Business in Edmonton - November 2018

NOVEMBER 2018 | $3.50 BUSINESSINEDMONTON.COM

GETTING TO KNOW EDMONTON GLOBAL PM42455512

IT’S THE “NEW KID ON THE BLOCK” FOR REGIONAL DEVELOPMENT, BUT UNDER MALCOLM BRUCE’S LEADERSHIP, EDMONTON GLOBAL IS READY TO DRAMATICALLY TRANSFORM THE BUSINESS LANDSCAPE.

MAKING THINGS WORK

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Supporting the visions of entrepreneurs one story at a time.

Volume 6 | Number 11

REGULAR COLUMNS

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Action vs Blame: The Ongoing Trans Mountain Pipeline Debate

By Terry O’Flynn

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CONTENTS

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Occupational Health and Safety Rules Pose a Hazard to Small Businesses

By Amber Ruddy

n USMCA, 10 out of O 11 Ain’t Bad

By David MacLean

dmonton Chamber E of Commerce

COVER FEATURE

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etting to Know Edmonton G Global It’s the “new kid on the block” for regional development, but under Malcolm Bruce’s leadership, Edmonton Global is ready to dramatically transform the business landscape

By Nerissa McNaughton

ON OUR COVER: ABOVE: EDMONTON GLOBAL, CEO MALCOLM BRUCE. PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

FIND US ONLINE! B US I N E SS I N E DMONTON.COM BUSINESS IN EDMONTON

@BUSINEDMONTON

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

CORRECTION NOTICE: Business in Edmonton magazine wishes to correct the following. In the October 2018 issue, in the article Why Tech Startups are Choosing Edmonton, Gregory Burlet and Dr. Jake Burlet’s photos are transposed. Business in Edmonton regrets the error and the inconvenience it caused.

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time.

Volume 6 | Number 11

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THIS MONTH’S FEATURES

CONTENTS

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Almac Metal Industries Ltd. Celebrates 50 Years

Preferred Client Services Celebrates 20 Years

D urabuilt Windows and Doors Celebrates 30 Years

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

Can Corporate Culture and Personal Style Coexist?

Edmonton’s Health City: Diversifying the Economy, Improving Healthcare A local initiative wants to marry the city’s healthcare with its emerging technologies sector. The goal: improving lives and making Edmonton an international healthcare powerhouse

By Zachary Edwards

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Key Person Insurance: What it is and why you need it

By Jamelie Bachaalani

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Edmonton’s Industrial Future: The Future Success of the EETP The Edmonton Energy and Technology Park represents a changing commitment to industry and growth, and charts how the city has adapted to new economic realities

By Zachary Edwards

R ago Millwork

Celebrates 55 Years

By Ben Freeland

By Laura Bohnert

COMPANY PROFILES

66 68 71 75

Making Things Work

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The Way to Succeed Succession planning is a must for business owners in times of economic uncertainty and demographic change

By Ben Freeland

Are you making the most of your day?

Focus on what matters most.

Our audit, tax and advisory professionals look to provide value-added advice for you and your business, so nothing important is missed.

Visit kpmg.ca/Edmonton or call 780-429-7300

© 2018 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

All rights reserved. 21641

PUBLISHER

Business in Edmonton Inc.

ASSOCIATE PUBLISHER

Brent Trimming brent@businessinedmonton.com

OUR VIEW, TOO.

EDITOR

Nerissa McNaughton

COPY EDITOR Nikki Gouthro

ART DIRECTOR

Jessi Evetts jessi@businessinedmonton.com

ADMINISTRATION

Nancy Bielecki info@businessinedmonton.com

REGULAR CONTRIBUTORS Amber Ruddy Terry O’Flynn David MacLean

THIS ISSUE’S CONTRIBUTORS Nerissa McNaughton Laura Bohnert Zachary Edwards Jamelie Bachaalani Ben Freeland

PHOTOGRAPHY

Cover photo by Epic Photography Inc.

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

ACTION VS BLAME: THE ONGOING TRANS MOUNTAIN PIPELINE DEBATE // TERRY O’FLYNN

Action vs Blame: The Ongoing Trans Mountain Pipeline Debate

BY TERRY O’FLYNN, CHAIRMAN, ALBERTA ENTERPRISE GROUP

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n August 31, Kinder Morgan approved the sale of the Trans Mountain Pipeline to the Canadian Federal Government for $4.5 billion. Just the day previous, the Federal Court of Appeal unanimously decided to freeze the project “due to shortcomings in the National Energy Board’s review and the government’s lack of meaningful consultation with First Nations.”

To sum up: the Canadian Government spent $4.5 billion on a pipeline that was under legal scrutiny and then decided to purchase it even after more roadblocks were put in place because of their own actions. Whether you are in favour of the pipeline or not, that price tag is astronomical for any project that could potentially never move forward.

Now the Federal Government owns the pipeline and, instead of plotting a concrete way forward, they are pointing fingers.

They aren’t the only government in Canada to do so. Rachel Notley pulled out of the federal climate plan, calling on Trudeau’s government to “fix” the Trans Mountain Pipeline “crisis.” Federal Finance Minister Bill Morneau pointed to the past, saying he inherited a flawed review process for industrial projects from the Harper Government.

It is fair to assume that a representational democracy like ours almost necessitates inefficiencies. Differing provinces, Indigenous nations and the general populace can all have their say, and rightfully so, but we also need decisive action and decisive leadership. Being a good leader means making the right decision knowing you cannot please everyone.

Being a member of a democracy means accepting that you don’t always get your way. That is not what we as Canadians and Albertans are getting. Instead, we are getting power plays and passing the buck, leading to more uncertainty for the pipeline, the economy and our future.

BUT WE CAN’T BLAME KINDER MORGAN. THEY ARE IN THE PIPELINE BUSINESS. WHAT WE NEED IS A GOVERNMENT THAT IS WILING TO PICK A PLATFORM AND STICK TO IT – TO FOCUS ON THE ISSUES AND PUSH FORWARD WHILE ACCEPTING CONSTRUCTIVE FEEDBACK. Taking on the bureaucracy of the pipeline was, of course, part of the deal. The government recognized that there were more hoops to jump through in the future and decided it was no longer the burden of a private company. Now, we as Canadians have paid Kinder Morgan $4.5 billion of our money, and many of us are left wondering if the purchase will be worth it.

But we can’t blame Kinder Morgan. They are in the pipeline business. What we need is a government that is wiling to pick a platform and stick to it – to focus on the issues and push forward while accepting constructive feedback. What we don’t need are politicians fretting about what makes them popular in the polls, or how quickly they can deflect blame.

The ongoing saga of the Trans Mountain Pipeline is a lesson in navigating our many competing interests and parties. It’s also a lesson in blatant attempts to garner popularity first and action second. The real victims are the taxpayers, who are looking at the bill and wondering how they will get a decent return on investment.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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OCCUPATIONAL HEALTH AND SAFETY RULES POSE A HAZARD TO SMALL BUSINESSES // AMBER RUDDY

Occupational Health and Safety Rules Pose a Hazard to Small Businesses

BY AMBER RUDDY

D

id you know that although new Occupational Health and Safety (OHS) rules have been in effect since June 1, 2018, the Alberta government still hasn’t released sufficient details for businesses to be in compliance?

The new onerous policies require mandatory health and safety training for employees. However, the province has yet to release a full list of accredited training providers. Business owners may even face penalties for not following the letter of the law.

According to a spring survey conducted by the Canadian Federation of Independent Business (CFIB), only 12 per cent of Alberta business owners indicated they received adequate information about how changes to health and safety regulations affect their business. In addition, three-quarters (77 per cent) noted they are worried they may be unfairly penalized by health and safety authorities.

The government is moving so fast on their complete legislative overhaul in the labour department, they don’t even have time to get the required details together five months after these rules became mandatory.

The question remains: will the Alberta government commit to focusing on education to help businesses comply before resorting to punitive ticketing? Officers investigating contraventions of the OHS Act have a wide variety of fines and administrative penalties at their disposal.

The new policies require the appointment of a health and safety representative in businesses with five to 19 employees. That representative is required to take additional employee training on workplace safety for a minimum of 16 hours (or two shifts worth, whichever is greater) per year.

Businesses employing 20 or more people must establish a joint worksite health and safety committee. This committee must have at least four members, half of which must represent workers and must meet at least quarterly. The joint worksite health and safety committee either has to meet during regular work hours or be paid for additional time spent on their duties in this role.

In Alberta, 94 per cent of entrepreneurs surveyed believe employment laws should be more flexible for small employers to better support small businesses. Small business owners are well placed to understand the unique needs in their workplace and act accordingly.

When new policies are introduced, we need to ensure entrepreneurs are better accounted for. That is why CFIB is asking the government to implement a small business lens to mitigate the impact on business owners. The lens would require thorough consultation with small business owners, followed by transparent economic analysis of how the policy will impact local business.

The government would also be required to consider implementing measures to help protect small businesses if they may face hardship.

If something is made mandatory, the supporting details must be available – or else it’s just another regulatory obstacle to overcome. It’s time the Alberta government considered the health of the business community in their policy pronouncements.

AMBER RUDDY IS THE DIRECTOR OF PROVINCIAL AFFAIRS FOR THE CANADIAN FEDERATION OF INDEPENDENT BUSINESS. SHE CAN BE REACHED AT AMBER.RUDDY@CFIB.CA. FOLLOW HER ON TWITTER @ARUDDY.

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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ON USMCA, 10 OUT OF 11 AIN’T BAD // DAVID MACLEAN

On USMCA, 10 out of 11 Ain’t Bad

BY DAVID MACLEAN

M

ost manufacturers across Canada breathed a collective sigh of relief when Canadian negotiators announced, at long last, an agreement on NAFTA – now known as the United States Mexica Canada Agreement (USMCA).

Most because, as of writing this piece, there is one glaring omission from the deal that impacts many Alberta manufacturers. Steel and aluminum tariffs – those imposed by the Trump administration (absurdly under the auspices of “national security”) and the retaliatory tariffs enacted by the Trudeau government remain in place. The feds assure us they are working on a resolution, but until we get some good news this remains our number one challenge related to the deal.

Beyond the steel and aluminum issue, however, there’s much to be happy about. In all, 10 of 11 Canadian Manufacturers & Exporters (CME) recommendations for USMCA were at least partially adopted.

Top trade irritants for manufacturers have long included red tape and delays at customs. The USMCA commits the three countries to updating customs procedures, reducing administrative burdens, increasing security and speeding up border crossing times. Canada also agreed to increase the dollar amount Canadians can purchase goods online duty free from $20 to $150.

Chapter 19, the critically important dispute resolution process that the Americans have always disliked, remains in place. In keeping Chapter 19, Canadian business dodged a bullet. On government procurement, the new agreement adopts the World Trade Organization’s government framework. This won’t eliminate “buy American” provisions, but it ensures much better access than was being proposed by the U.S. during the negotiations.

The deal also commits the three countries to developing a common approach to addressing unfair trade practices from outside the region – an approach that seeks to address industry concerns around currency manipulation, illegal substitution and dumping. The deal calls for an effort to identify and eliminate non-tariff trade barriers and develop a “unified” approach to raising regulatory, environmental and labour standards outside the USMCA to North American levels.

A modern digital trade chapter within the USMCA will be created to support growth in the digital economy and manufacturing.

All in, the USMCA is a solid agreement that hopefully ends a nightmarish year and a half of uncertainty. Against a formidable and cantankerous opponent in President Trump, the federal government negotiated hard and successfully defended critical pieces that manufacturers rely on. The deal isn’t perfect, but it was never going to be. The primary objective throughout this process was keeping what we had – access to U.S. and Mexican markets.

Now we must work on getting rid of those steel and aluminum tariffs that are so damaging to so many businesses on both sides of the border.

It was an ugly process but in the end the system worked – we worked together and achieved a deal that will generate growth in the manufacturing sector and avoided harm to supply chains.

CANADIAN MANUFACTURERS & EXPORTERS (CME) IS THE VOICE OF CANADIAN MANUFACTURING. CME REPRESENTS MORE THAN 2,500 COMPANIES WHO ACCOUNT FOR AN ESTIMATED 82 PER CENT OF MANUFACTURING OUTPUT AND 90 PER CENT OF CANADA’S EXPORTS.

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

OFF

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Stantec Tower has Officially Opened Stantec Tower, the tallest building west of Toronto and a landmark in ICE District, officially opened this fall. In addition to becoming Stantec’s new head office and housing its 1,500 Edmonton-based employees, the Tower is also home to Dentons Canada LLP, DLA Piper, and PwC Canada.

On top of the 29 floors of commercial workspace sits SKY Residences, which are 483 luxury condos and more than 20,000 square feet of amenities.

“It is exciting to see one of ICE District’s most iconic landmarks officially open,” said Glen Scott, president of Katz Group Real Estate. “We are proud to welcome Stantec employees to their official new home in the heart of downtown Edmonton and continue to showcase how ICE District is shaping the future of our city.”

“Having a large company like Stantec choose the downtown core as its head office speaks to the vibrancy of our growing ICE District,” said Edmonton Mayor Don Iveson. “We look forward to welcoming Stantec’s employees to this new building that will no doubt contribute to furthering their innovation and success.”

In keeping with today’s diverse workforce, Stantec Tower has introduced a number of progressive features, including a multi-faith prayer room, lactation room and genderneutral washrooms. Staff are treated to sweeping views of ICE District and Roger’s Place, and minimalism in the office space design encourages collaboration and interaction.

“Stantec employees are extremely proud of our new headquarters, a project that positively reflects the talent, innovation, and creativity of our team members,” said Gord Johnston, Stantec’s president and chief executive officer. “We can already feel the impact that ICE District has on our city, and we’re excited to be part of the transformational revitalization in downtown Edmonton.

Stantec was founded as a one-person operation in Edmonton in 1954. Now, as a top 10 global design firm,

we are excited to confirm our commitment to the city where our company began.”

Employees of Stantec began moving into the Tower in October and the finishing touches on the building will continue until fall of 2019. When complete, Stantec Tower will reach 251 metres. The Tower complements ICE District’s ongoing evolution, which also includes the recently completed Edmonton Tower and JW Marriott Edmonton ICE District, a luxury hotel with an anticipated spring 2019 opening.

