Welch LLP Business Growth Survey 2023

THE ROAD AHEAD

MOVING FORWARD IN UNCERTAIN TIMES

BROUGHT TO YOU BY

This year’s results reflect confounding times in our city

Again this year we are proud to present the 2023 Welch LLP Business Growth Survey. The survey now acts as a history for business confidence in Ottawa.

As for looking ahead, it seems as though we have spent the last year waiting for a recession that will never quite technically arrive. Despite this, we see the significant challenges businesses and consumers in our community are facing, with increased capital costs, challenges accessing that capital and associated inflationary pressures.

We remain encouraged by the results of the survey but note that they reflect these confounding times with mixed opinions and some challenging outlooks that reflect the economic narrative of the past several years. We hope that this data can be useful to you as you navigate 2023 and beyond.

We thank our presenting partners: the Ottawa Business Journal, Ottawa Board of Trade and Abacus Data. Thank you to our major sponsor Commissionaires Ottawa. We also thank RBC, Perley-Robertson, Hill & McDougall, Le Regroupement des gens d’affaires de la Capitale nationale (RGA), TAG HR and Sprott School of Business at Carleton University for their generous support.

Despite the many challenges that Ottawa faces, we firmly believe that it remains a great place to do business and a city that we are proud to call home.

We must move forward in these uncertain days

I am so pleased to launch this year’s Welch LLP Business Growth Survey. Special thanks to all our partners, especially Welch LLP and Abacus Data, for your continued support for this important report.

Understanding the state of our city through the perspective of our local businesses is critically important as we contemplate both the economic development and community prosperity agenda of our city today, and as we plan the future.

Our Ottawa businesses have demonstrated an admirable amount of ingenuity and resilience in the past three years. For that we say congratulations and thank you! In addition, many business leaders have actively contributed to conversations about how citybuilding, smart policy-making and social justice can drive business and community success. The pandemic certainly highlighted the interconnectedness of our local and global communities.

Moving forward, a level of uncertainty remains. But move forward we must. Focused on the things we can control, planning for the future and committing to a growth agenda. We have an opportunity to leverage our many strengths in Ottawa and target high-growth opportunities. Our strategy must have both short- and long-term objectives. And these must be clearly and positively communicated to build confidence and promote opportunities.

We enjoy many benefits by being the capital city of Canada. Strong public and private sectors, unique cultural and natural amenities, an international airport and world-class education and health institutions. Our competitive edge comes from how well we collaborate and how committed we are to inclusivity. Protecting and elevating quality of life is the key economic driver. And everyone has a role to play: business and community leaders, elected officials and our citizens.

Get involved. Support local. Promote Ottawa.

For our part, the Ottawa Board of Trade, our determined members and passionate volunteers, will use the information in this report to advocate for Ottawa businesses with the intention of cultivating a world-class, thriving business community. One that drives affordable, inclusive and sustainable city-building for today, and for the next generation.

Partner Welch LLP, Ottawa Office

Sueling Ching President and CEO Ottawa Board of Trade

Chris Meyers, CPA, CA

On behalf of the entire team at Abacus Data, it is a privilege once again to present the findings of the 2023 Welch LLP Business Growth Survey, the 11th time we have been the research partner for this important study.

The Collins Dictionary word of 2022 was “permacrisis,” defined as an extended period of instability and insecurity. Feels about right, eh?

The global pandemic has been replaced by a shortage economy, in which supply chains struggle to operate at full capacity, job vacancies remain at historic highs, and the cost of borrowing has increased significantly. Despite these challenges, the resilience of Ottawa’s business community is evident in these survey results as we close the first quarter of 2023.

In this year’s survey, we find an increase in businesses reporting a decline in confidence in the local economy. Many of them have been affected by the fact that Ottawa has struggled to regain momentum after the pandemic and the “Freedom Convoy.” Nevertheless, the business community remains resilient, with over half of businesses reporting increased revenue in the past year. Approximately half experienced higher profits and 43 per cent plan to hire in the next year.

These challenges are likely with us for a while, so it’s important for businesses to diversify their supply chains; focus on employee engagement, retention and training; and prioritize innovation. More importantly, businesses need to work together to advocate for policies that encourage economic growth.

