BIC June2015

PM41126516

Summer 2015 • Page 69

Golf: The Public Business of Rounds Played

5

NEWS

ar Se y C ha pa cti m o ge n be 8

Business Aviation Is Here to Stay

r

e Vis ions of Entr epreneurs

Ca lg

www.businessincalgary.com

JUNE 2015 $3.50

Sup por tin g th

Leaders never quit.

They may take it on the chin, they may get knocked down, but leaders get back up. We’ve done just that and continue to be in our clients’ corners, custom building solutions to help our clients do what they do best...lead.

Because Alberta means the world to us. atb.com/Leaders

TM

Trademarks of Alberta Treasury Branches.

UNDER CONSTRUCTION AND NOW LEASING

www.Place10.ca

FEATURES:

DOWNTOWN OFFICE AND RETAIL

PLACE 10 524 – 10TH AVENUE S.W.

2 Buildings Totaling 600,000+/- SqFt of Office 20,000+/- SqFt of Retail 14 Floors Roof Top Patio

Plus 15 Connected 456 Underground Parking Stalls East Tower Occupancy Fall 2017

Centron specializes in

real estate development, leasing, sales and construction of office, retail and industrial projects.

CENTRON CARES Building Our Community

BLACKFOOT POINT

SUBURBAN OFFICE UNDER CONSTRUCTION AND NOW LEASING

135,000 SqFt of First Class Office Space 194 Underground and 215 Surface Parking Stalls 4 Buildings – 1 and 2 Stories Ready for Tenant Fixturing

90,496 SqFt of First Class Office Space 256 Surface Parking Stalls 3 Buildings – 1 and 2 Stories Ready for Tenant Fixturing

SUBURBAN OFFICE OVER 60% LEASED

FOUNTAIN COURT

Centron Cares Foundation is proud to partner with Hull Services, constructing a new secure services building ~ set to commence this Spring

Phone: 403-252-1120 Email: leasing@centrongroup.com Centrongroup.com

This fall, call THE RIVER home.

Move into Calgary’s ultimate luxury development this fall.

Come home to a residence that is meticulously designed and impeccably appointed. Where privacy and security are

1

cherished, and where a Concierge is dedicated to your day.

Nestled on the Elbow River, in the heart of Mission, Calgary’s signature property awaits.

Rare are those who can call THE RIVER home.

Only 7 opportunities remain to own one of these truly stunning properties.

When they’re gone, so is your invitation to own the exceptional.

T H E R I V E R C A L G A R Y. C O M

Contact Anne Clarke,

Director of Sales

403.263.5133

anne@therivercalgary.com

Discovery Centre: Suite 203, 508 – 24th Avenue SW, Calgary, AB T2S 0K4 OUR DISCOVERY IS OPEN WEEKDAYS 11AM11th – 4PM Visit ourCENTRE DISCOVERY CENTRE: 120-396 Avenue SW. Open weekdays 11am- 4pm or call us to arrange a personal tour OR CALL US TO ARRANGE A PERSONAL TOUR.

THE RIVER is being developed by 26th Avenue River Investments Inc., a dynamic affiliate of Ledcor Properties Inc. The developer reserves the right to make changes to the information contained herein.

Renderings, photographs and maps are representational only and may not be accurate. E.&O.E.

P f

3 Unique Homes 39 Watermark Road 5306 sq ft of total development Offered at $2,295,000 3 + 2 bedrooms • 4.5 baths Outdoor Kitchen /Terrace w fireplace Modern/Prairie Style Elegance 3 car garage www.39watermarkroad.ca

October 31st Possession

348 Spyglass Way 8644 sq ft of total development Offered at $3,995,000 3 + 3 bedrooms • 7.5 baths Attached Guest House Walk-out Basement • 4 car garage Cascading Ponds & Mountain Views www.348spyglassway.ca

Available Now

111 Hillside Terrace 4,583 sq ft of total development Offered at $1,860,000 4 + 1 bedrooms • 4.5 baths Walk-out basement • 3 car garage Backing onto green space Overlooking pond www.111hillsideterrace.ca

60 Day Possession

3 Exquisite Opportunities

These 3 beautiful fully-furnished homes exemplify the diversity of design, and choices available through Wolf Custom Homes.

Call Gary Wade 403.804.0373 or Jaret Fry 403.874.9511 to arrange a private viewing or visit during showhome hours.

Prices do not include furnishings

Closed Mondays, 12-6pm Tues to Thurs, 12-5pm Fri, Sat,Sun & Holidays

w w w. w ol f c ustomhomes.ca

Roughly 3,000 Calgary students drop out of high school each year. This costs the local economy an estimated $15,850 annually per student.

JA and its donors are changing that

$50,000 and Over

$20,000 and Over

Over 65% of Junior Achievers indicate that JA programs had a significant impact on their decision to complete high school and enroll in post-secondary education $10,000 and Over

HUNTER FAMILY Foundation

$5,000 and Over

Our generous corporate donors are helping Junior Achievement build a vibrant financial future for southern Alberta*

Program donations - July, 2014 - June, 2015 to date only. Excludes special event sponsorship.

Supporting the visions of entrepreneurs one story at a time

Contents

|

Volume 25 | Number 6

PUBLISHERS

Pat Ottmann & Tim Ottmann

EDITOR

John Hardy

COPY EDITORS

Lisa Johnston & Nikki Mullett

ART DIRECTOR

Cher Compton cher@businessincalgary.com

On our cover…

Some of the many real estate projects that the Coril Group has been involved with over the years include (top to bottom, left to right of cover): the National Music Centre; Keynote Urban Village; Hyatt Regency Hotel; the Hudson Block; and the Clarence Block. Many of these either are, or incorporate, heritage buildings on Stephen Avenue in the heart of downtown Calgary.

National Music Centre rendering courtesy of Allied Works Architecture.

CONTRIBUTING DESIGNER ADMINISTRATION

JUNE 2015 $3.50

Nancy Bielecki nancy@businessincalgary.com Melissa Arthur info@businessincalgary.com Denise Templeton denise@businessincalgary.com

www.businessincalgary.com

Jessi Evetts

Sup por tin g th

e Vis ions of Entr epreneurs

REGULAR CONTRIBUTORS Richard Bronstein Frank Atkins David Parker

THIS ISSUE’S CONTRIBUTORS Dan Cooper Colleen Wallace Nerissa McNaughton Debra Ward Julia Marshall Cassandra McAuley Melanie Darbyshire

PHOTOGRAPHY

Interior portraits courtesy of Bookstrucker Photography

ADVERTISING SALES

44

Evelyn Dehner evelyn@businessincalgary.com Renee Neil renee@businessincalgary.com

PM41126516

1025, 101 6th Ave. SW Calgary, AB T2P 3P4 Tel: 403.264.3270 | Fax: 403.264.3276 Email: info@businessincalgary.com

69

SUBSCRIPTIONS

Online at www.businessincalgary.com Annual rates: $31.50 $45 USA $85 International Single Copy $3.50 Business in Calgary is delivered to over 33,500 business people every month including all registered business owners in Calgary, Banff, Canmore, Airdrie, Okotoks and the Calgary Chamber members.

51

5

Golf: The Public Business of Rounds Played

lga r Se y C ct ha ge ion mb e 8

EDITORIAL, ADVERTISING & ADMINISTRATIVE OFFICES

Summer 2015 • Page 69

Ca

NEWS

r

Business Aviation Is Here to Stay

Kelsi Vescarelli kelsi@businessincalgary.com

81

pa

Director of Custom Publishing

85

COVER FEATURE 44 • Building Calgary

Distinguished Business Leader Award honours Ron Mannix

By David Parker

The publisher does not assume any responsibility for the contents of any advertisement, and all representations of warranties made in such advertising are those of the advertiser and not of the publisher. No portion of this publication may be reproduced, in all or in part, without the written permission of the publisher. Canadian publications mail sales product agreement No. 41126516.

Find us online!

Return undeliverable Canadian addresses to circulation dept.

1025 101 6th Ave. SW Calgary, AB T2P 3P4 info@businessincalgary.com

www.businessincalgary.com 10 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Business in Calgary

@BusinessinYYC

Reaching your potential is our business!

At AFSC, every idea has a place to grow.

AFSC is Alberta’s Business Lender, and we have the financial solutions to help you reach your goals.

AFSC Commercial Loans Offer: • Loans up to $5 million • Personalized service and acceptance • No early payment penalty • Competitive interest rates

1-877-899-AFSC (2372) www.AFSC.ca

Supporting the visions of entrepreneurs one story at a time

Contents

|

Volume 25 | Number 6

38

THIS MONTH’S FEATURES

22 • Urbanomics | Urban Development Discussion: Building for a Changing Calgary

Demographics, cultural mix and what buyers want

38 • Still Flight of the Condo a boom?

By Melanie Darbyshire

51 • ByBusiness Aviation Is Here to Stay Debra Ward 55 • The New Ag

Efficiency and laptops in the barn

By Colleen Wallace

60 • The Just the Facts industry deals with a perfect storm

By John Hardy

65 • Dealing The Flux of Exports with ups and downs

By Dan Cooper

COMPANY PROFILES 77 • Wendy Ellen Inc. 10 Years

69 • Summer BOMA Calgary News 2015 81 • Calgary’s The Public Business of Rounds Played six public golf courses

By John Hardy

REGULAR COLUMNS 14 • ByMirror, Mirror on the Wall Richard Bronstein

55

16 • ByThe Great Disconnect Frank Atkins 18 • Farewell to Lonnie Tate 85 • Leading Business 89 • Current The Calgary Report developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary

94 • Marketing Matters

By David Parker

12 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

81

Living the Corporate Culture Let’s Ask an EOer

Keys to success

U

nlike business plans, flow charts and spreadsheets, corporate culture is an intangible. It’s a mindset. An attitude. Many business schools teach corporate culture as “shared standards and beliefs that define an organization’s character and nature.”

Most importantly, it is the shared values that are the core of an organization. Core Values. It’s what they do. It’s how they do it.

It’s who they are!

“Great organizations live their core values, every day,” says Glenn Street, Calgary EO member and “top dog” of Street Characters, the Calgary-based world leader of mascot costume design and creation. “It’s the DNA of the organization. And keep it simple! You don’t need thick policy manuals. Core values are guiding principles that everybody lives and works by.”

Jeff Bradshaw, Calgary EO member and president and CEO of V Strategies, agrees and adds that, in most companies, core values are personal. “Without core values, people would not have one focused direction. Core values help accomplish the same goals and achieve the same things.

“And buying into the core values is intentionally personal.

Making a decision is work, not personal. Making sure everyone is on-board is personal.”

Troy Ferguson, Calgary EO member and president and CEO of Calgary-based Redrock Camps, is in a somewhat unique corporate culture situation. His successful company designs and operates turnkey camps (workforce hospitality solutions) for

Contributing Members:

industries doing work in remote areas and, by nature, his staff is scattered all over the place.

“Our greatest challenge in our remote business is not to run it remotely. Communications is the key. We must communicate what our clients expect from us. Part of rapid growth like we have is keeping everyone up to speed,” Ferguson points out.

“Corporate culture creates loyalty and discipline. And our core values translate into an army that can deliver great service. At the end of the day, it’s all about human interaction and looking after clients.”

Companies usually have their own, individual methods for defining core values. Most target core values that inspire, motivate and are easy to remember and achieve.

For example, at V Strategies it’s make people happy, keep it simple, get creative, focus on solutions and do what’s right.

Others include core values like excellence, integrity, loyalty, consistency, “be the customer,” innovation and … have fun!

Many companies, like Redrock Camps, V Strategies and Street Characters, reinforce core values with staff activities and gestures. Some have “treat days” or monthly breakfast clubs or nooners when nobody is allowed to talk shop to daily huddles, gift cards and even group hugs.

“Companies with a strong corporate culture resonate well with their customers,” Street emphasizes a potent bonus. “People typically want to do business with people who actually live their values, daily.”

Upcoming Events: May 28th • Dr. Leonard Sax – Dinner Workshop June 3rd

Jeff Bradshaw

Glenn Street

Troy Ferguson

President and CEO, V Strategies Inc.

“Top dog”, Street Characters Inc.

President and CEO, Redrock Camps

• Leadership Breakfast – Ward Mallabone, Priviti Capital Corp.

June 11th • Accelerator Day – Finance June 12th

• President’s Year End Party – Heritage Park

July 2

• Annual Stampede Party

nd

The international Entrepreneurs’ Organization (EO) is the respected, world-wide business networking group — with more than 10,000 members in 35 countries — where business leaders meet informally to brainstorm, compare notes, learn and share relevant discussions about business.

EO has 122 chapters around the world, including the Calgary chapter which is the fifth largest and one of the most active EO chapters in the world.

www.eocalgary.com

|

For membership inquiries: membership@eocalgary.com

Mirror, Mirror on the Wall • Richard Bronstein

BY RICHARD BRONSTEIN

Mirror, Mirror on the Wall

T

here must be a skunk in the chicken coop for all the caterwauling coming from downtown Calgary.

“Completely devastating … capital can easily move out of Alberta … another layer of uncertainty … dismay and disbelief … be concerned ….”

Someone should tell these tall foreheads to dial it down a little because the sky is not exactly falling after the NDP election win.

In every interview I’ve heard her give before and after the election, one of Rachel Notley’s top priorities is job creation in Alberta. She does not sound like Hugo Chavez to me.

If there is going to be an oil royalty review, it will not happen tomorrow, when everyone is still struggling with low oil process. And when it does happen, it will be a fair, open and collaborative process.

If there is a climate of uncertainty in the oil business today, it has nothing to do with the NDP. It is because of low international oil prices, which hopefully, are starting to creep up a little bit.

The other uncertainty we have had is years of political instability in Alberta. There were the last years of the Klein administration. That was followed by the confusing Ed Stelmach regime, then the entertaining Alison Redford interregnum, followed by the Jim Prentice flameout.

Keep this in mind when we all sit and ridicule Premier Notley for being stuck with a caucus of greenhorns. How will she manage to form a credible government? It won’t be easy, but on the other hand, we haven’t had an A-team cabinet for over 10 years now and somehow Alberta survived. So expectations are necessarily low to start.

What she does have, which the last four Progressive Conservative premiers of Alberta did not, is the 100 per cent loyalty of her caucus. Our previous four captains had one hand on the rudder of government, while with the other they were constantly duelling for short-term electoral advantage.

It is entirely likely the new NDP government will stumble at times. But Rachel Notley has strong political roots, she has worked in government, and is an experienced legislator.

One big strength the NDP has, and don’t sneeze at it, is

14 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

that nearly half its caucus is women. Has this happened before in western democracy? And while a few may be not prime time, most of them are accomplished individuals — lawyers, businesswomen, teachers, medical workers, family leaders, community leaders and so on.

And if I can say this without sounding too sexist, women tend to bring slightly different qualities to matters of problem solving. Men seem to act first and talk later. Women tend to think first and then figure out what to do. (By my personal observation meter, men are about 50 per cent successful; women about 90 per cent.)

The new government will stumble out of the gate more than once. So long as they maintain their democratic and humanitarian instincts, people will be forgiving. In fact, the air in Alberta is already fresher and the sun brighter because there is possibility we can envision a better way of doing things than we have in the past.

The first priority is for Premier Notley to organize and train a functioning executive branch of government. Someone has to legally sign the cheques.

The next priority is to meet the legislature and prepare a provincial budget. Now is not the time for bold financial gambles, nor a time to risk your brand name by being labelled “spendthrift.” A rookie government cannot risk getting into big, drawn-out battles.

But Notley’s speech from the throne can be bold and visionary. It can be about substance, it can be a literate explanation of Alberta NDP long-term fixes for what ails us.

True leadership means taking the time to have an honest conversation with all Albertans about fundamentally changing the way we do business here. It is not sustainable for the provincial government to rely on the ups and downs of resource revenue to finance ongoing obligations such as health, education and public safety. You need stable funding and that only comes from a reliable revenue stream. They have a name for it, it’s called taxes. Resource royalties can be a small part of this mix, but most of that money should be saved.

This is the mirror we all need to look into. BiC

All Makes Collision Centre is Calgary’s best choice for collision repair and painting, auto glass replacement and fixing those minor dents and dings. Another winter has taken its toll on windshields and many are left cracked or chipped and need fixing.

Our auto glass repair service, All Makes Glass offers multiple drop-off locations, four mobile repair crews, super fast turnaround and access to a comprehensive inventory of replacement windshields. All Makes Glass technicians are well trained, experienced and focused on quality and customer satisfaction. Book an appointment on line or by phone and ask for your $25.00 discount coupon. All Makes Glass – part of the All Makes Collision Centre.

10860 46TH ST. SE • (403) 536-0518 • ALLMAKESCOLLISION.CA

WOODRIDGE

LINCOLN WOODRIDGE

LINCOLN WOODRIDGE

The Great Disconnect • Frank Atkins

By Frank Atkins

I

The Great Disconnect

am a great believer in democracy, and when the people speak in an election, we all have to accept the results. From that perspective, we should all congratulate Rachel Notley and the Alberta New Democratic Party (NDP) on their stunning victory in the Alberta election. However, in a democracy, we all have the right to disagree with the results. I have long suspected that there is a disconnect between what individuals profess to believe and the day-to-day actions of these individuals. As an example, in the 1960s it was very trendy to protest capitalism. The disconnect here was that a lot of students drove their expensive cars to the protests. A more current version of this behaviour is that people like David Suzuki use airlines to fly around the world to protest fossil fuel consumption.

Unfortunately, there is a large disconnect in the Alberta election. As the world price of oil slumped recently, there are a great number of individuals in Alberta who have lost their jobs. For reasons that are not well understood, individuals who lose their jobs look to the government for help. In the Alberta election there was a great deal of talk about change, and clearly Albertans voted for change. However, the change that Albertans voted for is going to make the unemployment situation worse.

It is possible that some people believe that the type of change that they voted for involves diversifying the Alberta economy away from oil and into

something else. However, it is hard to understand how changing a government will accomplish this. The only way that an economy can change is that if individuals who participate in the economy choose to do something else.

Governments who try to unilaterally impose change invite disaster. Just look at the abysmal costly failure of the green initiatives in Ontario.

The only way that an economy can change is that if individuals who participate in the economy choose to do something else.

If you look at the history of provincial NDP governments, it is quite obvious that whenever an NDP government has been elected, the economy performs rather badly. Just look at the Ontario economy under the Bob Rae regime, Saskatchewan before the election of Brad Wall, and British Columbia under NDP governments. From a national perspective, think about how the Canadian economy functioned under the interventionist regime of the Trudeau years. The problem is that economies simply do not function well when they are burdened by the type

16 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

of intervention that is inherent in a socialist-type government.

There are a lot of individuals who were not particularly happy with the election results. The main concern is what is going to happen to investment in the oil and gas sector. Oil and gas projects are very expensive and without a steady stream of investment, some projects will not come to fruition.

Without the needed investment the net result will be further job losses. The worry is that those with the needed capital will be reluctant to invest in a province where the government clearly took an anti-pipeline stance during the election campaign.

Clearly, there are individuals who believe that an anti-oil stance is appropriate. NDP governments are generally supportive of anti-oil philosophy, and it does not appear that Ms. Notley’s position differs from the mainstream NDP view. However, here is where we encounter the great disconnect. How can you govern Alberta, where the economic livelihood depends largely on the oil and gas sector, when you are basically taking an anti-oil stance?

Further, how can people vote for what is essentially an anti-oil government when their jobs depend on a healthy oil and gas sector? The great disconnect lives on and Albertans will have to face the economic consequences of their choices. BiC Frank Atkins is research chair of finance and capital markets at the Frontier Centre for Public Policy.

GL OBAL POWER TE

CH NO LO GI ES

Growth Through the Power of Execution.

Over the years Global Thermoelectric has successfully demonstrated excellence both internally as an employer and externally as the world leader in ultra-reliable remote power systems, including Global’s unique TEG’s (Thermoelectric Generators). In April of 2014 Global Thermoelectric and Gentherm, who are both leaders in different markets with thermoelectric products, joined forces.

Global began its relationship with Results in 2011 as part of an initiative to make the company an attractive acquisition candidate so that it could take advantage of tremendous international growth opportunities. The coaching and guidance from the Results team helped identify strategic changes and execution practices that were successfully implemented. These changes directly contributed to the recognition of Global’s standard of . In April 2015 the full transition from Global Thermoelectric to Gentherm Global Power Technologies (GPT) was accomplished.

To learn more about Alberta companies unleashing their full potential, visit resultstransforms.com

Results helps clients achieve success through visibility, alignment, accountability and engagement of all employees in executing their strategy.

farewell • Lonnie Tate

Lonnie Tate December 29, 1944 — North Battleford, Saskatchewan April 18, 2015 — Calgary, Alberta

T

hrough Business in Calgary we met Lonnie while he was the director of marketing for Ernst & Young in 1994. He was in the earliest days of planning what has now become an EY worldwide event in the Entrepreneur Of The Year awards. One of Lonnie’s roles was to head up the Prairie Regions event.

Our first meeting we were introduced to Lonnie’s firm handshake, signature smile and bold laugh. This is how we met and came to know him throughout the years. His firm handshake and word were better than any contract could ever be written. His smile made us feel welcome and appreciated and the laugh was just his demeanor saying that it was all going to work out.

In those days Business in Calgary was a fledgling magazine with about three years of history and about a 50/50 chance of survival. It was the early ’90s, the economy was very tough on a start-up and we came to the table with more of a vision and a dream than a reputation and a solid publication.

Lonnie didn’t only run the Prairie Regions Entrepreneur Of The Year awards, he truly believed in entrepreneurs and giving them a chance. This is what he did for us at Business in Calgary. I know he had to do battle with some who questioned his judgement on tying such a huge program to such a young publication, but he did and we will forever appreciate the confidence he placed in us.

Over the years we became business associates and friends.

We worked with Lonnie on the Calgary Philharmonic Orchestra when he was the chair of the organization, with the Glencoe Golf and Country Club and with EY and the Entrepreneur Of The year awards until his retirement.

Even after Lonnie’s retirement from EY we would get together for a lunch a couple times per year to catch up.

Five years ago he pitched us on the idea of writing a column from his perspective and one that would speak to boomers, planning and contemplating retirement. The column evolved and while it still had those components, he also dove into politics, health care and issues that faced Calgary, the city we believe he truly loved. After arguing about what fee we would pay him (he was adamant he wouldn’t accept payment), we decided his fee would go to Juvenile Diabetes Research Foundation.

The column then turned into a book and Lonnie published his first book “Calgary Life” Views Of A Retired Guy. Lonnie’s last column ran in our May issue. We will miss his column but more so his friendship as that big-hearted guy that gave some young entrepreneurs a chance to work with some of Calgary’s best. May he rest in peace. BiC

18 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Lonnie, beloved husband of Karen Tate (nee Greenwood) of Calgary, passed away on April 18, 2015 at the age of 70 years. Lonnie’s career began with Clarkson Gordon as an articling student.

After earning his Chartered Accountant designation, he remained with the firm and became a partner in 1977. He enjoyed many years working with clients and colleagues in Calgary. He moved to Toronto as National Director of Marketing in 1988. Shortly thereafter, the firm became known as Ernst & Young. Lonnie retired in 1999. His business card read “Retired from work, not life.” Lonnie will be fondly remembered by family and friends for sharing his passion for life. He was a talented pianist and enjoyed golfing, gourmet cooking, music, the Calgary Philharmonic Orchestra, and was also an author. He wrote monthly articles for Business in Calgary and published a book entitled, “Calgary Life.” He was also an active fundraiser for JDRF (Juvenile Diabetes Research Foundation). Lonnie is survived by his wife Karen; daughter Lynda and her husband Rob Shull of Toronto and his son Michael Tate of Calgary; grandchildren Connor and Caylie Shull of Toronto; and brothers John (Noella) Tate of Calgary and Paul Tate of Toronto.

