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Darren Lunt

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EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME



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Are calm waters ahead? As a business owner you want peace of mind that when it comes time to sell your business, the process will go smoothly. KPMG Enterprise can help you prepare well in advance so that when it is time to exit, the value of your hard work is accounted for and you can aim to set sail for the future.

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 5 | Number 6

REGULAR COLUMNS

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 Government Should Look Inward to Narrow Budget Gap By AEG President Josh Bilyk

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 Edmonton Chamber of Commerce

GUEST COLUMN

CONTENTS

10

 Workers, not Fat Cats, Pay the Price of Business Tax Hikes By Paige MacPherson

COVER FEATURE

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 arren Lunt Explains D how Real Workmanship Lasts a Lifetime Weldco’s slogan boasted “real workmanship” when the company opened its doors over 70 years ago. The energetic company continues to prove this claim every day. By Nerissa McNaughton

ON OUR COVER: DARREN LUNT, PRESIDENT OF WELDCO COMPANIES PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

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Travel with friends, travel for less Business Class fares from Edmonton to Amsterdam starting at $2,175* if you travel with someone. This offer is available for many destinations. Visit klm.ca or your travel agent for more information.

* Return fare, taxes included. Fare per passenger. Minimum of 2 passengers on the same reservation to be eligible to this fare. Departure before December 31st, 2016. Book by December 15, 2016. Advance purchase: 7 days. Minimum stay: 10 days. Maximum stay: 6 months. Changes: 450 CAD, plus fare difference if any. Cancellation: 500 CAD before departure. Fares subject to changes without notice and subject to currency exchange.


STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 5 | Number 6

59 THIS MONTH’S FEATURES

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CONTENTS

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Think “rural” when you think “agriculture”? The urban farming connection is just as important. By Nerissa McNaughton

Oil: Is There a ‘Break-Even’ Price? Today we delve into the relationship between market values and production costs to determine if there is really a breakeven price in the industry.

COMPANY PROFILES

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Farming in the City

By Rechell McDonald

C  anessco Services Inc Celebrates 65 Years

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Business Aviation: Accept No Substitute By Debra Ward

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Will Manufacturing Carry Edmonton Through the Downturn? By Laura Bonhert

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Aviation Directory

B OMA Newsletter Official newsletter of ‘Building Owners and Managers Association’ of Edmonton


Control your group benefit plan costs… without compromising choice or flexibility.

PUBLISHER

Business in Edmonton Inc.

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PHOTOGRAPHY

Cover photo by Epic Photography Inc.

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GOVERNMENT SHOULD LOOK INWARD TO NARROW BUDGET GAP // ECONOMIC FACTORS

Government Should Look Inward to Narrow Budget Gap BY JOSH BILYK

T

he Alberta government deficit is huge. At $10.4 billion it’s so big, there is no single way address it. Everything should be on the table.

Businesses have stepped up to the plate by paying higher taxes than they have in years. Corporate taxes (for those still profitable enough to pay them) have increased 20 per cent, personal income taxes are up and next year a carbon tax will draw another $3 billion from the economy and will steadily rise every year after that. With billions of dollars in new or increased taxes on the books, the government needs to look seriously at spending. The provincial debt is expected to rise from what was effectively zero a few years to $28.9 billion in three years. Before the next election, interest payments on that debt are expected to rise to $2 billion, or $1,860 per year for a family of four. Alberta is one of the biggest-spending provinces in Canada, and has been for a while. Next door in British Columbia, the government spends $2,300 less per person on programs. Alberta’s high-spending ways didn’t happen overnight, and certainly didn’t begin with the current NDP government. Government spending has steadily risen for more than 15 years. Of course, infrastructure demands to keep pace with a growing population was a significant cost driver. As the saying goes, those hundreds of thousands of new Albertans didn’t bring their roads and schools with them. However, there was also another factor at play. With resource royalty revenue rolling in at a record pace, it was easy for

governments to say “yes” – especially at election time. Public sector salaries just kept rising. The government always said it needed to increase wages to prevent losing workers to the booming private sector. Competition with the private sector might have been a factor, but a recent Fraser Institute study found that unionized government workers enjoyed a 6.9 per cent wage premium over their private sector counterparts in 2013. That same study also found that 77.7 per cent of government workers were covered by a registered retirement plan, compared to 21.8 per cent of private sector workers. Another area we need to take a look at is health spending. Alberta continues to be one of the biggest spenders on healthcare in the country but, as the Canadian Institute for Health Information (CIHI) has pointed out, one of the main determinants of public health expenditures is the age of the population. The older the population, the more you spend on health care. Alberta, with one of the youngest populations, spends more per person than almost every other province. CIHI estimates that, if you control for Alberta’s demographics, the province should spend 13 per cent less than it currently does – that amounts to around $2.5 billion per year. Narrowing Alberta’s gap is going to require some tough choices, but all options need to be considered in order to get back to balance. Businesses are being asked to contribute more to government coffers while tightening their own belts. Now it’s time for government to follow suit and examine its own spending practices. ALBERTA ENTERPRISE GROUP IS A MEMBER-BASED, NON-PROFIT BUSINESS ADVOCACY ORGANIZATION. AEG MEMBERS EMPLOY MORE THAN 150,000 CANADIANS IN ALL SECTORS OF THE ECONOMY.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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WORKERS, NOT FAT CATS, PAY THE PRICE OF BUSINESS TAX HIKES // GUEST COLUMNIST

Workers, not fat cats, pay the price of business tax hikes BY PAIGE MACPHERSON

I

f you want to help workers, raising business taxes just doesn’t make sense. It’s one topic over which you will find a good amount of consensus among economists here in Alberta. This topic is of critical interest in Edmonton, which was recently found to be the second least competitive Canadian city in which to do business. Business tax hikes stifle investment and growth, preventing new jobs from being created. But oh, how tempting to believe that business taxes are the silver bullet to generate mountains of revenue without having any actual people pay one penny. Businesses aren’t people, right? And any people who would be affected can easily afford it, right? Ultimately, people do pay the price for business tax hikes – but not who we might think. University of Calgary economist Jack Mintz found that for every dollar of corporate tax levied, the Alberta economy loses $82. Raising the provincial corporate tax rate by one per cent reduces business investment by $6 billion and cuts 8,900 jobs. Yet, business tax hikes can be a popular idea. A government poll commissioned prior to the last Alberta election showed that 69 per cent of Albertans favoured raising business taxes. Recall at the time, the government introduced the notion that some taxes had to be raised, ignoring the gigantic government spending elephant in the room. Following the election, Alberta’s NDP government raised business taxes by 20 per cent. If the premise is that a tax must be raised, business taxes poll well because the general notion is that someone else is paying for it. It helps to think that the ‘someone else’ in question is a wealthy CEO flicking cigar ashes onto the downtrodden from his penthouse office.

The caricature has allure, but profit is simply a reward for risk. Edmonton’s job creators come in many forms – dressed in Carhartt coveralls, suits, or converse sneakers. But the larger problem is that those who are impacted the most by business taxes hikes are everyday workers. Former Statistics Canada chief economic analyst Philip Cross pointed out that “most serious economists find that corporations don’t pay income taxes … In fact, most studies show the brunt of corporate income taxes are paid through lower wages.” That’s bad news for workers, but it also means less revenue from personal income taxes. Higher business taxes also “make Canada a less attractive location to invest,” as noted by the Canadian Manufacturers and Exporters, and “would increase Canada’s unemployment rate, thereby eroding job growth.” Fraser Institute economist Charles Lammam points out that “corporate taxes are ultimately paid for by people either as workers through lower wages, consumers through higher prices, or shareholders through lower returns on investments including RRSPs.” A study by the Institute found that a one percentage point increase in Canada’s 2012 combined federal-provincial business tax rate would lead to a reduction of $254 to $390 in a worker’s annual wage. Over the last 15 years, Canadian federal and provincial governments of all stripes recognized the harmful impacts of raising business taxes and worked instead to decrease them. Unfortunately, here in Alberta that tide has turned. To truly help workers, our government would be better off to look at the facts rather than dreaming up fat cats.

PAIGE MACPHERSON IS ALBERTA DIRECTOR OF THE CANADIAN TAXPAYERS FEDERATION, A NONPROFIT, NON-PARTISAN CITIZENS ADVOCACY GROUP DEDICATED TO LOWER TAXES, LESS WASTE AND GOVERNMENT ACCOUNTABILITY.

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM


Liftboss celebrates

10 Years!

In 2006, experienced industry professionals Andre Gagnon, Dale Beatty, Marc Tougas and John Gagnon couldn’t find a one-stop shop for the equipment and services they needed. They solved the problem by creating Liftboss Materials Handling Group. Liftboss was an instant success and grew over 130 per cent during the first two years, resulting in the Calgary branch opening in 2008. Liftboss started in the forklift world, servicing and providing parts for all makes and models of material handling equipment. In 2013, Liftboss was pleased to welcome Doosan Heavy Equipment to their list of dealers, which added Doosan’s popular wheel loaders, excavators and articulated dump trucks to the already established Liftboss roster.

ServingCentralandSouthernAlberta forover10years.

Today, Liftboss is the only heavy equipment dealership you need for new and used brand-name equipment ranging from 2,000-200,000 lbs capacity, rentals and leasing, forklift training, factory and aftermarket parts, and in-shop or on-site service (performed by certified mechanics) for all makes and models of material handling and heavy equipment. Alberta owned and operated, Liftboss is proud to service its many customers – from Fortune 500 companies to independent shops – by providing quality Doosan equipment, updated inventory, parts and labour warranty, full on-site service packages, competitive pricing, on-time delivery and outstanding customer service. Liftboss thanks Edmonton, Red Deer and Calgary for a great 10 years and looks forward to the next decade.

Left to right: Dale Beatty, Marc Tougas, and Andre Gagnon

thern Alberta ars.

Servicing Northern, Central, and Every job is unique. With 360-degree visibility, fast cycle times, and superior lift Southern height and lift capacity, Doosan wheel loadersAlberta keep you productive no matter what. Edmonton, AB | 780.474.9900

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Edmonton Shows Steady Job Gains for 10 Consecutive Months

The news that Edmonton was exempt from the Liberal government’s employment insurance relief changes drew the ire of those struggling to make ends meet. The rationale was that Edmonton was not in bad shape compared to rest of Alberta and the truth is – it’s not. While this fact is of very little comfort to laid-off workers and those struggling thanks to the drop in oil prices, the big picture is more rosy than bleak. The Edmonton Census Metropolitan Area (CMA) gained 3,500 new jobs in March 2016, marking a consecutive 10 months of job gains. The Edmonton CMA also boasts 27,000 new positions over 12 months, which represents over 20 per cent of all the new jobs generated in Canada over the same 12 month period. Annual job growth is at 3.6 per cent, a full five times the national average, which sits at 0.7 per cent. Compared to Calgary’s February-March unemployment rate of 8.6 per cent, Edmonton’s was 6.9 per cent. There is no getting around that, thanks to low oil prices, job losses still abound in the construction and manufacturing sectors however, as the Economic Indicators report distributed by the City of Edmonton’s chief economist, John Rose, states, “Recent job losses in construction and manufacturing demonstrate that Edmonton’s economy is not immune to the impact of decreased oil prices. However, the region’s diverse economy has so far been able to absorb this negative shock and continue to expand.” As 2016 marches on, the unemployment rate is expected to jump to the seven per cent range, however, if oil prices rise, the unemployment level is expected to stabilize during the latter part of the year.