The survey was conducted by Abacus Data from Feb. 27 to March 31, 2023. A total of 525 business leaders participated, responding to invitations from the Ottawa Board of Trade, the Ottawa Business Journal, and the Welch LLP contact list. Members of BIAs, the Better Business Bureau, BOMA, the Ottawa Construction Association, and the National Capital Heavy Construction Association were also invited to participate.

We extend our heartfelt gratitude to every business leader who contributed to our survey. Your valuable insights make this study possible and we wish you the very best.

“I see the light at the end of the tunnel!”

“That’s the train coming.”

I was reminded of this quip when I reviewed the results of this year’s business confidence index.

After rocketing out of the doldrums of 2020 and the early days of the pandemic, the index suggests that a whole new host of worries is on the minds of many business owners. It’s not hard to guess what those worries might be: inflation, a tight labour market and rising interest rates. Plans to hire have taken a nosedive and concerns about access to credit have increased. Business market outlooks and confidence in the local economy have soured.

In Ottawa, one of the biggest buzzkills for business confidence is uncertainty. Will federal workers return to the downtown? Do we have a plan if they don’t? What’s the future of our city, so long defined by the federal presence? (Although, as a side note, the survey results suggest that downtown businesses are about as confident as those elsewhere in the region.)

But beyond the obvious challenges of a global pandemic and the (hopefully) transient effects of inflation and a low unemployment rate, this year I wanted to examine some of the more fundamental barriers to growth for Ottawa businesses. What are the things that keep tripping us up?

What we see overwhelmingly is a mismatch between the available talent pool and the needs of business. We see the dearth of skilled tradespeople. And we see government red tape, a perennial bugaboo. We also see concerns about accessing debt and equity financing tailored to the needs of business.

So what do we make of it all? Obviously there is dialogue between business and government that needs to continue. This is particularly true on the immigration and foreign worker file, as well as on the government processes conundrum.

At the very least, I hope this year’s survey and report help to create some light at the end of the tunnel. Solutions will never come easily, but it’s always good to have an idea of what’s coming down the track.

David Coletto Chief Executive & Founder, Abacus Data Board Member, Ottawa Board of Trade

Anne Howland Editor In Chief Ottawa Business Journal

The word ‘permacrisis’ might resonate with many in this city

Let’s shed some light on the good, the bad and the ugly

“

... those things that protected us in the past,

have not seen anything anywhere that looks like what’s going on in Ottawa’

BY MIA JENSEN

Q: What are the strengths that Canadian businesses can leverage for growth and how do Ottawa businesses fit into that?

The short answer is talent. Our immigration policies are the most supportive policies in this country, certainly by all our major political parties. They’re an asset to us in a world where that’s not always the case.

We have the capacity to leverage the talent that’s already here, in the Canadians who have been working in the workforce, and help those that are underemployed here, whether they’re women, Indigenous or people with disabilities.

Then, we have the capacity to attract more people into the country to help fill needs. Those needs are really right across the board in our economy. We have a major labour shortage. Your airport delays, your housing crisis, your health-care crisis, your retail, your restaurants; these are

all affected by the shortage. We’ve got to leverage the talent that’s here to the fullest and we’ve got to make sure that new immigrants have more of an economic opportunity in this country. We want to increase the level of economic migrants coming in so that we can support our social policy and our humanitarian policies. That’s something that we think is a tremendous opportunity.

Here in Ottawa, institutions like Carleton University, University of Ottawa and Algonquin College attract students from around the world. With the diversity and beauty of the city, the opportunities to work in both the public and private sector — plus,

better affordability than you’ll find in other major cities — I think Ottawa has a great story to tell, to attract the talent that is available here in the country, but also around the world.

Q:What are some of the weaknesses and barriers limiting the ability of Canadian businesses to grow? How do they show up locally?

The first thing is a significant backlog in our immigration system that is forcing the government to expedite the approval of applications, going back to the beginning of COVID. For two years, we continued to receive applications but didn’t process them. Many workers’ applications are sitting there. Many foreign students, whose visas weren’t processed fast enough, went somewhere else. Other applications have come in and they’re waiting to be processed.