He is also survived by numerous cousins, nieces and nephews.

Sup por tin g th

e Vis ions of Entr epreneurs

OVER

25 300 35,000+ 10.5 MIL YEARS

CONSECUTIVE

PAGES PUBLISHED

COPIES DELIVERED

ISSUES

Celebrate with us this September in our 25 YEAR KEEPSAKE EDITION of Business in Calgary Share the magazine with Calgary’s most prominent business leaders of the past 25 years.

Veterans Food Bank and EvenStart will receive a charitable donation for every ad in this issue.

SPECIAL RATES

ENHANCED DISTRIBUTION

CELEBRATE OUR PAST – BE PART OF OUR FUTURE CALL TO BE PART OF THIS KEEPSAKE EDITION

403-264-3270 WWW.BUSINESSINCALGARY.COM

PROFILE

t’s not unusual to have win-win situations. The innovation and ingenuity of Koen van der Maaten and the state-ofthe-art technology that is geothermal heating and cooling

by Thermal Creek Ltd., now makes it possible to have a win-win-win situation!

The science and the superb service that is Thermal Creek is effective and efficient heating and cooling of homes and buildings. Thermal Creek geothermal reduces the operational costs for heating and cooling. And geothermal is very environmentally friendly heating and cooling.

“Geothermal used to be a new, technical and complicated concept for many laypeople,” explains van der Maaten, the upbeat and industry respected engineer, co-founder and chief technology officer of Thermal Creek. “Eight years ago, people looked at us funny and they thought the idea was too high-tech to handle. But so much has changed. Maybe word of mouth or because people are so plugged-in and well informed today.

“The concept of geothermal has become popular and has proven itself.” He admits that although the geothermal concept may be a bit technical, it can be explained using fairly basic principles.

Geothermal uses the energy in the earth. A series of geothermal pipe loops installed in boreholes, typically bored from 200 feet to 400 feet down, circulate geothermal fluid.

A geothermal heat pump (not a fossil fuel burning furnace or a/c unit) transfers the heat from deep in the ground and efficiently distributes it as geothermal heating. To provide cooling, the geothermal system simply reverses the cycle and transfers heat from the building to the ground.

“The ground does three-quarters of the work and the electric heat pump does the rest,” van der Maaten says.

He credits the solidly documented positives, advantages and benefits of geothermal for making the technology mainstream for today’s residential homes and commercial buildings. “The upfront costs may be higher than conventional heating and cooling systems, but payback, the environment, better comfort and a safer heating system (no combustion) must be figured in.

Photos by Jager&Kokemor

I

Koen van der Maaten, co-founder and chief technology officer of Thermal Creek

Geothermal technology a mainstream for today’s residential homes and commercial buildings.

This makes geothermal very impressive,” he emphasizes with enthusiasm.

The stats are verified and undisputable. Geothermal is five times more energy efficient and reduces energy consumption by as much as a staggering 80 per cent, compared to nonrenewable and fossil fuel (natural gas, oil or propane) burning conventional home furnaces and commercial boiler systems.

Geothermal is definitely catching on! Calgary’s Thermal Creek is proving that geothermal is a win-win-win. Geothermal is a more efficient, cheaper and sustainable alternative.

www.thermalcreek.com | 403.764.2535

URBANOMICS | Urban Development Discussion

Building for a Changing Calgary Demographics, cultural mix and what buyers want

I

t’s unanimous! It’s well known here in Calgary, throughout Alberta, in the other nine provinces, in the U.S. and in many places around the world.

Calgary is a dynamic city. Calgary has character and spirit. Calgary is an extraordinary place to live, work and play. Calgary is exciting. Calgary is growing.

And part of the unique dynamic is that — often in stealth and subtle ways – Calgary is changing.

The dynamic, growing and constantly changing Calgary is a key aspect of urban planning – the development of how Calgary will look and, most importantly, where people will live.

Because when it comes to shiny office and condo buildings, LRT stations, front yards and driveways, parks, schools, +15s, transportation, roads and traffic flows — it’s all about people.

It’s about Calgarians living, working and playing in the city and constantly changing the dynamic that is Calgary.

People drive the changes and the city’s planners together with Calgary’s builders and developers make it happen.

So people aspects like population growth, demographics and cultural mix are vital components of the plan.

Calgary is one of the youngest big cities in Canada. The median age of 36.4 is lower than Toronto (38.6) or Vancouver (40.2). The new normal, in Calgary and throughout North America, is that the average age is increasing, reflecting an overall aging population.

According to the Calgary-specific 50-year (1989-2039) population growth forecasts and projections, the number of

22 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Calgary seniors (age 65+) will increase over 500 per cent. By comparison, youth (under 20) will increase by 108 per cent and adults (20-65) will spike 110 per cent.

In terms of effective planning, the exciting challenge for Calgary developers and city planners is: who are they and where and how will they prefer to live in Calgary?

“Calgary’s record net migration over the past few years is both inter-provincial and international,” says Chris Jurewicz, business and policy strategist and spokesperson for Build Calgary, the group consisting of various city business units and external stakeholders, collaborating to plan for the changing demands of Calgary growth.

“The city forecasts net migration of 14,000 people per year over the next six years. Population is expected to increase by over 50 per cent in the next 25 years. The aging of the baby boomer generation, coupled with the younger generations behind it combined with increased longevity, means Calgary is getting older.”

The cultural mix is also a factor when it comes to planning and development.

“The city does not collect data on ethnicity and relies on information from Statistics Canada,” he points out. “But for most development trends and providing city services, ethnicity is not a differentiating factor.

“The demographics and the cultural mix of Calgary will require a greater diversity of housing choices. Creating housing opportunities for seniors to continue to live in the communities

“Balance is the key.

We must work together to provide housing diversity and choices – for people who already live here or will move here.” ~ Charron Ungar Paul Boskovich, senior development manager of Genstar Development.

Charron Ungar, president of Avi Urban

they are most familiar with and tailoring city services to the growing sections of the population,” Jurewicz adds.

“Members of both groups, UDI (the not-for-profit Calgary association representing close to 200 members focused on the development of innovative, efficient and sustainable Calgary communities) and the city, work hard to plan the best solutions to assure a fantastic city,” says the focused and enthusiastic Charron Ungar, president of Avi Urban.

“Balance is the key. We must work together to provide housing diversity and choices – for people who already live here or will move here.

“Choice is too often a matter for growth in suburban areas.

Choice should also be important in city redevelopment.

We must embrace diversity and recognize what the public needs and wants – whether it’s the cultural mix or the generational mix. Diversity and choice are the fabric of good communities.”

Paul Boskovich, senior development manager of Genstar Development, agrees. “We don’t let focus groups run our business. We consider what various demos and the cultural mix of Calgary expect from us. The composition of Canada is more diverse and we have to be cognizant of who is moving to Calgary.

“We’re seeing a greater variety of people coming into every development. The population is aging and Calgary is attracting people from around the world. An essential part of Calgary’s growing population is home ownership.

We need the available land and the approvals to provide choice,” he says.

“Whether it’s demographics of aging Calgarians wanting to live in areas they are used to, single people getting financing or features that are part of the ethnic mix. I was in a show home recently, which had a separate spice kitchen.

Or the reality of multiple people living in a multi-family dwelling. Census figures cite 3.2 people per household but for some homebuyers, the average could be 4.2 and their needs could be additional utility like bathrooms, bedrooms and parking.

“There must be choice to accommodate diversity,” Boskovich urges.

In most Canadian municipalities, land use and land approvals are contentious issues. Calgary is no exception. “Land supply allows us to understand how much land is available to meet the demand for new housing,” Jurewicz admits. “It gives us the chance to plan which new communities can be built next.

There needs to be a balance. Too much land being serviced at once is very costly to the city, while not enough land means we can’t accommodate growth.”

“Policy should be an enabler. Let the development industry do what it does best: innovate!” Ungar says, emphatically.

Land use policy plays a significant role in how the city grows. A prescriptive land use quells innovation.

“When ideology overtakes reason and calculated risk, it limits our ability to grow in a responsible and innovative way.” BiC businessincalgary.com | BUSINESS IN CALGARY June 2015 • 23

FARMER’S MARKET

144 AVE NW

SYMONS VALLEY RD NW

MO

SAGE BLUFF BLVD NW

STONEY TRAIL NW

E

Experience Our Beautiful MONTANA MOUNTAIN RETREATS. ENJOY | EXPERIENCE | LIVE

CREEKFRONT

GOLF

$444,183

LAKEFRONT

$456,221

*

$1,161,618*

*

MONTANA REAL ESTATE // MOUNTAIN RETREATS // WILDERNESS CLUB

HORSE PROPERTY

$1,053,281*

s fe a tu re d W a tc h fo r u e p is o d e o f o n H G T V ’s

Sky” “ L iv in g B ig

WILDERNESS CLUB

$1,143,562

*

MOUNTAIN VIEWS

$375,570*

*Canadian prices, assume an 83% exchange rate

EUREKA MONTANA REAL ESTATE EXPERTS Ph: 406-297-0144 // info@lancasterandco.com

101 Riverside Dr. Eureka, MT, 59917

WWW.LANCASTERANDCO.COM

Paull Veroulis pveroulis@lancasterandco.com 1-760-835-6992

Gretchen Lancaster gretchen@lancasterandco.com 1-406-291-7099

PROFILE

A Big Heart for Helping Those Most Vulnerable

By David Parker

G

etting involved with RESOLVE as one of its first “Calgarians Committed to Change” cabinet members was an easy decision for Craig Hill. He has had a huge commitment and big heart for helping those most vulnerable since he moved to this city in 1988.

One of the city’s outstanding imports from Saskatchewan, Hill obtained his law degree from the University of Saskatchewan in 1984 and practiced there for a few years.

He was lured to Calgary by better career opportunities and joined the then firm of Fenerty Robertson Fraser and Hatch.

Now focusing on commercial real estate and development law, he manages a large and diverse practice as a partner with Dentons Canada LLP. His real estate practice keeps him very busy but he has always found the time to serve as a community volunteer.

For the past six years he has been an advisory board member of CORCAN – a special operating agency of the Correctional Service of Canada.

He served on the board of Habitat for Humanity Calgary for eight years – including terms as secretary, vice chair and board chair – and for three years on the Board of Directors of Habitat for Humanity Canada, in his last year as board chair.

Habitat for Humanity seeks to mobilize volunteers and community partnerships to build affordable housing and to promote home ownership as a means of breaking the cycle of poverty. During his involvement with the organization it undertook (in concert with the Calgary Community Land Trust Society) to build the 12-unit Leo and Goldie Sheftel town house complex on 16th Avenue NW and the 27-unit Sun Court in the southeast Dover district, so he is well aware of the need for affordable housing in this city.

Hill has also participated in the “homeless count“ conducted by the Calgary Homeless Foundation in which volunteers team up with police, bylaw officers and agency staffers to conduct a “point in time” count of the number of people sleeping outside and in emergency shelters, shortterm supportive housing and treatment centres. A most

Craig Hill, partner, Dentons Canada LLP

sobering eye-opener was when he talked to a man living in a cardboard box who excused himself to get some sleep as he had to be up at 6:00 a.m. to get to work.

He is familiar with many of the nine established social service agencies involved with RESOLVE. He says it was learning about the unique-in-Canada collaboration between them that first interested him and the drive by the private sector, in addition to government, to raise the capital to create more affordable housing for the city’s most vulnerable citizens.

A respected member of his profession, Hill has undertaken the task of spearheading a legal sector fundraising strategy.

He has set himself a goal of raising a million dollars from Calgary law firms. To date he has commitments already sitting at $675,000 – and these from only three generous firms that have joined the momentum for change.

Craig Hill feels all firms should participate in the campaign and, no doubt with his encouragement, they will exceed his target.

RESOLVECalgary.ca

RESOLVE is a partnership of nine leading social service agencies with one simple goal: building affordable rental housing for 3,000 homeless and vulnerable Calgarians. We’re working directly with government, business and community leaders to put roofs over heads and end homelessness in Calgary.

Learn more at RESOLVECalgary.ca

We’d like to recognize our Cabinet of business and community leaders for helping make RESOLVE a reality.

Honorary Patrons: Dick & Lois Haskayne Steve Snyder Betty Ann Smith

Alan Norris, Chair John Brussa Trevor Daroux Stephanie Felesky Randy Findlay Charlie Fischer Jim Gray

Bob Hamilton Tim Hearn Craig Hill Ken King Sam Kolias Ann McCaig Grit McCreath

Bill Sembo Michelle Thrush Mac Van Wielingen Chris Wallace Jay Westman

RESOLVE is a partnership of:

RESOL-3551_BUSINESS_IN_CALGARY_AD_7.875x10.75_Logos_MAY14.indd 1

RESOL-3551 BIC ad - May

2015-05-15 2:27 PM

Photo by Candice Ward

Culture Meets

I

Designat 818 Studio

Boutique firm pushes the landscape architecture envelope

t’s immediately obvious that 818 studio is not your average landscape architecture firm. It’s written all over the walls. Literally. Floor-to-ceiling chalkboard walls facilitate frequent energetic planning and design sessions, epitomizing the firm’s focus on collaboration. And founder Rick Gendron wouldn’t have it any other way.

Everything from the decor to the company’s name speaks to the value he and the rest of the team put on collaboration. In an industry heavy with firms named after their founders, 818 was named for Gendron’s home address where he started the business.

“To make it a collaborative studio environment, he kept the name as something everyone can buy into and be part of,” says Carlos Mier y Ponce Arzani, Gendron’s partner at 818 studio. “It’s hard to feel like you’re part of a team if your role is relegated to ‘and Associates’ like so many other firms.”

Established in 2005, the landscape architectural planning and design firm is geared toward fostering growth, collaboration and, most importantly to Gendron, a great culture.

Their working mantra is “818 is successful at providing innovative, quality design that excites” and everything in their environment works toward that ideal. Their open office design with writable walls makes it easy to bounce ideas around, and the designers frequently come together to spitball ideas, sketch and discuss concepts for a project.

The people at 818 have created the kind of place where Gendron knows his team wants to work; where job satisfaction and happiness matter quite a bit. The team actively seeks people who are engaged and positive and give them the opportunity to grow as professionals. At the same time, they recognize it is important to have fun, establish a good life-work balance, produce quality designs and truly enjoy their jobs.

1812 14a Street SW | info@818studio.ca | 403.244.8188 | www.818studio.ca “It’s vital to have the right people to contribute and participate in every aspect of our firm,” he says. “If you’re going to spend eight to 10 hours a day with a colleague, it’s crucial that they are good people. The right mix of team members cannot be understated.”

After all, enthusiasm shows in your work and clients notice it in every conversation, email and design plan. Clients can’t be expected to get excited about projects if their designers aren’t genuinely excited first.

This has served 818 studio well. Now in its 10th year, it is expanding its offices and adding employees. Business is steady, but rather than resting on their laurels, Gendron’s team is looking forward to bigger challenges, and more exciting and diverse things in the coming years.

“After 10 years we are at a crossroads. We could either say this is who we are and what we do and continue along those lines, or we can take advantage of this milestone and break out of our mould and expand, try new things and redefine what we do and how we do it,” he says.

Their design services go far beyond merely site drawings and vegetation. The firm does large commercial/retail projects, multi-family sites, planning and community design, municipal work, as well as research and conceptual studies. Leveraging its experience and success on these projects, 818 studio is looking at larger urban design projects and to incorporate ideas it has picked up through previous work in other areas of Canada and the U.S., Mexico and China.

To accommodate the larger staff and projects, 818 studio is surging ahead with new software to enhance how they present and explain their design plans. Use of 3D renderings has become more common and an increasingly important part of landscape architecture, allowing clients to visualize what the project will look like before the significant construction dollars are expended.

It’s also a great tool in marketing. Even before construction begins, 818’s drawings can be used to create interest and excitement in the project. Afterward, the implemented

landscape design is the first thing people see as they approach the development, and they judge the product first by what they experience between the curb and the door.

“A well-designed site can sell a project,” says Jamie Johnson, senior landscape designer.

Many of their projects are challenged by municipal bylaws and land use requirements, and Gendron’s team is well versed in navigating these challenges and the municipal approval processes. It’s a service they realize their clients need and they undertake as part of their successful site design process.

Once drawings are approved, 818 studio provides a detailed technical package of working drawings and associated construction specifications from which the contractor can build the design. Then the team monitors the construction to ensure those designs are followed and the process stays on track. Acting as agents for clients, 818 designers put together drawings, solicit competitive bids from contractors and manage the project to ensure the client’s vision remains intact throughout the process. They focus on removing all of the stress and headaches from the clients as they shepherd the project through from start to finish.

While the site grading, soil science, approvals and horticulture components add a significant technical aspect to landscape architecture, it is the art that keeps the 818 studio designers excited for work every day.

“We straddle the boundaries between art and science,” Gendron says. “We have to be well-versed in the technical side, but it has to look good, to speak to you, to evoke a feeling. People will expect the site to ‘work’; we have to captivate them with the design.”

And their living, breathing dynamic landscapes do just that. Gendron and his team design for the future, knowing that it will take years for their designs to fill in and flourish to maturity. And like their designs, 818 studio will only continue to get better with time.

off the Top • News

Winning with Entrepreneurship What does Haskayne School of Business’ dynamic Entrepreneurship and Innovation 317 course and a popular and glitzy TV show have in common? Inspiration. Competition.

Business savvy. The art of the pitch. And some fun.

According to Derek Hassay, RBC teaching professor of entrepreneurial thinking, “It’s all about being relevant and making business real. About getting students to understand what business is all about. The vital skill of seizing the opportunity in the marketplace and getting them excited about what business can be.

“It’s not about turning them into entrepreneurs. It’s about being entrepreneurial and learning to think like an entrepreneur.”

The winning Securelet team. L to R: Angelo Toselli, (PwC Canada), Jeff Boyd (RBC), Jim Dewald (Dean, Haskayne School of Business), Kira Lagadin, Reagan Nagel, Houston Peschl (Haskayne School of Business), Cassidee Smith, Renae McArthur, Kelly Weber, Kris Hans (Market Grade), Derek Hassay (Haskayne School of Business).

NEW WEST TRUCK CENTRES IS A

5925 79th Ave SE Calgary, AB T2C 5K3 403-569-4800

FULL SERVICE HEAVY TRUCK DEALERSHIP SPECIALIZING IN FREIGHTLINER, SPORTCHASSIS, AUTOCAR AND MITSUBISHI FUSO.

1001 41 Street North Lethbridge, AB, T1H 6J3 403-327-7611

WE ARE CONVENIENTLY LOCATED THROUGHOUT SOUTHERN ALBERTA, VISIT US AT ONE OF OUR LOCATIONS!

807 23 Street SW Medicine Hat, AB T1A 8T7 403-526-8332

“Our Customer is the Centre of Our Universe” www.NewWestTruck.com 30 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

off the Top • News

General Dentistry

DOWNTOWN DENTIST • Cosmetically related dental services • Emphasis on Prevention • General Dentistry • Tooth Whitening • New Patients & Emergencies Welcome • Direct Billing of Insurance Plans This spring, Haskayne’s RBC Fast Pitch competition asked second-year Haskayne business students to create and build an original entrepreneurial concept and pitch the business plan idea to a panel of 11 Calgary business judges for $100,000 in real cash and valuable in-kind prizes – in exciting (and fun) Dragons’ Den style.

Out of a total of 500 students and initially more than 100 teams, the winning, first-place team, Securelet, was an entrepreneurial idea about on-campus security. Their product combined fashion with function in a bracelet for women to wear on campus, with a button to call for help in case of an emergency.

“Entrepreneurship was new to all of us and we certainly had no experience in pitching a product,” says Securelet team member Kira Lagadin. “The course was an important resource but we also picked up some good pointers from watching Dragons’ Den. We learned that emotional appeal is as important as facts and figures. We learned that we should go for the hearts and minds and then the wallet, and when it’s done right, entrepreneurship should solve an existing problem.”

Following the unique Haskayne competition, Lagadin confirmed that the five-member team is in meetings and discussions, proceeding to the next step to turn their entrepreneurial idea into a startup.

“The really big win is for Haskayne students,” Hassay says with enthusiasm. “We want entrepreneurial thinking to be part of their DNA, wherever they go.” BiC

Call today for your consultation and your start to a more beautiful smile.

An amazingly convenient location you can walk to from your urban home or office saving you valuable time and money.

If you choose to drive, dedicated parking is available!

Conveniently located under the Calgary Tower, 430 Tower Centre, 131-9 Avenue SW

403-265-3146 www.drgalan.com businessincalgary.com | BUSINESS IN CALGARY June 2015 • 31

Off the Top • News

A Heritage Partnership It’s extremely rare and extraordinarily special!

When two Calgary icons get together and partner it’s Calgary tradition, a boost of Calgary’s profile and good Calgary business.

That’s what happened recently when the Calgary-based and legendary Lammle’s Western Wear and Tack, Canada’s largest western retailer, solidified a dynamic, multi-year merchandise partnership with the world renowned national treasure that is the Calgary Stampede.

Some say it’s “heritage partnering with heritage.”

Barry Lammle, the gregarious president of Lammle’s Western Wear and Tack, is thrilled, gung-ho and a bit amused. “It’s such a natural!” he roars.

“We have always had a great relationship and have been working closely with the Stampede for more than 20 years. I always felt that it would be good for both of us to be partners. We never really had any serious discussions and just kibitzed about it for years.

“And this year, it finally happened. We put the deal together in under three months,” explains the successful retailer and Calgary booster.

Under the new arrangement, Lammle’s becomes the official year-round supplier of Calgary Stampede (CS) western wear and western giftware, takes on the responsibility for sub-licensing the CS trademark to manufacturers and for wholesaling CS-branded items to other retailers.

Lammle’s will also run all Stampede merchandise operations, including the year-round CS Store in the BMO Centre as well as the grandstand and midway retail locations during Stampede.

Commonwealth Centre situated in Northeast Calgary is the Current Stampede CEO Warren Connell and former Stampede event or celebration.

We offer dividable CEO Vern Kimball sign Lammle’s agreement on March 13 with rooms that can Barry and Jeff Lammle. From left to right: Warren Connell, Vern Kimball, Barry Lammle and Jeff Lammle.

SUCCESSFUL EVENTS BEGIN HERE

Commonwealth Centre situated in Northeast Calgary is the perfect venue for your next corporate event or celebration. We offer dividable rooms that can accommodate 50 to 1200 guests. @cw_centre |

/Commonwealthcentre

Phone: 403.338.2100 or info@commonwealthcentre.com Unit 1177, 3961 52 Avenue NE, Calgary, Alberta T3J 0J7 • www.commonwealthcentre.com 32 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

off the Top • News

When it Photo courtesy of the Calgary Stampede

comes to the

Barry Lammle proudly emphasizes that Lammle’s Western Wear and Tack now becomes a major, champion-level Stampede sponsor.

As both partners have grown exponentially over the years — Lammle’s now operates 24 retail stores throughout Alberta, British Columbia and Saskatchewan and has been a retail industry leader and a tremendously popular western lifestyle brand for more than 30 years, and the Stampede is in its 103rd year and attracts more than one million visitors a year from throughout Alberta, Canada and the world — the new business agreement may well be the ultimate win-win partnership.

Managing an event the size and complexity of today’s Stampede, including planning, scheduling, on-site activities and facilities, revenues and staff and volunteers, is itself a year-round, demanding big business.

