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JUNE 2017 | $3.50 BUSINESSINCALGARY.COM

Leslie O’Donoghue, Q.C. PM41126516

RECIPIENT OF THE 2017 DISTINGUISHED BUSINESS LEADER AWARD

BOMA CALGARY NEWS - SUMMER 2017

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49 |

CALGARY CHAMBER SECTION

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RETAIL/SHOWROOM

NOW LEASING 324, 58TH AVE SE, CALGARY AB FEATURES:

• 56,725 SqFt of single storey retail and showroom/retail development • 223 Surface parking stalls • 5 buildings • Restaurant locations with patios • Drive-thru opportunity • Summer 2018

SUBURBAN OFFICE

NOW LEASING

Centron Cares is proud to partner with Accessible Housing (Resolve Calgary) constructing a Residential Care Facility for limited mobility residents

FOUNTAINCOURT

INTERSECTION OF BLACKFOOT TRAIL & GLENMORE TRAIL

Leading edge design in a campus style business park

FEATURES:

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

Centron specializes in real estate development, leasing,

sales and construction of office, retail and industrial projects.

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


LIFTBOSS ORANGE IS GOING GREEN!!

S

ince opening its doors in 2006, Liftboss Materials Handling has gone about what they do best, in a much different way than their competitors. Service has always been the focus right from the beginning, with regards to the forklift industry, growing a very strong customer base in 11 years. In 2012, they added further services becoming the Doosan® heavy equipment dealer for central and southern Alberta. More recently, Liftboss was excited to have an opportunity to quote, demo and sell a new DL350-5 Doosan loader to the Foothills Regional Landfill & Resource Recovery Centre (LRRC) to replace their old loader. The LRRC strives to do things differently, and has been working to reduce the amount of garbage that actually makes it into the landfill! For over 20 years, the site has been recycling, diverting and working with the Foothills Salvage & Recycling Society (FSRS) - and up to 30% of the material coming to the site is either recycled or reused instead of being placed in the landfill. Patrons are being greeted by an employee at the landfill bins, who will try to check each load before it’s emptied, looking for usable goods. Anything in good condition is redirected to the centre where it is sold in a thrift store-style operation. In some cases there are next-to-new building supplies that are recovered and resold to end users. An ongoing partnership between the region’s landfill and the FSRS has become a waste-reduction template for municipalities across Alberta, and many landfills are looking at how they can do the same thing. Getting their first unit on location was a huge opportunity for Liftboss, and the LRRC is very impressed with the power, comfort and design of this unit – the first Doosan machine added to their fleet. As this project is just in the early stages it will be a great opportunity to showcase how Liftboss can provide the support needed to help the LRRC grow their success in this project for years to come! Liftboss is the authorized Doosan dealer for sales, service, parts and rental for central and southern Alberta, servicing all makes and models of material handling and construction equipment. The LRRC is owned and operated by the Foothills Regional Services Commission (FRSC), which services and accepts waste from the commmunites of MD of Foothills No. 31, Town of High River, Town of Okotoks, Town Of Black Diamond, Town of Nanton, and the Town of Turner Valley.

Branches in Edmonton and Calgary Toll Free (877) 474-1470 www.liftboss.ca

Foothills Regional Landfill and Resource Rexcovery Centre www.foothillslrrc.com Doosan® and the Doosan logo are trademarks of Doosan Corp.

www.liftboss.ca


THE RIGHT TIME IS NOW! WITH OVER 4000 HOMES SOLD IN 25 YEARS, MY EXPERIENCE IS YOUR ADVANTAGE!

JUST ASK ME c

403 870 8811 |

t

403 686 7800 |

www.SAMCOREA.COM

|

SAM@SAMCOREA.COM


MARKETING SPRINGBANK | $8,500,000

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PI N N AC LE R I DG E PL AC E

Crafted by exceptional artisans and boasting only the finest of imported & local materials this 14,000 SF Tuscan villa inspired home is less than 10 years old yet it almost instantly transports you to Europe with an incredible sense of old world tradition and authenticity. With a 1,000 SF gym, 1500 SF professional style theatre, gourmet kitchen, elevator, 7 bedrooms, pool house, sport court, 5 car garage, opulent master wing & south facing courtyard this home is ideal for a large family or as an executive retreat. It was used as a set in the Fargo mini-series, has been featured in the National Post & most recently leased to Leonardo DiCaprio for 6 months during the filming of The Revenant. Ideal location set on 2 acres overlooking the beautiful Rocky Mountains yet just a few minutes away from shopping & services, 10 minutes to the Springbank airport & some of Calgary’s very best private schools.

BRITANNIA | $2,800,000

807

F O RT Y- S E V E N T H AV E N U E , S W

Contemporary newer home with 4 ensuite bedrooms & a 4 car garage, on a generous 74’ wide lot with sunny south backyard! Hints of West Coast design in this light & open residence with developed basement & over 5630 SF of living space. High-end appliances (induction range, multiple dishwashers, glass front wine fridge), heated floors, custom window coverings, a sculptural staircase of steel, wood & glass, extensive built-ins (large mudroom, several walk-in closets), quartz counters, stone backsplash, glass railings, chic lighting, home automation system, in-floor heating & central air conditioning. Entertaining oriented main level with large dining room, open kitchen, glass wall den. 4 bedrooms, 4 ensuite bathrooms, bonus rm & laundry rm upstairs. Basement developed with media/games room & 5th bedroom + bathroom.

MY EXPERIENcE IS YOUR ADVANtAGE

JUST ASK ME!


PUMP HILL | $1,095,000

PATTERSON | $995,000

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PAT TO N P L AC E , S W

PAT T E R S O N D R I V E , S W

Elevated lot (13,885 SF), private & treed, set high above the river valley. Custom built bungalow with walkout basement, 3 car garage, stone auto court, reinforced steel truss quiet floor system, updated stainless steel appliances & updated maintenance-free decks. Over 4300 SF of total living space with 3 + 1 bedrooms, a grand foyer (vaulted ceiling, double skylights, site lines to the views). Fully developed walkout with family/ games room, 2-storey sunroom/atrium (ideal for artists & plant lovers alike) & an oversized bedroom w/ ensuite (steam shower). Also on this level is a hobby room, workshop, storage space with built-in closets & stairway to garage.

Tucked away on one of the best streets in prestigious Pump Hill this custom built walkout bungalow boasts recent updates (flooring, neutral paint, shingles, custom blinds, several new Pella windows), an oversized triple garage and wonderful open plan with great flow & soaring ceilings! Living room w/ vaulted ceiling & fireplace). The vaulted master suite has a big walk-in & 5-pc ensuite w/ new tile flooring and the 2nd bdrm has an adjacent 4-pc bath also with new tile. The island kitchen has granite counters & newer stainless steel appliances. Walkout bsmt w/ 2 bedrooms, family room, gym/games room, 3-pc bathroom with steam shower.

ASPEN WOODS | $910,000

WEST SPRINGS | $895,000

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135

A S C OT PA R K , S W

WENT WORTH HILL, SW

On the hill in Castle Keep offering views towards the nearby treed ravine. 2622 SF of living space, great room plan with main floor den, living room, island kitchen with Dacor appliances, glass tile backsplash, walk-thru pantry, 3 large bedroms including master with a massive walk-in closet (& adjoining laundry room). Home is finished with deep-toned hardwood, porcelain tile & plush carpeting, quartz counters in kitchen & all bathrooms, designer lighting, coronado stone fireplace & upgraded stainless steel appliances. Convenient location, walking distance to the prestigous Webber Academy and just minutes to the boutiques and restaraunts of the Aspen Landing shopping centre.

Great room plan, 3 + 1 bedrooms, big west backyard & a fully developed basement! Enjoy the convenience of being near schools, shops/restaurants, Canada Olympic Park + a quick commute to DT. Family friendly & open plan w/ hardwood flooring flowing from the vaulted living room, into the spacious dining room & island kitchen w/ walk-thru pantry, stainless appliances & granite counters. Den w/ french doors & guest bathroom complete the main. There are 3 bedrooms & bonus room upstairs. Basement offers a granite topped wet bar, media room, full bathroom & 4th bedroom (w/ walk-in closet). Fenced yard with stone patio offers lots of space for kids & pets to play.

DISCOVERY RIDGE | $895,000

ALTADORE | $875,000

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4617

D I S C O V E R Y R I D G E B AY, S W

S I X T E E N T H S T R E E T, S W

Architecturally designed contemporary home with central air conditioning, in-floor heating, fully finished basement & exquisite finishes incl. custom solid core doors. Sophisticated kitchen w/ exotic wood cabinetry, quartz counters, marble backsplash & Viking appliances, living room with fireplace feature wall, dining room, powder room with glass sink, den w/ barn doors. Upstairs with 3 bedrooms incl. master featuring ensuite with free standing tub, heated floor & towel bar & steam shower. Developed basement with in-floor heating w/ media room, 4th bdrm, full bath, den/hobby room & bar with, glassfront wine fridge & Viking dishwasher. Dble garage & exposed aggregate walks.

Light & bright, with developed walkout, west backyard & 3100+ SF of living space & has 3 + 1 bedrooms, den & walkout developed. Featuring marble accents & hardwood (main & upper). Main flr has den, formal dining rm, family room & white kitchen w/ marble backsplash, granite counters & stainless appliances (incl. gas range & contemporary hoodfan). The breakfast nook has marble floor & opens to large deck w/ glass rail. Upstairs there are 3 bdrms & vaulted bonus room w/built-in desk, entertainment unit & gas fireplace. Master has walk-in & 5-piece ensuite. Walkout dev’d w/ 4th bdrm, 3-pc bath, family room, flex space, storage & wet bar. Beautiful west backyard w/ walled stone patio.

c

403 870 8811 |

t

403 686 7800 |

WORTH ®

YOUR HOME

FOR ALL IT’S

ASPEN WOODS | $925,000

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A S P E N S TO N E G R O V E , S W

Superb mountain views in this thoughtfully designed 2-stry w/ developed walkout bsmt & oversized, heated garage with built-in work-bench & lots of storage features! View side of the house has wall-to wall windows & an oversized 33’ deck perfect for entertaining. Merbau hardwood flows thru Island kitchen, nook, living room (gas fireplace), formal dining, & family sized mudroom. There are 3 bdrms & bonus room up. Master has hardwood, fabulous views & 5-pc ensuite (heated tile). Walkout finished w/ family/games room, den, 3-pc bathroom, hobby/ storage Rm & cold Rm (or future wine cellar). Built-in speakers, custom pull up/down pleated shades, central A/C.

STRATHCONA PARK | $895,000

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S T R AT H L E A P L AC E , S W

1860 + 1566 SF walkout bungalow backing onto beautiful & tranquil treed ravine! This custom built bungalow boasts vaulted ceiling thru most of main level & features a grand dining room with cathedral ceiling & bay window w/ Silhouette blinds, island kitchen w/ stainless steel appliances (pro-style gas cooktop w/ grill/griddle, smart micro/oven + 2nd oven) & granite counters. Living room w/ ravine views & corner fireplace. Large master suite w/ walk-in & ensuite. Also on main is a bedroom/den w/ cheater ensuite. Curved stairway to developed walkout w/ den area, family room, games & media spaces, 2 bdrms & full bath. Lovely yard with access to the walking paths in the ravine.

SIGNAL HILL | $725,000

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SIROCCO DRI V E, S W

Huge 8000+ SF pie lot w/ SW exposure, backing onto a greenbelt, in a quiet cul-de-sac, walking distance to c-train station for a quick & relaxing commute to downtown! 3 bedroom home with hardwood flooring thru most of both main & upper levels. 2765 SF of total living space. Main features formal living & dining rooms with cathedral ceilings, family room, open kitchen with island, granite counters, & sun-filled breakfast nook which opens to 2-tiered deck & beautiful backyard. There are 3 big bedrooms & laundry room upstairs. Spacious master suite overlooks backyard & includes walk-in closet & 5-pc ensuite. Basement fully dev’d w/ 4th bdrm, den, 4-pc bath & family room. Lot with underground sprinklers & access to walking path.

www.SAMCOREA.COM

|

SAM@SAMCOREA.COM


JUST ASK MISSION | $1,125,000

DOWNTOWN | $445,000

#M06

318 - 2 6 AV E N U E, S W

Huge terrace + completely renovated suite! An amazing find, this positively stunning, 1771 SF home comes with own 1889 SF terrace. The interior was thoughtfully designed & completely rebuilt. It features porcelain tile & hardwood flooring, Caesarstone countertops, Swarovski crystal lights & cabinet pulls, custom bath fixtures & a chef’s kitchen with imported cabinetry & high-end appliance package. The spa-like ensuite (with free-standing tub, multi-head shower, designer fixtures, towel warmer) is your private retreat at the end of a long day. There are 2 bedrooms, sunroom, 2 bathrooms, 2 underground parking spots. The building is across from the river & steps from trendy 4th Street shops/restaurants.

#201

701 T H I R D AV E N U E, S W

Executive, 818 SF, 1 bedroom 2 bath suite located in prestigious Churchill Estates, ideal for the professional or couple. Walking distance to downtown and steps to LRT and walking paths. Large 750 SF patio. Gourmet kitchen with breakfast eating bar with quartz countertops and stainless steel appliances open to dining area and living room. Full length windows and hardwood floors in the main area. Large master suite w/ ensuite with steam shower and closet. Unit includes central A/C, insuite laundry & titled underground parking stall and storage locker. Building amenities feature concierge service & car wash bay. Condo Fees include heat, electricity, water/sewer.

c 403 870 8811 t 403 686 7800 F 403 686 7804 Sam@SamCorea.com www.SamCorea.com

MY EXPERIENcE IS YOUR ADVANtAGE JUST ASK ME!


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Values-Based Financial Planning Gets You To Your Goals Faster. “Everyone’s financial situation is different, and every Calgarian deserves a financial plan that they can trust. At First Calgary Financial, we’re advocating that sound financial advice and a comprehensive values-based financial plan need to be available to everyone, regardless of their net-worth”, says Hyder Hassan, Director of Investment Services and Head of Wealth, CFP PFP EPC, at First Calgary Financial. “Planning for the future is a sacred process. We’re bringing innovation to our industry by taking a planning-first, investments-second approach to helping people achieve financial dreams, keeping an individual’s personal values at the forefront of all of meetings and planning agendas. What matters most is that individuals start planning and saving early. It matters far more than the income that you have to work with today.” “As a credit union, we put our members’ needs first. We have a mission to make money make a difference in the lives of Calgarians, and this is just one way that we aim to deliver on that,” says Hassan. So where should you start? 1) Consider your goals: Financial goals need to have two important aspects. They need to have a dollar value and be time-bound. For example, “I want to save $6000 in my TFSA by Dec 31, 2017.” How much should you put away in a savings account, TFSA, or RRSP? What's the best balance between short term and long term goals? Should you live your life and follow the “you only live once" model of spending, or save every penny for a rainy day? Our valued-based personal investment planning process can help you navigate the more detailed calculations and values-based advice. 2) Assess your financial wellness, and seek out a sound financial planning partner to help you. Having an accountable financial partner will increase your financial wellness by holding you accountable to your action plan. Look for a top-ranked brokerage with a track record for offering best-in-class planning for both experienced investors and for people looking to break into the market. Look for a partner that builds relationships and thinks about your full financial picture, without product dumping on you. At First Calgary Financial we work with Qtrade to ensure our members are confident in their investment choices and have access to free specialized consultations to assess risk, allocate assets, and identify their goals prior to building an investment portfolio for them.

“Everyone’s financial situation is different, and every Calgarian deserves a financial plan that they can trust.”

3) Think about how hands on you want to be with your portfolio. For example, do you want technology-enabled access to your investments 24 hours a day, 365 days a year? If so, you’ll want to look for a partner with expertise in this area. For instance, our partners at Qtrade offer VirtualWealth - online, expert management advice with low-fees and individualized choice in both portfolios and risk levels. 4) Consider your options for investing responsibly. Responsible investments (RI) deliver higher annualized total returns than non-responsible investing funds 63% of the time, and provide higher returns 67% of the time on fixed income and balanced funds, while offering you the opportunity to achieve competitive returns AND make a positive impact on people, companies and the environment*. Responsible investing looks at and assesses a companies’ environmental, social and governance practices, such as greenhouse gas emissions, supply-chain management and workplace diversity. In Canada, more than $1 trillion is managed using one or more RI strategies, according to the Responsible Investment Association. If you’d like a free Values-Based Personal Investment Plan, contact the team at First Calgary Financial today. FirstCalgary.com/Retire | 403.736.4950

*Source: Value of Financial Planning: Financial Planning Standards Council.


Make It sy Ea

SPECIAL LIMITED TIME OFFER: PRIME -0.25%* or 2.90%* FIXED

Banking local just makes sense. If you’re renewing or refinancing your commercial mortgage, or planning a commercial property purchase, we can help. Find out about our limited time 3-year variable commercial mortgage at Prime -0.25%*, or our 2.90%* five-year fixed mortgage rates.

Call today to get started!

403.736.4170 FirstCalgary.com/Commercial *Terms & Conditions apply. Limited time offer ends. Commercial mortgages from $250,000 to $10,000,000 eligible on three-year variable term and five-year fixed term.


STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 26 | Number 6

REGULAR COLUMNS

18

B.C. Narrowly Averts Alberta-Type Disaster By Frank Atkins

20

Alberta Businesses Aren’t Looking for a Handout By Paige MacPherson

22

Pot Legalization Before Quantifying Impairment is Reckless By David Yager

CONTENTS COVER FEATURE

42

Leslie O’Donoghue, Q.C. Recipient of the 2017 Distinguished Business Leader Award By Melanie Darbyshire

ON OUR COVER: ABOVE: LESLIE O’DONOGHUE, Q.C. PHOTO SOURCE: EWAN PHOTO VIDEO

24

By Cody Battershill

49 75 89 94

FIND US ONLINE! B US I N E SS I NCALGARY.COM BUSINESS IN CALGARY

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JUNE 2017 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

Sometimes, Silence is not Golden

BOMA Calgary News Summer 2017 Leading Business The Calgary Report Current developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary

Marketing Matters By David Parker


The Statesman Group of Companies is celebrating over 40 Years of leading innovative and award winning developments throughout North America. In the 80s we introduced Calgary to Villas. In the 90s we introduced The Manor Village Life Centers – elegant senior living. Today, we’re mastering steel and concrete towers on the multi-family residential and resorts...