Stantec prides itself on designing with communities in mind, calling itself, “Designers, engineers, scientists and project managers, innovating together at the intersection of community, creativity and client relationships. Balancing these priorities results in projects that advance the quality of life in communities across the globe.”

Stantec launched in Edmonton in 1954 by Dr. Don Stanley, a Harvard environmental engineering graduate. As with most new grads, he had to work hard to find work in his field. It took 600 letters and 27,000 kilometres of driving across Western Canada, but his search finally took him to Edmonton, where he planted his roots and launched his company. Today, Stantec’s influence spans 17 market sectors around the world.

Learn more about Stantec at www.stantec.com and about ICE District at www.icedistrict.com.

PHOTO SOURCE: CC BY-SA 4.0/JARODSC18

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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Palace Casino Transforms into Starlight Casino Palace Casino, a long-term feature in West Edmonton Mall, has rebranded and opened as Starlight Casino.

“Today marks the start of the next chapter at the iconic West Edmonton Mall,” said Tony Santo, CEO of Gateway Casinos during the grand opening. “For many decades, Canadians have flocked here to experience this one-of-akind shopping and entertainment experience. We believe Starlight Casino Edmonton is the perfect compliment to this Canadian landmark.”

The grand opening festivities doubled as a fundraiser for The Stollery Children’s Hospital Foundation by donating a portion of food and beverage sales from September 26 to October 31. Guests of the grand opening had the chance to win over $20,000 in cash and prizes, while enjoying live entertainment and an Elvis impersonator.

Starlight now features 120,000 square feet of gaming and entertaining space, including Halley’s Club, a nostalgic dining and theatrical experience with cabaret and vintage acts. MATCH Eatery & Public House, ATLAS Steak + Fish, The Buffet and CHOW Lucky Noodle Bar are also part of Starlight’s reinvention. Additionally, Starlight is proud to debut its REPLAY arena, which includes an interactive space for connected table game play, live action digital horse racing, a unique social roulette table, a DJ booth, custom lighting equipment and an expansive video wall.

“The opening of Starlight Casino adds to the many world class entertainment options available to Albertans and our visitors. With more than 300 new jobs – and $57 million dollars of investment – it is another sign of investor confidence in our growing economy,” said Minister of Economic Development and Trade Deron Bilous.

Starlight is not the only Gateway facility in Edmonton.

Alongside the Grand Villa Casino in ICE District, Gateway has invested $90 million in Edmonton and

has created more than 550 new jobs between the two entertainment centres.

Niaz Nejad, VP and COO, Alberta Gaming, Liquor and Cannabis (AGLC) noted, “On behalf of AGLC, I would like to congratulate Starlight Casino on their grand opening. We are delighted to be a part of the launch of the innovative REPLAY gaming area – the first of its kind in Alberta. While the AGLC is committed to the responsible growth of Alberta’s gaming industry, we are also invested in developing modernized gaming options for Albertans.” AGLC reminds patrons to use gambling as a form of entertainment, and not as a way to make money.

It may be the end of an era for Palace Casino, which reigned in Edmonton from 1990 to 2018, but after nearly 30 years, the transformed space is ready to entertain a new generation of thrill seekers with offerings that go far beyond gaming. To check out the new Starlight Casino, visit West Edmonton Mall.

The gaming centre is located through Entrance #9. You can also visit the casino online at www.edmonton.starlightcasino. ca, or on social media on Facebook (www.facebook.com/ StarlightCasinoYEG) and Instagarm (@starlightyeg).

ABOVE: HALLEY’S CLUB PHOTO SOURCE: GATEWAY CASINOS

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

MAKING THINGS WORK // MANUFACTURING

MAKING THINGS WORK DESPITE A SLUGGISH ECONOMY AND THE NEGATIVE EFFECTS OF U.S. TRADE TARIFFS, ALBERTA’S INDEFATIGABLE MANUFACTURERS CONTINUE THEIR ASCENT.

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

BY BEN FREELAND

I

n July 2018, at the height of the Canada’s summer trade war with the United States over steel and aluminum tariffs, Statistics Canada quietly announced that Alberta’s manufacturing sector had seen a third consecutive month of increased sales, as well as a growth of 13.7 per cent from 2017. The report noted that increases in sales of chemical products and the electrical equipment, appliance and component industries were chiefly responsible for the growth, which in July was outpacing total Canadian export sales growth by nearly double.

MAKING THINGS WORK // MANUFACTURING

SUCH NUMBERS ARE NOT WHAT ONE WOULD EXPECT OF A PROVINCE STILL EMERGING FROM A RECESSION WHILE SMARTING FROM THE IMPACT OF PUNITIVE TRADE TARIFFS IMPOSED BY ITS PRIMARY INTERNATIONAL TRADE PARTNER. Such numbers are not what one would expect of a province still emerging from a recession while smarting from the impact of punitive trade tariffs imposed by its primary international trade partner.

“We’ve seen steady improvement in our manufacturing sector over the past three years,” says David MacLean, divisional

vice president for Alberta at Canadian Manufacturers & Exporters (CME), Canada’s preeminent manufacturing advocacy organization, speaking in September 2018 prior to the announcement of the US-Mexico-Canada Agreement (USMCA) on September 30, 2018.

“The impact of the Trump tariffs has certainly been painful in certain pockets, but across the board it hasn’t been a huge hit. Overall we’re still seeing a significant bounce back in our manufacturing sector, with things getting back to normal.

We’ve still got a way to go, but we’re gaining a lot of ground.”

While the primacy of Alberta as an oil-exporting province has long been such that the province’s manufacturers have seldom received their due credit, Alberta is increasingly a province driven by manufacturing. Alberta is now the third largest manufacturing province after Ontario and Quebec, and as of 2017, Alberta accounted for 11 per cent of the

MAKING THINGS WORK // MANUFACTURING

country’s total manufacturing sales, while contributing 6.3 per cent of the province’s GDP.

some 10 per cent of Alberta’s manufacturing exports, with Japan ranking third at 3.7 per cent.

The sector employs roughly 130,000 Albertans at an employment rate that grew by 3 per cent between 2016 and 2017 – in contrast to the province as a whole, which saw an uptick in unemployment from a recent low of 6.7 per cent in May 2018 to 7 percent in September.

However, none of this is to say that things are easy for the sector at this challenging economic juncture. While Alberta’s manufacturing sector is increasingly diverse, an outsize portion of it is still closely tied to oil and gas, both on the petrochemical side and the heavy industrial equipment side, and these industries are still facing significant challenges stemming from the mid-2014 oil crash. Many of these same operators have also had to contend with massive increases in steel costs stemming from the mid-2018 trade tariffs, which led to crippling increases in the cost of capital projects.

Meanwhile, manufactured goods represent an increasingly large proportion of Alberta’s total exports. As of 2017, manufactured goods represented 27.4 per cent of Alberta’s exports (a 16.5 per cent increase over the previous year) representing a total value of $27.6 billion. While the United States continues to reign supreme as trading partner at 70 per cent of manufacturing exports, China now purchases

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

For the little guys in the industry, the impact has been enormous.

EDMONTON’S TRUSTED MANUFACTURER OF HEAVY EQUIPMENT ATTACHMENTS - Since 1945 -

Manufacturing – Insight into Leading an Industry Headquartered in Edmonton, Alberta, Weldco-Beales Manufacturing (WBM) is one of North America’s largest and most respected manufacturers of attachments for heavy equipment. With a combined 300,000 sq. ft. of manufacturing space across Canada, the company shares insight into how they earned their prominent position.

Since 1945, Weldco has continuously grown and adapted to its environments with the intention of providing first-class attachment expertise to the construction, forestry, mining, road maintenance, and resource industries. With customers at the front of mind, the company converts its substantial wealth of knowledge, experience, skills, and technologies into value built for its customers. The impressive reputation of WBM attachments is ultimately owing to the amazing team behind the products.

Working with a dedicated dealer network, Account Managers strive to fully understand their customer

www.weldco-beales.com weldco.applytojob.com

needs, job requirements, and machine capabilities in order to optimize productivity with a manufactured solution that exceeds expectations. Knowledgeable, in-house engineers utilize the latest technologies to provide the most suitable and evolutionary designs.

On the plant floor, quality of workmanship is achieved by the skilled workforce of Journeymen and Apprentices, using the most contemporary fabrication and machining equipment. Leading the company to the front of all industry and technological trends is the management team.

A supportive work environment emphasizes safe work practices, encourages ongoing training and education, embraces new challenges, and promotes interaction and empowerment. Weldco is committed to supporting its communities through a wide variety of charitable campaigns throughout the year, while encouraging employee volunteer engagement. The belief is that business success is the reward when its people and their communities are looked after.

MAKING THINGS WORK // MANUFACTURING

“THERE’S CERTAINLY NO QUESTION OF ‘REPLACING’ THE US AS A TRADE PARTNER OWING TO ITS SIZE AND PROXIMITY, BUT THERE’S A GROWING APPETITE IN THIS PROVINCE FOR NEW MARKETS.” ~ DAVID MACLEAN

“This is the worst I’ve seen in decades,” says Frank Herbert, founder and owner of Devcan Machine, a small familyrun company in Leduc that produces drilling and other components for oil and gas operators.

“I’ve been in the business since 1981, starting operations in the middle of what was the worst recession in memory at the time; and this is, without question, the worst I’ve seen.”

As with many operators in the Leduc-Nisku industrial park, with its strong ties to the energy sector, the U.S. trade tariffs saddled Herbert’s company with unwelcome additional strain on what was already a shaky situation by inflating the cost of much of his raw materials.

“We need our leaders to come to a resolution on this trade impasse,” says Herbert, speaking ahead of the USMCA announcement, which brought an end to many (but not all) of the tariffs. “Otherwise many of us aren’t going to survive this.”

MacLean acknowledges that there are indeed pockets of “real pain,” but also asserts that these are relatively isolated cases, at least thus far, and that the province’s agrifood sector continues to boom and new players in

21st century sectors like artificial intelligence and the Internet-of-Things are now making their presence felt.

He further adds that improvements in the overall health of Alberta’s manufacturing sector have been such that even those industries dealing in oil and gas equipment are seeing improvements, even as the province’s own energy sector is still lagging, as a result of an increasingly global export picture.

“There’s been a growing interest in markets other than the United States since well before the election of Trump and the imposition of tariffs, and recent events have led to increased focus of this kind,” MacLean says. “There’s certainly no question of ‘replacing’ the U.S. as a trade partner owing to its size and proximity, but there’s a growing appetite in this province for new markets. If you’re a manufacturer and you can hire yourself an export market consultant, you can do extremely well for yourself.”

Even on the U.S.-Canada trade front, MacLean remains positive.

“When the reality sunk in that (Trump) had won the election, we knew we were in for some challenging times,

ABOVE: DAVID MACLEAN, DIVISIONAL VICE PRESIDENT FOR ALBERTA AT CANADIAN MANUFACTURERS & EXPORTERS (CME).

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NOVEMBER 2018 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

MAKING THINGS WORK // MANUFACTURING

MACLEAN REMAINS CONFIDENT IN THE FEDERAL GOVERNMENT’S but we also had hope because we had been telling both the Trudeau and Harper governments that NAFTA needed to be modernized. As such, we do hope that something better and improved will come out of all this. We need a trilateral NAFTA deal right now, or we’re going to be dealing with steel and aluminum tariffs for a long time to come. Suffice it to say, manufacturers are people who aren’t afraid of tough negotiations.”

As of early October 2018, Trump’s tariffs on Canadian steel and aluminum remain despite the USMCA announcement.

Canada is currently disputing the tariffs before the World Trade Organization, while Canadian Foreign Minister Chrystia Freeland and her U.S. counterpart Robert Lighthizer have stated that they will continue to deal with the issue in a separate track of negotiations.

MacLean remains confident in the federal government’s

CAPACITY TO REACH A SETTLEMENT BENEFICIAL TO ALBERTA’S MANUFACTURERS, AND OF THE SECTOR’S CAPACITY TO PREVAIL. capacity to reach a settlement beneficial to Alberta’s manufacturers, and of the sector’s capacity to prevail.

“On the political side, we simply need cool heads to prevail at the negotiating table. As for our manufacturing sector, the ramifications have been real, but the bigger picture is three years of continuous growth, and I don’t see that slowing down. We increasingly have a critical mass of manufacturing and exporting expertise in this province, which stemmed from oil and gas and is now spilling into other sectors. As such, I truly believe our future looks bright.”

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CAN ELECTIONS MAKE YOUR WORKPLACE TOXIC? // CPHR

CAN ELECTIONS MAKE YOUR WORKPLACE TOXIC?

BY DAN BOUCHER

I

s Alberta becoming more politically polarized? Has divisiveness crept into your workplace? With provincial and federal elections on the horizon, and with the tone of discussions corroding, the risk of politics disrupting your organization is growing.

takeaway is that when describing these conversations, words such as respectful, analytical and civil far outweigh words such as confrontational, angry or toxic. Finally, our third takeaway provides some common ground in that over half of these conversations were described as wanting change.

For many in Alberta, politics is never far from business.

A year of NAFTA negotiations, Trans Mountain pipeline wrangling and Brexit are just three examples of highlypoliticized topics that could have broad-ranging impact on many Alberta companies. But while these topics have each become political footballs, and have likely started lunchroom debates, none is more personal to your employees than who they are supporting and voting for in an election.

What are the risks to your organization?

There is a delicate balance between allowing open debate and creating opportunities for conflict. Yosie Saint-Cyr, writing in Slaw, outlined both human rights concerns around how organizations treat these conversations. She cites a 2016 study by CareerBuilder that found a majority of American employees believed their workplace had become too politically correct. However, a similar study by BetterWorks and Wakefield Research found that 49 per cent of employees had witnessed political conversations turn into an argument.

Political beliefs are not specifically defined as a protected ground from discrimination in Alberta, though several provinces have included protection from discrimination against political beliefs in their human rights legislation. Canada’s Charter of Rights and Freedoms has been suggested as a defence against political discrimination, but it’s unclear how Alberta courts would rule, given the lack of a clear definition of what political beliefs entails.

There’s no escaping that politics is a part of Alberta’s workplaces We asked Alberta’s HR community about political conversations in the workplace in our recent HR Trends survey.