The timing is right for Stampede to partner with Lammle’s tremendous retail savvy and expertise for the challenging business aspects of licensing and merchandising.

“We’re very excited to have taken our relationship with Lammle’s to the next level,” says Warren Connell, chief executive officer, Calgary Stampede. “With

health

of your employees...

it’s important

to have

a plan.

We deliver the group benefits that employees prefer and the

value your business needs.

Call us today for a confidential, no-obligation quote or talk to your plan advisor.

Calgary 403-294-4004

www.ab.bluecross.ca/group 83282 2015/04

Prescription Drugs • Dental • Life and Disability • Travel Coverage Vision • Critical Illness • Health and Wellness Spending Accounts Extended Health • Employee and Family Assistance Program ABC 2015 Business in Calgary 2/3 page / full colour - Trim Size: 4.5” x 9.75” businessincalgary.com | BUSINESS IN CALGARY RUN June 2015

June 2015 • 33

Off the Top • News

Lammle agrees that, in addition to the Calgary-proud thrill aspects of tradition and heritage, the partnership is a significant and positive business decision both for his company and The Stampede. their leadership in the western retail industry, the CS brand is in great hands.

“This is a mutually beneficial partnership,” he admits. “It allows the Stampede to focus on our vision of creating a successful, world-class gathering place, not only during the 10 days of Stampede but as a yearround place for the Calgary community.”

Lammle agrees that, in addition to the Calgary-proud thrill aspects of tradition and heritage, the partnership is a significant and positive business decision both for his company and the Stampede.

“We are year-round in the western wear retail business,” he says with enthusiasm. “We know the business and the product, we have an extensive customer base and we know the market.

“Look! Retailing is a tricky and specialized business. It’s not for the faint of heart.” BiC

Thank you for your support!

Top photo: Warren Connell, Jeff Lammle Bottom photo: Barry Lammle, Vern Kimball

Your donations go a long way in supporting health care for our neighbours, families, and friends. Health care impacts us all, and together, we are building a healthier future for generations to come.

calgaryhealthtrust.ca 34 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

off the Top • News

Edelweiss Returns to Calgary with New Non-Stop Service

Aero Icarus Edelweiss Air Airbus A330-223

The Calgary Airport Authority is pleased to welcome Edelweiss Air, with the introduction of new non-stop seasonal service from Calgary International Airport (YYC) to Zurich in 2016. The new service will operate twice weekly from June to September with an Airbus 330 and will add

nearly 600 seats a week into the Calgary market, which will bring in thousands of European visitors to Alberta, one of Canada’s most pristine tourism destinations. The new service comes as a result of close cooperation with YYC’s tourism partners such as the Government of Alberta, Travel

Build your CORPORATE

STRENGTH

ADRENALINE CLASSES are the perfect 45 minute workout to fit into your busy schedule with convenient times throughout the work week. Plus, get great rates with Corporate Memberships.

Contact us today to find out if you already qualify or how to get your company involved. 403.355.1270 or jwhite@talismancentre.com.

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 35

off the Top • News

Alberta, Tourism Calgary and Banff and Lake Louise Tourism, and aligns YYC’s strategic plan to grow passenger services, with their partners’ strategies to diversifying Alberta’s economy by growing tourism in the province.

“We’re thrilled to welcome Edelweiss Air back to Calgary with their new non-stop service to Zurich Airport, Switzerland’s largest hub,” says Stephan Poirier, senior vice-president and chief commercial officer for the Calgary Airport Authority. “We are committed to growing tourism in Alberta and this new link will bring millions of tourism dollars to our province. Today’s announcement is a reflection of our commitment to growing YYC as an airline hub, strengthening our position as an economic leader and adding to the already impressive list of contributions YYC has made to the economy.”

Edelweiss Air is a Swiss leisure carrier; its sister operator is Swiss International Air Lines (SWISS), the principal hub airline at Zurich Airport. Edelweiss formerly operated out of Calgary until 2012 and this is currently its second Canadian destination.

In addition to being Switzerland’s leading leisure airline, Edelweiss offers customers a number of different offerings such as fully flat-bed business-class seating, along with premium entertainment options in its economy max and economy class.

The announcement coincides with its 20-year anniversary as it celebrates with major expansion plans. BiC

36 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

The twice-weekly summer schedule for Edelweiss will be as follows: Thursdays • Arrival from Zurich to YYC at 3 p.m.

• Departures from YYC to Zurich at 4:40 p.m. with an Airbus 330-200 (275 seats)

Sundays • Arrival from Zurich to YYC at 4 p.m.

• Departures at 5:50 p.m. with an Airbus 330-300 (315 seats)

Someone's Future is in your Closet

PRESENT

T H U R S D AY, J U N E 1 8 5 – 11:30PM In support of

celebrity guests | live entertainment | pop up shops drinks & delicious tapas | amazing auction items | pamper stations

Fabulous runway show featuring top designers and Calgary’s hottest stylists:

Donate gently used work attire, shoes and accessories to be entered to win a DESIGNER HANDBAG & a pair of LOUBTOUTINS! To purchase tickets and for more event information, visit www.fashionforwardyyc.com

The River, street front view, along the Elbow River 38 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

flight of the condo • Real Estate

CONTINUING EDUCATION

Build Your Career

100+ Programs in Business, Oil & Gas and Technology

of the Condo Still a boom?

BY MELANIE DARBYSHIRE

CAPPA, Oil & Gas Office Administration, Petroleum Joint Venture, Petroleum Land Administration, Petroleum Land Business, Project Management, Supply Chain Management, Conflict Resolution, Contract Management... *Ask about company training.

T

Felicia Mutheardy, acting principal for market analysis (Calgary) at Canada Mortgage and Housing Corporation

ake a drive through any quadrant in Calgary and you will eventually come across a condominium development. It’s a familiar scene: massive hole in ground; crane soaring overhead; wood and concrete frames; blocked traffic.

The “condo boom” is difficult to ignore: over the past five years development has increased, culminating in 2014 when condo starts rose to a total of 8,431, more than in any of the previous 10 years.

Rapid urbanization, positive employment growth and a growing population created a need for housing. A rental vacancy rate of roughly 1.4 per cent coupled with an average rental rate of $1,219/month made renting more onerous. Add to that tantalizingly low interest rates and for many, purchasing a condo made the most sense.

Offering low-maintenance lifestyles, convenient amenities and easy access to work and play, condos are also relatively cheap. Felicia Mutheardy, acting principal for market analysis (Calgary) at Canada Mortgage and Housing Corporation (CMHC), says this is a big draw: “Since condominium units are typically priced lower than single-detached units, more buyers have turned to the condominium market, particularly first-time buyers.”

Jeff, Leadership Development

Why MRU Continuing Education?

• Learn tomorrow’s skills today • Connect with industry professionals • Small class sizes, big ideas • Flexible schedules - fast track, online, classroom • Workplace learning

mtroyal.ca/conted 403.440.6875 businessincalgary.com | BUSINESS IN CALGARY June 2015 • 39

flight of the condo • Real Estate

Carissa de la Vega The Savoy by Truman Homes.

For Carissa de la Vega, location was key. The single professional recently purchased a two-bedroom unit in the Savoy by Truman Homes, located in Kensington.

t

with preventous Travel Safely travel clinic

ravel safely for pleasure or business with our unique Calgary travel clinic service and minimize the health risks of international travel for you and your loved ones with the help of our Preventous team.

• Pre-travel • Pre-travel consultation • Receipt of personalized travel • Receipt report report with review of destination and and recommended precautions • Vaccines • Vaccines & Prescriptions • Designated • Designated yellow fever immunization centre immunization

CALL US TODAY AT 403.229.0129 OR VISIT preventous.com TO SIGN UP ONLINE FOR YOUR FREE CONSULTATION

40 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

flight of the condo • Real Estate

For Carissa de la Vega, location was key. The single professional recently purchased a two-bedroom unit in the Savoy by Truman Homes, located in Kensington. In addition to a central location, she liked the quality and esthetic of the finishings, underground parking and in-suite storage.

She also wanted a warranty. The New Home Buyer Protection Act, in force February 1, 2014, applies to all new condominiums. It requires builders to provide warranty coverage, ranging from one year for materials and labour to 10 years for structural defects.

Though usually associated with inner-city living, suburban condos are common. In 2014, almost 70 per cent of starts were outside Calgary’s core.

Inner-city condos remain in high demand. Mutheardy notes that the proportion of these starts relative to the total increased in 2014 by 9.8 per cent to 30.3 per cent: “This suggests that while condominium production outside of the core area has increased in absolute terms between 2013 and 2014, there remains strong demand for condominium units within the core area.”

Condos are key to the redevelopment of Calgary’s East Village into a densified urban village. In addition to the National Music Centre and the new Central Library, a total of 3,900 units are planned. Averaging $480,000 and 700 square feet, approximately 800 units have sold to date.

While affordability often motivates a condo purchase, sometimes it doesn’t. Enter the luxury condo market. In neighbourhoods such as Mission and Eau Claire, condos targeting an exclusive few are being developed. Featuring luxuries such as private garages and elevators, concierge services and entire-floor suites, they have enjoyed lucrative success.

The River, along the Elbow River, is one such development in Mission. With just 38 units priced from $820,000 to $8,990,000, all but seven have sold to date.

Typical buyers are professionals, some retired, starting in the mid-40s.

Not surprisingly, Calgary’s condo market has not been immune to the economic downturn. With the unemployment rate at 5.5 per cent, huge household debt loads and oil forecasts ranging between $40-70/barrel for the remainder of 2015, condo starts are down. CMHC reports that 1,706 condominiums broke ground in the first quarter, 26 per cent less year-over-year. Further decreases are expected into 2016.

“Moving forward, the elevated under-construction count, coupled with the expectation of moderating net migration and employment growth, will contribute to a reduction in condominium starts for both 2015 and 2016.

In addition, increasing economic uncertainty introduced by the currently low price of oil poses a further downside risk to our multi-family forecast,” explains Mutheardy.

On the resale side, listings are up while sales are down, creating buyer’s market conditions. The first quarter saw 2,009 listings, up 15.4 per cent from the same time last year. Sales were down 37.4 per cent to 673. The benchmark

Get the career you want (with the degree you have) Demand for Chartered Professional Accountants is growing in every industry. Build on the degree you already have, no matter the discipline, and transition into the career you want with the University of Lethbridge CPA Bridging program.

Campuses in Lethbridge and Calgary

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 41

Flight of the Condo • Real Estate

PROVEN TRACK RECORD FORWARD THINKING COR Certified.

Permanent Placement Claims Management.

price for a condo was $296,000, a 4.21 per cent increase year-over-year, but a 1.46 per cent decrease from the previous quarter.

It’s clear the boom has softened, but just how soft will it get?

The answer may lie with the under-construction count. Though starts are down, construction has not let up – in the first quarter of 2015 there were 9,653 units under construction, 33 per cent more than during the same time last year.

Elevated construction numbers could result in an oversupply of condos, according to Mutheardy: “Without knowing the number of pre-sales, CMHC does expect for there to be some upward pressure on inventory levels once these units reach completion.”

Pre-sales should, in theory, enable developments to weather the economic storm. Generally, condominiums are not financed without selling at least 70 to 80 per cent of the units prior to construction. However, Ann-Marie Lurie, chief economist at the Calgary Real Estate Board, points out that “pre-sale” does not always equal “closed deal.”

“While many of the new products are pre-sold, if they cannot be absorbed they end up on the resale market which can push up supply levels relative to the demand causing

Photo courtesy of Calgary Municipal Land Corporation.

Management of Administrative Costs for Training and Recruiting.

Experienced and Qualified Workers at Competitive rates.

Proven Track Record - 12 Years in Business, 75 Million in Sales.

Responsive, Reliable, Credible.

LET’S CONNECT! 403-201-9520 MATRIXLABOURLEASING.COM

INVESTING IN TECHNOLOGY IS ONE OF OUR CORE PRINCIPLES

IN 2014 MATRIX LAUNCHED THE FIRST FULLY INTEGRATED ONLINE HR COMMUNITY FOR BLUE COLLAR WORKERS Evolution by Embassy BOSA

MATRIXCONNECT.CA

42 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Photo courtesy of Calgary Municipal Land Corporation.

flight of the condo • Real Estate

HASKAYNE

Executive

MBA

‘‘ First by FRAM+Slokker

Ann-Marie Lurie, chief economist at the Calgary Real Estate Board

further downward pressure on prices,” Lurie explains. The percentage of condos absorbed at completion dropped to 93.8 per cent in the first quarter of 2015, down from 98.8 per cent in the previous quarter.

Energy prices are predicted to remain low throughout 2015. “In this scenario we can expect to see continued weakness in housing demand relative to supply levels, which would place downward pressure on prices,” explains Lurie. But don’t expect a free fall.

“While prices would contract in this scenario, it is unlikely they will fall by double digits in 2015 as overall economic conditions are not expected to be as weak as they were during the 2008-09 period,” Lurie says.

Though prices may drop for some time, Calgary’s condo market will survive this downturn. If you’re in the market though, you may just get yourself a deal. BiC

I pursued an Executive MBA to step up to my potential and enhance my corporate stewardship.

In addition to increasing my business knowledge, I benefited from learning from a diverse group of professionals with different skills, leadership-styles and viewpoints. The Alberta/ Haskayne Executive MBA cultivates strong relationships and helped me build a professional network that has extended beyond the classroom.”

Meike Wielebski, EMBA‘09 Chief Financial Officer Alberta Tubular Products Ltd.

Where Calgary connects.

haskayne-emba.ca

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 43

Distinguished Business Leader Award honours Ron Mannix

BY DAVID PARKER PORTRAIT PHOTOS BY BOOKSTRUCKER PHOTOGRAPHY

A

23-year tradition in Calgary, the Distinguished Business Leader Award honours outstanding contributors who have created and maintained the robust business environment and community focus of this great city. A joint initiative of the University of Calgary’s Haskayne School of Business and the Calgary Chamber, the award recognizes exceptional demonstrations of vision and leadership, sound business sense and a dedicated commitment to the community.

The 2015 recipient of the Distinguished Business Leader Award is the reserved Ron Mannix, founder and director of Coril Holdings. On learning that he was to be honoured with the award, his first response was to quote 17th century English poet John Donne, “No man is an island entire of itself; every man is a piece of the continent, a part of the main.”

The respected Calgarian and one of Canada’s best known business icons was quick to give thanks to a lot of exceptional people who have contributed to his success; his family and the bright, hard-working and creative teams who have made up his core business groups.

A very private man, Mannix was somewhat reluctant to accept the award, but felt it would be an opportunity to give recognition to family members, mentors, superb directors and advisers, and his management teams who have provided real vision and understanding within a variety of industries.

44 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

ron Mannix: Distinguished business [title] leader • [section] • Cover

Ron Mannix, founder and director of Coril Holdings.

The bronze sculptures to the left are authentic replicas of early construction equipment that was used by the founder, Mr. Fredrick S. Mannix, at the beginning of the 20th century. These limited edition pieces, created by Rich Roenisch, were commissioned in 1988 to commemorate the 90th anniversary of the Mannix Family businesses.

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 45

ron Mannix: Distinguished business [title] leader • [section] • Cover

He also realizes that in today’s world there is no real privacy but everyone is part and parcel of the big picture so we should, in all of our activities, endeavour to be good examples for others to follow.

Mannix also believes that it is appropriate that the University of Calgary and Calgary Chamber of Commerce should recognize and honour leadership as an encouragement for others to demonstrate ethical leadership not only in the corporate world but also within the community.

Mannix is the founder and director of Coril Holdings but his involvement in business and support of the arts and philanthropic initiatives goes well beyond a single company title. While he traces his personal commitments back to family influences, his business savvy may have started with his grandfather, Frederick Stephen Mannix, who as a teenager trekked from his home in Manitoba to Alberta in 1898. He formed a construction company that grew from laying branch lines for the Canadian Pacific Railway to being responsible for much of the infrastructure of Western Canada. Its construction projects – besides being a major factor in the building of the Trans-Canada Highway – have included the St. Lawrence Seaway and the subways in both Toronto and Montreal.

Frederick Stephen Mannix’s son, Frederick Charles, diversified the construction company into several other divisions. He created the Loram Group of Companies, continuing to build many parts of Canada’s infrastructure, that soon had successful operations in coal, pipelines, oil and gas exploration and production, and construction as well as a railroad division.

Under Ron Mannix’s leadership, a key element in the diversification of the family business was the expansion of Manalta Coal with seven active mining operations in Alberta, British Columbia and Saskatchewan that became the country’s largest coal producing company.

However, by the mid-1980s, Ron felt that the construction industry was getting harder to compete in and was too capital intensive so he held back on that business and in 1985 wound it down selling off all of the equipment – right down to the picks and shovels.

The third generation of the family business – Ron and brother Fred – also divested the company of most of its energy assets in 1997 selling off Manalta Coal, Pembina Pipeline and Pembina Resources to the public markets via an income trust, a royalty trust and an asset sale respectively.

In 1998, Ron Mannix established Coril Holdings to continue the railroad activities and pursue real estate and other investments.

Its principal focus today is in five areas: railroad maintenance and services; industrial oil and gas services; real estate development, ownership, management and advisory services; global investments; and personal health and wellness activities.

46 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

The Doll Block along Stephen Avenue.

Keynote Urban Village in Victoria Park.

Mannix is certainly keen to talk about railroads. “Transportation is a great business to be in and rail is right at the top,” he says. “Through the hard work and expertise of our corporate office staff located in Hamel, Minnesota, we have become one of the leading suppliers of track, maintenance machinery and services in North America and to the global market.”

Coril Holdings’ railway maintenance subsidiary, Loram Maintenance of Way, has certainly made a name for itself worldwide. It is involved in services such as ditching, rail grinding and shoulder ballast cleaning for clients throughout the U.S., Canada and beyond to rail companies like the metros in Beijing and Delhi, Turkish State Railways, Network Rail U.K., Australian Rail Track Corp. and Saudi Archirodon.

But Coril is also making big strides in the real estate sector through its independent subsidiaries – Triovest Realty Advisors and Balboa Investments.

Balboa earned a lot of respect in this community when it managed the design, construction and development of the Hyatt Regency Calgary. Its purchase and redevelopment of the adjacent historic Imperial Bank Building which houses Catch Restaurant and the Doll Block along Stephen Avenue would go on to be transformative for the entire block.

Elsewhere in downtown Calgary and the adjacent beltline district, Balboa has purchased and restored other important heritage buildings including several on Stephen Avenue.

Collectively this demonstrates just how much Mannix cares about this city’s history and his passion for saving and making good use of heritage buildings. He says, “Far too many have been lost already when they could have been saved with a little thought. I still get frustrated thinking about the Crown Building that was demolished to make way for the new north block of the convention centre that the owner was prepared to move.”

Another Coril project and one of Calgary’s newest developments is the Keynote Urban Village, a development spanning an entire city block that is a prime mixed-use development made up of office, residential and retail that has changed the face of Victoria Park.

YOU’VE OUTGROWN YOUR TAX STRATEGY.

Where do you go from here?

As your business continues to evolve, so should your tax structure. Whether you’re responding to ever-changing regulations, expanding across provincial borders, or ensuring the greatest net profit after a strong year, you need an up-to-date tax strategy that supports the specific needs of your business. Led by Randy Bella, our local team of tax specialists deliver tailored solutions to ensure you minimize your tax exposure and maximize your returns, so your business can continue to grow.

Contact Randy Bella, Regional Tax Leader, at 403.536.5536 or randy.bella@mnp.ca

Ron Mannix: Distinguished Business [title] Leader • [section] • Cover

Music, environment, the development of the Alberta Family Wellness initiative covering children and health and wellness are all catered for under the Norlien Foundation which Mannix founded and endowed in 1998 that initiates strategic projects to enhance the life of all Canadians.

The unique complex is managed by Triovest, a company formed through a unification of Toronto-based Redcliff Realty and Tonko Realty Advisors of Calgary. A fully-integrated commercial real estate investment and management company, it offers a comprehensive suite of services to pension funds and other investors. Today it manages a portfolio of more than $7 billion in value across the country including many well-known office buildings in Calgary.

One of these is Customs House – the sandstone block on 11th Avenue SE that Mannix has been involved with and it’s the building in which the National Music Centre is operating with their Music Museum collection and many different programming activities.

Mannix says his mother initiated his interest in music; she was an accomplished organist and piano player and he remembers many fun times of playing guitar in a University of Alberta band.

48 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Photo courtesy of Allied Works Architecture

Ron Mannix, founder and director of Coril Holdings.

With a need to grow and a broader vision to establish a national catalyst for discovery, innovation and renewal through music, the original Cantos Music Foundation has evolved into the exciting new National Music Centre (NMC) that is scheduled to open next year.

Cantos and NMC can both trace their history back to the installation of the Carthy organ in the Jack Singer Concert Hall in 1987, a gift that became the genesis of the International Organ Festival.

Covering over 160,000 square feet and the remake of the legendary King Eddy Hotel, the new NMC building includes a collection of more than 2,000 rare instruments and artifacts, exhibition space telling the stories of music in Canada, three recording studios and a 300-seat performance space. The National Music Centre is destined to inspire a new generation of music lovers across the country.

Music, environment, the development of the Alberta Family Wellness initiative covering children and health and wellness are all catered for under the Norlien Foundation which Mannix founded and endowed in 1998 that initiates strategic projects to enhance the life of all Canadians.

National Music Centre, scheduled to open next year.

Ron Mannix: Distinguished Business [title] Leader • [section] • Cover

Mannix views most cities as vast expanses of parking lots, pavement and concrete and wishes that we could be more responsible for our environment. “We are sterilizing the earth with our roads and buildings and I’m going to do something about it,” he says, announcing that much of his philanthropy going forward will address air, water and food concerns, with a focus on promoting the use of green roofs.

“Europe is way ahead of us in terms of policies that support green roofs that can potentially address numerous issues.”

As well as his interest in the health of our planet he is keen to promote personal health through Coril Holdings’ fully-integrated medical, fitness and rehabilitation and wellness service provided by an integrated team at INLIV: Full Circle Health. The first of its kind in Calgary and arising from a coming together of Foothills Health Consultants and Innovative Health Group, INLIV is at the forefront in providing executive medicals and helping businesses keep their workforce healthy and productive.

Mannix is just as passionate about healthy minds and recently purchased The Crossing in 145 picturesque acres along the Ghost River. It is a unique centre for corporate and personal retreats, on-site meetings, special events and engaging programs; a relaxed atmosphere to quiet one’s mind while immersed in nature.

All of this responsibility and involvement in so many different businesses and causes would seem too much for many, but Mannix says he is a lifetime learner who loves to build and organize – as well as finding the energy and time commitment for hunting and golf.

He is first to applaud others for his success but much of it can be put down to his vast experience in business that has blessed him with so many good friends and inspirational colleagues in industry.

Mannix believes in lifetime learning and has been developing as a leader for a long time. President of Manalta Coal at the age of 26, director of the Bank of Montreal for 22 years, which he says gave him the opportunity to work with many generations of chairs, and active member of the Canadian Council of Chief Executives and its Entrepreneurs’ Circle now for over 30 years. He has served on numerous other corporate and not-for-profit boards.

According to both the Chamber and Haskayne, Mannix is a man well deserving of the 2015 Distinguished Business Leader Award.

“The Distinguished Business Leader Award considers the candidate’s demonstration of ethical leadership at four levels: individual, corporate, industry and community,” says Jim Dewald, dean of Haskayne School of Business.

“Mr. Mannix exemplifies the qualities sought at each level.

