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DIRECTORS EDUCATION PROGRAM

CANADA’S LEADING PROGRAM FOR DIRECTORS APPLY BEFORE OCTOBER 5, 2018 FOR THE NEXT EDMONTON OFFERING OF CANADA’S LEADING PROGRAM FOR DIRECTORS. “The ICD-Rotman DEP is valuable for both new and experienced directors. While highly relevant to members of a formal board of directors, the learnings and insights from the DEP also establish a framework for those serving on private company advisory boards. The questions posed, and the experiences shared by participants in the class elevated the learning, and the caliber of participants provided exceptional networking opportunities. It was a rewarding, challenging and enjoyable experience, and I recommend it to all board directors.” MARY CAMERON, ICD.D CHAIR, COUGAR DRILLING SOLUTIONS INC., EDMONTON GLOBAL ADVISORY BOARD CHAIR, SUREHIRE, VANDERWELL LUMBER DIRECTOR, EDMONTON INTERNATIONAL AIRPORTS, HABITAT FOR HUMANITY INTERNATIONAL

The Directors Education Program (DEP), jointly developed by the Institute of Corporate Directors and the University of Toronto’s Rotman School of Management, is offered nationally at Canada’s top business schools. Since the launch of the DEP, over 5,000 directors have completed the program, taking the first step towards acquiring their ICD.D designation. ATTAIN YOUR ICD.D AND BE MORE EFFECTIVE AS A DIRECTOR.

CONTACT THE ICD AND APPLY TODAY. 1.877.593.7741 x290 education@icd.ca icd.ca/DEP

MODULE I: December 10 -12, 2018 MODULE II: February 22- 24, 2019 MODULE III: April 8-10, 2019 MODULE IV: May 24- 26, 2019 APPLICATION DEADLINE: OCTOBER 5, 2018 In collaboration with:

Jointly developed by:

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 6 | Number 9

REGULAR COLUMNS

Putting the “PR” in Protest By Terry O’Flynn

10 12

CONTENTS COVER FEATURE

avid Tait takes to the D Skies with Flair The secret is out. Airfares can be affordable By Nerissa McNaughton

14 43 55

Olympic Elite at Odds with Alberta Values By Colin Craig

Property Taxes are a Major Pinch Point for Edmonton’s Small Business Owners By Amber Ruddy

It’s Important to Examine all Sides in the Energy Debate By Bill Ross

dmonton Chamber E of Commerce OMA Edmonton News B Fall 2018

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

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 6 | Number 9

THIS MONTH’S FEATURES

Adding Some RAM to Edmonton’s Downtown The new Royal Alberta Museum is set to inject new vitality into downtown Edmonton this fall. By Ben Freeland

CONTENTS COMPANY PROFILES

73 79 83

Can A Toxic Workplace Actually Kill You? A look at the real effects of stress and workplace toxicity on the body By Laura Bohnert

Master Mechanical

The Question of Ownership: Leasing and Owning Commercial Real Estate in Edmonton In commercial real estate, there is a major debate on whether businesses should own or lease. Four real estate experts break down when leasing or owning is right in Edmonton’s current climate. By Zachary Edwards

Celebrates 50 Years

Argus Machine Celebrates 60 Years

V aluemed

Celebrates 30 Years

Small Business Week: Paying Tribute to the Businesses that Inspire Our City By Laura Bohnert

New Projects, New Skills: The Changing Labour Needs of Alberta’s Oil & Gas As the oil and gas industry recovers, the in-demand jobs and skills are changing. Now, recruiters are tasked with finding unconventional people for a now famously volatile industry. By Zachary Edwards

When Succession Planning Meets Nepotism: Will Your Company Survive? By Laura Bohnert

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

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

PUTTING THE “PR” IN PROTEST // TERRY O’FLYNN

Putting the “PR” in Protest BY TERRY O’FLYNN, CHAIRMAN, ALBERTA ENTERPRISE GROUP

n 2016, members of Black Lives Matter briefly held up Toronto’s Pride Parade to protest police mistreatment of LGBTQ+ people of colour in the city and police presence at Pride. Earlier this year, anarchists protested gentrification in Hamilton by throwing rocks and eggs through the windows of small, locally-owned businesses. In Vancouver, three Edmonton residents were arrested after climbing a bridge to disrupt oil traffic, blocking all marine traffic in the process. Each of these events were met with scorn and derision, both online and in op-eds across the country, and led us to question the effectiveness and use of protests in a modern age. In many protests, collateral damage is severe. For Hamilton, small businesses run by locals lost time and money fixing up their vandalized storefronts. In Vancouver, marine traffic importing and exporting all manner of goods was disrupted. People’s livelihoods and wellbeing were challenged. Protestors may have brought attention to their causes, but lost a PR battle in the process. The modern protest can take many forms, from hashtag campaigns to outright violence in the streets. Some of these are effective in drawing attention to important issues, like the #MeToo movement. Others risk losing people’s support for not thoughtfully engaging in what is happening. In Hamilton, the only piece of communication was a sign that read “We are the Ungovernables.” Hardly helpful. The fact is that protestors can – and should – engage with institutions in a more positive way, be that petitions, letter writing campaigns, or town hall meetings. Protesters can also engage in legal, nonviolent protests like those seen at Toronto’s Pride Parade, which led to issues being heard and policies being changed moving forward. There is, after all, a big difference between holding up a parade for 15 minutes

WITH A STEP BACK AND A MORE THOUGHT OUT AND THOUGHTFUL PROCESS, PROTESTERS CAN – AND WILL – BE HEARD. versus threatening the livelihoods of regular, working class people through violence and property damage. Then we have the “anonymous” protestors that comfortably sit behind a computer screen and complain endlessly on social media – or worse, leave inaccurate reviews and misinformation online that harms businesses and reputations. How many times has a story been shared or gone viral, soliciting thousands of comments and calls for the boycott of a business, when the real story remains buried under the burning vitriol? Modern dissenters must learn that to be truly effective, they have to show up in person and engage in legal activities. Speak up all you want. It is a democracy, after all, but don’t hide behind a computer. Don’t damage the lives and livelihoods of others. Don’t be so careless as to damage the very cause you are protesting. Most of all, accept that because this is a democracy, the best both sides can hope for is middle ground. With a step back and a more thought out and thoughtful process, protesters can – and will – be heard. Continue to dangle from bridges and throw stones, however, and you will lose the PR battle before your cause gets the coverage you seek. Remember, it’s a protest, not a temper tantrum.

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

OLYMPIC ELITE AT ODDS WITH ALBERTA VALUES // COLIN CRAIG

Olympic Elite at Odds with Alberta Values BY COLIN CRAIG

f the Princess of Lichtenstein pops by Alberta for the 2026 Olympics, Albertans will be responsible for ensuring she has someone to carry her bags. You see, she’s not merely royalty in Lichtenstein; she’s also an elite member of the International Olympic Committee. As per the Olympics’ contract with host cities, she’ll be entitled to an assistant. Similarly, taxpayers will be responsible for providing Sir Austin Sealy, the Olympic rep from Barbados, with a driver if he decides to pop by Edmonton to take in an Olympic event. The requirement to provide over 100 Olympic dignitaries with assistants is just one example of how the Olympics have grown into an enormous, elitist event over the years – one that is at odds with the grassroots, common sense culture that is pervasive in Alberta. To be clear, it doesn’t matter whether you’re living in Calgary or Camrose, Edmonton or Edson, all Alberta taxpayers will be footing the bill for the Olympics through the billions of dollars that the Alberta government and the federal government will have to contribute. While some readers may have fond memories of the 1988 Olympics, everything has changed since the last time Calgary hosted the Olympics. Today, the Olympics have grown into an enormous, multi-billion dollar sports gala and there’s a lot on the line when it comes to deciding who gets the colossal event... just ask the people of Chicago. Last fall, Chicagoans learned their city may have lost its bid to host the 2016 Olympics due to Rio de Janeiro’s team allegedly bribing Olympic officials. The head of Rio’s bid was arrested last year after officials discovered 16 gold bars in his Swiss bank account and other evidence.

Calgary’s team would never offer a bribe, but what happens if another city does and we become the next Chicago? There goes $35 million. Spend a bit of time on Google and you’ll find many other stories of alleged Olympic bribes. Closer to home, the lavish lifestyle of the Olympic movement has also gripped the Canadian Olympic Committee. In 2015, the Canadian Olympic Committee spent more than $1 million just to celebrate the opening of their new office in Montreal. The same people spent $3 million on the facility’s new boardroom. Rightly so, one Canadian Olympic athlete decried the pharaoh-like largesse, noting many athletes are “living through difficult financial times.” In Calgary, proponents of an Olympic bid continue to argue that the Olympic movement has turned over a new leaf, yet, the evidence suggests otherwise. When the media asked how much the CEO of Calgary’s Olympic bid will receive, they were told her contract is confidential, even though she’ll be paid with tax dollars. In fact, Calgary’s Olympic bid is structured so that it could spend $35 million without taxpayer watchdog groups, as well as the media, being able to investigate what’s going on. Make no mistake; the Olympics are fun to watch on television, but we just can’t afford the large bill for the event. Our province is recovering from the recent recession, but we’re not out of the woods yet – trade friction with the U.S. is a real threat and lagging investor confidence is a significant problem. Even if we could afford an Olympic bid, it can’t be ignored that the Olympic elite are cut from a different cloth than the rest of us.

COLIN CRAIG IS THE ALBERTA DIRECTOR FOR THE CANADIAN TAXPAYERS FEDERATION.

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

SHARING YOUR VISION. BUILDING SUCCESS.

At PCL, we firmly believe that quality health plays an important role in the success of our company. Whether at work, or away from it, we recognize that health and wellness is needed for everyone to be able to build a successful career. We support our team in a number of healthy events throughout the year. Watch us build at PCL.com

PROPERTY TAXES ARE A MAJOR PINCH POINT // AMBER RUDDY

Property Taxes are a Major Pinch Point for Edmonton’s Small Business Owners BY AMBER RUDDY

roperty tax increases have small business owners seeing red.

According to new analysis by the Canadian Federation of Independent Business (CFIB), 45 per cent of business owners surveyed in Edmonton have considered moving their business due to high property tax rates. Does that mean every one of these business owners is packing up shop tomorrow? Absolutely not. What it does mean is that many small business owners are reflecting on whether the reward is worth the risk, and it leaves them wondering if governments actually respect the personal sacrifices made to create jobs and contribute to the economy. The City of Edmonton has been increasing spending faster than population and inflation growth. Out-of-control growth in the City’s operating budget leads to tax hikes, disproportionately on businesses, making it harder for small business owners to earn a living. During difficult economic times, small business owners want the municipal government to tighten their belts and have the grit to make tough choices. Small business owners are happy to pay their fair share, but business owners don’t believe the value of services received justifies what they pay in taxes. In fact, 79 per cent of small businesses owners disagree with the statement: “Over the past three years, the value-formoney in terms of municipal services I receive and municipal taxes/fees I pay has improved.” Furthermore, 77 per cent of entrepreneurs disagree that the City of Edmonton needs to increase in size (e.g. increase spending/taxes) to keep up with community growth. Business owners want the municipality to find efficiencies

THERE IS NO QUESTION THAT SMALL AND MEDIUM SIZED ENTERPRISES ARE THE ENGINE OF ALBERTA’S GROWTH. and savings, just like businesses do to remain competitive and stay afloat. The city is at the beginning of a four-year budgeting cycle, and now is the time to set priorities. Three things the City of Edmonton could do to ensure they spend within their means are: stick to core services (such as snow removal, building critical infrastructure, and road maintenance), contract services out to the private sector where possible, and implement a sustainable wage and benefits policy for public sector positions. Due to escalating costs being imposed onto businesses, a group of associations representing various parts of the business community called Prosperity Edmonton launched to encourage Council to hold the line. Prosperity Edmonton is offering solutions to boost competitiveness and small business’ confidence. There is no question that small and medium-sized enterprises are the engine of Alberta’s growth. They are the first to hire and the last to let go when it comes to creating private sector jobs. The more governments understand the challenges and hardships of small businesses, the more they can cater public policies to entrepreneurs and create vibrant prosperous cities. 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.

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

IT’S IMPORTANT TO EXAMINE ALL SIDES IN THE ENERGY DEBATE // BILL ROSS

It’s Important to Examine all Sides in the Energy Debate BY BILL ROSS

he debate about energy development, and protection of the environment, is not new but has recently become more polarized. Canada, and especially Alberta, is blessed with abundant natural resources and development of these resources has yielded great economic benefits, which is always pointed out by the energy sector. Environmentalists, however, say this poses a threat to the air we breathe and the land we live on. Therefore, they think development should be limited. Finding common ground between both sides of the debate involves connecting the dots. We must be aware that demand for cheap energy drives the planet’s consumption of just under 100 million barrels of oil a day, but we must also recognize that our energy resources are limited and the wealth they create must be reinvested in the future. This debate has come to the forefront in recent discussions about pipelines, but the public is largely misinformed about the pipeline issue. In fact, pipelines are the safest and most economical way of moving hydrocarbons to market. While hampering pipeline development will potentially slow the development of Alberta’s oil sands, it is unlikely to have any impact on global demand for oil. Here is the key. If we really want to lower our carbon emissions, our collective values must change. As consumers, we need to prefer products with a lower carbon footprint. This involves sacrifice (i.e., giving up our SUVs), or paying more for some energy services that come from renewable sources. The challenge for many people is that the environment does not become an issue until they are personally impacted. An excellent example?

Coastal communities that are now experiencing a rise in water levels. A pragmatic approach is to reinvest the wealth created by our energy industry, which, by the way, has a proven record in safety, good labour practices, and continuous improvement in reducing its environmental footprint. Norway’s Oil Fund was created with oil revenues invested for the future. This $1-trillion fund is about 20 times the size of Alberta’s Oil Fund and is often cited as a shining example of public policy directed at the future. However, the Norwegian oil industry is largely government-owned and it would be difficult to match such a scale in Canada. For Alberta, and Canada, we should set more modest goals. It is important for an energy fund built from revenues derived from the energy industry to have independent governance and not to fund other government programs. A carbon tax and, to a lesser extent cap-and-trade programs, are the most pragmatic ways to provide such revenues. However, the public needs assurance that the funds will be reinvested in long-term projects that benefit the environment. Today the primary constraint to investment is energy regulation, which has been upset by federal-provincial confrontation. The lack of firm regulatory policy has put off foreign investors, and Canada suffers from this. What we need is a coherent national policy, based on economic and environmental benefits that are long-term. This is what will ultimately benefit all Canadians and put us on the right track with the environment.

BILL ROSS IS A FORMER ENERGY INDUSTRY EXECUTIVE WHO LEADS VERCERTA, A CONSULTING PRACTICE THAT SPECIALIZES IN RISK MANAGEMENT ADVICE FOR ENGINEERING, ENERGY, AND TELECOMMUNICATIONS COMPANIES, AND FOR GOVERNMENT AND REGULATORY AGENCIES.