While that is good news for job seekers, those living in Edmonton felt the pinch at the pump during the spring. In fact, rising gas prices pushed Edmonton’s inflation rate up. The Edmonton CMA’s Consumer Price Index (CPI) went from 1.3 per cent to 1.6 per cent in March (figures based on year-over-year statistics), thanks to high numbers at the pump. When the oil prices first fell, many revelled in being able to fill up their Alberta-sized trucks on the cheap. That didn’t last long. Gas rose by an average of 20 per cent through the first months of the year, pushing Edmonton’s CPI above the national average. One area, however, that is benefiting from Edmonton’s economic situation is accommodation. “Costs for rented and owned accommodation eased slightly in March 2016. While the year-over-year change in these two components of the CPI remains positive, over the course of 2016, costs associated with shelter in Edmonton are likely to decrease as rents fall,” reports Economic Indicators. Lower housing costs means a stronger dollar, which is also anticipated to lower the cost of produce at the grocery store. Those that spent upwards of $6 per head of cauliflower during the early months of the year can appreciate this. Job gains, as well as lowered housing and food costs are great news for Edmonton as the economy continues a slow but steady rebound. ABOVE: JOHN ROSE, CITY OF EDMONTON, CHIEF ECONOMIST. PHOTO SOURCE: CITY OF EDMONTON

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OFF

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Business Development Bank of Canada Announces Support for Wildfire Victims In a move to support Alberta’s entrepreneurs that have been negatively impacted by Fort McMurray’s record-setting wildfire, Business Development Bank of Canada (BDB) announced a relief program that sees existing clients in Fort McMurray and the Wood Buffalo region eligible for a threemonth postponement of capital and interest loan repayments. “BDC has been reaching out to clients affected by the disaster to ensure they are safe and offer whatever support may be needed. We already know some clients have experienced a total loss, while others face serious challenges,” said BDC president and CEO Michael Denham, who travelled to Calgary and Red Deer to meet local entrepreneurs, business leaders and representatives of Alberta’s Chambers of Commerce. “We recognize that our clients will need greater financial flexibility in the days and months ahead. If there is any way we can provide further assistance to help their business through this difficult period, we encourage them to contact us.” The Fort McMurray fire, aptly nicknamed “The Beast” prompted the largest wildfire evacuation in Alberta’s history. Within three short days (May 6-8) The Beast spread from 1,000 square kilometres to 1,610 square kilometres and showed little signs of slowing down. More than 700 firefighters from across Canada were deployed to fight the blaze, and they were assisted by more than 80 fire engines, 44 pieces of heavy equipment and 15 helicopters. Over 80,000 people were forced to evacuate the city. More than $40 million, including $25,000 from BDC, was donated to the Red Cross in support of the Beast’s displaced victims. Honourable Navdeep Bains, minister of innovation, science and economic development, hails this move by the BDB. “Our thoughts are with everyone impacted by the fires. We are heartened by the responses of Albertans and Canadians to the citizens of Fort McMurray in these difficult times,” he noted.

This relief program arrives shortly after last year’s BDB announcement of $500 million in funding for SMEs (small and medium-sized enterprises) affected by the economic downturn. “The best way for Canada’s economy to thrive is to build resilient businesses that can take advantage of opportunities, survive economic slowdowns and prosper,” said Denham in a press statement last year when the funding program was announced. “We want to ensure that the many wellrun companies that enjoyed success before the downturn continue to receive the financing and advice they require. Uncertainty can create opportunity and our support is intended to help these companies diversify and bounce back more strongly than ever.” BDC is the only bank dedicated exclusively to entrepreneurs. With more than 100 business centres and over 32,000 clients across Canada, it offers loans, investments and advisory services. BDC’s purpose is to support Canadian entrepreneurship with a focus on small and medium-sized businesses. To learn more, visit www.bdc.ca.

ABOVE: MICHAEL DENHAM, PRESIDENT & CEO, BUSINESS DEVELOPMENT BANK OF CANADA. PHOTO SOURCE: BUSINESS DEVELOPMENT BANK OF CANADA

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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EDMONTON’S CAUTIOUS OPTIMISM // URBANOMICS

U R B A N O M I C S | U R B A N D E V E LO P M E N T D I S C U S S I O N

Edmonton’s Cautious Optimism BY JOHN HARDY

W

hen it comes to the often misunderstood topic of the Edmonton housing market, the differences and variables are more pronounced than ever. The area’s new home builders and developers focus on the strategy and market measure of housing starts – Edmonton’s new home building activity, new home inventory, new home prices and new home sales. Professionals agree that both housing starts and re-sale activity are riding out the Alberta downturn storm. The trends, and the 2016/2017 outlook for new home starts, are certainly not without its speedbumps, but right now range from stable to the optimistic. The re-sale market is much more reliant on factors like unemployment, consumer confidence and fluctuating prices. The REALTORS® Association of Edmonton cited a challenging re-sale year, with Edmonton re-sales down more than 13 per cent from December. “At the end of the day,” explains Steve Ruggiero, president of Edmonton’s Kimberley Homes Group and president of the Canadian Home Builders’ Association-Edmonton Region (CHBA-ER), “of course the economy is a key factor for new home starts and, in various ways, the economy is impacted by the oil sector, but it’s by no means as limited as it used to be.

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

“We are more robust now, because there is more business diversity in the Edmonton area. Of course the oil situation is a significant issue, but Edmonton is still seeing job growth and people are still moving to Edmonton for job opportunities.” Canada Mortgage and Housing Corporation (CMHC) contributes to the stability of the housing market and financial system, and offers valuable research and information to Canadian governments, consumers and the housing industry. CMHC had previously considered Alberta’s two major cities at a low risk of a downturn when it last published an assessment about the housing market in October 2015. According to a Q1 CHMC report, the organization noted that soaring job losses, a slowdown in migration and surging vacancy rates have raised some concerns. “Calgary’s home prices have dropped since CMHC last studied the market, but not by enough to reflect the region’s deteriorating economy and the sharp rise in its vacancy rate,” notes the report. “Edmonton has fared better, but is coming off a record year for new housing starts that is leaving the


EDMONTON’S CAUTIOUS OPTIMISM // URBANOMICS

“EDMONTON AREA BUILDERS HAVE DONE A GOOD JOB OF ADJUSTING. EVEN THOUGH THERE IS SOME EXCESS INVENTORY IN THE MARKET, THERE IS NO OVER-SUPPLY ISSUE AS THERE MAY BE IN SOME OTHER MARKETS. WE ARE ACTUALLY ANALYZING AND CONSIDERING IF THERE WILL BE ENOUGH PRODUCT IN Q3 AND Q4.” ~ STEVE RUGGIERO

city at risk of having a glut of unsold condos and vacant apartments amid an oil slump. In the Edmonton Census Metropolitan Area (CMA), housing starts were trending down since the start of 2016. The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) of total housing starts.” CHMC points out that as “the trend in total housing moves down, as the pace of both single-detached and multi-family starts slowed. Apartment starts, which reached near record levels in 2015, declined in the first two months of 2016 as a higher vacancy rate, rising new inventory and an elevated number of units under construction tempered Edmonton production.” Ruggiero is upbeat and positive, despite the Edmonton market’s challenges. “Edmonton area builders have done a good job of adjusting. Even though there is some excess inventory in the market, there is no over-supply issue as there may be in some other markets. We are actually analyzing and considering if there will be enough product in Q3 and Q4. “When we look at the stats and trendings, we have to keep in mind that 2014 was an unprecedented year. It was an incredibly strong year but certainly not a normal year, and

definitely not a realistic benchmark. Comparing to 2014 will always be skewed and misleading. When we look at the latest housing start numbers there’s no question that it’s down, but it’s not a proportionately big drop over the past 10 years.” Despite the conventional cycles in housing starts, the local, regional and national focus on Alberta’s economy and, particularly, the impact on real estate and housing, Ruggiero tracks the trends and points out that “this down cycle is much different and worse than eight years ago. In 2008 we came off a massive price run-up. This time we have not had a rapid acceleration in price and builders are doing well and, there may be small increase in 2016-2017. The cost of our product remains consistent.” The president, like most business leaders, is cautious with the overused reference “turnaround.” He suggests using the term “realistic adjustment,” with housing prices and housing starts going at an average pace versus a rapid pace. “It’s not simple,” he says, “but much of it depends on net migration, job creation, and prices remaining stable. He projects actual 2016 Edmonton housing starts around 10,000, and a similar number (perhaps a slight improvement) for 2017.

ABOVE: STEVE RUGGIERO, PRESIDENT OF EDMONTON’S KIMBERLEY HOMES GROUP AND PRESIDENT OF THE CANADIAN HOME BUILDERS’ ASSOCIATIONEDMONTON REGION (CHBA-ER).

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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FARMING IN THE CITY // AGRICULTURE

FARMING IN THE CITY

THINK “RURAL” WHEN YOU THINK “AGRICULTURE”? THE URBAN FARMING CONNECTION IS JUST AS IMPORTANT.

BY NERISSA MCNAUGHTON

T

he Government of Canada put it best as they proudly touted on their Agriculture and Agri-Foods Canada webpage, “It’s [agriculture] a colossal contributor to the lives of all Canadians. It feeds us, as well as our economy. It employs us, and depends upon the environmental stewardship of our farmers. It is fuelled by innovation and ingenuity. In short, it grows a lot more than you may think!” Canada is the world’s fifth largest agriculture exporter, the supplier of 80 per cent of the world’s maple syrup and the largest exporter of flaxseed, canola, pulses and durum wheat. It’s a growing industry (pun intended) but, one that is not happening solely out in the fields. Alberta’s urban centres are getting in on the action, in some very surprising ways. “We are looking at connecting the urban population to agriculture through food. It’s a commonality that we all have,” says Heather Shewchuk, director of agriculture at Northlands. “We are using food as a tool to celebrate agriculture.” How is Northlands doing this? In 1879 Northlands held Edmonton’s first food and livestock fair, and they never looked back. Today, the company is facilitating a group of institutions that purchase local food, is evolving their agriculture programming, and runs an educational farm site in the city and partners with the City ABOVE: LESSONS IN NORTHLANDS URBAN GARDEN. VISITORS GET IN TOUCH WITH THE FOOD THAT SUSTAINS THEM AND THE ECONOMY. PHOTO SOURCE: NORTHLANDS

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Professional Development IT PAYS TO KNOW

Mark your calendar for payroll education! Teresa S., PCP - Member Prairie Region

of Edmonton’s fresh (food and agriculture strategy) program. “I think our urban population is more than a couple of generations removed from the farm,” says Shewchuk as she describes the importance of their urban agriculture programming. “Even the understanding of how vegetables are gown, how animals are raised for meat and the simple processes of canning and preserving have been lost in transition. I think there is an increased interest in where our food comes from, how it’s grown, raised and produced. We want to convey the understanding and appreciation for the economic benefit of the local farmers and of eating local food.”

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One such local farm is The Little Potato Company. “People are really feeling a need to understand where their food comes from and how it’s created. We all have an emotional connection to food and that is stronger when we know that food was grown or created locally. Food and community are interconnected. Buying local and eating local strengthens that connection,” says Angela Santiago who founded The Little Potato Company alongside her father, Jacob. Jacob, who had immigrated to Canada, was at a loss to find the small creamer potatoes he loved in the Netherlands, so he suggested they grow some. They started with one plot on the outskirts of Edmonton and washed the

THIRTY YEARS OF DISTINCTION

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Ranked in the top 5% of all schools in Alberta for measures from performance to citizenship, quality and parental involvement

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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FARMING IN THE CITY // AGRICULTURE

“OVER THE NEXT YEAR, THE LITTLE POTATO COMPANY WILL BE DEVELOPING A NEW FACILITY IN WISCONSIN, WHICH WILL OPEN IN EARLY 2017, SUPPLEMENT OUR FACILITY HERE IN EDMONTON AND HELP US CONTINUE TO MEET THE GROWING DEMAND FOR CREAMERS ACROSS NORTH AMERICA.” ~ ANGELA SANTIAGO

first crop in a bathtub. By 2000, they were in need of their first manufacturing facility and four years after that, they expanded again. Today, Angela is in the boardroom as CEO and Jacob is out in the field innovating their potato’s variety and yield. The Little Potato Company has grown in leaps and bounds, and it’s not slowing down. They just marked their 20th anniversary with a surprising announcement. “We were absolutely delighted to announce a significant expansion and investment in our anniversary year. Over the next year, The Little Potato Company will be developing a new facility in Wisconsin, which will open in early 2017, supplement our facility here in Edmonton and help us continue to meet the growing demand for creamers across North America.” Why this American city? “We chose that region because it is similar in many ways to Alberta: great soil conditions, a strong and supportive business environment, skilled and passionate people to work with us, and just a great ‘down to earth’ community. We have a fantastic team who have worked very hard to achieve this, and we are very proud to be expanding our Alberta-based company.”