Known as a superb corporate business leader, Ron Mannix has also led a myriad of charitable initiatives.”

Adam Legge, president and CEO of the Calgary Chamber of Commerce, adds, “Ron Mannix is an exceptional leader

in the Calgary community and has truly embodied the ethical leadership that the Distinguished Business Leader was created to celebrate. Mr. Mannix is always very quick to recognize and commend others, and I believe this is a further example of his ethical leadership.”

Legge adds, “There is an incredibly long-standing relationship between the Mannix family and the Calgary Chamber of Commerce. The Chamber is celebrating 124 years of supporting business, and the Mannix family has been active in business throughout Alberta for 116 years. Over the course of that time both have been intertwined on a great number of important community and business building projects.”

While no man is an island, it is evident that Ron Mannix has personally been a major contributor to both business and community life in Calgary and across Canada. BiC

Past Distinguished Business Leader Award recipients • Mac Van Wielingen (2014) Chairman and Co-Founder ARC Financial and ARC Resources • Alan Norris (2013) President and CEO of Brookfield Residential Properties • Susan Riddell Rose (2012) President & CEO, Perpetual Energy Inc. • Rick George (2011) President & CEO, Suncor Energy Inc. • Hal Kvisle (2010) President & CEO, TransCanada Corporation • Patrick Daniel (2009) President & CEO, Enbridge Inc. • George Brookman (2008) CEO & Owner, West Canadian • Mike Tims (2007) Chairman, Peters & Co. • Harley Hotchkiss (2006) Chairman, NHL Board of Governors • Linda Hohol (2005) President, TSX Venture Exchange • Charlie Fischer (2004) President & CEO, Nexen Inc. • Clive Beddoe (2003) Chairman, President & CEO, WestJet Airlines Ltd. • John Forzani (2002) Founder, Chairman & CEO, The Forzani Group Ltd. • David O’Brien (2001) Chairman, President & CEO, Canadian Pacific Ltd. • Brian MacNeill (2000) Chairman, Petro-Canada • James Gray (1999) Chairman, Canadian Hunter Exploration Ltd. • J.R. (Bud) McCaig (deceased) (1998) Chairman, Trimac Corporation ichard Haskayne OC, AOE, FCA (1997) Chairman of the Board, • R Nova Corporation • Robert Brawn (1996) President & CEO, Danoil Energy Ltd. • Alfred Balm (1995) Chairman of the Board, Emergo Canada Ltd. • David Mitchell, OC (1994) President & CEO, Alberta Energy Company Ltd. • John Currie (1993) President, Alberta Arts Stabilization Fund `

Source : Haskayne School of Business

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 49

business aviation is here to stay • Business Aviation

Business Aviation Is

Here to Stay

BY DEBRA WARD

W

hen the energy sector or the economy contracts, people might assume that one of the first budget items to be cut is business aviation. That is not the case, and for good reason.

Business aircraft are a critical asset for Alberta executives and companies, allowing them to travel in in a highly secure environment to locations not served by scheduled carriers, and to avoid the costly downtime caused by flight hassles, delays and cancellations. Over 400 of Canada’s 1,900 business aircraft are based in the province.

Business aviation in Canada (and internationally) is rebounding from the 2009 recession, with growth in new aircraft sales and increasing numbers of domestic, crossborder and international flights.

The Canadian Business Aviation Association (CBAA) uses a case study to demonstrate why business aviation is a valuable and sustainable corporate asset. The study shows that a typical business trip through four provinces (Alberta, Saskatchewan, Manitoba and Ontario) to serve customers in multiple communities would take three days. Assuming the best-case scenario, with no delays or cancellations, this trip would take 32 hours longer (including an additional night away) than the same itinerary using business aviation flights. If the company makes multiple trips per year, and if more than one traveller is involved, then the total savings over the course of the year increase dramatically.

“Most people are aware that business aviation can reduce costs for businesses, increase productivity of managers, technicians, trainers, etc. and dramatically increase customer service and customer contact; but in reality, business aviation contributes much more than that,” says CBAA president and CEO, Rudy Toering.

“For example, business aviation offers an unmatched level of privacy. Not only are people able to travel more efficiently, they can use their in-flight time to conduct

confidential meetings and stay in touch at all times via WiFi. It’s like taking your office with you wherever you go.

Even more important is the positive impact on family life.

Being able to do follow up work and ‘clear your desk’ during your flight frees up your time on the ground for family, which is a precious commodity in today’s business world.”

Smart companies use their business aircraft to take their sales and marketing to the next level, and close the deal.

There is substantial proof that business aviation is not just an expense; it actually improves a company’s bottom line.

According to NEXA Capital, business aviation drives overall enterprise value in ways that ripple through the corporation to owners, employees, shareholders and the overall economy. Business aircraft users in small, medium and large companies outperformed non-users in several important financial measures including average annual revenue growth and a greater ability to tap more new business opportunities.

While business aviation is best known as an enabler of economic growth for companies and communities, its own substantial economic footprint is not always recognized. In Alberta, business aviation generates $750 million annually in direct economic output, supports over 2,500 full time jobs, directly contributes $320 million in GDP and $169 million to federal, provincial and municipal tax coffers.

“Alberta business aviation makes a significant contribution to the province and to Canada,” says Toering. “It generates almost a quarter of our sector’s total economic output, and over 20 per cent of full-time business aviation employment.

These are very well paying jobs. Annual businesses aviation wages average about $69,000, compared with the national industrial average of $47,000.”

Another aspect of business aviation that is not as well known as it should be is its excellent safety record. “I am very proud of the fact that Canadian business aviation, and businessincalgary.com | BUSINESS IN CALGARY June 2015 • 51

business aviation is here to stay • Business Aviation

“There are too many journalists who use the idea of private aircraft as a lazy and clichéd way to describe a certain type of wealth, and too many policy-makers who don’t look beyond the superficial headline.” ~ Rudy Toering corporate aviation in particular, is the safest form of flight in the world. There is simply no safer way to move people and goods than by Canadian business aircraft,” says Toering. “But, as good as our record is, we are not resting on our laurels. The CBAA recently introduced a new and comprehensive program aimed at instilling a safety culture in every type of operation, regardless of its size.

With this program, we can help assure that our members stay committed to that existing safety record.”

Sponsored by Bombardier Business Aviation and Nav Canada, Partners in Safety integrates a business aviation safety management system, a national aggregate database and flight data management into one safety initiative.

“Even if you’re operating only one aircraft, you can use Partners to substantially increase your safety,” Toering explains.

Yet, despite all of its well-documented benefits, business aviation still faces significant challenges. “We battle false impressions of business aviation everyday,” says Toering. “There are too many journalists who use the idea of private aircraft as a lazy and clichéd way to describe a certain type of wealth, and too many policy-makers who don’t look beyond the superficial headline.”

Merlin Preuss, CBAA vice president of government and regulatory affairs, deals with these issues every day. “We have to continuously educate regulators about how business aviation operates in the real world,” he explains. “For example, Canadian business aviation must follow a complex set of new regulations – the most onerous in the world. The CBAA is working with Transport Canada to ensure that the rules are scaled for the many Canadian companies which operate, and rely on, one aircraft.”

Proposed new flight and duty time regulations are also a concern. “Common sense should tell you that private business pilots flying on-demand charters do not operate under the same conditions as pilots on commercial scheduled flights, yet the federal government is trying to lump the two together under new regulations.”

Another issue facing business aviation is how the government will manage its new Responsible Aerodrome Development regulations. “Many smaller airports have been shut down, and the ones remaining are critical parts of Canada’s transportation infrastructure,” says Preuss.

Canada has 300 certified airports, but only 89 are part of the national airport system. In addition, there are literally thousands of aerodromes and landing strips across the country. “Our national connectivity depends on our ability to fly to where we are needed – and that is exactly what business aviation excels at,” Preuss explains. “Without clear guidelines, airports could be closed or their activity severely limited based on public sentiment, not facts. If we lose our right to land, we lose a fundamental part of how this country functions.”

The price of oil may be leading the news cycle, but on the ground, the needs and benefits of business aviation remain as important – if not more important – than ever. BiC 52 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

aviation Directory • Business Aviation

ALBERTA AVIATION OPERATORS

Edmonton Shell Aerocentre

Phoenix Heli-Flight Inc.

Alta Flights Ltd.

Sarah Gratton, Aerocentre Manager Toll Free: 1 888 890 2477 Tel: 780 890 1300

Paul Spring, President Tel: 780.799.0141 Aircraft Operated: EC120B, AS350B2, AS350B3DH, EC130B4, AS355N, AS355NP, EC135T2e

Bob Lamoureux, President Tel: 587.400.9789 www.altaflights.com charters@altaflights.com Aircraft Operated: (2) Metro 23, (1) King Air 350, (1) Piper PA31, (4) Cessna 172

Adventure Aviation Inc. Michael Mohr, Owner Tel: 780.539.6968 Aircraft Operated: (3) Cessna Skyhawk C172, (1) Piper Twin Comanche PA30, (1) Cessna Centurion P210N, Precision Flight Controls “Cirrus II” Simulator

Ahlstrom Air Ltd. Kyle Wadden, Operations Manager / Chief Pilot Tel: 403.721.2203 Cell: 403.844.0978 Aircraft Operated: (1) AS350SD2

Air Partners Corp.

Vik Saini, President Toll Free: 1.877.233.9350 Alternate Number 403.291.3644 Aircraft Operated: (3) Cessna Citation X, (1) Beechcraft King Air 200, (2) Beechcraft King Air 350, (3) Cessna Citation Ultra 560, (1) Cessna CJ2, (1) Hawker 800A, (1) Bombardier Learjet 45

Albatros Aircraft Corp.

E-Z Air Inc. Matt Wecker, Owner Tel: 780.453.2085 Aircraft Operated: Robinson R44

Ralph Henderson, President Tel: 780.454.4531 Aircraft Operated: (3) C172G1000 equipped, (1) C172 SP (FEGU), (2) Diamond DA 20

Richard Hotchkiss, President/CEO Toll Free: 1.888.291.4566 Aircraft Operated: (1) Falcon 900EX, (2) Challenger 604, (2) Challenger 300, (2) Citation Sovereign, (1) Gulfstream 150, (1) Hawker 800XP, (1) Lear 55, (3) Lear 45, (1) Lear 35, (1) Citation V, (4) Dash 8 300, (1) Dash 8 -100, (7) Beech 1900D, (4) Metro 23, (3) King Air 350, (3) King Air 200

Edmonton Police Service

R1 Airlines Ltd.

Edmonton Flying Club

Tel: 780.408.4218 Aircraft Operated: (2) EC120

Enerjet Darcy Morgan, CCO Tel: 403.648.2800 Aircraft Operated: Boeing 737-700NG

Guardian Helicopters Inc.

Joe Viveiros, Ops Manager Tel: 403.274.6103 www.albatrosaircraft.ca Aircraft Operated: Beechcraft King Air B200, Cessna Citation CJ4, Citation X, Agusta A109S Grand

Graydon Kowal, President/CEO Tel: 403.730.6333 Aircraft Operated: Bell 206 B Jet Ranger, Bell 206 L1/L3 Long Ranger, Bell 205 A-1, Bell 205 A-1+, AStar 350 BA, AStar 350 Super D, AStar 350 B3, MD 530 FF

Alta Flights Ltd.

Integra Air

Bob Lamoureux, President Tel: 587.400.9789 www.altaflights.com charters@altaflights.com Aircraft Operated: (2) Metro 23, (1) King Air 350, (1) Piper PA31, (4) Cessna 172

Avmax Group Inc. Don Parkin, Executive VP Tel: 403 291 2464

Calgary Police Service Tel: 403.567.4150 Aircraft Operated: (2) EC120

Can-West Corporate Air Charters Art Schooley, President Tel: 780.849.4552 Aircraft Operated: Citation 560 Ultra, Piper 31 Navajo, Cessna 210 Centurion, Cessna 206 Stationair, Beechcraft King Air 200, Cessna 185 Skywagon, Cessna 182 Skylane

Canadian Helicopters Limited Don Wall, President & CEO Tel: 780.429.6900 Aircraft Operated: Robinson R22B, Robinson R44II, Bell 206B | BIII, Airbus Helicopters EC120B, Bell B206L | L1, Airbus Helicopters AS350BA | B2 | B3 | B3e, Bell B407, Airbus Helicopters, AS355F2 | N, Sikorsky S76A | A++, Bell B212, Bell B412 EP, Sikorsky S61N

Delta Helicopters Ltd. Don Stubbs, President Toll Free: 1.800.665.3564 Aircraft Operated: (7) Bell 206B, (2) A-Star 350 BA, (7) A-Star 350 350B2, (4) Bell 204B

Sunwest Aviation Ltd.

Brent Gateman, CEO Toll Free: 1.877.213.8359 www.integraair.com Aircraft Operated: (3) BAE Jetstream – 31, (3) King Air 200, SAAB 340 B

Kenn Borek Air Ltd. Brian Crocker, Operations Manager Tel: 403.291.3300 Aircraft Operated: Twin Otter DHC6, Turbine DC3, King Air BE200, Beechcraft 1900

Mountain View Helicopters Paul Bergeron, President/CP Tel: 403.286.7186 Aircraft Operated: R22 Beta & Beta II, R44 Raven II, Bell 206 Jet Ranger

North Cariboo Air Ehab Matta, Director of Business Development Toll Free: 1.866.359.6222 www.flynca.com Aircraft Operated: Dash 8 100/300, Beech 1900D, King Air 200, Challenger 601, AvroRJ100, Q400

OpsMobil Toll Free: 1-877-926-5558 Aircraft Operated: (4) C-172, (1) C-206, (1) C-208, (1) PA-31, (3) R44, (28) R44-II Raven, (5) BH-206B, (1) BH-206L3, (2) AS-350BA, (1) AS-350B2, (11) AS-350FX2, (2) EC-120B

Peregrine Helicopters Tel: 780.865.3353 www.peregrinehelicopters.com peregrinehelicopters@gmail.com Aircraft Operated: (1) B206B3, (1) Bell 206 L3

Richard Pollock, Business Development Manager Toll Free: 1.888.802.1010 www.r1airlines.ca Aircraft Operated: (1) Dash 8-100, (1) Dash 8-300, (2) CRJ100/200, (2) Beechcraft 1900D

Aries Aviation Service Corp Marvin Keyser, President Toll Free: 1.877.730.6499 Aircraft Operated: LR36 Learjet, PA-31 Navajo, King Air 200, Turbo Commander

Canadian North H. (Hart) Mailandt, Director, Business Development Tel: 403 383 3453 www.canadiannorth.com hmailandt@canadiannorth.com Aircraft Operated: (4) Dash 8, (5) 737-200 Combi, (10) 737-300

Can-West Corporate Air Charters Ridge Rotors Inc. Hans Nogel, Ops Mgr Toll Free: 1.877.242.4211 Aircraft Operated: Eurocopter AStar AS350, Bell 206 Jetranger, Robinson RH44

Art Schooley, President Tel: 780.849.4552 Aircraft Operated: Citation 560 Ultra, Piper 31 Navajo, Cessna 210 Centurion, Cessna 206 Stationair, Beechcraft King Air 200, Cessna 185 Skywagon, Cessna 182 Skylane

Rotorworks Inc. Jim Hofland, Chief Pilot/Ops Manager/Instructor; Ryan Cluff, Chief Flight Instructor/Commerical Pilot Tel: 780.778.6600 Aircraft Operated: (2) R22 Robinson, (1) R44 Robinson

Central Aviation Inc.

Westjet Airlines Ltd.

Darcy Morgan, CCO Tel: 403.648.2804 Aircraft Operated: Boeing 737-700NG

Colin MacLeod, Ops Manager Tel: 403.242.9130 Aircraft Operated: (3) WACO Biplane, (1) King Air B200

Enerjet Toll Free: 1.888.937.8538 www.westjet.com Aircraft Operated: Boeing Next Generation 737600, 737-700, 737-800, Bombardier Q400 NextGen, Boeing 767-300ER

ALBERTA CHARTER OPERATORS CHARTER FIXED WING

Integra Air Brent Gateman, CEO Toll Free: 1.877.213.8359 www.integraair.com Aircraft Operated: (3) BAE Jetstream – 31, (3) King Air 200, SAAB 340 B

Kenn Borek Air Ltd.

Adventure Aviation Inc. Michael Mohr, Owner Tel: 780.539.6968 Aircraft Operated: (3) Cessna Skyhawk C172, (1) Piper Twin Comanche PA30, (1) Cessna Centurion P210N, Precision Flight Controls “Cirrus II” Simulator

Air Partners Corp.

Vik Saini, President Toll Free: 1.877.233.9350 Aircraft Operated: (3) Cessna Citation X, (1) Beechcraft King Air 200, (2) Beechcraft King Air 350, (3) Cessna Citation Ultra 560, (1) Cessna CJ2, (1) Hawker 800A, (1) Bombardier Learjet 45

Absolute Aviation Ron VandenDungen, Chief Flight Instructor Tel: 780.352.5643 Aircraft Operated: (5) Cessna 172, (1) Piper Twin Comanche, (1) Piper Aerostar

Brian Crocker, VP Operations Tel: 403.291.3300 Aircraft Operated: Twin Otter DHC6, Turbine DC3, King Air BE200, Beechcraft 1900

North Cariboo Air Ehab Matta, Director of Business Development Toll Free: 1.866.359.6222 www.flynca.com Aircraft Operated: Dash 8 100/300, Beech 1900D, King Air 200, Challenger 601, AvroRJ100, Q400

Northern Air Charter Rob King, President Tel: 780.624.1911 Aircraft Operated: Piper Aztec, Piper Navajo, King Air 100, King Air B200, Beechcraft 1900D

OpsMobil Ron Ellard, Operations Manager - Fixed wing Toll Free: 1-877-926-5558 Aircraft Operated: (4) C-172, (1) C-206, (1) C-208, (1) PA-31

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 53

aviation Directory • Business Aviation

Sky Wings Aviation Academy Ltd.

E-Z Air Inc.

Precision Helicopters Inc.

Canadian North

Dennis Cooper, CEO Toll Free: 1.800.315.8097 Locations in Red Deer and Okotoks Aircraft Operated: (9) Cessna 172, (1) Piper Senaca I, (1) Piper Navajo

Matt Wecker, Owner Tel: 780.453.2085 Aircraft Operated: Robinson R44

John Carlton, DOM Toll Free: 1.877.545.5455 Aircraft Operated: (1) AS350BA, (1) AS350D2

Edmonton Police Service

Remote Helicopters Ltd.

Tel: 780.408.4218 Aircraft Operated: (2) EC120

Jeff Lukan, President Tel: 780.849.2222 Aircraft Operated: Bell 206B, A-STAR 350 B2, A-STAR 350 SD2, A-STAR 350 B3E, Bell 205, Bell 212

H. (Hart) Mailandt, Director, Business Development Tel: 403 383 3453 www.canadiannorth.com hmailandt@canadiannorth.com Aircraft Operated: (4) Dash 8, (5) 737-200 Combi, (10) 737-300

R1 Airlines Ltd. Richard Pollock, Business Development Manager Toll Free: 1.888.802.1010 www.r1airlines.ca Aircraft Operated: (1) Dash 8-100, (1) Dash 8-300, (2) CRJ100/200, (2) Beechcraft 1900D

Sunwest Aviation Ltd. Richard Hotchkiss, President/CEO Toll Free: 1.888.291.4566 Aircraft Operated: (1) Falcon 900EX, (2) Challenger 604, (2) Challenger 300, (2) Citation Sovereign, (1) Gulfstream 150, (1) Hawker 800XP, (1) Lear 55, (3) Lear 45, (1) Lear 35, (1) Citation V, (4) Dash 8 300, (1) Dash 8 -100, (7) Beech 1900D, (4) Metro 23, (3) King Air 350, (3) King Air 200

Tempest Jet Management Corp Brent Genesis Tel: 866.501.0522 www.tempestjet.ca Aircraft Operated: Citation Ultra, King Air 200

Ahlstrom Air Ltd. Kyle Wadden, Operations Manager / Chief Pilot Tel: 403.721.2203 Cell: 403.844.0978 Aircraft Operated: (1) AS350SD2

Albatros Aircraft Corp.

Joe Viveiros, Ops Manager Tel: 403.274.6103 www.albatrosaircraft.ca Aircraft Operated: Agusta A109S Grand

Bailey Helicopters Ltd. Brent Knight Tel: 403.219.2770 Cell: 403.370.2750 www.baileyhelicopters.com Aircraft Operated: Bell 212, Bell 206 B, AS 350 B2/BA

Black Swan Helicopters Ltd. Toll Free: 1.877.475.4774 Aircraft Operated: (1) FX 2, (1) B206B, (2) R44 II, (1) B204C

Canadian Helicopters Limited Don Wall, President & CEO Tel: 780.429.6900 Aircraft Operated: Robinson R22B, Robinson R44II, Bell 206B | BIII, Airbus Helicopters EC120B, Bell B206L | L1, Airbus Helicopters AS350BA | B2 | B3 | B3e, Bell B407, Airbus Helicopters, AS355F2 | N, Sikorsky S76A | A++, Bell B212, Bell B412 EP, Sikorsky S61N

Great Slave Helicopters Ltd. Mark McGowan, President; Corey Taylor, VP, Global Business and Product Development Tel: 867-873-2081 Springbank Base Facility, Tel: 403.286.2040 Aircraft Operated: Bell 206B, Bell 206 LR, Bell 206L3, Bell 206L4, Bell 212, Bell212S, Astar 350 BA, 350B2, 350B3, EC 130B4, BK 117 850D2, Bell 412EP, Bell 407, Bell 205

Guardian Helicopters Inc. Graydon Kowal, President/CEO Tel: 403.730.6333 Aircraft Operated: Bell 206 B Jet Ranger, Bell 206 L1/L3 Long Ranger, Bell 205 A-1, Bell 205 A-1+, AStar 350 BA, AStar 350 Super D, AStar 350 B3, MD 530 FF

High Country Helicopters Hjalmar Tiesenhausen Toll Free: 1.877.777.4354 Aircraft Operated: Bell 206, 206L and Eurocopter A-Star 350

Highland Helicopters Ltd. Terry Jones, Director of Operations Tel: 604.273.6161 www.highland.ca Aircraft Operated: (15) Bell 206B, (2) Bell 206 L-3, (2) AS350 BA, (16) AS350 B2

Mountain View Helicopters Paul Bergeron, President/CP Tel: 403.286.7186 Aircraft Operated: R22 Beta & Beta II, R44 Raven II, Bell 206 Jet Ranger

Mustang Helicopters Inc. Tim Boyle, Ops Manager Tel: 403.885.5220 Aircraft Operated: AS350 B3e, AS350 B2, MD500 D, BELL 205A-1++, BELL 212 HP

OpsMobil Bertrand Perron, General Manager - Rotary wing Toll Free: 1-877-926-5558 Aircraft Operated: (3) R44, (28) R44-II Raven, (5) BH-206B, (1) BH-206L3, (2) AS-350BA, (1) AS350B2, (11) AS-350FX2, (2) EC-120B

Peregrine Helicopters Tel: 780.865.3353 www.peregrinehelicopters.com peregrinehelicopters@gmail.com Aircraft Operated: (1) B206B3, (1) Bell 206 L3

Delta Helicopters Ltd. Don Stubbs, President Toll Free: 1.800.665.3564 Aircraft Operated: (7) Bell 206B, (2) A-Star 350 BA, (7) A-Star 350 350B2, (4) Bell 204B

Phoenix Heli-Flight Inc. Paul Spring, President Tel: 780.799.0141 Aircraft Operated: EC120B, AS350B2, AS350B3DH, EC130B4, AS355N, AS355NP, EC135T2e

54 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Ridge Rotors Inc. Hans Nogel, Ops Mgr Toll Free: 1.877.242.4211 Aircraft Operated: Eurocopter AStar AS350, Bell 206 Jetranger, Robinson RH44

Slave Lake Helicopters Ltd. George Kelham, President; Debbie Kelham, Owner Tel: 780.849.6666 Aircraft Operated: (3) AS350 B2, (1) Bell 206 BIII, (1) EC120

Sloan Helicopters Ltd. Troy Sloan, President Tel: 780.849.4456 Toll Free: 1-888-756-2610 or 1-888-SLOAN10 Aircraft Operated: (2) RH44, (1) EC120B, (1) AS350B2

Thebacha Helicopters Ltd. Kim Hornsby, President Tel: 780.723.4180 Aircraft Operated: (1) AS350B2, (1) AS350BA, (1) Bell 206B

Wood Buffalo Helicopters Michael Morin, President Tel: 780.743.5588 Toll Free: 1.866.743.5588 operations@woodbuffalohelicopters.ca Aircraft Operated: Bell 206B, Eurocopter EC120B, Eurocopter AS350-B2

JET CHARTERS Air Partners Corp.

