CNGWA, your next step is to join as a voting member. It makes perfect sense and it is not expensive. Stand up and be counted. Be part of the voice of the Canadian industry. Promote and protect groundwater and your business.
The mission of the Canadian National Ground Water Association, as adopted by the CNGWA board of directors, is to:
• Increase public awareness of the critical importance of ground water to Canadian society and the economy.
• Advocate governments and industries to protect and improve the quality of ground water resources across Canada.
What to do? I recommend you join, support and participate in your groundwater associations. Yes, that is plural: your provincial and your federal associations. That is what they are for – to keep up on this kind of stuff on your behalf. They can suffer all the verbiage, the little stuff, and let you know when it is time to really pay attention and act. Many of you are members of your provincial association. Good on you – so you should be. But what about a federal association? In the past the CGWA was an association of associations and you were a member through your provincial association. Not so now. The new Canadian National Ground Water Association has provided everyone in the industry in Canada a membership, but that is not a
• Contribute industry knowledge and expertise to the development of relevant and effective Canadian federal and provincial groundwater legislation.
• Help prepare future generations of well drillers, contractors, suppliers, scientists, and engineers through outreach, education, and accreditation.
An application for voting membership appears elsewhere in this edition. I highly recommend you join the CNGWA if you have not already. We need all the help we can muster and your vote is important. Talk groundwater to anyone who will listen and remember this: We are better together!
CRAIG STAINTON, Executive Director
snowmobiles, four-wheelers, tractors, motorhomes,
PHOTO: URSULA GALLAGHER, LITMUS DESIGN
RURAL WELL WATER TESTING PACKAGES
Rural Well Water Testing Packages
Brought to you by Well Wise and the Ontario Ground Water Association
Brought to you by Well Wise and the Ontario Ground Water Association (OGWA)
Contractors or Well Owners
• To order by phone call Jennifer Hudson at (519) 245 -7194 x 101
• Or visit our website to use our fillable PDF form and submit it to admin@ogwa.ca or by fax to (519) 245 -7196
For Bacterial Testing: Please contact your local Public Health Unit. The Ontario Government offers residents free testing of your private well water for total Coliforms and E. Co li.
Fuels $ 215.00**
Solvents $ 135.99**
Metals, Minerals and Salts $ 169.99**
“Detailed general chemistry package; all wells should be screened for these impurities.”
This package tests more than 40 parameters. It is a good general chemistry water testing package providing well owners with a detailed understanding of impurities that may be in their water because of rock or surrounding land uses. It includes hardness, iron and heavy metals.
These packages are useful if you live near a gas station, if you have underground fuel storage or industrial uses nearby or if you have any reason to suspect an issue with petroleum products in your water supply. Combining both test packages will assess 40 different compounds and includes: Benzene, vin yl chloride, acetone, chloroform and methyl bromide .
Visit our Website for additional information www.ogwa.ca
Test Kits are couriered to your business or home, then picked up and delivered to the lab.
** Shipping cost, administration and taxes are additional to the prices listed.
(For the Year 2020)
Please continue and complete
COMPANY NAME
Ontario Ground Water Association Membership Benefits ONTARIO GROUND WATER ASSOCIATION MEMBERSHIP BENEFITS
Ontario Ground Water Association Membership Benefits
Ontario Ground Water Association Membership Benefits
Ontario Ground Water Association Membership Benefits
The OGWA has negotiated special Corporate Membership rates with the 3 district areas in Ontario with CAA. Please remember besides roadside assistance CAA offer members discountson many goods and services. CAA Members can enjoy the features and services offered by affiliate auto clubs across North America and around the world.
The OGWA has negotiated special Corporate Membership rates with the 3 district areas in Ontario with CAA. Please remember besides roadside assistance CAA offer members discounts on many goods and services. CAA Members can enjoy the features and services offered by affiliate auto clubs across North America and around the world.
The OGWA has negotiated special Corporate Membership rates with the 3 district areas in Ontario with CAA. Please remember besides roadside assistance CAA offer members discounts on many goods and services. CAA Members can enjoy the features and services offered by affiliate auto clubs across North America and around the world.