Overall, they told us politics is a topic of conversation in four out of five workplaces; they’re slightly more common in large organizations than in small organizations. It shouldn’t be a surprise that these conversations are most common in the public administration sector, either.

Our HR Trends report also provided three important takeaways. First, the tone of these conversations is far more negative than positive (although four out of 10 respondents described them as neutral). The negative description isn’t necessarily scary, though. This is because our second

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She points out that with so many hot-button issues wrapped up in political discussions (abortion, immigration, LGBTQ rights, etc.), there is obvious potential for spillover comments about protected grounds. These comments can trigger complaints and claims of workplace discrimination and harassment.

There are risks to your employees’ productivity and engagement as well. Ongoing conflict in the workplace has a demonstrated effect of lowering employee engagement. Our recent HR Trends report indicated that up to 11 per cent of Alberta employees are actively disengaged at work. This means that not only are they unhappy in their roles, but they actually undermine what their engaged co-workers accomplish.

If you don’t have a policy that addresses politics in the workplace, you’re not alone Workplace policies can help organizations articulate what office norms are appropriate for your organization. Our HR Trends report revealed that only six per cent of Alberta workplaces have a policy in place around political discussions, though this is expected to increase to just over one in 10 within the next year.

CAN ELECTIONS MAKE YOUR WORKPLACE TOXIC? // CPHR

How can you prepare for these potential conflicts now?

The upcoming federal and provincial elections mean that if you don’t think these conversations are taking place now, then they’re likely to start soon. Taking a few simple steps now will ensure disruptions in your workplace are minimized.

1. How exposed is your organization?

Are your operations dependent on government contracts or funds? Would a different government restrict or loosen regulations tied to your business? Does your executive team have a high public profile? The more exposed your organization is to government, the more you can expect these conversations to come up.

2. What is your office culture?

Every team has norms. There’s a good chance your employees already have an idea of the boundaries of what’s acceptable for office small talk. Ask your employees what they feel is acceptable for discussion around politics, and take a look at how your team talks to each other.

3. Would a workplace policy be useful?

Though only a small minority of workplaces have policies around political conversations, they offer a concrete set of guidelines that can help in some cases. Policies can include

expectations around off-limit topics, how to respond to uncomfortable discussions, and procedures to report inappropriate political discussions. Read up on your existing policies around workplace sensitivity, harassment and behaviour. You may not need a policy that specifies political conversations, but one that reinforces the desired professional tone.

4. Make sure your team is on the same page.

The dates are set – we know there are elections coming, and these conversations will come as well. Once you’ve examined your organization, spoken with your team and reviewed your existing policies, your final step is to communicate with your team. Everyone in your organization should know what’s acceptable, and what to do when these conversations come up. If there’s a significant change from what they’re used to, make sure to allOw some time to transition to a new set of expectations.

Your employees are your most valuable asset. By engaging your workforce and establishing a safe, trustworthy environment, your company will see higher productivity and better results. Human resources professionals have the skills and expertise to facilitate these conversations, to put a plan in place and to see it through.

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What do you do when political discussions polarize your office? With major elections on the horizon, we can expect more conversations, more debates, and potential conflict.

You can prepare for these tensions now, and minimize their effect in the future. This webinar will help you to make the necessary plans to keep your team working together.

To register, go here: cphrab.ca/poisonous-politics

BUSINESSINEDMONTON.COM // // BUSINESS IN EDMONTON BUSINESSINCALGARY.COM BUSINESS IN CALGARY // // NOVEMBER NOVEMBER2018 2018

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CAN CORPORATE CULTURE AND PERSONAL STYLE COEXIST? // HUMAN RESOURCES

CAN CORPORATE CULTURE AND

Personal Style COEXIST?

BY LAURA BOHNERT

T

he strength of your company lies in your employees, and that means there is a lot of power in incorporating diversity into your hiring protocols. It’s a practice that enables you to create a workplace culture that reflects and supports your employees as well as your clients. However, true inclusivity means diversifying more than your employee base; it also means diversifying your corporate image. From hair to piercings to tattoos, does allowing for cultural diversity and individual expression challenge the professional image of a company?

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CAN CORPORATE CULTURE AND PERSONAL STYLE COEXIST? // HUMAN RESOURCES

Not necessarily. According to Jesse Cheetham, vice president, human resources at Fire & Flower, that line of thinking may just be an example of corporate owners overthinking the issue.

“Business has changed. It isn’t necessary to dress formally every day,” Cheetham explains. “Some positions require formal attire more often because they’re meeting with government officials or are at events representing the company. However, cultural and personal expression are encouraged in both formal and casual situations. You encourage cultural expression and trust your team to use good judgement to know when more formal business wear is needed.”

For that, he notes, “You need strong leaders to mentor and have conversations with their team, and to model the expectations of using good judgement.”

“Fire & Flower welcomes any and all religious or cultural attire. These do not inhibit someone from doing their work exceptionally. There’s no reason someone with sleeve tattoos or a lumberjack beard can’t represent the company professionally,” he points out. “It’s all about balance. We feel the best way to have engaged people achieving amazing results is to encourage them to bring their authentic self to work, not to fit into a certain ‘professional’ image.”

“Authentic self includes expressions of faith, culture, and diverse backgrounds,” Cheetham clarifies. “This doesn’t mean anything goes; it means trusting your team and quickly coaching if things go into a place that offends or is in question. The company still sets the rules, but it’s more about establishing the river banks and allowing the team to use their judgement.”

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CAN CORPORATE CULTURE AND PERSONAL STYLE COEXIST? // HUMAN RESOURCES

For Cheetham, that practice isn’t just about creating an inclusive workspace for the employee. It’s also important to the success of the business. “It is critical to incorporate diversity into the team and image of the workplace to attract, as we call it, ‘uniquely talented humans.’ To be successful, you need to have a wide array of ideas that don’t come about organically from a homogenous team. This manifests in an intentional culture where feedback and competing ideas are the norm. And, at the end of the day, we are a retailer: we need to reflect our customers who are kaleidoscopic and diverse in Canada.”

Kerry Kelly, senior manager, public affairs, CBC English services, agrees that the traditionally professional image isn’t always applicable. “For an organization that operates in the creative and cultural arena, the concept of professional dress is very different from the traditional idea of an office dress code. We want people to bring their individuality to the workplace.”

“CBC is committed to a workplace that is distinct, digital, and diverse,” Kelly adds. “With that in mind, we want to encourage staff to feel comfortable here, and to feel respected and valued for who they are. There may be issues of safety or functionality that need to be addressed in terms of appearance, but, by and large, how someone looks has nothing to do with how they work, or the value they bring to the workplace.”

“In the end, there are legislative documents (The Human Rights Code, The Employment Standards Act, etc.) that dictate overarching guidelines for what is and isn’t acceptable,” she notes; however, “As in most business decisions, open communication is the best way to ensure we are meeting the needs of our staff, and that includes organizational requirements related to dress code.”

Kelly also points to the relationship between truly incorporating diversity into the workplace and allowing that diversity to manifest in the professional image of the workplace. “You cannot fully do the former without the latter,” she emphasizes. “Secondly, at least at the CBC, the idea of there being a singular definition of a ‘professional image’ does not reflect the kind of work we do and the cultural institution we are. The biggest benefit of encouraging people to be themselves at work is that you have a workforce that truly reflects the audiences we serve.”

Reflecting your audience is something that has a different kind of importance for companies like Apocalypse Tattoo, where the personal image of the employee can easily become part of the sales pitch for the services of the company.

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CAN CORPORATE CULTURE AND PERSONAL STYLE COEXIST? // HUMAN RESOURCES

Stacy A.J. Knight, tattoo artist and owner of Apocalypse Tattoos Inc., observes that, “In the tattoo world itself, there aren’t very many restrictions when it comes to religious wear, hair styles, tattoos, or piercings. The dress code is pretty much, as long as you’re not breaking any laws or endangering yourself or others around you, do whatever floats your boat,” he smiles.

However, he can think of at least one exception to that rule: “As a tattoo artist for the past 26 years now, I have seen some situations where even that was tested to the extreme”—for instance, when a man whose face, neck, and arms were covered in swastikas and hate slogans applied for a job at the tattoo company Knight was working for at the time. “Needless to say, he was not hired. As a fellow Canadian, he has the right to whatever he believes in—but the company also has the right to protect its image and reputation, as well as to take into general consideration all of the surrounding patrons.”

“At Apocalypse Tattoos Inc., it is my shop policy not to tattoo anything racist or sexist or hate-related of any kind. That is not the image or reputation that I want for my business,” Knight notes. “However, short of the above extreme example of protecting your business’ image and its wide variety of customers, I find for the most part, anything does go nowadays. And as long as they are not endangering anyone around them or themselves in the work place, no harm done! The more cultural diversity and age range coverage the better when it comes to business and customer service.

“I have found that the work place in general has learned to relax quite a bit in the past 26 years—especially when it comes to tattoos, piercings (for the most part) and hair. When I started tattooing, they were still a bit taboo; you were either a criminal, a rebel, or military/marine, etc. Then, most people wouldn’t have dreamt of ever getting one. Now it’s almost weird if you’re over 18 years old and don’t have a tattoo, or at least a piercing or three.

We live in a society where almost everyone wants to be different, so we get tattoos and colour our hair and pierce our faces and ears, etc. It happens so much that it has become part of who we are as a society.”

However, “Even in this day and age,” Knight warns, “the employer still has the ultimate say on what is best for the business’ public image. They still have the right to choose the rules, such as dress code, how many piercings and/or tattoos are visible, or how they wear their hair. Even as a tattoo artist, I warn clients all the time that extreme, visible piercings and face, neck, or hand tattoos can be job killers.”

Knight also points out that it might not be the employees who are hurt the most by the ongoing stigma.

“I also know that, in Canada, all of these things are now mainstream cultural— they fall in the same category of Canadian human rights and freedom. As a

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CAN CORPORATE CULTURE AND PERSONAL STYLE COEXIST? // HUMAN RESOURCES

“INCORPORATING THESE DIFFERENT ASPECTS OF MODERN CULTURALISM INTO YOUR BUSINESS SHOWS A LEVEL OF UNDERSTANDING AND ACCEPTANCE AND THAT HELPS TO CREATE A MORE COMFORTABLE WORLD.” ~ STACY A.J. KNIGHT

result, employers that can’t seem to keep up to the changing times might find themselves inadvertently segregating massive groups of people from all ages and losing out on the ‘sign of the times’ expansion into social media movements like #freethenipple and body modifications (tattoos and piercings etc.).”

“As for religious articles, this is multicultural Canada,” Knight stresses. “It should be well understood that certain people here in Canada and around the world wear certain clothing and religious articles—it shouldn’t even be a topic.”

“Incorporating these different aspects of modern culturalism into your business shows a level of understanding and acceptance,” he concludes, “and that helps to create a more comfortable world.”

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ABOVE: STACY A.J. KNIGHT, TATTOO ARTIST AND OWNER OF APOCALYPSE TATTOOS INC.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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GETTING TO KNOW EDMONTON GLOBAL // COVER

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GETTING TO KNOW EDMONTON GLOBAL // COVER

GETTING TO KNOW EDMONTON GLOBAL

IT’S THE “NEW KID ON THE BLOCK” FOR REGIONAL DEVELOPMENT, BUT UNDER MALCOLM BRUCE’S LEADERSHIP, EDMONTON GLOBAL IS READY TO DRAMATICALLY TRANSFORM THE BUSINESS LANDSCAPE.

BY NERISSA MCNAUGHTON

W

hat is Edmonton Global?

“It’s all about growing investment and jobs for the region,” says CEO Malcolm Bruce.

It is the first regional economic development initiative of its kind for the Edmonton Metropolitan Region, and although it was only incorporated in June of last year, the idea of it has been percolating for quite some time.

Bruce is happy to explain, “Edmonton Global will help align a lot of regional activity that is currently conducted through the offices of many different regional partners, such as: Edmonton International Airport (EIA), Alberta Industrial Heartland, Spruce Grove Economic Development, Edmonton Economic Development Corporation, etc. We are working to partner with all of them in creating a regional narrative that will make us far more marketable and more competitive globally.”

ABOVE: EDMONTON GLOBAL, CEO MALCOLM BRUCE. PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

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GETTING TO KNOW EDMONTON GLOBAL // COVER

“The world is an ever-shrinking environment when it comes to global dollars,” Bruce continues. “We are creating a niche for the region that says ‘We are a unique region.

Come, invest, and grow here.’ We will work collectively and collaboratively on how to become more globally trade oriented. Currently, 80 per cent of products are consumed inside of Alberta. There has not been a huge need for us to go to global markets in some areas. Now, we want it more universally known that we are looking for export and trade opportunities and that we are investment and trade ready. For regional companies that are ready for export opportunities, Edmonton Global is going to help them grow in partnership with regional economic development partners.”

Economic diversification, trade, leveraging of assets – this sounds positive for a region whose economy currently rises and falls with the price of oil. The region’s assets, says Bruce, are plentiful.

“We graduate over 20,000 post secondary students every year from about eight institutions. We want those graduates to reach their fullest potential here in the region and provide opportunities for them. We have the largest petrochemical cluster in Canada and the second largest manufacturing parks of their kind (second only to Houston) in North America. We have one of the largest healthcare centres. The University of Alberta ranks high in the artificial intelligence and machine learning sectors. We have the Northern Alberta Institute of Technology (NAIT), one of the of the largest apprenticeship trainers in Canada, offering 34 registered trades programs and 112 industry partners. We have 35 per cent of the best agricultural land in the province. This region is a force to be reckoned with!”

Edmonton Global intends to show the world this force by adhering to three core tenants in four key sectors: collaboration, focus and innovation in advanced manufacturing, energy and clean technology, food and agriculture, and health.

Bruce is excited to be at the helm of this venture.