The spuds are in the field but the company is run out of, and services, urban centres. Head office is in the city; the farm, right on the outskirts – and it’s no accident why this arrangement is successful. “One of the biggest benefits of a vibrant regional agriculture industry is that it gives people an opportunity to buy local produce,” muses Santiago, “to know where their food comes from and how it was grown. When Alberta-based agricultural businesses sell to other Alberta-based agricultural businesses it makes our economy, community and food security stronger, and that benefits everyone. “People feel a connection with local agriculture: farmers, food producers and retailers. I think Alberta agriculture is gaining more and more profile and spotlight because people are actively searching out local vegetables, honey, beef and other local and regional foods. There seems to be more and more of an active search to buy Albertan products and we fully support that. “There are a lot of benefits to having a local agriculture industry: local food, local jobs, a vibrant and integrated agriculture community and local food sustainability. At ABOVE: ANGELA SANTIAGO, FOUNDER OF THE LITTLE POTATO COMPANY. RIGHT: FUN AT NORTHLAND’S URBAN FARM. PHOTO SOURCE: NORTHLANDS

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FARMING IN THE CITY // AGRICULTURE

the same time, I believe passionately that we should share what we’re learning about growing healthy food here with areas of the world that don’t enjoy the same supportive soil or environmental conditions. We should share what we harvest from the land with those who are less

fortunate than us here at home, too. There’s a big social benefit to agriculture. “Alberta is a great and widely recognized natural resources province, but it’s also important to highlight that it’s a great

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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FARMING IN THE CITY // AGRICULTURE

place to grow food, produce, beef, and other local products. It’s easy for agriculture to become overshadowed and to forget about how fertile and incredible the land is here in Alberta for providing our food. “Working in agriculture in Alberta has helped us. The Little Potato Company and other local food producers help create a diverse economy, and we help showcase a positive example and story about the quality and bounty of our land and people.” Shewchuk and Santiago are far from the only ones that recognize the importance of connecting people with their food. Earlier this year the Alberta Agriculture Minister announced a $40,000 smartphone app that puts people in touch with Alberta’s Farmers’ Markets and fresh produce suppliers.

ABOVE: FUN AT NORTHLAND’S URBAN FARM. PHOTO SOURCE: NORTHLANDS

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There when you need it, growing when you don’t. Business Savings Account

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The app took four months to build and test and eliminates the need for visiting the online Farmers’ Market map, along with the thousands of brochures that quickly went out of date as markets opened, changed locations or shut down. While the cost of the app may seem staggering, it’s important to keep it perspective. Between 2004 and 2012, the value of Farmers’ Markets tripled with the average shopper spending in excess of $50 per visit. With shoppers relying on these markets for fresh, local food and vendors relying on Farmers’ Markets for income, the app services a real need and brings in revenue (Farmers’ Market vendors are entrepreneurs who, when applicable, remit GST and other taxes to the government). The agriculture connection goes far beyond Alberta’s beautiful fields of canola, green acres of potato plants and lively animal farms. It reaches deep into urban centres with educational programming, head offices, Farmers’ Markets, technology and more. Take a moment before your next meal to appreciate what is on your plate and strive to put some local fare on there. Agriculture grows Alberta, on both sides of the city line.

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DARREN LUNT EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME // COVER

Da

ABOVE: DARREN LUNT, PRESIDENT OF WELDCO COMPANIES PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

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DARREN LUNT EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME // COVER

rren Lunt EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME

BY NERISSA MCNAUGHTON

WELDCO’S SLOGAN BOASTED “REAL WORKMANSHIP” WHEN THE COMPANY OPENED ITS DOORS OVER 70 YEARS AGO. THE ENERGETIC COMPANY CONTINUES TO PROVE THIS CLAIM EVERY DAY.

T

here is something fascinating about the heavy machinery that keeps Canada’s industrial sector on the move, but even more interesting are the stories behind the machines. Take, for instance, Weldco-Beales Mfg., a company that is an important part of Edmonton’s history.

In 1945, Gordon Reelie founded Weldco in post-war Vancouver. He had a prime spot on 2nd Avenue downtown and an advertisement that read: “Remember…do not trust your precision machinery to partially trained wartime help. Call Weldco for real workmanship!” Real workmanship, it turns out, was the key. From a humble welding shop whose name said it all (Weldco is the marriage of the words “welding” and “company”), came the impressive corporation that today designs and manufactures specialized heavy equipment attachments for OEMs servicing the construction, resource, forestry, mining, scrap recycling and road maintenance industries. “Over the course of time, the company grew (primarily on the back of the growing forestry sector) and started offering heavy equipment dealers specialized attachments that helped them sell their equipment to meet the regional applications of the machinery,” explains Darren Lunt, president of Weldco Companies. “Weldco is in the business of making our customers more successful. We appreciate and respect the trust of our customers who depend on our attachments, truck mounted cranes or welding repairs to add value to their business. The significant investments we’ve made in improving our manufacturing processes, raw material sourcing, engineering and new product development have allowed us to stay competitive in a very demanding industry.” Lunt joined Weldco-Beales in 2005. “I was at a career crossroads,” he explains. “I spent the first 15 years of my career in the non-profit sector as a development officer (fundraiser) and later as an executive director. The non-profit sector was incredibly rewarding and I enjoyed it thoroughly, however when the opportunity came along to join Weldco, I was ready for a change.

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DARREN LUNT EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME // COVER

“When I graduated from the Northern Alberta Institute of Technology (NAIT) with my marketing diploma, I primarily applied for industrial sales positons, as this was the sector I knew from my upbringing. I’m the proud son of a welder; my father worked his entire 45 year career at Ledcor. I was fortunate to have worked for him during weekends and summers when he managed Ledcor’s welding and service shop in Edmonton. Even though I was only the shop’s general laborer, I loved the industry and camaraderie that existed between the employees, vendors, customers and various industry partners I was exposed to.” Lunt brought this love of the industry with him when he joined Weldco and uses his experience and passion to keep the company growing in an industry fraught with ups and downs. Weldco’s roots may have unfurled in Vancouver, but since the early 1970s when the company expanded to Edmonton, the city has benefited significantly from their expertise. “In every community that we operate, Weldco tries to make a positive impact,” smiles Lunt. Some examples for the Edmonton region include stepping up and taking the lead funding positon that established the University of Alberta’s re-instatement of the Chair in Welding and Joining aligned with the Department of Chemical and Materials Engineering. The Weldco-Beales/Industry Chair is the cornerstone of the Canadian Centre for Welding and Joining, which gives students the opportunity to graduate with a master’s level of understanding within the field of welding.” The company continues to innovate the industry. Lunt explains, “Weldco is the only Canadian manufacturer of truck-mounted cranes. We successfully compete with some of the largest crane manufacturers in the world and have earned market share leadership in Western Canada. “I think most people would be surprised by the high level of engineering and design that goes into our product mix. Tolerances have become significantly tighter as the equipment our attachments work with has evolved over the years. This has played well for Weldco, which has built its reputation on providing engineered solutions. Our commitment to retain dedicated engineering teams at all our manufacturing facilities ensures we continue to meet and exceed regional design expectations.”

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Weldco’s growth has been explosive. In fact, Weldco-Beales is just one facet of the Weldco Companies group. “We’ve split off Weldco Hydra-Lift into its own business unit, but the cranes are designed and built by Weldco-Beales in the Edmonton manufacturing plant,” Lunt explains. The other company in the group is Weldco Heavy Industries, a large steel fabrication and repair facility ideally stationed near the oil sands. A company of this size, however, isn’t immune to the occasional setback. As Alberta’s economy rose and fell over the years, Weldco – and Lunt – had to make some hard, strategic decisions. In 2010 a slowing economy resulted in the closure of Weldco’s Tacoma plant, and changes on the political front have affected the company too. “Since the closure of our Tacoma operation in 2010, we’ve lost some ground in the Pacific Northwest,” Lunt admits. “Overcoming the cyclical nature that drives our key markets is a major challenge. We’ve diversified a lot over the years, but the need to continually find new markets is important. “Learning to adapt and respond to our current political environment is another major challenge that currently makes doing business in Canada very frustrating. When our new prime minster turned his back on the resource sector and made the cute comment that we are now a ‘resourcefulness-based economy,’ I was dumbstruck. I hope one day he realizes that practically every successful manufacturer in Canada is, by nature, resourceful, or they would not be in business. What Weldco desperately needs is an active proponent of the ‘resource’ sector that allows us to engineer, build and deliver innovative products to support our customers and grow our collective energy-based economy in a responsible manner.” Innovative products. Weldco is at the top of their game when it comes to those. Underground ejector bodies, tire manipulators, wheel loader log grapples, hydraulic angle blades and engineered lifting devices don’t even scratch the surface of what the company offers. With one of the most comprehensive selection of products for all of North America’s key industry sectors, it’s no wonder that “real workmanship” has brought the company this far, and like every great “parent,” they love to see how their “children” are faring out in the world. How does Weldco manage this? In a fun and interactive way.


YOUR OPPORTUNITIES ARE EXPANDING,

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Welcome Chris Lavin and Solved. Strategic Management Consultants You’re always looking for new opportunities to strengthen your organization. That’s why MNP continues to add the best within the industry to meet all your business needs. Please join us in welcoming Chris Lavin to MNP’s Consulting Services. Serving public sector clients in Alberta, North America and Europe for more than 15 years, Chris shares MNP’s values and commitment to helping clients succeed. By bringing together our combined expertise serving municipal, provincial and federal governments, as well as private enterprise and not-for-profit organizations, we build the best team possible to ensure you stay efficient and effective. To find out more about what MNP can do for you contact Chris Lavin, Consulting Services, at 780.733.8640 or chris.lavin@mnp.ca


DARREN LUNT EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME // COVER

The Weldco Milestone Timeline 1945 1974 1979 ESTABLISHED IN VANCOUVER, B.C.

EXPANDED TO EDMONTON

1970

PURCHASED BY WHONNOCK INDUSTRIES

PURCHASED BY EMPLOYEE GROUP

1977

EXPANDED INTO U.S. (ENUMCLAW, WASHINGTON)

1985

MERGED WITH BEALES STEEL PRODUCTS (CREATING WELDCO-BEALES MFG.)