The department’s trying hard to get that clog unclogged, but it needs to be faster. We need to throw all our resources at it. It’s not only a fundamental issue of people not

‘I

AN INTERVIEW WITH GOLDY HYDER, PRESIDENT AND CEO OF THE BUSINESS COUNCIL OF CANADA

being able to get in, but also a brand issue about how maybe Canada can’t process these things fast enough. Instead, (migrants) go to Australia, the United Kingdom, the U.S. or Europe, all of whom we compete against for talent. While there will always be a lineup of people wanting to come here, we may not be getting the best and the brightest new people we most want.

Secondly, and somewhat surprisingly, almost eight out of 10 people being hired across the country are being hired by publicsector employers. The private sector is competing with the public sector to make these hires. The public sector, particularly the federal public sector, continues to grow. And so, I think that’s something that we have to be cognizant of, because it is having repercussions in the broader economy.

Q:Ottawa, especially downtown Ottawa, is facing a unique challenge with federal employees still working from home. What do you think the future of the federal presence in Ottawa is going to be?

This is an issue that has caused me great concern. As somebody who travels quite a bit, particularly to other

capital cities, I have not seen anything anywhere that looks like what’s going on in Ottawa. The level of return (to work) in many other countries is way higher than what we’re seeing here.

That extends to those unfortunate realities where places that are heavily reliant on the active engagement of the public sector are going to be irreparably harmed as businesses lose their customer base.

If we’re not careful, we’re creating an unhealthy divided society with that 60 per cent who have no choice but to go to work every morning. They’re the people who keep us safe, who take care of us when we’re not well, who keep our lights on. They’re relying on those of us who don’t have to go to work every day to be a part of their customer base. There’s going to be some resentment building over time.

Some say maybe an economic slowdown will take care of that, but nobody wishes for that. Let’s take care of it before something like that happens. I think we have to have an adult conversation about this, from the mayor to the leadership here and in the public sector, to sit down and say, what are we doing here? There’s good intentions, so we’re going to need a mature conversation to help prevent what I think could be a real decline and decay of relationships between people, many of whom are neighbours.

Q: Looking ahead, what

policies can the business community expect from the federal government over the next year?

All eyes are on Minister (Chrystia) Freeland with her budget to respond to the competitiveness disadvantage for Canada. If we cannot offer investment support for businesses to settle in Canada, to employ in Canada, to pay their taxes in Canada, all of these things will have repercussions. We’re watching carefully at what the opportunity is for Canada to be a magnet for both capital and talent. We need to have a clear response to that.

Much of that is about the transition to a cleaner, greener economy over a period of decades that will require a heavy investment in innovation and technology as we go forward. Both are strong suits of the Ottawa business community. In particular, I think about the tech sector, the government research institutes here and the post-secondary institutions. All these can play a very key role in turning the ship around.

We know that Canada’s already home to many multinationals. Take, for example, Finland’s Nokia, which recently chose Ottawa for its latest (research and development) hub. The business community in Ottawa, of all sizes, is very well-positioned to leverage the opportunities that are before us as we build out an economy that is helping us transition to being cleaner and greener.

SALES AND REVENUES

In your last fiscal year, did your sales and/or revenue increase, decrease or stay about the same from the previous year?

n INCREASED n STAYED THE SAME n DECREASED

Most likely to say sales and/or revenue decreased Declining growth companies

67%

Most likely to say sales and/or revenue stayed the same Health and wellness companies

34%

Most likely to say sales and/or revenue increased Aerospace and defence companies

86%

NET INCOME

How does your net income in your most recently completed fiscal year compare to the previous year? Higher, lower or no change?

Most likely to say net income was higher Aerospace and defence companies

86%

Most likely to say net income was lower Declining growth companies

67%

Most likely to say net income did not change Owner/operator companies

36%

FUTURE MARKET EXPECTATION

Over the next year, do you expect the market for your business sector to improve, stay the

PARTNER CONTENT: TAG HR

Flexibility and cross-sector collaboration will win the fight for talent

The challenge of talent acquisition and retention is becoming an ever more pressing issue for local businesses.