Enjoy all the Benefits brought to you by being associated with the NGWA, as a member of the Ontario Ground Water Association you will have access to many of the programs and offerings brought to you by the largest groundwater association in the world.
Enjoy all the Benefits brought to you by being associated with the NGWA, as a member of the Ontario Ground Water Association you will have access to many of the programs and offerings brought to you by the largest groundwater association in the world.
Enjoy all the Benefits brought to you by being associated with the NGWA, as a member of the Ontario Ground Water Association you will have access to many of the programs and offerings brought to you by the largest groundwater association in the world.
As the largest insurer of groundwater contractors in Canada, Lackner McLennan Insurance has made available a unique and taylor-made product covering all aspects of your insurance requirements. Starting back in 1992 they have continued to service the industry’s changing requirements and have earned the trust of over 200 professional groundwater companies. Your company’s assets are your investment and Lackner McLennan will provide you the protection required for you Automobiles, Buildings, Contents, Equipment and Commercial Liability.
As the largest insurer of groundwater contractors in Canada, Lackner McLennan Insurance has made available a unique and taylor-made product covering all aspects of your insurance requirements. Starting back in 1992 they have continued to service the industryʼs changing requirements and have earned the trust of over 200 professional groundwater companies. Your companyʼs assets are your investment and Lackner McLennan will provide you the protection required for you Automobiles, Buildings, Contents, Equipment and Commercial Liability.
As the largest insurer of groundwater contractors in Canada, Lackner McLennan Insurance has made available a unique and taylor-made product covering all aspects of your insurance requirements. Starting back in 1992 they have continued to service the industryʼs changing requirements and have earned the trust of over 200 professional groundwater companies. Your companyʼs assets are your investment and Lackner McLennan will provide you the protection required for you Automobiles, Buildings, Contents, Equipment and Commercial Liability.
Recently through the Economical Insurance Company, we can now offer a reduced cost Home and Automobile insurance product available to all your employees. This offering is an employment benefit that comes to you at no cost. Have your employees call direct for savings on their personal insurance requirements.
Recently through the Economical Insurance Company, we can now offer a reduced cost Home and Automobile insurance product available to all your employees. This offering is an employment benefit that comes to you at no cost. Have your employees call direct for savings on their personal insurance requirements.
Recently through the Economical Insurance Company, we can now offer a reduced cost Home and Automobile insurance product available to all your employees. This offering is an employment benefit that comes to you at no cost. Have your employees call direct for savings on their personal insurance requirements.
Thrifty Car Rental services offers special member rates and benefits throughout all their North American locations and access to their Blue-Chip Express Rental Program with availability to commercial vehicles - pickups and vans.
Thrifty Car Rental services offers special member rates and benefits throughout all their North American locations and access to their Blue-Chip Express Rental Program with availability to commercial vehicles - pickups and vans.
Thrifty Car Rental services offers special member rates and benefits throughout all their North American locations and access to their Blue-Chip Express Rental Program with availability to commercial vehicles - pickups and vans.
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SUCCESSION PLANNING
With our aging demographic and changing society, retirement-bound owners have big decisions ahead
The Boadway family has been providing water-well services in the Sutton, Ont., area since 1880, back when wells were dug by hand and pumps were crafted from wood.
by CAROLYN CAMILLERI
The Canadian Federation of Independent Business has a Succession Planning Toolkit available as a free download at www.cfib-fcei.ca/en/ succession. The site also includes a section called “Succession Matching” with links to various services specifically created to help small businesses find buyers at more affordable rates than large corporations offer.
Four generations later, in 1966, Roger Boadway took over the well-drilling aspect of the business and began manufacturing pumps in Stouffville. Roger is 84 now and still works seven days a week. His son Grant, the fifth generation, has been drilling for 38 years.
That’s a lot of history, but like many family businesses across Canada, the Boadways are faced with uncertainty about the future. Grant’s son isn’t likely to follow in his footsteps.
“I have a grandson and he’s getting older, so maybe, but I don’t know,” Grant says. “I’m 55 now and I plan on doing this for a lot longer yet, but it’s worrisome that it may end at the fifth generation.”