ABOVE: DARREN LUNT, PRESIDENT OF WELDCO COMPANIES PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

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DARREN LUNT EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME // COVER

The Weldco 2016 photo contest allows clients to take a photo of their favourite product in action. Prizes are awarded monthly with a grand prize given out at the end of the year. “We often don’t get to see our products go to work after we send them off to our dealers. The photo shoot is our way to encourage our dealers and their customers to take pictures from the field that showcase our attachments and cranes in action,” smiles Lunt. He keeps things just as fun and engaging for the staff. “I learned from my days in fundraising that people don’t support a losing cause, so make sure you always promote the positive. As one of the leaders at Weldco, I work hard to create a positive atmosphere and a glass-half-full attitude despite the circumstances. I find people are motivated to work harder and longer (when necessary) if they are in a positive environment. “The people I work with are incredible. We are working together to build a culture that empowers the team and focuses on results. We’ve eliminated egos and self-serving agendas, and the trust we have in one another challenges us to be better. We all play a critical role in the future success of Weldco, regardless of position or title,” he says of the 240 employees in the Weldco Companies group. Lunt continues, “At Weldco, nothing would get accomplished without team work. Everything is linked: sales, engineering, production planning, purchasing, safety, finance, QC/QA, fabrication and shipping. When we don’t work as a team, we are challenged to perform to our customer’s expectations. We had some dysfunctional elements in the team, and they were addressed. Understanding the need and value of the team, and making each member accountable, is our go-forward mantra at Weldco.” For Lunt, and for Weldco, going forward means reaching out to the community, as well as supporting employees and clients. The company supports the Boys & Girls Clubs Big Brothers Big Sisters of Edmonton & Area by participating in the organization’s site-based corporate mentoring project. “Children from a neighbouring school travel to our office on a weekly basis with their program coordinator to spend one-on-one time with their Weldco Mentors over the lunch hour. We currently have five Weldco employees enrolled in the program,” says the leader with pride.

2006

1998

ACQUIRED BATEMAN MANUFACTURING IN BARRIE, ONT

SALE OF WELDCO-BEALES TO NORTERRA INC.

2001

U.S. MANUFACTURING PLANT MOVES FROM ENUMCLAW TO TACOMA, WASHINGTON

2009

WELDCO OPENS NEW FACILITY IN FORT MCKAY, ALTA (WELDCO HEAVY INDUSTRIES) & WELDCO COMPANIES WAS ESTABLISHED TO CAPTURE THREE DISTINCT OPERATIONS: WELDCOBEALES MFG., WELDCO HYDRA-LIFT, AND WELDCO HEAVY INDUSTRIES

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DARREN LUNT EXPLAINS HOW REAL WORKMANSHIP LASTS A LIFETIME // COVER

IT IS MORE THAN SOUND. LUNT LEADS BY LEVERAGING HIS PAST EXPERIENCES WITH HIS INTIMATE KNOWLEDGE OF THE INDUSTRY. HE STAYS CONNECTED TO THE COMMUNITY BY SITTING ON BOARDS OF PROMINENT ASSOCIATIONS, COACHING HIS SON’S BALL HOCKEY TEAM, (PREVIOUSLY) TEACHING AN EVENING COURSE AT NAIT AND BALANCING IT ALL WITH QUALITY TIME WITH FAMILY AND FRIENDS. For Lunt, spending just over 10 years (so far) in a company swiftly coming up on a century of manufacturing is an honour he doesn’t take lightly. One would think a company this established is built on tradition, processes and hardand-fast rules, but it’s not. Sure, those processes and the underlying framework are firmly in place, but when it comes to flexing with the times and keeping the company floating on the heaving economic tides, Weldco’s leadership team turns to something that is alive and well in Alberta’s west – the entrepreneurial spirit. “Before joining Weldco, I was considering the idea of buying an existing business,” says Lunt. Like many entrepreneurs before him, he found it difficult to balance the desire to strike out on his own against the stability of entering an established corporation. With Weldco, he was able to do both. “Fortunately the entrepreneurial spirit at Weldco is incredible, and we are not afraid to take calculated risks to grow the business. Our ownership group has shown a strong commitment to support these initiatives, so long as the business case we present is sound.” It is more than sound. Lunt leads by leveraging his past experiences with his intimate knowledge of the industry. He stays connected to the community by sitting on boards of prominent associations, coaching his son’s ball hockey team, (previously) teaching an evening course at NAIT and balancing it all with quality time with family and friends. “I recently snuck a well-used dirt bike into my garage this spring with hopes and aspirations of getting it running so I can regain some of my youth on mountain trails and remote cut-lines,” Lunt slyly admits. “A few years ago I helped organize a group of friends and we rode our motorbikes from Edmonton up to Inuvik. It was a trip of a lifetime!” As the president of Weldco-Beales, Lunt is a man on the go, and he credits two very special people – his parents – for

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giving him the tools to be a great leader, husband, father and philanthropist, “I, unfortunately, lost my mother when she was only 53, which was a tough blow to my three brothers, father and me. However, she thoroughly instilled in us the importance of humility. The other half of the parent team, my father, is the ultimate teacher. He leads by example. There is nothing he can’t do if he puts his mind to it. He’s an incredibly talented individual that demonstrates the importance of hard work and perseverance. As he battles the effects of Parkinson’s disease, he continues to be my inspiration.” Last year Weldco was presented with the Innovation Award from one of their major dealer networks, acknowledging the company’s efforts to create solutions and drive profitability. Recently, this same dealer group presented Weldco with their Supplier of the Year award. “Coming from one of our largest customers, and the biggest OEM dealer of heavy equipment in the world, this award was very humbling,” says Lunt. In 2013 Weldco was the recipient of the Canadian Welding Association’s (CWA) Productivity Award. To recognize the company’s efforts and investment to increase efficiencies and productivity. This is a company that has always been, and will always be, on the move. “Once we get out of this market funk we will be ready to resume a plan of strategic growth. We are currently positioning ourselves to re-enter industries and sectors that show promise. We are also exploring options that will support Weldco’s expansion back into the U.S. market. Even international markets are being tested. It’s very exciting,” Lunt concludes. “Thank you [clients] for giving us the opportunity to partner with your success.”


2016 Board of Directors Executive

Chair: Bill Blais Vice President, Land Development, MacLab Enterprises Vice Chair: James Merkosky Partner, Tax Services, Pricewaterhouse Coopers LLP Treasurer: Len Rhodes, President & CEO, Edmonton Eskimo Football Club Past Chair: Jerri Cairns, Partner, Parlee McLaws LLP

Directors

Bryan DeNeve Senior Vice President Finance & CFO, Capital Power Dr. Glenn Feltham President & CEO, Northern Alberta Institute of Technology Crystal Graham Partner & Licensed Interior Designer, Kasian Architecture Interior Design & Planning Ltd. Dawn Harsch Owner, Exquisicare Inc. Alyson Hodson President & CEO, zag creative Elan MacDonald President, Impact Consulting Scott McEachern Vice President, Engineering & Projects, Enbridge Pipelines Inc. Craig Thorkelsson Manager of Corporate Taxation, PCL Constructors Inc.

Chamber Executive

Janet Riopel President & CEO Edmonton Chamber of Commerce Max Frank Vice President, Membership & Operations Edmonton Chamber of Commerce Warren Singh Vice President, Policy & Outreach Edmonton Chamber of Commerce Ian Morris Vice President, Finance Edmonton Chamber of Commerce

Contact

Edmonton Chamber of Commerce #600 – 9990 Jasper Avenue Edmonton, AB T5J 1P7 T: 780.426.4620 F: 780.424.7946

Carbon Tax Rebate Would Motivate Businesses to Lower Emissions By Warren Singh, VP of Policy and Outreach

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he Edmonton Chamber of Commerce fully supports efforts to address climate change, including measures aimed at lowering the greenhouse gas emissions produced by business and individuals. That is why we are advocating for a carbon tax rebate for small- and medium-sized enterprises (SMEs). A rebate would provide a significant incentive to businesses to reduce their greenhouse gas emissions while decreasing costs for those businesses. When the Alberta government released its Climate Leadership Plan in November 2015, it included a recommendation to create a Carbon Competitiveness Regulation (CCR). This became Alberta’s carbon tax, which sets a roughly $30-per-tonne price on emissions. (The tax will be $20-pertonne when introduced in 2017 and will rise to $30-per-tonne in 2018.) Unfortunately, the Climate Leadership Plan contained no recommendations on how best to mitigate the impact of this tax on SMEs. The provincial government did reduce the small business corporate income tax rate from three per cent to two per cent in their April 2016 budget. However, the tax cut will only apply to those businesses making a profit. For those making little to no profit, the effects of the tax cut will be insignificant – one per cent of zero is zero. The Edmonton Chamber believes more should be done. What we do know is that the carbon tax will apply to any business that burns fuel for heat, uses electricity, or has vehicles that run on fossil fuels. The impact is likely to be substantial. While the Chamber supports the tax cut as a way to help the business community during tough economic times, we need to ensure SMEs are financially sustainable and actually reduce their greenhouse gas emissions. The Chamber’s Plan The Chamber wants the provincial government to provide an annual outputbased rebate to businesses that reflects the average carbon tax paid in the production of those goods or services. Our proposed rebate will help return some of the tax revenues to businesses most affected by the carbon tax, allowing them to re-invest the money into their own businesses and keep Albertans employed. By focusing on emissions-intensive businesses that compete with other jurisdictions, the province can ensure that the rebate is targeted to the businesses who need it most and avoid the potentially harmful consequences of the carbon tax as it now stands. The carbon tax won’t reduce greenhouse gas emissions if it forces emissions-intensive businesses to simply move their operations elsewhere. This is called “carbon leakage” and it won’t help diminish global GHG reductions. We need businesses to stay in Alberta where they are encouraged to operate as efficiently as possible. With the right kind of rebate, we can keep businesses here, keep Albertans employed, and reduce greenhouse gas emissions. For example, let’s say we have a manufacturer of widgets. If the average widget requires 11 kg of carbon-dioxide emissions to produce, and Alberta’s carbon tax rate is $30/tonne, then manufacturers will pay on average 33 cents in carbon taxes for each widget produced. With the Chamber’s proposed tax BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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rebate, the province would send a rebate to Alberta’s manufacturers each year, worth 33 cents for every widget they produce. By using the average carbon tax cost for each product, businesses would have an incentive to produce goods more efficiently. Again, using the above example – Company A, who has an energy-efficient operation, pays only 29 cents in carbon taxes per widget. Company B, who has less efficient equipment and processes, pays 40 cents in carbon taxes per widget. So, the more efficient manufacturer will net a profit of four cents for every widget produced, while the less efficient producer will end up paying seven cents per widget in carbon taxes, when the annual rebate is taken into account. In other words, companies that are more efficient than the industry average, will make money on the carbon tax. An output-based rebate will reward companies that are most efficient and will encourage all companies to

work hard to increase their efficiency because they know some of their carbon tax costs will be offset. It might seem complicated to develop a different rebate for each industry, but much of the data needed to do so already exists in Canada and is already being used by other jurisdictions, including California. Under the Edmonton Chamber’s proposal, rebates will focuses on SMEs in sectors most affected by the carbon tax or those that are trade exposed. We feel this will help the most businesses most susceptible to the carbon tax. In doing so, we propose to keep more companies operating here in Alberta while reducing our overall carbon footprint. This can further enhance Alberta’s reputation as a responsible energy jurisdiction and maintain our position as the best place to invest, start and operate a business. We want to know how your business will be affected by the new carbon tax. Contact us at policy@edmontonchamber.com.

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Have you Heard About the Cloud?

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loud computing will continue to be a hot topic in the IT world, but what does cloud computing really mean? Think of it like watching television. Traditional “on-premise” computing is like watching TV with a DVD player. All you need is power and you can watch your shows because they are stored in your DVD collection. However, you are limited by your selection of DVDs, and you’re solely responsible for the maintenance of your TV and DVD player and storing your DVDs. Cloud computing is like having cable. Your shows are “out there,” giving you access to a wider variety. Yes, you still have to make sure your TV is working, but a whole lot of upkeep is now someone else’s problem. Just pay your monthly cable fee and watch your shows. No one solution is perfect, of course, and most TV viewers have some combination of cable, local devices and services like Netflix. Similarly, the best solution for your company might be a hybrid computing environment, with some services on local servers and some services in the cloud. Cable allows multiple people to watch the same show from multiple locations. Cloud computing allows similar sharing of content between locations. If your only copy of your favourite movie on DVD gets scratched up or your DVD player dies, you can no longer watch. Similarly if all your corporate information and software lives only on a server in your office, a hardware or power failure means losing time and money and possibly your ability to do business. On the other hand, if all you have is a cable subscription and your cable goes out, or you’ve moved completely to cloud computing and your internet fails, everything comes to a similarly screeching halt.