Home & Lot Sale

Move in 2019

Witness what the Future will bring... Aptly named The Views, this future community lies at the intersection of West Springs & Cougar Ridge, on Old Banff Coach Road. Nestled into the Paskapoo Slopes hillside, this gated community provides the best & last great views over the Bow River valley. Scheduled for completion in 2019, you will have plenty of time to sell your current home once the market recovers. Buy low, sell high. Reserve your suite today with a small deposit.

www.theviewscalgary.com | 403.262.5070 What a Beautiful Way to Live At Pine Ridge Mountain & Lakeview Community you have a unique opportunity to build the type of home that fits your lifestyle. Located 3 hours outside of Calgary, in Invermere BC, you really can enjoy a daily lifestyle that is better than most people’s vacations. Our community is carefully designed to provide you and your family with the very best amenities. Now offering home & lot starting in the mid $400’s and up. Escape the stress of the city. It’s time to unwind.

www.discoverpineridge.com | 877.578.4493

(403) 256-4151 • statesman.ca


STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 26 | Number 6

57

CONTENTS THIS MONTH’S FEATURES

COMPANY PROFILES

57 87

26

United Roofing

Celebrates 10 Years

Treeline Well Services

Celebrates 20 Years

36

D  esigning the Calgary ‘Look’ …the diverse demographic By John Hardy

A  lberta’s Competiveness in the Canadian Energy Sector What happened to the Alberta advantage? By Lorena McDonald

63

T  he New Farm and the New Farmer Managing today’s capital-intensive farm By John Hardy

67

O  nly Qualified Candidates Need Apply – or Not! Diversifying your employee base By Erlynn Gococo

70

C  algary Housing Market Turning Around Economic indicators show positive trend moving forward By Business in Calgary

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JUNE 2017 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM


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PUBLISHERS

Pat Ottmann & Tim Ottmann

ASSOCIATE PUBLISHER

Evelyn Dehner evelyn@businessincalgary.com

EDITOR

Melanie Darbyshire

COPY EDITORS

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ART DIRECTOR

Jessi Evetts jessi@businessincalgary.com

ADMINISTRATION

FLEXIBLE. AFFORDABLE. CHOICE. Our cost control and plan management expertise means you can offer a group benefit plan that meets the needs of your employees at a price you can afford. Call us today for a confidential no-obligation quote or talk to your plan advisor. 403-294-4004 www.ab.bluecross.ca Prescription Drugs • Dental • Extended Health • Travel Coverage Life and Disability • Vision• Spending Accounts Critical Illness • Employee and Family Assistance Program

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REGULAR CONTRIBUTORS Paige MacPherson Frank Atkins David Parker David Yager

THIS ISSUE’S CONTRIBUTORS Melanie Darbyshire Rennay Craats Lorena McDonald John Hardy Erlynn Gococo

PHOTOGRAPHY

Cover photo courtesy of Ewan Photo Video

ADVERTISING SALES

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Golfer’s Paradise Resort Property Lot 6, Wilderness Club golf course 2,082 sq ft | Three bedroom New construction This home is located within the gates of Wilderness Club, Montana’s number one rated golf course. Constructed of Montana wood and stone, it’s a part of the natural landscape. Enjoy quiet evenings on your private patio with views of the mountains, golf course, pond and forest. There is no better place to relax with your loved ones, maintenance-free and surrounded by endless recreation.

For More Information

Please Call: 403-837-9092


B.C. NARROWLY AVERTS ALBERTA-TYPE DISASTER // FRANK ATKINS

B.C. Narrowly Averts Alberta-Type Disaster BY FRANK ATKINS

O

n May 9, 2017, British Columbia voters elected the first minority government since 1952, with the Liberals hanging on to win 43 of the 44 seats needed for a majority government. The New Democratic Party will, at least for the time being, remain the official opposition. It is not quite over yet, as there are absentee ballots that need to be counted, and there are several close races where there will likely be recounts. It is almost exactly two years from the time that we in Alberta elected an NDP majority, and voters in B.C. have narrowly escaped the same fate. It is interesting that the performance of the economy at the time of the election in Alberta was completely different than the performance of the B.C. economy today. When Alberta elected the NDP government, the world price of oil was low and unemployment was very high. For reasons I have never understood, if an economy is doing poorly, a great many people look to the government for a fix. There seemed to be a desire for change, so voters chose this change through the NDP. It was an odd choice at the time, given that voters seemed to believe that somehow electing an NDP government would help the economy. How we expected a socialist government to increase the world price of oil is unclear. It seems we have been quickly disabused of this idea, as the NDP policies here in Alberta have made a bad economic situation even worse. B.C. is doing very well, unemployment is low and there is overall confidence the economy will continue to remain strong. It is difficult for us in Alberta to understand this, but in B.C. the Liberals are basically the provincial conservative party, and they seem to be very pro-business. Clearly this is the opposite of their federal counterparts. During the campaign,

IT IS DIFFICULT FOR US IN ALBERTA TO UNDERSTAND THIS, BUT IN B.C. THE LIBERALS ARE BASICALLY THE PROVINCIAL CONSERVATIVE PARTY, AND THEY SEEM TO BE VERY PROBUSINESS. the Liberals continually pushed the message of a strong economy, and took credit for the economic performance. In this situation, it is not clear why B.C. voters nearly voted for a socialist alternative. Voters seem to quickly forget economic history. The economic evidence shows whenever an NDP government has been elected, the economy performs rather badly. The disasters are all documented: Ontario economy under the Bob Rae regime; Saskatchewan before the election of Brad Wall; and of course British Columbia under NDP governments in the past. We can add the current Notley government in Alberta to this list. Here in Alberta, we should learn a lesson from this B.C. election. In spite of the Notley government’s poor policies, there are signs the Alberta economy could be on the road to recovery. The Conference Board of Canada predicts the Alberta economy will grow by 2.8 per cent in 2017 and 1.9 per cent in 2018. Clearly, the recovery will be slow and fragile. When the election comes in 2019, we should remember the fate of economies under NDP governments, and how the 2017 B.C. election narrowly avoided this same fate.

Frank Atkins is a senior fellow at the Frontier Centre for Public Policy.

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JUNE 2017 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM


ALBERTA BUSINESSES AREN’T LOOKING FOR A HANDOUT // PAIGE MACPHERSON

Alberta Businesses Aren’t Looking for a Handout BY PAIGE MACPHERSON

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orporate welfare is on the rise in Alberta. While politicians are picking and choosing which businesses they favour for subsidies, they’re taking that cash out of the pockets of other job creators, restricting the growth of other industries and businesses that put food on tables. While the government is increasing taxes and acting as if those increases are out of necessity, it is also increasing the tax burden for future generations. The Alberta government is borrowing heavily, with the debt level in line to hit a record-setting $72 billion by 2020. Someone has to pay for it sooner or later. But handouts to government-friendly businesses aren’t required. Alberta businesses have long thrived on their own. Corporate welfare is only one of the many unnecessary expenditures taken by the government. And it didn’t start yesterday. While Alberta once shied away from big government subsidies to big business, leaving more room for the organic growth of job creators, these programs found new life under Premier Ed Stelmach in 2006 and have grown since. Subsidies to business have grown substantially under Premier Rachel Notley. And unfortunately for aforementioned future generations of taxpayers, the biggest bills are yet to come. According to a new report from the Canadian Taxpayers Federation penned by Mark Milke, between 2011 and 2017 subsidies to business and forecast costs extending beyond that point will total more than $6.7 billion. In Alberta’s corporate welfare du jour, green is the new black. Of that cash, 67 per cent is for green initiatives and/ or renewable energy projects. Across Canada, corporate handouts have trended away from traditional subsidies and toward so-called green projects. That’s not to say the traditional taxpayer drains aren’t still receiving their cheques

– Quebec-based Bombardier, for example, has been sopping up tax dollars for years and continues to do so. But as our report tracked the trends in corporate welfare, we found green is in. The Alberta government, and indeed governments from coast to coast, have a terrible track record with picking winners and losers on which to waste taxpayer money. In Alberta, the government has wasted billions of dollars in the name of economic diversification with no real return for taxpayers, according to Professor Ted Morton at the University of Calgary. There’s no reason to believe their judgment will improve just because the handouts are directed toward green companies. The intention may be good, but it’s the outcomes taxpayers have to pay for. Future generations should be more concerned with the potential big costs coming down the pipe. Albertans could be on the hook for $25.1 billion in toll payments to the North West Upgrader bitumen refinery. Alberta businesses haven’t been asking for handouts. They’ve been asking – sometimes begging – government to get out of the way. Governments at all levels are spending money they don’t have – expanding new programs such as government daycare and hiring almost 3,000 new government employees at the provincial level; and councillors continuing to spend money on golf courses and public art projects in Calgary, when the cash just isn’t there. If governments stopped spending excessively on compensation and programs including corporate welfare, they could step aside and make room for genuine economic growth – the kind job creators in Alberta have been creating for decades without a wink, smile and a handshake from some politician looking to score votes.

Paige MacPherson is Alberta director of the Canadian Taxpayers Federation.

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POT LEGALIZATION BEFORE QUANTIFYING IMPAIRMENT IS RECKLESS // DAVID YAGER

Pot Legalization Before Quantifying Impairment is Reckless BY DAVID YAGER

T

he oilpatch has long been considered a dangerous occupation where high pay lures workers into a highrisk working environment. But since 1987 – thanks to the forceful intervention of Health and Safety Minister Jim Dinning – Alberta’s upstream oil and gas industry has become the safest industry in the province.

oilpatch has lost for human rights considerations. Now the courts treat proven impairment as an employer’s “duty to accommodate.” If a worker tests positive and is terminated, judges now rule the employee can challenge the firing by claiming to have a dependency defined as a “disability;” not ambivalence to a safe workplace.

A key element has been drug and alcohol testing. Now the federal government plans to legalize recreational marijuana use despite serious objections from multiple industry groups. That Ottawa will do this before scientific and proven standards for impairment and testing are perfected is reckless.

The Liberals campaigned on legalizing pot. But nobody asked industry for its views. Late last year, nine major trade associations wrote the ministries of justice, safety, transport and employment pleading, “As the employers of hundreds of thousands of workers across Canada, we feel it is imperative that several issues and concerns are addressed prior to or at the same time as the legislation to legalize marijuana is introduced.”

Alberta Labour publishes annual safety statistics by major employment group, the latest for 2015. The provincial average for disabling injuries was 2.36 per 100 person years of employment. Mining and petroleum development came in at 0.88. The provincewide statistic for lost-time accident (LTA) frequency was 1.36. The oilpatch reported 0.25. The report reads, “The mining and petroleum development sector continued to have the lowest lost-time claim rate in 2015 at 0.25. Provincial and municipal government, education and health services had the highest lost-time claim rate in 2015 at 1.98.” That is progress! Why do employers drug test? The oil and gas workplace is indeed high risk. Workers drive to and from remote locations. They work with or around heavy machinery. Hydrocarbons are flammable and poisonous and produced under high pressures. Workers should not be there unless they are rested, alert and sober. Pre-employment drug and alcohol testing has long been demanded by responsible companies, as has post-incident testing. However, mandatory random testing has been challenged in court. Each time the safety-conscious

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After restating the hazards of being intoxicated on the job, the associations urged Ottawa to concurrently introduce acceptable and measurable marijuana impairment standards as is the case for alcohol; clear and enforceable workplace drug and alcohol enforcement regulations; and more legal balance in favour of the employer on the “duty to accommodate” issue. On April 11, 2017, Enform, the Alberta safety organization funded by oil and gas industry trade associations, requested governments introduce an outright ban on marijuana in hazardous work environments until drug-testing technology is perfected and legal limits for intoxication are established. Pot stays in the body for weeks after consumption. But it doesn’t mean the worker is impaired. On the pot file, our photogenic and hip PM marches onward. It is not that consuming marijuana should remain illegal. But to legalize another form of intoxication without medical, scientific and legally-enforced guidelines to maintain and ensure worker safety is irresponsible. The government has just over a year to fix this. Here’s hoping.


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SOMETIMES, SILENCE IS NOT GOLDEN // CODY BATTERSHILL

Sometimes, Silence is not Golden BY CODY BATTERSHILL

“I

f you’re right and you know it, speak your mind,” Gandhi said. “Even if you’re a minority of one, the truth is still the truth.”

The women and men who form the backbone of our province, our energy sector and our country constitute a group that’s much, much larger than a minority of one. We’re the people who think energy derived from Canada is far more attractive from a moral perspective than oil imported from political regimes notorious for human rights abuses and poor worker and environmental conditions. But another group, U.S.-based 350.org, is active in our markets making unfounded claims of environmental destruction designed to pressure customers, investors and regulators in North America to avoid Canadian oil – in spite of the fact the Canadian energy sector has shown time and time again its leadership in being fully committed to the highest environmental and ethical standards. When 350.org promises to “double-down on pressuring cities, schools, banks and other institutions to divest from fossil fuel companies” (including Canadian ones), we think it’s time to stand up and support the energy and pipeline companies that play by the rules, that operate in our neighbourhood, that create good jobs and that participate in our community. Our volunteer-driven organization, CanadaAction.ca, is just one of many vehicles available to citizens who want to speak out. If you agree with Gandhi’s premise, then you should feel free to tell your elected officials how proud you are of the Canadian energy sector, or write a letter to your local newspaper exploding some oilsands and LNG myths.

LET OTHER ALBERTANS KNOW THEY’RE NOT ALONE IN HAVING WORKED IN OIL AND GAS-RELATED BUSINESSES. SAME GOES FOR NON-ALBERTANS: OUTSIDE ALBERTA, THE NUMBER OF CANADIAN COMPANIES WITH DIRECT BUSINESS LINKS TO THE OIL AND GAS INDUSTRY IS STAGGERING. Tell them 97 per cent of the oilsands land area can only be developed ‘in situ’ with drilling – not mining. Tell them in the last 50 years of development just 0.7 per cent of the land area has been mined, and every acre will be reclaimed back to nature. That’s Alberta law. Tell them global demand for oil and natural gas is in fact growing and the world needs more Canada. Let other Albertans know they’re not alone in having worked in oil and gas-related businesses. Same goes for non-Albertans: outside Alberta, the number of Canadian companies with direct business links to the oil and gas industry is staggering. This includes hundreds of First Nations-owned companies and workers from coast to coast. If Canadians feel unfairly targeted by activist campaigns such as 350.org, led by U.S. entertainers and fuelled with U.S. foundation dollars, then maybe it’s time Canadians said so. Because when it comes to influencing public policy, there’s still no substitute for just speaking your mind. Cody Battershill is a Calgary realtor and founder/spokesperson for CanadaAction. ca, a volunteer organization that supports Canadian energy development and the environmental, social and economic benefits that come with it.

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DESIGNING THE CALGARY ‘LOOK’ // URBANOMICS

DESIGNING THE CALGARY ‘LOOK’ …THE DIVERSE DEMOGRAPHIC BY JOHN HARDY

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t first glance, in the eyes of browsing potential new homebuyers, it all looks so easy.

But developers, homebuilders and industry professionals know the designs, the elevations, the streetscapes and the layouts of a new home comprise a complex plan – riddled with strategies, consumer and marketing trends, building code and municipal regulations, rolls of technical drawings, blueprints and reams of precise and picayune details. “We approach new exterior designs based on the feedback from our developer partners for each community we build in,” says Cory Hirsekorn, design drafting manager at Morrison Homes. “Each community has a theme or a vision that inspires design. “The types of architectural styles are chosen to support the vision. Each architectural style has a distinct massing, or look, which helps achieve this. The massing consists of types of roofs, roof lines, windows, finishes and even colours. “A strong partnership with the developer helps us produce effective designs and helps achieve the balance of style and ‘look’ they are trying to create.” Design is a slightly different approach for Calgary’s Alloy Homes, the respected custom-design build company. Their

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designs tend to be unique to each client’s individual needs and tastes. “Although the exterior elevations of our homes are usually modern, we aim to be sympathetic to the existing built environment, picking up cues from existing roof lines, massing forms and setbacks,” explains Julia Mercer, design manager at Alloy Homes. “But we are unabashedly modern in our outlook and this is reflected in our designs. “Our exterior materials and windows work to add to the massing design of the home, and the colours are usually of a natural palette to work with the existing environment. “Our design strategy isn’t so much about what is trending right now. We aim to design and build homes that are timeless. Not only in their design but also in their function and how a family lives in the space.” The sometimes tricky aspect for new home planners and designers is the significance of function versus consumer trends. Finding a balance can be challenging. Function is always considered when designing new models. “Our new homebuyer must feel comfortable in their new home, so the key is to create something functional but which excites and inspires them at the same time. Consumer trending is always considered in design but it’s usually difficult to accurately forecast what’s ‘in’ and what’s ‘out.’


DESIGNING THE CALGARY ‘LOOK’ // URBANOMICS

“Designing and selling to your audience and knowing who they are is what really matters,” Hirsekorn points out. “Ethnic needs are starting to play a much larger role in design. A more diverse demographic is starting to play a larger part in what’s ‘in.’ The next new ‘in’ thing is finding ways in which to meet the new homebuyer’s cultural needs. “For Morrison, building in a number of communities and trying to meet these diverse expectations has become the priority more so then to come up with or create the new next ‘in’ thing.” The Alloy Homes client is specific and individual with a personalized focus of wants and needs. “We don’t get many clients requesting things that are currently ‘in’ or ‘out.’ They want their design and selections to reflect that timeless nature,” Mercer adds. “We do see clients focusing more on items such as waterproofing, insulation and windows to ensure they have a tight building envelope that is energy efficient and durable.” When it comes to the technical aspects of home design, like elevations and streetscapes that most consumers rarely notice, new home planners and designers work with various factors other than usual consumer details. “Each design has its own challenges,” Hirsekorn says. “Not any one product type is usually more challenging than any other. We try and create something new each time, which

doesn’t necessarily match in size to what is already available or is too similar to other builder designs. “Sometimes the available space determines what you have to work with. If there is not much of an opportunity to create something that is different, that could become a challenge to respect what’s already out there.” Although some people assume there is such a thing as “a Calgary look” when it comes to area homes, both Calgary designers agree there is not a unique Calgary design dominating new and custom homes. “Larger mud rooms are important due to Calgary’s (and Edmonton’s) varied climate ranges, as well as dedicated storage rooms due to the variation in weather-related clothing and gear,” Hirsekorn explains from experience. “Multigenerational flexibility is becoming much more prevalent, but I think that is a design factor in most areas.” Mercer agrees Calgary weather is a design issue. “We can’t create the same indoor-outdoor living style that exists in climates such as California. But we can replicate a similar idea and style with less actual openings and triple-glazed windows.” Traditionally there are municipality codes, regulations and restrictions about certain new home design specifics, but, as Mercer explains, “City planning and policies do not effect design so much as help to refine designs.”