“It was not a direct journey,” he smiles. “I was originally with the Edmonton Metropolitan Region Board (EMRB). One of the key things it delivered was the region’s growth plan. This

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IT WASN’T ONLY HIS PRIOR WORK AT EMRB THAT QUALIFIED BRUCE FOR THE ROLE OF EDMONTON GLOBAL’S CEO. BRUCE, A LONG-TERM MILITARY MAN, RETIRED FROM SERVICE IN 2012 AND IS HUMBLED TO BE A RECIPIENT OF A MERITORIOUS SERVICE MEDAL. HE FEELS HIS MILITARY BACKGROUND PROVIDED MANY TRANSFERRABLE SKILLS NEEDED TO HELP EDMONTON GLOBAL EXCEL. plan looks out 30 years to see how the region could grow in land use and other policies to accommodate the forecasted growth of another million people and 470,000 jobs by 2044. One of the policy areas (of six in the growth plan) is economic competition and employment. Edmonton Global is operationalizing that policy area to a tangible outcome. I was intrigued by this new entity and thought I could help it out. I applied to see if they would take me on.”

It wasn’t only his prior work at EMRB that qualified Bruce for the role of Edmonton Global’s CEO. Bruce, a long-term military man, retired from service in 2012 and is humbled to be a recipient of a Meritorious Service Medal. He feels his military background provided many transferrable skills needed to help Edmonton Global excel.

“What is interesting about that is the fact that I could have retired anywhere in Canada,” he muses. “I was born in Montreal and grew up in Quebec. I’ve lived in seven different provinces and visited nearly every corner of the country.

When I thought about my family and where we would have the best opportunity and set roots, Edmonton was the place that grabbed my attention. This was largely due to friends like Sol Rollinger, who strongly encouraged me to consider making Edmonton my final posting and home for my family.

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GETTING TO KNOW EDMONTON GLOBAL // COVER

“I have three daughters. Two have graduated from Alberta universities and have meaningful employment in the fields of their choice, and the third is finishing school this year. To me, this proves that the decision was correct. This is a great region to live, work and play in.”

He thinks back on his military career. “The military is, if nothing else, a learning organization. They really promote broadening your horizons and stretching your opportunities so you have a very in-depth understanding of a wide array of subjects and situations. When you do encounter problems, you have a way to work through them. They invest a lot of time teaching you how to be a leader. When I wasn’t in charge of things, I was an operational planner. When you are an operational planner, you get complex problems to solve. Some of the problems are constrained by time, resources, or a whole other series of things you may or may not know about.

“When I moved over to the EMRB, it was a planning effort.

We want a shared vision of a prosperous, sustainable region going forward. How do you achieve that? That is something for a planner! I took the skills I learned in the military and applied them as a civilian.”

Bruce continues, “In the military we have an aim. As a civilian you have a vision. Essentially it is the same process of bringing people together to achieve common goals while respecting different points of views, backgrounds and needs.

If we can agree on the outcome, we can work collectively to get there.”

It’s not all work and no play for the intrepid leader. He employs the same dedication to his downtime as he does to his career.

“I’m an avid beekeeper!” he admits. “When I retired from the military I promised myself I would try a whole bunch of different things. So, we moved to a small acreage where I could bee keep, have a garden, etc. Bees are fascinating! And they can be frustrating! I am still learning with some mixed results.”

While his bees and garden are a source of relaxation and enjoyment, Edmonton Global and its plans to change, lead and inspire the region, are never far from his mind.

“Branding and marketing Edmonton Global is critical for success. Not only on the external global stage, but within our

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own region so we’re not duplicating efforts and diluting the opportunities to bring new business home to the region,” says Bruce.

“I know we need to demonstrate how the collaborative approach to investment is the right approach. We know this won’t happen overnight, but the conversations are commencing and the seeds are being planted. I have to ask for tactical patience as we watch the idea take root and grow.

“What brings me encouragement is that in July we met with all the development agencies and all of the area’s economic development officers in a single forum. The first thing I said was, ‘If we are going to make this work, I need you to tell me what we need to do.’ They came up with a list.

“One of the items on the list is one regional level database (there are currently eight separate databases) so everyone has a shared understanding of what assets exists across the region. This supports us on a holistic level.”

Although he may be a strong champion of Edmonton Global, Bruce stresses that the venture is coming together only because of the collaboration at the government level and among the regions’ mayors and economic development officers.

“I have to applaud the courage of the political leadership that made this all come together,” says Bruce. “They really seized the opportunity and funded the organization. The province is now also providing funding. I appreciate the leadership and courage it took them to make this work.

“I must also emphasize the collaborative partnership with everyone in the ecosystem. Yes, there were challenges and competition in putting Edmonton Global together, but we all know that collectively we are better together.”

For Bruce, part of what makes a great leader and what will help shape the future of the region is creating opportunities to give back. While Edmonton Global has not yet fully realized its community initiatives, EMRB was proud to support Youth Empowerment Support Services (YESS) and to assist with food hampers at Christmas.

Bruce is personally involved in the Princess Patricia’s Canadian Light Infantry (PPCLI) Foundation, which was his regiment during his time in the military. Through the

GETTING TO KNOW EDMONTON GLOBAL // COVER

PPCLI, he helps assist veterans that require a little extra support. Bruce is also happy to help grow future leaders by supporting youth empowerment and education. Last year PPCLI Foundation raised enough money to send 12 youth and two chaperones on a battlefield tour.

“It’s important to make sure the next generation understands what the military did for them, and to support those that sacrificed so much,” he says.

As Edmonton Global gets underway and moves forward, Bruce thanks numerous mentors he encountered in his military and civilian life. He is also extremely grateful to the region’s 15 mayors that were instrumental in the launch of Edmonton Global. He expresses thanks to thought leaders: Mary Cameron, Tom Ruth, Janet Riopel, Brad Ferguson and Barbara McKenzie, among others. He has the utmost respect for his close friend Ian Barrigan, who taught him that in this city, you can still seal a business deal with your word and handshake.

“What comes next is that we are going to continue to work as a collaborative collective to create the protocols and communication facilities,” Bruce concludes about the future of Edmonton Global. “Then, we will align provincially and nationally about how we are going to work together and create a unified picture on how to sell Canada and Alberta.

We will make sure we listen to businesses, so we know how to make our region more competitive. Ultimately, it’s about the businesses and how we can help get them to where they need to be.”

He pauses to look outside his office window, which beautifully frames the River Valley.

“I want my children to stay here. I want my grandchildren to stay here. I want to provide the opportunity for that. If

you ask our board members and team members, they say this is what it’s all about. We have an outstanding quality of life here. Canada is the best country in the world to live.

Alberta and this region have so much to offer. It’s important that people understand how Edmonton Global will be a significant gamechanger for the region. This has been a long time coming. If we all work together, we will truly see some positive outcomes.”

ABOVE: EDMONTON GLOBAL, CEO MALCOLM BRUCE. PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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EDMONTON’S HEALTH CITY: DIVERSIFYING THE ECONOMY, IMPROVING HEALTHCARE // HEALTH CARE

EDMONTON’S HEALTH CITY: DIVERSIFYING THE ECONOMY, IMPROVING HEALTHCARE A LOCAL INITIATIVE WANTS TO MARRY THE CITY’S HEALTHCARE WITH ITS EMERGING TECHNOLOGIES SECTOR. THE GOAL: IMPROVING LIVES AND MAKING EDMONTON AN INTERNATIONAL HEALTHCARE POWERHOUSE

BY ZACHARY EDWARDS

W

hen people describe the “Edmonton Advantage,” it can mean a lot of things. They could be talking about the city’s entrepreneurial spirit, its competitive taxes or the fact that the city’s culture and innovation attracts and retains talent from around the world. For Health City, an initiative that wants to turn Edmonton into an international powerhouse in healthcare innovation, the Edmonton Advantage is in the people in the city that are already making waves around the world.

Health City was founded as one of the many local efforts to diversify Edmonton’s economy; specifically, by taking strengths in Edmonton’s industry and technology sectors and marrying them with healthcare. The initiative started when the city saw that emerging technologies and healthcare were two key strengths. They wanted to find ways to connect them together for mutual benefit.

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“When I can play a part in supporting the health of the next generation, there’s no better use of my time and passion.”

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EDMONTON’S HEALTH CITY: DIVERSIFYING THE ECONOMY, IMPROVING HEALTHCARE // HEALTH CARE

“THESE ARE KEY AREAS THAT WILL FUEL THE NEXT HEALTH ECONOMY. WE HAVE SIGNIFICANT STRENGTHS IN THOSE AREAS AND WE THINK THERE IS A GREAT OPPORTUNITY TO MARRY THOSE CAPABILITIES WITH THIS IMPETUS TO CHANGE HOW WE LOOK AT HEALTH. WE WANT TO PROVE THEM HERE AND THEN EXPORT THEM AROUND THE WORLD.” ~ REG JOHNSON

“Health City was started by looking at areas that Edmonton could potentially diversify into,” says Reg Joseph, the initiative’s CEO. “It was very clear that there are a number of strengths and assets in the health arena in this jurisdiction.

In many cases, they are world-renowned, yet they are not having the impact that one would think for the caliber of those assets in terms of economic development. Health City was founded through a combination of need and the background, assets and capabilities Edmonton already has to drive these areas forward.”

Specifically, Health City wants to address health issues that are on the rise and not getting the right treatment through traditional medical procedures. Chronic diseases and issues, like diabetes and mental health, are usually treated in acute care systems, which Joseph argues is not the most effective route. Part of Health City’s mandate is to find better, more effective treatment options through important technological innovations that are already changing healthcare around the world, be it artificial intelligence, machine learning, virtual and augmented reality or blockchain.

“There is a lot of change in terms of innovation, new technology and new tools that are looking at better ways of practicing, preventing and managing chronic disease,”

Joseph explains. “These are key areas that will fuel the next health economy. We have significant strengths in those areas and we think there is a great opportunity to marry those capabilities with this impetus to change how we look at health. We want to prove them here and then export them around the world.”

Some of these technologies are already in Edmonton and, according to Joseph, “punching well above their weight” in terms of world renown and power. The trick is connecting these emerging technologies with the funding and resources they need to truly succeed. To this end, a large part of Health City’s mandate is in connecting people, companies, researchers and medical professionals together.

According to Ashif Mawji, a founder of the Alberta Machine Intelligence Institute (AMII), Health City is already proving useful to local computer science researchers, especially those working in artificial intelligence and machine learning.

“Health City is helping bridge the gap between Alberta Health Services (AHS) and AMII grads, and providing governance models in ensuring a safe way to share health data while respecting privacy obligations,” he explains. “This is just one of the ways it’s assisting. It’s also providing ideas

ABOVE: REG JOHNSON, CEO, HEALTH CITY

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EDMONTON’S HEALTH CITY: DIVERSIFYING THE ECONOMY, IMPROVING HEALTHCARE // HEALTH CARE

on what the real-world healthcare needs are so that the solutions developed will have commercial applicability.”

Health City’s budget was approved in the spring of this year and it spent the summer assembling its team. Even at these early stages, however, it has already attracted one significant multinational company: Hitachi. The international conglomerate will offer Health City and its partners access to datasets and analytics tools that will form the basis of many future projects.

“Hitachi is partnering with local companies to build a data engine that will let us look at disparate datasets,” explains Joseph. “We will draw new evidence and intelligence at how to look at health problems in a new way. That engine will be the platform and then we are going to layer on top of that a bunch of projects that are key to this region.”

While many of those projects are yet to be determined, the approach is already set. Joseph wants to bring together what he has dubbed “innovation consortiums” to discuss and ultimately put into practice innovative solutions for specific problems, whether they are the suburban opioid crisis, diabetes or other chronic medical issues.

“We have a number of key problems that have been identified in the field,” he says. “Now, what we want to do is put together innovation consortiums to help solve those problems. By doing that, we are going to tie in innovation and technology.”

Hitachi’s inclusion is especially important for much of the technological work happening in Edmonton, which relies on large amounts of data to help create algorithms and programs that can learn and adapt as needed. According to

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EDMONTON’S HEALTH CITY: DIVERSIFYING THE ECONOMY, IMPROVING HEALTHCARE // HEALTH CARE

“WE HAVE TREMENDOUS WEALTH WHEN IT COMES TO DATA. NOW, WE JUST NEED TO RELEASE THAT DATA IN A RESPONSIBLE MANNER AND ALLOW OUR CREATIVE MINDS TO HELP SOLVE THE WORLD’S GREATEST HEALTHCARE-RELATED PROBLEMS. WE HAVE THE RIGHT TALENT TO BUILD WORLD-CLASS SOLUTIONS – WE JUST NEED THE DATA.” ~ ASHIF MAWJI

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Mawji, data access is one of the biggest barriers currently facing researchers.

“We have tremendous wealth when it comes to data,” he says. “Now, we just need to release that data in a responsible manner and allow our creative minds to help solve the world’s greatest healthcare-related problems.

We have the right talent to build world-class solutions – we just need the data.”

Douglas Cole, president of local virtual reality company 3Scape Systems, says another major barrier is funding and testing, something Health City will help facilitate in the future. “Funding is always the biggest issue. It would be ideal to have a mechanism to provide a consistent testing arena so the products can prove efficacy quickly,” says Cole. “The province under the leadership of AHS could provide technological testing, real-world validation, procurement support and therefore push our local innovations into the world marketplace.”

Looking forward, Johnson hopes to see Health City become an international phenomenon. Currently, it is focused on bringing large companies and experts to Edmonton, but he hopes to one day to take Health City’s expertise to other parts of the world to learn and connect.

“These problems are problems everywhere. What’s different are the circumstances,” says Joseph. “What’s happening in Manchester, for example, may be different to what’s happening here, but we want to see if what we are doing here can be applied or relevant elsewhere.

Conversely, if there’s something happening in Sydney, is there something that we can learn from them?

“Essentially, what I want to do is what’s been happening in the IT world for the past 30 years. IT innovation happens anywhere around the world and then gets exported around the world. There’s no reason why we can’t do this with health as well.”

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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KEY PERSON INSURANCE: WHAT IT IS AND WHY YOU NEED IT // RISK MANAGEMENT

KEY PERSON INSURANCE: W H AT I T I S A N D W H Y YO U N E E D I T

BY JAMELIE BACHAALANI

O

n a scale of one to 10, how critical are you to the overall success of the company you work for? What would happen to the business if you were suddenly unable to work, possibly forever, due to an injury? Would the company survive, or would it perish? While you might not about think it often, for most profitable companies, it’s not just the owners who determine whether or not a business is successful. There are a variety of different roles and skillsets that are instrumental in ensuring that the day-to-day operations of a company are maintained.