The best set up for your business computing needs depends on your preferences and your end game. There are even more options for cloud and on-premise computing than there are for television viewing. You might recognise the names of popular cloud services such as Dropbox and Office 365. But the cloud also includes services like QuickBooks Online for accounting, Salesforce for CRM, Mozy for backup, and Amazon EC2 for entire servers. Finding the right mix of services needs to be driven by the unique needs and goals of your organization. If you’re considering a move to the cloud, make sure to get the guidance you need from an I.T. advisor you can trust: • Are you working with someone who has the experience with both on-premise and cloud computing solutions? • Do they understand and listen to your concerns? • Are they in-line with your strategic goals and company culture? • Do they have back up solutions to make sure there is no loss of data? • Do they have 24/7 support available? • Do you have 100% confidence that they will make the right recommendations for your businesses I.T.? Guest blogspot, courtesy of Edmonton Chamber of Commerce Member Winston Pei, Savvia

Members in this Issue Drader Manufacturing Industries Ltd., and Dynamic Manufacturing Solutions in Will Manufacturing Carry Edmonton Through the Downturn? on page 47

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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1•877•630•2399

JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM


How Savvy Organizations Maximize the Value of Chamber Membership

A

recent study by the US Bureau of Labour Statistics confirms some astonishing numbers about gym memberships: $39 - The average amount of gym membership money that goes to waste from under-utilization 67% - Percent of people with gym memberships that NEVER use them! For many, our own experiences bear this out. We join a gym with the full intention of using all the wonderful equipment and amenities on offer. We’ll hit the weight room, run the track, take the kids for a dip in the aquatic center, maybe even sign up for those Zumba classes. Why, when we’re done, the mighty Thor will be envious of our physiques! Then our busy lives get in the way and we’re lucky to make it there 3 times a week to do our penance on the treadmill. But in the back of our mind, we can’t escape that nagging feeling: the more time we could carve out to fully utilize that gym membership, the better off we’d be.

The same holds true for membership with the Edmonton Chamber of Commerce. One of the most common comments we hear from our members is A) how much they value their membership & B) Because of that value, how frustrating it is that they can’t find more time to utilize all of the benefits that Chamber membership provides. It’s an understandable concern, but not an insurmountable one. Primarily because, unlike that gym membership, the benefits and perks of Chamber membership can be shared with every employee in your organization! Because of that simple and powerful distinction, those organizations that effectively distribute their chamber benefits are the ones that most benefit from their membership. Here’s an example of potential membership utilization in a standard smallto-medium enterprise: 1) Owners/Founders engage with one or more of the Chamber’s Policy Committees to ensure key strategic objectives and market conditions are considered within the Chamber’s overall advocacy agenda & legislative lobbying efforts. BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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2) Finance or HR Managers utilize affinity programs like the Chambers of Commerce Group Insurance Plan, UPS discount program, ATB Business’ discounted merchant services, and others, to lower company overheads—thus achieving bottom line savings from their membership.

to foster professional development and mitigate organizational skill gaps.

3) Sales & PR staff attend Chamber Mixers, personally connecting with fellow chamber members to develop sales prospects, partner alliances, business mentors, service partnerships, and more!

As you can see, the key to maximizing the value of your Chamber of Commerce membership lies in spreading the word throughout your organization. In doing so, not only will you better satisfy the varied needs of your organization, you’ll engender a more informed and engaged employee AND, you’ll do all of this without breaking a sweat. Now that’s value!

4) Operational staff take advantage of discounted member pricing on chamber educational events and training resources

5) Marketing & Communications staff leverage the Chamber’s content marketing, member coupons, & advertising channels to broaden the reach of their communications to a targeted business audience.

Connecting Business 2016 Premier’s State-of-the-Province Address Luncheon

Premier Rachel Notley received a warm reception from the business and community leaders in attendance.

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Head Table Guest L to R: James Merkosky - Edmonton Chamber of Commerce Vice Chair, Mayor Don Iveson - City of Edmonton, Chief William Morin - Enoch Cree Nation, Bill Blais - Edmonton Chamber of Commerce Chair, Janet M. Riopel - Edmonton Chamber of Commerce President & CEO, Premier Rachel Notley - Government of Alberta, Brian Vaasjo - Capital Power President & CEO.

Chamber CEO & President Janet M. Riopel welcomed attendees to this much anticipated event.

Edmonton Chamber of Commerce members enjoyed the opportunity to catch up with old friends and renew business partnerships.

Local, provincial, and federal media were out in force to hear insights from Premier Rachel Notley regarding the provincial budget released the day prior.

A sold-out audience enjoyed the opportunity for noshing, networking and news gathering at the 2016 Premier’s State-of-theProvince Address, hosted by the Edmonton Chamber of Commerce. BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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Advocate The Edmonton Chamber of Commerce advocates on your behalf through… • Policy Committees and Task Forces • Strategic Policy Priorities • Small Business-Centric Advocacy

Educate The Edmonton Chamber of Commerce educates you with… • Premium Speakers, Information Sessions • Policy Updates, Advocacy Awareness • Articles, Blogs, News

Connect The Edmonton Chamber of Commerce connects you to…

Take advantage of all the benefits that Edmonton Chamber membership provides.

• Business Owners, Entrepreneurs, Edmonton Chamber Members • Policy Advocates, Legislators, Decision Makers • Business Resources, Trainers, Mentors

Contact us today for more information at membership@edmontonchamber.com or 780.426.4620

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OIL: IS THERE A ‘BREAK-EVEN’ PRICE? // OIL & GAS

OIL: IS THERE A

‘BREAK-EVEN’ BY RECHELL MCDONALD

PRICE?

TODAY WE DELVE INTO THE RELATIONSHIP BETWEEN MARKET VALUES AND PRODUCTION COSTS TO DETERMINE IF THERE IS REALLY A BREAK-EVEN PRICE IN THE INDUSTRY.

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OIL: IS THERE A ‘BREAK-EVEN’ PRICE? // OIL & GAS

L

et’s start at the end, shall we? The answer to the title question is no, not exactly. The oil industry is quite varied in terms of extraction methods and therefore, so is the bottom line. On the other hand, there is a sort of magic number you can watch for in the world market, and Kevin Birn, director, IHS Energy, explains exactly what that is and how it works. “In general, there are two costs when people talk ‘costs’ in the oil sands. There is the cost that includes the upfront capital to build the infrastructure required to produce the oil, and there is the cash cost it takes day-to-day to operate the facility once it’s online. If you look at the full cycle cost, which is the summation of the two costs mentioned, IHS estimates it takes an oil price of between $50 and $60 a barrel for a new greenfield in situ oil sands project to break even. Expansions of existing facilities, known as brownfield projects, being lower at around $50 per barrel. “Mines involve more upfront capital so they have a higher break-even price. Right now we are seeing about an $85-$95 dollar per barrel cost. It is important to note, however, that we have seen a significant reduction in the break-even cost for all oil sands projects over the last year – about a $10 reduction year-over-year – so its sizeable and mostly due to a reduction in operating costs.” The tough thing is that each facility is unique and their costs can range and vary over time, along with the price of oil itself. Birn also explained that even while having an idea of what the break-even price is, it’s not as simple as seeing the markets hit that number and then ramping up production and moving the product to market. Most producers have experienced financial losses during this decline, so it’s understandable that they will want the security of

higher than break-even prices before they get things moving again. Each company will make those decisions based on their financial health, when the time comes. Here is an example: “Say $50 is the minimum break-even price for an oil sands project,” says Birn. “It’s not just that I need $50 for the prevailing market price, it’s that I need to see a distance between my break-even price and the prevailing market price, and I would need to feel confident that the prevailing market price is on a trajectory upwards. It isn’t sufficient to reach a project break-even; a company must feel confident the price will exceed it by the time production is online. They will not want to risk being surprised to the downside.” We can’t hide from the fact that the industry has seen many layoffs, and many smaller oil companies have struggled with

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OIL: IS THERE A ‘BREAK-EVEN’ PRICE? // OIL & GAS

“IHS HAS HELD THE VIEW FOR A WHILE THAT WHAT THE MARKET HAS NEEDED IS SUB $45 VALUES FOR AT LEAST TWO CONSECUTIVE QUARTERS, OR SIX MONTHS. OIL PRICES PRIOR TO THE COLLAPSE ENCOURAGED TOO MUCH GLOBAL SUPPLY GROWTH AND WHEN YOU HAVE TOO MUCH OF SOMETHING, PRICES FALL TO SEND THE SIGNAL TO PRODUCE LESS.” ~ KEVIN BIRN

solvency, but the fact remains that some oil companies are still hiring. Why? Does that make sense?

Now, to the question that is burning a hole in all our minds… when will see a turn around?

According to Birn this should be expected. First, many oil companies, particularly the oil sands focused, are incredibly large—multiple thousands of employees—and these companies don’t stop functioning. They still have facilities to run and require people to conduct maintenance and to staff their various operations. In addition, when the price collapse began, many oil sands companies were in the middle of building multi-million dollar projects. There is way too much money invested in these facilities to simply stop the projects. It makes more financial sense to finish the project as soon as possible and bring production online. This is one reason why we have seen staggered layoffs since oil prices plummeted; some companies were in the middle of big projects, and some were just finishing.

“IHS has held the view for a while that what the market has needed is sub $45 values for at least two consecutive quarters, or six months. Oil prices prior to the collapse encouraged too much global supply growth and when you have too much of something, prices fall to send the signal to produce less. At the onset there was a lot of optimism that we would see a rapid decline in U.S. production but it just didn’t happen; probably because prices didn’t get low enough.”

Finally, companies also worry about career-cycles and knowledge transfer. People retire or get promoted and that leaves gaps that must be filled. Economic downturns are also prime time for strategic hiring practices and can allow a company to hire key employees that may not have been available otherwise.