Every sector is feeling the impact of the talent shortage, including public, private and non-profit sectors. The ability to navigate this challenge hinges on cross-sector collaboration and innovation.

The federal government could support this collaboration by rethinking immigration policies to provide for an easier transition into Canada’s workforce. Businesses often leave this talent market untapped due to preferences for a particular amount of Canadian working experience, creating a catch-22 for skilled immigrants looking to find

work. Bridging this gap would help understaffed Ottawa companies reach their growth potential.

At the individual business level, it’s all about flexibility. Recently, there’s been a real shift toward a candidatedriven job market and demand for opportunities that prioritize flexibility. For companies that want to grow, this can be a real challenge if they’re not prepared to bend.

Ottawa businesses that haven’t adapted will miss out on top talent when hiring and lose team members to other companies that are willing

same, or worsen?

Most likely to say they expect their market to improve Aerospace and defence companies

71%

Most likely to say they expect their market to stay the same Museums, schools, universities and colleges

31%

Most likely to say they expect their market to worsen Declining growth companies

48%

to offer remote work, flexible hours and tailored incentives. Not having enough talent has profound ripple effects: growth stagnates and the risk of management burnout increases. Being strapped for internal resources also affects the ability of a business to maintain corporate culture and engage meaningfully with the community.

For Ottawa businesses in growth mode struggling with the talent shortage, a few effective strategies can be key. First and foremost, flexibility is everything. Forget about 9 a.m. to 5 p.m. opportunities that are 100 per cent on-site. Companies securing top talent are approaching in-person

collaboration purposefully, offering more flexibility with working hours, and rethinking typical hiring requirements (such as years of experience) to focus on culture fit.

Cultivating an atmosphere of support is also vital to enable team members to bring their best selves to work. Long-term relationships only flourish on a corporate level if we extend understanding and patience. This ethos comes to life through open and transparent communication channels, policies allowing personal days, and wellness initiatives.

“One size fits all” approaches to growth paths and recognition are

also no longer practical. Instead, rewards and incentives must meet the motivations of each team member. Incentives can include such things as professional development allowances, cash bonuses, tuition reimbursement, profit sharing. It’s essential to recognize and adjust when someone’s situation and goals have changed.

For businesses, there are positive ways forward. Companies responding to market changes by listening to what their team members and job seekers want report higher retention levels, which in turn will lead to overall prosperity for our community.

— Priya Bhaloo is chief operating officer at TAG HR.

12-MONTH EMPLOYMENT PLANS

In the next year, do you plan to recruit new employees, keep employee levels the same, or reduce employee numbers?

PARTNER CONTENT: SPROTT SCHOOL OF BUSINESS

Integrating immigrants into the workforce fosters business and economic growth

To better understand the issues preventing business growth and economic stability, the most critical piece of the puzzle is often people. People, meaning the labour force, are the cogs in the wheels that keep things moving. Without people, businesses (and society) simply cannot grow and prosper.

We need to position people in the right professions and roles to maximize their skill sets and potential. Increased global mobilization of skilled workers has become an important topic and,

along with the “Great Resignation” and more baby boomers leaving the workforce, Ottawa is relying heavily on newcomers to fill labour market needs.

However, there is a large portion of the population whose skills are underutilized because they are not working in their trained profession. Newcomers to Canada, often internationally educated and/or trained professionals, face many barriers to practising their professions and often end up working in positions that do not use

the skills our society sorely needs.

In other words, there is a mismanagement and misuse of the newcomer talent pool.

But the problem remains how best to match newcomers’ skill sets to businesses and organizations looking for qualified talent. Qualified talent equals business growth. Full stop.

The inherent problems with integrating immigrants into the workforce are layered and complex and require a multipronged approach to finding solutions

— there is no quick or easy fix.