The Boadways are not the only family of well drillers facing this problem; Grant lists several others he knows. It’s a situation revealed in
data from Ground Water Canada’s recent survey: 33 per cent of respondents have no plan in place for the succession of their well-drilling business. That is balanced against 36 per cent who expect their children to assume control, while another 20 per cent say their children are unlikely to take up their business.
The problem is not unique to well drilling.
Corinne Pohlmann, senior vice-president of national affairs for the Canadian Federation of Independent Business, refers to a national survey that found that, prior to COVID-19, about 72 per cent of business owners wanted to exit their business within the next 10 years, mostly to retire.
“It’s an aging demographic,” Pohlmann says. “We’ve calculated that that equates to about $1.5 trillion in assets that would have to be
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BUSINESS
transitioned to a new generation.” COVID-19 may add pressures. “When times get tough, some of those plans can get delayed, so COVID may have pushed that off a little bit, or because of COVID, depending on the industry, it may have sped it up,” she says.
Surely, after dedicating your life to your business, it’s reasonable to expect some benefit. But there are barriers that relate to the evolution of the industry.
WHY IS IT SO DIFFICULT?
K.C. Craig Stainton, executive director of the Ontario Ground Water Association, offers some insightful perspective on why succession plans are so hard to grapple with in the well-drilling industry. He sees farmers facing the same issues.
“Around the early 1900s, the rural folk were dealing with a way of life where these big old farmhouses often housed three generations of the same family. No money exchanged hands in inheritance. The older of the generations
just assumed their children and their grandchildren would look after them and, with that, came the understanding where the kids just inherited everything,” Stainton says. “There was no worry, no concern about accumulating enough cash, putting it down on paper, getting it all worked out for the next generation to take over. And that’s not so much how it works today. Very rarely does it work that way.”
Grant Boadway concurs. “It goes back into the farmer’s style, when you’ve got big family farms and, a lot of times, when the family has taken over the farmhouse, the original farmer moves off onto another lot and retires there,” Grant says. “But he’s always in the background, he’s always on the scene, because once you have that interest for that many years, it’s pretty hard just to walk away and shut it off.”
Those who do exit the business need a source of retirement income – and that income may be tied to the business or to the value of the equipment.
THANK YOU GRACE AND BRANDI!
“I have heard of struggles in succession planning where the older generation ¬– the one that has ownership of all the equipment, the business, everything – wants to pass it to his son and his son wants to have it, but all of the father’s savings for his retirement, everything he has, is tied up in that equipment and that business,” Stainton says. “That means the son has to go out and independently come up with the cash to buy out his father, or they have to come to some kind of agreement, and it can become very complicated.”
Complicated indeed: many people still balk at the idea of formalizing family transactions, and it’s not always an easy topic to bring up over the dinner table. Other agreements are less challenging. Roger tells the story of one family, wherein the father received a new Cadillac every three years. “It also depends on the individual parent,” he says. “A parent might say, ‘Oh, well, I’ve had my day, see what you can do with it.’”
Nurses are the heart of healthcare and always deserve our gratitude-but especially during these trying times. I wanted to give a special thanks to my daughter and daugter-in-law, Grace and Brandi, you are heroes in my book! –Kevin McGinnis, President
But whatever agreement is reached, it has to begin with a discussion.
“We know about 25 per cent want to sell to family members, another one in five wants to transfer [give] the business to their family members,” Pohlmann says. “But first of all, you have to communicate that to your family members early on.”
As far as transferring a business from
“It’s not easy to sell a business when the owner is sometimes 50 per cent of the value of the business, because they have the skills and the knowledge to properly run it.”
Corinne Pohlmann, CFIB
one generation to the next goes, Roger says it isn’t that challenging. “Because with all companies that are registered companies, you have shares in the company, and the family just purchases shares over a period of years,” Roger says. “Or the owner of the company might give, each year as a bonus, a thousand shares depending on how many shares are there. And so that way, it’s a very easy takeover.”