You may be thinking that low oil prices are the exact opposite of what we want to see, but the rationale is that if prices stay low for a sufficient period of time, say two consecutive quarters, investment in new sources of supply will slow or cease and supply from existing fields will naturally decline as it is depleted. This takes time, but eventually available supply will fall and supply will once again meet demand. “In 2016 we’ve seen the market maintain price levels sufficiently low (sub $45), which should allow decline rates to accelerate and drag down production. Provided prices stay

ABOVE: KEVIN BIRN, DIRECTOR, IHS ENERGY. PHOTO SOURCE: IHS ENERGY

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM


DYNAWEST ENGINEERING Dedicated to building lasting client relationships through excellent service

D

ynaWest Engineering Ltd. is a consulting firm that knows quality work starts with building strong internal and external relationships. Founded in 2009, our Edmonton-based company has sufficient personnel to offer diversified expertise while still giving each client that personal attention that is vital in today’s marketplace. At DynaWest, we are passionate about innovative, effective and economical solutions and we are always approachable and responsive to our client’s needs. We are proud to provide our expert engineering solutions and design expertise in process engineering, mechanical piping, industrial and commercial facility design, civil engineering, structural engineering, mechanical HVAC, electrical engineering and instrumentation engineering for Alberta and Saskatchewan’s key industry sectors, such as: industrial, petro-chemical, commercial warehousing, seed handling facilities, and water treatment plants. DynaWest is pleased to count Suncor Energy, Canadian Natural Resources Ltd. (CNRL), Shell Canada Limited, BHP Billiton Ltd., Husky Oil Operations Ltd., Teck Resources Limited, Syncrude Canada Limited, Bayer Crop Science, City of Edmonton and Capital Power Corporation among our valued clients. For Suncor, we designed and built, in collaboration with Stuart Olson, the mobile equipment maintenance facility for Suncor’s Steepbank Mine expansion. This project included creating facilities for heavy haul truck maintenance, Trax™ and auxiliary mining equipment and shovel maintenance. The scope of services included civil site grading and preparation, building installation, mechanical HVAC systems and electrical distribution systems. We also provided engineering for the fuel lube island in the Steepbank mine expansion which included diesel storage tanks;

a pump building; fueling stations; office, warehouse, lunchroom and washroom facilities, along with an electrical/instrumentation building. These are just two of the numerous high-profile projects DynaWest has been privileged to complete for our many, valued clients. Others include CNRL’s Kirby Lake insitu oil sands project (HVAC design for water treatment, steam generation and oil treating buildings), BHP Billiton’s new waste water treatment plant, and Capital Power’s design/build of HVAC system for several pump stations – to name a few. Our agile company knows that it is important to support the communities in which we operate. To this end, DynaWest’s team has been involved with the Ronald McDonald House Meals that Mend program. This is a volunteer-led program that works to provide breakfast, lunch and dinner to families staying at the House. Our team has volunteered on several occasions to provide a meal, which includes shopping for ingredients, preparing the meal in the facilities at the Ronald McDonald House and clean up after the food has been served. We’ve grown quickly since our group of experienced engineers that enjoyed over 15 years of collaborating on various projects came together to form DynaWest. Our mission to be an attentive firm where clients feel valued, listened to and appreciated drives and inspires us every day. In working with DynaWest Engineering, our clients benefit from collaboration with a company that has diversified expertise, yet is small enough to provide personal service. We look forward to many more years of controlled growth and the continued corporate value on building not just a consulting engineering team, but a family.

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OIL: IS THERE A ‘BREAK-EVEN’ PRICE? // OIL & GAS

low for long enough, IHS believes the market will balance in the latter half of this year. What that means is that we will no longer be in a position where supply is exceeding the demand. “Hopefully this will set us up for a pace of recovery, but the end of oversupply isn’t the end of the story. There is still over half a trillion barrels of oil in storage in the United States alone, which will moderate the pace of recovery. It’s going to be a long climb to higher prices.” The short of the long here is that 2016 is the year that we start chipping away at the oversupply situation, with a chance that oversupply could end late in the year. But as for seeing a rebound in the market, the realist would have to say that later in 2017 is probably a more accurate timetable to see the beginnings of a rebound in terms of market values, then again, the realist would also point out that that assumption rests heavily on how oil prices look for the rest of this year. The good news is that with the oil sands being the third largest oil reserve in the world (the largest outside of OPEC) Canada is certainly not out of the game. Long-term projects will keep the industry going through the foreseeable future, and when prices do rebound, its product will be in demand. This is good news for all Albertans. “Oil sands supply growth is pretty much secure until 2020. This is because at the beginning of this price collapse we

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

had about a million barrels of capacity at different stages of construction. By and large that is going to come online and that means activity in the oil sands with new construction will continue through to 2017. If in 2018 no new project comes forward, it will be the first year with no new construction, but we still expect that oil sands production will exceed three million barrels in 2020, driven forward by projects still under construction and then the time it takes to ramp them up. After 2020 the growth is expected to continue but it will likely be different; dominated by smaller scale brownfield expansions of existing facilities. Ultimately, the shape of post-2020 growth will depend on the pace and scale of the global oil price recovery, what our access is like (will we have a pipeline?) and the cost reduction the industry is able to incur and then retain.” There are wildcards, such as technology, to consider too. Birn explained that important changes like innovating how projects are built, standardization, and new tech could have a huge impact on oil sands competitiveness, and ultimately, the level of activity in the future. Perhaps the biggest takeaway from this lesson is that we shouldn’t be scared of seeing those low oil values for the rest of 2016, and in fact, we should maybe start seeing them as a harbinger of better days on the horizon. The ship will right itself, we just have to remember that a big ship doesn’t come about as quickly as a small one.


BUSINESS AVIATION: ACCEPT NO SUBSTITUTE // AVIATION

Business Aviation: ACCEPT NO SUBSTITUTE I

BY DEBRA WARD

t may sound obvious: there is no substitute for business aviation, but possibly not for the reasons you may think. Business aviation is often misunderstood to be nothing more than an indulgence; like Ferraris, Rolexes and yachts. Nice, but not necessary. Many airlines hope you agree – and are offering increasingly luxurious first-class options to lure passengers into paying top dollar for what is still public transport, no matter how it’s dressed up. Despite the trappings of the new Extreme First Class, with bespoke concierge service, “private” suites and separate boarding, the reality is that your flight is still on the airline’s schedule, not yours, and you are sharing your space with hundreds of other people. A flight delay or cancellation – even if its not your flight or even at your airport – can delay your travel for hours, or even days. The advantages of business aviation have nothing to do with rolling in luxury. In fact, the vast majority of the aircraft and flights are the opposite of glamorous. They are simply functional – but that functionality is the core reason why business aviation can never be replaced.

It’s counter-intuitive, but business aviation is more important today than it has ever been, despite the expansion of scheduled airlines, routes and frequencies. Business aviation is driven far more by how business is conducted in the 21st century than by what airlines are doing. With today’s instantaneous and continuous communications, ubiquitous WiFi and the ease of using laptops and tablets, there is no such thing as downtime: businesses are always on-call, 24-7, serving customers, responding to issues or even just staying one step ahead of the competition. Business aviation is an extension of the 24-hour business cycle, giving companies the ultimate advantage of being in the right place at the right time. And it pays off. A series of studies by NEXA for the U.S.’s National Business Aviation Association tracks company performance using a number of standard financial metrics such as shareholder value and revenues. Consistently, the data show that “companies using business aviation overwhelmingly take top honors in revenue growth, innovation, employee satisfaction, and market share.”

PHOTO SOURCE: BOMBARDIER INC.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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BUSINESS AVIATION: ACCEPT NO SUBSTITUTE // AVIATION

sales, such as Bombardier Business Aircraft, Pratt & Whitney Canada and CAE. As impressive as the economic impact is, there is another element to business aviation that is not as easy to quantify, but arguably is as important – or even more important – than the numbers. There is no substitute for the safety and security that business aviation provides. Most people have heard that aviation is the safest form of travel. But there are many types of flights, and within all those forms of aviation, including scheduled service, the single safest form is business aviation. And, within business aviation, the country that boasts the best safety record in the world is Canada.

Canadian corporations that use business aviation likely have the same type of fiscal results, a view that is supported by looking at the economic impact of Canada’s own business aviation sector. The operation of business aircraft is a large and varied business in Canada, with many flight options. Corporations may own and operate their own aircraft. They could charter planes on an as-needed basis. Or lease aircraft for longer-term use. Regardless of how companies access business aircraft and flights, the economic impact – and downstream benefits – are huge. Just looking at aircraft operations, business aviation generates $3.2 billion in direct economic output, with over three-quarters of a billion of that – $760 million – generated directly in Alberta, which also contributes $75 million in taxes. This province is Canada’s second largest home for business aviation – with 419 aircraft based here, generating $210 million in wages to 2,560 Albertan pilots, engineers, dispatchers and other aviation professionals every year. But, the economic impact of operations is only half the picture. Canada is also a world leader in the manufacturing of business aircraft and aircraft parts. Those numbers, recently released in the CBAA 2016 Economic Impact of Business Aviation, solidifies the position that this sector is one of Canada’s most important generators of wealth, with manufacturing generating 10,780 jobs, $1 billion in wages and $3.6 billion in revenues. Business aviation is also a major feature in Canada’s most iconic companies that produce aviation products for international

There are a lot contributing factors. Canadian business aviation has had a safety management system in place since 2002 – in fact we were a world leader in developing this safety culture. The professionalism – and training – for pilots, crew, maintenance engineers and other aviation professionals, is some of the best – and most rigorous – in the world. Our standards are high, and so is the quality of our people. Coupled with safety, business aviation also offers complete personal security and confidentiality. In effect, using a business aviation aircraft is as close as one can be to working from their private office. Business aviation’s greatest challenge is always education, and there is no substitute for the facts. Decision-makers, whether in government, media or the private sector, too often default to what they think they know, instead of trying to learn about the actual value of this sector. The CBAA and its members are reaching out to members of Parliament and other influential Canadians directly, to share the true – and overwhelmingly positive – impacts of business aviation. It is a slow process, but we are making steady gains. Alberta members of the CBAA are a large part of this success and are some of the most effective champions for business aviation in the entire country. The national association is always pleased to recognize Alberta’s important role and this July, CBAA will be returning to the province to hold its annual convention and exhibit in Calgary, July 5-7, 2016. Expected to attract about 700 delegates, among its draws is Canada’s largest static display of corporate and private aircraft at the diamond sponsor, Million Air, hangar at the Calgary International Airport, and the charity golf tournament for Hope Air. The golf tournament is open to the public.

PHOTO SOURCE: CBAA

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM


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DIRECTORY // AVIATION

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

Ahlstrom Air Ltd. Kyle Wadden, Operations Manager / Chief Pilot Tel: 403.721.2203 Cell: 403.844.0978 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

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

Avmax Group Inc.

E-Z Air Inc.

Peregrine Helicopters

Absolute Aviation

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

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

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)

Edmonton Flying Club Ralph Henderson, President 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. 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

Integra Air

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

Kenn Borek Air Ltd.

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

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

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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 Air 200, 3 King Air 35

Million Air Calgary Charlyn Stang, General Manager (403) 718-0447 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

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

JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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

Calgary Flying Club Logan Ketchum 403-288-8831 www.Calgaryflyingclub.com Flight training/rental heading Cessna 152, Cessna 172, PA30, Cessna 172XP on floats. Off floats in winter, Citabria, Cirrus SR20

R1 Airlines Ltd.

Canadian North

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 2x Challenger 850 aircraft

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

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

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

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

Integra Air Westjet Airlines Ltd.

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

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

Ridge Rotors Inc. 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

Don Parkin, Executive VP Tel: 403 291 2464

Phoenix Heli-Flight Inc.

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

ALBERTA CHARTER OPERATORS CHARTER FIXED WING 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

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

North Cariboo Air 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

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

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


DIRECTORY // AVIATION Sky Wings Aviation Academy Ltd.

Delta Helicopters Ltd.

Remote Helicopters Ltd.

Enerjet

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

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

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

R1 Airlines Ltd.

E-Z Air Inc.

Ridge Rotors Inc.

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 2x Challenger 850 aircraft

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

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

Slave Lake Helicopters Ltd.

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

Genesis Aviation Inc.

Sunwest Aviation Ltd.

Edmonton Police Service

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 Air 200, 3 King Air 35

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

Great Slave Helicopters Ltd.

Sloan Helicopters Ltd.

Sterling Aviation Services Inc.