Vik Saini, President Tel: 403.291.3644 Aircraft operated: (3) Cessna Citation X, (1) Beechcraft King Air 200, (2) Beechcraft King Air 350, (3) Cessna Citation Ultra 560, (1) Cessna CJ2, (1) Hawker 800A, (1) Bombardier Learjet 45

Albatros Aircraft Corp.

Joe Viveiros, Ops Manager Tel: 403.274.6103 www.albatrosaircraft.ca Aircraft Operated: Beechcraft King Air B200, Cessna Citation CJ4, Citation X

Aurora Jet Partners - Head Office / Edmonton Base Toll Free: 1.888.797.5387 Fax: 780.453.6057 www.aurorajet.ca Aircraft Operated: Gulfstream Astra SPX, Phenom 100/300, Challenger 300/605, Global 5000

Enerjet Darcy Morgan, CCO Tel: 403.648.2804 Aircraft Operated: Boeing 737-700NG

Genesis Aviation Inc. Brent Genesis, President Tel: 403.940.4091 www.genesisaviation.ca Aircraft Operated: Full complement of turbo props & business jets

Tempest Jet Management Corp Brent Genesis Tel: 866.501.0522 www.tempestjet.ca Aircraft Operated: Citation Ultra

AIRCRAFT SALES Genesis Aviation Inc. Brent Genesis, President Tel: 403.940.4091 www.genesisaviation.ca jetsales@genesisaviation.ca

Prairie Aircraft Sales Ltd. Kathy Wrobel, President; Andrew Fletcher, Sales Associate Tel: 403.286.4277 www.prairieaircraft.com sales@prairieaircraft.com Aircraft Operated: (1) Caravan

Hopkinson Aircraft Sales Andrew Hopkinson, VP Tel: 403.291.9027 Fax: 403.250.2459 www.hopkinsonassociates.com sales@hopkinsonassociates.com Aircraft: Specializing in commercial and corporate aircraft

FRACTIONAL OWNERSHIP & JET MANAGEMENT Airsprint Inc. Judson Macor, Chairman & CEO Toll Free: 1.877.588.2344 www.airsprint.com flywithus@airsprint.com Selling interests in Citation XL/S and CJ2+

Photo courtesy of the Canola Council of Canada

The New Ag • Agriculture

The New Ag Efficiency and laptops in the barn

BY COLLEEN WALLACE

F

or many people, farming means cows, milk, chickens, eggs, beef, wheat, corn, potatoes and a 24-7, 365day lifestyle of early mornings, late nights and lots of hard work.

But this is no longer your grandfather’s back 40! From Red Deer, Ponoka, dotting the Prairie horizon into Saskatchewan and suddenly in boardrooms and busy offices in downtown Calgary, contemporary farms, farmers and farming are part of an evolution.

In hectic and conventional other circles, farmers and farming are understandably misunderstood – mainly because many people rarely have direct exposure and contact with agriculture and are left with stale and lopsided impressions, usually based on stereotypes and clichés.

The business of farming has dramatically changed and continues to evolve. The size of farms has changed. The science, the productivity and the margins of farming have changed. From bushels per acre to yields and projections, maximizing the business efficiencies of farms and farming are the new bottom line.

Farming’s ongoing changes are also new. Beyond GPSdriven tractors and laptops on the counter in the barn, technology – hardware and software – continues as one of the biggest changes.

For many generations agriculture was simply defined as an earthy science of chores, cultivating the soil, growing crops, raising livestock and chickens and producing milk and eggs. businessincalgary.com | BUSINESS IN CALGARY June 2015 • 55

The New Ag • Agriculture

Despite the basic simplicity of agriculture in a complex and challenging world, the key purpose and role of agriculture is … to feed people. As all levels of Ag, business experts vouch the reason why farms have jobs for life is that there are lots of people who need to be fed. Lots!

Ag for Life teaches Alberta schoolkids about “the new Ag.”

The new Ag begins… at school

To boost agriculture education in Alberta, Ag for Life has a mandate to deliver educational programming designed to improve rural and public understanding of the agricultural industry, dispel stereotypes and expose Alberta kids to the realities about the business of farming.

Just last year alone, Ag for Life reached over 50,000 Alberta children, youth and adults. “With founding member support we are able to continue expanding the reach of these vital programs into communities throughout Alberta,” says Luree Williamson, CEO of Ag for Life.

“The organization brings together various sectors including Ag services, energy, financial and not-for-profit organizations, along with farmers, ranchers and community leaders.”

Ag for Life founding members include Agrium Inc., ATB Financial, ATCO Group, Penn West, Rocky Mountain Equipment, TransCanada Corporation and UFA Cooperative Limited along with contributing members AdFarm and Glacier FarmMedia.

56 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Farming has been redefined. Small, large or massive farms are now the big business of … cultivating the soil, growing crops, raising livestock and chickens and producing milk and eggs.

Farmers, analysts, scientists and a new breed of Ag investors now work closely together, not only constantly bringing the business of agriculture to the next level but are unanimous and focused that agriculture is a global business with great opportunity, unlimited growth, exciting investment potential and often staggering ROIs. Despite the basic simplicity of agriculture in a complex and challenging world, the key purpose and role of agriculture is … to feed people. As all levels of Ag, business experts vouch the reason why farms have jobs for life is that there are lots of people who need to be fed. Lots!

“Give or take 10 million at any given moment, there are now about 7.3 billion people in the world. By 2100 there will be 10 billion. And they all need to eat!” exclaims the savvy and infectiously personable Dr. Michael (Mike) Raymont, president and CEO of Canadian venture capital firm AVAC Ltd., a private company that invests in promising earlystage ventures, and a managing partner of Verdex Capital, focusing on agricultural technology and R&D investments and opportunities.

“But they’re not making any more land. So farming has to be smarter.

We must increase productivity and produce more food with the land we have. I’m an eternal optimist and I realize that is much easier said than done. The only way to achieve the required level of productivity is turning the farm into a business, boosting research and development to find newer and newer solutions and with cutting-edge technology.

Raymont is a venture capital executive on a mission. He enthusiastically emphasizes that Ag Tech is an area of tremendous growth, in North America and around the world, and it is also increasing in popularity with both strategic corporate and conventional investors.

“With a growing world population and increasing constraints on agricultural production capacity, global food supplies face significant threats,” he warns. “The facts and figures are undisputable. We Dr. Michael (Mike) Raymont, president and CEO of must produce more food in the Canadian venture capital firm

“Last year there were more than 20 million acres in canola, especially in Alberta and Saskatchewan, ranking Canada as the largest canola

Photo courtesy of the Canola Council of Canada

The New Ag • Agriculture

producer in the world.” ~ Clinton Jurke

next 30 years than we have produced in the past 2,000. Applying innovation and technology to the agricultural sector is critical to address the challenges and create a unique opportunity for investors.”

He points out that it’s misleading to simplify a very complex situation but the key role and vital Ag technology payoff is efficiency: growing more grain per acre, ranching more cattle, getting more oil out of the seed and other stateof-the-art ways to maximize the business of agriculture.

For example, the science of agriculture has calculated that it takes from 2.5 to 10 times the land to grow one calorie of meat than one calorie of cereal. There are similar calculations about how much oil can be crushed from one acre of canola plants and other details of the contemporary farm business plan.

Raymont explains that, although the urgent need for smart farming is enormous, so far there are only about one dozen active Ag tech investment firms in the world. “It’s not optional. It’s a must!” he urges. “Innovation in Ag farming is becoming huge and sophisticated. And we need to invest in innovation!

“Verdex has invested in a company which is developing technology to increase oil yield from a soybean from 25 to 58 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

60 per cent. Do the math! The value of a 25 to 30 per cent increase in yield, applied to the world’s harvest, works out to $30 billion a year. And the company has locked up IT patents for another 30 years. A solid investment,” Raymont smiles.

“It’s also the commercialization of Ag R&D and turning the R&D science into a viable Ag business. We invest in companies that have passed the pure science and can produce more bushels of wheat or canola per acre. We also enhance the technology about breeding. And we fund genetic engineering (very controversial and banned in parts of Europe and Japan) that will help us better understand what goes on in the cells of plants.”

He makes the vital point that, with cutting-edge technology, the science of agriculture and the new era of Ag investing, “There are three criteria for venture capital: people, people and people. We look for their passion, their dedication and if they are all-in.”

Like Remi Schmaltz, founder and CEO of the Ag tech startup Decisive Farming, which helps farmers better manage their farms, make informed decisions about their business and increase overall profitability through data-driven webbased software tools.

Although the startup is now booming, for Schmaltz and his brother, Tasha, it is Ag technology borne out of passion. His family has been in the agricultural business for four generations. They were familiar with the needs and challenges of farming and sold fertilizer, seed and chemicals to farmers for nearly 100 years.

“Soon after we took over the family business, we started looking at where farming was headed and how we could add more value to the farmer. After some research, we came up with precision agronomics and Decisive Farming was launched,” he explains.

“It’s part of the efficiency, profitability and big business of farming. A typical agronomist can manage 50,000 acres.

With our technology, they can manage over 400,000 acres.”

The company’s My Farm Manager program gives farmers everything they need to know about their farm, all in one place – from production and agronomic data to markets, financials, employees and equipment. The company also has a tool called Optimize RX that helps farmers plant and fertilize their crops as efficiently as possible. Fields aren’t typically uniform, so one spot might be richer in minerals and nutrients than another, but farmers still often apply fertilizer evenly. This leads to over-fertilization and runoff in some areas, while others are under-fertilized costing the farmer in lost production and lost profit. Using satellite imagery and soil testing, Optimize RX identifies how much fertilizer or seed to use across the fields.

Optimize RX is just one example of a vital Ag technology tool, enabling Decisive Farming to acquire more than 250 customers.

The New Ag • Agriculture

Remi Schmaltz, founder and CEO of Decisive Farming.

Map courtesy of the Canola Council of Canada

Greg Bowie is a respected Ponoka beef producer, a much in-demand livestock nutritionist and Ag consultant who also happens to be the chair of the Alberta Beef Producers. He has made the smooth transition to the new agriculture.

With more than 35 years of experience with farms and farming, Bowie he is a big booster of Ag technology and the new ways of doings things. “The business of farming has become so efficient with technology as well as science like genetics.

Canada is a recognized world leader in the science of beef genetics,” he says with pride.”

He particularly credits technology with allowing beef producers to capture and exchange information. Such an example is the Canadian Beef InfoXchange System (BIXS) – a national voluntary web-based system that provides communication and access of specific animal data stored on the animal’s unique electronic ID tag number.

Ag technology and Ag science advancements also get a lot of credit for the new, undisputable Canadian agriculture reality that … canola rules!

“Until about five years ago, wheat was king,” says Clinton Jurke, agronomy director for the Canola Council of Canada. “Thanks to technology and food and Ag science, all that has changed, dramatically. The major impact has been tremendous efficiency. The common yield used to be less than 20 bushels per acre. Now it is 40-plus bushels per acre.

“All canola is crushed for oil, and about half of the canola harvest is crushed in one of Alberta’s five crushing plants. Last year there were more than 20 million acres in canola, especially in Alberta and Saskatchewan, ranking Canada as the largest canola producer in the world.”

“Ag technology is not a thing of the future,” Remi Schmaltz says with first-hand expertise about the business of farming. “It’s a vital part of the present.” BiC

Greg Bowie, rancher and chair, Alberta Beef Producers.

Clinton Jurke, canola farmer and agronomy director, Canola Council of Canada.

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 59

Just the Facts • Oil & Gas

Just the

Facts The industry deals with a perfect storm

By John Hardy

60 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Just the Facts • Oil & Gas

Jackie Forrest, vice president, ARC Financial Corp.

N

Dr. Bob Schulz, professor of strategic management at the University of Calgary’s Haskayne School of Business.

o doubt about it. In some consumer media and the minds and perceptions of especially people in Alberta, in Calgary and throughout Canada, there is confusion and misunderstanding about the true oil price situation.

In energy-focused Alberta, it’s discouraging bad news that could or already impacts everything from jobs and investment to quality of life. In the East, consumers in places like Montreal, Ottawa and Toronto are overjoyed about what a deal they are getting at the pump.

In the oil business, the oversimplified formula is also the intricately complex dilemma about the oil price slump: oversupply = lower prices = less investment = drop in supply = rebound in prices.

“Many industry analysts and insiders understand the cyclical nature and history of the oil business,” says the sharp and knowledgeable Jackie Forrest, vice president of ARC Financial Corporation. “And a drop in price was expected if one or two price adjustment factors happened.

What nobody expected was four negative factors happening around the same time.”

She shakes her head about hindsight but explains that the slump was triggered by a perfect storm of oil price broadsides.

“The global economy was a big factor and it missed expectations for growth, especially the numbers from China were down about 30 per cent. There were some surprise oil production comebacks in the Middle East – especially in Libya – adding about one million barrels per day. The supply of tight oil (also known as shale oil or light tight oil from formations of low permeability, often shale or tight sandstone) in the U.S. surprised everyone, including Americans and it turned out to be 50 per cent more than expected. And most people assumed or believed that OPEC would cut their production to keep prices stable.”

Forrest and other analysts are still a bit stunned by the October 2014 comments of petroleum-bearing Saudi Arabia’s petroleum minister Ali al-Naimi and what has since become infamous as his “crooked logic” speech and Saudi

Alan MacFadyen, emeritus at the University of Calgary and co-author of Petropolitics.

position, explaining to his OPEC counterparts that they should maintain output to protect market share from rising supplies of U.S. shale oil, which costs more to get out of the ground and thus becomes less viable as prices fall.

His now much quoted point was that it was “crooked logic” for low-cost producers such as Saudi Arabia to pump less, just to balance the market.

While the ARC vice president suggests that influencing factors have always caused oil price cycles, last fall’s combination of at least four (maybe more) factors triggered a major down cycle that the industry will be talking about for years.

“Of course the oil and gas industry is our primary focus here in Alberta but commodities in general – forestry, steel, coal – have always been cyclical,” says respected Calgary business expert Dr. Bob Schulz, professor of strategic management at the University of Calgary’s Haskayne School of Business. “And the cycles have always been pegged on the supply and demand curves. The long-term demand curve generally follows the world economy. The supply curve varies more, especially now.

“The supply curve is impacted by so many factors. Most of all, the world supply factored into the world demand.

And most things impact that. The sudden U.S. popularity of fracking. Increased production from Libya. China’s demand is up by about five per cent a year. And the unpredictability of various geopolitical risks. Russia. Crimea. Iran produces about 3.5 million barrels a day. The possible nuclear deal may trigger more production and an extra one million gallons a day from Iran could add to the oversupply. And the volatile situations in Yemen and Venezuela. It could significantly impact supply.”

The crisis management of the oil price slump is good opportunity to paraphrase the often quoted wisdom that those who don’t learn from oil industry history shouldn’t be too surprised when it is repeated. It’s partially the premise of Petropolitics, a suddenly timely book by Calgary’s Alan J. MacFadyen and the late G. C. Watkins. businessincalgary.com | BUSINESS IN CALGARY June 2015 • 61

Just the Facts • Oil & Gas

Alan Ross, partner, Borden Ladner Gervais LLP.

David Yager, national leader of oilfield services with MNP.

Especially with the recent jitters about the collapse of oil prices, Petropolitics provides a context for the many challenges facing the world and the petroleum industry. In addition to relatively recent environmental policies, Petropolitics argues that an effective petroleum policy involves five main components: market-based pricing; an effective royalty/tax regime; a fair intergovernmental agreement on how to share those revenues; government programs for saving and spending the petroleum revenues which recognize the instability in revenue flows; and sensitive economic policies as industry investment fluctuates.

“It’s a complex history and it is now more global than ever,” says MacFadyen, emeritus at the University of Calgary and the professor who initiated the energy economics program in the department of economics. There are always new aspects to petropolitics.

As recently as 10 years ago, nobody expected that the world would have such a strong supply, and even an oversupply of oil.

“But the supply and demand for oil has always been a largely economic story, based on world politics. Every 10 years or so, there is a crisis in the Middle East and it spikes the price,” he explains. “Europe is a huge importer of

oil and benefits from low prices. Highgrowth countries, like China and India, will continue as the big importers. The U.S. may have increased their supply but they still import more than four million barrels a day and will continue to be Canada’s biggest customer.”

Schulz also cites history, industry trends and milestones but makes the oil and gas business point that, when the demand curve gets close to the supply curve, oil producers look to expand. When the supply curve gets much higher than the demand curve, prices drop.

Various industry insiders, economists and analysts hint at a vague but likely consensus that Alberta, and particularly Calgary – the hub of the business of oil – has had it good for such a long streak that it wasn’t just an up cycle.

The high price of oil, and all its good-life perks, subtly became the normal – the charmed way of Calgary and Alberta life.

Brilliant and always outspoken oil industry expert David Yager, national leader of oilfield services with MNP, shrugs and roars, “The oil business has been up and down and cyclical for 40 years! At least since the height of the OPEC days in the ’70s. Maybe the cyclicality has now been accelerated

62 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

by electronic trading, the advent of the futures markets and hedging, but it’s still basically cycles. It goes down and it will go back up.

“Reversing the direction of oil prices from down to up will require a swing in the supply/demand equation of at least one million barrels per day – half from demand and half from supply.

This will occur in 2015. Currently, the world burns over 90 million barrels of crude, daily. The price is down by about $50 a barrel. If current prices hold (which they won’t) this would save the world’s oil consumers $4.5 billion per day, or $1.6 trillion per year,” he explains with confidence and expertise. “It’s big money. For the world to consume an extra 500,000 barrels per day, demand must rise by only 6/10ths of one per cent. The other 500,000 barrels will come from the decline in oil production. No matter how the North American shale oil boom came to be, production is unsustainable without continued intensive drilling,” Yager says.

“This won’t happen primarily due to deep spending cuts. Production decline rates are huge. In south Texas, for example, an average well’s production falls over 60 per cent in the first year. Shale oil output will drop significantly for the rest of this year. This is physics, not economics.”

For Canadian oil producers, juggling with contingencies, dealing with spending cuts and shrivelled investments, and readying for the rebound also presents some unique oil business challenges.

Just the facts • Oil & Gas

SEPTEMBER 11th-26th, 2015

“Energy companies have historically had a licence to operate. Part of that formal licence is a licence beyond regulations and traditional compliance,” according to Alan Ross, an energy lawyer and a partner at the Calgary law firm Borden Ladner Gervais LLP. “It’s more of a ‘social licence’ and a commitment to the communities where they operate. It’s not a requirement and they don’t have to do it.

“The early indications are that in times of squeezed profits and aggressive cost cutting, companies in the energy sector are maintaining the investments in assets that are really corporate social responsibility. It takes in a wide range of commitments made by a company to improve the conditions in the communities in which it operates – from the funding of social service agencies, to the contributions to capital campaigns, to investments in arts, culture and recreation facilities.

“Social media is a vital factor. It makes a company’s reputation impacted more quickly and powerfully. Companies must address issues, quickly. It’s important to get ahead of the ball. The good news is, despite some caution and cutbacks, energy companies are loyal to their social licences.”

Aside from the valid theory of cycles and the constant flux in supply and demand, Jackie Forrest emphasizes some of the numbers that could possibly tip the balance. “Despite last fall’s stunning drop in oil prices, the difference between global supply and demand is relatively small. The world consumes over 93 million barrels per day. And as we found out at the end of 2014, an increase of just 1.5 million barrels a day, from any source, becomes oversupply and prices are cut.”

David Yager is bullish and confident about especially the Alberta and Calgary mood and situation turning around. It may not be the $100-a-barrel glory days, but he guesstimates the price rising much closer to the global replacement cost of about $80.

He cautions that, although the rebounded price will not be high enough to resume the massive spending on drilling and new oilsands plants Alberta has got used to, the rebound will stabilize key Alberta life and economy factors like house prices, job markets and the domino effects of overall business confidence. BiC

/Corp_Challenge

/CalgaryCorporateChallenge

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 63

Q & A with the President of Digitex

Hugh Porter talks about Digitex’s growth, products and future plans When and why was Digitex launched?

Digitex was founded in 1997 in Red Deer by Rob Barden and Chris Brown, they set out to build a company that focused on service first and sales second.

are solely focused on the customer experience.

If set up and demonstrated properly that big photocopier everyone loves to hate can become a real asset to your business.

What do you personally find rewarding about Our technological needs were very different Digitex? in 1997. Can you tell us a little about how I love the opportunity to build relationships with things have changed over the years for our customers, suppliers and employees. We have Digitex? some awesome people working for and with this Technology is constantly changing. The brands we company and it’s inspiring to be around so many Hugh Porter carry are from industry leading manufacturers people that care. that spend billions on research and development and offer products that are leading edge. The How is Digitex active in the community? services side is all us and we pride ourselves on staying on top of We support as many local charities as we can. We nominate an the technology so our technicians can do their job to the best of employee of the month every month and along with their award, their ability and fix things right the first time. To do this properly, we we match the donation to a local charity of their choice. We offer provide constant training, just in time car stock replenishment and a free copier to all registered non-profit organizations that ask. a strong support staff that dispatches accurate information on the Additionally, we support the Ronald MacDonald House, breast nature of each call. cancer research, the Salvation Army and the United Way. Our growth since 1997 is sometimes hard to believe and was impossible to predict. Technology shifts definitely force change, but the growth and expansion forced us to keep a close eye on our service model.

It is one thing to offer great service in one location but to offer that same great service across several locations has become something we are very proud of. Part of servicing our customers is understanding the software and solutions available in the market, and our account managers understand these solutions and how they can affect or benefit our customers. They spend 90 per cent of their time consulting and 10 per cent selling, which was the opposite 18 years ago.

Are clients surprised by how many functions and uses are in the multifunctional devices and how these products can be used as a valuable administration resource?

Yes! There are more features on an MFP (copier) these days than there are on most cars! We try to customize their product to their needs and workflow and train their key users on how to use the features they need. We have a team of CSR’s and IT installers that

What’s next for Digitex?

Our industry is constantly evolving and focus has shifted to managed services and software that allows businesses to work more efficiently. We have an IT team that is focused on our software offering and we are always looking for ways to offer more services to our loyal customer base.

I would like to continue to grow Digitex across this great province and expand our footprint. One thing that is an absolute must when we look at acquisitions is that they must also offer the best service available in their region and have a strong track record for doing so.