An advantage when family members take over is that a transition period can take place, often with years of overlap and shared experience.
But what if no one in the family wants the business or is qualified to run it?
“Then obviously you have got to look for other options,” Pohlmann says. “It can be anything from trying to find a third-party buyer or an arm’s-length type of buyer, which is where most people end up going. And it can be anything from a total stranger to an employee or management buyout or it could be a larger company taking over.”
SELLING THE BUSINESS
One of the biggest challenges in selling a business is finding a buyer.
“It is not easy, and it sometimes can be quite expensive because you don’t necessarily want to advertise to your employees and to your suppliers and to your customers that you’re trying to sell your business,” Pohlmann says. “It has to be done a bit more discreetly.”
She says there are better tools today
than there were in the past. “It used to be you had to go to a large consulting firm who would then manage that all for you, and that can cost quite a bit of money,” she says. “But now there are more organizations out there that are trying to help at a lower cost to find suitable buyers and successors for small firms knowing that so many of them are looking for ways to keep their business going.”
Another big barrier is figuring out the
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value of the business. “It’s not easy to sell a business when the owner is sometimes 50 per cent of the value of the business, because they have the skills and the knowledge to properly run it,” Pohlmann says.
The Boadways are a case in point. “One of the biggest challenges is training people on how to do it in our specific area,” Roger says. “We’re in an overburdened area where we’re dealing with a lot of very thin aquifers. In some areas, we have to set our casing within one inch to have clean and potable water – within one inch. And as soon as that drill bit goes out of sight, you’re in the dark. From then on, it’s a learning curve that you’ve learned over many years.”
Provided you can find someone willing to learn. “It’s a whole different era and a whole different society. It’s hard to find somebody that wants to get their hands dirty, Monday to Friday, 45 hours a week,” Grant says. “It’s 4,000 hours to be a class 1 driller, which goes by fairly quick within a couple of years of training
somebody. But then afterwards, you have to be able to afford new equipment so you can send that person you just got trained and licensed off on their own and get themselves another helper in the field.”
Of course, selling to another welldrilling company is a possible option: recent examples include the growth of Friesen Drillers and Aardvark Drilling’s equipment purchase from Gerrits Drilling and Engineering.
Yet another option is shutting the whole business down – a difficult decision too if you, and possibly generations before you, have devoted your working life to your venture. Still, more independent businesses are choosing this route – about 15 per cent of small businesses, according to Pohlmann’s figures.
SELLING TO EMPLOYEES
A further option is attracting increasing attention: selling to employees. Grant Boadway says the employees they have
now are “number 1 guys.”
“Our guys have all been with us for 10 years plus,” Grant says. “We get good compliments from our customers, and your employee is a reflection of the company. And they do fantastic work. They’re bang on: we don’t get call backs, and, if we do get a call back, we always address it immediately.”
Roger concurs: “We have really good employees right now. And they’re young, in their 30s and 40s. And I’ve said to Grant, maybe when we’re done with it, if there isn’t a sixth generation, maybe the name might go on through the employees buying the business. But it’s a very hard call at the present time just which way it’ll all go.”
It is also a big decision for the employees. At Haliburton Artesian Well Drillers, Jake Woodward and Dave Walker are both former employees who are now co-owners. Rick Ruttig, who started the business in Haliburton, Ont., in 1989, sold Woodward and Walker the business in March 2019, but discussions
BUSINESS
started more than four years before. Ruttig remains active in sales and site inspections for the business.
“Both of us [Woodward and Walker] live here full time and know all the contractors – everybody we worked with before we purchased the company,” Woodward says. “The only thing that changed is that I am now doing the scheduling and talking to all the customers directly.”
Woodward adds that a transition to ownership like theirs would be difficult if they weren’t from the same town or situation and didn’t have the drilling background or experience.
“My parents actually own a place called The Pump Shop in Haliburton, so I was born around wells and pumps, so that played a part in it, too” he says. He says the business transition was fairly straightforward. “It definitely took some time to decide on some final numbers, and structuring the financing took a little bit of time,” he says. “We dealt with BDC and also the HCDC,
Haliburton County Development Corporation.”