“A key person is anyone who handles key accounts, generates new business for the company, or has a specialized technical skill, ability, or experience that is difficult to replace,” says Jane Trentini from Trentini Wusyk & Associates. As a managing partner for a professional estate and business succession planning organization, Trentini helps provide companies across Alberta with corporate insurance, including key person insurance.

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However, what is key person insurance, and how do you know if that policy applies to your company? Brian Rose from HDF Insurance explains. “Key person insurance is a life insurance or disability insurance policy that is taken out by a company to cover an important employee. It cannot be taken out on a majority owner of a business. Usually, insurance companies will allow employees who have up to 20 per cent ownership to apply for coverage. Insurance coverage for business owners is structured differently because their needs are different. Policies for business owners are used to purchase the business shares of a deceased business partner or to reimburse the owner for the ongoing business expenses, should that business owner become disabled.

Key person insurance is really for employees who play an integral part in the business. It provides the business with the funds needed to sustain itself given the loss of this employee. Typically, key person insurance premiums are not tax deductible. However, the benefit payout to the business is non-taxable.”

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Citing Trentini, in most cases insuring a key person for one to three times their annual salary would be an appropriate amount, but it depends on the circumstances. “The first step in finding the cost of key person insurance for your company is determining the potential financial loss if something were to happen to him or her. If you are a medium-sized company and your key person is your head salesperson, the amount of life insurance needed is approximately $500,000. However, that is only assuming that the key person generates 450K in revenue, and the policy accounts for 50K to go towards the recruiting and training of a new key employee.”

This would roughly average $15 a month as opposed to $60 a month for a $500,000 policy.

A thriving corporation with three partners in the management group, headquarters in Edmonton, branches in other cities and an IT specialist that keeps everything going would have a very different policy. In this particular case, $100,000 of (Term 20) insurance would be sufficient to cover the costs of training a new team of IT specialists.

Rose has an excellent point. Finding a suitable replacement for your business’ key person requires more work than finding someone who is technically qualified.

You want to find someone that will add the same level of passion and innovation to your company, and honour the legacy of their predecessor.

However, it is more than training or education that would make someone a key person in a company. A lot of it is an employee’s creativity and uniqueness that makes them a key person.

“In reality, many small to medium-sized companies have key persons whom should be insured. Often, these companies just don’t have the resources or talent pool to properly replace a key person. The insurance policy is what will keep them afloat while they search, and this could take months,” says Rose.

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KEY PERSON INSURANCE: WHAT IT IS AND WHY YOU NEED IT // RISK MANAGEMENT

Amanda Wagner is the founder of The Complement, a sales and retail consulting firm formally known as Retail to Riches, and she thinks that even just actively considering key person insurance for your business can help you reduce risk.

“There is no magic number that a business has to reach before they start considering the what-ifs. Instead, a business needs to analyze the impact of their scope. How many people do they employ? How many clients do they work with? How important is this work to their clients and their impact? All of these questions will help them in determining whether or not key person insurance is right for them,” Wagner explains.

Tentrini also agrees that owners and officers of a business have the responsibility to assess all possible business risks and find possible solutions to protect the business, it’s employees, clients, and suppliers. “When an organization loses a key person, they also run the risk of losing access to key accounts and relationships, and important technical skills and knowledge,” she says.

“When you are considering key person insurance for your business, think of it as a baby. What kind of care do you want your baby to have after you pass away? If you want your business to continue then you need to consider all the logistics required to continue operating the business, especially in the digital world,” Wagner adds. “Is your business prepared to pass on the necessary information from the previous key person to the newly appointed key person? Are passwords, account information, and finances documented and accessible? And where is this information even stored? You can’t overlook or forget critical details because it could lead to financial issues down the road.”

What is the actuality that a business will need to use their key person insurance policy? Let’s consider the facts.

According to the Heart and Stroke Foundation of Canada, one out of four Canadians will develop heart disease, about half of all heart attacks happen to people during their working years, and on average, a stroke occurs every 10 minutes in Canada. Statistics from The National Cancer Institute of Canada also suggest that one in three people will develop cancer. It’s also important to consider the impact of a key person facing long-term disability. The Society of Actuaries’ Commissioner’s IDA Morbidity and

TENTRINI ALSO AGREES THAT OWNERS AND OFFICERS OF A BUSINESS HAVE THE RESPONSIBILITY TO ASSESS ALL POSSIBLE BUSINESS RISKS AND FIND POSSIBLE SOLUTIONS TO PROTECT THE BUSINESS, IT’S EMPLOYEES, CLIENTS, AND SUPPLIERS. Commissioner’s SO Mortality tables report that most disability claims involve accidents resulting in serious injuries, psychological illnesses, stroke, heart disease or musculoskeletal conditions such as back problems.

Furthermore, during his or her working years, a 35-year-old has a 50 per cent chance of suffering a disability that lasts for more than three months.

“For a business, the death of a key person can be a slip, not a slide. Apple is a great example of a company that continued to forge on. It has been seven years since Steve Jobs passed away, and his business continues to operate as if no major disturbance had ever occurred. This is exactly how key person life insurance saves a company; it forces them to think ahead. By planning for all of the worst case scenarios, including the death of a key person, a business creates a healthy and financially sustainable way to reduce risk,” concludes Wagner.

ABOVE: AMANDA WAGNER, FOUNDER, THE COMPLEMENT.

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EDMONTON’S INDUSTRIAL FUTURE: THE FUTURE SUCCESS OF THE EETP // CONSTRUCTION

Edmonton’s Industrial Future: The Future Success of the EETP The Edmonton Energy and Technology Park represents a changing commitment to industry and growth, and charts how the city has adapted to new economic realities.

BY ZACHARY EDWARDS

E

dmonton and its surrounding areas have long been home to a strong manufacturing and industrial core, but as Alberta’s economy changes, so do the projects and industries that want to call Edmonton home. There is perhaps no better example of Edmonton’s changing economy, and the demands that come along with those changes, than the Edmonton Energy and Technology Park (EETP). The section of roughly 50 square kilometres on the city’s outskirts will be home to the city’s next phase of industry and manufacturing and has undergone substantial change to adapt to Edmonton’s past, present and future.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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EDMONTON’S INDUSTRIAL FUTURE: THE FUTURE SUCCESS OF THE EETP // CONSTRUCTION

The EETP was conceived in 2008 as an effort to expand Edmonton’s industrial and manufacturing sectors. According to Ken Mamczasz, the City of Edmonton’s director of economic investment and development, the park represents “a large part of our industrial future” and will “be our industrial land supply for the next 30 to 50 years.”

Currently, Edmonton and the surrounding areas are home to substantial industrial and manufacturing operations.

Some “40 chemical and advanced manufacturing businesses representing more than $32 billion in investment” are already in operation, according to the city’s area structure plan for the EETP. Another “$15+ billion in projects announced or under construction” are happening in the area, pointing to the park’s importance, not just as a place to house future industry but to also contribute to sectors that are already thriving in the area.

The original plan was created in the midst of an industrial boom in Edmonton. With ample space for industrial growth, Edmonton eyed breaking into the market with a new industrial park.

THE FOCUS ON PETROCHEMICAL CHANGED WITH THE RISE OF SHALE OIL AND GAS FOLLOWED BY THE DROP OF OIL PRICES IN 2014. LEFT WITH AN ECONOMY THAT WAS “FLIPPED ON ITS HEAD,” MAMCZASZ AND THE EETP STARTED TO LOOK TO OTHER MARKETS FOR ITS INDUSTRY.

“Ten years ago the economy was very different,” Mamczasz explains. “We originally envisioned the area as part of a land rush that was happening. Six or seven upgraders were being planned [in the area] at that time and we were trying to capture part of that market. The original plan was to focus on and develop a petrochemical area here.”

The focus on petrochemical changed with the rise of shale oil and gas followed by the drop of oil prices in 2014. Left with an economy that was “flipped on its head,” Mamczasz and the EETP started to look to other markets for its industry.

“Today, we don’t expect this area to have a strong focus on petrochemical processing even though the industry remains at our core,” he says. “We’ve evolved to try and take the emphasis off petrochemicals and more on traditional industrial activities, like warehousing, logistics, manufacturing, storage and construction services.”

ABOVE: KEN MAMCZASZ, CITY OF EDMONTON, DIRECTOR OF ECONOMIC INVESTMENT AND DEVELOPMENT.

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EDMONTON’S INDUSTRIAL FUTURE: THE FUTURE SUCCESS OF THE EETP // CONSTRUCTION

One such sector is already happening on the land in the area: agricultural businesses. Since the park has a 50-year growth plan, Mamczasz envisions the area supporting agriculture and industrial working side-by-side for the foreseeable future. “As we transition the area into industrial, it makes sense to have 20 or 30 years of agricultural usage like hemp production or hemp processing,” he says. “We’re looking at all options currently to help with that diversification.”

The size of the future park is hard to visualize but it is a significant amount of space, something Mamczasz describes as the park’s biggest advantage and challenge.

“It’s so big that it’s hard to get things moving there,” he says.

“When you have an area this large and it’s brand new, the challenge is usually for the first few developers because they have to extend services and oversize services for the area, then pay for those services and hope to recoup those costs from future developers. When you have an area this large, those numbers get pretty big. Plus, there’s no guarantee that the next developer will set up shop close enough that they can share in those initial costs.”

Edmonton adheres to a private development strategy, so they cannot directly incentivize developers to work on the EETP. The City has, however, created a unique tax system to help developers with their costs.

“One of the challenges for new developers coming in is they have to front end a lot of their costs,” Mamczasz explains.

“We’ve tried to simplify this risk with a plan. If you develop and oversize some infrastructure that will get paid back by future developers, the city will take up to 50 per cent off your tax uplift and give you a rebate.” The plan helps the city compensate early developers without having to find large reserves of money upfront, a win-win for developers and the city.

THE NEW TAX STRUCTURE IS JUST ONE WAY THE CITY IS HELPING POTENTIAL DEVELOPERS. ANOTHER IS

BY CLEANING UP THE AREA’S EXISTING PLANS AND ZONING, ESPECIALLY WHEN IT COMES TO ROADS.

The new tax structure is just one way the city is helping potential developers. Another is by cleaning up the area’s existing plans and zoning, especially when it comes to roads. “We actually simplified the road network,” he says.

“What we proposed nine years ago was a bit more curvy and traditional. What we did more recently was reduce the arterial roads and put it back on a grid. We also reduced the number of roads so that when developers cost share, it reduces their costs.”

ABOVE: RENDERING OF EETP LOGISTICS AREA. PHOTO SOURCE: CITY OF EDMONTON

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EDMONTON’S INDUSTRIAL FUTURE: THE FUTURE SUCCESS OF THE EETP // CONSTRUCTION

Roads have also caused some inter-governmental coordination, specifically between Sturgeon County and the City of Edmonton. Last year, the city worked with Sturgeon County to annex roughly 16 hectares of land in the park’s southwest. As it stood, access to the park was through Sturgeon County, which needed to be cleaned up for zoning and simplicity. The area, which was exempt from taxation for Sturgeon County, was purchased by the City of Edmonton earlier this year as what Mamczasz describes as some “logistical cleanup.” Sturgeon County, for its part, is happy to the see the park happen in such close proximity.

“Sturgeon County values and recognizes the importance of relationship building and collaboration,” says Gwen Wolansky, communications office for Sturgeon County.

“Managing lands that connect on our fringes and working with other municipalities helps us all to build better, stronger communities.”

As the project looks to the future, Mamczasz says patience and consistency is needed. Even at 10 years in, he and his team are still looking decades ahead. More immediately, however, Mamczasz hopes to see the start of some projects as soon as next year.

AS THE PROJECT LOOKS TO THE FUTURE, MAMCZASZ SAYS PATIENCE AND CONSISTENCY IS NEEDED. EVEN AT 10 YEARS IN, HE AND HIS TEAM ARE STILL LOOKING DECADES AHEAD. MORE IMMEDIATELY, HOWEVER, MAMCZASZ HOPES TO SEE THE START OF SOME PROJECTS AS SOON AS NEXT YEAR.

“With an area this big that has a 50-year buildout, by next year we will hopefully have some pavement down in one of the pre-zoned areas,” he explains. “We have to be patient because the market in Edmonton is really soft. Last year, we had the slowest absorption rate of industrial of the past 10 years.”

The EETP represents the changing face of Edmonton and the province’s economy. As a long-reaching project that was conceived in a very different climate, the EETP has adapted, evolved and changed to meet the demands of current markets, but with an eye to the far future. Every change the city brings makes the area more enticing to future developers, and the city continues to create new solutions that will help Edmonton grow and succeed.

“As we work through these solutions we will have a space that’s attractive to developers,” Mamczasz says. “And they will start laying the groundwork for the area.”

PHOTO SOURCE: CITY OF EDMONTON

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A National Urban Strategy for Canada

2018 Board of Directors Board Executive

Chair: Len Rhodes President & CEO, Edmonton Eskimo Football Club Vice Chair: Dawn Harsch President & CEO, ExquisiCare Senior Living and Care at Home Treasurer: Bryan DeNeve Senior Vice President Finance & CFO, Capital Power Past Chair: James Merkosky Partner, Tax Services Pricewaterhouse Coopers LLP

Board Directors

Dr. Glenn Feltham President & CEO, Northern Alberta Institute of Technology Crystal Graham Partner & Licensed Interior Designer, Kasian Architecture Interior Design & Planning Ltd. Elan MacDonald Senior Vice President, National Client Development Global Public Affairs Scott McEachern Vice President, Engineering & Projects, Enbridge Pipelines Inc. Dennis Schmidt Legal Counsel and Associate Development Manager Alldritt Land Corporation LP Craig Thorkelsson Head of Tax PCL Constructors Inc. Dr. Jenelle Trenchuk-Saik President & CEO, Parker Ford and MacKay

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Janet Riopel President & CEO Edmonton Chamber of Commerce Tim Ferris Director, Member Services Edmonton Chamber of Commerce Brent Francis Director, Advocacy and Outreach Edmonton Chamber of Commerce Ian Morris Director, Organizational Excellence 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

By Janet Riopel, President and CEO, Edmonton Chamber of Commerce

C

anada has changed dramatically since 1867, but the relationship between cities, provinces and the federal government has not kept pace with this changing reality. At the time of Confederation, over 80 per cent of Canadians lived in rural areas. Today, over 80 per cent of Canadians live in urban areas. Between 2006 and 2016, Alberta saw 24 per cent population growth — the largest population increase of any province or state in North America. With much of this growth happening in urban areas, Alberta cities have struggled to meet the infrastructure needs of their growing populations.