Our industry is very competitive. To offer a higher level of service you need to be responsive and quick…this all needs to be done with a ‘live’ friendly voice answering your call, not a call center in another country or an automated message centre.

If you could tell your clients one thing, what would it be?

Alberta is very loyal to local Alberta Business. I’d tell them I appreciate their business.

9943 - 109 Street Edmonton, AB T5K 1H6 Telephone: 780.442.2770 • Fax: 780.426.1555 • www.digitex.ca

The flux of exports • Exporting

The Flux of Exports Dealing with ups and downs

BY DAN COOPER

I

the world widened as of last December, to t’s a mixed bag of good news, bad $649 million, as imports rose faster that news, encouraging news, discouraging exports. It was a lower deficit than many news and even some confusing news economists had expected, but an increase when it comes to making sense of export/ from the revised $335 million recorded in import trends and the impact on Calgary, November 2014, according to Statistics Alberta and Canada.

Canada.

Export Development Canada’s (EDC) Imports rose 2.3 per cent to $44.7 Global Export Forecast is a semi-annual billion, with a sharp increase in motor summary that identifies some of the major vehicles and parts and energy products. forces acting on the world economy and But the export numbers were encouragtheir implications for Canadian exporters. ing and positive, up 1.5 per cent to $44.1 It describes which foreign markets billion for December, despite falling oil will offer the best opportunities for prices. The expected decline in energy Canadian exporters for the coming year exports resulting from the more than 50 and analyzes the sales outlook by sector.

Todd Hirsch, senior economist with ATB Financial per cent decline in oil prices since last It also discusses the major risks faced by summer was more than offset by stronger exporters and offers expert overviews exports of manufactured goods and mineral products. about the economy’s overall impact on exports.

In the here and now, and dealing with mid-2015 reality, According to the EDC’s fall 2014 report, “Canada has there’s no denying that the slump and very slow rebound of been pretty lucky lately. Crisis hit in 2009 and overnight oil prices have taken their toll, especially on Alberta as well we lost a quarter of our international sales. Normally, this as Canadian export numbers. would have been enough to sink the rest of the economy.

Economists, analysts and some oil industry insiders suggest But miraculously, that didn’t happen. Instead of following the short-term pain may work out to be longer-term export gain. exports into the abyss, the domestic economy – consumption, The unique oil export formula explains the export quirk housing, internal business investment and the government that the potent U.S. dollar and the bounce in the U.S. sector – came to the rescue. economy combined with the sagging loonie may actually “Why so different this time? In short, Canada didn’t carry U.S.boost Alberta oil export volumes. Sharply lower prices will style excesses into the recession. Sure, our pre-crisis activity was continue and prove to be an actual Alberta revenue hit, as arguably as excessive in relative terms as America’s, but with it has been since prices dropped in the fall. We will export one key difference: when Americans started over-consuming more but get less money for it. and investing, their market was roughly balanced and every bit Of course the discouraging dark cloud of weak oil prices is of over-activity from 2004-08 accumulated into a mountain a vital concern in Calgary-based oil company head offices. of pure excess. In contrast, Canada began in deficit; fiscal The overall science of exports and imports is more heavily consolidation and a prolonged jobless recovery through much of impacted by other factors like interest rates, the strong U.S. the 1990s created a vacuum in the economy. dollar versus the lame Canadian dollar, supply and demand, “When crisis hit, we were far more balanced than our U.S. markets, global markets and the global economy.

U.S. neighbours,” says the EDC report. “This was seen in our “Three months ago, the total value of international exports housing market, which slumped in 2009, but to levels three from Alberta was just under $8.8 billion, the highest since times greater than those in the U.S., in relative terms.”

October 2008 when the global economy was spiralling into Alberta exports and their impact on life and doing business recession,” according to Todd Hirsch, senior economist with in Calgary is an important perspective. But Canada’s overall ATB Financial. export story shows that the merchandise trade deficit with businessincalgary.com | BUSINESS IN CALGARY June 2015 • 65

The flux of exports • Exporting

Rick Titan Your Coach Do you think it’s time to stop asking relatives what you should do with your life, because so far they are driving you in opposing directions? Maybe the answer is not on the TV or the news. - Ugh, Reality TV is the most popular thing on the airwaves right now! Do something a little different, a little out of your comfort zone. Remember, if you don’t change, nothing else will either.

Sometimes, magically, all it takes for a total life transformation can happen in one sentence. I put the challenge to ‘BE Unstoppable’... out to you!

• “Anger” - Learn the Remedy in your Life.

• “Let Go of the Past” - Relationship, job, financial, childhood stories. Get the Antidote.

• “Self-Sabotage” - Be Clear and get the Right message to know the best fork in the Road to take.

I would love to help.

Sincerely, Rick Titan

ricktitan.com 66 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Despite diehard patriotism to the contrary, the U.S. matters!

Particularly for Canadian exports and imports. They always have and likely always will. The undisputable facts and stats are that 88 per cent of all Alberta exports are headed to the States. China is a distant second and the U.K. is third.

A sagging loonie will make exports – from oil and gas, industrial machinery, forestry products, beef, canola oil and other crops and 2015 Calgary tourism – irresistible good-deal bargains, especially for Americans. But the bottom-line fact remains that energy exports are the linchpin of Alberta exports.

Oil accounts for 75 per cent of Alberta’s total exports, with 98 per cent of Alberta’s crude going to the U.S. While the charts and graphs about total exports will show a spike, actual profit will likely take a major hit.

The damage from the 25 per cent oil price drop, calculated with provincial oil energy numbers from 2013, when Alberta times were good and oil prices were stable and oil exports were $77 billion, works out to be about $19-20 billion.

Factoring in a hypothetical 25 per cent USD premium, the equation siphons more than $19 billion from the profit side of the energy export ledger.

There is no way to downplay the export dollar value hit that is caused by the oil price slump but it is not all gloom and negativity for Alberta’s and Canada’s export story.

There are upsides.

Now that Americans have learned their lessons and sorted out their scandalous home financing issues and the U.S. economy is rebounding, the recovery and resurgence of the American housing market is encouraging news for Alberta’s construction, lumber and transportation sectors.

Alberta’s agriculture and food business, which accounts for about eight per cent of Alberta’s exports, is turning out to be an encouraging export success story (especially thanks to emerging markets) and is surging with close to 20 per cent growth.

The world population is growing (particularly China, Indonesia, India and Brazil) triggering an exponential demand for food, particularly meat. Export analysts suggest that, while much of the export attention is focused on traditional exportintensive products like oil, lumber and machinery, the fortunes of Canada’s – and particularly Alberta’s – meat production industry could well be the sleeper of the export sector.

Meat products were a strong international export last year and volumes are rising by more than 18 per cent a year. The meat industry could well be earning its rank as a long-term export trend. Growing world wealth – particularly in emerging markets – is increasing the appetite for processed meat. As a high-quality producer and exporter, Alberta is poised to benefit.

Hirsch underscores a sometimes overlooked aspect of the export good news/bad news story. “Don’t forget, the price of oil fell before the Canadian dollar took a big plunge or the

IF YOU WANT TO BE NOTICED...

TAKE NOTICE. Ever wonder why so many marketing messages seem like the ‘same old same old’?

Because of fear.

Companies fear that if they’re bold and original in their marketing approach, people might react.

To which Twist Marketing says, “Isn’t that the idea?”

www.twistmarketing.com

Twist Marketing™ – For Breakthrough Brands. businessincalgary.com | BUSINESS IN CALGARY June 2015 • 67

The flux of exports • Exporting

Exports & Imports 2014 % Share of Total Exports UK

2.7%

% Share of Total Imports

Japan Mexico 2.3%

UK

1.2%

Germany

China

0.9%

2.2%

China

2.9%

Japan 3.5%

Mexico 4.1% Germany 2.9%

9.8%

USA 77%

USA

52.4%

value of exports would have dipped even more. If the Canadian dollar was still at or near par, things would be about 20 per cent more difficult for the economy. But Alberta is in fairly good shape. Almost 20 per cent of our exports are agriculture and forestry.

Cattle and lumber prices are strong.”

Hirsch points out that it’s not such bullish news for anything Canadians buy or import. Everything from American cars and car parts, bananas and mangoes to Phoenix, Las Vegas or Hawaii vacations will be indefinitely much more expensive. “Buy apples and cherries, not pineapples or kiwis!” the upbeat Hirsch laughs.

The good news continues from the export sector. Canada’s annual merchandise trade balance with the world swung from a deficit of $7.2 billion in 2013 to a surplus of $5.2 billion in 2014.

Statistics Canada numbers show that imports from the United States rose 0.8 per cent to $30 billion in December, 2014 while exports were up 0.6 per cent to $33.1 billion, narrowing Canada’s trade surplus with that country from $3.2 billion in November to $3.1 billion in December.

Exports to other countries increased

4.5 per cent to $11.0 billion in December, while imports were up 5.3 per cent to $14.7 billion. (see charts above) According to 2014 stats, and despite the ailing loonie, Canada’s exports to the U.S. amounted to $364.8 billion or 76.8 per cent of overall exports.

The top 10 selling exports are: • oil: $120.9 billion • vehicles: $56.9 billion • industrial machines, engines, pumps: $23.8 billion • plastics: $11.7 billion • electronic equipment: $9.8 billion • wood: $8.8 billion • aluminum: $7.4 billion • aircraft/spacecraft: $7.3 billion • paper: $7.1 billion • gems and precious metals: $6.9 billion China is Canada’s second biggest export customer. In 2014, exports to China were $17.5 billion.

The top 10 Canadian exports to China are: • wood pulp: $2.6 billion • oilseed: $2.5 billion • ores, slag, ash: $2 billion

68 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

• lumber: $1.7 billion • oil: $933.3 million • industrial machines, engines, pumps: $746.8 million • chemicals: $586.6 million • aircraft/spacecraft: $493.5 million • fish: $465.2 million • animal/vegetable fats and oils: $453.5 million Recent Statistics Canada numbers paint a relatively positive Alberta and Canada export story. The numbers, charts and graphs show that 2014 may go down in the books as a record year for Canadian exporters.

For the year as a whole, international sales were up 10.3 per cent over 2013 levels, reaching a new all-time high of $529 billion. It ended up taking six years but with that total, Canada has finally moved past its pre-recession peak in international trade. The previous record year in exports was 2008, when Canadian businesses sold $487 billion in goods to foreign customers.

As oil prices creep back up, the export news is encouraging for oil, Alberta’s undisputed biggest export. The EDC report – and its number crunching – forecasts that Alberta exports, driven by crude oil sales to the U.S., will continue to grow. BiC

TOC

Page 1 - Searching for a Leading Indicator to Future Performance of Calgary’s Office Markets?

Page 4 - BOMA Insider Page 6 - Up Close with BOMA’s Lloyd Suchet Page 8 - A Shopper’s Paradise Abounds in Calgary

NEWS SUMMER 2015

Searching for a Leading Indicator to Future Performance of Calgary’s Office Markets?

M

A Close Look at Sublet Available

uch like the canary in the coal mine in the early 20th century, sharp increases in the amount of office space available for lease on the sublet market is often viewed as a key leading indicator of danger. Noticing that your canary had died meant you had better get above ground fast before you died, too.

As early warning systems go, this may have been much better than nothing, but still had material drawbacks.

During the past seven months, the amount of office space available for lease on the sublet market in Calgary’s

central core class A buildings has leapt from 646,819 square feet or 2.8 per cent in October 2014 to 1,515,840 square feet or 6.6 per cent of the total inventory today.

The current conditions nearly parallel those of July 2009 when 476,108 square feet or 2.6 per cent of the total inventory was sublet available. Only nine months later in March 2010 sublet peaked at 1,406,350 square feet or 6.7 per cent of total downtown central core class A inventory. As the chart below shows, the amount of space available for lease on the sublet market climbed very All data current as at 19 April, 2015.

By Sandy McNair

1

BOMA Calgary News

BOMA Calgary News is a co-publication of BOMA Calgary and Business in Calgary.

Business in Calgary

1025, 101 - 6 Ave. SW, Calgary, AB T2P 3P4 Tel: 403.264.3270 • Fax: 403.264.3276 info@businessincalgary.com www.businessincalgary.com

BOMA Calgary

120, 4954 Richard Road SW, Calgary, AB T3E 6L1 Email: info@boma.ca • Web: www.boma.ca Tel: 403.237.0559 • Fax: 403.266.5876

Communications Committee Leah Stewart, Chair, Sizeland Evans Interior Design Carly Chiasson, Vice-Chair, Bee-Clean Building Maintenance Kim Wiltse, 20 VIC Management, Inc. Serah Nguyen, Bentall Kennedy Rita Reid, Artis REIT Jesse Buhler, Artis REIT Giovanni Worsely, MNP LLP Aydan Aslan, BOMA Calgary

Board of Directors

CHAIR Ken Dixon, Strategic Group CHAIR-ELECT Chris Nasim, GWL Realty Advisors SECRETARY TREASURER Lee Thiessen, MNP LLP PAST CHAIR Chris Howard, Avison Young Real Estate

Directors

Dustin Engel, Alberta Infrastructure Loy Sullivan, 20 Vic Management Steve Weston, Brookfield Properties Richard Morden, Bentall Kennedy (Canada) LP Corrine Jackman, Hopewell Real Estate Services Jay de Nance, Fairfield Commercial Real Estate Inc. Steve Walton, Oxford Properties Group Todd Throndson, Avison Young Guy Priddle, Cadillac Fairview

The Building Owners and Managers Association of Calgary publishes BOMA Calgary News quarterly. For advertising rates and information contact Business in Calgary.

Publication of advertising should not be deemed as endorsement by BOMA Calgary. The publisher reserves the right in its sole and absolute discretion to reject any advertising at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA Calgary, its members or its staff. © 2015 by BOMA Calgary.

Printed in Canada.

sharply in 2009/2010 (three quarters) and then again in Q4 2014/Q1 2015 (even faster in only two quarters). The decline in Q2 2010 through Q2 2012 (nine quarters), all the way down to a tiny 40,372 square feet or 0.2 per cent of total inventory was almost as dramatic. While some of this space was leased to new tenants, much of it was taken off the market and retained by the initial tenant.

Even with a canary in hand, there is no way to know if sublet has peaked today or if the eventual decline in sublet will be as sharp or as dramatic as it was in the previous cycle.

Taking a deeper look at the dynamics within the current sublet market begins with understanding the number of big blocks of space, the term remaining and the age of the buildings with sublet space. The five buildings with the most sublet space available range from 229,000 to 95,000 square feet in each building which totals 726,159 square feet or 47.7 per cent of the total sublet available in the downtown central core class A market. The next 15 buildings contain 40.4 per cent of the total sublet available space and the remaining 27 buildings contain only 11.9 per cent of the total available sublet space. As Canada’s energy industry has matured the big firms have become bigger resulting in a more fragmented office market where the pressure is more concentrated on a smaller number of buildings rather than distributed evenly across the entire downtown central core class A market.

Looking more specifically at the five largest blocks of sublet space available, the remaining terms on the leases are two years, four months; four years, nine months; seven years, seven months; nine years, nine months; and 10 years, five months from today. Four of these large spaces are located in nearly new buildings, completed between 2005 and 2010. Given the long terms remaining on these subleases (an average of seven years) the pressure is felt less by the owners and managers of these buildings and more by everyone else in the market who is trying to lease any space in the market, be it direct or sublet, under construction, nearly new or pre-2000 vintage. In other cycles, typically the sub-landlords have been willing to discount rents in order to obtain some recovery. However, if the outlook for energy prices improve, we have seen in other cycles some of these sub-landlords retain the space for their own use and retract it from the sublet market. Business confidence and the outlook for future energy markets have a material impact on tenants’ office leasing behaviour and leasing velocity.

Another source of pressure is from buildings that are currently under construction. Currently seven office buildings containing four million square feet are under construction in downtown with 942,022 square feet remaining to be leased. These buildings will be completed between 2015 and 2018.

These new spaces will be competing with all of the other options including the larger blocks of sublet space available.

Significantly not all of the direct or sublet space currently being marketed is immediately available. Some spaces are not available until a new office building is completed or a major energy project is completed. So far we have only looked at downtown central core class A buildings. Looking at all classes of office buildings across all of Calgary, there are currently 268 sublet spaces available in 127 buildings with a total of 3.2 million square feet of sublet space available.

Much like the canary in the coal mine, a rapid increase in sublet space available signals an increase in danger, but it does not provide very much lead time for office building owners and managers to protect themselves.

Operational excellence and tenant engagement continues to play a key role in successful commercial real estate investing and management.

SANDY MCNAIR IS THE PRESIDENT OF ALTUS INSITE, A DIVISION OF ALTUS GROUP. SINCE 1997 ALTUS INSITE HAS CONDUCTED MORE THAN 1.8 MILLION TENANT SATISFACTION SURVEYS FOR MANY OF CANADA’S LEADING OFFICE BUILDING OWNERS AND MANAGERS. SANDY.MCNAIR@ALTUSINSITE.COM | WWW.ALTUSINSITE.COM

2

3

BOMA Insider Welcome New BOMA Member Companies!

Lawson Projects, Bruce Yorga Stephenson Engineering, Johnson Leong McCuaig & Associates Engineering – Bruce Byun

Extreme Quality Restoration – Rick Canfield

Golf Classic Co-Title Sponsor

National Music Centre – Lee Mayne Epic Group – Lance Merrifield

New Member Companies; L-R, Graham Halsall, Energy Profiles; Hugh Roberts, Snap Cab; Brendan MacFarlane Revive Pipe and Restoration; Aydan Aslan, BOMA Calgary

New Member Companies; L-R Ken Dixon, BOMA Board Chair, Andrea Wenz, Davignon Architecture & Interior Design; James Zolkavich, MSZ Restoration & Contracting; Trevor Johnson, Innocapital Corporation; Sheldon Racz, Rocky View County; Lloyd Suchet, BOMA Calgary

Calgary Flames President & CEO Ken King at the BOMA March Luncheon.

(L-R) Lee Thiessen, Todd Throndson, Ken King, Ken Dixon, Steve Walton

Todd Hirsch, ATB Economist, at the BOMA April Luncheon.

(L-R) Lloyd Suchet, Todd Hirsch, Ann Loewen, Aydan Aslan, Ken Dixon, Bill Sharpe

4

BOMA Calgary 50th AGM, Chris Nasim, Chair-elect

BOMA Board of Directors at the BOMA Calgary’s 50th Anniversary Reception.

(L-R) Steve Weston, Lee Thiessen, Lloyd Suchet, Richard Morden

BOMA group volunteered at the Calgary Drop-In Centre in April

BOMA Board of Directors at the BOMA Calgary’s 50th Anniversary Reception.

(L-R) Jay De Nance, Dustin Engel, Lloyd Suchet, Aydan Aslan, Ken Dixon

BOMA Members at the Ski Day. (L-R) Graham Halsall, Lloyd Suchet, Michel Luhnau, Randy Yee, David Taguchi

|

|

BUILDINGS

BUILDINGS

|

|

(L-R) Ronay Shelton, Maglin; Aydan Aslan, BOMA Calgary; Victoria Shearer Gryffyn , i-Level Design

CIVIL INFRASTRUCTURE

CIVIL INFRASTRUCTURE

|

|

SPECIAL PROJECTS

SPECIAL PROJECTS

|

|

TOGETHER

TOGETHER WE BUILD WE BUILD SUCCESS. SUCCESS.

Glacier Skywalk

Glacier Skywalk

We are construction partners who are passionate about what we do and about creating successful outcomes for our clients

We are construction partners who are passionate about what which lead to our mutual success.

we do and about creating successful outcomes for our clients We look the immediate project needs to see which leadbeyond to our mutual success.

the bigger picture: to understand your business goals,

We look beyond the immediate project needs to see share your vision of success and work tirelessly

the to understand your business goals, tobigger exceedpicture: your expectations. share your vision of success and work tirelessly to exceed your expectations.

2014 BOMA Canada National Pinnacle Award - Customer Service

403.263.8170

www.SerVantage.ca

Watch us build at PCL.com

5

By Lloyd Suchet, Executive Director, BOMA Calgary

Up Close with BOMA’s Lloyd Suchet Interviewed by Leah Stewart, Chair, BOMA Communication Committee

L

loyd Suchet was appointed as the executive director of BOMA Calgary in March, 2015. After growing up in Regina, Suchet’s educational and professional experience took him from Edmonton to Ottawa to Calgary. He brings experience as a former political aide to a member of parliament and a federal cabinet minister and was a policy researcher at the University of Calgary School of Public Policy. Suchet now makes sure Calgary’s commercial real estate industry has a voice at every level of government in Alberta.

1. Why does this particular line of work interest you? How did you get started?

Like many people I sort of “fell into” BOMA and commercial real estate. My past experience is in the government and academic research, so when BOMA decided to hire a staff person to lead their advocacy and government affairs files it was a natural fit.

2. How did your previous experience prepare you for this role?

You might refer to them as clients in business, or voters in politics, but it always exists. In government, the way we approached governing was to create and support initiatives that delivered value to Canadians. While we communicated with voters and stakeholders frequently, every four years or less they told us how they felt about it in elections. BOMA is no different in that we are accountable to our members, and therefore everything we do seeks to maximize the value of membership to them. We constantly seek our member’s feedback, but at the end of the day they give their final verdict in their decisions to renew their membership or not. So the lesson I have learned that I bring with me to BOMA is that you need to constantly engage with members with the goal of staying relevant and providing that value for membership.

I’ve also had the advantage of working for a number of great bosses, so I had a solid understanding of my own management style and how to best motivate staff towards our shared goals.

No matter where you work, you likely have some identifiable stakeholder who you are accountable to.

What sets us apart?

SAIL SHADES

Sail shades engineered to withstand the wind, the rain, the snow, and even, the sun.

403.245.3371 6

3. What do you enjoy most about the BOMA community?

This one’s easy – the people. And I like the term “community” because that is definitely the way it feels at any BOMA event. What I’ve noticed since starting at BOMA nearly two years ago is that members really have a sense of shared purpose in promoting the industry as a whole. They give up their time not just to gain experience, but because they believe in what BOMA is doing. So when a group of people dedicate themselves to this shared purpose it is no surprise that a real community atmosphere emerges, and the energy it creates is contagious to me and I hope others.

Dream believes in better communities to live in and work in. Our goal is to be Canada’s top real estate investment, development and management company.

4. What is the most rewarding part of your job?

The most rewarding part of my job is hearing from members that this program or that session helped them in doing their jobs better. That is the type of value for membership that we are constantly striving for. I certainly wouldn’t presume we do everything right all the time, but it is hearing those personal success stories that makes our jobs personally rewarding as staff.

5. What is your five-year vision for BOMA Calgary?

BOMA Calgary just had the benefit of going through a strategic planning process that engaged a wide range of our volunteers and leadership on where BOMA Calgary should be focusing its priorities. The short version is that BOMA should be focusing on advocacy, education and professional development, BOMA Building Environmental Standards (BOMA BESt), and networking. If we focus on those four things and do them well, BOMA Calgary will grow and thrive. This will be achieved through more effective and coordinated committees, and through strategic partnerships with other associations, stakeholders, as well as BOMA Canada and other local BOMA associations. BOMA Calgary’s committees have already refocused their work plans and will be expected to show measurable results towards the strategic plan goals. Our vision is to be the valued source of knowledge and leadership for commercial real estate, and this plan will help us get there.

6. How long have you lived in Calgary?

I’ve been in Calgary for nearly four years now, via Ottawa and Edmonton, but like many Calgarians I was raised in Saskatchewan. Mayor Nenshi actually makes this point often, but my favourite thing about Calgary is that it is as close to a true meritocracy as we have in Canada. Hard work and an entrepreneurial spirit are valued above everything else, and our industry is rife with examples proving this point.