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

OFF

THE

Shaw Conference Centre Awarded as a Top Five Performing Venue in North America The International Association of Venue Managers (IAVM) was founded in 1924 and represents venues from around the globe. The organization has more than 5,000 active members, and its mission is to provide education and advocacy for professional public assembly venues worldwide. Recently, IAVM recognized Shaw Conference Centre with a Venue Excellence Award for being one of North America’s top five performing public assembly venues, making Shaw Conference Centre the first Canadian venue to receive this award since 2012 (when the honour went to Vancouver Convention Centre). Shaw Conference Centre was awarded the Venue Excellence Award this year alongside: the BOK Center (arena), Dr. Phillips Center for the Performing Arts, Intrust Bank Arena, and the Minneapolis Convention Center. The Venue Excellence Award is given to five IAVM venues that demonstrate excellence in operations, team building, professional development, safety and security, and service to the community. “This award is a testament to the world-class team we have in Edmonton that is committed to delivering a remarkable experience for our guests and community,” said Richard Wong, Shaw Conference Centre general manager. “As a mid-sized convention centre and a division of Edmonton Economic Development Corporation, we’ve proven that we can punch above our weight and compete with some of the world’s largest venues. We’ve done this by showing that a venue can be more than a facility. It can be an incubator for business and an important part of the cultural fabric of a community.” “IAVM members manage public venues all over the world, and we’re excited that the Shaw Conference Centre has proven to be one of the best. The professionals who manage the Centre are to be commended for this industry achievement, and Edmonton is fortunate to have a phenomenal asset that serves its citizens,” noted Brad Mayne, CVE, president and CEO, IAVM.

Earlier this year, Shaw Conference Centre was also recognized by Meetings Professional International, Edmonton Chapter as 2018 Venue of the Year. Another prestigious award was realized in 2008: the Human Rights Award for Excellence by the John Humphrey Centre for Peace and Human Rights. This year marks Shaw Conference Centre’s 35th anniversary. The facility is managed by Edmonton Economic Development Corporation and has a vision to be one of Canada’s top performing convention centres. The Centre notes, “Everything we do is dedicated towards pushing the limits of providing the very best experience an event planner or guest has ever had, anywhere. Our team of event experts is ready to create a REMARKABLE experience for you.” To learn more about IVAM, visit IVAM.org or follow @ IAVMWHQ on Twitter. To learn more about Shaw Conference Centre, visit shawconferencecentre.com online, @EdmontonSCC on Twitter, @ShawConferenceCentre on Facebook, and Shaw Conference Centre on Instagram, where you can share your memories using the hashtag #yegscc. Shaw Conference Centre also has a YouTube channel (www. youtube.com/user/ShawConferenceCentre). ABOVE: SHAW CONFERENCE CENTRE PHOTO SOURCE: SHAW CONFERENCE CENTRE

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

Negotiate Successfully by Relying on a REALTOR®

hether you’re buying or selling a house, the final step in the process always comes down to negotiating. There’s always give and take, and each side wants to feel like they got the best deal, which means it’s often a complex matter to navigate. One of the most important factors to consider is the market. There are three kinds of markets: a buyers’ market, sellers’ market or a balanced market. That, combined with whether you are buying or selling, will determine your strategy and power in the negotiation. Currently Edmonton is in a slight buyers’ market. For buyers, this means more properties to choose from and a stronger position for negotiating on prices. For sellers, this means they will need to be a bit more patient with the length of time it takes to sell, and they must also be prepared to negotiate more for the selling price. When it comes to negotiating, there is a fine balance of compromise that happens. Buying and selling a home is a very personal and emotional experience for many reasons. It can be off-putting to sellers if buyers start with a low-ball offer, especially if it doesn’t also align with the market, the value of the home, and how long the property has been on the market, etc. As much as buyers should have reasonable expectations, the sellers must also try to be open minded when they receive an offer, especially in the current market conditions. You are more likely to emerge from the process with a signed deal if you can compromise on the aspects of the offer that aren’t that important to you, and focus on your deal breakers. Trust in your REALTOR®, who will help remind you of the big picture and keep you on track.

Darcy Torhjelm, Chair, REALTORS® Association of Edmonton

The deal isn’t done until the day that the property changes hands. Once an offer has been accepted, there is typically a period where the buyers are going to be able to meet their conditions. If unknown issues come up in an inspection, condo document review, or something complicates the buyer’s financing, sometimes you end up back at the negotiating table. If all goes well and the conditions are removed, you can expect to see that sold sign going up on the front lawn. Ultimately, your REALTOR® is your confidential advisor through this entire process. Ask a lot of questions and take their advice in to consideration. After all, this is their job and area of expertise. It’s their responsibility to represent your best interests every step of the way. Your success is their success.

Moving Life Forward. Your next phase of life starts with a REALTOR®

ADDING SOME RAM TO EDMONTON’S DOWNTOWN // ARTS & CULTURE

ADDING SOME RAM TO

EDMONTON’S DOWNTOWN THE NEW ROYAL ALBERTA MUSEUM IS SET TO INJECT NEW VITALITY INTO DOWNTOWN EDMONTON THIS FALL.

BY BEN FREELAND

emember when Edmonton was all abuzz about downtown redevelopment? Two years since the grand opening of Rogers Place and ICE District and a subsequent lull in the previously breakneck metamorphosis of the city’s downtown core, it all feels like ancient history now. However, the story of Edmonton’s downtown transformation remains far from over, with many new projects on the horizon, near and far. In May 2018 the stillunder-construction Stantec Tower reached 54 storeys (197 meters), making it Edmonton’s tallest building, and upon completion at the end of 2018 it will be Canada’s third tallest building—and the tallest outside Toronto.

Much of this new wave of downtown construction in Edmonton, however, will be dominated by arts and culture. While more than a year still away from completion, the new Stanley Milner Library is currently one of the city’s most hotly anticipated projects. The $84.5 million renewal project, scheduled to open in early 2020, takes the form of a massive, visually spellbinding structure in the downtown core, complete with high-tech educational facilities and creative technologies, an additional 4,000 square feet of private study spaces and quiet reading areas (including over 1,000 square feet overlooking Churchill Square), and over 2,500 square feet of added community meeting space.

ABOVE: ROYAL ALBERTA MUSEUM PHOTO SOURCE: ROYAL ALBERTA MUSEUM

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

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

ADDING SOME RAM TO EDMONTONâ€™S DOWNTOWN // ARTS & CULTURE

Encor-LeadGeneration-MotionSensorAd-BiEdmCal.indd 1

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

ADDING SOME RAM TO EDMONTON’S DOWNTOWN // ARTS & CULTURE

However, Edmontonians looking forward to a fresh dose of culture and design will not have to wait until 2020 thanks to the fall 2018 opening of the new Royal Alberta Museum (RAM). “We’re excited to welcome our visitors into our new space and see them explore the new galleries, exhibits and building,” says Chris Robinson, executive director, Royal Alberta Museum. “Our staff have been working tirelessly for the last few years to create an engaging, exciting new space, and it will be so rewarding to have visitors coming through the doors once again.” While not yet open, the RAM has already garnered considerable media attention. Travel & Leisure Magazine included the museum in its “50 places to travel to in 2018” list, while the South African media network Safrica 24 included it as a “spot for trendy travellers to visit.” Closer to home, the Globe and Mail lauded the RAM as one of six projects reshaping downtown, while Architectural Digest recently included it in its listing of “the 15 most noteworthy museums opening this year.” Robinson asserts that the RAM will be a significant boon to tourism in the city and the region.

LEFT: ROYAL ALBERTA MUSEUM INTERIOR PHOTO SOURCE: ROYAL ALBERTA MUSEUM

“We’re looking forward to working with the tourism industry to find ways that the museum can help stimulate tourism activity, highlighting Edmonton and Alberta as an attractive cultural destination for visitors from our province and beyond. Now being located downtown opens up new opportunities for partnerships with surrounding attractions, as well as making us easier to reach by public transit,” he says. Together with Stantec Tower, the new RAM will give Edmonton a pair of number-ones-in-western-Canada. The new museum will, upon opening, become western Canada’s largest museum, with a total of 419,000 square footage (twice the size of the old Glenora location) and more than 82,000 square feet of exhibition space. The new museum will feature long-term natural and human history exhibition galleries, a children’s gallery, and bug gallery, as well as a large feature gallery at over 10,000 square feet, over 46,000 square feet of curatorial, research, and collection spaces. The building itself, designed by Edmonton-based architect Donna Clare with DIALOG Design, is something of a design marvel. In its pursuit of LEED Gold certification by LEED Canada, the building’s designers are projecting over 28 per cent energy cost savings and over 30 per cent potable water savings (facilitated by landscape species selection and a rain-garden designed to minimize irrigation needs), as well as a construction waste material diversion rate of over 75 per

8/13/18 2:15 PM

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

// ARTS & CULTURE

AT 31,000 FEET AND SITUATED ON THE MUSEUM’S UPPER LEVEL, THE NATURAL HISTORY HALL FEATURES LIFE-SIZE SKELETAL REPLICAS OF ICE AGE ANIMALS AS WELL AS THE RAM’S LONGSTANDING WILDLIFE DIORAMAS, AND A NEW COLLECTION FEATURING MORE THAN 1,400 GEMS AND MINERALS NATIVE TO ALBERTA. cent. The new building also boasts an innovative HVAC design that maximizes energy recovery while providing tight environmental controls for temperature and humidity in exhibit spaces. One of the most striking features of the building’s design (and a point of pride for architect Donna Clare) is the 7,000-square-foot Children’s Gallery, which juts out at the termination of 99 Street, which Clare describes as the “cultural street of our downtown.” While most of the museum had to be shielded from outside light due to the sensitive nature of the displays, the Children’s Gallery is notable for its large outside-facing windows allowing for ample natural light. The remainder of the museum is carefully illuminated by way of smaller windows intended to evoke flashes of sunlight through boreal foliage—a design also intended to evoke a sense of Albertan-ness. The building is also ringed with aspen trees, a quintessentially Albertan specimen. “The design has an engaging sense of place and responds to the unique aspect of this city and the province,” says Gillian Thomson of DIALOG. “It is a continuous narrative, a dialogue between inside and out, between the city, the building, and nature. There is a dynamic weaving of interior and exterior spaces. Nature is brought into the building through the gardens and roof terraces, and the building extends out into the landscape. It looks upward to the sky and out to the city beyond. It has an authentic Alberta sense of place that speaks to the aspirations of the museum.” The 30,000 square foot Human History Hall boasts 160 individual exhibits, with over 3,000 artifacts on display, tracing the province’s human history from the earliest Indigenous settlements to the diverse communities of today, with one gallery specifically dedicated to the province’s First Nations and Métis histories. At 31,000 feet and situated on the museum’s upper level, the Natural History Hall features life-size skeletal replicas of Ice Age animals as well as the RAM’s longstanding wildlife dioramas, and a new collection featuring more than 1,400 gems and minerals native to Alberta. The new Bug Gallery (an expanded version of the RAM’s long-popular Bug Room)

RIGHT: ROYAL ALBERTA MUSEUM INTERIOR PHOTO SOURCE: ROYAL ALBERTA MUSEUM

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

ADDING SOME RAM TO EDMONTON’S DOWNTOWN // ARTS & CULTURE

will house a large collection of insects, spiders, and other creepycrawlies from Alberta and beyond. The museum will also feature a gift shop, a café, an outdoor patio, a group arrivals area, and expansive outdoor gardens. An official opening day has yet to be announced, but a spokesperson for the RAM assures that a grand opening will take place in late 2018, and that the event will be oriented towards the general public rather than a private function. “We’re working hard to get exhibits installed, boxes moved, and bugs settled in their new homes for our opening later this year,” says Robinson. “We haven’t announced an opening date yet, but stay tuned for updates. We can’t wait to share it with you!”

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

DAVID TAIT TAKES TO THE SKIES WITH FLAIR // COVER

DAVID TAIT

takes to the skies

WITH FLAIR

THE SECRET IS OUT. AIRFARES CAN BE AFFORDABLE BY NERISSA MCNAUGHTON

irfares can be affordable. There. We said it. It’s no longer a secret. All those times you longed to go on vacation, visit friends and family, or commute cross-province for work can now be a reality. It sounds too good to be true, but it’s the honest truth. Flair Airlines, Canada’s best kept secret, has moved from Kelowna to Edmonton with the intent of bringing low fare flights to the Capital City–and of giving the world yet another reason to visit the place we call home. The man behind it all is executive chairman David Tait, a renegade businessman with decades of aviation management experience, which includes the launch of Virgin Atlantic Airways with Sir Richard Branson and having the Order of the British Empire pinned on his lapel by Queen Elizabeth II in recognition of his service to British aviation in the United States. But when Tait thinks about how it all began, he laughs, “It was by sheer mistake!” During the ’60s, Tait couldn’t go to university due to some unfortunate life circumstances, so he started his working life in the same company as his father. Soon after, he took to the road on a one-way ticket to visit a friend in Spain and inadvertently wound up working with a British airline. That

job led to a position with Britannia Airways, which had just launched in 1961 (and would become the country’s largest charter operator by 1972). During his travels, which included time with the iconic Wardair in Toronto, Tait had met airline entrepreneur and business magnate, Sir Frederick Alfred Laker - or plain Freddie to his friends. Freddie would later recruit Tait away from Wardair to become general manager for Laker Airways in Canada, and he stayed with the company until it closed its doors in 1982. From there, Tait joined AM&M, an airline consultancy in Miami, but Freddie soon tracked him down. “He told me he’d had a call from some rock and roll guy in the music business,” reminisces Tait. “He said, ‘he’s probably crazy, but when he asked if I knew anyone in the U.S. that could help him start an airline I gave him your name.’ Next thing I know, I’m on the phone with this Richard Branson guy and he wants to send me a ticket to come to London.” At that time, the Virgin Records brand was just another label and Branson wasn’t well known. The soon-to-be billionaire was living on a houseboat that doubled as his office. Branson was miffed over the consistently bad and overpriced service he experienced on transatlantic flights, so he felt that airline service was in need of an overhaul. So, naturally, he would simply overhaul it.