ABOVE LEFT: JULIA MERCER, DESIGN MANAGER AT ALLOY HOMES. ABOVE RIGHT: CORY HIRSEKORN, DESIGN DRAFTING MANAGER AT MORRISON HOMES. BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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Local Entrepreneurs Gain Success Together Bigfoot Industrial Services Ltd. helps rebuild 1961 roaster for Phil & Sebastian Coffee Roasters A year-long, mutually beneficial relationship between two local Calgary companies is about to bear fruit of the coffee variety. Phil & Sebastian Coffee Roasters and Bigfoot Industrial Services Ltd. – two Calgary businesses headed by born-and-bred Calgarians - found common interest, and gain, in the refurbishment of a 1961 coffee roaster. “About three years ago it became clear to us that our current roaster would be insufficient in size to handle our growth,” says Phil Robertson, co-owner of the local coffee shop (there are currently five locations and 70 employees) and craft roasting company. Having worked with the company’s first roaster since 2009, Robertson – who is an engineer – wanted one he could customize with automation. Nothing on the market met his desires. “We had two choices: buy a new roaster, strip it back and customize it, or buy an older roaster and build it back.” They chose the latter option, purchasing a 1961 German roaster that had been sitting abandoned in a warehouse in Russia. “It was all rusted up but otherwise in really good shape,” Robertson says. After shipping it to Canada, Robertson struggled to find someone to help him rebuild it – a unique, time-consuming and challenging task. “I needed someone who was willing to see the job as an opportunity,” says Robertson, who redesigned the machine himself. “And who could quote me properly.” He eventually called Jesse Messom, owner of Bigfoot – an industrial millwright, welding and fabrication company – who had serviced the old roaster. “Jesse had a can-do attitude,” Robertson praises. “He kind of saved me.” “It’s been great,” Messom says of the project which saw him and five employees build Robertson’s designs. “There were a lot of setbacks and interesting things that came up. We had to work on the fly and be solution based.” Though the scope of work is wrapping up, Bigfoot isn’t going anywhere. “We’re going to be here for support, whenever Phil needs us.” It is an attitude that has engendered Bigfoot much success. Since starting the business six years ago out of the back of

his Chevrolet Silverado, Messom, who is a millwright, has grown his company by an average of 100 per cent year over year. “Business has been fantastic,” he beams. His can-do attitude and the fact that he hasn’t focused solely on the oil and gas industry have been key. From the outset, Messom diversified Bigfoot with agricultural, food-processing and logistics clients. One of his first clients was FedEx, a client he still has today. “Given my skill level and customer care, I’ve gained more and more clients through word of mouth,” he says. “The clients I do have keep coming back.” With an 8,000-square-foot shop and a dozen employees (up to 30 in the summer), Bigfoot is going places. “I think we’re going to be a place where innovation is built. And I think in the next couple of years you’ll see some big things out of Bigfoot, no pun intended,” he chuckles. For his part, Robertson is keen to start realizing the efficiencies of his new roaster, located in the Simmons Building in the East Village. “The downturn has affected us,” he says, “but as a consequence we have to operate more efficiently, tighter. That’s why we’re looking at automation.” A symbiotic relationship with happy endings for both sides. The next time you drink a cup of Phil & Sebastian coffee, rest easy knowing some of Calgary’s best young entrepreneurs have brought it to you. It will taste that much more delicious.

ABOVE: PHIL & SEBASTIAN’S NEWLY REBUILT 1961 ROASTER LOCATED IN THE SIMMONS BUILDING IN CALGARY’S EAST VILLAGE. PHOTO SOURCE: KERRI MCGRATH

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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Breakfast on the Bridge Returns in Celebration of Canada’s 150th Anniversary

Since its initial kickoff in 2014, Breakfast on the Bridge, in support of the Calgary Military Family Resource Centre (MFRC), has become a unique experience for generous Calgarians across the city. This year, the third Breakfast on the Bridge is scheduled for June 17, 2017 in honour of Canada’s 150th anniversary and will feature the Hon. Harjit Singh Sajjan, minister of defence. Taking place on the iconic Peace Bridge, connecting downtown with northwest Calgary, guests will make their way along candlelit paths for the 5:00 a.m. start time before being treated to a Hotel Arts-catered Canadian-fare breakfast – including beaver tails and maple syrup – in celebration of Canada’s 150th anniversary. While dining, the early risers will enjoy the music of three-time Juno-nominee Don Amero, a flyover by three Canadian Forces Tutor jets and a poignant address by keynote speaker, the Hon. Harjit Singh Sajjan. The event is the brainchild of Calgary businessman George Brookman (West Canadian Digital Imaging), who is joined by W. Brett Wilson (co-founder of FirstEnergy Capital and a former panellist on CBC’s Dragons’ Den), co-chair of the event. “It is a great cause and a very unique event; you can get up early on Saturday morning and by 7:30 a.m. you can go home and go back to bed if you want,” laughs Brookman. “There is nothing like a beautiful June morning in Calgary and watching the sun rise over the Bow River Valley.” Tickets sell for $750 per person and proceeds will be directed to an important cause: the Calgary Military Family Resource Centre (MFRC). The MFRC’s programs and services support Canadian Armed Forces members, veterans and their families. Dollars raised on this special morning will help fund the tremendous work they do, with particular attention to issues surrounding mental health and well-being, especially post-traumatic stress disorder (PTSD).

To ensure the event’s continued success, Brookman, a well-known Calgary business leader, volunteer and philanthropist, has garnered the support of four sponsors this year – TD Canada Trust, Cenovus Energy, the Calgary Flames Foundation and Telus. “When the MFRC initially approached me, they said it would be great if we could raise $50,000 to help their cause,” adds Brookman. “So we went ahead and raised $170,000 and did it again in 2015. This year, we are hoping to meet or even exceed that amount.” As the event is always sold out and the bridge only seats 250 attendees, Brookman encourages those interested in attending to purchase tickets early. “People really enjoy coming to this and we have a lot of fun. When they arrive it is pitch black and we have candles lighting the pathway. Then the sun rises and by the time they go home, it is a bright and sunny day.” For ticket information or to donate, please call 403-4102320 (ext. 3591) or visit calgarymfrc.ca.

ABOVE: GEORGE BROOKMAN, WEST CANADIAN DIGITAL IMAGING.

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MNP LLP Hosts Head of Ipsos Public Affairs for Enlightening Presentation Dr. Darrell Bricker talks about the ‘New Canada’ On April 24, 2017, Dr. Darrell Bricker, CEO of Ipsos Global Public Affairs, and Sean Simpson, vice president of Ipsos Public Affairs in Canada, were presenters at the annual internal MNP LLP marketing summit in Calgary. The Ipsos executives’ focus was on the way Canadians have changed and current sentiments.

that the population is moving from east to west; that it’s becoming much more urban and suburban; that we’re aging, and having far fewer kids than we used to; and that most of the growth in our population is now coming from immigration, almost all of which is from Pacific nations.”

The author of five books, Dr. Bricker heads up the world’s largest public opinion and social research company. His presentation was on ‘The New Canada.’

Factors such as women choosing to have fewer children later, increasing longevity and wealth in later years, the growing economic importance of a few Canadian cities from the Greater Toronto Area westward, and Canada’s reliance on economic international immigration are driving these changes.

“The Canadian population is changing very rapidly,” Dr. Bricker explains. “It’s a combination of the fact

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Top 5 Reasons to Invest in Calgary Real Estate: • 5th Most Livable City in the World • Fastest Growing Population • House Prices Less Than Canadian Average Alberta, in particular, remains a popular destination. “Calgary is still the fastest growing city in Canada in spite of what’s going on in the oil and gas industry,” Dr. Bricker says. “Over the last two years there have been more people move here than leave.” Those who come to Alberta, however, tend to be different than those who leave. “Those leaving are inter-provincial migrants – people who have another option in Canada,” Bricker explains. “Whereas the people coming are from other countries. They’re coming with university degrees, money and skills. The people power this represents is going to be a real advantage for Alberta.” For businesses desiring to market to Canadians, it’s imperative to understand who they are today, Dr. Bricker urges. For example, the fastest growing class of household in Canada is single people living by themselves, in particular women. “And they have a lot of money in many instances,” he says. “They are a larger, more powerful segment of the marketplace.” Canadians are tolerant, opinionated, demanding and difficult – all at the same time, Dr. Bricker says, and the result of a multicultural, educated populace. “You’re going to have to find a way to have a conversation and engage with them at a level where you actually have a relationship,” Dr. Bricker advises. “Dr. Bricker’s presentation provided valuable insight to the way Canada is changing from a demographic perspective,” says Randy Mowat, senior vice president of marketing at MNP, “and how we as marketers need to understand these shifts to ensure relevant communications and offers will resonate within the new framework.” Simpson presented global and Canadian Ipsos data to provide a picture of Canadian sentiment. Of note: only 50 per cent of Canadians think the country is headed in the right direction; Canadians’ top concerns are health care and pocketbook issues such as taxes and jobs; 46 per cent believe they will be worse off than their parents’ generation, and 53 per cent believe their kids will be worse off than they are; and only 40 per cent have a high level of trust in business.

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University District Discovery Centre Official openings a success

As the first LEED-ND Platinum Certified Neighbourhood development in Alberta and the largest in Canada, University District (U/D) promises great things for northwest Calgary. With the official private and public openings of the U/D Discovery Centre during the week of March 6, many of those great things can now be viewed up-close and hands-on by visitors interested in the development. Located immediately west of the University of Calgary campus, U/D is a 200-acre mixed-used development that will include various types of residential, retail, commercial and parkland space. The land is owned by the University of Calgary and will be leased to homeowners in a public/private leasing model used at some of the world’s most prestigious universities (including Harvard, Yale and Oxford). A master plan for the community integrates urban design and green space, retail and office buildings on the High Street (the heart of the community), and pathways for walking and biking. “University District has been designed to encourage multi-mode travel,” says James Robertson, president and CEO of West Campus Development Trust, the organization overseeing the development for the university. “People won’t be dependent on vehicles to find the amenities they need. Everything is close by – from groceries to other shops, and for many residents, their jobs.” Those jobs may be at one of two hospitals (the Alberta Children’s Hospital and Foothills Medical Centre) or the university, all of which are located nearby. The Discovery Centre employs an open concept and features a full-scale interactive model of the development complete with touch-screen displays and informative collateral as U/D develops. A coffee and refreshment bar and a “cosy corner” for kids are on hand, as are two new show suites by the development’s builders – Brookfield Residential and Truman.

The openings welcomed many neighbours and visitors to the centre, including Mayor Naheed Nenshi, philanthropist W. Brett Wilson and local media. The official public opening on March 11, which celebrated all things local, was well attended. Special activities included a Bricksware custom LEGO mosaic station, balloon-art installations and entertainment, lessons in how to be a friend to the environment, terrarium building workshops, live music from local musicians and local food trucks. “The feel of the event was uplifting, curious and infectious,” Robertson says. “The public attendance was diverse and a reflection of the broad interest from the community. We were thrilled with the end result of both events, and are greatly looking forward for all things to come from U/D continued development as it grows closer to welcoming future residents home.” The first phase of residential construction is set to start this summer, with new residents moving in by late 2018.

ABOVE: ATTENDEES, INCLUDING W. BRETT WILSON, AT THE OPENING OF THE UNIVERSITY DISTRICT DISCOVERY CENTRE.

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ALBERTA’S COMPETIVENESS IN THE CANADIAN ENERGY SECTOR // OIL & GAS

ALBERTA’S COMPETIVENESS IN THE CANADIAN ENERGY SECTOR WHAT HAPPENED TO THE ALBERTA ADVANTAGE? BY LORENA MCDONALD

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lberta’s GDP growth is expected to rise 2.2 per cent after a 2.7 per cent decline in 2016, even though the petroleum industry still faces hurdles amid production cuts and a 20 per cent increase in corporate income tax. This change in tax policy has created challenges in competiveness for the energy sector as recent corporations have bailed out of the oilsands prompting uncertainty about ‘what has happened to the Alberta advantage?’” Not long ago, Alberta had the lowest personal and corporate income tax rates in North America over other jurisdictions. This was deemed Alberta’s “tax advantage,” but as of late the new government tax policies have impacted this benefit. According to a recent Fraser Institute report, the historically low personal and corporate income taxes in Alberta have

increased. Unfortunately, Alberta has dropped from the 14th best place in the world for oil and gas companies to invest in 2014, to 43rd place in 2016. “This has had a great substantial effect on where we rank in terms of tax competiveness,” says Fraser Institute’s senior policy analyst, Steve Lafleur. Changes to both personal and business tax policies in Alberta have impacted the province’s “tax advantage” compared to other provinces in Canada. Specifically, the Alberta government’s overspending and corporate tax increase from 10 to 12 per cent have affected the province’s competiveness. “We use to have the lowest corporate tax rates in Canada, but now Saskatchewan is just about to undercut our advantage with this since B.C is already lower. So, we are also not

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// OIL & GAS

uniquely low in both personal and corporate taxes which is a big departure,” explains Lafleur. During the years that Alberta had lower taxes, there was high employment, economic progress and GDP growth, but “as the government had to contend with large spending increases over the years, it decided to take our tax advantage for granted, and I think it has done significant harm to the province’s competitiveness,” adds Lafleur. He suggests corporate taxes are one of the most harmful taxes for investment. “Ultimately, as much as we like to think that corporate taxes just end up hitting lucky shareholders – in reality they hit the entire economy. A large portion of corporate tax increases are passed off to workers in the terms of lower wages, reduced investments and the options that investors have elsewhere around the world.” One major concern is businesses will move away because of raised corporate taxes in Alberta. “If you’re going to increase taxes, there are other places for people to invest since it’s not that difficult to decide to invest in Saskatchewan instead of Alberta – especially if you are a global oil company,” adds Lafleur.

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Hence, the recent exiting of Royal Dutch Shell, Statoil ASA, Koch Industries and ConocoPhillips from the oilsands has created fear that corporations are leaving for better global economic opportunities.

ABOVE: STEVE LAFLEUR, FRASER INSTITUTE’S SENIOR POLICY ANALYST.

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ALBERTA’S COMPETIVENESS IN THE CANADIAN ENERGY SECTOR // OIL & GAS

“IF YOU’RE GOING TO INCREASE TAXES, THERE ARE OTHER PLACES FOR PEOPLE TO INVEST SINCE IT’S NOT THAT DIFFICULT TO DECIDE TO INVEST IN SASKATCHEWAN INSTEAD OF ALBERTA – ESPECIALLY IF YOU ARE A GLOBAL OIL COMPANY.” ~ STEVE LAFLEUR

“When you think about an energy company – and how they are competitive – there are a few things companies will look at; one is the resource itself, and how expensive it is to extract that resource. In Alberta, we are a higher-cost jurisdiction,” states Todd Hirsch, chief economist of ATB Financial.

the majority of ConocoPhillips’ oilsands and natural gas assets is transformational since the $17.7-billion deal will firmly establish Cenovus as one of Canada’s largest thermal oilsands and gas producers.

Overall, the petroleum industry will need to capitalize on new cost efficiencies and applications in technology to become more competitive on a global scale. Clean energy advancements will force corporations to remain productive and competitive in a low-carbon future. “The challenge is going to be for the industry to continually find ways to reduce costs,” explains Hirsch. “I am not expecting the activity in the energy sector to go back to where it was three years ago because I am not expecting the prices to go back to $80 to $100 levels for another two to five years.”

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Instead major players like Canadian Natural Resources Limited and Cenovus Energy have not backed out of the oilsands. Cenovus’ acquisition of

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ALBERTA’S COMPETIVENESS IN THE CANADIAN ENERGY SECTOR // OIL & GAS

“We believe it will significantly enhance the scale and flexibility of our company and give us a greater competitive edge (because) the acquisition will effectively double our production and reserves base at closing,” says Cenovus’ spokesperson, Sonja Franklin.

This is good news for Alberta’s energy sector, but there is uncertainty about how Canada’s environmental and carbon tax policies will affect the sector’s competitiveness as the new administration in the United States moves away from this direction.

This transaction will increase Cenovus’ 2018 forecast adjusted funds flow by 18 per cent after taking into account the impact of planned asset sales. There is a long-term upside potential. “Our 100 per cent-owned oilsands assets and our new Deep Basin conventional assets are expected to give us a decade of development opportunities,” explains Franklin.

“Now we are hearing President Trump say he’s going to be eliminating some of the environmental regulations in order to improve America’s competitiveness (which) might affect Canada in making us less competitive,” states Hirsch.

Although investment in the energy sector will not rise significantly this year, a positive development is the approved Kinder Morgan’s Trans Mountain pipeline and Enbridge’s Line 3 project. If constructed, Alberta’s export capacity will increase to nearly a million barrels of oil per day.

Nonetheless, Cenovus Energy supports the Alberta Climate Leadership Plan as it tries to become more efficient with the reduction of its inputs while lowering emissions. “A broad-based (and) economy-wide price on carbon is one of the fairest and best ways to stimulate innovation to reduce emissions along the entire energy value chain from production to the end use,” describes Franklin. Though carbon pricing and environmental policies are pushing for changes in the oil and gas sector, a move towards new renewable energy services and technology will create changes in the industry that will influence competiveness in Alberta.

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“With the carbon policy, governments must balance the desire to reduce environmental impact with the need to ensure their jurisdictions remain competitive and continue to attract capital. It will be especially important for Canada to ensure the U.S. does not gain trade advantages due to policies implemented here that make our industry less competitive,” says Franklin. Though the oil and gas sector faces a wave of changes, Premier Notley is trying to promote


// OIL & GAS

HASKAYNE

Executive

MBA Alberta’s energy sector as a clean and green energy leader. With this in mind, the Notley government plans to hike the current carbon tax ($20-a-tonne levy from this January) to $30 next year. “In the short term there might be some drawbacks, but in the long run I believe it will all work its way out because the companies that are making long-term investments will see past these short-term regulatory changes,” says Hirsch. Alberta’s energy sector needs to compete on cost effectiveness with other global sources to remain sustainable in a changing industry. At Cenovus, there have been significant steps over the past several years to ensure the company remains competitive with these measures. Franklin explains, “We reduced our oilsands sustaining capital costs by 33 per cent in 2016 compared with 2015, and we’re down 50 per cent from 2014. Also, we reduced our greenhouse gas emissions intensity from our oilsands projects by a third since 2004 (with) a set target of reducing our upstream GHG intensity by another third by 2026 from January 2016 levels.”

‘‘

The Alberta Haskayne Executive MBA program positively transformed the way I view, approach and manage business problems and opportunities. My transformation to a strategic thinker was the result of a focused, relevant curriculum and access to an extremely talented network of high-achieving business professionals.” Justine Jones, EMBA’13 Strategic Account Executive, Oil Sands Baker Hughes

Where Calgary connects.

Though Cenovus has demonstrated reformation is possible, the fact still remains there are indications of fluctuations in the energy sector as Canada advances in climate change and environmental credibility. The only question is “How will this ultimately affect the future competitiveness of Alberta’s energy sector?”

haskayne-emba.ca ABOVE: TODD HIRSCH, CHIEF ECONOMIST OF ATB FINANCIAL.