Most likely to say they expect to recruit Aerospace and defence companies

86%

Most likely to say they expect to keep employee levels the same Museums, schools, universities and colleges

71%

Most likely to say they expect to reduce employee numbers Gatineau/Outaouais respondents

25%

Governments, immigrant-serving organizations and businesses need to adopt strategies that leverage and maximize newcomers’ skills and abilities so they can work within their profession and fuel economic growth.

Given Ottawa’s urgent labour shortage, government and businesses need pathways to new ways of thinking. We need to expose the gaps between the successful employment of skilled professionals and the failure in the Canadian system to attract, foster and retain newcomers, which often results in downward career mobility for newcomers and talent waste.

On the government side, there is a need for additional funding for coaching and mentoring programs, along with policies that shift the

focus from jobs to employment trajectories based on economic needs and the professional identities and goals of newcomers.

There must be the creation of pathways that provide much easier opportunities for newcomers to build on their existing professional skills so they can accelerate to positions that maximize their talents.

Businesses can help by investing in a positive, inclusive and healthy work culture that allows newcomers to feel accepted and thrive. By understanding the cognitive process that can influence and facilitate a cohesive and collaborative working environment, businesses can bring new cultural perspectives to the table. Productive intercultural exchanges improve overall workplace efficiencies and

create a more synergistic work culture overall. Removing cultural barriers fosters inclusivity — in the 21st century, this is critical for businesses to retain talent and foster a growth mindset.

Collaborative problem-solving strategies must go beyond the academic community so that different levels of government, the private sector and immigrant communities can be part of the dialogue of change. — Luciara Nardon is a professor of international business at the Sprott School of Business and Amrita Hari is a director and associate professor with the Feminist Institute of Social Transformation. Their book, “Making Sense of Immigrant Work Integration, An Organizing Framework,” offers a roadmap to addressing the paradox of a global race for talent and talent waste.

ACCESS TO CREDIT

Compared to a year ago, is credit harder to access, easier to access, or about the same?

The world of free capital is now well behind us ... Now is the time to re-evaluate where you have deployed capital and consider whether or not it is generating adequate returns.

— CHRIS MEYERS, PARTNER, WELCH LLP, OTTAWA OFFICE

Most likely to say credit was harder to access

Real estate companies

56%

Most likely to say access to credit was about the same

Gatineau/Outaouais respondents

67%

Most likely to say credit was easier to access

Manufacturing and logistics companies

17% Respondents with 51-75 employees

17%

CONFIDENCE IN LOCAL ECONOMY

Compared to a year ago, would you say that your confidence in the local economy has declined, increased, stayed the same?

PARTNER CONTENT: RGA

In a post-pandemic economy, access to federal services is key for business growth

The federal government plays a critical role in facilitating business growth by providing support and assistance and must make its services easily accessible to businesses, especially in a post-pandemic economy.

The Regroupement des gens d’affaires de la capitale nationale (RGA) supports the growth and development of its members within the region. Of course, with the recent pandemic, the global economy slowed to the point of affecting

our local economies. In the National Capital Region, RGA’s members faced daily challenges and barriers to growth, such as a lack of federal services and a loss of customers.

These two components are essential to the success of small and mediumsize businesses. Last fall, the RGA was at the forefront in asking the federal government to expedite the return of its workforce to downtown offices. For many, this is a critical factor in allowing

businesses in the downtown area to thrive again.

Many of our members struggle to access the federal government services they need, including more borrowing opportunities, grants and technical assistance that could be key to their development.

However, navigating federal services and programs can be timeconsuming, complex and bureaucratic, discouraging businesses that don’t have the resources to take on such work. Consequently, small and mediumsize businesses end up not applying and therefore lack access to programs necessary for their well-being.

Most likely to say their confidence has declined Declining growth companies

85%

Most likely to say their confidence has stayed the same Gatineau/Outaouais respondents

67%

Most likely to say their confidence has increased Museums, schools, universities and colleges

36%

This lack of adequate and accessible support from the federal government, combined with a loss of customers, has hindered growth within our membership. Our members are often pitted against national and international players, making it difficult for them to maintain competitive advantage. While customers are the lifeblood of our members, the unstable economy has decreased demand for services and products, ultimately impairing our members’ revenue and profits. Ottawa’s economy needs these profits to foster transformation and growth. Concrete federal actions to

encourage local economic growth by making grants, loans and assistance more accessible are needed. If businesses have better access to federal programs, they can focus on adopting a proactive approach to identifying and addressing their barriers to growth. They can invest money and time in other aspects of their enterprise, such as training, marketing and improvement of their services.