ABOVE: DAVID TAIT PHOTO SOURCE: FLAIR AIRLINES

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

DAVID TAIT TAKES TO THE SKIES WITH FLAIR // COVER

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

DAVID TAIT TAKES TO THE SKIES WITH FLAIR // COVER

“At first I thought he was certifiably insane,” says Tait dryly, “but I became captivated by his enthusiasm. I helped him craft the business plan for what would become Virgin Atlantic Airways and was one of its first employees.” As executive VP and executive director-North America, Tait has been credited by Branson among others for the success of the Virgin brand. Tait left Virgin Atlantic in 2001 and embarked on a series of new aviation adventures that, in 2005, led him to become senior vice president, customer service for Air Canada in Montreal, and it was here that he clued into a serious problem with Canadian airline service. “A gap existed in Canada,” says Tait. “WestJet had burst on the scene as a low-fare carrier but was slowly morphing into a clone of the mainstream airlines. Countless Canadians have stopped looking at air travel because they simply can’t afford it. Airfares in Canada are some of the highest in the world.” Tait thought back to what he saw in his mentors and colleagues, Freddie Laker and Richard Branson – that “can’t” was not a viable word, that a radical idea could change the world, and that if you saw something you didn’t like, you could go ahead and fix it. He wanted to be part of the solution so, earlier this year, when the chance came along he jumped at joining Flair. “You can put low fares out there. That is what Flair is all about,” says Tait. “Consistently putting out low fares and providing a way for you to pay for just the extras you value without having to pay for stuff you don’t want.” That said, Tait never wants the idea of low fares to be confused with cheap or value-lacking. He feels the consumer must have a paradigm shift when it comes to their options. “I don’t like the term ‘low cost.’ I prefer ‘low fare.’ One way we keep our costs low is by unbundling the old all-inclusive model into an à la cart model where people pay for only the things they value. Want a drink on board? Fine, you can pay for it. Don’t want to bring a checked bag? Then you don’t have to subsidize someone else’s, which is how the old socalled ‘free’ system used to work. “We are not trying to make money from bags. Our fee structure is designed to encourage customers to check a

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

TAIT THOUGHT BACK TO WHAT HE SAW IN HIS MENTORS AND COLLEAGUES, FREDDIE LAKER AND RICHARD BRANSON – THAT “CAN’T” WAS NOT A VIABLE WORD, THAT A RADICAL IDEA COULD CHANGE THE WORLD, AND THAT IF YOU SAW SOMETHING YOU DIDN’T LIKE, YOU COULD GO AHEAD AND FIX IT. bag rather than bring it into the cabin. By charging only for checked bags, other airlines have unwittingly created an incentive for everyone to try and bring as much as possible into the cabin. We’ve all seen the battles this causes when people try to jam giant ‘wheelies’ into overhead bins. We charge less for a checked bag than a carry on, which makes for faster boarding and deplaning and eliminates overhead turf wars. More baggage equals more weight, which means burning more fuel, which raises costs and in turn ticket prices. It’s really a very simple equation. “It’s all about the choices you value. The old airline model with lots of ‘free’ stuff was really like menu where you pay $50 for soup, salad, a main course and dessert. What if you just want the main course? You still have to pay for the whole thing and you wind up subsidizing the people that take the full meal deal.” He’s frustrated with the perception that low fares mean low service or cutting corners. The carrier is focused on listening intently to input from its customers and its people. One request from a passenger was to have energy drinks available for purchase on board. Flair added them in July. “Nobody else was doing it; so what better reason do we need?” he enthused. “When you meet someone in the arrivals level of an airport, the first question is usually, ‘How was the flight?’ ‘Fine’ is not a good enough answer to me. Right now, people’s

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DAVID TAIT TAKES TO THE SKIES WITH FLAIR // COVER

expectations aren’t high, and we want to change that. Our fliers are surprised that they are not being squeezed into the cabin like sardines because they paid a low fare. Our legroom is actually greater than most of the big airlines. We like to exceed expectations!” The validation, however, is when someone steps off a Flair aircraft, delighted with their experience, and shares it with others. In fact, at a recent social event, someone raved about how much she’d enjoyed a recent trip on Flair and urged Tait to try them. “Oh, really?” mused the executive chairman, before admitting that he worked for the airline. Earlier this year, Flair announced it was relocating its headquarters from Kelowna, B.C. to Edmonton and as such would become the city’s hometown airline.

“Kelowna was a great home when Flair was a small charter airline, but the airport and market are not big enough to support our planned expansion as a low fare airline. Edmonton International Airport has everything we need from an operational and labour standpoint. Here we can double or even triple our market over the next two or three years. It makes total sense to have our headquarters where the action is.” Tait says he has become “beguiled” with Edmonton and has been exploring it since joining Flair and starting the airline’s transition to the Capital City. “I had no idea the city had so many fabulous ravines. Flair has temporarily positioned itself as one of Canada’s ‘best kept secrets,’ and in that regard we seem to have a lot in common with Edmonton!”

PHOTO SOURCE: FLAIR AIRLINES

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

DAVID TAIT TAKES TO THE SKIES WITH FLAIR // COVER

Flair has actually been around for more than a decade, but it’s only been offering scheduled flights for a year. Regardless, thanks to aggressively low fares, comfortable cabins and outstanding service, the airline is a strong competitor in the aviation industry. Tait relies on his previous experience to keep Flair moving forward. “At Virgin Atlantic, for the first two years we had just one airplane that flew between Newark, New Jersey and London Gatwick. At Flair, we’re still tiny with just seven airplanes but one can really have fun leveraging ‘smallness.’ You can do things your competitors are not nimble enough or adventurous enough to do. I relish being the little guy on the big guys’ playing field. Believe me, when I was at that big airline in Montreal, with 12,000 flight attendants and crew, I saw how hard it was to change even relatively little things. “Freddie, who was every bit as big a renegade as Branson, really taught me how to see things differently and that’s what we’re doing with Flair. I learned that there is no such thing as a crazy idea. Don’t listen to the self-proclaimed industry experts. They will always find a reason not to do something. ‘Screw it, let’s do it’ – a line I gave him – sums up Branson’s view on life, and what I learned from him, was to look at any business from the outside in. How does your customer see you? He was tired of lousy airline service, so he created Virgin Atlantic. He was tired of signing up for long contracts for phone service, so he created contract-free Virgin Mobile. When some industry expert says it’s never going to happen because it’s never worked before, that’s usually the sign of an opportunity to do it just differently enough to make it work.” Another way Flair is making strong strides in the scheduled flight industry is by ensuring travellers with autism have a smoother travel experience. “Flair’s plans for autism-friendly travel will not just involve the airline, but also hotels near the airports,” explains Tait. “For autistic guests, this will involve practice boarding for the family. They can stay at the hotel at night and do a practice run: security, the boarding gate, in-flight announcements, deplaning, and maybe even a short flight.” Autism

Edmonton is working with Flair to set up the experience. “One in 56 children are born autistic,” says Tait. “This [autism-friendly travel plan] is needed and helps us give back to the community.” He’s a man that has spent decades building up some of the world’s most successful airlines, working shoulder to shoulder with titans of the airline industry, and he was personally honoured by the Queen – so when did he have time to also become a best-selling author? Being a writer was life-long dream of Tait’s, and like everything else in his life that he wanted, he simply went out and made it happen. In addition to eight years writing his weekly Tait on Travel column for Travel Industry Today, he has ghost-written several books, as well as one ‘in his own write’ on the Obama administration that became a Washington Post best seller. “Writing is my first love,” Tait admits. Another thing he likes to do? Grocery shopping. One of the least favourite household chores is one of this enigma’s happy places. Airline executive. Writer. Father-of-five. Grocery shopper. It’s a full life and Tait loves it; and he can’t wait to see Flair change Canada’s notions of air travel. “I want to see Flair get bigger and better. I really want to see Flair change the nature of aviation in Canada. The traditional thinking is that Canada can’t support a third airline and that’s true if you look at the old model. We don’t see ourselves as just ‘another airline’. We’re an alternative means of travel. We’re not here to steal market share (although we probably will). We are here to get Canadians out of their cars and off their couches. Check us out. You’ll find you can get to where you need to go. Haven’t thought about flying? Think about it now.” Tait has a plane to catch. He’s been busy going between B.C. and Alberta moving the airline. As he settles into his new home in the Capital City, he’s more than ready for his next adventure in life, and thanks to the low fares on Flair’s roomy airplanes, he’s happy to help Canadians have more adventures, too.

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

CAN A TOXIC WORKPLACE ACTUALLY KILL YOU? // CORPORATE HEALTH & WELLNESS

CAN A TOXIC WORKPLACE ACTUALLY KILL YOU?

A LOOK AT THE REAL EFFECTS OF STRESS AND WORKPLACE TOXICITY ON THE BODY BY LAURA BOHNERT

n a scale of one to 10, rate how stressed you feel right now. Chances are, that number isn’t going to rank on the low side. According to the Standards Council of Canada, one in four Canadian workers report being highly stressed. The Coalition of Ontario Psychiatrists further suggests that 40 per cent of Canadians suffer from workplace stress, and a study featured on Global News reports that 58 per cent of Canadians feel overworked, with stress being the reason one in four Canadians quit their jobs. Stress, however, doesn’t just play a role in whether or not an employee decides to stay at a workplace; statistics show that the impact stress has on the workplace is actually much more significant. The latest Willis Towers Watson Staying@

Work Survey reports that 85 per cent of Canadian employers (compared to 75 per cent of American employers and 64 per cent of global employers) rank stress as a top risk factor in their workforces. A report by Guarding Minds confirms that absenteeism, productivity, employee retention, and even the frequency of workplace incidents are all impacted by stress, with stress causing 19 per cent of repeated workplace absences, 30 per cent of short-term and long-term disability costs, 60 per cent of workplace accidents, 40 per cent of employee turnover, 55 per cent of Employee Assistance Plan costs, and 10 per cent of drug plan costs. In other words, workplace stress is costly to employers as well as to employees, and as Statistics Canada reveals, those costs can add up—to an approximate $20 billion out of employers’ pockets.

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

CAN A TOXIC WORKPLACE ACTUALLY KILL YOU? // CORPORATE HEALTH & WELLNESS

“FROM WHAT WE HAVE SEEN IN THE LITERATURE, THE BIG HEALTH IMPLICATIONS OF THAT STRESS INCLUDE HEART DISEASE AND HEART ATTACK, INCREASED BLOOD PRESSURE AND STROKE, THE SUPPRESSION OF THE IMMUNE SYSTEM, MENTAL HEALTH IMPACTS SUCH AS DEPRESSION, AND EVEN SKIN CONDITIONS. CHRONIC STRESS OVER THE LONG TERM DEFINITELY COULD CREATE SEVERE HEALTH ISSUES THAT COULD EVENTUALLY LEAD TO FATALITY.” ~ DR. KAREN MACNEILL Financial costs aside, though, workplace stress poses a far more significant risk. According to registered psychologist Dr. Karen MacNeill, psychologist at Copeman Healthcare Centre, the high stress that results from a toxic workplace could technically kill you.

“The challenge with a toxic workplace is the chronic level of stress,” Dr. MacNeill explains. “From what we have seen in the literature, the big health implications of that stress include heart disease and heart attack, increased blood pressure and stroke, the suppression of the immune system, mental health impacts such as depression, and even skin conditions. Chronic stress over the long term definitely could create severe health issues that could eventually lead to fatality.” “It’s helpful to understand how stress impacts the whole system,” she adds. “The physical long-term effects of stress typically present symptoms or early warning signs that include headaches, aches and pains, dizziness, nausea, and getting sick. However, stress also impacts the mental, behavioural, and emotional systems, too. Symptoms of mental impacts include memory problems, an inability to concentrate, feeling anxious, experiencing racing thoughts, and chronic worry. Behaviourally, you could experience over- or under-eating, sleeping too much or too little, resorting to alcohol or isolation and avoidance tactics (like avoiding calls or emails) as a

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

eyesafe CAN

CUT WORKPLACE SAFETY COSTS

40-60%

result of the idea that you just need to get away from the stimulus that is causing you stress. Emotional symptoms of stress include irritability, feeling overwhelmed, an inability to react, loneliness and depression.” However, the fact that stress can have such negative consequences doesn’t necessarily mean we need to avoid stress altogether. “Not all stress is bad,” Dr. MacNeill points out. “In small doses, stress can motivate us; it can help us perform and can enhance our ability to unlock our optimum performance potential. We call this eustress: minimal bouts of positive stress that pass quickly, helping us to perform, engage and do well. Another form of stress is acute stress: stress that is produced by an imbalance between perceived demand and perceived resources. Acute stress makes us feel threatened and appears when we face demands or pressures from past or upcoming work (such as the need to meet a target or deadline). Acute stress is a normal part of life; it passes when we get a reprieve or a chance to recover.

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“The issue is with chronic stress: the stress that stays all the time with no reprieve and no way out.” ABOVE: DR. KAREN MACNEILL, PHD R PSYCH, PSYCHOLOGIST, COPEMAN HEALTH CENTRE.

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

CAN A TOXIC WORKPLACE ACTUALLY KILL YOU? // CORPORATE HEALTH & WELLNESS

Susan Sawatzky, B. Ed, CRSP, certified mental health advisor, director of In-Scope Solutions and instructor for the University of Alberta course Psychological Health and Safety, refers to that negative, chronic stress as distress. “It is this long-term, negative stress that causes health concerns because it is the stress our bodies were not designed to overcome,” Sawatzky explains. “The issue comes about when we experience long-term stress, stress in which we are constantly thinking about situations we do not feel we have the resources to overcome. This negative stress leaves us feeling overwhelmed and immobilized. “A good way to think of it is through evolutionary psychology. Stress was designed to help our ancestors fight off a threat or run from it. The stress responses were meant to be short term, with our bodies returning back to normal in a relatively short amount of time. Modern day stress, however, causes us to

think about negative past situations or worry about upcoming situations. It is the stress in our minds that has us constantly feeling the stress response. This ‘modern day stress’ is counter to what our bodies were designed to do and is why we suffer in terms of health and wellness.” There are a number of factors that could be causing high levels of chronic stress in our workplaces. Sawatzky cites the five key factors listed by Guarding Minds: high work demands, low levels of control and influence, few or no employee rewards, a sense of unfairness, and a lack of managerial or organizational supports. “High work demands relate to workload and time requirements: how much mental and physical energy must be put in? Are the workload demands achievable or do they feel overwhelming? Overwhelming work demands leave employees feeling stressed and exhausted.

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

HIGH PERFORMANCE RECOVERY FOR BUSINESS LEADERS Dr. Karen MacNeill

o reach high levels of performance in any domain – including business – effective recovery practices are essential.

As Loehr and Swartz (2001) stated in an article entitled The Corporate Athlete, “The real enemy of high performance is not stress, it is actually stimulus for growth. Rather, the problem is the absence of disciplined, intermittent recovery. Chronic stress without recovery depletes energy reserves, leads to burnout and breakdown, and ultimately undermines performance.” Dr. Greg Wells (2017) echoes this concern and points to four interrelated global epidemics: inactivity, obesity, sleeplessness, and mental illness. To combat these epidemics and maximize your performance, there are four “Pillars of Recovery” that you should incorporate into your daily routine: move often, eat for energy, sleep, and think clearly.

Pillar #1: Move Often

The Canadian exercise guidelines for adults recommends 2.5 hours of moderate activity per week, which should include two strength training sessions. This works out to roughly 30 minutes per day of physical activity. The best approach is to incorporate exercise into your daily routine, such as by parking further away from the office or getting off the bus one stop early and walking vigorously the rest of the way. Two good rules of thumb are to move every 45 to 60 minutes and to find an activity that you enjoy – if you like doing it, you’re more likely to do it often.

Pillar #2: Eat for Energy

If you want to think clearly, stay focused and meet your deadlines, you need to fuel appropriately with brain-boosting foods. Start with well-balanced meals; fill half of your plate with fruits and vegetables and divide the other half between lean protein and whole grains. Remember to eat in the morning to kick-start your metabolism, and then again every four hours to keep your energy sustained. Include brain-boosting foods such as omega 3s for memory and cognition, antioxidant-rich foods to protect you from cell damage, and protein in the morning to promote alertness. For maximum mental performance and physical coordination, stay hydrated throughout the day as well; we recommend approximately 12 cups of fluids for women and 15 cups for men per day, half of which should be water.

Senior Director of Business Development, Rick Tiedemann explains to new clients how taking care of your health will help you excel in the workplace.

Pillar #3: Sleep

Studies have shown that almost 20 per cent of us are chronically sleep deprived. This lack of sleep impairs our ability to function and has a detrimental effect on our health. For maximum recovery and subsequent performance, it’s recommended that you sleep seven to eight hours per night. Keep your bedroom cool and dark. Develop – and stick to – a consistent pre-sleep routine that will signal your body that it’s time to sleep, no matter where you are. Make sure your routine doesn’t include any screen time in the hour before bed; the blue light from screens strips melatonin, a hormone that helps control your sleep and wake cycles.

Pillar #4: Think Clearly

Today’s leaders face information overload, constant pressure and busy, distracting environments. All the while, you’re expected to be “on” at all times. If you want any chance of keeping up, it’s important to train your mind to be present, focused and attentive through regular mindfulness practices. Studies have shown that just 8 to 20 minutes of mindfulness training each day can help improve your sleep, focus, and ability to work efficiently. People who practice mindfulness have also been shown to have less cognitive rigidity, meaning it’s easier for them to come up with creative ideas and solutions than non-meditators. Mindfulness has worked for Olympic athletes, Navy SEALs, and Samurai warriors, and it may do wonders for you as well. Now that you know how important recovery is to performance, start incorporating these pillars into your own routines. Start by focusing on just one, and then work your way through the others to become the best version of yourself! If you would like to learn more about how you can implement a Leadership Wellbeing Program, please contact Rick Tiedemann at 587-402-1286.