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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LESLIE O’DONOGHUE, Q.C. // COVER

Leslie O’Donoghue, RECIPIENT OF THE 2017 DISTINGUISHED BUSINESS LEADER AWARD BY MELANIE DARBYSHIRE

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o those familiar with Leslie O’Donoghue, Q.C., it comes as no surprise she is this year’s recipient of the Distinguished Business Leader Award (DBLA). The list of reasons is long: a successful 29-year career, first as a commercial litigator and then as an executive at Agrium Inc.; a champion for women in law and business; years spent giving back to the community; and a leadership style grounded in optimism. To O’Donoghue, however, it came as a complete surprise. “It took me a couple of days to get over the shock,” recalls the executive vice president, corporate development and strategy, and chief risk officer at Agrium. “I know the list of past recipients well. These are incredible pillars – within their own businesses and also in the community – who have made meaningful impacts. It is very humbling to be even considered on that list.” Indeed, to receive the DBLA is a true honour. In its 25th year, the award is co-presented by the Haskayne School of Business and the Calgary Chamber of Commerce as both a celebration of ethical leadership, community engagement and a legacy to support future leaders. O’Donoghue is the third woman to receive the award.

“It is unique to have the shared commitment of a business school and chamber of commerce working together,” says Jim Dewald, dean of the Haskayne School of Business. “And it is unique to target ethical leadership wherein business leaders are assessed based on their contributions to the enterprise, industry and community.” For O’Donoghue – who is no stranger to receiving awards including Top Deal Maker of the Year by the Canadian General Counsel Awards (2009), one of the Top 100 Most Powerful Women in Canada by the Women’s Executive Network (2010, 2011, 2012 and 2013), one of Alberta’s 50 Most Influential People by Alberta Venture Magazine (2013), and the Queen’s Law Distinguished Alumni Award (2016) – this makes the DBLA special. “It’s an amazing recognition because of the purpose and mission behind the award – inspiring the next generation not only through educational excellence, but integrating that as a foundation for ethical leadership and community engagement.” Of her ethical leadership and community engagement, there is no question. Since joining Agrium in 1999, O’Donoghue has led the organization in a variety of legal, operational and business strategy roles. The company has

OPPOSITE PAGE: LESLIE O’DONOGHUE, Q.C. PHOTO SOURCE: EWAN PHOTO VIDEO

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LESLIE O’DONOGHUE, Q.C. // COVER

Q.C.

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LESLIE O’DONOGHUE, Q.C. // COVER

grown during her time from a regional agricultural player valued at approximately $2.4 (US$1.6) billion into a global leader in agricultural products, services and solutions valued at close to $24 (US$18) billion. Agrium’s merger with PotashCorp, expected to close subject to regulatory approval this year, will put the combined enterprise value close to $50 (US$37) billion. She has also fiercely promoted women at Agrium. In 2006, she established the Agrium Women’s Leadership Group (now the Women’s Inclusion Network), whose aim is to drive great mentors and development opportunities for women within Agrium. “It seems so obvious now, but it was a big step at the time,” she reminisces. “It’s one of the things I’m most proud of because it really has provided a common network for the women here.” The initiative has worked: currently 30 per cent of Agrium’s board of directors are female. In addition, they are working towards a target of at least 15 per cent women in senior roles by 2019. O’Donoghue’s efforts go far beyond Agrium too. Since 2013 she has been on the board of the United Way of Calgary and Area, having co-chaired the charitable organization’s 2012 annual campaign. She is a member of the YWCA YWhisper chair advisory committee, and is the only Canadian sitting on

the leadership council of the United Nation’s SDSN (Sustainable Development Solutions Network). She has participated in the Women’s Executive Network for years as an advisory committee member, public speaker and mentor. She has been a member of the Queen’s Law Dean’s Council and currently sits on the QLAAC (Queen’s Law Alberta Alumni Council). And – as if that weren’t enough – she has been a director of Pembina Pipeline Corporation since 2008. “People always say it’s ‘giving back to the community’ but while I’m giving back I get a lot in return, especially as a leader,” says the born-and-raised Calgarian. “You get much better perspective, better balance, more empathy and gratitude. And I think that’s what a leader ultimately needs to bring to the table, especially in a time of crisis.” “Leslie O’Donoghue was an excellent choice for the 2017 DBLA Award and was selected by the panel of experts after a thorough consideration process,” says Adam Legge, president and CEO of the Calgary Chamber. “An accomplished leader in one of Alberta’s top industries, Leslie is passionate about moving the dial in helping the next generation of leaders, and a tireless advocate for the community.” On June 22, 2017 at a gala awards dinner, O’Donoghue will receive the DBLA. Proceeds from the gala will fund ABOVE: LESLIE O’DONOGHUE (MIDDLE REAR) IS THE EXECUTIVE VICE PRESIDENT, CORPORATE DEVELOPMENT & STRATEGY & CHIEF RISK OFFICER AT AGRIUM AND PART OF AGRIUM’S EXECUTIVE LEADERSHIP TEAM. PHOTO SOURCE: AGRIUM INC.

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SPON D U O R P

SOR

of Stampede Chuckwagon Driver

CHAD HARDEN


LESLIE O’DONOGHUE, Q.C. // COVER

O’DONOGHUE MADE HER WAY FROM ASSOCIATE TO PARTNER IN DUE COURSE. SHE ALSO MARRIED HER HUSBAND, HUGH ROSS (CURRENTLY PRESIDENT AND CEO AT PRAIRIE STORM ENERGY CORP.), AND HAD TWO SONS. “I WAS HAPPY PRACTICING,” SHE PROFESSES. “LEAVING BLAKES WAS SOMETHING I NEVER IMAGINED I’D DO.” scholarships for Haskayne students and new entrepreneurs in the Calgary Chamber’s Emerging Entrepreneurs Program.

consolidate our business at the bottom of the cycle – where the opportunity was.”

A graduate of the University of Calgary herself (she completed a BA in economics in 1984), O’Donoghue’s path to the present was far from given. “From pretty early days I wanted to be a lawyer,” she says of her young self, the second eldest of four siblings. “I had aspirations to be a litigator.”

Integral to this strategy, O’Donoghue oversaw a series of large acquisitions valued at over $4.1 (US$3.9) billion including Royster-Clark in 2006, United Agri Products in 2008, and Australian firm AWB Limited in 2010.

Law was in her Irish blood: her father, Walter O’Donoghue, Q.C., was a prominent corporate lawyer in town. O’Donoghue was wooed. She attended law school at Queen’s University and returned to Calgary to article at Duncan Collins LLP (later Blake, Cassels & Graydon LLP) in 1988. “My early experience was quite different than some,” she recounts fondly, “because it was fun. We worked hard, but it was such a talented group who really enjoyed what they were doing.” Working with other women at Blakes shaped a lasting perspective. “We had a group of women who really looked out for each other. My early experience of working with women, working for women, was so positive.” O’Donoghue made her way from associate to partner in due course. She also married her husband, Hugh Ross (currently president and CEO at Prairie Storm Energy Corp.), and had two sons. “I was happy practicing,” she professes. “Leaving Blakes was something I never imagined I’d do.” But leave she eventually did when, in 1999, as outside counsel to Agrium, the opportunity presented itself. “They were looking for a new general counsel. I think I was at the right place at the right time – and I recognized it.” An ostensibly good move, O’Donoghue remained as general counsel for nine years, her legal portfolio ever expanding to include environment, health and safety, internal audit and government relations. During this time, Agrium embarked on a strategy to expand both its wholesale and retail businesses. “We were focused on being able to grow and

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Agrium’s retail business grew more than tenfold. “We were really well positioned by 2012,” she says. “Our stock had a premium valuation because our integrated strategy [Agrium has both a wholesale and retail business, each of which comprise approximately half of the business] allowed us to weather the ups and downs of the commodity cycle.” At the same time, in 2009, she moved fully to the business side as chief legal officer and senior vice president, business development. In 2011, she became executive vice president of operations and in 2012 assumed her current role. “It’s been a pretty progressive shift,” she acknowledges of the past 18 years. “The organization itself has changed and grown so much. Agrium’s growth has provided me with so many opportunities that wouldn’t have been possible without so many great mentors along the way and the talented team I work with. This has kept me challenged and inspired.” One notable challenge: a 10-month proxy battle with U.S. hedge fund investor JANA Partners LLC, whose aim was to separate Agrium’s retail and wholesale businesses. O’Donoghue was in the thick of the fight. “It forced us to have the integrity and conviction that our integrated strategy would deliver longer-term value,” she says. Agrium eventually won the contest on April 9, 2013. “One of the things I’m most proud of is that many of the large pension funds – like AIMCo and the British Columbia Investment Management Corporation – publicly endorsed our integrated strategy.”


LESLIE O’DONOGHUE, Q.C. // COVER

With the JANA saga over, Agrium remained well positioned. “We’d convinced the market that the integrated strategy would deliver longterm value,” O’Donoghue says. “We ultimately had to deliver.” Thus the merger with PotashCorp, approved by both companies’ shareholders last year. “It’s a transformational company event,” O’Donoghue extols. “It will create a pre-eminent company that can compete on the global scale, with lots of leverage to the upside of the cycle.” Significant synergies will provide value. These days, O’Donoghue spends much of her time planning Agrium’s integration with PotashCorp. She’s still M&A focused, and deals with Agrium’s health, safety and risk metrics. What free time she has is spent with family, particularly her recently widowed mother, her husband, Hugh, and her sons, Brendan and Connor (now aged 21 and 23), and many siblings, nieces and nephews. Though being a mother, wife and business and community leader hasn’t always been easy, she’s proof it can be done. “You have to get the balance right and be absolutely true to yourself.” For O’Donoghue that involves a culture of support at home, work and in the community. “If you get the balance right and have a culture of support, you’re prepared to have some times that are harder than others,” she advises. Integral to her support is Hugh, with whom she celebrates 25 years of marriage this year. “I’m really lucky in that Hugh is my biggest supporter; my biggest fan. He will move his schedule around to accommodate me and I’m expected to do the same – though I’m probably less accommodating,” she chuckles. Her advice to a younger generation of aspiring business

leaders? “Attack challenges with a sense of optimism,” she encourages. “A more optimistic, problem-solving, futureoriented perspective leads to more opportunities personally, but also for your organization and the people within it.” And don’t be too cautious. “Take more risk than you otherwise would. My business success has been, in part, due to great mentors who encouraged me to take more risk than I otherwise would have.” Wise words from a distinguished leader. Though she has many hats – business leader, lawyer, community worker, mentor, daughter, wife and mother, among others – O’Donoghue wears them all exceptionally well. It’s no wonder she is this year’s DBLA recipient.

ABOVE: THE O’DONOGHUE FAMILY SPENDING TIME TOGETHER AND CELEBRATING IMPORTANT MILESTONES PHOTO SOURCE: LESLIE O’DONOGHUE

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Page 1 - Creating Asset Value Page 3 - BOMA Insider Page 6 - Building a Vibrant People-Driven Downtown Page 8 - Real Estate Industry Back in Business

NEWS SUMMER 2017

Creating Asset Value Current and emerging opportunities and threats By Sandy McNair

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or owners and managers of income properties, the primary objective almost always is to preserve and enhance the value of the assets. While current and future income impacts asset value, it is only one of several key drivers. The image, appeal, stability and outlook for the subject property and its peer group are leading indicators to growth in future property income. Another key driver of future property income and property value is the subject property’s strategy, progress and options to battle obsolescence. Failure to remain relevant and appealing to the evolving needs of tenants threatens future property incomes. The asset managers with the best relative performance metrics often are those who successfully anticipate the current and future needs of their tenants and targeted tenants, be it office employee attraction, retention, productivity and innovativeness; retail positioning, mix, traffic and sales productivity; distribution and manufacturing effectiveness and efficiency; or apartment occupants’ comfort, image and value. For more than a decade most all income property markets and participants have experienced declining capitalization rates. The specifics vary by asset class and geographic market but they are all dramatic, almost doubling the value of each dollar of net income over the past 15 years. As we look to the next decade many

expect operational excellence will have a much greater impact on performance than further compression of capitalization rates. Said differently, the focus will be on preserving and growing property income. However, there will be room for specific assets and their managers to outperform. To outperform the pack, these properties and their managers will need to behave differently than the pack.

The Asset Manager’s Toolbox

Imagine two asset managers – one with 20-plus years of experience, many successes and a clear view of which lever to pull to get the desired response from the marketplace and tenants; the other new to the industry, bright, curious and keen to learn. Now, put both of them into a rapidly changing market with unfamiliar and uncomfortable pressures and dynamics. The veteran is guided by conventional wisdom and his/ her historic successes in more comfortable markets. The new entrant is left with common sense and perhaps fresh thinking to address this emerging and different marketplace. If the new entrant was able to earn the trust and respect of the veteran and vice versa, together they could benefit from both history and fresh thinking. Not easy, but likely better than solo thinking.

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Asset Manager’s Toolbox – Property Specific

BOMA Calgary News

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

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Communications Committee

Asset Manager’s Toolbox – Portfolio Strategy

Jon Holmes, Chair, Camfil Canada Inc. Kelsey Johannson, TransCanada Corporation Danielle Smith-Deveau, Strategic Group Christine White, Oxford Properties Group Aydan Aslan, BOMA Calgary

Board of Directors

CHAIR Chris Nasim, GWL Realty Advisors CHAIR-ELECT Lee Thiessen, MNP LLP SECRETARY TREASURER Richard Morden PAST CHAIR Ken Dixon, Strategic Group EXECUTIVE DIRECTOR Lloyd Suchet, BOMA Calgary

Directors

Dustin Engel, Alberta Infrastructure Jay de Nance, RioCan Management Inc. Steve Walton, Oxford Properties Group Todd Throndson, Avison Young Guy Priddle, Cadillac Fairview Marina Nagribianko, Allied REIT Rob Blackwell, Aspen Properties Art Skow, Bentall Kennedy Canada LP Laura Newcombe, GWL Realty Advisors

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.

Looking ahead, what are the other key tools (beyond creative listening and teamwork) that successful asset managers will deploy with care and skill? As the two toolbox graphics illustrate we have one toolbox for property specific and another toolbox for portfolio strategies. Tenant Engagement and Retention – Ideally asset managers would be able to identify those key actions (communication initiatives, service refinements, capital investments) that will have the optimum impact on tenant satisfaction, referral, recommendation and productivity such that the tenant is willing to pay a premium over market rents to stay in the building or move to another building owned/managed by their current landlord. Asset managers who achieve the highest levels of tenant retention are those who have succeeded in: • Systematically engaging their tenants through multiple communication channels to generate evolving insights that are credible, predictive and actionable. • Stepping across the lease line to better understand their tenants’ objectives and strategies.

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• Contributing to their tenants achieving superior levels of employee retention, attraction and productivity. • Building teams with a culture and commitment to being responsive, competent, flexible, courteous and accessible.

intangible – people, ideas, innovations, brands, teamwork, communication, strategy and focus. These are challenging times but it is also a great time to be an asset manager. SANDY MCNAIR IS THE DATA CURATOR AT ALTUS DATA SOLUTIONS A DIVISION OF ALTUS GROUP LIMITED. SANDY.MCNAIR@ALTUSGROUP.COM

Building Image and Positioning – High-performance employees choose their employer based upon increasingly divergent criteria. Employers have increasingly divergent cultures and strategies to achieve success and to win their battle for talent. Asset managers who view their space and their tenants’ needs as homogeneous do so at their peril. The traditional view “one size fits all” may more accurately be “one size fits almost no one.” Asset managers who outperform know choices must be made in positioning each asset to specific segments of the business community. Communication initiative, service refinements and capital investments are most effective when they are focused on a clear image and positioning. Merits of Scale – Competencies of focus and scale matter more than economies of scale. The ability to recruit, retain, grow and inspire key people generates advantages that far exceed the ability to buy things for less than smaller firms can. The ability to focus on a carefully chosen segment of the marketplace and create a brand with attributes that resonate with your tenants, targeted tenants, employees, suppliers and other stakeholders is the foundation to outperformance.

Outperformance from the Intangible

Income properties are very physical – glass, concrete, steel, tile, stone and more and include complex mechanical, electrical, HVAC, elevator and other systems. Success requires expertise with the physical; however outperformance requires success with the

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By Lloyd Suchet, Executive Director, BOMA Calgary

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n early March, the City of Calgary and Calgary Economic Development hosted a Downtown Economic Summit, bringing business leaders, civil society and other relevant experts together to brainstorm ways to kick-start activity in our downtown. The immediate context, obviously, is the vacancy rate resulting from the latest oil price decline. The more long-term and systemic context is the realization that downtown Calgary as it stands is mostly a place people work, and less a place people live or spend their leisure time. Attendees astutely recognized the short-term economic challenges with the oil and gas sector are mostly out of ours hands, but the long-term ability to turn downtown Calgary into a vibrant hub of activity is fully within our control. This matters because there is a symbiotic relationship between the various types of buildings and people who call downtown their community. Employment is what drives demand for office space and certain personal services and restaurants. Downtown Calgary certainly has a number of notable restaurants, bars and retail providers, not to mention Stephen Avenue Walk. But we all recognize when workers leave for evenings and weekends, downtown is missing that activity and vitality, and it has a real impact on the types and volume of business that decide to locate themselves there. One part of the solution is then to increase the amount of people living downtown. A population base is able to sustain far more businesses than office workers who commute can. This is where the symbiosis comes into play, because as the growth in residents justifies new business, the availability of those businesses justifies increased demand for residences in that area. This is the dynamic at play in what we consider some of the most vibrant downtowns in the world – predominantly young people who are the natural market for downtown condominiums demand an ever impressive and eclectic mix of retail and services, which in turn stimulates more demand for residences. The other part of the solution identified by summit attendees was the creation of great public spaces that attract activity to downturn during offpeak office hours. And while there are varying opinions on the feasibility of a new conference centre or sports facility, it was acknowledged these facilities attract people at relatively infrequent intervals, while the public spaces envisioned here are more in line with parks, as well as cultural or festival spaces. Placemaking, a term used by urban planners, alludes to designing spaces that are at once tied to the community and the landscape in which they are located, but have an interesting component that attracts people be it just to sit down or to engage with it in some way. This concept is informative to any discussion about creating great public spaces to attract people downtown. In short, people are the key ingredient to creating a buzz around downtown. People are what attract new and innovative businesses, and people and businesses are what attract other people be it as residents or as a destination for the afternoon or the evening. And to the core question the summit sought an answer to, people are what will drive long-term economic growth and the sustainability of downtown Calgary as our central business district.