I’m also an avid snowboarder, hiker and fly fisherman so I’d be remiss if I didn’t mention the beauty of this area’s natural environment and the quality of life it affords all Calgarians.

dream.ca 7

By David Parker

Serving Alberta since 1985

General Contractors and Project Managers

www.akelaconstruction.com 8

I

A Shopper’s Paradise Abounds in Calgary

t was a bit of a squeeze to get through to the BOMA networking function at Township 24 in Bow Valley Square because the bar was packed – and that was at 4:00 in the afternoon. And walking a little later along 8th Avenue Mall it seemed like every restaurant/bar was full of people enjoying an $8 beer and a $15 hamburger.

This city is a humming in both the restaurant and retail industries.

And the warmer weather is bringing out many more pedestrians on the mall – until the bikes arrive at least – to wander those bars and stores that stretch from city hall to 8th Street SW. I wonder if there is another city with so much current expansion going on?

Doesn’t seem long since we were wondering if Deerfoot Meadows would be a reality? If the planned expansions at Chinook Centre and Market Mall would be able to attract enough new shops? Yet today there are many more shopping centres and strip malls working on development or big expansion projects throughout all areas of the city.

One of the most welcome will be the coming of retail into East Village; especially a grocery store on the former Calgary Police Association block that will serve a wide audience from Bridgeland to Inglewood as well as downtown.

But people living in the core can also look forward to seeing – at last – the redevelopment of Eau Claire Market that is inching its way through departments at city hall.

People living in the deep south

have no worry of where to buy groceries. Shepard Regional Centre has nine food stores and Seton, already sporting a Save-On, will soon have a Real Canadian Superstore.

Retail was also a while getting off the ground in CrossIron Mills but is bustling today with shoppers making the quick trip from Calgary’s northern districts along the sohandy Stoney Trail. Deerfoot Mall was never a huge success but new owner Shape Properties is promising a new name, Deerfoot City, and a pedestrian-friendly re-merchandising of the centre.

Also on the north side of the river, look for a complete change to come to Northland Village Mall. Anchored north and south by Best Buy and Walmart the mall itself will not be recognizable when improvements are made. Same with Stadium Shopping Centre that has been a long time under review but will eventually be reborn into a classy new venue.

The four new highrise condos in Brentwood have already affected Brentwood Village Mall somewhat and watch for the Co-op to be totally revitalized, including a new larger grocery store, gas station and liquor store.

Over on the west side I was excited to see the plans for the lands across the highway from Canada Olympic Park and off one of the city’s most affluent corridors, 85th Street SW, to be redesigned with a Main Street stretching eastwards from 85th to 81st, providing locations for more high-end retailers.

Calgary is a shopper’s paradise; so let’s spend our dollars here.

The Outsourced HR Department Wendy Ellen Inc. is the HR Answer for Small and Mid-sized Companies

Photo by Jager & Kokemor Photography.

By Rennay Craats

W

hat a difference a decade makes. Ten years ago, Wendy Giuffre hung out her shingle as a one-person consultant business brokering group benefit programs to small and mid-sized businesses in Calgary. Now she’s celebrating her 10-year anniversary in Wendy Ellen Inc.’s new beltline offices alongside her growing team of human resources consultants.

Wendy Giuffre (third from left) and her growing team of human resources consultants at Wendy Ellen Inc.

The success and growth her company has enjoyed has been truly organic, rising from the realization that there was a definite need for HR expertise in the marketplace merging with her experience and drive to fill that void. With 16 years as an in-house HR specialist for a major oil company and then nine years consulting in all areas of HR as an independent consultant, Giuffre was in the perfect position to help move small and mid-sized companies forward.

Over the past 10 years, she and her dedicated staff of seven consultants and coaches have done just that — they have helped approximately 100 companies across varied industries in Alberta, British Columbia and the United States become more successful by providing them with a variety of HR services.

Wendy Ellen Inc. | 10 Years | 1

77

Photo by Jager & Kokemor Photography.

“Basically, we are like an outsourced HR department,” Giuffre says. “We can be there for the full lifecycle of the employee from the hiring process through to development and engagement and ending with the exit strategy. We focus on the whole gamut of the people side of the business.”

Depending on the size and requirements of the company, which usually ranges from 5 to 100 employees, this ‘people side’ can involve any combination of the specialized services available at Wendy Ellen Inc. Smaller companies benefit greatly from outsourcing efficient and timely professional payroll processing services. This way they are ensured that their practices adhere to all confidentiality and compliance requirements without the extra cost of devoting an in-house staff member to handling the job. With benefit options to fit every budget and employee need — whether traditional insured plans or flexible and blended benefit plans — Wendy Ellen Inc. offers individual and group benefits management consulting to help employers navigate the potentially convoluted waters of company benefits.

Wendy Giuffre

“Basically we are like an outsourced HR department.

We can be there for the full lifecycle of the employee from the hiring process through to development and engagement and ending with the exit strategy. We focus on the whole gamut of the people side of the business.” ~ Wendy Giuffre

Larger companies avail themselves of Wendy Ellen Inc.’s expertise in these areas as well, but many also look to Giuffre for help in further developing and growing their businesses. The firm offers extensive leadership and management coaching to help clients build on their strengths and work through shortcomings in order to be more effective in the workplace.

Recruitment is another key area in which Wendy Ellen Inc. is helping clients build their businesses. “Our HR consulting often involves how to attract and keep your people, and then how to be competitive and develop within your organization,” Giuffre says. “We do individualized recruiting at a much lesser rate than the big houses.”

The firm’s consultants view their clients as partners, so entrusting Wendy Ellen Inc. with their recruitment needs is a natural progression. “We focus on the culture of the company and we make a point of getting in there and getting to know the people,” she says.

Consultants get to know their client’s companies well, and therefore have a clear idea of whom the best candidates are for job openings. Then they recruit and pre-interview prospective employees to vet the individual so their clients only meet the candidates that are best suited for the position.

Wendy Ellen Inc. can effectively build a client’s business by adding the right people into the mix while lifting the time commitment and burden of the hiring process from the client’s shoulders.

While in an upturn market, clients are focused on hiring and retaining staff, in an economic downturn like what Calgary is currently experiencing, the focus can switch for HR professionals. Giuffre and her team are now faced with assisting their clients with how to properly exit employees from an organization.

Wendy Ellen Inc. | 10 Years | 2

“It’s good when the owners and managers take the time and spend the money to do it right, both for them and their employees,” Giuffre says.

Wendy Ellen Inc.’s transition services help clients ensure they are handling this delicate part of business properly while offering a career counseling program (which includes resume preparation, career planning and interview coaching) to assist in transitioning someone to their next job.

Wendy Ellen Inc. provides a comprehensive menu of quality services and tailors them specifically to the unique needs of each client. In fact, it is this attention to the individual needs of clients that has made Wendy Ellen Inc. such a well-respected firm and a leader in the field. Giuffre and her experienced consultants aim to simplify the process of creating and implementing HR practices, which sometimes requires some out-of-the-box thinking — and this fits with Wendy Ellen Inc.’s mission to a tee.

“We’re grassroots and highly collaborative. Communicating face-to-face with employees and management with as little policy and bureaucracy as possible is what we strive for,” Giuffre says.

The Wendy Ellen Inc. consultants spend a great deal of time off-site at client locations to facilitate this personal relationship and are available for whatever clients may need, whenever they need it. This 24/7 commitment ensures that outsourced HR isn’t a faceless entity for these clients and it keeps Giuffre’s team in touch with the corporate climate and evolving needs.

And needs are growing, especially in a location like Calgary. The strong entrepreneurial spirit of the city means there are many small and mid-sized companies that can’t support an HR department of their own but recognize the importance of proper hiring and HR practices. These companies look to firms like Wendy Ellen Inc. for the professional and knowledgeable support of an external HR team.

Wendy Ellen Inc. | 10 Years | 3

The strong entrepreneurial spirit of the city means there are many small and mid-sized companies that can’t support an HR department of their own but recognize the importance of proper hiring and HR practices.

A national leader providing group insurance products and services

There are more than 10 reasons we think you are awesome — but your ten years in business certainly makes the list.

Congratulations on a decade in business! bbd.ca | 800.668.2295

“I’m always accepting new work and am able to accommodate with my consultants to fit the bill. I have a really strong team and that’s what makes me successful,” Giuffre says.

Her success is due in large part to her consultants’ high level of skill and experience but it speaks to the philosophy of Wendy Ellen Inc. as well. The consultants are flexible and responsive in how they work with clients and are invested in their clients’ success. They are true partners, forging strong connections between clients and consultants.

After all, at the end of the day, Giuffre and her staff want to help create for their clients a corporate culture that promotes employee engagement and retention through their initiatives and support.

“We want your employees to love to come to work for you so we really try to focus on what works for your business.” ~ Wendy Giuffre

“We want your employees to love to come to work for you so we really try to focus on what works for your business,” she says.

For the past 10 years, Wendy Giuffre and her team of HR professionals have provided practices and advice to clients to manufacture the best work environment for employees while taking care of the HR needs of the employer. Giuffre and her team know what works for businesses, and they look forward to providing quality service for decades more to come. •

www.wendyelleninc.ca | 1-855-QUESTHR (783-7847)

Wendy Ellen Inc. | 10 Years | 4

The public business of rounds played • Golf

The Public Business of Rounds Played Calgary’s six public golf courses

BY JOHN HARDY

C

algary golfers, like golfers putting around the world, spend a lot of time on the game and their swing, often taking the course for granted.

It’s understandable because – from Shaganappi and Springbank Links to Confederation Park, Priddis Greens and McCall Lake – it’s fairways, greens, bunkers, holes. Like a familiar and comfy pair of old shoes, it’s just there.

But whether it’s a familiar course, the favourite course, a home course or just a course that’s convenient, closest to home or where friends play, Calgary golf courses – private or public – are complex and challenging projects and mostly efficient and successful local businesses.

On the 260 acres of McCall Lake, the 130 acres of Springbank Links, the 135 acres of Shaganappi, the 177 acres of Maple Ridge and on the other popular Calgaryarea golf courses, they have three things in common: they involve a lot of people doing a lot of work; they are all self-sufficient businesses; and they are all taken for granted.

Thanks to infamous and unpredictable whims of Calgary weather (like last year’s mid-September snow) and aside from other courses in locations like La Crete, Peace River and Grimshaw, Calgary golf courses can offer some of the shortest golf seasons in Canada.

Golf course basics are playing the game on three-, fourand five-par holes but the strategic layout of most golf courses tries to accommodate the low handicap, the high handicap and the lovable weekend warrior. And on most courses, the length of the fairway, the condition of the grass, the placement of the bunkers, the slope of the green, the placement of the holes and the rest of the course conditions are, give or take, standard.

Some golfers insist that the way a course or an individual hole is laid out can and does impact the golf that is played on it.

From the tees, along the fairway, the area between the fairway and the out-of-bounds markers (the intentional rough) where the grass is cut higher and is generally not a great place to hit from to the neatly trimmed greens and the quality of the grasses that often influence the roll of the ball as well as the ability of the player to take a divot.

And yes, despite how random it may seem, the placement of water hazards and bunkers have a method-to-themadness purpose. Designers explain that it adds to the game by requiring golfers to think their way around the course, instead of just hitting the longest ball they can.

The putting green is the area of truth: very closely trimmed grass on relatively even, smooth ground surrounding businessincalgary.com | BUSINESS IN CALGARY June 2015 • 81

The Public Business of Rounds Played • Golf

The spectacular Calgary view from Shaganappi Point.

Happy Birthday, Shaganappi Point!

In malls, on C-Trains, light poles and all over town, there are banners and signs as historic reminders and deserved bragging rights about 100 Years of Golf at Calgary’s Shaganappi Point Golf Course.

Business in Calgary dug for some other tidbits of Shaganappi Point history.

Before designated as a golf course, Shaganappi was the Town of Calgary’s cemetery (all remains were relocated to Union Cemetery by 1892).

• The location was also considered at one time as a possible site for city hall.

• The golf course development started in 1915 and catered to about 80,000 Calgarians who lived in the area.

the hole, allowing players to make precision strokes. The hole (or cup) on the green has a regulation diameter of 108 millimetres (4.25 inches) and a depth of at least 10 centimetres (3.94 inches).

Some casual golfers aren’t aware that a hole’s placement is not fixed and is regularly changed by the greens crew, mostly to prevent excessive localized wear and damage to the closely trimmed turf.

82 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

• Construction costs were $637.26. The first-year revenues were $420.

• Only the 105-year-old Calgary Golf and Country Club is older than Shaganappi.

• Shaganappi is one year older than the Centre Street Bridge.

• Shaganappi Point is the second oldest municipal course in Canada (next to Victoria Golf Course in Edmonton).

• Shaganappi doubled as a downhill ski slope in the 1940s.

• The majestic, big willow tree (Willowmena) has been protected and officially designated as an “Alberta Heritage Tree.”

What most golfers rarely consider is that, aside from “the look” of their favourite Calgary golf course and making enjoyable games happen, from the maintenance, co-ordinating the crews, staffing and payroll, accounting and growth strategy, Calgary golf courses are terrifically managed and efficient businesses. Private courses have membership fees and other dues but “rounds played” is the lifeline and the main revenue stream in the business of Calgary golf courses.

The Public Business of Rounds Played • Golf

As random examples, there were 25,000 rounds played last year at Springbank Links, according to general manager Kevin Heise. “We were happy with this end result because spring 2014 was so cold, wet and miserable, [plus] the sudden snow in September, but we had a great summer and managed to golf late, almost up to Halloween which is more than two weeks late for us.”

The two courses of Priddis Greens had 49,692 rounds played in 2014.

The six Calgary public courses – Confederation Park, Lakeview, Maple Ridge, McCall Lake, Richmond Green and Shaganappi Point – hosted a combined 236,000 rounds played with an impressive 70,000 rounds played just at Calgary’s historic and popular Shaganappi Point.

According to rounds played stats, Shaganappi by far the busiest public course, Maple Ridge is close second and Confederation Park is third.

Everything that it takes to keep Calgary’s public golf courses viable and enjoyable are the job description and passion of Kyle Ripley, the affable and multitasking manager of golf course operations with the City of Calgary’s recreation department.

“On a central level we treat all six public courses as one operation and we manage the system centrally, broken down into clubhouses and grounds organizations. We have 160 Calgary golf staff and a terrific complement of 320 volunteers. Each course has its own superintendent and staff and of course the day-today issues and things like scheduling of crews and maintenance matters are dealt with at the individual course level,” Ripley explains.

The city is not involved in most aspects of golf course operations other than a mandate that most

Calgarians don’t realize. “Despite the very common but false assumption that the city has a subsidy for its public courses, the only city involvement is the mandate that the public courses function on 100 per cent cost recovery. And we do!”

“We do have a golf course management advisory committee, with representatives of player groups and men’s and ladies’ clubs, [that] meets quarterly or more often and discuss many operational aspects of the six courses. They do not set rules but deal with issues like the recent modification of fee structure.”

Ripley explains that the City of Calgary positions itself emphasizing golf for families and seniors but the overall, annual budget of the six public courses is $10 million and virtually all costs are offset by fees for rounds played.

“Greens fees used to be $9.70 a round. It was an incredible deal but not sustainable as a business plan for six courses that must pay for themselves.”

“On the recommendation of the committee, we revised our fee structure to include a discount system (100 rounds for $1,960), a frequent loyalty program, discounts to drive our off-peak times and up to 65 per cent discount for seniors. ”After all, we are 100 per cent cost recovery. We must pay our own way,” Ripley smiles. “And we are a very efficient, rub-every-nickel-twice operation.” BiC

Kyle Ripley, manager of golf course operations with the City of Calgary recreation department. businessincalgary.com | BUSINESS IN CALGARY June 2015 • 83

Recently announced...

Thank you.

Thank you.

Thank you.

Announced March 10, 2015

Announced February 2, 2015 Announced March 10, 2015

designed by

com pik.

Free

2332–23 Street NE, Calgary

TF: 1•877•756•8349 3660–50 Avenue SE, Calgary TF: 1•877•753•8765

Leading Business JUNE 2015

Photo by Jay Russell

[title] • [section]

IN THIS ISSUE...

• Policy Bites: Eliminating Unnecessary Border Re-Inspections on Canadian Meat Exports into the U.S. • Chamber member Spotlights • Upcoming Events

CalgaryChamber.com businessincalgary.com | BUSINESS IN CALGARY June 2015 • 85

2015 Board of

Directors Executive Chair: Rob Hawley, Partner, PricewaterhouseCoopers LLP

Policy Bites

[title] • [section]

Eliminating Unnecessary Border Re-Inspections on Canadian Meat Exports into the U.S.

Immediate Past Chair: Leah Lawrence, President, Clean Energy Capitalists Inc. Chair Elect: Denis Painchaud, Director, International Government Relations, Nexen Inc. Second Vice Chair: David Allen, President, Calgary Land, Brookfield Residential Properties Inc. Vice Chair, Finance: Bill Brunton, Chief Communications Officer, Calgary Board of Education CEO: Adam Legge, President and CEO, Calgary Chamber

Directors David Allen, President, Calgary Land, Brookfield Residential Properties Inc. Carlos Alvarez, Audit Partner, KPMG Lorenzo DeCicco, Vice-President, TELUS Business Solutions Rob Hawley, Partner, PricewaterhouseCoopers LLP Wellington Holbrook, Executive Vice-President, ATB Financial Phil Roberts, Director of BD & Marketing, Vintri Technologies Linda Shea, Senior Vice-President, AltaLink Mike Williams, Executive Vice-President, Corporate Services, Encana James Boettcher, Chief Idea Officer, Fiasco Gelato Brent Cooper, Partner, McLeod Law LLP Management Adam Legge – President and CEO Michael Andriescu – Director of Finance and Administration Kim Koss – Vice President, Business Development Scott Crockatt – Director of Marketing and Communications Rebecca Wood – Director of Member Services Justin Smith – Director of Policy, Research and Government Relations Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary Calgary Chamber 600, 237 8th Avenue S.E. Calgary, Alberta T2G 5C3 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com

C

anada’s meat exports have grown significantly over the past 15 years. The meat industry is Canada’s largest food industry, bringing in $21.4 billion and employing 67,500 people. The U.S. is Canada’s largest meat export market, however delays due to re-inspection of Canadian meat products at all Canada/U.S. border crossings are costing the Canadian meat industry serious time and money. With 28,000 trucks carrying 560,000 tons of Canadian meat across the border each year, these delays, if not dealt with, will have a serious effect on the Canadian meat industry’s ability to stay competitive.

Food that has been produced under the regulatory systems in both Canada and the U.S. are some of the safest in the world. All Canadian meat being exported to the U.S. is inspected by Canadian Food inspection agents to the same standard, and using the same guidelines followed by U.S. health officials.

Despite these thorough inspections, every Canadian meat truck that hits the Canada/ U.S. border is being subjected to unnecessary product re-inspection. If the inspection process of Canadian meat products meets the same quality standards as meat being inspected in the U.S., then why are Canadian meat products being inspected again when it hits the Canada/U.S. border? Redirecting Canadian meat trucks to U.S. inspection centres delay shipments, introduces product marketing risks and costs Canadian meat processors upwards of $3.6 million a year in fees, which are charged every time a shipment is reinspected. Furthermore, and perhaps worst of all, these re-inspections are nearly useless given that the meat products are already packaged. In fact it exposes them to possible heightened risk of contamination.

In addition, re-inspection centres waste time, fuel and cause extra wear and tear on vehicles through additional mileage being used. Every driver loses two to four hours of driving time at a re-inspection centre, costing the Canadian meat industry additional money.

In February 2011, Prime Minister Harper and President Obama announced support of a Joint Action Plan called “Beyond the Border,” which was developed to accelerate the flow of goods and services across the Canada/U.S. border. As part of this plan, a pilot review project was created to review and identify any policy adjustments that could be made to ease regulatory inefficiencies, specifically in the area of Canadian and American meat exports. This project works as a road map in the hopes of alleviating unnecessary regulatory delays of Canadian meat products at the Canada/U.S. border.

Agriculture remains a growing sector and a huge contributor to the Canadian economy.

By 2020, Canada is forecast to be one of only six net food exporting nations, with the bulk of those exports coming from Alberta and Saskatchewan. It is important that the right practices and policies are in place to ensure this industry continues to thrive. The Calgary Chamber continues its strong advocacy for the agriculture sector and will be taking this issue forward to the federal government to ensure that the re-inspection issue is dealt with and that this review project identifies cross-border re-inspection as a problem area.

86 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Chamber Member Spotlights

[title] • [section]

The Calgary Chamber is proud to represent many Calgary businesses large and small; this month we are highlighting some of our industry leading members.

Harper’s Tire Harper’s Tire is a longtime supporter of the Calgary Chamber and is celebrating 71 years of membership this month. Selling tires for any vehicle make and model, Harper’s Tire is a premier tire service company that has been serving customers in southern Alberta for the past 84 years. In addition to tires, Harper’s Tire also provides mechanical and maintenance service. With 22 bay facilities between their two locations, Harper’s Tire provides prompt, efficient and cost-effective service.

For more information visit HarpersTire.com

Thanks The Chamber thanks the following long standing member companies for their years of support to the Calgary Chamber, and their commitment to the growth and development of Calgary.

Member name

Bayer CropScience After 150 years, Bayer continues to fulfil its mission of “science for a better life” through its core competencies in the fields of health care, agriculture and high-tech materials. Bayer CropScience, the subgroup of Bayer AG responsible for the agricultural business, is one of the world’s leading innovative crop science companies in the areas of seeds, crop protection and non-agricultural pest control.

Headquartered in Calgary and well represented with hands-on, local expertise across the country, Bayer CropScience Canada remains a leader within the crop production industry through its innovation, people and expertise.

For more information visit BayerCropScience.ca

Years as a member

Harpers Tire (1931) Ltd.

71

Brunel Commercial Interiors Inc

35

C.H. Robinson Project Logistics Ltd

30

Cal-Alta Auto Glass

10

Cash Connection

10

Dreco Energy Services

10

Manchester Properties Inc

10

ATCO Energy Solutions Ltd.

5

ATCO Ltd.

5

Enerplus Corporation

5

Riverwood Photography

5

Roke Technologies Ltd.

5

Gordon Food Service® Gordon Food Service is a food service distributor delivering excellence, expertise and quality products to customers coast-to-coast in Canada. The Calgary operation services 3,000 customers in southern Alberta, with over 12,000 items for the restaurant, hotel and institutional trade. Gordon Food Service began serving customers in 1897 and entered the Canadian market in 1994. The 2001 purchase of Bridge Brand, a 70-year-old, family-run business, allowed Gordon Food Service to enter the southern Alberta market. Gordon Food Service continues to grow and will soon move into a new, state-ofthe-art, 290,000-square-foot facility.

For more information, visit GFS.ca. businessincalgary.com | BUSINESS IN CALGARY June 2015 • 87

Upcoming Events

[title] • [section]

For details and to purchase tickets for any of the Calgary Chamber’s events, please visit CalgaryChamber.com.

Monday, June 29, 2015 Leaders Classic Golf Tournament - Presented by TELUS Earl Grey Golf Club – 6540 – 20 Street SW It’s hard to find a better place to build, deepen and strengthen business relationships than on the golf course. Where else would you have the opportunity to network and share business tips with some of the most influential business and political leaders in our city, other than the Chamber’s annual Leaders Classic Golf Tournament? Attracting the top business and political leaders, as well as special guest celebrities, this tournament is really about high-level networking at its finest. Join us and other top business professionals for Calgary’s most prestigious business golf tournament.