CAN A TOXIC WORKPLACE ACTUALLY KILL YOU? // CORPORATE HEALTH & WELLNESS

“ARE THE WORKERS ABLE TO CONTROL HOW WORK IS DONE, TIMELINES, PROCESSES FOR WORK, ETC.? CAN THEY NEGOTIATE THESE OR INTRODUCE ALTERNATE WAYS TO ACCOMPLISH WORK OBJECTIVES? DO THEY HAVE CONTROL OVER THEIR TIME THROUGH FLEX TIME OPTIONS OR TIME IN LIEU?” ~ SUSAN SAWATZKY

“Are the workers able to control how work is done, timelines, processes for work, etc.? Can they negotiate these or introduce alternate ways to accomplish work objectives? Do they have control over their time through flex time options or time in lieu?” “Rewards refer to more than just compensation and benefits,” she adds. “They also include recognition for work and seeing how their work relates to the overall goals of the company. In other words, can they see purpose in their work and how it relates to the overall company achievements? “Fairness can incorporate a number of factors. Do they feel that decisions made within the company are done in a fair manner? Do they feel fairly treated in terms of compensation for work? Do they feel that their workload is equivalent to that of other similar employees? Unfairness strikes a chord with people and leaves them feeling anxious and stressed. “Support in a work environment includes a number of factors, including support from the organization in terms of resources, leadership, defined work responsibilities, and support from supervisors and coworkers.” Sawatzky points to one of the key findings in the Willis Towers Watson report

to observe that, while both employers and employees agreed that “inadequate staffing and the resulting uneven workload and lack of support [are] major contributors of stress,” there is often “a disconnect between employers and employees in terms of what causes stress.” She further cites from the report that, “To address workplace stress, employers first need to understand its root causes. Those who base their efforts on misguided assumptions risk addressing the wrong problems and alienating employees.” One important thing to note is that the impacts of stress aren’t going unnoticed—especially now that statistics have indicated the high costs of a toxic workplace, both physically on the employee as well as financially on the employer. “We are beginning to understand that people are one of the biggest assets within the workplace,” Dr. MacNeill concludes. “We need to take care of them, not just because it’s the right thing, but because doing so can help the business thrive. Stress isn’t an HR issue anymore, it’s a business issue. Improving the culture of the business helps to make each individual their best. It’s a pebble in a pond with a lasting ripple effect. When you take care of the people, you are taking care of the business.”

ABOVE: SUSAN SAWATZKY, B. ED, CRSP, CERTIFIED MENTAL HEALTH ADVISOR, DIRECTOR OF IN-SCOPE SOLUTIONS AND INSTRUCTOR FOR THE UNIVERSITY OF ALBERTA’S COURSE PSYCHOLOGICAL HEALTH AND SAFETY.

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

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THE QUESTION OF OWNERSHIP // REAL ESTATE

THE QUESTION OF OWNERSHIP:

LEASING AND OWNING COMMERCIAL REAL ESTATE IN EDMONTON IN COMMERCIAL REAL ESTATE, THERE IS A MAJOR DEBATE ON WHETHER BUSINESSES SHOULD OWN OR LEASE. FOUR REAL ESTATE EXPERTS BREAK DOWN WHEN LEASING OR OWNING IS RIGHT IN EDMONTON’S CURRENT CLIMATE.

BY ZACHARY EDWARDS

ne of the most important decisions a business needs to make is deciding where to operate. The decision is multifaceted, one that requires balancing multiple pros and cons. Do you have your office downtown, for example, where rates may be higher but it’s better for your business? Does your industrial operation need to be close to the airport or research park? What sorts of requirements are needed for the space? These are all important considerations, but the most financially significant one is around owning or leasing your commercial property. According to Mark Anderson, associate vice president of office leasing and sales with CBRE, many business owners need to consider the major differences between owning their home and owning their commercial property. “The notion of purchasing versus leasing is somewhat predicated on the residential model, which is that you want to own your house,” says Anderson. “Many people write out that rent cheque every month and think to themselves ‘I could be paying down a mortgage with this.’” This perspective is especially prevalent in the office space sector, where owning the property may not be a better investment compared to investing that capital elsewhere. “Businesses have the opportunity to invest their capital in so many different ways, so tying it up in real estate sometimes doesn’t make sense,” Anderson points out. “With a lease, you’re buying flexibility and agility in your business. You’re buying the ability to not have millions of dollars of operating capital tied up in real estate.”

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

THE QUESTION OF OWNERSHIP // REAL ESTATE

Kelly Gibbon, director and associate at Royal Park Realty’s office in Nisku, agrees. “In general, if you are going to get a return on buying the building, you will want that return to be higher than other investments with respect to your business,” he says. “If you can take some money and put that back into your business for a high return, it doesn’t make sense to wrap that capital up in a real estate investment.” That said, Anderson points to many different situations where owning office space does make sense, including smaller companies and NGOs where the real estate investment can be a reliable source of value and income. “Owning makes the most sense for tenants with very stable or no growth, like a sole practitioner of a law office, or a doctor,” he says. “If they aren’t looking to aggressively grow, you can work the same operation out of the same space for 30 years. In that instance, it would make sense for them to purchase office space.” There are a few other distinct advantages to owning versus leasing that can help companies diversify and grow at a steady rate. “When you own a property, you are paying down your mortgage every month. There’s a price adjustment index going up; so, a value escalation,” explains Joel Wolski, director and associate with Royal Park Realty. “Let’s say you outgrow that space. Well, you can lease it out to another business or you can sell it and leapfrog into the next property.” The other major assumption about commercial space is supply, which is also very different from the residential markets. “People are used to seeing a thousand homes for sale across Edmonton, but when you look at commercial properties currently for sale within any given size range, you may be looking at only four or five options,” Anderson says. “This is because owning and leasing commercial real estate is a very competitive business. Demand for these properties is high and supply is low. This leads to a ripple effect that drives prices up and makes it less feasible for businesses to own their own property.” Ever since the economic downturn, Edmonton’s office vacancy rate has been higher. As a result, many new industries are moving in and taking advantage of the lower rates. While Edmonton’s downtown has been getting most of the attention, the outlying areas have also been seeing an uptick in activity. “We’ve been noticing some new industrial groups coming to town,” says Wolski.

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

THE QUESTION OF OWNERSHIP // REAL ESTATE

“They’ve been watching Alberta and have seen that our economy is turning around, so they are taking positions in Nisku and Fort Saskatchewan and the Heartland. They’re acquiring land and building new facilities.” According to Chad Snow, president of NAI Commercial Real Estate Inc., two specific industries are taking advantage of the rates and space afforded in Edmonton’s commercial real estate space. “In the last 12 months, there has been a lot of activity connected with the legalization of cannabis and the new blockchain industry seeking sites with high power.”

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THE QUESTION OF OWNERSHIP // REAL ESTATE

The cannabis industry in particular has committed a large amount of resources to the Greater Edmonton Area. “You have a significant amount of real estate in Edmonton, including quite a bit of new builds, being taken up by the cannabis industry,” says Gibbon. “Most notably, Aurora Cannabis is building close to a million square feet near the airport. Three years ago, there’s no way that would have happened. It’s a very different building from what we see here traditionally. It’s a game changer.” In the tech sector, lower lease prices have let companies grow at unprecedented rates. “The shift in the Edmonton office market can be compared to a forest fire. The fire being the pain, and vacancy as a result of a softened energy sector has left room for new growth in other areas, especially in the tech sector,” Anderson notes. “We are seeing businesses from many different sectors grow and expand at accelerated rates in large part due to increased vacancy in the Edmonton office market.” Landlords and commercial property owners have been adapting their properties to attract new business, which means many commercial spaces are offering perks and amenities previously uncommon in Edmonton’s commercial property landscape. “Quality of life is really important to employers now,” says Wolski. “They understand that attracting and retaining talent is much more profitable than cycling through staff on a regular basis.” In the office sector especially, new and innovative amenities are helping landlords bring new clients and industries to the city. “New companies are looking for office spaces that fit their corporate culture. They are using the space differently and trying to attract the best talent,” says Anderson. “Part of that is through image and the amenities that you are able to provide. Forward-thinking landlords are putting in amenities like gym facilities, secure bike storage and other things that can help their tenants attract the best talent.” Edmonton’s high vacancy rates and new, growing industries are changing commercial real estate both downtown and on the outskirts. With new demands on the spaces, the question of whether to lease or own has also changed. Ultimately, it is up to the business to decide which route helps them grow at the best rate, whether that is investing in their own space or using that capital to expand their business.

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

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 President, Impact Consulting 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

Chamber Executive

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

Unlocking Canada’s Potential Through a Northern Utility Corridor By Brent Francis, Director, Advocacy and Outreach

rom the beginning, Canada’s growth and development has been interwoven with major infrastructure projects including trans-continental railways and highways. Now, the Edmonton Chamber is advocating a bold plan that would link Canada from coast to coast to coast. Establishing a Northern Transportation Utility Corridor (TUC) would support Canada’s long-term economic development and strategic trade interests and bring a host of benefits for business, Northern residents and all Canadians. What is a Transportation Utility Corridor (TUC)? A transportation utility corridor is a pre-approved right-of-way dedicated to accommodating multiple modes of infrastructure including roads, rail, pipelines, and electrical transmission and communication lines. The idea for a Northern TUC was first discussed in the 1960s and is gaining new and growing support. The University of Calgary’s School of Public Policy released a study in 2016 proposing a 7000km long corridor linking tidewater at key points across the country: Western Canada (Prince Rupert), Hudson Bay (Churchill), the North (Mackenzie River basin), Québec (Saint Lawrence Seaway) and northern Labrador. Why now? A Northern TUC would expedite and accelerate the construction of major projects, including pipelines. As the University of Calgary put it, “The Northern Corridor is a practical and focused response to the need for government to do what government should do in terms of infrastructure—create the environment in which private investment, properly regulated, can be applied to projects without intransigent ‘one-off’ regulatory processes for a new right of way for each project.” In June 2017, the Canadian Senate published a report supporting further research and echoing the University of Calgary in highlighting the significant challenges Canada faces in optimizing trade opportunities and long-term economic development including:

Ian Morris Director, Organizational Excellence Edmonton Chamber of Commerce

• Limited access to tidewater to export goods.

Contact

• A lack of ports and routes in Canada’s north.

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

• Regulatory approval processes that are a significant impediment to development, particularly for large projects that cross provincial boundaries. Building a Northern infrastructure corridor would address these challenges and have numerous benefits. BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2018

It could: • Complement existing southern TUCs and lessen congestion in southern transportation routes. • Significantly improve access for minerals, oil and gas, agriculture and forest products. • Enhance regional development in the North. • Mitigate environmental impacts by keeping development in a contained and monitored area. Why does the Chamber support the Northern TUC? The Edmonton Chamber of Commerce has longestablished connections with the North and the Edmonton Metropolitan Region is well-positioned to benefit from the Northern TUC. Expanding northern partnerships is one of the Edmonton Chamber’s strategic priorities. We have been working to connect members with northern opportunities both through our own initiatives and through the Edmonton Northern Partnership, which brings together the City of Edmonton, Edmonton Economic Development Corporation, Edmonton International Airport, the University of Alberta and the Edmonton Chamber to build and strengthen committed relationship between our region and northern communities. We are long-term partners with Chambers in the North. We have supported a northernfocused conference for six decades—since 1957. Opportunities North is now held annually, in partnership with the Yukon, Northwest Territories and Edmonton Chambers of Commerce. This year, the conference will be

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

held in Whitehorse from October 23 to 25. The theme is “Disruption”—imagine how positively disruptive the Northern TUC would be. In addition to improving the movement of goods and market access for Canadian products, the Northern TUC could significantly benefit Canadians living in the North. By improving the transportation of goods from southern provinces to northern territories, the Northern TUC would lower the cost of living in the North. It would also provide new business and employment opportunities, and could allow northern communities to access higher-efficiency and more cost-effective electricity grids in neighboring provinces. The Edmonton Chamber of Commerce has recommended that the federal government fund further research into a Northern TUC. Once this research is complete, the federal government should coordinate and secure the appropriate rights-of-way to enable an integrated, national TUC network in consultation with provinces, territories, municipalities, Indigenous communities, landowners, and businesses. By supporting this project, the federal government can help secure long-term prosperity for all Canadians. The Edmonton Chamber would like to hear from you. Would the establishment of a Northern TUC benefit your business? Please share your thoughts and ideas with us. Contact us by email: policy@edmontonchamber.com or call us at 780.409.2618.

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Peace Power Corporation Member profile Chad Mielke, Founder & CEO www.peacepower.ca Peace Power is a wholly-owned and operated Albertan electricity and natural gas retailer servicing residential, agricultural, small business, large commercial and industrial consumers throughout the province. What’s your story? I always wanted to run my own business, and so 6 years ago, after stumbling on the energy retail business model, I started Peace Power in Grande Prairie. It was the scariest thing I’ve ever done! At the time, I was a practicing civil engineer and had just been offered a partnership in the company I was working for. Everyone thought I was crazy, and when I look back now, maybe I was—who knows?! But I haven’t regretted my decision for a moment. I was my own first customer, getting my home electricity bill through Peace Power, and let me tell you, those early months were tough! I had to dig deep to find the courage to keep going in those early days; to keep having conversations with new people and build credibility. I feel a huge debt of gratitude to my earliest customers and to Grande Prairie in general— an incredible place to start a business. In 2015, we started retailing natural gas, as well as allowing people to “green” their power. In 2017, we brought on solar installations. In the very near future, we’ll be providing a valueadd app to our customers aimed at allowing them to gain energy efficiencies, complete with their personal or business’ energy consumption built-in and updated each month. Building Peace Power was always going to be a long game, but I’ve loved every minute of it, and am now proud to say that we have customers in over 150 municipalities throughout the province. What are people often surprised to learn about your business? 1. Anyone can be a customer! Many Albertans (statistically about 20%) don’t realize they have a choice in who they get their residential or business power and gas from.

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

Chad Mielke, Founder & CEO of Peace Power Corporation

2. Peace Power is a proud B Corp! We were Edmonton’s third B Corp, getting our certification in 2016, and are one of 8 local B Corps actively trying to grow the certification in the community. 3. Since we started up in 2012, we’ve beat the big guys on price, and are proud that every facet of our business is conducted by people right here in Alberta. What has been your biggest challenge in the last 12 months? From a business perspective, when you start finding success, you can become a target for others in your industry. We’ve had some old relationships go sour, which has been very disappointing. From a personal perspective, it’s been finding work-life balance. I now go for a one-hour walk or run every day, without my phone, which has done wonders for my soul!

What do you think is the biggest issue impacting Edmonton’s small businesses at this time? Taxes and other rising costs imposed by government. I think it’s so easy for the government to dip their hand into the pockets of business owners that they forget it’s the businesses that keep the economy running. I think they may forget at times how much they can hurt smaller businesses in doing this because they operate under the assumption that all businesses can afford it. What’s your secret to keeping your team engaged? For me it’s communication. Good communication leads to known expectations on both sides of the equation. When everyone understands the game-plan and are committed to it going forward, good things happen. Do you have a personal mantra? Be bold, be sincere. As a loyal Chamber Member, what have your impressions been? It’s an incredible organization and I love what it does for the business community. However, like so many things in life, you get out what you put in. Peace Power has been very active in getting involved with the Chamber and it has done great things for us.