As Canada becomes more and more urban, the current out-of-date approach to planning and funding major infrastructure projects limits cities’ ability to adapt accordingly. While governments have recognized the issue and responded with some increased transfers and powers for municipalities, the strategy is too often piecemeal, with results measured by dollars spent and number of ribbons cut rather than by alignment with shared priorities. Further, the traditional 1/3, 1/3, 1/3 funding model for large projects — with costs shared equally between federal, provincial and municipal governments — does not recognize that cities lack the revenue-generating capabilities of the other two levels of government.

What does the Edmonton Chamber propose?

The Edmonton Chamber of Commerce is a member of the Canadian Global Cities Council (CGCC), which released a report in February 2018 titled Planning for an Urban Future: Our Call for a National Urban Strategy for Canada. The Council proposes an entirely different approach to how we measure infrastructure needs and projects, how the three levels of government interact in order to plan and build a project, and how projects are funded. The report recommends that: • The federal government should measure and report on infrastructure quality, and disseminate best practices through a central agency.

• Regional leaders should lead the development of long-range priority plans, and other stakeholders and provincial governments should enter into agreements between the region and the federal government.

• Federal funding should “fund the plan” instead of the project with grant amounts tied to population on a per capita or near-per capita basis.

The report does not call for increased funding; the goal is instead to streamline how projects are funded to eliminate inefficiencies. The majority of infrastructure projects are currently funded on a project-by-project basis, with municipalities applying to federal and provincial governments to fund a particular project.

The result is a focus on the process and on announcements, and municipal governments tend to shift their priorities to match the funding programs available Continued on next page...

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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from the provincial and federal governments.

For example, right now, funds could be tied to a project which is not shovel-ready while another project that is ready sits idle, waiting for approval and funding. In the past, maintenance projects have not been eligible for funding under federal programs, and the emphasis has often been on new projects rather than the health of older infrastructure. This influences municipalities to put resources towards new projects rather than maintenance, which could be a higher priority.

One way the federal government can help ensure the health of aging infrastructure is by taking a lead role in measuring and reporting on infrastructure. Among OECD members with federal systems of government, Canada and the United States are the only two countries out of nine who have not committed to a national urban strategy and the only two where infrastructure quality is measured by private or non-profit entities rather than by government agencies. A central agency — possibly part of an existing ministry or even part of Statistics Canada — could track problems, collect data and share best practices across all jurisdictions.

Canadian cities must develop the social, transportation and economic infrastructure they need to serve their populations and compete in the global economic marketplace. A National Urban Strategy will improve long-term planning and structure funding in a way that maximizes our competitiveness.

The Edmonton Chamber of Commerce would like to hear from you. Would a National Urban Strategy benefit your business? Please share your thoughts and ideas with us.

T

he Canadian Global Cities Council (CGCC) is a coalition of the Presidents & CEOs of the eight largest urban regional Chambers of Commerce and Boards of Trade in Canada: Brampton, Calgary, Edmonton, Halifax, Montreal, Toronto, Vancouver and Winnipeg. Representing 52 per cent of Canada’s GDP and more than half the country’s population, CGCC collaborates on international and domestic issues impacting our regions’ competitiveness.

(Source: https://globalcitiescouncil.ca/)

The members of the CGCC are: Jan De Silva, President & CEO of the Toronto Region Board of Trade; Michel Leblanc, President & CEO of the Chamber of Commerce of Metropolitan Montreal; Sandeep Lalli, President & CEO of the Calgary Chamber of Commerce; Iain Black, President & CEO of the Greater Vancouver Board of Trade; Janet Riopel, President & CEO of the Edmonton Chamber of Commerce; Loren Remillard, President & CEO of the Winnipeg Chamber of Commerce; Todd Letts, CEO of the Brampton Board of Trade; and Patrick Sullivan, President & CEO of the Halifax Chamber of Commerce.

Contact us by email: policy@edmontonchamber.com.

Members in this Issue Fire & Flower and Apocalypse Tattoos Inc. in Can Corporate Culture and Personal Style Coexist? on page 24 City of Edmonton and Sturgeon County in Edmonton’s Industrial Future: The Future Success of the EETP on page 49 Brownlee LLP Barristers & Solicitors and Grant Thornton LLP in The Way to Succeed on page 63

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IDX | IDX Labs Member profile Sandro Torrieri (President), Dave Feraco (VP of Operations/General Manager), Devin Vandenberg (VP of Sales) www.idxlabs.ca What’s your story?

Interdynamix (IDX) was founded in 1995 by President Sandro Torrieri—where he saw a need for innovative, cost effective, enterprise class IT solutions in the market, and believed that his hometown of Edmonton was the perfect place to launch and build his business. The company began to grow quickly, adding partners Dave Feraco, VP of Operations/General Manager, and Devin Vandenberg, VP of Sales.

IDX was built on integrating technical solutions across hardware and software platforms, and decreasing risk and costs for clients through rapid service delivery. These brand promises were met by a foundational commitment to leading-edge research and innovation—now developed through IDX Labs. The passion with which IDX pursues innovation has not changed in 24 years. Even though the pace of change and the technologies that wire business continue to evolve rapidly, IDX continues to make significant investments in people and new technologies.

IDX is a world-class integrator in its traditional day-to-day operations while IDX Labs continues to work on the next big idea; the most recent is a new, radical FinTech company steeped in Artificial Intelligence (AI) capability that promises to shift the paradigm.

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The three partners have continued to grow the organization to 50+ employees with representation and clients around the world, but remain dedicated and committed to Edmonton. IDX believes that Edmonton is and can be home to world leading technology and companies built around them.

What are four things people are surprised to learn about your business or don’t know about your business?

1. Global telecomm and advanced IT provider that started—and chose to stay—in Edmonton, IDX is a leader in developing software companies.

2. National and international leaders in Software Defined Networking solutions and proprietary NFV platforms built on open source platforms. Leaders in converged IT and infrastructure. People are surprised to learn we have this world-class level of technical capacity here in Edmonton.

3. Recipient of a Technical Emmy Award for ‘Invidi Technologies’—a world-leading company incubated in the IDX family of companies (the award resides in our office. Think—the targeted commercials before YouTube videos).

4. One of the largest resellers for computer hardware in Canada.

What has surprised you in the last 12 months?

The amount of new conversations being had about the value-added innovation sector in Edmonton. AMII (the Alberta Machine Intelligence Institute) has put the lens of the world on Edmonton for AI and machine learning, which has led to an explosion of interest. This is creating an exciting environment for Edmonton and Alberta to create a vibrant area of economic diversification. Edmonton is now ranked third in the world for AI and research and development (R&D), however, the lack of commercialization of these technologies is surprising.

What has been your biggest challenge in the last 12 months?

Continuing to add to our organization the type of skills, expertise and personnel that allow us to serve existing and new clients.

The sector is so dynamic, and we are always pushing to be leading on this front—and that requires great people.

What do you think is the biggest issue impacting Edmonton’s small businesses at this time?

Edmonton has long been a place that creates business and innovative solutions.

Edmonton’s expertise has been seen in additive manufacturing, technology development, medical solutions and health services, construction, logistics, and value added agriculture. We have one of the world’s best post-secondary environments with excellent talent and leading-edge research and innovation being done here. There needs to be more support for this environment.

We need to focus on building globally competitive businesses, leveraging our experience from our start-up culture while scaling up companies. Scaling (and retaining) our great companies can be aided through innovative partnerships with our postsecondaries focusing on our research strengths.

We need to better commercialize our ideas, nurture the businesses that do this, and help find them financing and promote them to the world.

What’s your secret to keeping your employees engaged?

We look for the top people in their given fields and provide them the opportunity, education and R&D environment to work on complex problems.

Through this, IDX employees develop strong relationships with our customers because they are on the project from start to finish—from determining client needs to providing supports through and after implementation.

What is your organizations mantra?

IDX is client-focused by delivering increased competitive advantage and decreasing costs and risk within compressed timeframes.

We solve wicked IT problems and are constantly innovating and staying ahead of the technology curve so our clients can take advantage of new developments.

What do you enjoy most about being a Chamber member?

It is an active organization that is a strong supporter of local businesses that want local, provincial, national and international success.

Our Chamber mandate is to create the best environment for business in Edmonton. If you could make one substantial improvement to Edmonton’s business environment, what would it be?

Amalgamate all the different start-up support groups and associations under one banner to make it easier, more effective and efficient for incubators and entrepreneurs to access expertise to commercialize from local to international markets—develop targeted supports for specific sectors. Part of that process would also include fixing the public procurement system.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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Connecting Business Meet the Maker: Blind Enthusiasm Brewing Company The Edmonton Chamber partnered with Alberta Beer Festivals to bring beer and business enthusiasts together for a fun, interactive evening of connection building and enjoying the craft brews of Blind Enthusiasm Brewing Company on September 12, 2018.

Our signature Meet the Maker event series introduces attendees to the people behind Edmonton made Chamber member businesses.

Greg Zeschuk, Owner of Blind Enthusiasm Brewing Company, gave attendees a hands-on lesson in how to taste beer properly, which includes looking at the colour and clarity, smelling the aromas of the brew and, most importantly, tasting and appreciating the mouthfeel of the beer.

Attendees had the exclusive opportunity to learn how to pour a perfect pint of Blind Enthusiasm beer. Many were surprised that itâ&#x20AC;&#x2122;s not as easy as brew masters make it look!

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Guests enjoyed brewing new business connections over delicious craft beers from the brewery and chef-crafted charcuterie from Blind Enthusiasmâ&#x20AC;&#x2122;s partner restaurant, Biera, located in the trendy Ritchie Market.

Transforming Airport City Presented by Purolator

The Airport City development at the Edmonton International Airport (EIA) has created new runways for businesses in Edmonton. On September 27, 2018, local business, political and community leaders heard directly from EIA President and CEO, Tom Ruth, on how Airport City has helped bolster business success in Edmonton.

Guests enjoyed an engaging panel discussion featuring three Edmonton business leaders: Dan Duckering, Past Chairman of AMTA; Heather Stewart, President of BBE Expediting Ltd.; and Gerald Skocdopole, Chief Pilot Boeing 737 with Canadian North.

Attendees from across all industries appreciated the opportunity to connect with one another and hear about the many ways EIA supports and contributes to business success in Edmonton.

In his keynote, EIA President and CEO, Tom Ruth, discussed his vision for the future of EIA, Airport City and Edmonton business.

Head table guests included, left to right, Paul Merrick, General Manager for Western Canada, Purolator; Janet Riopel, President and CEO, Edmonton Chamber of Commerce; Tom Ruth; Heather Stewart; Dan Duckering; and Gerald Skocdopole.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // NOVEMBER 2018

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Celebrating Business Success!

THE 2019

Presented by

Presentation of the 2018 Northern Lights Award honouring

Brent Hesje CEO, Fountain Tire Ltd.

Saturday, February 2, 2019 Shaw Conference Centre

Tickets on sale now at • Edmonton’s premier business gala EdmontonChamber.com • Exclusive VIP guest experience • Fine dining, dancing and live musical entertainment • Black tie and cocktail formal

VIP Lounge Sponsor

Telecommunications Sponsor

Bronze Sponsors

Supporting Sponsors

THE WAY TO SUCCEED // SUCCESSION PLANNING

The Way to Succeed SUCCESSION PLANNING IS A MUST FOR BUSINESS OWNERS IN TIMES OF ECONOMIC UNCERTAINTY AND DEMOGRAPHIC CHANGE

BY BEN FREELAND

W

oody Allen famously quipped that he didn’t want to achieve immortality through his work, but rather through not dying. Such words speak volumes not only to human beings’ innate fear of death, but also to many business owners’ natural aversion to thinking about their businesses’ future beyond their own stewardship. Las Vegas casino magnate Sheldon Adelson famously dismissed the need for succession planning, citing his alertness and vibrancy and saying that he had “no plans to retire” despite being in his mid-eighties.

Such attitudes toward succession planning are, sadly, deeply prevalent among business owners of all scales, and much to their own detriment.

“In my line of work, I deal with type-A personalities who have a very hard time thinking about when they’re not in charge anymore,” says Guy Miki, business lawyer and partner at Brownlee LLP in Edmonton, who specializes in succession planning. “For many people the reality that they won’t always be able to remain in charge is very difficult to confront.”

Succession planning is a major consideration for large and small businesses alike, although the ramifications thereof differ depending on the size and scale of the business in question. For large organizations, succession planning is an invaluable tool for retaining human resources and reducing the cost of recruiting new talent by ensuring that the right individuals are in the right place at the right

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THE WAY TO SUCCEED // SUCCESSION PLANNING

AS OF MID-2015, CANADIANS OVER 65 OUTNUMBERED THOSE AGED 15 AND YOUNGER. IN ALBERTA, A RELATIVELY YOUNG PROVINCE BY NATIONAL STANDARDS, NEARLY 12 PER CENT OF THE POPULATION WAS OVER THE AGE OF 65 AS OF 2016, WITH THIS DEMOGRAPHIC REPRESENTING A DISPROPORTIONATE NUMBER OF BUSINESS OWNERS.

time and ensuring the timely transfer of knowledge. Such considerations are also at stake for smaller businesses, but the stakes are likely to be much higher when the survival of a business from one generation of leadership to another hangs in the balance. Sadly, it is often these businesses that fail to plan for the inevitable changing of the guard, as they invariable do not have the internal human resource management required the do the work.

Hussein Poonjani, a chartered professional accountant, business valuator, and managing director of transactions for Northern Alberta at Grant Thornton, has for the past 10 years, been helping Alberta business owners ensure the survival of their companies from one generation of leadership to the next. Such succession planning encompasses both leadership transitions and, in many cases, the sale of either the entire business or parts of it.

As of mid-2015, Canadians over 65 outnumbered those aged 15 and younger. In Alberta, a relatively young province by national standards, nearly 12 per cent of the population was over the age of 65 as of 2016, with this demographic representing a disproportionate number of business owners.