While Woodward and Walker were able to make a down payment, Woodward says financing can be challenging for some.
“Something that might make it easier for some people, and some people might be more open to it, would be vendortakeback structures, like the owner of the company holds a part of the mortgage for the company, so the buyer doesn’t have to come up with as much – like a private financing situation,”
Woodward says. “I think more sellers should be open to creative financing. That would help out the buyer a lot more.”
Having Ruttig still involved with the company also helps: he deals with customers, oftentimes on weekends, which allows Walker and Woodward to be actively drilling.
“It’s definitely been a learning experience as well. It’d be nice to have a helper to free up some time for myself to
work more on the company and less in it,” Woodward says.
He offers some tips to anyone transitioning their business, whether to family members or business partners.
“Do job descriptions before and be very black and white with your partner about what role each plays,” he says. “And even before the purchase has been done, lay out goals, where you want to be in one year to, say, five years. I think setting goals is a really crucial thing with buying a new company.”
He notes that with baby boomers retiring and selling businesses, selling to employees is going to be more common. “There are so many opportunities, not just in drilling, but in small businesses all over North America.”
LOOKING AHEAD
Whichever way a business owner decides to go, time is needed to sort it out properly.
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“It’s so important when you’re looking to exit your business that you start that process, not just six months in advance, but years, like three to five years in advance, so you can find a suitable successor, start the training process, and make sure the handover is smooth,” Pohlmann says. “You can’t do that in six
Beyond the individual businesses is the worry about the future of the industry. “In the London area, there once were six active well-drilling companies and it’s now down to two,” Stainton says. “The underlying trend is that we are losing more well-drilling companies every year. We are not even maintaining the status quo and that scares me as we look 20 years in advance.”
Roger Boadway shares that concern: “It’s a dying trade in that you’re not going to have people that are going to be able to go out and even refurbish a lot of wells in 10 to 20 years. And if there isn’t somebody there in 10 to 20 years, it’s going to be serious, because they can’t run a pipeline to everybody in the country. They just can’t.”
Cost aside, quality of pipeline water is also a growing concern for many, and it is hard to imagine a future without properly maintained wells.
INDUSTRY SURVEY
DRILLING DOWN
CONTINUED FROM PAGE 10
fair profit range for an established, productive contractor was 16-20%. 22% felt 11-15% was fair. All agreed less than 3% was not a fair margin for work done. A small group (5%) aspired to 30-40% profit.
But fair and acceptable are two different things. To gauge satisfaction, we asked, “Are you able to make the profit you wish to make and pay your employees enough?” 76% of you answered yes.
A slight majority (55%) said pay rate and benefits are an obstacle to keeping employees. “In an oilfield-based economy everyone with a pulse thinks they deserve $40/hr,” one respondent commented. “We tend not to hire people with a lot of oilfield experience on their resumé.”
WAGES
Just over half who earn an hourly wage listed their average pay rate, excluding benefits, as $30/hour, while 20% pegged it at $16-20/hour and another 20% pegged it at $21-25/hour.
Owners reported average driller pay rates (benefits excluded) at $2630/hour for 36% of you. However, a number of you (23%) reported paying rates of $21-$25/hour and an equal number reported paying more than $30/hour. 14% reported paying $16-
$20/hour. Driller helper rates averaged $24/hour.
Average pump installer pay rates (benefits excluded) came in at $21-25/ hour for 40% of you. However, a number of you (33%) reported paying rates of $26-30/hour. 21% reported paying more than $30/hour. Pump installer helper rates averaged $22/hour.
Among non-owners who participated, 81% receive paid sick/ personal days. 78% have dental insurance coverage. 70% of employees have life insurance coverage. 67% receive paid vacation days beyond the legal minimum. 63% get additional medical/prescription coverage and another 63% receive vision coverage. 41% have their pension plans matched by their employer. 11% are included in profit sharing. Another 11% listed other benefits such as belonging to a union, working on contract and disability insurance.
OPERATOR COSTS
Looking at how costs have changed in the past three years, participants were asked to rate each of several costs using a scale from significantly lower, to significantly higher.