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? We need to let the world know that Edmonton, and Alberta, is open for business. The message we’ve been sending lately is that we’re not. It’s a scary time right now for lots of existing business owners, let alone Edmontonians looking to start a new venture. What is your favorite thing to do in Edmonton? I’m a proud Oilers fan and season seat holder. My wife and I love going to Oilers games and taking in the atmosphere. Apple or android? Apple. But for phone only. I love my PC. Your most favorite place in the world? Tough one. I’d have to say Saskatchewan. My Mom was born and raised there, and my Dad grew up right on the AB/SK border, so we have lots of family there. It’s such a beautiful province with amazing lakes, and people from Saskatchewan are just genuine, good people. Whenever I cross the border, life seems to slow down and I feel more at ease. Coffee or tea? Coffee with lots of 18% cream—full cream baby! To learn more about Peace Power, please visit www.peacepower.ca

Members in this Issue DIALOG in Adding Some RAM to Edmonton’s Downtown on page 18 Copeman Healthcare in Can A Toxic Workplace Actually Kill You? on page 31 CBRE Ltd., Royal Park Realty (2010) Corporation and NAI Commerical Real Estate in The Question of Ownership: Leasing and Owning Commercial Real Estate in Edmonton on page 38 BDC in Small Business Week: Paying Tribute to the Businesses that Inspire Our City on page 51 Staff Bureau Employment Services in New Projects, New Skills: The Changing Labour Needs of Alberta’s Oil & Gas on page 63

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

Connecting Business Pancakes! Breakfast & Business with Business Link Members of our team were pleased to volunteer at Business Link’s pancake breakfast to kick-off K-Days Friday, July 20, 2018. The rain didn’t stop guests from coming out to enjoy a business breakfast and to bring donations for Suit Yourself.

Business Link’s event brought together a great team of volunteers from ATB Financial, Alberta Women Entrepreneurs, AMA Kingsway, Suit Yourself, BDC and the Edmonton Chamber of Commerce. Photo via @BusinessLinkAB on Twitter.

Hearty hot cakes proved to be a great and tasty way to start the day and mark the beginning of K-Days 2018.

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

Attendees enjoyed an impressive spread of pancakes, sausage and fresh fruit—along with a healthy serving of networking. Photo via @BusinessLinkAB on Twitter.

Connecting Business Family Night at the Zoo Presented by Alberta Blue Cross 500 Chamber members of all ages joined us at the Edmonton Valley Zoo for an evening of member appreciation and “wild” amounts of fun on Thursday, July 26, 2018, during Family Night at the Zoo.

Chamber members who attended Family Night at the Zoo enjoyed exclusive access to all of the zoo’s animal exhibits.

Young at heart event attendees cherished the opportunity to meet with a few of the zoo’s 350 residents.

Guests took a break from exploring the zoo to have fun on carnival rides, paddle boats, watch roving entertainers and more.

Chamber members from all industries appreciated the chance to relax with their families and meet fellow Chamber members during this “wild” night out.

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

2018

My Chamber

keeps me informed on critical issues impacting my business.

Mayorâ€™s State-of-the City Address

After Business

My Chamber

provides a platform to promote my business to a qualified business audience.

Mixer and Tradeshow

49th Annual Edmonton

My Chamber

gives me opportunities to expand and enrich my business network.

Chamber of Commerce Golf Tournament

My Chamber empowers me to stay informed on emerging issues, promote my business, and reinforce key partnerships. My Chamber gives me a platform for my business to prosper.

EdmontonChamber.com

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

Advocate. Educate. Connect.

PAYING TRIBUTE TO THE BUSINESSES THAT INSPIRE OUR CITY // SMALL BUSINESS WEEK

SMALL BUSINESS WEEK:

PAYING TRIBUTE TO THE BUSINESSES THAT INSPIRE OUR CITY BDC SMALL BUSINESS WEEK IS OCTOBER 15-19

BY LAURA BOHNERT

“S

mall business is often referred to as the engine of our Canadian economy, and Edmonton is no exception,” observes Todd Tougas, vice president, financing and consulting, BDC. “While we know that Edmonton is the provincial capital and host to world class educational institutions, it is much more than a government or university town. Edmonton is a young, diverse, and entrepreneurial city, and with that comes a vast array of emerging business.” Janet Riopel, president and CEO of the Edmonton Chamber of Commerce, agrees, “Small business drives the economy and provides over 70 per cent of the private sector jobs in Canada. Close to 85 per cent of our members are small enterprises. They are innovators, job creators and key contributors to our community and regional economy.

“Entrepreneurs in the Edmonton Metropolitan Region have the attitude, determination and resilience to build businesses that grow and thrive. It’s a challenging mission in the current economic climate, so the Chamber will do everything it can to support, sustain and nurture business success.” That desire to support, sustain and nurture the small businesses that make up the heart of Edmonton is what drives the Edmonton Chamber and BDC to celebrate BDC Small Business Week each year. Of course, the desire didn’t come from nowhere; it has been driven into the light by the inspiring stories behind every one of Edmonton’s small business owners. One such entrepreneur is Robyn Lockhart, owner and chef of Rockin’ Robyn’s Diner.

ABOVE: KALEX CUSTOM CARVINGS LTD.

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

PAYING TRIBUTE TO THE BUSINESSES THAT INSPIRE OUR CITY // SMALL BUSINESS WEEK

Lockhart started her business in 2012 as a commercial space for her catering services. “Well, now the restaurant is doing so well that I have to limit how much catering I take!” she laughs. “The restaurant has far surpassed any expectations I allowed myself to dream of. I am truly blessed with all of my amazing staff and wonderful customers, so many of whom are regulars, which is so intrinsic to supporting small businesses and entrepreneurs.” Lockhart attributes Rockin’ Robyn’s success to loyal customers, welcoming staff, a dedication to authenticity and pie. “Who doesn’t love pie?” she laughs. “It’s a combination of a lot of little things, from the wonderfully welcoming staff I employ in the front, who make sure your experience is warm, comfortable and super enjoyable, to our dedication to making food like mom used to make. Knowing the soup is made from scratch every day, like ‘in the old days,’ is important to our business and our customers. It keeps us authentic.” Lockhart observes, “Communities are not built around faceless organizations; they are built around people. For the past six years, we have been a part of the most inclusive community. I always told my family that I really wanted the kind of place that was essentially a ‘Cheers without the beers.’ It’s amazing to see that a community like that can still exist, and that we can have such a strong sense of support from such amazing customers.” Delphine Romaire, co-founder and co-owner of Elite Dance Studio, feels the same about the support Edmonton’s community has to offer. “We love Edmonton,” Romaire smiles. “It’s culturally diverse. People believe in the arts and want to invest in that journey. It’s vibrant and exciting to be in Edmonton.” Dominic Lacroix and Delphine Romaire created Elite Dance Studio after they moved to Edmonton in 2002. Both had been living in London, England, with eight Canadian titles under their belt, when they received a call from the University of Alberta. Ready for the next challenge, they relocated to

PHOTO SOURCE: ELITE DANCE STUDIO

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

// SMALL BUSINESS WEEK

Digital Marketing:

The Keys To Success

BALLROOM DANCING, COUNTRY, TWO STEP, BURLESQUE, SALSA, BACHATA AND MERINGUE. become the university’s dance directors. In 2006, they had a ballroom kids club with six students; now they’ve taught hundreds of children the art of ballroom and Latin dancing. Elite Dance Studio has grown to three locations across the city, where they provide a non-competitive environment for all ages to learn ballet, hip hop, ballroom dancing, country, two step, burlesque, salsa, bachata and meringue. Romaire says, “Small businesses are the people who serve and want to be with the people. They are the heart of the city because they have the pulse of its people.” Kallie and Alex Williams, owners of Kalex Custom Carvings Ltd., also know the importance of being welcomed into Edmonton’s community and the opportunistic business environment it offers. The custom woodcarvers specialize in making signs and games out of solid maple, but “we can carve almost anything you can imagine into wood,” Kallie Williams smiles—and they are 100% Canadian, with a dedication to sourcing as many local supplies as possible. Kalex Custom Carvings Ltd. was formed in July of 2014—”when I was about eight months pregnant with our first child,” Williams adds. And if that already sounds like a recipe for a tumultuous start, it barely scratches the surface. Kalex was originally launched in Saprae Creek— just two years before the Fort McMurray wildfire.

STEP

ALL AGES TO LEARN BALLET, HIP HOP,

Keep your info up-to-date

Having all your information up to date will allow potential customers to know your address or opening hours, encouraging a meaningful interaction. It will also help you rank better on search engine results. STEP

COMPETITIVE ENVIRONMENT FOR

2 Have a strong website

Having a trendy and well-organised website that is optimized for all types of screen displays (computer, tablet, mobile) will allow potential customers to easily seek you out. STEP

CITY, WHERE THEY PROVIDE A NON-

3 Develop quality content

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Social networks like Facebook and Instagram offer you privileged platforms to answer questions, foster engagement and ensure that you are always pertinent to your audience. STEP

ELITE DANCE STUDIO HAS GROWN

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“May 3, 2016, was a day that changed our lives forever,” Williams remembers. “I was seven months pregnant with

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

PAYING TRIBUTE TO THE BUSINESSES THAT INSPIRE OUR CITY // SMALL BUSINESS WEEK

We moved into a trailer in Strathcona County, where four adults, a toddler, three cats, and a dog all lived together for just over two months. Alex had lost his job as a chef when the business he worked for burnt down, and I hadn’t worked enough hours as a nurse between pregnancies to qualify for maternity or employment benefits. Alex and I knew that we had to make a decision as soon as possible, especially with a second baby on the way.

our second child. We had just finished working the Fort McMurray Tourism Spring Trade Show, and we were almost ready to send out all the orders that had been made. Our community in Saprae Creek was on a voluntary evacuation after Prairie Creek had been given a mandatory evacuation the night of the 1st. On May 3, the smoke had lifted and we woke up to blue skies. We were told to continue our regular routines. By the afternoon, the winds had shifted, and the devastation had consumed the city of Fort McMurray. I was driving home while watching the neighborhood of Beacon Hill and Centennial RV Park burn. Black smoke filled the skies, and the emergency alerts on the radio were sounding. By the time I arrived home, the entire city was under a mandatory evacuation notice.” Williams threw some clothes in a suitcase, grabbed their emergency files, their four pets, and their daughter. She and Alex each took a vehicle. “I stopped at the end of my driveway and broke down into tears. As I looked in the rearview mirror, I had a sinking understanding that this was the last time I would ever see my home. “On May 5, we received confirmation that our house and business, and my parents’ house and business, were gone.

“Using most of the insurance money we received for the contents of our home, we put a down payment on a place with a built-on garage in Parkland County. The remaining insurance money was used to purchase equipment and lumber. On July 15, 2016, we moved into our home, and we were able to restart Kalex Custom Carvings Ltd. On September 28, 2016, we confirmed our first order from our new shop.” “The struggles had not ended at that point,” she notes. “We had a great customer base and reputation in Fort McMurray, and with moving to a new area so suddenly, we had to start building our business again from scratch, with very little funding.” Now Kalex also has the U.S. tariffs to contend with; however, through it all, the local business community helped them pull through. “The business support in Edmonton has been great,” Williams stresses. “There is no way we would be able to continue creating and doing what we love if it wasn’t for the incredible community support and the drive to buy locally.” “In my opinion,” she concludes, “a small business is formed when an individual or group has a desire to create something different than what is currently seen in the marketplace. They take a huge risk with the unknown but are able to rely 100 per cent on their skill set, determination and drive to succeed.”

ABOVE: KALEX CUSTOM CARVINGS LTD.

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

AUGUSTANA ADDS A TOUCH OF MANHATTAN TO DOWNTOWN EDMONTON D

owntown Edmonton at 107 Street and 99 Ave isn’t an area normally associated with residential living. Home of the Alberta Legislature and a multitude of office buildings, it is a place where many Edmontonian’s come to work every day, driving in from the suburbs, paying for parking and waiting in rush-hour traffic. Pangman Development Corporation, in partnership with John Day Developments, recognized this as an opportunity to bring in some much-needed residential rental property to the area. Answering this need, the Augustana tower broke out above the ground above its five-story parkade in July 2018, as it climbs to its finished 30-storey height. At an estimated cost of $80 million dollars, the Augustana is 155,000 square feet of mixed-use development space designed by DIALOG Architects, to be a purpose-built, rental building that will meet and exceed the needs of its residents. The finish project will contain 240 rental units including studio, 1, 2, and 3 bedroom options, all atop a three-storey podium complete with 6,400 square feet of ground level

commercial space and private amenities on the second and top floors. The Augustana aims to fill a gap that hasn’t been addressed for over 25 years. “We believe that there is an undersupply of purpose built downtown rental buildings,” says Kevin McKee, CEO of Pangman Development Corporation. “We think the Edmonton renter is ready to pay a slight premium for a new generation building with new mechanical systems, efficient suite design, and a large diverse range of amenities available to the tenants.” Such amenities include a comprehensive fitness facility, onsite concierge, parcel delivery storage, smart technology, 147 spaces of underground parking, and easy access to the intricate pathway system that runs along the North Saskatchewan River. The icing on the cake is indeed the social areas designed to bring the tenants together, one of which is located on the roof providing a stunning view of the North Saskatchewan river valley, and the other located in the podium amongst the second-floor amenities. Pangman approached the Augustana like www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2018

they do all their projects, using a unique perspective to “evaluate all development decisions around what will bring the most value to the project,” as described in their corporate philosophy at www.pangmandev. com, and bringing features together that would offer the savvy renter another avenue toward the highly sought after work-life balance. Back in 2015 when the project was first proposed, Councillor Scott McKeen believed the tower had the potential to give the area new life, calling it an “interesting project in part because of where it was located,” in an area known for its provincial buildings, not robust residential developments. Pangman feels it is imperative to bring in much needed, albeit, higher-end rental units to the core in a Manhattan-esque project that “strikes [sic] a balance between aesthetic appeal and functionality.” McKee emphasizes, “if we have these new buildings that offer a great array of amenities, more and more people may decide to stay downtown or move into downtown delaying or evading the migration to the suburbs.”

2 September 2018 |

BOMA Edmonton Newsletter | www.bomaedmonton.org

As of July 2018, two more similar projects were slated for rezoning: one on the corner of Jasper Avenue and 108 Street, and one in Oliver at Jasper Avenue and 115 Street. With a proposed 1,000 units and 800 units respectively, and a similar selection of amenities, McKee explains, “We believe this is absolutely required in today’s market and today’s renter is going to expect those things.” Rezoning for the two additional purpose built rentals is expected to take place mid-2019 with a move-in date that is yet to be determined.