Policymakers need to do their part by addressing the root causes of these barriers to growth for business. Even small actions, such as simplifying federal services and regulations, make

services more accessible to small businesses and could represent a true advantage for our local economy.

Barriers to business growth should be a significant concern for entrepreneurs and policymakers. We must address these challenges through coordinated efforts between business and government. We believe that working together can create a more supportive environment for businesses to grow and thrive, leading to greater economic prosperity and opportunity in the National Capital Region.

— Marc Chenier is the executive director of the Regroupement des gens d’affaires de la capitale nationale.

W H O W E A R E ?

The Ottawa Board of Trade is an independent, nonpartisan, non-profit business association We are the voice of business and a key advocate for economic growth. Our mission is to cultivate a thriving world class business community in Ottawa, our Nation’s Capital One that drives affordable, inclusive and sustainable city building and community prosperity We are passionate, future thinking business and community leaders with a growth agenda

W H Y I T M A T T E R S .

It is more critical than ever to ensure we have a strong Board of Trade representing the interests of our businesses and advancing the economic growth of our community Businesses are facing more opportunities and challenges than ever One voice can influence decisions, priority setting and policy making more effectively than any one of us can do alone

www.ottawabot.ca

A D V O C A T E S

Advocates for a competitive business environment and affordable, inclusive and sustainable city building

B U I L D S

Builds support for businesses and their employees as they launch, pivot and grow

C H A M P I O N S

Champions Ottawa as the best place to live, learn, work, play and invest

D R I V E S

Drives initiatives that unite businesses, influence positive decision making and grow our community

SECTOR SCORE

BY MIA JENSEN

Q:From what you’ve observed in your role at the Ottawa Board of Trade, what are the barriers to growth facing Ottawa businesses?

The number-one barrier to growth that companies have been identifying in the last eight years — and that has been exacerbated by the pandemic — is access to talent and access to labour. Ottawa companies are facing the same issues as all companies: rising cost of doing business, supply chain issues, et cetera. But what’s special about Ottawa is the greater uncertainty around the future of the downtown core, which is the heart and soul of our culture and our economy.

Businesses might not see that as being specific to them, but it is. It’s a barrier to business when it comes to small businesses, particularly those in the hardest-hit sectors who have taken on copious amounts of debt and who were disproportionately impacted during the pandemic, the occupation last year, and with continued uncertainty in our economy.

Q:With that said, what are the opportunities for growth for local businesses?

I mean, we can’t ignore the fact that we’re the nation’s capital. Because of that, we do have a strong publicsector presence. In addition to that, we have a strong presence in high-growth industries, including the tech sector. We have worldrenowned health and education facilities, which have amenities that we would not otherwise have access to. So all that creates an engine for business growth and innovation.

I would also say that, as the nation’s capital, we have a strong

tourism contingent. Tourism is the front door to every other form of economic development. If somebody comes here to visit, then we may be on their radar to live here, to go to school here, to invest or start a business here.

We have strong collaboration among economic development stakeholders and a strong cultural base that is attractive. That includes our arts and culture scene, our music scene, and our sports scene. We also have our own international airport and, people don’t know this, but the high-frequency rail is coming to Ottawa. It will go from Montreal through Ottawa to Toronto. So we have a lot of things on the horizon and a lot of infrastructure investments taking place right now in Ottawa that are going to come to fruition.

Q: What can the business community expect from the new municipal government over the next year or so?

During the election process, we were really calling on candidates to prioritize not just what the

AN INTERVIEW WITH SUELING CHING, PRESIDENT AND CEO OF THE OTTAWA BOARD OF TRADE

‘It’s been a hell of a three years’

government will do, but how they will go about doing it and how they will behave in a respectful, consultative, consensus-building way. I would say that, to date, even though it’s early, they’ve been able to demonstrate that. They have demonstrated that they are committed to working collaboratively to build an inclusive and sustainable growth agenda for the City of Ottawa, to leverage our greatest opportunities, including creating foundations to elevate our quality of life as it relates to affordability, health care, housing, an integrated transit system, and a vibrant downtown.