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Pondering Tomorrow By David Parker

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Campus Lands where Brookfield and Truman both have major residential complexes ready to roll. Inglewood/Ramsay has also earned the confidence of developers where Torode Realty Advisors has completed designs for three projects: 60 residential units above a floor of retail at 9th Avenue and 13th Street; another mixed-use building on 11th Street just to the north of the Ramsay Design Centre; and a 90-unit block to be built on the site of the Penguin Car Wash on 8th Street SE. At the entrance to Inglewood, construction will begin shortly on the mixed-use development across from the Arts on Atlantic Gallery, and the east end of the avenue is where the YW (YWCA Calgary) has selected a two-acre site for its new hub facility that will bring in a lot of new people to the area. I also see new construction on Macleod Trail with medical buildings by OPUS Corporation, the 32,000-square-foot Macleod Professional Centre at 39th Avenue; and a 60,000-squarefoot project called Calgary Poplar Centre to be built on the former Porsche Centre by Rise Construction Services. Nice to see out-of-towner Rise from Kelowna investing in this city; another is Graywood Developments based in Toronto. CEO Stephen Price says he has been looking for several years for a prime piece of land in Calgary to develop. His company purchased the multifamily 23 acres of Shawnee Slopes and are in a local hiring process. It expects to have the 3,000-squarefoot presentation centre open later this month. Yes, we do worry about office vacancies in the downtown core but LET US ANALYZE AND REPORT ON YOUR HOME, OFFICE just step into East Village and you’ll OR BUILDING WITH A COMPREHENSIVE ASSESSMENT! feel better about the future. Better still drop into the new Oxbow at Our primary focus is indoor air quality; mould, asbestos, Kensington Riverside Inn to relax lead and hazardous materials. We are trying to make a with a nice glass of wine or its difference in peoples lives by making their homes and brewed-by-Big Rock Oxbow Kolsch work places healthier and a safer environment. and ponder tomorrow.

here are a lot of crossed fingers for good news by the two teams vying for the contract to design and build the new, long-delayed Calgary Cancer Centre at the corner of 16th Avenue and 19th Street NW. Unfortunately only one of two shortlisted entrants – headed by EllisDon and PCL – will win the bid to construct the centre that will require a massive building excavation, a 1,650-stall parking structure, roadways and complete integration of the new facility with the Foothills Medical Centre. While there will only be one winner, the good news is the project will create hundreds of jobs as they busily get it completed by the proposed date of 2020. But there are many other projects on the go in this city creating a little more excitement than we have had of late. Just up the road from the cancer centre, the yellow giants have been busy on the 200-acre parcel of West

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SETTING THE STANDARD FOR

10 YEARS BY RENNAY CRAATS

United Roofing • 10 Years • 1 57


Photo by 3iii inc (Massi).

Back row left to right: Walter Salva- Chief Estimator Commercial Projects United Roofing (Edmonton) Inc., Charles Barnicott - General Manager, Commercial Operations United Roofing (Edmonton) Inc., Dave Montagnon- Branch Manager/ Partner United Roofing (Edmonton) Inc., Patrick Genest- CEO- Operator United Roofing Inc., Chris Vermette- Project Manager Residential Division and Simon Benoit - Chief Estimator Commercial Project. Front row left to right: Katie Ewanchuk- Senior Accountant - CPA, Stephany Allard- Residential Operations Manager, Taran Sandhu- Human Resources / Accounting and Shandler Kohlman- Junior Estimator Commercial Projects.

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lot has changed for United Roofing in the past 10 years. From their humble beginnings in 2007, the people who have made United Roofing the company it is today have honed their skills, built up a solid reputation, and created a thriving company. In only a decade, United Roofing Inc. has grown from a three-man operation to the benchmark in the industry. “For the first couple of years it was only me on the roof, doing estimates, and doing customer service to get the business,” says Patrick Genest, owner/operator of United Roofing. Since then the company has grown, evolving to include commercial projects in 2012 and expanding operations to Edmonton in 2014. The small company has swelled to over 100 staff in the two offices and United Roofing has established itself as the go-to roofer for general contractors and private owners across Alberta. United Roofing goes above and beyond for customers, providing services in a variety of areas in order to make the construction process easier for them. On the commercial side, the company does flat roofing and reroofing, foundation waterproofing, below-ground work, siding and building envelop while on the residential it offers services in slope roofing, siding, eavestroughs, soffits, fascia as well as occasionally garage doors and windows for insurance claims. “We try to get the building from the ground up. Then our client only has to work with one trade for all their building envelop needs,” he says. United works for individuals, businesses, general contractors and smaller developers on custom builds, but regardless of the client, the roofers bring the same

high standards and exceptional level of service to every job. A team lead is assigned to each project, giving clients one point of contact for the duration of the job. While reachable by phone much of the time, if a lead happens to not be available, the tight-knit management team can step in. They all have a good understanding of every project and are able to answer questions or troubleshoot any issues that might arise. “The team in the office is reasonably small so we always talk to each other. We have good communication inside the office so even if it’s not our project, we know enough to be able to deal with it if something comes up,” says Simon Benoit, commercial estimator with United Roofing. The crews are knowledgeable and experienced as well, so they are a great resource to tap in the event of on-site questions. Each crew member is well trained, licensed and insured and is dedicated to getting every project done right, on time and at a competitive price. In an industry known for high employee turnover, United Roofing enjoys a group of loyal, long-term employees. Management treats employees like family and makes sure they feel appreciated and valued. In return, employees embrace the corporate culture of customer service, quality and hard work. “At the end of the day, if you don’t have good employees you don’t have a business,” says Stephany Allard, residential operations manager at United Roofing. United’s employees are the best in the business and the company’s greatest asset. Their dedication and investment in the success of the company has contributed to its growth over the past 10 years. From a full-time safety officer implementing

United Roofing • 10 Years • 2


COR practices to a CPA streamlining project costs to the fantastic crews on the roofs, United Roofing and its staff have become a benchmark for other roofers. And the goal of these roofing professionals is simple: to exceed expectations, and it has earned a solid reputation in the business over the past decade because of it.

“ARCA sets the standard for roofing practice. So again, it’s another proof of quality: when you hire an ARCA contractor, you know we have to meet those standards to even be a member,” says Benoit. The United team is devoted to the business and wants to raise the profile of roofing and exterior specialists industry wide.

“We try to improve the quality on every job we do. We don’t cut any corners. We have the highest standards in the industry,” says Dave Montagnon, Edmonton branch manager and partner. Those high standards apply to its partners as much as its staff. United uses only the best products with proven warranties from the best manufacturers in the industry. United aligns itself with those companies whose philosophy matches its own. This gives clients peace of mind knowing their roofing and exterior needs are being met and that a job as important as a new roof will be done properly. The company’s pride in a job well done has been validated by its status as a preferred vendor at many insurance companies and by its membership in the Alberta Roofing Contractors Association (ARCA).

Del Fisher Insurance, Calgary’s Premier Business Insurance Broker and Contractor Surety Bonding Specialists.

Del Fisher Insurance Inc. would like to thank United Roofing for their partnership and Congratulations on your 10th Anniversary!

We would like to extend our appreciation to United Roofing, and best wishes for future growth and success.

Congratulations!

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United Roofing • 10 Years • 3


By acquiring memberships and being recognized by insurance companies, United is ensuring the trade is viewed as a reputable, professional segment of construction. With 10 years under their belt, they have shown United Roofing is established and reliable. Clients often share their stories of fly-by-night operators who swoop in, do a terrible job, overcharge, and then are never seen again. Many potential clients with this experience are understandably cautious when hiring a roofer. But by doing superior work, providing quality service and following up with customers long after the crews have left, United Roofing is changing how roofers are viewed, one client at a time. It’s obvious the effort is working, as the company has many repeat roofing customers. In order to serve these and future customers better, the company is looking at the next decade as one of growth. The management is always looking for new opportunities to evolve and improve their services. United strives to be ahead of competitors on all aspects of business, including safety and product innovation, keeping abreast of changes in the industry to stay ahead of the curve. “We’re always trying to stay aware of what the industry needs and if there’s a need, we try to meet it,” says Benoit.

United Roofing has been meeting needs and exceeding expectations for 10 years, and in the next 10 it plans to expand into other service areas to bring its unique services to more customers. “We work hard on every site for every job we do and we are working harder to continue providing that same level of service that our customers expect. I think so far we’ve done a pretty good job,” says Genest. With United Roofing’s practice of hard work, dedication and solid relationships, it has done better than pretty good, and the best is yet to come.

Calgary - (403) 870-2753 | Edmonton - (780) 245-2753

unitedroofing.ca United Roofing • 10 Years • 4


Join us in celebrating Calgary’s Leaders Awards. We will be honouring 20 individuals for their business acumen, contribution to community and to their industry. These are the people who are making Calgary a great city to live and work in. Business in Calgary will celebrate the 2017 winners at our 10th Annual Awards Gala, and our July issue will feature the Leaders and their companies.

Wednesday, June 28th | 6pm | The Westin

Contact us for tickets

Nancy Bielecki | 403.264.3270 x 230 | nancy@businessincalgary.com To stay informed on details for our event, visit www.businessincalgary.com/leaders

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THE NEW FARM AND THE NEW FARMER // AGRICULTURE

THE NEW FARM AND THE NEW FARMER M A N A G I N G T O D AY ’ S C A P I TA L- I N T E N S I V E FA R M BY JOHN HARDY

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ow ya gonna keep ’em down on the farm?

Finally! After generations of the clichéd stereotype, there’s an answer: business savvy, tech smarts and lots of money. The traditional life of farmers – with long and exhausting days, endless chores, the up-and-down whims of the market and the economy, and dealing with the good and bad of weather – has not only changed, it has been compounded and complicated. The 2017 Calgary farmer’s life encompasses constantly changing technology, skyrocketing land costs, sophisticated equipment and environmental regulations while still dealing with the unpredictability of weather, long days, endless chores and the whims of the market. Regardless, Canada continues to be one of the largest and most respected agricultural producers and exporters

in the world. Although the proportion of the Canadian population and GDP related to farming fell dramatically during the 20th century, it remains a solid component of the Canadian economy. “The basics of farming are timeless,” says Graham Drake, president and CEO of Cervus Equipment, with 64 companyowned and managed locations in British Columbia, Alberta, Saskatchewan and Manitoba. “It is about growing crops, raising livestock and being the food source to feed the world. Where farming has drastically changed over the years is the scale and amount of production. “Business expertise and tech awareness are critical to how successful farmers can be in applying advancements to their particular farm. While this has always been important in farming, the amount of information available and how

PHOTO SOURCE: CERVUS EQUIPMENT, SRO

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THE NEW FARM AND THE NEW FARMER // AGRICULTURE

it can significantly improve a farm operation makes it even more critical.” According to Lynn Jacobson, president of the Alberta Federation of Agriculture (Alberta’s largest producer-funded general farm organization comprised of farmers, ranchers and agricultural enterprises), today’s farmers face entirely new and different challenges to success. “There’s the complexity of agriculture business. The business savvy to recognize opportunities to diversify, which crops to grow and knowing where the industry is heading and the vital role of technology. Farming 2017 means managing interest rates, the economy, agriculture policy and business risks. “And there are significant costs, like the price of land, equipment, the price of agriculture products and more. Farms are getting larger. Particularly with the increasing price of farmland, more farmers will rent more of their land than own it.

aspect of farming and transforms farming into a complex big business. “Without the technology advancement we would not have today’s precision agriculture,” Jacobson points out. “Thanks to technology, farmers now produce more product per acre, and can work a larger land base per person, than ever before.”

“And the consolidation of operations also raises other problems. The larger the farms get, rural populations shrink. It is going to be very hard for many of the small towns or hamlets to stay viable communities.”

Drake has diverse farming expertise and knows first-hand the positive impact of technology. “It has made many farming operations easier and much more efficient. The more sophisticated farmers can plan their operations ahead of time and have data that can be easily applied during the seeding and other operations.

Farmers and most agriculture professionals agree technology is the industry’s most important change. It impacts every

“The use of data is revolutionizing agriculture. Farmers can record and collect information on all of their farming

ABOVE: FARMING, FROM INSIDE THE CAB. PHOTO SOURCE: CERVUS EQUIPMENT, SRO

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THE NEW FARM AND THE NEW FARMER // AGRICULTURE

JIM WOOD, THE CHIEF SALES AND OPERATIONS OFFICER OF ROCKY MOUNTAIN EQUIPMENT, ALSO EMPHASIZES THE VALUE OF TECHNOLOGY, NOT ONLY AS KEY COMPONENTS OF FARM EQUIPMENT BUT FOR THE MANY FUNCTIONS OF CONTEMPORARY FARMERS.

activities, and use the information to more effectively plan, improve yields and reduce costs,” he says.

prices are at record highs – approximately $5,000 per acre of non-irrigated land.

Jim Wood, the chief sales and operations officer of Rocky Mountain Equipment, also emphasizes the value of technology, not only as key components of farm equipment but for the many functions of contemporary farmers.

There are also some unique generation challenges, like getting qualified (and interested) labour. The average age of the Alberta farmer is 55, often complicating what’s called the trans-generational transition.

“Technology has added tremendous efficiencies to assist producers in making much more informed decisions to either increase their production, reduce input costs or both. Due mostly to new technology, farmers now have the ability to produce more product per acre and diversify their crops. Even as a basic math formula, they constantly maximize acreage to maximize product-per-acre yields.”

The Calgary area’s Larry Woolliams is a hard-working, married father of two who loves his job and is enthusiastic about his calling: “Being one with Mother Nature, loving the smell of the soil and getting to be my own boss.”

Today’s farms, particularly in the Calgary region, are not only complex operations but, by business necessity, they are big and getting bigger. And the spiking cost of farmland continues to be a contentious farm issue. As tracked in the 2016 Farmland Values Report by Farm Credit Canada (FCC) – Canada’s leading agriculture lender – although Canadian farmland values increased by 7.9 per cent, just in 2016, and farmland values continue to strengthen, their rate of growth continues to slow overall. Due primarily to overall healthy farm incomes, low Canadian interest rates and a low loonie, Calgary region farmland

Woolliams is a plugged-in and fifth-generation, contemporary farmer. He operates the 8,000-acre malt barley, peas and canola Woolliams Farms, just outside Airdrie. “In many ways, farming is a very, very big business. Land is expensive. And staying up with new technologies and new ways of farming is critical. There are constantly new and serious learning curves and it’s important to stay positive. “There’s an app for everything, and you have to be open minded and not afraid to try new things. I’m a detail guy and I love the changes! Technology is a tremendous tool for farming. I can do a lot of the work on my phone and iPad. But technology still hasn’t come up with a way to predict or

ABOVE: JIM WOOD, CHIEF SALES AND OPERATIONS OFFICER, ROCKY MOUNTAIN EQUIPMENT. BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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manage a hailstorm or some other weather surprises,” he grins and shrugs. “A significant challenge in transitioning is not only the cost of operating farms and the capital required to own larger farms, but also the financial acumen to run larger operations,” Drake cautions. “Implementing new technology to improve a farm’s performance can be a challenge for more traditional operators.” The success of contemporary farming not only requires acreage and business smarts but the state-of-the-art (and expensive) equipment it takes to get the work done. “Being a dealer for the latest farm equipment just isn’t good enough,” Wood adds. “We are now optimization specialists, partners in technology and focused on reducing costs and increasing production by optimizing the farmer’s equipment. “Whether it’s auto guidance, section control, variable rate applications, yield, monitoring and the overall productivity of the farm operation, equipment is crucial. It’s what we do! Just the auto steer/guidance feature is complex and costs

about $15,000. And with a combine in the $600,000 range or a $500,000 sprayer, it’s vital that the farmer optimize the value and the investment.” “Most high-demanded pieces of equipment are seasonal,” notes Jeff Bilow, precision AG manager with Cervus Equipment in Calgary. “In the spring, it’s seeding equipment. In summer it’s self-propelled nutrient and protection application equipment. And in the fall, the demand turns to harvest and combines. All of the equipment have fullyintegrated technologies, allowing the producer to perform most of the equipment functions from inside the cab.” Just like the Jurassic cliché about starving artists is ancient history, the struggling, parched and lonely farmer sitting on a chugging tractor is long gone. Managing today’s farm operations is capital-intensive. With significant financing needs like land values, technology, sophisticated and pricey equipment, increasingly expensive chemicals, quotas and other factors, the investment required for a viable commercial farm operation, particularly in the Calgary region, is huge.

PHOTO SOURCE: ROCKY MOUNTAIN EQUIPMENT

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ONLY QUALIFIED CANDIDATES NEED APPLY – OR NOT! // CORPORATE DIVERSIFICATION

ONLY QUALIFIED CANDIDATES NEED APPLY

– OR NOT!

DIVERSIFYING YOUR EMPLOYEE BASE BY ERLYNN GOCOCO

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hen it comes to creativity and coming up with new and innovative ideas, a common phrase is “think outside the box.” This mindset now applies to the way companies are recruiting top talent. Diversifying a company’s employee base seems to be more common. In fact, the statement “only qualified candidates need apply” no longer applies, in some cases. “Bringing new people with different thoughts into an organization to challenge the status quo is typical,” says Ben Bazinet, VP of human resources at Horizon North Logistics Inc. “Recruiting is usually done from the same industry and location where the company operates, which can really limit the number of fresh ideas the individual brings. Will you receive some new ideas? Probably. Will you receive revolutionary ideas? Probably not.”

Bazinet believes hiring from different fields, industries and locations brings dramatically different thought processes, ideas and opportunities to an organization – thereby diversifying the employee base. His company’s recruitment methodology implements the practice of finding executive and senior-level employees from unconventional fields, industries and locations. “Most of the time, we find that the individuals we need are neither in our industry nor in our backyard.” The end result has led to success. For example, when looking to improve their manufacturing operations, Bazinet says, “We turned to the automotive industry where margins are razor thin and quality programs, such as Six Sigma, are second to none.” Both their vicepresident of manufacturing and their director of quality

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ONLY QUALIFIED CANDIDATES NEED APPLY – OR NOT! // CORPORATE DIVERSIFICATION

“WE TURNED TO THE AUTOMOTIVE INDUSTRY WHERE MARGINS ARE RAZOR THIN AND QUALITY PROGRAMS, SUCH AS SIX SIGMA, ARE SECOND TO NONE.” ~ BEN BAZINET

different experiences and viewpoints to your team will provide the business with a more robust foundation for innovation, decision-making and growth.” However, according to many hiring managers, while there are benefits to hiring outside of a company’s field, industry and/ or location, there are also risks.

come from this industry and have been instrumental in improving the quality of products while driving cost down. And, in order to optimize technology across their organization, they hired a senior IT leader from the commercial airline sector where scheduling and ticketing systems have to be flawless. “This individual was instrumental in standardizing our technology platform, reducing operating costs and driving new software solutions to differentiate our product offering,” he adds. Finally, when they needed expertise in sales automation and standardization, Bazinet found an individual living in Singapore who built and operated an international sales division for an American multibillion-dollar software firm. “This individual was able to implement the same rigour in our sales organization in record time.” Tim O’Connor, CEO of business consulting firm Results Canada Inc., believes people tend to focus more on the challenges of recruiting from outside a company’s industry than the benefits. He says adding employees from completely different fields, industries or locations is, in fact, “a major opportunity to strengthen your business.” The key advantage, says O’Connor, is diversity which is essential for the health of any business. “People who bring

When a company recruits from outside industries or from uncommon or unproven ground, it is referred to as “wildcatting” and the recruits are called “wildcats,” says Chris Blanar, principal consultant at Manufacturedge, a Calgarybased consultancy that supports companies in their efforts to make transformational change. He goes on to add one of the benefits of hiring an employee from outside the usual corporate hunting ground is that the new recruit can provide a unique perspective and/ or an objective assessment of corporate culture, strategy, policies, processes and methods. “Given a voice, these views can support or serve to alter the internal perception of the strengths and health of the company. This is the most common feedback that I receive as an operational transformation consultant.” These so-called wildcats, says Blanar, can bring solutions to problems their previous industry faced and overcame, but, their new industry has not. This can provide a significant competitive advantage. But he also cautions that in order to capitalize on the opportunity presented by the wildcat perspective, a company must have both an environment where employees are welcome to express and convey their observations and ideas and a management team who listens to and acts upon employees’ comments. “It is easy and common to bring a wildcat into the

ABOVE: BEN BAZINET, VP, HUMAN RESOURCES, HORIZON NORTH LOGISTICS INC. PHOTO SOURCE: HORIZON NORTH LOGISTICS INC.