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THE TOWN SQUARE AT CURRENTS DAZZLES THE SOUTHWEST

n order to appeal to shoppers and get them to keep coming back, one must offer some genuinely unique and show-stopping amenities. That is precisely what Cameron Development Corporation and Harvard Developments Inc. envisioned and will bring to life with their Currents of Windermere shopping centre in Southwest Edmonton. On June 29, they officially unveiled the Town Square to their urban-inspired suburb within the city. The modern landscaped plaza will perfectly meld that small town feel with the glamour of exciting new modern amenities, and act as a community gathering hub for residents and visitors of the mixed-use property. The grand opening for the development, located just off Anthony Henday and Terwillegar Drive, was attended by local and national retailers as well as representatives from the provincial government and the City of Edmonton. Guests were presented with previews of the Town Square’s 26,150 square feet of space that

will combine natural greenery, walkway connections, seating areas, and a feature illuminated sculpture, culminating to offer a one-of-a-kind experience that will draw visitors in with curiosity and quickly become their new favourite spot. “The vision for the Town Square was to create a contemporary and welcoming space that connects leisure, shopping, and entertainment,” said Angela Lockhart, marketing manager for Harvard Property Management Inc. “It’s truly an incredible amenity to have within our shopping centre, and we look forward to working with our retailers, community partners, and guests to cultivate unique programming throughout the year.” Intended as a gathering place and venue for a multitude of events throughout the years, the Town Square will act as a central park-like setting nestled in the centre of the vibrant 450,000 square foot Urban Village, that is contained within the 1,075,500 square foot com-

M R A TE R ESS D R N G FO SIN U I F N E U FO S LO OM R B O TIE H OU NE ER Y O OP N O R N I P E T 17 TH ON . IN DM ION E EG R

See them all at qualicocommercial.com/map 4 September 2018 |

BOMA Edmonton Newsletter | www.bomaedmonton.org

mercial retail power centre. A total of 107 acres of land offers plenty of space to bring in retail favourites such as Cabela’s®, Winners/HomeSense, Home Depot, Walmart, and Canadian Tire, and compliment them with other new-to-market and unique locally owned boutique retailers – all within walking distance. “This is an important milestone for our company, our city, and our province, as the completion of the Town Square marks an incredible decade of growth and prosperity and serves as a great reminder of how far we’ve come,” said Rosanne Hill Blaisdell, vice president of leasing for Harvard Developments. “When we first began this project only 10 short years ago, this entire area was farmland as far as the eye can see. Now, as we gather here today, we are surrounded by almost 80 thriving businesses creating over 2,500 new jobs. We are proud of what this site has grown into, and the completion of the Town Square is another chapter in the project’s success story.” The Town Square is the crowning jewel to an already

With a combined total of 21 million square feet of property development between to two corporations, the result of the collaboration for the Town Square is everything we would expect from such a partnership. spectacular project, and perfectly showcases what happens when Cameron Development Corporation, one of the most active commercial development companies best known for creating the largest open-air retail centres in Canada, combines forces with one of Western Canada’s most highly respected full-service real estate companies, Harvard Developments. With a combined total of 21 million square feet of property development between to two corporations, the result of the collaboration for the Town Square is everything we would expect from such a partnership.

www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2018

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September 2018 | BOMA Edmonton Newsletter | www.bomaedmonton.org

perfect time to meet growing demand. Tenants in the Edmonton office market have a growing appetite for quality office product, as evidenced by the successful lease-up of recent new build trophy spaces.” It is this mindset that has inspired the innovative reinvention of HSBC Bank Place as a place that is both aesthetically and technically appealing for the growing needs of today’s tenants. “A full redevelopment of this scale requires the expertise of many partners, and AIMCo is fortunate to utilize local and national expertise to see it through. Edmonton supports a vibrant downtown and our redeveloped HSBC Bank Place builds off the energy of the current rejuvenation,” says Michael Dal Bello, senior vice president, real estate at AIMCo. Once complete, the new building will flow from the outside in. The updated greenery and seating areas surrounding the tower will be the perfect introduction to the revitalized two-storey lobby, boasting a triple glazed curtain wall system, floor-to-ceiling view class

Client: SERV

he downtown core has been witness to significant changes in recent years. The development of ICE District has set off a chain reaction of building owners and developers constructing new modern structures or updating existing properties to appeal to a different kind of market than the one that was simply happy to find vacancy during the boom. Companies looking to tap into the energy of downtown today are paying attention to vacancy rates downtown, and are either looking for a deal so they can renovate as they see fit or seeking a unique and modern space that fits the vision for the future of their company. It is with that in mind that Alberta Investment Management Corporation (AIMCo) announced its plans for the complete redevelopment of HSBC Bank Place to become Edmonton’s newest ‘AA’ class office building. HSBC Bank place is located in the centre of Edmonton’s downtown business core at the corner of 103 Avenue and 101 Street, adjacent to the vibrant ICE District. The building is surrounded by numerous amenities, including nearby LRT, shopping, restaurants, and more. Built in 1981, HSBC Bank Place was a hub of activity and innovation in its early years. After its primary tenant, the City of Edmonton, moved out of the building to the new Edmonton Tower in 2017, AIMCo saw an opportunity to create a building that Al Menon, CBRE senior vice president, declares is, “like nothing Edmonton has ever seen before. It’s a firstof-its-kind building.” “This creates opportunities for landlords to modernize that space – better work spaces for everybody – a chance to do some of the environmental things they’d like to do,” said BOMA president Percy Woods in a 2017 interview about the acquisition of the property. The 317,000 square foot building is undergoing a complete exterior and interior redevelopment targeting LEED Gold Certification, WELL Gold Certification, and will become the first office building in Western Canada to be Wired Certified. “Buildings that have been meaningfully designed to create efficient, future-proof offices with new and best-in-class amenities will continue to dominate the market moving forward, says David Young, executive vice president and managing director of CBRE Edmonton. “HSBC Bank Place’s redevelopment will position the building as the most significant link between the traditional financial sector and ICE district at the

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in the office areas above, and new mechanical and electrical systems behind the scenes. AIMCo engaged highly skilled specialists to bring their vision for the aging building to life. Built on a foundation of strong relationships and well executed projects, they lined up the following firms to partner with for various aspects of the project:

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The downtown Edmonton core is entering an exciting new chapter. The HSBC Bank Place transformation is part of a growing trend of building owners and developers striving to enhance the area with creative solutions that go beyond traditional office spaces, offering amenities that appeal to businesses that far surpass the usual conference rooms and coffee shops. AIMCo is the province’s investment manager, with a mandate to independently manage the assets of 32 public sector pension, endowment and government funds. AIMCo’s real estate team acquired HSBC Bank Place, along with Enbridge Place, from Dream Office REIT in February 2017, to ensure its clients the opportunity to participate in the rejuvenation of Edmonton’s downtown core. Preliminary work commenced in June 2018, with the full redevelopment expected to conclude by the end of 2019.

NEW PROJECTS, NEW SKILLS: THE CHANGING LABOUR NEEDS OF ALBERTA’S OIL & GAS // OIL & GAS

New Projects, New Skills:

THE CHANGING LABOUR NEEDS OF ALBERTA’S OIL & GAS

AS THE OIL AND GAS INDUSTRY RECOVERS, THE IN-DEMAND JOBS AND SKILLS ARE CHANGING. NOW, RECRUITERS ARE TASKED WITH FINDING UNCONVENTIONAL PEOPLE FOR A NOW FAMOUSLY VOLATILE INDUSTRY

BY ZACHARY EDWARDS

hen the price of oil dropped and Alberta entered its economic downturn, many of those who were laid off took their skills to other industries. The oil industry itself changed in the years since as well, with new mindsets, technologies and opportunities changing how work, well, works. Now, as the industry recovers, new kinds of experience and skills are in demand and the oil and gas industry is tasked with attracting talent back from other, and perhaps less volatile, industries. Currently, the oil and gas industry boasts the province’s highest job vacancy rate at over 10 per cent, according to the Alberta government’s projections. In 2017, the oil and gas industry’s unemployment rate was below the provincial standard, sitting at 5.9 per cent. Layoffs are still happening, of course, but in general, the industry is growing and needing to bring labour back. Those new positions, however, are changing.

Part of the shift in Alberta’s oil and gas industry is from upstream projects to midstream projects. Classically, Alberta has been focused on upstream, the finding and producing of oil and natural gas. Now, many projects are midstream, which is the processing, storing, marketing and transporting of oil and gas products, including liquid natural gas (LNG), Alberta’s biggest midstream product. “Historically, the marketplace in Alberta was focused on upstream projects. There’s now far more investment and buoyancy in the midstream marketplace,” says Kati Greenall, Airswift’s regional director for Canada and Alaska. Airswift is an international workforce solutions provider to the energy, process and infrastructure industries. “These projects are a huge investment that is positively impacting Alberta and creating a lot of new job opportunities that the province has not experienced previously. There’s also

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

NEW PROJECTS, NEW SKILLS: THE CHANGING LABOUR NEEDS OF ALBERTA’S OIL & GAS // OIL & GAS

“THE JOB SCOPES ARE VERY SIMILAR IN TERMS OF ENGINEERING, DESIGN AND CONSTRUCTION, IT’S THE EXPERIENCE WITH SIMILAR PROJECTS TYPES. SO, LNG IS A VERY SPECIFIC PIECE OF THE SECTOR THAT HAS A VERY LIMITED TALENT POOL AND AVAILABILITY OF THOSE WHO HAVE WORKED ON THOSE PROJECTS BEFORE.” ~ KATI GREENALL a lot of investment in LNG, and both of these projects attract a very specific and unique skill set from technical professionals and people who were previously seeking opportunities within an upstream market.”

Beatrice Floch, owner and managing partner of Spirit Staffing & Consulting Inc., says that many of the positions now opening up in the industry aren’t actually new or different, although new technologies are changing the industry. This is particularly true for renewable energy, which many major companies are now incorporating into their businesses. “The jobs are basically the same,” she says, “[but] because of some of the new industry in solar panelling and some more technical environmental industry roles, it is a requirement for the workers to be trained for this field.” Greenall agrees that experience in new and emerging trends is essential for the industry’s shifts. “The job scopes are very similar in terms of engineering, design and construction, it’s the experience with similar projects types. So, LNG is a very specific piece of the sector that has a very limited talent pool and availability of those who have worked on those projects before.” The challenge now lies in finding the right people for the right job, and convincing people to come back into the industry. “I think attracting talent back into the industry

ABOVE: KATI GREENALL, REGIONAL DIRECTOR FOR CANADA AND ALASKA AT AIRSWIFT.

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

NEW PROJECTS, NEW SKILLS: THE CHANGING LABOUR NEEDS OF ALBERTA’S OIL & GAS // OIL & GAS

is one of the biggest concerns that organizations have,” says Greenall. “During the downturn, we saw a lot of highly skilled individuals leave for power, renewables and water where they have transferable skills. Now that things are picking back up, the question is, how do we convince those professionals to come back to the industry? How do we remove the fear of volatility?” One way is through compensation, but even that has been dropping in the years after the downturn. “The thing with the oil industry is that you can’t beat the money,” says Kathy Verenka, recruiter for Edmonton’s Staff Bureau. “But there are people who spent most of their careers there who are now saying ‘I’m willing to take a pay cut for some stability.’” For Goodall, bringing people back into the industry is about educating them on upcoming projects, especially those that aren’t subject to the industry’s previous ups and downs. She says, “Education on projects that are coming online and whether investments are being made – LNG projects to the tune of $40 billion have financial stability, and that’s not something that can ebb and flow.”

For those looking to get into the industry on the administrative side, Verenka says companies are looking for “fit-for-purpose” people, those who can operate independently and bring multiple skills to the position. “For a lot of administrative staff, the positions remaining are being made to stand alone,” she says. “For example, people would rely on administration to input their time, do up their expense reports, take minutes in meetings, and all those things. They are now doing it themselves and becoming self-sufficient.” Many are finding themselves needing up-to-date familiarity with programs and systems that they may not have seen in their usual duties. As a result, people coming from one and two-year technical programs are getting the jobs. “Companies are starting to look for graduates from tech schools because it’s more of an analysis,” says Verenka. “Five years ago, people would come in looking for someone with data entry experience. Today, they need someone with data entry who’s also familiar with SAP, has supply chain module experience, and experience inputting financial data.”

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

NEW PROJECTS, NEW SKILLS: THE CHANGING LABOUR NEEDS OF ALBERTA’S OIL & GAS // OIL & GAS

“PEOPLE WHO ARE TECHNOLOGICALLY INCLINED AND HAVE WHAT I CALL ‘WIDTH’ IN THEIR RESUME, THEY’RE FINDING WORK. THEY’RE FINDING JOBS.” ~ KATHY VERENKA

Growth in oil and gas in Alberta has been slow, but Goodall is confident that the labour pool will widen as projects get underway. As it stands, she says finding the right people in Alberta has been difficult but, overall, they have found the right people in the province. As things progress, they may need to start looking elsewhere. “There are plenty of job opportunities and skilled, experienced people in Alberta to fill those vacancies. As more investments and opportunities come up, that talent pool dramatically starts to shrink. That’s when there will be more jobs than candidates. We’re not there yet but it is something that is coming.” Overall, the oil and gas industry is now competing with different sectors for the talent it requires. As the industry

shifts and changes to the new status quo, the older positions are being replaced with the expectation that candidates will have specific expertise or a wider range of capabilities. Today, it’s about getting the skills oil and gas needs for its upcoming projects, including LNG. For anyone who wants back into the industry, there are ways, but you may have to change your expectations. “People who are technologically inclined and have what I call ‘width’ in their resume, they’re finding work. They’re finding jobs,” Verenka concludes. “Things aren’t like they were five years ago, but people are still finding work. The people who are doing the best out there are the ones who can say ‘This is what I’m willing to work for, and I want to go in a slightly different direction.’” ABOVE: KATHY VERENKA, RECRUITER FOR THE STAFF BUREAU.

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

WHEN SUCCESSION PLANNING MEETS NEPOTISM // SUCCESSION PLANNING

WHEN SUCCESSION PLANNING MEETS NEPOTISM: WILL YOUR COMPANY SURVIVE?

BY LAURA BOHNERT

t is important to think about a succession plan for your business—but should you be relying on your kids to take the torch?

As Heather Barnhouse, partner, Dentons, explains, “To ignore succession planning is to almost certainly devalue the very thing that the business owner has dedicated his or her life to building.” “Often, kids are a great choice to take over a family business because it is almost in their blood,” she adds. “If they’ve grown up learning the business, and participating in the business, they are often well placed to take over the responsibilities. However, there should not be an expectation that the children will take over the business.” The viability of the business and the happiness of the successors, the employees, and the investors are all at stake, she points out. “The biggest effect of a hiring decision gone wrong can be the loss of value to the company. This can have devastating effects on the stakeholders, shareholders and the family (of the original owner) who may have been relying on the business asset to fund retirement goals.

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

WHEN SUCCESSION PLANNING MEETS NEPOTISM // SUCCESSION PLANNING

“REGARDLESS OF WHETHER THE CHILDREN ARE THE HEIR APPARENT TO TAKE OVER THE BUSINESS OR NOT, IT IS IMPORTANT TO CONSIDER WHO NEEDS TO SUPPORT THE NEW OWNERS, AND WHAT SKILL SETS MIGHT BE NEEDED TO COMPLEMENT WHAT THE NEW OWNERS BRING TO THE TABLE.” ~ HEATHER BARNHOUSE

“Regardless of whether the children are the heir apparent to take over the business or not, it is important to consider who needs to support the new owners, and what skill sets might be needed to complement what the new owners bring to the table,” Barnhouse stresses. “Ensuring that there are proper controls (from a policy and procedure perspective) in place helps manage the expectations for all parties involved. Many successful family run-businesses rely heavily on advisory boards that are composed of other players beyond the family/ friend circle to help with perception checking and broadening horizons to provide alternatives for consideration.” “Open and transparent communication is the key to managing these expectations,” she continues. “Depending on the circumstances, there may be roles for long-term employees to join a management team, or to lead a division within the business. Sometimes, processes can be put in place to manage the transitions smoothly. Sometimes, there is some training or other skill development required, and that should be encouraged, whether it applies to family members or not. Having clear expectations is key to making this transition successful.”