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

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

Louise Dunlop, President 403.250.6707 www.Sterlinginflight.com operations@sterlinginflight.com Inflight Services, cabin attendants, training, ac interiors

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

Viking Air Limited Evan McCorry, VP International Sales & Marketing 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

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

Black Swan Helicopters Ltd. 1-780-338-2964 (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

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

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

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

Peregrine Helicopters Tel: 780.865.3353 www.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

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

Wood Buffalo Helicopters Michael Morin, President Tel: 780.743.5588 Toll Free: 1.866.743.5588 operations@woodbuffalohelicopters.ca Aircraft Operated: Bell 206B, Eurocopter EC120B, Eurocopter AS350-B2, Bel 412

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

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

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

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

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

Prairie Aircraft Sales Ltd. Kathy Wrobel, President Tel: 403.286.4277 www.prairieaircraft.com sales@prairieaircraft.com Prairie Aircraft Sales is the EXCLUSIVE DEALER FOR: New Cessna Caravans and Piston Aircraft, New Beechcraft Piston Aircraft for Western / Northern Canada

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

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

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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WILL MANUFACTURING CARRY EDMONTON THROUGH THE DOWNTURN? // MANUFACTURING

WILL

BY LAURA BOHNERT

E

dmonton’s economy has hit a bit of a snag of late. Its oil industry in particular shaken and a lot of sectors are taking a significant hit. However, not all of Edmonton’s sectors are feeling the pinch. In spite of its shaky economy, Edmonton’s manufacturing sector still continues to be strong— will this be enough to help carry Edmonton through its recession? While it comes as no surprise to state that most of Alberta’s industries are noticing a current downturn as a result of its recently shaken economy, it is important to note that not all industries are feeling the same pinch. A lot of economic sectors—Edmonton’s manufacturing sector in particular—continue to go strong, and some companies are even taking this economic lull as an opportunity to expand, strengthen, and diversify, a strategy which could lead to a much stronger Edmonton economy when things turn around for Alberta again. As Kevin McTavish, VP of manufacturing at Drader Manufacturing Industries Ltd., explains, maintaining and developing economic diversification within your business can make all the difference when the economy takes a turn for the worst. “We have absolutely felt the negative effects of the downturn,” McTavish quotes. “There is no question about that. Any company who sells products to people in Edmonton and Alberta is going to feel the squeeze, but being diversified can make a big difference for businesses.”

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

CARRY EDMONTON THROUGH THE DOWNTURN?


WILL MANUFACTURING CARRY EDMONTON THROUGH THE DOWNTURN? // MANUFACTURING

As McTavish explains, diversification into different industries can help protect your business when one industry in particular experiences difficulty. Diversification isn’t just a strategy for growth and development; it’s a line of defense for your business. “Being diversified is a big thing,” McTavish continues. “Being able to service different industries is an important factor in a business’ ability to sustain itself through economic difficulties like this one. A business should not rely on one industry alone.” “But that isn’t all,” McTavish adds. “A business should have products that are accessible to the export market as well, and the key to that is the design and innovation of both your customer’s products as well as your own products.” Drader Manufacturing has been in Edmonton since 1947. “Drader Manufacturing started out as a machine shop,” explains McTavish. “The Drader family started the company and my father joined to grow and expand the business. My brother and I followed suit, and now the three of us run the company.” Since its debut as a machine shop, Drader Manufacturing has developed into a high production manufacturing facility. For decades, now, it has specialized in the manufacturing

of plastic products, but the company’s expansion hasn’t stopped there—nor has Edmonton’s current economic downturn hindered the company’s plans for progress. “Edmonton can be a difficult environment, even at the best of times, for businesses that aren’t in the oil and gas industry. As a result, our company has been diversifying into other industries as well, and that diversification has helped us weather the storms in other markets,” states McTavish. “Now the oil and gas market is down, so we are continuing to look at research and development projects, but we are also looking to diversify more into oil and gas. The dollar is down and we can offer 3D printing services at competitive rates. We can provide the industry with an opportunity to re-examine their current products and consider plastic alternatives and look at plastic reusable products.” “We also specialize in returnable plastic containers,” McTavish adds. “Manufacturing containers for bread, milk, or other consumables is another industry we are looking to expand into.” “Five years ago, we opened a facility in Brampton, Ontario because business required us to establish a location down there,” McTavish explains. “Business requires us to look elsewhere, further east, as well, and we are now looking into the States because of the current foreign exchange. We would like to start exporting more products.”

ABOVE: BEFORE AND AFTER OF DRADER LOCATION IN EDMONTON. BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // JUNE 2016

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WILL MANUFACTURING CARRY EDMONTON THROUGH THE DOWNTURN? // MANUFACTURING

DYNAMIC MANUFACTURING SOLUTIONS, ALONG WITH MANY OTHER BUSINESSES IN THE MANUFACTURING SECTOR, CONSIDERS DIVERSIFICATION TO BE A KEY MOVE IN SUSTAINING STRONG OPERATIONS THROUGHOUT THE ECONOMY’S FLUCTUATIONS. The decline in Edmonton’s economy is providing both incentive and opportunity for businesses like Drader Manufacturing to expand and diversify, but, as Mark Hamblin, president of Dynamic Manufacturing Solutions, explains, the current state of the economy also provides industries who are experiencing the decline an opportunity to re-evaluate technologies and improve efficiencies before things start to pick up again. “We’ve taken a bit of a hit to manufacturing this year,” states Hamblin, “but overall our company has been growing and developing quite well based on the strength of the manufacturing industry in Edmonton, and last year was our best year ever.” “Business has taken hit,” Hamblin continues, “but when things are a little slower it’s actually the right time to implement software or technologies that can make your business more efficient, and to implement internal projects that can help your business prepare for the future.” “I think a lot of businesses in the manufacturing industry have taken a hit, but most of the companies that are planning to stay in it for the long run are taking advantage of the downturn,” Hamblin explains. “They are taking the time to look at what to do to become more efficient and streamlined so that, when things do pick up again—and they will—they can manage better.” Dynamic Manufacturing Solutions started in 2008. The company initially implemented ear piece systems in manufacturing and amongst groups of independent contractors; however, it quickly expanded to deliver Microsoft ERP solutions, IT infrastructure, and custom software development to companies in the manufacturing and distribution industries. “Edmonton has a fair amount of manufacturing to offer,” states Hamblin, “so it was a good space for us to launch our company.” Dynamic Manufacturing Solutions, along with many other businesses in the manufacturing sector, considers diversification to be a key move in sustaining strong

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JUNE 2016 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

operations throughout the economy’s fluctuations. “We are currently expanding our solutions to cover more organizations, and to make the shift into distribution instead of just manufacturing,” Hamblin explains. “We are looking to grow our client base, and to do that we are going to grow our products, primarily within Edmonton and Calgary.” As both Dynamic Manufacturing Solutions and Drader Manufacturing Industries have demonstrated, diversification is a key strategy in maintaining the strength and success of a business throughout any of the economic turmoil it may encounter, but the current strength and innovation of Edmonton’s manufacturing industry also carries a lot of potential for the economy as it struggles through its current downturn. “There are enough opportunities for diversification and for export within the manufacturing industry to make a big impact on the Edmonton economy,” quotes Hamblin. “A downturn in one sector, even though it is a big sector, doesn’t mean manufacturers need to suffer. There are lots of other opportunities for manufacturers to shine, and there are also lots of exporters doing exceptionally well right now in Edmonton, and these opportunities and successes all have a strong impact on the economy.” “The province is busy looking into the oil and gas industry, and other manufacturing industries don’t always get noticed,” McTavish agrees, “but Alberta employs a lot of people in the manufacturing industry.” Employment opportunities within manufacturing aren’t the only ways McTavish believes the manufacturing industry can help Edmonton through its economic challenges: “Manufacturing opens up a lot of opportunities for other industries,” states McTavish. “Simply put, more things can be done throughout a diverse range of industries with the help of manufacturing. Companies can now look internally within the province for its supply chain, and that is an important opportunity when it comes to strengthening Alberta’s economy.”


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BOMA LAUNCHES NEW SUSTAINABLE CERTIFICATION

B

OMA Canada has launched BOMA BEST Sustainable Workplaces to help buildings improve key performance indicators. The latest piece of the program involves a standardized framework that requires managers and owners to benchmark, monitor, and set goals in seven measurable areas: energy, water, waste, e-waste, construction and renovation, procurement practices, business and employee travel and indoor air quality. Organizations, including Bentall Kennedy and East Port Properties, completed the pilot program and, along with some tenants, offered feedback about the process. “What we quickly discovered is that many of the tenants of the pilot program, who had a green mandate, were already doing much of the work required to earn certification,” said Gloria Young, chief financial officer

and director of operations at the law firm Cox & Palmer. “What was missing was a blueprint which gave them the ability to record what had already been done and set a plan for continuous improvement.” Results from the audit of the law firm’s waste showed its largest source of waste was their garbage bags, quarter filled or less, being deposited in landfills. “It benefits everyone, we’re reducing what’s going to the landfills, we’re reducing our energy consumption, we’re trying to be healthier, and it’s not difficult when you realize some of this is common sense and comes quite naturally,” she adds. The Sustainable Workplaces program is now ready for all workplaces.

www.bomaedmonton.org | BOMA Edmonton Newsletter | June 2016

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A CASE FOR CONSIDERING THE CORE

A

cross North America, businesses are moving downtown and doing so at a pace that we haven’t seen for quite some time. Why? In today’s fierce competition for talent, companies are looking to relocate where their prospects want to work. Millennials are now the largest sector of the employed public, and they are both choosing to live in urban centres at a higher rate than any population before, and looking for employment within the core. People are looking for districts that provide a critical mass of activities which facilitate business, learning and cultural exchange. For millennials, the advantages of a downtown-focused lifestyle are walkability and public transport access, as well as proximity not only to work, but to restaurants, art galleries, concerts and other nightlife so they can quickly transition from workday to afterhours. “It’s something that was really important to me, being able to walk to work,” says Ian O’Donnell field services and project manager at Manasc Isaac Architecture and vice-president of the Downtown Edmonton Community League. “I literally drew a radius around where I lived and said ‘how far would

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June 2016 | BOMA Edmonton Newsletter | www.bomaedmonton.org

For millennials, the advantages of a downtownfocused lifestyle are walkability and public transport access, as well as proximity not only to work, but to restaurants, art galleries, concerts and other nightlife so they can quickly transition from workday to afterhours. I walk’ and ‘what great companies are in that radius’ and [Manasc Isaac] was one of them.” Edmonton’s fastest growing demographic is 25 to 39 year olds, or millennials, and businesses within the region are taking note of this trend and using it to their advantage. Business moves and expansions within Edmonton’s core include Yardstick’s move to 104th street, Jobber’s expansion into 15,000 square feet in the Jasper Block building, and


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www.bomaedmonton.org | BOMA Edmonton Newsletter | June 2016

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Anchor institutes and companies want to cluster and connect with smaller firms, startups, community hubs and business incubators. The density that’s created when all of these companies from different industries collect in the core creates a hustle and bustle that can create surprising and lucrative results. Stantec’s impending move from the outskirts of downtown to ICE District, a move similar to the one that zag creative made recently. “Choosing to invest in space, and place our office in the downtown core, especially on 104th street was a strategic move,” explains Alyson Hodson, president and CEO of zag creative. “Our location helps us to not only attract talent, but also to retain it by being close to transit, hospitality hot spots and places where commerce happens on a daily basis. Our team of bright minds thrive in vibrant and bustling environments. Downtown Edmonton fits the bill and with everything that is happening here from new developments to the revitalization of older areas, it’s just going to keep getting better. We couldn’t be happier.”