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ONLY QUALIFIED CANDIDATES NEED APPLY – OR NOT! // CORPORATE DIVERSIFICATION

fold and then ignore their attempted contributions despite the cost of recruiting and training candidates.” Further to that, Blanar says, “Companies [often] capitalize on the closure or mass downsizing of competitors and noncompetitors by recruiting from the newly available talent pool. The tendency is to hire en masse which brings the outside perspective, but is accompanied by prior company baggage … strategy, policies, methods. This can be both a positive and negative influencer.” The primary challenge, according to Bazinet, is convincing a potential candidate to join an organization. “First, it would require them to make a significant relocation. Second, the individual may not understand why we want to hire them as they may not see how their skill set can be beneficial to the organization.” Cultural challenges are also presented when bringing an employee from a different organizational culture. For Bazinet, cultural background has been a challenge for both the new employee and the existing base. “This needs to be tightly managed if it is to succeed. Also, changes to the status quo are more significant when this type of individual joins the organization. The change management and communication processes have to be extremely strong in order to be able to manage through this.” O’Connor adds certain job requirements can be learned relatively easily such as industry-specific knowledge and technical skills. “However, skills more related to talent and capability, such as problem solving, thinking strategically, recognizing patterns and related opportunities, building effective teams, etc., typically can be applied to a variety of industries. These skills are harder to acquire but more valuable – if you identify them in recruits from outside of your industry, the opportunity to acquire these skills will often trump short-term challenges that may be encountered as they get up to speed in a new area. “Consider the highest-value employees you have now. Why do you value them? Is it their technical skills? Probably not. Typically, it’s the value they bring in these other skills,” O’Connor points out. He adds many companies aren’t diversifying their employee base enough. “It’s a huge missed opportunity that brings new thinking into a business. A common practice from one industry

“COMPANIES [OFTEN] CAPITALIZE ON THE CLOSURE OR MASS DOWNSIZING OF COMPETITORS AND NONCOMPETITORS BY RECRUITING FROM THE NEWLY AVAILABLE TALENT POOL.” ~ CHRIS BLANAR could be a significant innovation in another, and the company who introduces it could have the strategic advantage.” But not everyone is seeing a shift towards hiring outside of a company’s industry, field and/or location. Ron Marcelo, resource manager at Ranstad Engineering, says, “Companies are not necessarily concentrating on diversifying their employee base. Rather, they are focusing on ensuring the people that they bring in fit with the culture they are trying to build. With the economic climate in Calgary being what it is, it’s an unfortunate luxury hiring managers have – being able to pick and choose from a roster of qualified people. I think that a lot of companies that are still profitable, despite what the market has presented, have re-evaluated their operation and have adjusted accordingly. As such, having the talent in place that can nurture that has taken a higher priority than having a diverse team.”

ABOVE: CHRIS BLANAR, PRINCIPAL CONSULTANT, MANUFACTUREDGE. PHOTO SOURCE: MANUFACTUREDGE

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CALGARY HOUSING MARKET TURNING AROUND // REAL ESTATE

CALGARY HOUSING MARKET

Turning Around ECONOMIC INDICATORS SHOW POSITIVE TREND MOVING FORWARD

BY BUSINESS IN CALGARY

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fter a challenging two years struggling through a vicious economic downturn, Calgary’s housing market appears to have turned around and is now poised for growth the rest of 2017. Whether resale homes, new homes or the rental market, indicators point in a positive direction, suggesting the real estate market has plowed through the economic storm and can see the light at the end of the tunnel. Quite simply, demand is returning to the market. “The economy in Calgary has been getting stronger. We are seeing growth in employment. Income growth has also been positive. And we’re also seeing some growth in population especially in the young adult age group. That’s important in supporting housing demand,” says Richard Cho, principal market analyst in Calgary for Canada Mortgage and Housing Corp. “We’re seeing just more confidence in the market. Consumer sentiment has also improved which helps with people getting off the fence and going ahead with their buying decision.” For the real estate industry, a consumer’s perception of what could happen or what may happen in the future is very important. It has a huge impact on buying decisions. That perception is often formed through what the consumer is digesting each day in the media. But this year the news on the economic front has been positive pointing to stability in

the economy, the price of oil, as well as employment, income and population growth. “We feel the bottom was reached some time in 2016 and so 2017, we expect, will be a year where the market continues to recover. Markets for most of last year were in a buyer’s market but we are starting to see that changing in 2017,” explains Cho.

ABOVE: RICHARD CHO, PRINCIPAL MARKET ANALYST IN CALGARY FOR CANADA MORTGAGE AND HOUSING CORP. PHOTO SOURCE: CANADA MORTGAGE AND HOUSING CORP

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JUNE 2017 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM


CALGARY HOUSING MARKET TURNING AROUND // REAL ESTATE

Like sports, real estate is really all about the numbers. Statistics will clearly tell you what’s happening. The turnaround could be seen early this year with rebounding from the uncertainty and trepidation of the past two years. In the first quarter, MLS sales of 4,192 were up 20.29 per cent from the same period last year. The benchmark price ($438,300) dropped by 2.06 per cent but the median price ($430,000) rose by 2.38 per cent and the average price ($482,065) increased by 3.05 per cent. Also, in the first quarter, single-detached housing starts in the Calgary region were recorded at 800, up from 600 for the same period a year ago. The multi-family sector rose from 907 last year to 1,279 this year. A key indicator of the city’s current economic condition is the downtown office market. Whether the economy is hot or cold, the number of people filling downtown office space will clearly show the trend. The past two years has seen a horrific plunge in the state of the commercial real estate sector downtown with soaring vacancy rates. Those rates are at historic low levels, offering a glimpse of the number of people who have lost their livelihood, particularly in the oilpatch, due to the collapse of oil prices. Less people working, especially in the well-paying oil and gas industry, means less demand for homes. But the tide is shifting. A report by Avison Young shows the downtown office vacancy rate of 23.9 per cent in the first quarter was steady and unchanged from the last quarter of 2016. It represented positive news as the market took its first steps in halting its overall downward trend. Downtown absorption – the net change in occupied office space – for the first quarter was positive at 3,000 square feet. This figure represents the first positive quarterly absorption since the downturn began in 2014. That is indeed good news for the local residential real estate market. The housing market transition appears to be consistent with trends in the labour market, says Ann-Marie Lurie, chief economist with the Calgary Real Estate Board. Stability in the labour market is important and there are

good signs of that this year. Although the city has not replaced all the jobs lost in the past two years, and there are still a lot of people out of work, the overall trend is positive and can help build confidence in real estate. “We’re moving in the right direction; all the indicators are there,” says Lurie. The changing economic environment is lifting the cloud of uncertainty for potential homebuyers. Guy Huntingford, chief executive officer of BILD Calgary Region, which represents developers and homebuilders, says the real estate market depends on three things – price point, where homes are being built and the type of product. “There’s definitely still a healthy, robust group of people looking for homes,” says Huntingford. Although in-migration to the city has slowed, flocks of people had relocated prior to the economic downturn. “All those people came here, they settled and now they’re in the market to look for homes because people don’t necessarily buy right away…. The industry for the most part is very positive.”

ABOVE: ANN-MARIE LURIE, CHIEF ECONOMIST WITH THE CALGARY REAL ESTATE BOARD. PHOTO SOURCE: CALGARY REAL ESTATE BOARD

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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BUILDING CAPACITY IN BUSINESS AVIATION // AVIATION

Building Capacity

IN BUSINESS AVIATION BY DEBRA WARD

M

ost Albertans know business aviation contributes to the province’s economy – flying into remote locations to support resource-based industries, helping sell Alberta goods and services internationally, and connecting remote communities to the world. But, there is another aspect to business aviation that is equally important and has the potential to provide great benefits – manufacturing. There are a lot of elements to aerospace and aircraft manufacturing including the airframe, engines, landing gear, interiors, avionics and more. Historically clustered in Quebec and Ontario, other provinces including Alberta are working to develop their own capacity in some or all of these areas and get a piece of that pie. And there are a lot of reasons why this may be one of the smartest investments any province could make. To start, there’s a solid foundation. Aerospace/aircraft manufacturing has been considered a strategic sector in Canada for many years. That means it has had the weight of government investment and policy behind it, pushing it forward. And the investment has paid off with Canadian companies that have become marquee brand names around the world: Bombardier, Pratt & Whitney and CAE among others. Canada’s aerospace sector is comprised of some 700 companies generating direct annual revenues of more than $28 billion in 2014. The industry is highly integrated into the global value chains and exports 80 per cent of its production globally. A large part of this is business aircraft: airframes, engines, simulators, landing gear and finishing. Canada leads the world in business jets, engines and simulators. The high demand for Canadian-build business

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JUNE 2017 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

aircraft has positioned Bombardier Business Aircraft as the industry leader in new business jet deliveries. Pratt & Whitney Canada estimates that every second a P&WCpowered aircraft takes off or lands somewhere in the world. CAE, the world’s leading supplier of civil flight simulators, directly supports business aviation through its global network of training centres and innovative technologies to deliver simulation-based training tools along with its experienced instructors. The success of Canadian aviation companies rests on a number of factors, all of which help develop the sector even further. Canadian companies and post-secondary institutes invested $1.8 billion in 2014 in aerospace-related research and development – a critical metric in a world where countries vie for the best and brightest minds to create innovative technologies. The research is supported by a nationwide network of provincial post-secondary educational institutions that offer aviation and aerospacerelated courses. Many of Alberta’s leading educational institutions offer these learning opportunities, providing advanced degrees, diplomas and certificates in a wide variety of fields that include aeronautical engineering, science, robotics and other advanced technologies, imaging and drafting, design, avionics and maintenance engineering, among others. Students are also exposed to cutting-edge research, including machine learning, nanotechnologies and more. Governments support many different sectors as they diversify and strengthen their economy and export base. Looking at the benefits of aviation and aerospace, it is clear there are many reasons why Alberta would build capacity


BUILDING CAPACITY IN BUSINESS AVIATION // AVIATION

in this key sector. For one thing, with an average salary of $91,900, aircraft manufacturing and related opportunities are one of the most lucrative sectors in the country, boasting some of the highest wages in Canada for skilled labour. Moreover, the skill sets and expertise it requires are transportable from jobs in other sectors – something that is particularly desirable as the province works to diversify its economic base. Alberta’s commitment is showing a strong return. According to the province’s website, the industry contributes $1.3 billion in revenue annually to the provincial economy, is home to 170 aerospace and aviation companies, and employs over 6,000 highly-skilled Albertans. Among other niche capabilities, Alberta-based companies provide maintenance, repair, overall and modifications of civil and military aircraft, made up of small companies that create highly-specialized products. Alberta is home to global brands such as Viking, manufacturer of the Twin Otter and other iconic Canadian aircraft, and houses Pratt & Whitney Canada’s assembly and test plant in Lethbridge. The province has 25 per cent of Canada’s 1,900 geomatics, navigation and global-positioning firms, exporting 60 per cent of its wireless communications and sensortechnology products to U.S. and European markets. These successes come as no surprise to Rudy Toering, president of CBAA, who has been noting the growth for

ALBERTA AVIATION OPERATORS

Avmax Group Inc.

Adventure Aviation Inc.

Calgary Police Service

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 1 - ASTAR 350 SD2, 1 - ASTAR 350 B2

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

Airco Aircraft Charters Ltd

Ed Schlemko Tel: 780.890.7780 Piper Navajo Chieftain, Beechcraft King Air 100, Beechcraft 1900D www.aircocharters.com

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, Agusta A109S Grand

Don Parkin, Executive VP Tel: 403 291 2464

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

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

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

years. “Alberta has always been a linchpin for business aviation; both in how Alberta companies use their aircraft and now, how the province is becoming a player on the manufacturing side.” Toering describes the long-standing and strong relationship between CBAA and the Alberta business aviation community. “We work with the Government of Alberta to support their efforts to develop the export market, and our annual national convention is held in Alberta frequently,” he says. CBAA was last in Alberta at its Calgary convention in 2016, where it broke attendance records. “It was one of the best-attended and overall highest-quality conventions we held in years,” says Toering. “It’s a testament to the dedication and passion of the business aviation sector in Alberta. “With this year’s national convention, we are staying close to our Alberta base, holding our event in Abbotsford, B.C. in August. For the first time, CBAA has partnered with other major aviation groups to create a one-of-a-kind event that marries the best of CBAA’s convention, exhibit and static display of aircraft with one of North America’s biggest airs shows and a major aerospace conference,” Toering says. “The response has been very enthusiastic and I see this as part of how Western Canada is stepping up its presence in aerospace. I look forward to welcoming my Alberta colleagues to CBAA 2017.”

E-Z Air Inc.

Matt Wecker, Owner; James Pantel, Operations Manager/Chief Pilot/Chief Flight Instructor; Andrew Mills, Director of Maintenance Tel: 780.453.2085 Aircraft Operated: R22, R44; Aircraft Serviced: R22, R44, R66, BH06

Edmonton Flying Club

Ralph Henderson, President Tel: 780-800-9639 www.flyefc.ca 4 G1000 C172’s, 1 Standard gauge (FEGU), 2016 Piper Seminole with G1000

Edmonton Police Service Tel: 780.408.4218 Aircraft Operated: (2) EC120

Enerjet

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

Guardian Helicopters Inc.

Kenn Borek Air Ltd.

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

Million Air Calgary

Charlyn Stang, General Manager Tel: (403) 718-0447 Toll Free: 1-855-718-0447 www.millionair.com info.cyyc@millionair.com

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

Brent Knight, Business Development Toll Free: 1.866.359.6222 www.flynca.com King Air 200, Beech 1900D, Dash 8 100/300, Avro RJ 100

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, Bell 212, BO 105, Astar 350 BS2

OpsMobil

Integra Air

Peregrine Helicopters

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

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

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

Phoenix Heli-Flight Inc.

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

Sunwest Aviation Ltd.

Richard Hotchkiss, President/CEO Toll Free: 1.888.291.4566 Passenger Aircraft Operated: (1) Falcon 900EX, (2) Challenger 604, (2) Challenger 300, (2) Citation Sovereign, (1) Gulfstrem 150, (1) Hawker 800XP, (1) Lear 55, (3) Lear 45, (1) Lear 35, (4) Dash 8 300, (1) Dash 8 200 (6) Beech 1900D,3 Metro 23, 2 King Ai

R1 Airlines Ltd.

Matt Lomas General Manager Toll Free: 1.888.802.1010 www.r1airlines.ca Aircraft Operated: (2) Dash 8-100, (2) Dash 8-300, (2) CRJ100/200, (1) Dash 8-200

Ridge Rotors Inc.

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

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

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DIRECTORY // AVIATION Westjet Airlines Ltd.

Toll Free: 1.888.937.8538 www.westjet.com Aircraft Operated: Boeing Next Generation 737-600, 737-700, 737-800, Bombardier Q400 NextGen, Boeing 767-300ER

ALBERTA CHARTER OPERATORS CHARTER FIXED WING Adventure Aviation Inc.

Michael Mohr, Owner Tel: 780.539.6968 (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

North Cariboo Air

Bailey Helicopters Ltd.

Northern Air Charter

Black Swan Helicopters Ltd.

John Green, Vice President Operations & Charters Toll Free: 1.866.359.6222 www.flynca.com King Air 200, Beech 1900D, Dash 8 100/300, Avro RJ 100

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-3

Sky Wings Aviation Academy Ltd.

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

R1 Airlines Ltd. Absolute Aviation

Ron VandenDungen, Chief Flight Instructor Tel: 780.352.5643 Cessna Citation X (3), Beechcraft King Air 200 (1), Beechcraft King Air 350 (2), Cessna Citation Ultra 560 (4), Cessna CJ2 (1), Hawker 800A (1), Bombardier Learjet 45 (1), Bombardier Learjet 40 (1)

Aries Aviation Service Corp

Marvin R. Keyser, President Tel: 403-274-3930 sales@ariesaviation.com Aircraft Operated: LR36 Learjet, PA-31 Navajo

Matt Lomas General Manager Toll Free: 1.888.802.1010 www.r1airlines.ca Aircraft Operated: (2) Dash 8-100, (2) Dash 8-300, (2) CRJ100/200, (1) Dash 8-200

Sunwest Aviation Ltd.

Richard Hotchkiss, President/CEO Toll Free: 1.888.291.4566 Passenger Aircraft Operated: (1) Falcon 900EX, (2) Challenger 604, (2) Challenger 300, (2) Citation Sovereign, (1) Gulfstrem 150, (1) Hawker 800XP, (1) Lear 55, (3) Lear 45, (1) Lear 35, (4) Dash 8 300, (1) Dash 8 200 (6) Beech 1900D,3 Metro 23, 2 King A

Calgary Flying Club

Logan Ketchum Tel: 403-288-8831 www.Calgaryflyingclub.com Flight training/rental heading Cessna 152, Cessna 172, PA30, Citabria, Cirrus SR20

Canadian North

Nick Samuel, Senior Director, Charters Tel: 403 705 3118 www.canadiannorth.com nsamuel@canadiannorth.com Aircraft operated: (3) Dash 8, (5) 737-200 Combi, (10) 737-300

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

Enerjet

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

Integra Air

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

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Tempest Jet Management Corp

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

Brent Knight Tel: 403.219.2770 Cell: 403.370.2750 www.baileyhelicopters.com Aircraft Operated: Bell 212, Bell 206 B, AS 350 B2/BA, AS 350 B3

Kim Steeves Tel: 1-780-338-2964 purchasing@blackswanhelicopters.com (2)AS350FX2, (1)B206B, (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

Delta Helicopters Ltd.

Evan McCorry, VP International Sales & Marketing Tel: 1.250.656.7227 www.vikingair.com info@vikingair.com Viking is the OEM for the Twin Otter Series 400, and fully supports the legacy de Havilland fleet, DHC-1 through DHC-7. Twin Otter Series 400

ALBERTA CHARTER OPERATORS CHARTER ROTARY WING Ahlstrom Air Ltd.

Kyle Wadden, Operations Manager / Chief Pilot Tel: 403.721.2203 Cell: 403.844.0978 1 - ASTAR 350 SD2, 1 - ASTAR 350 B2

Albatros Aircraft Corp.

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

JUNE 2017 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

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) AS-350B2, (11) AS-350FX2, (2) EC-120B

Peregrine Helicopters

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

Phoenix Heli-Flight Inc.