Significantly higher were machinery purchase costs (38%), machinery parts and service costs (45%), material costs for resale (for example, well casing) (43%), fuel (25%) and insurance (19%).
Significantly lower were machinery parts and service, material costs for resale (for example, well casing) (14%), labour, workers compensation rates (9%), fuel (6%), insurance (6%) and finance (14%).
CHALLENGES
Which challenges stand out over the next three years? Each challenge was rated as not overly important, fairly important or very important. Rated as very important in order of weight:
• Overall health of the Canadian ground water industry (65%)
• Ability to attract and retain employees (62%) – we’ll study this challenge in depth in 2021
• Cost of insurance (53%)
• Cost of fuel (45%)
• Ability to maintain or improve the productivity of my operation (42%)
• Cost of machinery (40%)
• Access to financing (37%)
• Ability to attract buyers for my business (25%)
Several challenges not included as choices in the survey were pointed out by participants: succession planning for retirement, flawed groundwater legislation, the ability to charge a fair price for services without having a bidding war with other contractors that do not realize they are giving their work away, capitalizing on having perceived water quality advantage
INDUSTRY SURVEY
over city tap water, raising awareness of the need for industry improvement and drilling restrictions in water-short areas.
SUCCESSION
Although not everyone revealed their age, 55% of non-owners were over 50 years old and nearly 20% were between 25 and 40 years old.
A quarter of you planned to continue in the industry for another six to 10 years. Almost as many (23%) planned to be in business for more than 20 more years. 21% were looking to leave the industry within five years.
Well over one-third (36%) of you expect some or all of your children to assume control of your business. Some expect to sell to another contractor (14%). A few (7%) have managers interested in or planning to take over and another 7% will sell/auction my equipment and shut down when they retire. A full one-third (33%) do not currently have a succession plan. Read “Succession planning” starting on page20 of this edition for an in-depth look at how some contractors are handling the transition and advice from experts on how to do succession planning well.
27% of participants said they have children currently working in the operation who will likely take over.
WHAT MOTIVATES PEOPLE TO WORK IN THIS INDUSTRY? HERE ARE A FEW POPULAR FACTORS: 64%
The variety and challenge of the role 63%
The people (co-workers) I get to work with 61% My independence
The clients (well owners) I get to work for
Ability to work outdoors 35% Financial compensation 23% Ability to provide local employment 16%
Continuation of family tradition
20% are unlikely to be involved and/ or acquire the operation. As one respondent said, “They are into other pursuits.” 18% said their children are too young to be involved, but they hope they do so one day. A few have children currently working in the operation but with no plans for them to acquire it. 14% said they have no interest in their children getting involved in this business.
NATIONAL ASSOCIATION
Participants were asked what role the Canadian National Ground Water Association (CNGWA) should play in the groundwater industry. They could list as many priorities as they saw fit. Nearly three-quarters felt the CNGWA should advocate for the industry and present a united voice to the federal government. Almost 60% wanted to share information among members. More than half (53%) wanted making intergovernmental regulations on groundwater a priority. Just over half wanted to see sharing of groundwater data/well records and science federally and among provinces. 46% were in favour of networking with other associations and the same percentage wanted to see the association provide elite driller/pump installer certification across Canada. 34% wanted to focus on Canada only, while 22% wanted also
to focus on the United States. 38% wanted to have a say in where funds are allocated for groundwater and the industry. 32% said they are interested in networking with other business and industries.
Some participants identified other priorities, including certification, assisting provincial governments with developing functional legislation, establishing a standardized code for drillers and pump installers and providing leadership in groundwater management. One thoughtful respondent said, “I think one thing of value is to work with the provinces and federal government to recognize drilling and pump installation as Red Seal trades. Another is developing and delivering drilling/pumper education.”
THE FUTURE
with other associations relating to water (39%) and increased efficiencies on the business management side (38%) all were seen as opportunities for improvement. Other opportunities were identified include “Other training not related to Reg 903”, “Develop proper trades training to provide better pathways to employment and raise the standards of practice”, “Having higher standards of certified product” and “Communicating to public/regulators on the value of groundwater.”