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June 2016 | BOMA Edmonton Newsletter | www.bomaedmonton.org

Anchor institutes and companies want to cluster and connect with smaller firms, startups, community hubs and business incubators. The density that’s created when all of these companies from different industries collect in the core creates a hustle and bustle that can create surprising and lucrative results. Natural collisions between talented people in collaborative spaces — at meet-ups, coffee shops, parks, community events, restaurants — creates the opportunity for new ideas, perspectives and partnerships. As companies look to find triggers for innovation outside of their four walls, proximity to other leading businesses is becoming of increasing importance, and a downtown location offers just that. “When you look at a model like Startup Edmonton, where developers, designers, founders, investors and mentors are


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constantly colliding at their campus and creating amazing companies and products, it’s easy to see how this model applied to the larger downtown business community could create similar successes,” says Jimmy Shewchuk, manager of Urban Economy at Edmonton Economic Development. “Company A meets for coffee at the table next to Company B and if their conversations spill over anything can happen.” Downtown Edmonton is well on its way to unprecedented transformation, with over $5 billion of development being invested into Edmonton’s central business district over the next few years, so there are many opportunities for businesses both within and outside of the region to consider a central location. Great talent, higher engagement, increased innovation — all signs point to downtown. www.bomaedmonton.org | BOMA Edmonton Newsletter | June 2016

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COMMERCIAL REAL ESTATE CONTRIBUTES $6.2 BILLION TO EDMONTON’S ECONOMY

E

dmonton’s skyline is filled with commercial buildings, dotting the landscape in all corners of the city. While most people think of commercial buildings as units built out of necessity to house business, retail, manufacturing and more, they are not often considered indicators of a city’s economy. But a recently released report prepared by The Building Owners and Managers Association (BOMA) Edmonton, in cooperation with the University of Alberta School of Business, reveals Edmonton’s non-residential sector of the commercial real estate (CRE) industry actually adds to the city’s GDP – to the tune of a whopping $6.2 billion annually.

While most people think of commercial buildings as units built out of necessity to house business, retail, manufacturing and more, they are not often considered indicators of a city’s economy.

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June 2016 | BOMA Edmonton Newsletter | www.bomaedmonton.org

“We wanted to quantitatively demonstrate the economic impact and contribution commercial real estate has in our city’s economy and GDP,” says Achint Malhotra, the Masters of Business Administration student who prepared the report over the past year for BOMA Edmonton. The report collects data from a variety of industry sources, such as Statistics Canada, the City of Edmonton and the brokerage community. It takes into account direct and indirect economic impacts.


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Dale Johnson adds the report will provide credibility to industry organizations like BOMA and other Commercial Real Estate Development Associations who continuously work with various communities, with businesses and the government in city building.

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Some of the highlights of the report include how the CME: • Contributes $6.2 billion annually towards Edmonton’s GDP, and contributed $2.4 billion in 2014 alone • Pays $1.8 billion in wages and salaries and employs over 24,000 workers, directly and indirectly

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• Generates $750 million in corporate profits “Most people don’t realize the depth and breadth of the commercial real estate sector, that was part of the reason to undertake this analysis,” says David Dale Johnson, Executive Professor for the University of Alberta’s Stan Melton Real Estate department in the Alberta School of Business. “Property managers, real estate professionals involved in leasing and investment sales, commercial developers, interior designers, architects, engineers, planning professionals - it all adds up.” Dale Johnson adds the report will provide credibility to industry organizations like BOMA and other Commercial Real Estate Development Associations who continuously work with various communities, with businesses and the government in city building. The complete report is available on the BOMA Edmonton website at www. bomaedmonton.com.

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BOMA Edmonton is a not for profit industry association established in 1969. BOMA Edmonton represents over 80% of all commercial, industrial and retail real estate companies in Edmonton Metro and beyond. BOMA’s membership includes all leading building owners, property and facility managers, developers, corporate facility managers, leasing professionals, as well as service providers that cater to the commercial real estate industry. BOMA Edmonton’s scope includes all of Alberta North of Red Deer as well as the Yukon and Northern Territories. BOMA Edmonton’s mission is to develop, promote and advance best management practices in the real estate industry through advocacy, education and networking.

www.bomaedmonton.org | BOMA Edmonton Newsletter | June 2016

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Join us in celebrating Edmonton’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 Edmonton a great city to live and work in. Business in Edmonton will celebrate the 2016 winners at our 4th Annual Awards Gala, and our July issue will feature the Leaders and their companies.

Wednesday, June 22nd | 6pm | The Sutton Place Hotel

Contact us for tickets

Nancy Bielecki | 780.638.1777 x 230 | nancy@businessinedmonton.com To stay informed on details for our event, visit www.businessinedmonton.com/leaders

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Gerald Lutz (general manager and at Canessco 41 years), Mark Fairbridg (owner), Michele Gagnier (owner), Nathan Gagnier (operations manager) and Lorelei Christensen (accounts receivable).

Canessco Services Inc.: The W Original Trouble Shootin’ Guys

By Nerissa McNaughton

ho are you really going to call when there’s trouble down below? The company that is celebrating nearly 65 years of service.

“When you go to someone’s house or a business and they are having a sewer backup, they are always happy to see you because we are there to get them out of trouble. They are excited to see us and even happier to see us leave!” laughs Nathan Gagnier, whose sense of humor is just one of the reasons he excels as the operations manager and safety coordinator of Canessco Services Inc. He’s got plenty of reasons to smile. The family owned and operated company is edging up on their 65th anniversary.

Canessco launched in 1952. Gagnier’s grandfather bought the company in 1974, when the technology for sewer line inspections and grease trap cleaning was a little more, shall we say, hands on. Today, both Gagnier and the company president, Mark Fairbridge, are happy to use upgraded technology that has them keeping Edmonton’s plumbing systems clean and free flowing.

Canessco Services Inc. | 65 Years | 1

“Our job, while not a pretty one, is integral to the upkeep of the City of Edmonton, its businesses, and homeowners,” smiles Fairbridge. He’s been with Canessco for over 40 years, working part time in 1974 and transitioning to full time after graduation. He muses over the things that have changed – and the things that never will. “Technology and equipment are the biggest changes over the years, but we have a person here, Gerald, that my dad hired in 1974 when he took over the company. Gerald is still here! Another employee has been here for 20 years. That speaks volumes to what kind of operation we run.”

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Canessco’s Trouble Shootin’ Fleet You’ve read about the company’s history and the outstanding commitment to customer service, now learn why Canessco is so efficient. Spoiler alert! It’s because they have of all the equipment necessary to do a first-rate job, and they keep their trucks in peak condition so they are always ready for your call. In addition to rigid portable drain cleaning and jetting equipment, CCTV inspection/locating equipment and a CCTV mainline camera, Canessco’s truck fleet includes: • Vac-On Sewer/Cleaner Hydrovac trucks: 2016 Freightliner 2012 International 2008 Sterling

Canessco Services is the company that gets called when underground plumbing needs servicing. The company provides high pressure water sewer flushing and cleaning, hydro excavation, liquid waste pumping and disposal, catch basin cleaning and thawing, small sewer line cleaning (for pipes 1.5” to 4”), and grease trap cleaning for industry, restaurants and homeowners. They are also excited about their newest service: sewer line CCTV inspection. Now, this is significant. Why? Because why have two companies on site, one to view the line and one to flush it, when you can have one reliable company take care of both? It is this kind of forward-focused, customer-based thinking that has kept Canessco busy for six decades – even when the economy is less than kind.

2006 Sterling

“With the oil patch going down, there is a lot more equipment coming into the city, admits Gagnier. “We aim to stay on top and keep customers happy despite all these other competitors.”

• CT 407 Vacuum Trucks:

“There is so much competition right now,” agrees Fairbridge. “This year in general, for everyone in business, it’s going to be a challenge.”

2015 Freightliner Tri-Drive 2006 Kenworth 2007 Western Star

• Mini Vacuum Truck: 2000 Ford F450 • CCTV Sewer Inspection Van Learn more about what this equipment can do for you by visiting www.canessco.com/equipment.html.

CONGRATULATIONS CANESSCO ON 65 YEARS! Canessco Services Inc. | 65 Years | 2

Just what kind of operation are they running, exactly? One that is absolutely vital, but one that few people could brave. Thankfully, the crew of Canessco are very, very brave.

Hey, these guys are in the sewer business so they have seen worse things than an economic challenge. In fact, seeing absolutely everything that the job has to offer was priority one for both team leaders. “I don’t ask the crew to do anything I wouldn’t do myself,” Gagnier says with pride. “I started at the bottom and I’ve done it all, so I try to inspire. My team knows I’ve done it or I will do it with them.” Fairbridge feels the same way. From the office to behind the wheel of one of their trucks, he and the management team ensure they remain responsive and agile to the needs of their employees and clients.

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It’s a strategy that works. The Canessco reputation sees this Edmonton-based company doing work in Sherwood Park, St. Albert, Spruce Grove, Stony Plain, Leduc – even as far away as Cold Lake, Exshaw and Calgary.

Gagnier also offers a tip that saves their clients time, money and stress. “Quality control is a big thing with underground sewer lines. Once they are put in the ground or cleaned, unless you camera them you don’t know what shape they are in.

Recently, Canessco flushed seven conduit lines for the E.L. Smith Water Treatment plant. Those lines happened to be under the North Saskatchewan River and required them to work in holes up to 220 feet deep. They aren’t kidding when they say their experience and expertise sets them apart.

The same goes for new construction and older buildings. Do preventative maintenance with CCTV. When you can see the issues and know what’s going on, you can nip a problem in the bud before it happens.”

“We have over 100 years of combined experience among us,” Gagnier points out, but it’s more than experience that has everyone from the City of Edmonton to restaurants and homeowners keeping their number on speed dial. “We strive to provide quality service to our customers,” he continues. “We want our employees to look pleasing to the customers. We are also safety conscious. Safety is a big part. We have a tight knit crew and a positive corporate culture.”

CCTV is the difference between realizing your line needs flushing, or having it trenched up and completely replaced because an easily-solved problem was left for too long. The company is as focused on the community as they are on their clients. Canessco Services supports the Christmas Bureau of Edmonton, Santa’s Anonymous, Boys & Girls Club Big Brothers Big Sisters, the Edmonton Eskimo Alumni Association, JCI Edmonton – Holiday Hamper, McMan Youth, Salvation Army among others.

We Pride Ourselves on Our Personalized Service Environmentally Friendly • Family Owned and Operated for 36+ years! • Fully Insured • Bonded

Congratulations Canessco!

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Congratulations Canessco! We are honored to have assisted you in reaching this milestone. 1004 Bell Tower, 10104 - 103rd Ave. Telephone: 780 428 1731 • Fax: 780 420 6290 • www.oshryco.com

Canessco Services Inc. | 65 Years | 3

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“We don’t force the guys to bring presents for Santa’s Anonymous, but they just do!” smiles Gagnier. “It’s good to see and nice to help out.” There’s a solid plan going forward. Gagnier explains, “We are going to just keep on going. I don’t think we want to get too much bigger. We want to be sustainable and remain family run and owned.” It’s a strategy that has worked for over 60 years and one that a continued A+ rating with the Better Business Bureau can attest to. Canessco Services tips their hat to Peter Fairbridge, the man that started it all. “If he didn’t buy it, none of us would be here!” And many lines under our city would also be a lot worse for the wear.

7710-67 St. NW Edmonton, AB T6B 2K4 Main: 780-465-9615 Administration: 780-466-2454 Fax: 780-468-1802 www.canessco.com

Canessco Services Inc. | 65 Years | 4

CONGRATULATIONS!

The whole Team from Nordic is very proud to congratulate their friends over at Canessco on 65 years of excellence and innovation!

4143 – 78 Avenue • T: 780.469.7799 • F: 780.469.1568 • www.nordicsystems.ca


EVERYTHING UNDER YOUR ROOF, EVERYONE UNDER OURS. HELPING TO MAKE FIRE & WATER DAMAGE “LIKE IT NEVER EVEN HAPPENED.”

Under the roof of a home or business, damage can happen. And when it does, turn to the HERE TO HELP® CONNECTION

team that’s here in your community. And here to help. The network of cleanup specialists at 1-800-SERVPRO. Helping to make fire and water damage “Like it never even happened.”

®

Official Cleanup and Restoration Company of the PGA TOUR


Who knows it’s about time? We do.

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