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

Remote 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

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

E-Z Air Inc.

Ridge Rotors Inc.

Matt Wecker, Owner; James Pantel, Operations Manager/Chief Pilot/Chief Flight Instructor; Andrew Mills, Director of Maintenance Tel: 780.453.2085 Aircraft Operated: R22, R44; Aircraft Serviced: R22, R44, R66, BH06

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

Slave Lake Helicopters Ltd.

Canadian North

Nick Samuel, Senior Director, Charters Tel: 403 705 3118 www.canadiannorth.com nsamuel@canadiannorth.com Aircraft operated: (3) Dash 8, (5) 737-200 Combi, (10) 737-300

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

Sterling Aviation Services Inc. Louise Dunlop, President Tel: 403.250.6707 www.Sterlinginflight.com operations@sterlinginflight.com Inflight Services, cabin attendants, training, ac interiors

Genesis Aviation Inc.

Edmonton Police Service Tel: 780.408.4218 Aircraft Operated: (2) EC120

George Kelham, President; Debbie Kelham, Owner Tel: 780.849.6666 Aircraft Operated: (3) AS350 B2, (1) Bell 206 BIII, (1) EC120, 2 AS350B3e’s

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

Great Slave Helicopters Ltd.

Sloan Helicopters Ltd.

Prairie Aircraft Sales Ltd.

Chris Basset, President; Corey Taylor, VP Global Operations 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, BK 117 850D2, Bell 412EP, Bell 407, Bell 205 A1++, Airbus 350 B2, B3, B4

Guardian Helicopters Inc. Viking Air Limited

OpsMobil

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

Highland Helicopters Ltd.

Patrice BelleRose, Director of Operations Tel: 604.273.6161 www.highland.ca Aircraft Operated: (13) 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

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

Kathy Wrobel, President Tel: 403.286.4277 www.prairieaircraft.com sales@prairieaircraft.com Prairie Aircraft Sales is the EXCLUSIVE DEALER FOR: Manufacturers of Pre-owned aircraft, as well as Blackhawk Modifications. Market appraisals, importing and exporting and leasing.

Hopkinson Aircraft Wood Buffalo Helicopters

Andrew Hopkinson, President Tel: 403.291.9027 Fax: 403.250.2459 www.hopkinson.aero sales@hopkinson.aer Aircraft: Specializing in commercial and corporate aircraft

Air Partners Corp.

FRACTIONAL OWNERSHIP & JET MANAGEMENT

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, Bel 412

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 Gulfstream Astra SPX, Phenom 100/300, Challenger 300/605, Global 5000

Airsprint Inc.

Judson Macor, Chairman & CEO Toll Free: 1.877.588.2344 www.airsprint.com flywithus@airsprint.com Selling Interests in Legacy 450 & Citation CJ3+


Leading Business JUNE 2017

IN THIS ISSUE... • Policy Bites - Market Access for Alberta’s Agriculture Products: Should Alberta’s Industry be Optimistic or Concerned? • Upcoming Events • Member Profiles

Hear from some of the world’s smartest minds from the world of innovation, business, technology and global trends that will challenge the way you do business. June 5-6, 2017 BMO Centre CalgaryChamber.com

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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2017 Board of

Directors Executive Chair: David Allen, Founder & President, Situated Co.

Policy Bites Market Access for Alberta’s Agriculture Products: Should Alberta’s Industry be Optimistic or Concerned?

Vice Chair: Phil Roberts, President, Vintri Technologies Inc Past Chair: Denis Painchaud, International Government Relations Treasurer: Wellington Holbrook, Chief Transformation Officer, ATB Financial CEO: Adam Legge, President and CEO, Calgary Chamber

Directors Linda Shea, Senior Vice-President, AltaLink Bill Brunton, Vice President, Habitat for Humanity, Southern Alberta Mike Williams, Executive Vice-President, Encana James Boettcher, Chief Idea Officer, Fiasco Gelato Brent Cooper, Partner, McLeod Law LLP Desirée Bombenon, President & CEO, SureCall Contact Centres Ltd Mandeep Singh, Audit Partner, Deloitte Jason Hatcher, Managing Principal, Navigator Greg Garcia, President and CEO, Calgary Elite Roofing Brian Bietz, President, Beitz Resources Management Adam Legge – President and CEO Michael Andriescu – Director of Finance and Administration Kim Koss – Vice President, Business Development and Sponsorship Scott Crockatt – Director of Marketing and Communications Rebecca Wood – Director of Member Services Zoe Addington – 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

T

rade protections are becoming increasingly popular. With Brexit, public rallies against trade deals and the election of a U.S. administration that has openly touted the benefits of trade restrictions, one thing is all too clear: globalization and trade have come under fire. At first glance, this appears to be bad news for Alberta’s, and Canada’s, agriculture industry. With a relatively small provincial and domestic market, the industry largely relies on access to global trading partners. Ninety per cent of Canada’s agri-food farmers and food processors rely on foreign markets, with over 300,000 jobs being directly and indirectly supported by these exports. In fact, one in two jobs in crop production, and one in four jobs in food manufacturing, depend on exports. Given the rising popularity of trade protections and agriculture’s reliance on external markets, should producers and businesses be concerned? Let’s look at some current developments with Alberta’s most important trading partners. Canada While attention is often focused on international trade, there are large benefits that can be made from addressing the regulatory barriers that limit businesses from accessing markets across Canada. Estimates suggest reducing internal trade barriers could inject between $50 to $130 billion into Canada’s economy. Barriers affecting Canadian agriculture include: provincial packaging and labelling requirements, rebate and grant programs, and different regulations for trucking and meat processing. Fortunately, the Canadian Free Trade Agreement – coming into effect July 1, 2017 – provides measures to address Canada’s internal trade barriers. Within the agreement, a regulatory body has been established to work with provinces and territories to identify and harmonize costly regulations. While little red tape will be cut come July 1, the Canadian Free Trade Agreement is a step in the right direction for reducing Canada’s internal trade barriers. Europe The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) is set to kick in July 1, 2017. Simply put, this is Canada’s largest and most significant trade agreement since NAFTA. CETA represents a big opportunity for Alberta’s agribusiness sector, removing 94 per cent of the EU’s agriculture tariffs. Alberta’s livestock and agri-food producers will see much greater access to European markets through greater duty-free allowances. The agreement will allow for roughly 65,000 tonnes of duty-free beef (333 per cent quota increase), generating up to $600 million for Canadian beef producers annually. In fact, two-thirds of Canada’s increase in beef exports are expected to come from right here in Alberta. While much of the European agri-foods market will remain protected from Canadian producers, greater market access to the world’s largest agriculture importer represents a significant opportunity for Albertans. United States As of late, most news coming from the United States on trade – border adjustment proposals, tariffs on Canadian lumber, withdrawal from the Trans-Pacific Partnership

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(TPP) – has been a source of concern for Canadian businesses. However, recent announcements targeting Canada’s protected dairy industry is likely good news for business in Alberta. In fact, dairy protections have been very harmful for many Canadians by raising prices, increasing input costs for food processors and limiting exporters’ access to foreign markets. The renegotiation of NAFTA may finally spell the end for this costly policy. Emerging Markets By 2020, more than half of the world’s GDP growth is expected to occur in emerging markets such as China, India and countries in the Asia Pacific. According to the Conference Board of Canada, over the next decade emerging economies will increase their demand for food by five per cent each year. As these economies continue to grow, individuals will not only demand more food, but their diets will rely more on high-quality protein sources. In fact, China is expected to increase their demand for protein by three to four per cent per year. This bodes well for Alberta agriculture. Alberta producers are well established in emerging markets with 44.4 per cent of total agriculture exports flowing into Asia. Furthermore, Alberta is world-renowned for high-quality and safe agriculture commodities and food products. Especially with the U.S. withdrawal from the TPP, Canadian policy-makers must continue to push for greater access to markets in China, India and the Pacific. Reduced regulations at home, greater access to the world’s largest agriculture importer, U.S. targets on Canadian dairy protections, and the increasing demand for food and high-quality protein sources in emerging markets all stand to benefit a large portion of Alberta’s agriculture industry. Even in the face of rising calls for trade protections, it appears agriculture in Alberta is well positioned to capitalize on new market opportunities.

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

June 5-6, 2017 Onward BMO Centre A conference that brings together some of the world’s smartest minds in innovation, business, technology and global trends that will challenge the way you do business. What if you challenged everything? Challenged your business. Challenged your future. Challenged your thinking. Challenged your assumptions. Discover the possibilities at this year’s Onward Summit. Over two half days, you’ll hear from some of the smartest minds in business, innovation, technology and global trends. Speakers like technology strategist, renowned entrepreneur (with ties to Yahoo, Google and Singularity University) and bestselling author of

Salim Ismail, best-selling author of Exponential Organizations.

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Upcoming Events Con’t For details and to purchase tickets for any of the Calgary Chamber’s events, please visit CalgaryChamber.com. Exponential Organizations, Salim Ismail. Other headliners include Dirk Ahlborn, CEO of Hyperloop Transportation Technologies; Debbie Landers, VP at IBM; world-renowned nanotechnology expert, Carlo Montemagno; and Ryan Holiday, international marketing guru. From new modes of transportation that will change the way we live, to self-learning computers that mimic the human brain, to disruptive marketing and emerging technology that is transforming economies on a global scale, you will learn about cutting edge ideas that will keep you one step ahead. On June 5 and 6, join the Calgary Chamber for the Onward Summit presented by Shaw Business and challenge the way you do business. Register at OnwardYYC.com.

June 29, 2017 Leaders Classic Silver Springs Golf Club Not your average golf tournament The Calgary Chamber’s Leaders Classic is one of Calgary’s most popular golf tournaments. Fantastic food from some of Calgary’s most popular vendors, amazing prizes, the best of Calgary’s business community and a round of golf on a top-rated course, it doesn’t get much better than this. One of the largest-attended golf tournaments in the city, Leaders Classic is not only the best networking you will do all year, but is the ultimate client-hosting experience that gets your brand in front of top community and business leaders from a variety of industries and company sizes. Register at CalgaryChamber.com.

2017 Small Business Week Calgary Nominations now open! One of the best ways any Calgarian can support our small business community is to nominate a small business for a Small Business Week Calgary Award. Past winners of these awards often go on to become pillars of our community and include businesses like Village Brewery, Spolumbo’s, Fiasco Gelato, Alberta Boot Company, Blaskin & Lane and PK Sound. This year there are eight award categories: the BDC Emerging Growth, Breakout Business, Innovation, Indigenous Entrepreneurship, Customer Service, Community Impact, Environmental Stewardship and the People’s Choice. Nominations are open between May 11 - June 16, 2017. Nominate your favourite Calgary business or apply on behalf of your company today at SmallBusinessWeekCalgary.com.

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AMVIC Licensed


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

Delta Airlines

What started as a humble, little aerial cropdusting operation called Huff Daland Dusters in 1924, has now grown into one of the world’s largest global airlines helping more than 160 million travellers get to the places they want to go each year. Delta helps companies of all sizes take flight from small businesses to corporate enterprises. Whether a business relies on aviation communication, charter flights, cargo shipping, technical and training services or simply needs to make business travel more efficient – they’re ready to help. For more information, visit Delta.com.

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

Member name

Years as a member

CBN Commercial Solutions

70

Stephen Johnson Chartered Accountants

35

Husky Energy Inc.

25

Bank of Canada - Prairie Reg. Office

20

BW Technologies by Honeywell

20

WTS Logistics Inc.

20

Simmons Edeco Inc.

15

Armour Equipment Sales and Rentals Ltd.

10

Dow Chemical Canada ULC

10

Innova Power Solutions Inc.

10

Cobb Counselling + Consulting

10

Elevated HR Solutions

80

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Husky Energy

Husky Energy is one of Canada’s largest integrated energy companies. Headquartered in Calgary, Husky operates in Western and Atlantic Canada, the United States and the Asia Pacific Region, with upstream and downstream business segments. The company’s conventional oil and natural gas assets, heavy oil production and upgrading, and transportation infrastructure in Western Canada supports major growth opportunities in the Asia Pacific Region, the oilsands and the Atlantic region. Husky’s balanced growth strategy focuses on consistent execution, disciplined financial management, and safe and reliable operations. For more information, visit HuskyEnergy.com.

CBN Commercial Solutions

This month, CBN Commercial Solutions is celebrating 70 years as a Calgary Chamber member. With more than a century of experience, CBN Commercial Solutions (formed through the merger of McAra Printing and Unicom Graphics – two of Calgary’s oldest printing companies) is an industry leader in innovative printing solutions. Offering the highest quality products and highly dependable services, their team of trained professionals deliver creative communications, marketing and business solutions that help captivate your audience, and make your brand stand out. Whether it is a direct mail project, or a display graphic, CBN Commercial Solutions offers high quality offset printing as well as fine colour digital printing based on HP Digital Offset Colour, allowing you to print on demand, and personalize your message without sacrificing print quality. For more information, visit CBNCS.com.


Winning with Teamwork Let’s Ask an EOer

By Melanie Darbyshire

“T

he team” and “teamwork” have become not only popular business buzzwords, there’s a consensus they inspire, motivate and, as many consultants and business leaders suggest, pay off. However, as with many other aspects in business, achieving an effective team can be easier said than done. “There are a number of common obstacles to teamwork,” says Tim O’Connor, an EO Calgary member and CEO of Results Canada, a Calgary-based business consulting firm. “Poor communication, unclarified roles, lack of leadership, ineffective or absent goals and processes, and poor accountability – these are often interrelated.” According to Shawn Freeman, founder and CEO of TWT Group, specializing in small business IT solutions, and an EO Calgary member, “A big part of an effective team is trust. Not only does trust allow staff to work independently but when a team member needs help, or has to offload a task, they will do so quickly, if they trust their peers.” Building teams and teamwork are often not only leadership skills but a matter of personal style. “Give people ownership of the direction of the team,” suggests Julie Rubin, executive director of Elevated Learning Academy, president of InnoTech College, and an EO Calgary member. “We have all-team meetings where everyone contributes to the agenda and the direction of how agenda items are addressed. And people vote on the priority level of each agenda item, and the items with the most votes get addressed first.”

Most business schools and consultants emphasize the power of delegation. “There are often misconceptions around delegation and one is the myth of the born delegator,” O’Connor points out. “Becoming a truly effective delegator is something people need to learn; they are not simply born knowing how to do this. They also need to approach delegation not as a skill but rather as a process that involves interaction with other team members toward effective teamwork. It’s not about taking work off your plate and making it someone else’s responsibility. It’s about maintaining responsibility, oversight and accountability while utilizing your team members to help get the job done. “Learning to delegate effectively is one of the most important challenges for any organization.” “The value in delegating is allowing others to feel like you trust them and their input is important,” Rubin says. “There’s also great value in the potential efficiency it can result in by spreading the work around.” There is a consistent – unwritten – rule about achieving teams and teamwork in business. It’s rooted in company culture, and it takes a lot of work. “We have a no-babysitting rule,” Freeman adds. “It helps people feel like they don’t have to convince others to do a good job. It also builds confidence in each other, so people on the team never have to follow up to make sure something was completed to our standards. “We hire for culture first and train/skill if it’s needed. If the culture works, then the new member will be a quick learner and the team will gladly assist them with anything they need.”

Contributing Members:

Upcoming Events: June 7 • Leadership Breakfast Series June 13 • President’s Year End Party

Tim O’Connor

Julie Rubin

Shawn Freeman

CEO of Results Canada.

executive director of Elevated Learning Academy and president of InnoTech College.

founder and CEO of TWT Group.

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


BEYOND WEATHER // GOLF

Beyond Weather THE CHALLENGES OF CALGARY GOLF

BY JOHN HARDY

A

lthough the 2017 Calgary golf season started with weather that ranged from terrific to amazing, some things never change. There continues to be the classic golf challenges: technique, equipment and some notorious (let’s just say tough) Calgary-area fairways, greens and holes to strategize, aim and manoeuvre around. Some newbie golfers still blame their clubs or some specific golf course features that have been around for years. But savvy Calgary-area golfers accept the quirks of local courses and buy into the wise golfer mantra that personal technique is a constantly evolving science that can always be improved. “The absolutely number one golf problem is distance,” says Terry Carter, owner and one of the busy pros at Calgary’s National Golf Academy and resident pro at Calgary’s public courses. “Golfers often say that all their clubs result in the same distance. It’s a very common technique flaw that pros call casting – a bit like fly-fishing because the golfer flicks their wrists, trying to hit the ball. But unlike fishing, the wrist action interferes with the whipping motion that is necessary to hit the ball far. To create proper power, the golfer must have solid fundamentals and the understanding of the swinging motion to get the entire body to wind-up, coil, unwind and properly hit the ball.”

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He adds a technique secret that’s not really such a secret, after all. “The power move that most golfers lack is called lag. It’s the hidden move in the golf swing and the angle between the shaft and the left forearm in the downswing. The angle stores all the power, releases it into the ball and gets the distance.” Carter offers a teachable moment reminder about another key technique aspect: ball flight. “It is the actual direction of the ball. The key factor is where the club face is pointed when the ball makes contact with the club. With right-handed golfers, if the face is closed the ball will go left. If the face is open, the ball will go to the right. “The golfer must understand that the club swings around our body and the face of the golf club actually opens (rotates) in the backswing and closes in the downswing. This opening and closing of the club face is not a forced motion,” he explains. “This is created as a result of the proper swinging motion and strong fundamentals.” While the cliché about some bad golfers blaming their equipment is true, most golf pros caution that proper equipment is legit and vital, because poorly-fitted equipment is a proven obstacle to enjoyable, good golf. A golf club has three components: the head, the shaft and the grip. The pros emphasize it’s critical to make sure all


BEYOND WEATHER // GOLF

three parts of a club (including the putter) and all equipment is properly fitted to the individual’s body and swing. The good and challenging not-so-good about some popular Calgary-area holes is usually a personal curse but also notorious in the local golf world. Just as Calgary’s terrific location-location is legendary around the world, Calgary golfers know about the spectacular views from some Calgary golf hot spots. Like #13 at Shaganappi Point, with the dazzling view of downtown Calgary. The #12 of Redwood Meadows, the picture-perfect par 3 over a lake with the Elbow River behind the green. And the Calgary Golf and Country Club’s #18, with the downhill par 4 overlooking the Elbow River. For many Calgary-area golfers, who are proud but take the

ok es Bo tim ine e l te on

Golf the BC RoCkies

view from the golf course for granted (as most Calgarians take random views of the Rockies for granted), the true focus is on some infamously tough Calgary holes. Like the #1 hole at Shaganappi, a short 240-yard par four with an island green surrounded by water. Or the #13 hole on the Priddis Green Raven course, a challenging 437-yard, dog leg left, par 4. “The #9 hole at Hamptons is tough,” even PGA pro Terry Carter admits. “It’s also a very long par 4 that slants right to left, so you have to hit a shot that starts left, fades back to the right, in order to land in the fairway softly. “And the Forest #7 at the Glencoe is deceiving. It’s a picturesque and beautiful par 3, but one of the toughest holes on the front nine. Playing 229 yards from the championship tees, the tee shot leaves little room for error.