Such statistics pose obvious economic consequences, while also highlighting the clear need for succession planning on the part of businesses of all sizes, despite the Baby Boomer generation’s famous aversion to the idea of retirement. The need for succession planning is especially pronounced among smaller businesses, wherein the loss of a single individual can lead to disastrous consequences. Such businesses are often the most averse to engaging in the process of succession planning.

Like Miki, Poonjani asserts that business owners are very often not proactive enough in their succession planning, failing to take into account the timelines and complexities involved.

“We’ve been hammering on the need for succession planning for over 20 years,” says Miki.

“It’s really sad when we see people coming to us saying you were right about what you were telling us 15 years ago.”

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“Most business sales take anywhere between six and 24 months to complete,” he explains.

“If the business is not a well-oiled machine, it can be extremely difficult for owners to extricate themselves from it, and it becomes a very painful process. Above all, it’s absolutely vital that owners figure out what their business is worth, and whether or not things are in place for them to get out.”

The valuation process is, Poonjani asserts, the essential first step of any sort of business succession planning, as it determines what options an owner has. Elements of the valuation process include determining the uniqueness of its product and/or market position, as well as the value of its key contracts with clients, suppliers, and so on. Other

// SUCCESSION PLANNING

considerations include whether the company requires a degree of discretion in order to sell the business as opposed to a public listing, as well as its internal structure—the presence of a second tier of management or lack thereof.

“The worst nightmare for an owner looking to divest themselves of their business is deciding to sell their company, but nobody wants to buy it,” he says. “If they are ahead of the game in terms of valuation and can take corrective actions ahead of time, they can overcome these problems.”

Oftentimes Poonjani’s work involves a modicum of tough love in the form of disabusing business owners of their own romantic notions about their own succession. Such is often the case with family businesses, wherein owners’ bestlaid plans for familial succession prove unrealistic, or in fact, undesirable.

“In many cases you see clients not getting the advice they really need because advisors aren’t willing to challenge them on some very deep-seated assumptions,” he says.

“You’ll get business owners who have operated for decades under the assumption that their children would take over a business, and in many cases the kids are either uninterested in the business or wholly unsuited to running it, in which case I counsel clients that they’re better off selling.” Miki adds that such discussions can often become downright thorny and traumatic for owners.

“Family dynamics and cultural influences can have a strong effect on this process, and for many people the realities are very difficult to face. Sometimes we even have to hire counsellors to be involved in this process.”

While succession planning remains off the radar for many business people, Poonjani asserts that the economic turbulence that has beset Alberta over the past decade has served as a wakeup call to many of the province’s entrepreneurs of the need to plan for the long run.

“What we found in the 2009-2010 downturn is that owners were completely discounting the need for succession planning and just carrying on with the status quo,” he says.

“This current downturn feels very different. The main difference, I think, is that the current generation of owners are in their mid-sixties are telling me that they don’t have another business cycle left in them. A few years ago, before the downturn, we were in a position where we were able to increase businesses’ purchase values by 30 per cent prior to sale, but in the current economic climate, that’s not likely to be realistic. Especially in difficult times, it’s absolutely vital that owners get on it early.”

In such uncertain times, succession planning is more essential than ever.

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CELEBRATING 50 YEARS

Almac Metal Industries Ltd. turned a setback into a new beginning and never looked back

By Nerissa McNaughton

H

e could have given up. Jimmy Albert had just gotten word that the company he built from scratch was burning to the ground.

Fifty years ago, Jimmy envisioned a company that would become a leading manufacturer, designer, and distributor of self-framing and rigid-framed metal buildings. After learning the ropes from his uncle, he started out on his own, manufacturing components in his garage. His first employee was his wife who broke metal panels with a neighbour while their kids napped. Almac Metal Industries Ltd. grew quickly and soon Jimmy expanded to his own shop. He worked alongside his employees, manufacturing the building components and then going out into the field to do custom installations. Almac’s growing success embodied Jimmy’s dream, thriving in the oil industry of Alberta.

On May 1, 2002, Almac went up in flames. The building was completely destroyed along with all of the equipment and inventory inside.

Keith recalls, “The night of the fire, he asked us what we wanted to do. I said we were too young to stop working.

Jimmy said, ‘okay.’ He could have walked away and retired, but he didn’t.”

The next day, Jimmy went to survey the damage. Even though their jobs were gone, every single employee showed up to support Almac. At that moment Jimmy realized rebuilding was the right decision, not for himself, but for his dedicated employees. Almac’s success came from the people within its walls.

Amazingly, business resumed immediately after the fire.

Almac took a six month lease on a nearby building and by the time the lease expired, its new shop at 6140-76th

Avenue was ready for business. The new facility included a metal forming machine, salvaged from the fire, that Jimmy helped design himself.

Almac started as a family business and continues to instill family values into its working atmosphere. Many employees have spent their entire careers at Almac and generations of relatives from Almac’s original workers are employed by the company today.

“He really appreciated the knowledge and experience of his employees. As they got older, he had them supervising on job sites as opposed to doing manual labour, in order to pass on their expertise. There was always a place for everyone,” says Georgina.

Almac originates in Edmonton, and now has sales offices in Calgary and Vancouver. Since 2006, the company has been proudly managed by his daughter Georgina, along with Keith Hedrick and Ken Tebb. The team currently has 60 employees, and a client base that spans several sectors: oil and gas, agriculture, mini-storage, commercial buildings, and hazardous materials storage. Almac’s fingerprint can also be found in Edmonton’s community parks and school yards. If it is a custom metal building, Almac can create it.

“We also offer a line of pre-engineered building products in partnership with Star Buildings out of the US,” Ken adds.

Jimmy wanted Almac to be a wonderful place to work for the employees. Georgina, Keith and Ken ensure that the ideals the company was built on continue. “We are the only metal building company in the area that has never changed hands,” the management team points out. “That shows the strength of the company.”

Almac Metal • 50 years 66

This year Almac celebrates that strength with a 50th anniversary barbeque for the staff, explaining that, “Jimmy didn’t like fanfare, but after 50 years this company is still up and going, and that is what he wanted.”

Almac Metal Industries thanks its employees for their hard work and long-term dedication; it’s past, present and future clients; and Jimmy, who created something so strong, lasting and enduring, that not even a raging fire could destroy it.

www.Total-R.com

6140 - 76th Ave, Edmonton, Alberta T6B 0A6 Telephone: (780) 465-0861 • Fax: (780) 465-4198

Way to Totally stand out in the crowd!

Congratulations on 50 years of building excellence.

www.almacmetal.com

Congrats Almac Metal Industries on your 50th anniversary!

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Congratulations to Almac Metal Industries on your 50th anniversary!

We wish you many more years of continued success.

7903 Argyll Road NW | 780-935-7283

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4148 76 Ave Edmonton AB T6B 2P1 780.463.6465 | 1.888.461.6465 | albertaspring.com

Congratulations Almac Metal on your 50th Anniversary!

We are proud to be your supplier of choice for steel doors and polyurethane sandwich panels.

• Steel Doors • Aluminum Extrusions • Door Hardware • Polyurethane Sandwich Panel Doors • Specialty Panel Fabrication

15415 – 115 A Avenue, Edmonton, Ab T5M 3S7 P: 780-455-9997 | F: 780-455-9866 | info@genfourthermal.com www.genfourthermal.com

Almac Metal • 50 years

PREFERRED CLIENT SERVICES 20 YEAR ANNIVERSARY

PREFERRED CLIENT SERVICES

C E L E B R AT E S 2 0 Y E A R S

By Nerissa McNaughton

PREFERRED CLIENT SERVICES IS CELEBRATING THEIR 20TH ANNIVERSARY

in bookkeeping and who were looking for an opportunity of advancement with a great company.”

Barbara Steckly, founder and president of the bookkeeping firm that provides internal reports, government filing, human resources, and software system support, coined the company’s slogan, “Making a difference counting the beans!” and she says it accurately sums up what they do.

She also saw that many new Canadians could not obtain work in their chosen field and went into hospitality as a result.

Steckly wanted to offer another option. She has mentored many in her business and continues to do so. With the opportunity to work at Preferred Client Services, many of Steckly’s team members have flourished within the business.

PREFERRED CLIENT SERVICES HELPS WITH YOUR BOTTOM LINE

GIVING THE GIFT OF SUPPORT THROUGH HER COMPANY

“I thought there was a real need for an offsite controller/ consultant, someone that was more than a bookkeeper. I found a need and filled it,” says Steckly. “Preferred Client Services partners with you, your team and your accountant to make a positive difference in your bottom line. We do what the client needs. That could be short-term help to get things up to speed, or us coming in once a month or even once a year for bookkeeping. We are very flexible and tailor each experience to what the client needs.”

The Nina Haggerty Centre, Easter Seals and Momentum Walk-In Counselling are important charitable organizations to Steckly. Steckly has always been passionate about giving back to her community and in doing so has helped raise awareness of many charitable organizations. This is something Steckly insists and in fact makes it her priority within the foundation of her company. Giving is always better than receiving, and Steckly has shown this throughout the years with the many charitable organizations she supports.

When Steckly opened the firm in 1998, she and a part-time bookkeeper were the only staff. Today, she staffs up to 20 during tax season.

Preferred Client Services is known as the go-to team that always says “YES” to tackling the trickiest bookkeeping situations.

No matter how difficult the job, Steckly and her team will get it done! She has made it her priority to assist any business who comes to Preferred Client Services for help. Steckly takes pride in creating a plan of action for each company to be as effective as possible.

Steckly’s focus on giving back starts in-house. “We have a culture here of continuous learning,” she explains. “When the business started to grow by word of mouth, I thought, this is great! I should hire bookkeepers and teach them how to do this. So, I started hiring women who were looking for a career

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“We love the kinds of challenges that bookkeepers dread!” to ensure we are doing what the client wants us to do. We are very transparent. We have detailed timesheets that accurately estimate how long it will take to do the file based on our questionnaire.”

“When I started people asked, ‘what do you do?’ I answered with, ‘what do you need?’ We find out what they need by using a very detailed questionnaire. Not everyone comes to us for the same reason. Maybe they have problems collecting accounts receivables or bringing a bookkeeper up to speed. We don’t have one way of doing things; we don’t offer a cookie cutter solution.”

Growth is on the horizon again for Preferred Client Services with the possibility of a satellite office in another location.

Steckly’s son, Christopher, an IT professional, has joined the company this year as the Director of Operations. This has allowed the team to offer select IT services to its clients.

NO PROBLEM IS TOO BIG FOR US Whether they are organizing a client with 25 busy companies in disarray and getting a their bookwork caught up so they can clear their overdue taxes, or being called in as a team to spend 10 intensive days reorganizing a client’s entire system, Preferred is happy to oblige. “We love the kinds of challenges that most bookkeepers dread,” laughs Steckly.

A FASCINATING WOMAN WHO SAW A NEED AND WITH HER COMPANY HAS MADE A DIFFERENCE As Barbara looks back over the last 20 years, the energetic entrepreneur is pleased but also humbled by the company’s success. “We built this business by helping other people grow their businesses,” she concludes. “That is why we have had the success we’ve had.”

“Preferred Client Services doesn’t end when the project is complete. With the utmost care we work with our clients to guarantee they have all the tools available to them for a successful business,” says Steckly. “We look for feedback

Congratulations to Barbara and her team at Preferred Client Services Bookeepers on 20 years of success!

2327 Ellwood Dr SW, Edmonton, AB T6X 0A9 780-439-9457 or 780-469-5856 info@preferredclientservices.ca #yegbookkeepers www.preferredclientservices.ca

204, 14127 - 23 Ave NW • P: 780-461-0052 • F: 780-665-7222 www.colbysteckly.ca

Congratulations Preferred Client Services on 20 years!

We wish you many years of continued success.

35 Calder Place St. Albert, AB T8N 5A6 Phone (780) 431-2112 • Fax (780) 431-2002 • Toll Free 1-877-711- 2112

orionplastics.com

2

Third Quarter Real Estate Market Recap

W

e are officially three quarters through 2018, which makes this the perfect time to assess what we’ve seen in the Edmonton real estate market so far this year.

This year has seen higher inventory and listings, so there continues to be a great selection of homes for sale in Edmonton and the surrounding communities. If you’re buying, it’s definitely a great time to enter the market. If you’re selling, you’re likely just going to have to be prepared for some extra negotiating and flexibility if you need to sell your home quickly.

Single family homes continue to sell fairly well, although overall unit sales of all single family homes are down for this period compared to the same period in 2017. The average price of a single family home is down slightly to $436,227.

Single family homes between $325,000 and $400,000 are still a strong price bracket while higher priced homes are requiring more time on the market.

Condominiums still seem to be impacted by the current economy. Inventory on this property type has decreased throughout the year, which should be good for properties currently on the market. Sales and prices for condominiums are down about 4 per cent, and average days on market are still increasing, which means that if you’re selling a condo, patience is key.

Duplexes and rowhouses, a fairly popular category with firsttime home buyers, have also experienced a bit of a decline.

Like single family homes, inventory and listings are still up, but sales are down compared to the same period of time in 2017. Average prices are holding strong at $342,051.

Darcy Torhjelm, Chair, REALTORS® Association of Edmonton

As we move into the fourth quarter, listing volumes will likely continue to decrease along with unit sales volume, which is common for the winter season. At this point, we’re also not anticipating any major changes to average or median prices. As usual, we definitely recommend both buyers and sellers speak to a REALTOR® who can provide advice on how to competitively price homes to sell, and provide help with navigating the nuances of the real estate market.

Moving Life Forward.

Your next phase of life starts with a REALTOR®

Durabuilt: Innovative, Resilient, Forward Thinking & Customer Focused The company known for its windows and doors turns 30

by Nerissa McNaughton with photos by Rebecca Lippiatt

A

t that moment, 19-year old Harry Sunner didn’t have anything nice to say to his father. He had just stepped off the plane with his family, transplanted from his friends and life in England. The plane rolled onto the tarmac and deposited the Sunners in Edmonton’s -34oC November weather. The teen, whose father thought Canada would offer a brighter future, was not impressed.

That was in the mid ’90s. Did Sunner ever warm up to his new country? “I love Edmonton. It was the right decision to immigrate to Canada, but I will never accept the cold,” he laughs.