More than half of you thought a fair profit range for an established, productive contractor was 16-20%.
We asked where opportunities for contractors lie to improve operations and/or profitability. The top response was clients putting more value on your services to allow higher prices (73%). Next were improved professionalism in the eyes of the client (66%) and improved co-operation between government and contractors (54%). Half of participants see opportunities in new technology (51%). 46% see increased efficiencies on the operations side as a path to better operations and/or profitability.
Improved or more frequent training (44%), partnerships
Although the survey sampling was relatively small, we learned much from our first survey, including the need to dive into the scientific side of groundwater as well as the business side. We will improve and update the survey periodically to better understand the industry’s needs. We urge you to participate in our next survey and be part of a conversation that needs to happen to ensure a healthy future.
The survey was conducted in June and extended to gain as much input as possible. Winners of the prize draw for two Visa gift cards worth $200 each are Donald V. Weir and Tom Burke. A complete 2020 Ground Water Professionals Survey summary report will be emailed to participants who provided their contact information. Thank you to our sponsors, the Ontario Ground Water Association and the Canadian Ground Water Association, who helped make this project possible.
Wielding your megaphone wisely
Practise three distinct steps to marketing your business online.
by Dave Mercer
The digital age has revolutionized marketing. It used to be that people found out about companies through magazine articles, brochures or presentations at conferences. Today companies self-publish online, and people find out about them through what they are saying digitally – as if through their own megaphone.
The result has been a complete change to the workflow that companies use to market themselves. This new marketing methodology consists of three phases: evangelism, interaction and repurposing.
In essence, companies create content (evangelism) in one place and replicate it across other places. The more replication and the more discussion (interaction) it generates the better, because all of this interlinked activity is tracked by search engine algorithms leading to higher rankings when someone does a Google search. Even more importantly, increased interaction with your posts leads to more people learning about your company and, eventually, more business.
As an example, let’s say your company has decided to host a webinar. Webinars are ideal for helping to establish your company as a thought leader and industry expert. They are also great marketing opportunities and ideal candidates for the evangelism, interaction and repurposing workflow. The biggest mistake companies make today is to treat a webinar like a talk at a conference where only those who were there in person can see it. If you’ve done the work to put together a webinar of this type, don’t let it go to waste.
With the digital process it’s under your control to make the content more approachable and shareable. A video copy of the webinar can be made available on your website. The webinar could be reformatted to be an audio podcast. Other posts can be made on social media platforms like LinkedIn: “5 takeaways from Friday’s seminar.” The webinar can be used to create blog content; maybe a series of short blog
posts from the presenter reducing the seminar to snippets? Each of these repurposed items can again be evangelized (that is, announced on social media), which creates opportunities for engagement (interaction).
Each step of the digital marketing workflow is equally significant. Evangelism is important, because you want your posts to be seen and your events to be well advertised and attended. But interaction is just as important. Each comment or question to a post needs to be followed up with a response. Otherwise, it’s like not returning a phone call and it can turn potential business away. And repurposing allows you to create more content so you can easily keep the cycle going.
You can’t opt out of the digital changeover –it’s happening regardless, especially now that COVID-19 has reduced face-to-face interactions. More than ever companies must include digital marketing as a cornerstone of their sales and marketing plans. And it needs to be done well: it’s better to do nothing than to do it badly. So, dedicate the time and resources and do it well.
Finding the right digital marketing approach is an ongoing process and can be adjusted as you learn what works best for you. Choose which digital marketing tools are best suited to your company’s business goals and tailor how you use the marketing workflow to achieve those goals.
In this article we’ve focused on the marketing process for wielding your digital megaphone. In the next article we’ll look at the tools you can use to carry it out.
Dave Mercer, P. Geo, spent over a decade managing ground water instrumentation projects around the world. Today he operates Underground Communications, offering specialized business development and marketing services in geology-related industries. Dave is also currently general manager of the British Columbia Ground Water Association. He can be reached at Dave@undergroundcommunications.ca.