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BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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A LEADER IN THE FIELD FOR 20 YEARS BY RENNAY CRAATS

Treeline Well Services || 20 Years 85


I

n the 1990s, Western Canada was booming and demand for service rigs was high. Treeline Well Services recognized the opportunity this held for them and in 1997 it expanded its abandonment company to include service rigs to meet that demand. Within a few years it had four rigs and had found its niche. “We were a smaller, mom-and-pop operation,” says Dan Bryson, president of Treeline Well Services. “Then we started

Congratulations to Treeline Well Services team on 20 years of success!

• Well Servicing Rigs • • Drilling Rigs • • Mobile Pump Trucks • • Trailer Mounted Rigs • • Trailer Pump Units • • Masts • • Draw Works • • Rig Moving System •

www.ksmrig.com 780-955-3456

• Ancillary Equipment •

2 || Treeline Well Services || 20 Years

concentrating on different areas and since 2013 we’ve become really aggressive and focused on key markets.” Treeline divested of its abandonment company in 2006 and by the following year it boasted eight service rigs that followed projects throughout the entire life cycle of the well – from completions to workovers to abandonments. Since then the company has grown slowly and steadily. It has evolved with the ever-changing industry, which led to it retiring its older legacy rigs and replacing them with a fleet of 22 new-generation service rigs. “We now operate one of the newest rig fleets in Western Canada. The average age of our rig fleet is only six years old,” says Bryson. “We are also the largest privately-owned service rig company operating in Western Canada.” The new equipment was necessary to match the vision and direction of Treeline. Over the past several years, Treeline has aggressively grown in the Grande Prairie and Fort McMurray areas, targeting the key markets of deeper, liquids-rich Montney plays and long-term thermal SAGD projects. Over the years, the company has established a solid reputation for safety and quality as well as for having the best equipment. Because of that, Treeline has attracted business and signed many longterm contracts with the top major players in the business.

Photo by 3iii Studio (Massi)

Back row; Steve Ward - HSE Manager, Ron Zamrykut - Payroll Manager, Tannis Barr - Office Administrator, Matt Dagert - V.P. Sales & Marketing, Evan Remenda - Sr Sales & Marketing Representative. Front Row; Dan Bryson - President, Ben Docktor - CEO, Les Yakemchuk - Vice President. Missing from photo; Stuart Watson - Business Development, JD Watt - Business Development.


The new equipment was necessary to match the vision and direction of Treeline. Over the past several years, Treeline has aggressively grown in the Grande Prairie and Fort McMurray areas, targeting the key markets of deeper, liquids-rich Montney plays and long-term thermal SAGD projects. Unlike the old days of interchangeable crews on standard rigs, these projects require highly-specialized equipment and highlytrained field hands to handle the deeper and more complex horizontal wells and thermal requirements. Treeline is currently designing a heavy double package geared for Montney deep horizontal work in the Grande Prairie area and it recently deployed a new customized rig for a major SAGD customer in Fort McMurray. This rig incorporates many innovative features tailored to the needs of its customer including automated tongs, pipe handler and pushing capability as well as the ability to accommodate 24-hour operations. As Treeline specializes in customized contracted rigs, it has been able to adapt and change to customers’ needs quickly. The company has survived the downturn better than most, with utilization sitting at around 97 per cent this winter compared to its competitors running between 35 and 45 per cent. In fact, well licensing was at a 22-year low last year but Treeline has been setting records, month after month since October, for rig hours and utilization.

through its aggressive approach and access to capital has grown in a time when many other companies have been struggling just to stay afloat. “Our strength has come from our focus and the ability to adapt to the changing landscape of the service rig industry. Everyone talks about specialized drilling rigs and going farther and deeper but no one mentions the service rig that has to come back to that well over and over again. The needs of our customers and the market have changed and we will continue

Congratulations to Treeline Well Services on their 20 year milestone! We greatly value your partnership and wish you many more years of continued success.

Despite the volatile economy, the company has used the past few years to grow, adding great people to the team, as well as upgrading and building new rigs. The company capitalized on the lack of investment and innovation by other operators and

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Treeline Well Services on 20 great years! #120, 134 Queens Dr Red Deer, AB T4P 0R4 P:403-341-5959 • F:403-348-5866 #4, 10602-79 Ave Clairmont, AB T0H 0W0 P: 780-832-9899 • F:780-831-8099

We are an equipment technologies firm producing leadingedge solutions to reduce manpower and save our clients money. Our North American manufacturing presence allows us to take care of your pipehandling, rig automation, and or refurbishment needs. info@highwoodglobal.com www.highwoodglobal.com 1-844-397-7711

Treeline Well Services || 20 Years || 3


Treeline can give customers what they need for each job, promising the best equipment, performance and quality service. It also provides customers with the best people in the business. After all, the company was built not only by quality rigs but by quality people to operate and manage them. to be a leader in this progression,” says Matt Dagert, vice president of sales and marketing.

big enough to do the job well but small enough to give personalized attention to clients.

Treeline can give customers what they need for each job, promising the best equipment, performance and quality service. It also provides customers with the best people in the business. After all, the company was built not only by quality rigs but by quality people to operate and manage them. Management empowers employees to voice their opinions so they are involved in the direction the company takes. That respect and consideration has paid off, as many employees have stayed for more than a decade and some since the inception of the company.

The motto for the company says it all: “Great iron, even better people.” The majority owner, Ben Docktor, has preached for decades that you always want to surround yourself with great people, and Treeline strives to do just that. Its people are quality on and off the rig. Treeline emphasizes the importance of being involved in the communities in which it operates and has established joint ventures with the First Nation communities in the Wood Buffalo Region.

“You want to be part of a company that is more like a family, where you have a say. That’s what happens here,” says Les Yakemchuk, vice president of Treeline. The professionals in the office find the work and build the best equipment in the patch, but it’s the crews in the field who allow the company to truly prosper. “We get the first job for the rig. The guys out there have to get the others,” says Stuart Watson, business development at Treeline. That is how Treeline Well Services established a foothold in the industry. The sales team sells a customer a rig, and a positive experience leads customers to commission additional rigs. The company now has about 200 people working in the field with another 15 administrative and managerial staff supporting them in the office. Customers know if they have questions, there is someone who will pick up the phone and get them an answer. Treeline is

“This has been instrumental in us growing that SAGD area. The oil companies want more inclusion of the local communities and want them to prosper from the activity. We’re focused on the important stuff,” says Bryson. Over the past two decades, the important stuff – respecting the areas in which they operate, fostering relationships and providing the best product and services possible – has allowed Treeline Well Services to evolve from a small company to a leader in the industry. As Treeline celebrates 20 years, it looks ahead to continued strong relationships with customers working on SAGD projects and in Montney plays, and to providing innovative, efficient equipment to make those customers more successful. “The industry has changed so we’ve changed with it,” Bryson says. “We’ll remain focused, build as needed and continue to grow.” And with Treeline Well Services’ unrivalled service levels, innovative equipment and superior crews in the field, the service rig company is sure to remain a force in the industry for decades to come.

750, 333 - 11th Avenue SW Calgary, Alberta T2R 1L9 Toll free: 1-844-344-RIGS (7447) • Phone: (403) 266-2868 • Fax: (403) 264-6725 www.treelinewell.com 4 || Treeline Well Services || 20 Years


CALGARY TELUS CONVENTION CENTRE IS MORE THAN A SPACE Seamless. That’s how Ann O’Donnell describes the relationship between the Calgary Women’s Emergency Shelter and the Calgary TELUS Convention Centre. For the past three years, the two organizations have worked together to host Turning Points, CWES’s annual fundraising gala. The 2017 edition of the event attracted more than 540 people and raised over $617,000. Just as importantly, O’Donnell adds, is that the gala helps create greater understanding of family violence and abuse in the community. “Abuse is not just physical,” says O’Donnell, CWES’s Director of Resource Development and Communications. “There are many other forms, such as emotional or financial. The CTCC is helping us get this message out and has taken a stand against family violence and abuse.” The CTCC also helps promote the Turning Point Gala, which in turn highlights the many services and programs offered by CWES. These include a 24-hour family violence helpline; community and outreach, men’s counselling; a court program; and a healthy relationships program. “Five per cent of the work we do is at the Shelter facility,” O’Donnell says. “Many people don’t really know who we are and the CTCC helps us convey our many programs and services. To me, that is priceless.” As well, she says the CTCC “becomes ‘ours’ for the night, opposed to us being a visitor in a venue—and everything flows and everyone is so accommodating.” And the CTCC’s facilities allow CWES to attract and reach people it’s never been able to reach before. “We are so much more than four walls,” says Suzan Hauszner, CTCC sales manager, U.S. & International. “We’re a business that cares about and works to support our community.”

Hauszner has a dual role with CWES: it is one of the CTCC clients and she is one of its volunteers. For April’s Turning Point gala, she secured several donations for the event’s silent auction. “These kinds of partnerships feed our souls and it’s amazing to see our facilities used to do such important work in the community and for families.”

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Re-imagining Calgary’s Future by Building on our Past BY MARY MORAN, PRESIDENT & CEO

A

ll cities face challenging times, as Calgarians know well after two years of a painful recession, but it is how they respond that matters.

It’s the ability to imagine a prosperous future for Calgarians that will define our city’s fate. A recently completed Business Confidence Survey for Calgary Economic Development and the Calgary Chamber revealed 80 per cent of business owners and executives believe there has been a fundamental change in oil and gas markets. The respondents were unequivocal that Calgary’s economy must become more diversified. Great cities are always reinventing, recreating, and re-imagining themselves. Calgary is no different. The opportunity for Calgary resides in building on key strengths – our people, our history of entrepreneurial thinking and the long tradition of embracing innovation and technology. Our future prosperity may also depend on the ability to apply the lessons from our past. Over the years, the energy sector in Calgary has developed an exceptional ecosystem for below-the-ground innovation. The ecosystem has made Canada one of the world’s leading oil producers and it was achieved through collaboration of companies large and small, governments, post-secondary institutions and organizations like the Canada’s Oil Sands Innovation Alliance.

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innovation too. Technology is no longer a single sector – these days digitization is increasingly a way of doing business. Our knowledgeable workforce and decades of experience with world-scale projects in the energy sector that are reliant on real-time data and remote locations is why Calgary is a prime market to play a role in the development of the Industrial Internet of Things. Tech industry experts say the next wave of digitization is to connect the over 50 billion devices worldwide by 2020. Seventy per cent of the devices are found in industrial sectors and health care using big data, artificial intelligence, machine learning and cybersecurity to make real-time decisions. When tech hubs like the Silicon Valley look at Calgary, they can see we have talent that knows what data needs to be collected where and when. With 27 per cent of post-secondary completions in Calgary in the science, technology, engineering and math (STEM) programs that are essential to technology development, there’s a critical mass of workers to take up the challenge. Calgary is ranked as one of the top-five tech talent markets in Canada.

It helps to explain how in a oil and gas industry focused on efficiency, the ability to apply new ideas in a far more modest price environment than recent years meant that Alberta pumped a record 3.3 million barrels of crude oil a day in February.

The energy industry has worked in that environment for years. By applying the skills of our talented and experienced workforce, there’s an opportunity to digitize all our key sectors. We will remain competitive only if we are more efficient, effective and productive in all areas of our economy and above-the-ground innovation is the solution.

As a city and a province, we need to develop a similar type of ecosystem that will support above-the-ground

The good news is that it means doing what we’ve always done – just in different ways.

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Leisure and International Travel up in Calgary BY CASSANDRA MCAULEY

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t its recent annual general meeting, Tourism Calgary reported on key travel indicators from 2016. While the overall number of visitors to the city decreased 0.3 per cent last year as a result of a decline in business travel, important gains were made in overnight travel from the United States (up 7.8 per cent over 2015) and from other international markets (up 12.4 per cent over 2015). Tourism Calgary continued to advance its strategy for the benefit of the destination, with timely modifications. Key 2016 accomplishments include: • An integrated approach to attracting, marketing and hosting sport, culture and major events contributed to a record 70 sport and cultural event bids including the Juno Awards as part of Calgary’s Year of Music; • The Juno Awards and Juno Week activities contributed $9 million in economic impact to Calgary; • Marketing campaigns promoted Calgary regionally, nationally and internationally throughout the year. In addition, Tourism Calgary partnered with Calgary Economic Development to develop and execute the #LoveYYC campaign, targeted at developing city advocates and pride of place for Calgarians; • A new strategy for counselling visitors in Calgary was piloted, and resulted in 572,683 personal referrals to industry partners; up 68.4 per cent from 2015; • A record 2,447,735 website visits to visitcalgary.com (up 21 per cent over 2015);

• The important work of planning for the future of tourism in Calgary culminated in the development of Calgary’s Destination Strategy |Ultimate hosts. Ultimate host city. Overall, over 2.9 million hotel room nights were sold in Calgary in 2016, with 1.19 million sold for weekend use. Tourism industry partners voiced their continued support for Tourism Calgary, with 87 per cent expressing satisfaction with the organization’s work on their behalf.

• An increase of 332 per cent in social media engagements over 2015;

Looking ahead, the Conference Board of Canada is projecting a three per cent increase in overnight visitation to Calgary in 2017, and early indications from the first quarter are that hotel rooms sold increased in each consecutive month.

• Over 80,000 travel trade-related room nights were sold, resulting in an increase of 16.5 per cent over 2015;

To learn more about Tourism Calgary, 2016 industry indicators and 2017 plans, see www.visitcalgary.com.

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JUNE 2017

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Bridging Physical and Digital Worlds HOW VEERUM USES GAMIFICATION TO IMPROVE THE ENERGY INDUSTRY

BY ANDREA MENDIZABAL

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hen it comes to addressing a common challenge in the global energy sector, a Calgary technology firm is turning to digital reality for a solution. VEERUM is on a mission to increase efficiencies and reduce project costs from the world’s most complex and remote projects by using gamification to eliminate rework. Rework is the unnecessary process of redoing work that was incorrectly carried out the first time and needs to be corrected to meet requirements. “It’s a persistent problem affecting productivity, cost and schedule,” says Ben Reed, principal hardware hacker at VEERUM. “It’s caused by mismatches between the physical site and the manufactured components, missing tools and misplaced assets. This can lead to a 10 to 30 per cent increase in cost and schedule. But rework is also the most hazardous part of any work. That’s why we want to eradicate it.” The solution is a precise awareness of the capital project – in 3D. VEERUM’s Digital Twin technology replicates a site using a variety of sensors on unmanned vehicles such as robots and drones. “We got a robot − courtesy of TECTERRA − to build the autonomous data capture capability,” says Reed. “The robot, named Franchesca, lives at a remote site in her own trailer, which we call a doghouse. Franchesca wakes up at night when no one is around and digitizes everything around her.” The robot sends data to the Industrial Internet, which results in up-to-date replicas of the components that go into the making of a capital project. People can then virtually visit the site to compare the digital and physical worlds, monitor progress, and track assets and the use of materials.

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“We teleport people to a remote construction site using virtual reality and immerse them in the near-real-time data from our Digital Twin,” says Reed. “VEERUM’s virtual reality product brings the site to the office, limiting travel to remote and hazardous places. “Capital projects have many moving parts that all need to come together at the right place and time,” says Reed. “The complex nature of all the variables that go into this makes it difficult for humans to identify and mitigate risk. Our technology is intelligent. It’s able to provide insights not possible through current manual methods, as well as scale to a global geographical reach.” Digital solutions in industrial construction have the potential to reduce cost and schedule overruns, improving the efficiency of the global energy industry. “VEERUM brought resources together and diligently made the most of every opportunity available within the ecosystem to be successful. Their understanding of the customer’s pain helped them create a product-market fit that resonated with customers, funders and strategic partners,” says Bilal Rasool, commercialization manager, Kinetica Ventures. “It takes more than technology to create a successful venture. VEERUM is that special blend of technology and businessmodel innovation that has the potential to truly disrupt the status quo,” says Rasool. To learn more about VEERUM, visit veerum.com. To learn more about Kinetica Ventures and how it is helping to accelerate world-class energy technologies, visit kineticaventures.com.


Spark success at your centre of energy.

FOR MORE INFORMATION VISIT:

calgary-convention.com


MARKETING MATTERS // DAVID PARKER

Marketing Matters BY DAVID PARKER

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Global energy company Nexen has contracted Tag to develop this year’s arts sponsorship advertising for Alberta Ballet, Theatre Calgary, Calgary Opera, Honens Piano Competition and the Calgary Philharmonic Orchestra.

Jeff Groeneveld, co-founder and president of WS, says it will operate as a sister agency to the U.S.-based Woodruff rather than an affiliate office, though they will continue to work closely together.

Equation Staffing and HSI Financial are two other new clients for the agency while its media partner, Zugalu, has been selected by the Canadian government as one of 12 independent video game developers to attend the leading European game developer conference.

oodruff Sweitzer is no more. After 25 years, a significant name change announces the American company is now called Woodruff and the Canadian firm, headquartered in Calgary with an office in Toronto, is now known as WS.

As in the past, WS will provide full-service agency solutions, and has added insights and analytics as a core offering, helping to guide strategy, creative and communications execution. The agricultural industry, animal health and pet care have always been a focus. WS is a co-founder of Cat Healthy – recently voted best of show for a not-for-profit at the North American Veterinary Community Awards – and has launched an app for cat owners.

Tag Advertising has partnered with Mental Health Alberta to shed light on mental wellness. The agency has created a new PSA in conjunction with Global and Canadian Mental Health Alberta to help recognize mental wellness as a real issue in our schools. Tag owner and creative director Todd Sloane shares other good news in setting up shop in Vancouver where its online digital department is helping national and international clients. And Tag has picked up a number of new clients including the branding and marketing for Fram Building Group’s two new highrise condo developments in East Village – Verve and Vibe.

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Last month, I mentioned I was impressed with the new logo for Oxbow, the restaurant in Kensington Riverside Inn. Tanya Puka, head of accounts and strategy, was quick to point out that it was created by Brandsmith who also recently did good work for Fieldstudy on 4th Street SW and Cured Delicatessen in Haysboro Plaza.

AdFarm has launched a new online hub called WorkHorse to simplify hiring practices across the agricultural industry, matching qualified employees to agricultural jobs. Currently it is working on a campaign for Alberta Wheat Commission focused on giving people permission to feel good about eating wheat again.

Parker’s Pick SeedLinks; the informative online newsletter by the Mustard Seed.


Life’s a beach, every day: with the new Aqua series, handmade in Germany by NOMOS Glashütte – two models, two sizes, four colours. These watches are ready for life and its surprises; suitably dressed for the theater, and licensed to dive. Ahoi neomatik and other Aqua models are available at JVair Anderson Jewellers. 409 – 3RD Street SW | 403.266.1669 | jvairanderson.com


Technology won’t stand still. Neither should you.

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