Durabuilt Window Systems launched in Edmonton in 1988.

In 1994, after going through a partnership with the previous owners, the Sunners became the sole owners of the company and promptly began the production of PVC windows, which were tooled by hand with 12 employees in a 10,000-squarefoot shop.

“At the time there was not a lot of interest in PVC,” says Sunner. “Everything was wood and aluminum.” However,

as the Sunners would prove time and time again, looking to the future, not the status quo, was the key to success. As the PVC market gained traction, the innovative company that knew very minimal about manufacturing – more so, were not fully equipped with the necessary tools to meet the growing demands – took on the great opportunities to allow their dreams to become realities simply with just their determination, vision and ambition.

By 1998, the company outgrew its location and evolved into Durabuilt Windows & Doors. The third facility (which included manufacturing of doors) boasted a whopping 26,000 square feet.

The growth never did slow down. A fourth move in 2002 brought the square footage to 60,000, and a second design gallery was opened on the south side of Edmonton. A fifth and final move took place in 2004, establishing a head office to oversee what would become several locations across Western Canada, and bringing the production space to 190,000 square feet to date.

Durabuilt Windows & Doors | Celebrating 30 years

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All the while, Durabuilt kept focusing on innovation, pushing the envelope to produce stronger windows and doors with better performance. As leaders in the industry, Durabuilt continues to initiate new projects and launch new concepts – adding fashion/ flair to products and engineering while educating and inspiring consumers in their progressive and interactive design gallery space.

In 2014, Sunner’s hard work and persevering commitment earned him a move from vice president to company president (his father’s former role), while Joe Sunner continued as CEO. Today, Durabuilt employs more than 400 people and pushes the industry to capitalize on automation, robotics and tech-driven products while never forgetting the value of the people who make these systems run.

As Sunner points out, it’s not the windows and doors that makes Durabuilt successful; it’s the people behind them.

“Understanding the importance of relationships, we have proactively cultivated connections and networks with key industry stakeholders and forged relationships in the industry and the community.

Our unique personal connection and daily involvement in the business puts us on the leading edge, in addition to being homegrown and privately owned,” he says. “Our core values, the principles that guide our internal performance and our relationship with the external world, are unwavering and unchanging.”

However, the road for Canadian manufacturers right now is not an easy one.

“The manufacturing industry in Canada has continually lost opportunities to other global players, but it is a vital component to the country’s wealth and success,” Sunner stresses. “I want

to take things to another level – take leaps and bounds in tech, manufacturing and innovation, not just windows.”

As Sunner looks back on 30 years, he knows that at Durabuilt’s core, resilience is what started everything and what continues to be a major company driver.

“People think I inherited the company, or that I was an engineer and joined. That’s not true. My father and I had no manufacturing history and no background in the business.

It was our vision, fortitude, hard work, along with a growth

PRINT | SIGNAGE | DESIGN | MAIL | DIGITAL MEDIA

Congratulations to Durabuilt on 30 great years and thank you for your partnership.

Bringing your ideas to life for over 100 years!

1-888-672-6101 cascadeaqua.com Durabuilt Windows & Doors | Celebrating 30 years | 2

burkegroup.ca

mindset; having to grow my abilities and leadership skills, and learning how to become a good steward for the team are the main ingredients to what got us here today.”

Sunner’s lifelong learning and leadership engagement is kept active by his participation in TEC Canada, an organization focused on growing strong and capable decision-makers. He has also recently joined MacKay Group, who develop the skills of high-performing, action-oriented CEOs. “My father was a low-risk business entrepreneur, but at 19 I was more willing to take chances and had lofty goals,” Sunner continues. “High risk is dangerous, low risk doesn’t grow. Having the two of us in a partnership brought us to middle ground. His experience and my youthful exuberance were complementary.

When we started we had to make it work; we had put everything into the company and were fully maxed out on lending. There was no exit but success. Failure was never an option.”

Sunner sees that resilience in every team member and fosters it across the company’s divisions.

“I feel it is the culture of transparency, respect and continuous development that raises us up, along with education and training. Training and development are a win-win as this ensures our team feels like they’re progressing and learning, while helping them to do their job even better.

“When employees feel that they are being heard, that they are part of the bigger picture, it motivates them. Fostering a culture of co-workers helping each other grow, empowering employees to own their growth and seeking feedback from others is vital.”

To the team, Sunner says: “The great entrepreneur is limited by their own ideas until they can find people who believe in them with great passion. YOU are the heart and soul, the breath of life that enables this business to be something more than an idea. YOU are the mechanism that makes the company what it is at today. For that, we are truly grateful.”

Durabuilt has rigorous safety standards from the office to the production floor.

“We are proud to be honoured with silver from the Canada’s Safest Employers Awards for the third consecutive year! This is one of the most prestigious awards in Canada, recognizing the manufacturing employers who have demonstrated their commitment to implement and practice higher safety standards,” Sunner smiles.

Durabuilt Windows & Doors cares passionately for its product, its ability to lead the way in innovation and technology, and its people. However, it always makes time to give back.

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Durabuilt Windows & Doors | Celebrating 30 years | 3

suppliers, customers, dignitaries and others who have helped the window and door manufacturer grow.

Today, despite never getting used to Edmonton’s weather, Sunner couldn’t be happier about coming to Canada and creating, with his father, family and team of employees, a company that would go on to give back tenfold in innovation, job creation, and to the community.

Harry Sunner and his father Joe Sunner are proud of the family business.

“We care about the community and encourage our employees to be active and visible through volunteerism and charitable activities,” Sunner explains. “The company’s humanitarian efforts can be felt throughout Western Canada and are often collaborative between corporate matching and staff donations.”

Some of the non-profit initiatives Durabuilt supports include: CASA Foundation, Mazankowski Alberta Heart Institute, Stollery Children’s Hospital Foundation, and many more.

Knowing the company did not achieve success on its own, Durabuilt celebrated 30 years with a two-day event that brought the team together with 400 industry leaders, company

Humbly, he admits, “This is no small feat, but we have successfully remained on Canada’s Best Managed Companies list since 2012. We owe this honour to our winning team of industry talents.”

Looking forward, it’s all about growth – not just for Durabuilt, but for manufacturing in Canada.

“We will be taking the business to the next level,” Sunner concludes. “Vertical integration will be our focus, bringing products on board to help add value to our current client portfolio. In alignment with this, there will be organic leadership growth while recognizing and inspiring the talent in our team.”

Through it all, the company’s foundation of innovation, resilience, forward-thinking and customer focus will never change.

To your continued success

10920 178th St NW, Edmonton, AB T5S 1R7 Tel: (780) 455-0440 | Fax: (780) 455-5775 | Toll Free: 1 (800) 544-3815 www.durabuiltwindows.com

Congratulations Durabuilt Windows & Doors on 30 years in business.

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Durabuilt Windows & Doors | Celebrating 30 years | 4

FROM VISION TO ENDURING LEGACY: Rago Millwork Celebrates 55 Years

By Nerissa McNaughton

R

ago Millwork and Supplies Ltd., a millwork and cabinet manufacturing company in Edmonton, opened in 1963.

“My father, Carmen Rago Sr., started the company 55 years ago,” explains Carmen Rago Jr., president. “As a young man coming to Canada from Italy at 15 years old, he had experience in a number of previous occupations.” While this experience included working as a tinsmith and in a flour mill, it was woodworking that he truly enjoyed.

The enterprising young man had plenty of ambition and a great work ethic, but that wasn’t enough to get his millwork company started.

“The challenge my father faced early on was the same as most companies experience at the startup of a new business – a lack of capital,” Carmen Jr. explains. “Back in the day, those challenges were real. A visit to the bank at 19 years old in the hopes of securing a loan was denied since the teen from Italy had no assets to secure against the loan.

“Through some investigation, my father came in contact with a lending agency who worked closely with a government body. This government body guaranteed the loan for my father. Suddenly he had some cash in his jeans. My father purchased a piece of land on 160 Street and 118 Avenue and built his first production shop on the west part of that land.

Carmen Rago Jr., president

Rago Millwork | Page 1 75

“After about five years of hard work and disciplined values, he had his loan paid off. That loan would prove to be the first and last loan in business.”

Carmen Sr. worked long hours and produced exceptional products. He saved his profits and bought the land adjoining his property, managing to expand his assets and operations without bank or lender assistance.

Carmen Jr. says with pride, “True craftsmanship was the key to success in those days, since the tooling and machines were very primitive in their development. In this small shop, solid wood doors, frames, windows, window sashes and furniture were the items Rago Millwork first produced.

“After a number of years in his first shop, my father had the need, desire and courage to expand his business. Through hard work, determination and the desire to succeed, Rago Millwork was poised for success. In the mid to late 70s, Rago expanded eastward into the buildings we currently occupy.”

The expanded production space also meant expanded product lines, including custom veneered panels, architectural millwork, solid wood moulding and trims.

Good old-fashioned hard work didn’t mean Carmen Sr. was against modernization. In the early 80s when CNC woodworking was in its infancy, Rago Millwork embraced

it, becoming one of the first companies in Edmonton to use this technology.

In the early 90s, Rago was awarded a near $2 million contract to complete millwork on Edmonton’s City Hall.

Another milestone came in 2000 when Rago expanded into America with a production facility in Phoenix, AZ. Carmen Jr. and his brother Rick grew up watching their father run the company. As the young men entered their teens, they spent their summers working in the family business.

“From being shop help on the production floor, picking up and delivering materials, to riding shotgun to the dump to shovel out shavings and sawdust from our old Chevy farm truck, we learned the business from the bottom up, earning a whopping $4.75-$6.00/hour,” Carmen Jr. reminisces.

“As you can imagine, quite a number of our long-tenured employees have known me and my brother since we were young kids. I remember a past employee teaching me how to drive a standard transmission truck over our lunch hour in our shop yard when I was 15 years of age. Apart from being employees of Rago Millwork, there exists a friendship.

When we run into these employees in our community, we always stop to talk and share a laugh. It’s a good feeling when these retired folks just find time to stop by the office to say hi. We see our work family as extended family.”

Manufacturers of fine quality millwork doors and paneling

Congratulations Rago Millwork & Supplies on 55 years!

1150 Sanford Street Winnipeg, Canada Phone: (204) 786-1411 • Fax: (204) 786-2634 www.dormonddoors.com

Rago Millwork | Page 2

Congratulations

Rago Millwork & Supplies on your 55th!

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Rago Millwork circa 1975

Rick would eventually relocate to Phoenix to run the American operation full time. Carmen Jr. remained in Edmonton, succeeded his father, and became the company president.

“If I were to describe Rago Millwork,” he says, “I would paraphrase something that a customer once said that always resonated well with me: ‘Rago Millwork is not the cheapest price on the block, however, the quality product and attention to detail is second to none.’”

He continues, “There are many contributing factors that play a part in our success. Our long-term relationships with

Rago Millwork circa 1975

our major suppliers were, and continue to be, contributors to our success and we thank them for that.

“One major factor is our employees. We were very fortunate to have experienced strong employee retention. As unheard of as this may sound, our most senior employee retired only four years ago with close to 50 years of service! Past that amazing tenure, we are proud to have experienced quite a number of core employees’ retention ranging anywhere between 10-35 years. I believe employee retention to the years I’ve described is paramount to our success, stability and ability to produce a quality millwork product. When I think back about the tenure of some our

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Rago Millwork | Page 3

longstanding employees, it’s a proud feeling that we must be doing something right.”

accountable to a number of people at the end of the day.”

He laughs, “No pressure, right?”

More than 50 years have passed since the teen from Italy started his company with little more than a vision backed by an outstanding work ethic. Time and processes have changed and automation is now a mainstay in the manufacturing industry; but for Carmen Jr., true craftsmanship will always require a personal touch that no amount of AI could provide.

He has also learned that as hard as entrepreneurs have to work, finding a balance is essential.

“Millwork production techniques and processes have changed so much over the years,” he admits. “The need for automation and efficiencies are major factors to future success. I feel in this industry however, that there still remains a custom element to our work that automation cannot fulfill. Hands-on craftsmanship is still a requirement of the work that we do. The relationship percentage of automation versus hands-on craftsmanship will vary from shop to shop. I feel that if we are able to continue and adjust our relationship percentage of automation versus hands-on craftsmanship as required, we will continue to succeed in years to come.”

Carmen Jr. learned many things from his father about millwork, but also about entrepreneurship.

“Owning your own business is not an easy task. It is hard work. Entrepreneurship means that your mind is still on the job on the weekends or on your days off. Entrepreneurship means that you have a personal responsibility to keep your staff employed and busy. Entrepreneurship means that when times are slow, you remain creative in house to keep your people busy, recognizing that they have families to feed and bills to pay too. Entrepreneurship means that you can share in both successes and losses.

“I understand at times there exists a need to put in extra time at work,” Carmen Jr. continues. “I think in most cases, families who do not have mom or dad at home on a Saturday because of work do understand. That understanding, however, is short lived if work is always calling late nights and every Saturday. I support and promote principled living and a healthy work/life balance over chasing the almighty dollar.”

The Rago family couldn’t be prouder to see Carmen Sr.’s dream continue to grow over the years, and to see the second generation taking the reigns and moving the company forward. Carmen Jr. and Rick thank their employees for their long years of dedicated service, and their suppliers that have always been incredibly supportive.

Carmen Jr. concludes, “I would also like to thank all of Rago Millwork’s past and current customers for their support and patronage through the years. I would like our past, current and future clients to know that we take a genuine interest in their millwork needs and we are excited to continue and to build new relationships with your group.”

As Rago Millwork is more than half a century strong, the future of the company looks just as inviting as it’s strong, foundational past.

16010 118 Ave NW Edmonton, AB T5V 1C6 Phone: 780-452-5340 jobs@ragomillwork.com

“It also means that your staff, of say 25 people, have 25 unique personalities and needs and they need to be recognized as such. Entrepreneurship means you are

Congratulations to the team at Rago Millwork & Supplies on 55 years!

We are proud to be supporting you and wish you continued success.

www.x5management.com Rago Millwork | Page 4

Congratulations Rago Millwork & Supplies on 55 years!

780.455.4101

780.454.6561

15435 131st Avenue NW www.richelieu.com/ca/en

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