“This is a nuanced and customized concern,” observes Barnhouse, “It is something that can be refined, revisited and customized for the particular entrepreneur. There is no shame in seeking input from advisors. The best solutions are crafted when there is open and honest communication with people who bring a different perspective to the table.” Jeff Haggerty, CFP, CLU, FMA, wealth and estate planning specialist, Canaccord Genuity Wealth & Estate Planning Services, agrees that succession planning is a complex and important concern for businesses. “Succession planning ensures a smooth transition of management as an owner/manager looks to move away from day-to-day operations,” Haggerty describes. “Without a proper transition of management, operations may become interrupted, profits may decline, and the business may eventually fail or collapse. “You need to find the right people to fill specific roles within your business—the people that are the most qualified and have the specific skill set to support a certain function to operate or manage the business. Those individuals may be

ABOVE: HEATHER BARNHOUSE, PARTNER, DENTONS.

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

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WHEN SUCCESSION PLANNING MEETS NEPOTISM // SUCCESSION PLANNING

members of your family, managers, or employees within your company, or they may be outside contractors/experts within a certain field.” “It becomes nepotism,” he clarifies, “when you favour a family member taking over a specific role without considering that person’s skill set. It’s passing the torch when you have put the right person in the right position, regardless of who they are.” How can you create a business succession plan for the future that potentially accommodates the entrepreneurial-spirited child who may, one day, be the perfect candidate to accept the torch? “You can expect your kids to take over,” Haggerty notes, “but you need to consider how likely the outcome is. Often, children want to carve out their own paths and are

not interested in taking over the business. There is also a key difference to being suitable and ‘earning’ their spot in the company,” he points out. “A child may be suitable by experience, personality and education, but he or she may not have ‘earned’ their spot by working within the company. “If they are suitable, you should consider a transition period and have them work in the family business for a time before transferring full responsibility. This way, they earn their spot. Otherwise, if they are not suitable, you may want to consider other options. Are they suitable for any role? If not, do they want to be owners and delegate management responsibility to a third party? Do you want to consider other transition options, such as a management buy-out, or a third-party sale?” “These are things that need to be considered carefully,” warns Haggerty. “The wrong person taking over a certain role could severely interrupt operations and harm the business.

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WHEN SUCCESSION PLANNING MEETS NEPOTISM // SUCCESSION PLANNING

“BUSINESS PLANS AND STRATEGY CAN MAP OUT WHAT SHOULD HAPPEN AND WHEN. THE BIGGEST CHALLENGE IS STICKING TO THE PLAN VERSUS THE OWNER (PARENTS) FEELING SORRY FOR A CHILD OR FEELING LIKE THEY OWE IT TO THE CHILD. A PARENT (OWNER) CAN ALWAYS SELL THE BUSINESS AND GIVE SOME OF THE PROCEEDS TO THE CHILD INSTEAD OF GIFTING THEM THE BUSINESS AND THEN WATCHING IT FAIL.” ~ ROB SCHMEICHEL “You face the possibility of a mismanaged company, investors will be less likely to invest in your company, and share value may decline as a result. Worst case scenario, the company eventually becomes insolvent. This could ruin the wealth that was created by the original founder(s). I have seen retirement plans ruined and parents having to go back to work because their children ran the company they were relying on for cash flow into insolvency. “A proper succession plan should consider all stakeholders. The needs of the business should come before the needs of the family, if you want to ensure its continuity. Regardless, succession planning is important, and it is ideal to have the process begin several years in advance. The more planning and discussions that take place, the more likely you are to have success.” Rob Schmeichel, Edmonton district director, Farm Credit Canada (FCC), agrees: “Succession or business transition is not an event; it is a multi-year process that requires time and focus to succeed.” “Securing the future is about being focused on and relevant to your customers and markets,” Schmeichel explains. “That requires stability, leadership, management and investment from a committed ownership and employee team. Succession planning provides for the orderly, timely, and predictable transition of a business from one ownership group to the next—and that enables the ongoing and continued focus of the business in its purpose and relevance to markets and customers. “What’s important is establishing what the business (future) needs and what the family (previous ownership) needs. Business is dynamic and always progressing, so the right

successor as leader or owner needs to be someone who has the vision, commitment and passion to move the business forward into the future. If that person is from the family, they may be a great fit for the legacy of both the family and the business.” “Parents dream of giving their business to their children,” he continues. “They also enjoy working alongside of their children. They want their children to succeed. It is a noble goal and desire to see one’s children take over the family business, but the children need to be ready and willing with leadership, skills, vision and passion for the next 30 years of the business, or else it probably won’t succeed. “Competency trumps blood lines,” Schmeichel stresses. “Is the new leader qualified? Just ask the employees—they will tell you. “Business plans and strategy can map out what should happen and when. The biggest challenge is sticking to the plan versus the owner (parents) feeling sorry for a child or feeling like they owe it to the child. A parent (owner) can always sell the business and give some of the proceeds to the child instead of gifting them the business and then watching it fail.” A succession plan could also “consider [making] key longterm employees into ‘partners’ in the transition,” Schmeichel points out. “An unprepared or uncommitted leader can harm a business, demotivate the staff, and negatively impact the company value for the shareholders,” Schmeichel concludes; however, “Ongoing and consistent communication with all levels of staff and ownership solves many issues. Business plans and strategy can map out what should happen and when.”

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

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PLUMBING & HEATING

Celebrates 50 Years

SUCCEEDING ON A SOLID FOUNDATION Master Mechanical’s strong partnerships see the company through changing economic times

aster Mechanical Plumbing and Heating (MMPH) is a provider of the complete mechanical scope to building owners, property developers, general contractors and others in the building construction industry. In 1968, Bill Strong Sr., Gary Hoover, and Frank Wilson approached E.A. Gellhaus with an opportunity to invest in a small plumbing venture. On May 1, 1968, Master Mechanical was launched and has been growing ever since.

Gary Hoover

Bill Strong Sr.

E.A. Gellhaus

Frank Wilson

The very first project on the books was a 22 suite three storey walk up for R & R Construction on May 13, 1968 – Job #1001. From the beginning, it was apparent that the company was destined to hold a presence in the rental/condo market. Like many humble beginnings, long hours were invested by the owner group managing the day to day operations, growing the business, and working in the field at night and on weekends to complete the installations. As the workload grew, they added to their team. In desperate need of more space, within two years the company moved from a single bay office/warehouse to a new three-bay office/warehouse facility erected by E.A. Gellhaus at 9535-62 Ave. Within the first 10 years, the company grew to 250 tradespeople and became a strong force in both Edmonton and Fort McMurray. While Bill Strong Sr., E.A. Gellhaus, and Frank Wilson were focused on growing the Edmonton market, Gary Hoover was instrumental in the success of the Fort McMurray operation. He spent most of the decade in Wood Buffalo County leading the charge. Plenty of tight deadlines and a lack of skilled local manpower required MMPH to fly in crews from the east coast on a bi-weekly basis, but by the end of the 70s, the company had completed approximately 85 per cent of the rental walk-up apartments in Fort McMurray. During that time, MMPH operated with the philosophy that having a turnkey operation to include the full mechanical scope enabled them to efficiently encompass the entire project from

start to finish. To achieve this, Fort Services & Ditching and Double M Sheet Metal were launched catering to needs in northern Alberta. In addition to the new site service and HVAC divisions, a mechanical engineering arm, Greg & Associates, led by Greg Kroening, was added to the group of companies to provide in-house mechanical design as well as design work for other clients. E.A. Gellhaus involved his sons, Gary and Wayne, in the family business at a young age. As teens, their father put them to work pre-fabbing at the shop or on the end of a shovel. A typical Saturday morning involved spending time with their dad operating bobcats, forklift and picker trucks as they prepared materials for the upcoming week. This time spent on Saturday mornings quietly instilled a healthy work ethic to lay the foundation for second generation success. Gary would join the business fulltime in 1974 as an apprentice plumber, followed by Wayne in 1978. The brothers would spend the next several years honing their skills further under the mentorship of Gary, Bill, and Frank with the goal of producing strong leadership in all aspects of their trade ranging from front line work to the management of the operation. In 1978 E.A. Gellhaus retired leaving a strong, viable operation with a solid ownership group in hand, Gary Hoover, Frank Wilson, and Bill Strong Sr. Diversification continued to be an important factor in the continued success of the business. Western Poly Gas (Master Mechanical Western Ltd.), the union division was established to facilitate work on high-rise rentals and large commercial projects. This led to key projects, such as: Renaissance Place, Edmonton Space Science Centre (now Telus World of Science), the Van Waters and Rogers Glycol facility, and The Renaissance Phase 1 in Calgary. With the Alberta oil boom in the rear-view mirror, the 80s began on a sombre note and work in Fort McMurray came to a grinding halt. Fortunately, MMPH had many strong relationships in place that helped the company persevere during those difficult times, relationships that now included: Christenson Developments, Kroening Consultants, Emco (Western Supplies Limited), and Bartle & Gibson. MMPH is happy to continue to rely on these partnerships today, and the company credits these and the many other corporations they work with as key players in MMPH’s continued success. As always, MMPH focused on their core strengths by continuing to engage in the construction of four-storey walkups, completing several projects for Miller Brothers, Can-Der Construction, and Capital Management. With all divisions

Master Mechanical | 50 Years | 1 73

CELEBRATING 50 YEARS

PLUMBING & HEATING

stretched at capacity, in the early 1980s, a new building to house the expanded MMPH operation was constructed at 18 Street and 76 Avenue. Then along came the collapse in world oil prices. Like many companies in Edmonton, MMPH was hit hard by the fallout, but thanks to sound operational practices and key business partnerships, the company was able to retain a highly

skilled and abundant (150+) labour force. They were successful in securing several high-profile projects, such as Phase 3 of West Edmonton Mall (completed with PCL), which included: IKEA, Hometown, Cineplex Theatres, Fantasyland Hotel and its Phase 3 parkade. The success with PCL at this project was a key factor in MMPH being chosen as the preferred contractor for the Millwoods Town Centre Mall development. Gary was welcomed as a partner in 1986 when Frank retired. With the desire to succeed like the others before him, Gary’s effective negotiating and PR skills, along with technical knowledge provided the framework for building strong relationships with developers/contractors. Over the next decade, MMPH would continue to thrive with more than 2,500 rental/condo units completed for Capital Management, Carrington, Qualico, and Cove Properties. It was also in the mid-90s that Gary Hoover retired, leaving Bill Strong Sr. and Gary Gellhaus to continue the legacy. The CFB Namao project was instrumental in allowing the company to weather the mid-90s recession. The project was classified as design-build fast track, and spanned nearly three years. The project entailed MMPH coordinating the work with three general contractors: PCL, Ledcor and Stuart Olson. At any one time, in excess of 100 tradespeople were involved in the mechanical scope on site during construction. The company’s strong foundation allowed for expansion at a time when the economy was shrinking. Led by Gary Gellhaus, MMPH’s Calgary operation was launched in 1995. Mainstreet Developments was a key client in ensuring a healthy start to the new division. A connection with Swan Homes further enabled entrenchment in the multi-family housing niche in the Calgary area. In addition, a long-term relationship with Clark Builders began with the conversion of the Churchill Building. Several more projects with Clark Builders would follow in the years to come. As the century turned, Wayne joined the ownership team and he realized the need to maintain the quality of work while competing in a tight market. Led by Wayne, MMPH began to look at alternate methods, steering towards the out-of-the box philosophy they are known for today. The new millennium also

Master Mechanical | 50 Years | 2

ushered in long-term relationships with Abbey Lane Homes and Reifel Cooke Group of Companies. These new partnerships, combined with past relationships, ensured business flourished as 3000+ rental/condo units were completed by 2005. In the mid 2000’s MMPH teamed up with Abbey Lane to construct the development known as One River Park, and WAM Developments/Dawson Wallace to construct Lessard House, a high-end luxury condo building. Both are still regarded as some of the most sought-after residences in the city. The new century brought Alberta prosperity – at first. Then in 2008, the American economy crashed hard, sending a master-mechanical-50th copy.pdf

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shockwave into Canada and touching off what many describe as the “Great Recession.” The global financial crisis in 2008 had deep, lingering effects that would last some time, the company admits. However, strong ties established with clients allowed MMPH to prevail. With the Grey Cup to be hosted by Edmonton in the fall of 2010, the company successfully completed the addition of the Commonwealth Community Recreation Centre and the renovation to the Edmonton Eskimos Locker Room on a fast-tracked schedule. For Master Mechanical there was a deeper connection to the project in that Fort Services & Ditching completed the civil site services for Commonwealth

CMY

Master Mechanical | 50 Years | 3

CELEBRATING 50 YEARS

PLUMBING & HEATING

Congratulations on 50 years!

7798 16 St NW, Edmonton, AB T6P 1L9 (780) 469-7791

Stadium when it was originally constructed for the Commonwealth Games held in 1978. The Stadium and the Rec Centre together stand out as an iconic landmark for the City of Edmonton. Operations in Calgary continued to grow as new relationships emerged with Instautor Group, Leader Contracting, Stuart Olson and Graham Construction. The operation also expanded its reach into Canmore, with the Spring Creek Mountain Village development, and Invermere, BC., with Sable Developments Inc.

Congratulations to the team at Master Mechanical on 50 years! gccustommetal.com | Custom Manufacturing

As the province climbed out of its latest recession, a new and more industry-diverse economy started forming, but it was business as usual for MMPH. The company continued working with its industry partners while forging new relationships with Traine Construction & Development, Shanghai Construction Group, Rescom Inc., ITC Construction Group, Regency Developments, Morrison Homes, Cedarglen Living, Sarina Homes, and HomeSpace Society. Which brought things to 2015 and – you guessed it – another recession. The 2015 crash stalled growth in oil sands production. With unemployment at a high, increased competition became a challenge to overcome on a daily basis. Once again, MMPH found themselves engaging in creative thinking to maintain the quality of work while still remaining competitive. In an effort to further diversify, a new operation, Master Mechanical Systems Ltd. was launched in the fall of 2015 to provide clients with comprehensive preventative maintenance and repair services.

Congratulations Master Mechanical On 50 years of outstanding work! We are proud to be a part of your success.

#200, 10568 – 109 Street NW, Edmonton, AB T5H 3B2 (780)425-2884 | www.abbeylanehomes.com

Alberta is built on a boom and bust economy, and it’s a cycle that has seen many strong companies falter. MMPH, however, employs an operational strategy, a family based corporate culture, work ethic, relationship-building values, and a relentless drive for excellence that never fails to see them through. It also helps that the company remains true to its origins. Its grassroots business of four-storey walk-ups and high rises continues to be part of the big picture. MMPH also credits its many subcontractors for assisting in successfully turning over each project to the standard expected by the client. Most importantly, Master Mechanical’s employees have and continue to play a vital role in the success the company has achieved thus far. This would not be possible without the loyalty and dedication of so many valued individuals, both past and present. The company is always busy, but MMPH still ensures it makes time to give back to the community by supporting causes such as: Ride Don’t Hide, the Semicolon Tattoo Event, Ronald McDonald House, Adopt-A-Teen, A Christmas to Remember, Kelowna Futures Tennis, local minor hockey teams, and more. Donations are made on a regular basis to several charities, including: Stollery Children’s Hospital Foundation,

Master Mechanical | 50 Years | 4

POINTS WEST W

MARKETING

CONGRATULATIONS ON 50 YEARS AND CONTINUED SUCCESS IN YOUR FUTURE! WE ARE PROUD TO BE A PARTNER.