Contact events@calgarychamber.com to register.

Friday, July 3rd, 2015 Calgary Chamber Stampede breakfast 7:30 a.m. – 11:30 a.m.

They say some of the best business deals in Calgary are during Stampede, so mark your calendar for the Calgary Chamber’s annual Stampede breakfast. More details will be posted shortly on CalgaryChamber.com. A limited number of seats will be available, which also include premium parade bleacher seating, so get your tickets soon!

Contact events@calgarychamber.com to register.

Sponsorship opportunities with the Calgary Chamber

Whether you are looking to build your company’s brand and presence, attract your target market, leverage lead development or position yourself as a community leader, the Calgary Chamber is the perfect platform to grow your company’s influence in Calgary’s business community.

With over 60 keynote and political events per year to choose from, your brand has the potential to reach over 10,000 Calgary business leaders from a wide variety of industries. We have many event focus areas to enhance your company’s exposure and give you greater impact for your sponsorship investment. The Chamber’s wide range of events allows you to easily align the strategic issues of your business with community development.

As every company’s goals are different, you will work closely with our sponsorship department to tailor a package that addresses either your company’s short-term, or long-term objectives, and enhance your marketing strategy.

Our events are highly publicized and often have local, national and even international coverage. Position your company as an innovator, leader and raise the profile of your organization through Calgary Chamber sponsorship opportunities.

Contact Paige Ross, sponsorship coordinator, at pross@calgarychamber.com for more details.

88 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

THE MEETINGS AND CONVENTIONS INDUSTRY IN CANADA TODAY Part 2 of an interview with Rod Cameron Executive Director of the Convention Centres of Canada.

Cities across Canada are investing in expansions and upgrades to existing convention facilities to adapt to increasing competition and the rapidly changing demands of the global marketplace. Clients today are more discerning in their venue selection and seek locations that will provide substantial support to their organization, demonstrate excellence in service, offer the latest in technological services, and facilities that can adapt quickly and seamlessly to any required changes.

Rod Cameron, the Executive Director of the Convention Centres of Canada and the Executive Director of the International Association of Convention Centres, says that the Canadian meetings and conventions industry is doing well in comparison to many other parts of the global industry. The relative stability of the Canadian economy during a tumultuous period in international finance contributed to the ongoing success of Canadian venues during this time and created a momentum that has carried through into 2015 when Canada is facing some economic challenges of its own. However, Canadian centres still need to be able to compete in the face of growing customer expectations.

Over time, Canadian centres were typically more market-diversified than their counterparts in many other parts of the world, including paying more attention to the international market. That meant they were better equipped to manage a downturn in any one market or sector as a slump in one area could be compensated for by increasing business from others. Most Canadian venues now have clients from a diverse range of industries and operate a broad geographic approach to developing business.

appeal (international airport, attractive surroundings, good proximity to accommodation). But, as Cameron points out, any destination these days can only remain competitive in the facility marketplace if there is the ongoing investment required to respond to the changing needs and expectations of clients.

There are new developments in several Canadian cities including Vancouver, Winnipeg and Halifax that are attracting clients with expanded venues and the ability to offer more than just additional square footage to clients.

Calgary has been able to compete successfully for domestic and international business, but without ongoing investment Calgary will struggle to remain competitive against new facilities in other Canadian cities with newer, larger, more adaptable venues.

“Calgary is well ahead of many other destinations in terms of how it handles marketing of meetings and conventions,” states Cameron. Management at the CTCC have confronted many of the same challenges facing other destinations by focusing on business-to-business marketing and avoiding the challenges that increasingly arise these days in a market that wants to characterize its events as “all about business.” Cameron says, “The use of leisure messaging in the meetings market can be detrimental for a convention facility and has the potential to alienate some clients, particularly those in areas like the medical industry that have strict compliance requirements for destination selection.”

The Calgary TELUS Convention Centre continues to attract a wide range of clients from many industries.

A shift in the Centre’s business strategy ensures the CTCC is aligned with Calgary’s key industry sectors and opens up potential new business opportunities.

The Calgary TELUS Convention Centre (CTCC) has a strong reputation for service excellence and destination calgary-convention.com | expandthecentre.ca businessincalgary.com | BUSINESS IN CALGARY June 2015 • 89

Making a Difference Bruce Graham’s leadership in Economic Development

T

welve years ago, Calgary Economic Development was newly constituted and had a staff of six people. Bruce Graham had been tapped from Ontario to come west and shape the new organization that is now considered among the best economic development organizations in Canada. In fact, over the past 12 years, Calgary Economic Development has been the recipient of more than 150 national and international industry and marketing awards.

As Calgary Economic Development presented its annual Report to the Community on May 26, the accomplishments not only from the past year, but also over the past 12 years were apparent across the city. With Graham at the helm, Calgary Economic Development assisted with the siting and facilitating of The Bow project, Canada’s second largest office building project for Encana/Cenovus, helped to facilitate Imperial Oil’s move and staff relocation from Toronto to Calgary, and helped to create and acted as the inaugural chair of the Consider Canada City Alliance which unites the foreign direct investment attraction efforts of Canada’s 11 largest city regions in collaboration with the federal government.

“Bruce has had a very successful term as the president and CEO of Calgary Economic Development. Not only is Calgary Economic Development a respected organization here in Calgary, but under Bruce’s leadership the organization has made a marked difference in getting Calgary on the radar for investment, business and people attraction from around the world. His effort has been selfless and he will be greatly missed,” says Steve Allan, board chair at Calgary Economic Development.

As Graham’s term with Calgary Economic Development comes to an end in June, he has left the organization in a strong position. This past year Calgary Economic Development achieved major milestones for many initiatives. After two years of engagement with hundreds of community members to refresh the Economic Strategy for Calgary, Building on our Energy, the strategy received unanimous support from city council. This community-wide strategy is meant to guide the organization, civic partners, the city, post-secondary institutions, private sector and other community partners through both the good times and bad times. It brings together a leadership and implementation team to achieve purposeful diversification, embrace shared prosperity and build a strong community.

90 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

After much anticipation, ground was broken on the Calgary Film Centre, an initiative the Calgary Economic Development team has worked on for the past four years.

Scheduled to open in early 2016, the Film Centre will provide thousands of Calgarians a place to hone their industry skills, allow the city to better compete for screen-based production globally and continue to diversify the Alberta economy.

The Calgary-born WORKshift program in support of flexible work arrangements – that is to focus on results and to enable people to work where, when and how they are most effective – expanded to other jurisdictions across Canada adding the 14 municipalities in the Greater Toronto Hamilton Area to join the cities of Calgary, Halifax and Ottawa who have already adopted WORKshift.

Three years after launching the Calgary. Be Part of the Energy. campaign, Calgary Economic Development conducted perception research to understand if Canadians’ views on Calgary as a destination to live, work and make a life have changed. Perceptions saw a marked improvement over the last few years – while the business opportunity and sense of community is clearly understood, opportunity remains with respect to spreading the word on cultural experiences. The national marketing campaign continues to be a strong platform and call to action for inviting people and businesses to thrive in Calgary.

The business trade and development team continued to connect businesses with opportunities for trade and investment. Calgary Economic Development helped 23 organizations with their decision to relocate, stay, expand or invest in Calgary. These companies created 2,379 jobs and will occupy 2.7 million square feet of space in the region.

In the face of more economic challenges, Calgary Economic Development will continue to engage the Calgary business community and all orders of government to maximize opportunities for Calgary. With the Economic Strategy completed and a focus on implementation with many partners in economic development, Calgary Economic Development will continue to steward the leadership and implementation team to be nimble and adaptive to best serve the community.

The landscape of Calgary has fundamentally changed over the past 12 years. As Bruce Graham moves on to pursue his next endeavour, his impact on both the organization and the city will be felt for years to come.

Tourism Calgary is Putting Our City on the Map

BY CASSANDRA MCAULEY

T

ourism in Calgary had an exceptional year in 2014.

With a strengthened focus on putting Calgary on the world’s map, over eight million travellers visited the city, contributing $1.7 billion to the economy – a 6.3 per cent increase over 2013. These efforts were supported by the 16,000 Calgarians employed in the tourism and hospitality industry.

To attract travellers and encourage their spending, Tourism Calgary’s strategy was at the forefront of all initiatives. As reported at Tourism Calgary’s recent annual general meeting, some significant achievements by the destination marketing organization in 2014 include: • A record 59 sport and major event bids won; • Named 2014 Ultimate Sports City (Best Small Sports City category) and fifth overall globally by SportBusiness International; • A re-imagined membership structure, offering different options for involvement, from voting member to partner. At the end of 2014 Tourism Calgary had 559 partnering industry members; • 201,612 referrals to industry partners (156,122 from visitcalgary.com and 45,490 from Visitor Information Centre interactions); • 147 White Hat ceremonies hosted, making more than 2,100 visitors honorary Calgarians; • Honoured over 650 exceptional tourism and hospitality professionals nominated for 25 award categories at the

52nd annual Calgary White Hat Awards gala attended by more than 1,300 industry leaders; • Developed new campaign platforms to market Calgary regionally, nationally and internationally. In total, 27 partners participated in 2014 marketing campaigns, enhancing the experiential appeal of the city as a destination; • Partnered to develop trade-ready experiences to incorporate into national and international itineraries; • Enhanced partnerships with Travel Alberta, the Canadian Tourism Commission and other destination marketing organizations including Banff/Lake Louise Tourism contributed to marketing and awareness efforts regionally, nationally and internationally; • Gained inclusion in key tour operator tariffs; • Energized the Calgary brand by earning over $7.1 million in media coverage around the world (equivalent value); • Achieved over 1.45 million visits to Tourism Calgary’s website, visitcalgary.com, and over 212,000 social media engagements.

Tourism Calgary will continue to build on the successes of 2014 in the years to come, with the mandate of increasing the economic impact of the tourism economy in Calgary and the objective of working with the community to grow tourism revenues to $2.3 billion by 2020.

To learn more about Tourism Calgary, see visitcalgary.com.

businessincalgary.com | BUSINESS IN CALGARY June 2015 • 91

Technology Innovation is Key in the Energy Sector Kinetica bringing industry to innovation, delivering innovation to industry |

A

BY ANDREA MENDIZABAL

“With our key targets for innovation s the energy sector looks to stabilize, identified, we are now working to facilitate it is becoming increasingly imporcollaboration on specific projects between the tant to support innovation in the technology users in the energy industry and oil and gas industry not only to increase the technology developers,” says Frankowski. stability but to reap the benefits new tech“We are developing relationships with more nologies can bring such as lower operation industry partners, professional service procosts, improved efficiencies and increased viders, industry associations and government competitive advantages. agencies as we look to fulfil our targets.”

“The competitiveness of the energy indusKinetica has reached significant miletry is increasing. In today’s price environment, stones in its launch year that are helping with our region’s higher operating costs, the to pave the way for bringing innovation industry is being challenged to address and Kevin Frankowski is executive director of to industry. Along with securing valuable adapt,” says Kevin Frankowski, executive Kinetica, an initiative that is bridging the gap between industry and innovation. strategic partnerships with key service prodirector, Kinetica. “Innovation is one of the Photo Courtesy: Innovate Calgary viders via their associate members, Kinetica key aspects to the solution, especially with has established industry partnerships with regards to reducing costs and increasing our Canada’s Oil Sands Innovation Alliance (COSIA) and the competitiveness. Technology innovation is the path forward to Petroleum Technology Alliance of Canada (PTAC). achieve our future potential and establish economic stability Strong collaboration is critical in affecting change and the in this space.” partnerships that Kinetica has fostered with the business ecosysWrapping up its founding year, Kinetica, a division of tem and industry leaders will prove to be important aspects for Innovate Calgary, was launched with support from the Canthe successful commercialization of new technologies. ada Accelerator and Incubator Program (CAIP) and Alberta Currently, Kinetica is working with more than 15 client Innovation and Advanced Education in order to facilitate companies, three of which are at the commercialization the acceleration of world-class, game-changing energy stage, and one of which has moved on to active field tritechnologies. als – nFluids Inc., a startup spun out of the University of Joined by their associate members – Bennett Jones, Calgary Calgary that is developing a cutting-edge fluid additive for Economic Development, Collins Barrow and SAIT Polytechnic the oil and gas industry. Their product has the potential to – Kinetica announced their plan earlier this year to be a key significantly reduce the loss of fluid during drilling, providfacilitator towards developing innovation in the energy sector. ing direct benefits to efficiency, the environment and safer “This initiative provides a focused opportunity to drilling operations. deliver targeted innovation to the energy industry,” says “It’s companies like nFluids that demonstrate exciting innoFrankowski. “With many of the world’s largest energy comvations happening for the energy sector,” says Frankowski. panies headquartered here, Alberta is poised to lead the way “With Kinetica, we are able to link companies like nFluids in the commercialization of new energy technologies that with industry partners who are looking for solutions.” have the potential to positively affect the industry.”

Growth, improvement and stability can be achieved Along with their strategic partners, Kinetica aims to work through innovation in the energy sector, and as energy with technology developers to help de-risk and accelerate the prices continue to change, energy companies with enhanced most promising solutions using a commercialization model access to innovative technologies will enjoy an increasingly that includes access to expertise, capital and relationships. important competitive advantage.

Based on the needs of the energy sector, four key areas To learn more about Kinetica, visit www.kineticaventures. of focus have been identified by Kinetica as opportunities com. To learn more about Innovate Calgary and how it supports for growth and improvement: hydrocarbon recovery; energy new and emerging technology, visit www.innovatecalgary.com. transport; renewables; carbon capture, storage and reuse.

92 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

SPARK SUCCESS AT THE CENTRE OF ENERGY

MORE GROUPS WANT TO MEET AT THE CALGARY TELUS CONVENTION CENTRE THAN ANY OTHER CONVENTION CENTRE IN CANADA –

FOR MORE INFORMATION VISIT:

calgary-convention.com

MarketingMatters • David Parker

MarketingMatters

BY DAVID PARKER

J

ust a couple of years ago Edelman Calgary had a staff of half a dozen.

Today that count is up to 18 with latest additions Carla Benyon, former CBC reporter and television news anchor; Stephen Kent who was with the University of Calgary’s School of Public Policy; and Nithya Ramachandran who was a communications specialist with PwC Canada and prior to that the national vice president of organizational development for AIESEC, an educational organization in Spain.

Edelman has been doing some exciting work here including the rebranding of the Calgary Public Library and co-hosted the annual Edelman Trust Barometer with the Calgary Chamber of Commerce.

More recently it published Trust + Energy and has been presenting it to energy companies around town; many have requested the data set and Edelman’s analysis of its implications for Calgary energy organizations.

Some key findings include that trust in the energy sector is down in Canada, and that energy is the most targeted sector by activists.

•••••••••••••• Boutique executive search firm Pekarsky Stein has hired Orange Door, the creative agency wholly owned

by West Canadian Digital Imaging, to work with its team on rebranding the firm. Director Kathy Levinski says Orange Door is working on a wide variety of elements that will be revealed during Pekarsky Stein’s annual Rooftop Stampede Party.

••••••••••••••

I thank agencies that enter competitions as they promote the talented creative community in this city.

Jump Studios is a regular winner of the big contests and must be applauded for being nominated for a National Academy of Arts and Sciences Emmy in Outstanding Post Produced Graphic Design that it produced, along with its partner ESPN, for the 2014 NBA Draft.

And Jump received recognition at the Davey and Pixie Awards.

Six silver and gold Daveys in commercial, children’s audience for projects like Betty White, Cats and National Daytona. Then there were six more Pixies including platinum and gold in visual effects, motion graphics and animation categories for others like its work for ESPN’s tennis graphics package and Sabal Homes’ 20th anniversary video.

The award shelves at Jump might need some firmer brackets.

•••••••••••••• Another Calgary firm that must be among the best known in the event management category is e=mc2, a perennial winner of awards.

President Jocelyn Flanagan received a personal high honour at the 2015 Canadian Special Events Conference being presented with the Spirit of the Industry Award – a prestigious achievement being recognized by her peers.

And she stayed around to accept five other company awards including Best Event Produced for a Corporation by a Third Party Planner for Vermilion Energy’s “Celebrate 20” event in recognition if its 20th anniversary.

•••••••••••••• ZGM Collaborative Marketing was the big winner at this year’s Ad Rodeo.

The full-service agency with offices in Calgary and Edmonton was awarded the Best in Show Anvil Award for a TV spot produced for the Alberta government’s

94 • June 2015 BUSINESS IN CALGARY | businessincalgary.com

Joint Utility Safety Team (JUST) as part of its “Where’s The Line” campaign.

ZGM received a total of eight Anvils this year, the most awarded agency at the event. Beside JUST it took them away for the National Music Centre Out Loud Gala, Western Financial Group, and the Nature Conservancy of Canada.

•••••••••••••• For the past 11 years Julie CopelandStene did a fine job in telling the world about the great wines from Tinhorn Creek Vineyards in Oliver, B.C. as its marketing manager.

No more travel time as she has accepted the position as manager of marketing and special events at Heritage Park.

•••••••••••••• Paula Worthington has headed north.

The longtime staffer at Brookline PR has moved over to North Strategic to manage its Calgary office in the role of senior account director.

North is based in Toronto with other offices in Calgary, Vancouver and Montreal.

•••••••••••••• RedCity Creative has been awarded AOR for Junction 9 Yoga and Pilates, the new Inglewood facility opened by two members of the Beddoe family. And is about to launch new websites for Yann Haute Patisserie and Cappuccino King.

Parker’s Pick: I like to follow the marketing of firms that shorten their names to initials; some with nervousness carry their lengthened version for some time. Best of the bunch is RBC. But coming close must be Calgarybased MNP who did a great job in abandoning Meyers Norris Penny.

140 - 215 · 9TH AVE SW · CALGARY + 1 587 387 2228 · calgary.evcanada.com Welcome to prestigious Elbow Park. This custom built energy efficient home by McKinley Masters Custom Homes boasts over 6900 sq.ft of luxury living and is handicap accessible. This fully developed walkout bungalow borders the Elbow River providing unparalleled outdoor living and stunning views. The massive 4-car garage will easily accommodate lifted vehicles and has elevator access.

PRESTIGIOUS ELBOW PARK

$6,999,000

Mark D. Evernden & Associates 403.516.6265

611 SIFTON BLV SW

E&V

mark.evernden@evcanada.com

MLS C3652931

TRENDY PARKDALE

140 - 215 · 9TH AVE SW · CALGARY

$2,100,000

+ 1 587 387 2228 · calgary.evcanada.com

516 35A ST NW MLS C4001754

Welcome to prestigious Elbow Park. This custom built energy efficient home by McKinley Masters Custom Homes boasts over 6900 sq.ft of luxury living and is handicap accessible. This fully developed walkout bungalow borders the Elbow River providing unparalleled outdoor living and stunning views. The massive 4-car garage will easily accommodate lifted vehicles and has elevator access.

PRESTIGIOUS ELBOW PARK

$6,999,000 611 SIFTON BLV SW MLS C3652931

Mark D. Evernden & Associates Justyne Lis 403.516.6265 403.472.5330

E&V

mark.evernden@evcanada.com justyne.lis@evcanada.com

Located a block from walking paths alongside the bow river and five minutes from downtown Calgary, this custom built executive style home epitomizes the best combination of modern design, superior construction and the finest materials. Built by West Ridge Fines Homes this home offer almost TRENDY 5000 squarePARKDALE feet of extraordinary style in close proximity to the Foothills Hospital, major roadways and amenities. This property is completed with a heated attached triple car garage $2,100,000 rarely seen in the neighbourhood and beautifully and professionally designed landscaped yard.

516 35A ST NW RURAL ROCKYVIEW MLS C4001754

$915,000

Justyne Lis

255222 WOODLAND 403.472.5330 MLS C4005922

justyne.lis@evcanada.com Sheila Morrison

E&V

Jeffrey Bone Located a block from walking paths alongside the bow river and five minutes from downtown Calgary, this custom built executive style home epitomizes the best 403.399.9996 combination of modern design, superior construction and the finest materials. Built by West Ridge Fines Homes this home offer almost 5000 square feet of extraordinary style in close proximity to the Foothills Hospital, major roadways and amenities. This property is completed with a heated attached triple car garage sheila.morrison@evcanada.com rarely seen in the neighbourhood and beautifully and professionally designed landscaped yard.

Immaculate 6.86 acre walkout bungalow in Bearspaw's desirable treed woodland area. This home has been meticulously maintained and shows like new.

RURAL ROCKYVIEW Situated South West backyard exposure and partial mountain views, this location compliments the larger 6.86 acre parcel. Inside you will enjoy an open kitchen design including a large island, oak cabinets, built in oven and lots of light. Three gas fireplaces bring warmth to the living room, nook, and downstairs family $915,000 room. Formal dining room will impress guests. This home features an exquisite master suite, recreation room and solarium. A can't miss opportunity.

255222 WOODLAND MLS C4005922

Sheila Morrison Jeffrey Bone 403.399.9996

E&V

sheila.morrison@evcanada.com

Immaculate 6.86 acre walkout bungalow in Bearspaw's desirable treed woodland area. This home has been meticulously maintained and shows like new.

Situated South West backyard exposure and partial mountain views, this location compliments the larger 6.86 acre parcel. Inside you will enjoy an open kitchen 3507 RANGE ROAD 28-5 34 STRATHRIDGE GROVE SW 42 ELVEDEN DRIVE SW design including a large island, oak cabinets, built in oven and lots of light. Three gas fireplaces bring warmth to the living room, nook, and downstairs family MLS C4005387 $1,989,000 MLS C4006723 $1,348,000 MLS C4004818 room. Formal dining room will impress guests. This home features an exquisite master suite, recreation room and solarium.

A can't miss opportunity. $728,000

Phenomenal location backing onto the ravine with magnificent mountain views. This fully developed executive 2-story family home boasts over 4100 sqft of luxury living space featuring a bright open floor plan with tile and hardwood throughout. Enjoy the beautiful landscaped backyard.

Located close to the Waterton National Park on over 10 acres, this estate is surrounded by panoramic views of the Waterton mountain range. The main residence has 2150 sq.ft of living space, and a separate 2-suite guest house with 5 stars from Trip Advisor. This is a must see

One of the premier developments in Springbank Hill perched atop the hill with south , west and east exposure ranging from 10,037 sqft to 14,571 sqft. The developer is waiting for final approval with the city of Calgary but will be ready to build your home soon.

Mark D. Evernden & Associates

Mark D. Evernden & Associates

Mark D. Evernden & Associates

VICTORIA

403.516.6265

CALGARY

34 STRATHRIDGE GROVE SW MLS C4006723

$1,348,000

Phenomenal location backing onto the ravine with magnificent mountain views. This fully developed executive 2-story family

403.516.6265

TORONTO UPTOWN

YORK

3507 RANGE ROAD 28-5 MLS C4005387

$1,989,000

Located close to the Waterton National Park on over 10 acres, this estate is surrounded by panoramic views of the Waterton

403.516.6265

VANCOUVER ISLAND

42 ELVEDEN DRIVE SW MLS C4004818

$728,000

One of the premier developments in Springbank Hill perched atop the hill with south , west and east exposure ranging from

Open your doors, employers, because our graduates are going to help you succeed. They can contribute from the get-go thanks to relevant expertise in their fields, as well as valuable experience with teamwork, communication, intercultural competence, and active citizenship. Our 350,000 alumni have had a powerful impact on Calgary, and our newest grads are ready to help your organization grow, too. Find out more at bowvalleycollege.ca