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10334 â€“ 172 Street, Edmonton, Alberta T5S 1G9 (780) 489-0757 | pointswestmarketing.ca

CELEBRATING 50 YEARS

PLUMBING & HEATING

MS Society of Canada, Alzheimer Society of Canada, and STARS Air Ambulance. MMPH is also proud to lend support to veterans through the Royal Canadian Legion – Alberta and the Canadian Fallen Heroes program. This year, Master Mechanical is celebrating its 50th year in business, all based on its philosophy to apply out-of-the-box methods as they strive to exceed customers expectations. The total service mission means presenting a complete, turnkey process from design to occupancy that is delivered at a high standard, on time, and on budget. MMPH has a strong past and an exciting future. What comes next is to position the company properly by providing the next

generation with the tools to succeed. Like the generations before them, no matter what Alberta has going on, MMPH is poised to remain steady and stay their course.

PLUMBING & HEATING

2107 - 87 Avenue Edmonton, AB T6P 1L5 Phone: 780-449-1400 | Fax: 780-449-5022 www.mastermechanical-ltd.com

What a Remarkable Achievement. Congratulations on 50 successful years Master Mechanical, and continued success in the future.

Congratulations on your 50th anniversary Master Mechanical. It’s always a pleasure doing business with you.

14635-121A Ave Phone: (780) 450-6262 • Toll Free: (888) 450-6262 www.frontiersupply.ca

To your continued success Congratulations Hendriks Construction Ltd. Congratulations Master Mechanical on 40 years of business. on 50 years in business. RBC Commercial Services Team 9034 – 51 Avenue Edmonton, Alberta

Congratulations on 50 great years to Master Mechanical. Thank you for allowing us to be a part of your team. From all of us at Dyand Mechanical Systems Inc.

® /™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. 30075 (01/2011)

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Successful growth inspires us all

2015-01-14 4:18 PM

Congratulations to our client Master Mechanical on 50 years of remarkable growth.

grantthornton.ca

14840 – 115 Ave | 780-452-5800 www.dyand.com

Master Mechanical | 50 Years | 6

Argus Machine Builds on a Legacy Think you know Argus? Look closer. By Nerissa McNaughton

hould you be fortunate enough to visit Argus, you will soon understand the value and respect their team has for the company’s humble beginnings. Kris Mauthe, President & CEO, may lead you around the office complex, past the state-of-the-art machining tools, and into a building where it takes your eyes a couple seconds to adjust to the light. When you realize where you are, however, it’s delightful. They call it The Vault, and it’s filled with memories from Argus’ 60-year history: the first handwritten payroll book, the rucksack one of the founders carried when he immigrated to Canada, machines and tools that were beyond innovative for their time, old company jackets and photos, two vintage lathes whose beds make innovative boardroom tables – it’s an absolute treasure trove and a worthy time capsule, the likes of which few companies can boast. However, there’s a door to the left. When opened, the door leads to The Lab, a brilliantly white room where natural light pours through the bay doors, giving an almost ethereal look to the birthplace of Argus’ most innovative new ideas and products, and the tools that take them from conception to reality, complete with temperature-controlled chambers for extreme weather testing, 3D printing, robotics and the latest in machining technology. “We aspire to be the best in the world for each product that we manufacture, and that takes constant investment in technology and education,” says Mauthe. Connecting the two rooms is one of the many gifts Argus has received over the years. It’s part of a barrel from a Canadian Leopard C2 Tank that served in Afghanistan,

Albert Kranenburg & Tommy Hallett

and it’s set at an angle so that, if you look through it from The Lab, you see the portrait of the founders in The Vault. If you look through it from The Vault, you see Argus’ latest projects in The Lab. The old and the new. The past and the future. The foundation and the elevation. That’s what Argus is all about. You think you know who they are and what they do? Get ready to be surprised. Very surprised.

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“Driving by, you might look at us as a dusty old machine shop that creates products for the oil and gas industry,” smiles Mauthe. “We are a precision manufacturing company that creates goods primarily for the energy sector, and those goods are utilized around the globe. Over 50 per cent of our products service markets outside Canada. Notable products include pigging valves utilized in the maintenance of pipelines where we have decreased emissions by over 80 per cent as compared to traditional methods, and our fleet of nearly 150,000 pressure switches provide a first line of defense for pumping wells.” “Argus holds the most diverse threading capacity in Canada with each connection Legacy Pucks for the Edmonton Oilers 1984/1985 team designed for a specific range of environments. As you can imagine, with well depths now exceeding 7,000 meters, integrity of well Foundation and the Dave Semenko Legacy Project. The bore construction is as important as ever. In 2015, we were pucks were made of aircraft grade aluminum, intricately recognized as being the best licensee in the world by VAM.” machined to the point where only a magnifying glass could reveal a level of detail finer than the naked eye could see. In “The manufacturing sector,” Mauthe continues, “is a vital 359 days, Argus took the product from concept to presenting component to our economy. It provides nearly a two-to-one them to the team in the Oilers dressing room. multiplier for every dollar of revenue generated and its high labour ratio ensures job creation in the city we love.” Argus has also successfully recreated the historical lances that were used by the Lord Strathcona’s Horse Yet it’s an industry that has noticeably suffered over the (Royal Canadians) at the turn of the 20th century. past few years. The recent recession, followed by new A cavalry regiment at the time, the Strathconas now taxes and topped off with a tariff war, have made it difficult operate armoured tank and reconnaissance squadrons for companies like Argus to operate and export at full out of Edmonton. The lances were donated to support a capacity. While many companies have had to close their fundraising campaign that assisted 75 soldiers in attending doors and fade into history, Argus is choosing a different centennial events held in France on March 30, 2018 to path: adaptation. honour the last great cavalry charge made by the regiment known as the Battle of Moreuil Wood. “As the industry has taken a beating, our focus over the course of the last four years has been to think differently,” “It was an honour to assist in commemorating this historic explains Mauthe. “We have an incredible wealth of capacity event, and we followed up with the manufacture of a parade in our people and our equipment, so we expanded our quality farrier’s axe for the outgoing commanding officer. focus to include timeless keepsakes. Argus is evolving, For the first time in 118 years of its history the lead riders having fun, and we’re challenging ourselves.” carried a farrier’s axe, similar to what is carried by the Household Cavalry in England. The company that for years focused exclusively on the manufacture of industrial equipment is not sitting on its Creating keepsakes like these have made history come laurels. alive for a new generation, and they have preserved some of Canada’s most important moments for future generations On February 11, 2018 the 1984/1985 Edmonton Oilers team to enjoy. was recognized as the best NHL team in the last 100 years. Inspired by the teams’ drive to be the best, Argus designed “We employ some of the best in the world,” Mauthe a Legacy Puck and gifted one to each team member at the praises the Argus team. “Over the last four years, we have celebration that supported the Edmonton Oilers Community combined manufacturing and engineering expertise with

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art. We certainly have the capacity, but we would not have thought of challenging ourselves in a way like this before [the recession].” The new direction Argus is undergoing does not mean a departure from the past. When you supply some of the best energy sector tools in the world, no recession, tax, or tariff can change that. Argus is focused on building and expanding on its legacy – a legacy born and preserved by the company’s visionary founders. “Argus is here because of Tommy Hallett and Albert Kranenburg,” Mauthe points to the glossy black and white photos in The Vault that depict the founders as young men, through the progression of the company, and into their retirement. “They wanted to create a company that continued long after they were gone. They could have sold it off, but they chose to create a legacy and keep the company in the community that embraced them and that they called home.” Hallett and Kranenburg created Argus Machine in 1958. Their employer was closing down, so they struck out on their own with just seven employees. By 1963, the company had outgrown its original space, so it took up residence in its current, sprawling, 97 street complex. Expansion has always been measured and strategic but hasn’t always worked out. After a short-lived expansion to Dartmouth, NS, Argus expanded into Nisku in 2002.

The Lord Strathcona’s Horse (Royal Canadians) farrier’s axe carried into the outgoing commanding officer’s ceremony

This past year, Lord Strathcona’s Horse (Royal Canadians) celebrated the 100th Anniversary of the Battle of Moreuil Wood. A large part of this celebration would not have been possible without the generous support provided by Argus. They reproduced accurate replicas of cavalry lances and farrier axes which were used by our soldiers during the early days of the Regiment. These quality Argus products are now on display in many homes and businesses of the members of our Regimental family. ~ Kathy Batty, LdSH(RC) Regimental Society/CMT Foundation

Mauthe, an accountant by trade, knew of Argus as a client of KPMG where he was an articling student. When the opportunity arose for him to join the company 20 years ago, he didn’t hesitate. In a sense, it was a bit of a homecoming since he had started his working life in the energy industry. Now, as Mauthe looks around The Vault and checks on the progress in The Lab, he considers how the company – and the industry – have changed so much over the years. “Don’t focus on the negatives of fossil fuels” he muses. “There are a lot of great success stories and positives that continue to come from their use. Although Argus is expanding to new markets, oil and gas is still our area of expertise, and the world continues to require innovative solutions to increase efficiencies.” The company grew from humble beginnings to a staff of 193, and Mauthe prides himself in learning each employee’s name. Such is the nature of the strong company culture. “Knowing the names of each team member is important to me,” he confides, “in the same way that our customers matter. We care. We want them to know that we care.”

Argus continued to innovate and invest, even when the economic conditions were not favourable. There is a constant need for adaptation to an ever-changing environment. Mauthe sighs with frustration, “Before the tariffs, we were hit by the carbon tax. These measures make Canadian production more challenging and decrease our global competitiveness. It is important to recognize that these measures are counterintuitive to maintaining economic growth and supporting a large contributing sector to our economy. Our nation is full of entrepreneurs and we lead the world in environmental practices, and yet we put them at a disadvantage before they even start while allowing imports from areas that continue to limit environmental advancements.

Argus | 60 | 3

Some may say [the taxes and tariffs] are just a per cent here and there, but those per cents add up, have long-reaching implications, and chase investment from our region.” No matter what comes Argus’ way, Mauthe and the team soldier on. “I don’t feel like I’m going to work; I don’t see it as work,” he laughs. “Honestly, it’s a very rewarding career. Our team operates much like that in sport, where I’m fortunate enough to lead by providing the resources and support necessary. They are specialized in each of their areas, and respecting their capabilities allows them to excel. They know from a technical aspect what is required in order to achieve the goal. Leading here is more about providing them with the support to meet those goals.” Providing the support to meet goals extends into the community, too. Argus is more than happy to give back and continue the legacy started by the company’s founders. “Our endowment fund with the Northern Alberta Institute of Technology (NAIT) has provided over $400,000 in bursaries to 320 students so far. A number of those students are employees today. When they receive the award, we invite them to our facility and tour them through Argus. The Edmonton business community is small and there is a high likelihood we will cross paths again. Its rewarding to hear their stories about how we were able to assist them in achieving their goals.” Argus continues to be agile as the years roll by, bringing with each one an equal measure of challenges and rewards. Mauthe is determined to continue the legacy started by Hallett and Kranenburg, and an additional brand, Argus Legacy, is intended to add inspiration to the team. The Legacy logo pays homage to the Greek heritage of the company’s name, featuring imagery that shows the company’s competitive spirit and its eye on the future. It is, as Mauthe proudly explains, “a representation of how Argus always has, and always will, stand the test of time.”

Ongoing innovation in The Lab

Intricate details and high style are hallmarks of Argus’ new timeless keepsakes

5820 97th Street NW Edmonton, Alberta T6E 3J1 Toll-Free: (888) 434-9451 • Phone: (780) 434-9451 www.argusmachine.com / www.arguslegacy.com

Argus | 60 | 4

Valuemed Celebrates 30 Years The company launched when the world was changing, but then it turned the tables and challenged what the industry could be. by Nerissa McNaughton

aluemed Professional Products Ltd. was born on the cusp of a changing world, and thanks to visionary Candi Johnson, president and COO, the company flexed, adapted and thrived. Now, 30 years since its humble home office beginnings, Valuemed is a growing Canadian manufacturer and distributor of top-of-the-line healthcare products and equipment for the entire continuum of medical, dental and alternate healthcare professions. Operating from a 30,000 square foot distribution facility in Edmonton, and with warehouse and branches in Saskatchewan and Ontario, the company’s 40 employees work to deliver products quickly to any location in Canada, including very rural communities and major urban centres. From diagnostic, treatment and interventional products, to coffee and tea, Valuemed is the one-stop-shop supplier that pairs premier products with outstanding support and customer service. “I founded Valuemed in 1988 because I had been working with a variety of different health care related companies and loved the business. I believed I could build it and used the opportunity to start with supplying examination gloves to the healthcare market when those became an essential tool in infection prevention,” says Candi. “I was working fulltime, but I took an

opportunity and started the company by working on it during the evenings and weekends. I was never afraid of hard work or change, and failure was not an option.” Remember, this was the ’80s. Not only was the internet non-existent (the primary communication mode was a landline telephone and a fax machine), the expectation for women with young children was to go into established marketing models, not to build something from nothing and then compete for clients and product distribution rights. But Candi’s vision quickly paid off. Within months, she opened a warehouse, and in 1993, her husband Wayne joined Valuemed fulltime. “There was a lot of shipping, receiving, box moving, paperwork – things that we just couldn’t get done on evenings and weekends anymore,” explains Candi. Wayne’s fulltime commitment was the beginning of what morphed into a family company. Their son Chris joined the company fulltime in sales in 2003 and today, he works as the sales director. The company has seen many periods of very rapid growth: a major location change and an expansion into the

Valuemed | 30 Years | 1 83

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hospital business in 2005, a company acquisition in Saskatchewan in 2013, the launch of Valuemed branded products in 2012, and a distribution centre in Ontario along with another major 1,500 product line increase in 2016. Valuemed now serves organizations across the country on national contracts with equipment and supplies.

those who want to meet in person and people who want to do it all online through EDI,” says Chris. “We recognise that. In our marketing and in our service, we do it all. We offer all those mediums to our clients and to our staff. We have team members that are skilled in generating online services, and we have others that are at their best face to face.”

“Entrepreneurs work a lot,” admits Candi. “I work many hours, but when I want my largest smile, I just look at my three grandchildren: Willa, Peyton and Declan.”

Chris continues, “We value our customers and want to make working with us as efficient as possible. That’s why we have these options. We are here to serve the customer, and if the customer wants someone to phone or visit them every week, or if they want to email or order online, we want to offer that.”

“Valuemed has endured much during a very changing marketplace and time,” continues Candi. “If you think about what’s happened in the last 30 years, many people wouldn’t even know what it was like to work on manual accounting systems or to rely on a fax machine. In small business, a lot of things were not computerized. Wayne moved us into technology. For a small family business, that was a big feat to take on.” Valuemed continues to rise to the challenge as technology changes. A major benefit of launching in the pre-tech world is the ability to span the needs of every client. As Chris explains, “The new tech out there (social media, etc.) brings new opportunities and new ways to get your message out. There aren’t just one or two channels anymore.” However, many people still use that fax machine! Why? Because today it’s still an easy and still effective way to communicate. “There are people who want to use print media, those who want to use digital media, people who want to talk on the phone,

From stuffing envelopes and mailing flyers from the kitchen table, the agile company now routinely consults with professionals, planners, nurses, physicians, dentists, builders, managers, contractors and architects to help them outfit their hospitals, surgical suites, or practices with the products and equipment Valuemed supplies. It is the service and product training that Valuemed offers that gives its clients complete confidence and long-term relationships. Valuemed was recognized with the National Distribution Company largest sales growth award in 2013. “We won the overall award for North America!” says Chris. “This Canadian company, against all those American distributors in that giant market!” For Candi, the awards, the 30 years, expanding to serve the national healthcare market, having her family join Valuemed, the

Pride in Protection. www.medicom.com

Medicom would like to Congratulate Valuemed on their 30th anniversary!

Valuemed | 30 Years | 3

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