Q:What issues will you be emphasizing with governments at all levels this year?

What we’ll be emphasizing at the board of trade is for the government to create a competitive and predictable environment in which businesses can grow through priority-setting policy and programs. That’s the high level. What we expect

is for the levels of government to work collaboratively with each other and other business and community leaders to fulfill their responsibility to create a competitive, predictable environment in which businesses can grow. Committing to a growth agenda and leveraging the ingenuity and resilience of businesses will drive community prosperity and position us to tackle our biggest challenges, including climate, health and inclusion.

The other thing I’m going to say is that we expect governments to conduct themselves in a way that builds public trust and protects the democratic process upon which our country is built.

In general terms, I’ll say it’s been a hell of a three years. I started this job the same day that the pandemic started. Prior to that we were talking about the pace of change, the global economy and planning for the future. Then, all of a sudden, all those things that protected us went away. Now those things that protected us in the past, like the downtown presence of the federal government, have become our Achilles heel.

The business community has demonstrated a tremendous amount of resilience and innovation throughout the pandemic. Now we’re in a position where we can leverage the lessons that we’ve learned. I feel like I’ve been saying this over and over, but this gives us an opportunity and, frankly, a responsibility, to build forward better in a way that we were maybe never motivated to do without a pandemic. How can we integrate climate action, economic impact and inclusivity into the decisions that we’re making going forward? How do we reimagine the downtown so that it is vibrant and diverse and can attract young people to our city as a multifaceted area instead of just a business district? Those are decisions that we may be forced to make but that also provide an opportunity for us to build, not just a city, but a region to its fullest potential.

It’s complex, so we’re making sure that we’re working together so we can optimize our opportunities and to understand that we are competing in a global economy. As the nation’s capital, we have an opportunity and a responsibility to be leaders right now.

Co m m i t te d to e xce l le n ce .

Co m m i t te d to yo u .

4 KEY REASONS TO JOIN YOUR LOCAL BOARD OF TRADE

Getting involved is essential for the growth and success of any business. Whether you ' re starting a new business or scaling an existing one, it is critical to stay connected with business and community leaders. Membership is a solid strategy for your business and talent development. Here are four tips for leveraging the support of your board of trade.

BUILD UP OTTAWA

Enhance the quality of life in our region for your family, your customers, your employees and for the next generation of local leaders

01

BUILD YOUR NETWORK

Connect with clients, partners and promoters at events and meetings that inform and influence, building business and community success.

BUILD YOUR RESOURCES

Leverage programs and policies that generate new opportunities, reduce barriers to growth, increase your business brand and save money

02 0

BUILD YOUR BUSINESS

Grow your business, your team and your profile b being involved in your local business community working together with leaders for a bright future

ACCELERATE YOUR CAREER

without leaving your job

Sprott’s Professional MBA Program is designed specifically for busy professionals, with a convenient schedule and a focus on the knowledge, skills and vision needed to lead with purpose. Learn in a dynamic and active environment from world-class faculty and classmates who bring multidisciplinary perspectives to discussions - all while balancing your work-life demands.

Make your next career move. sprott.carleton.ca/pmba

Partners in Ottawa’s prosperity

At Carleton University’s Sprott School of Business, we work in partnership with business, government and community organizations to cultivate talent and share knowledge that positively impacts the economic development of Ottawa and the National Capital Region. Learn more by visiting sprott.carleton.ca/ partners-in-ottawas-prosperity.

Experiential learning benefits organizations and students

As organizations seek to find new ways to attract top talent in today’s competitive job market, experiential learning serves as a powerful talent development and recruitment tool. Not only do students gain insights to career pathways, industries and organizations, but also employers are able to witness

students’ leadership, teamwork and other skills in action.

Business education today takes place in a variety of learning environments. Experiential learning provides post-secondary students with the opportunity to work collaboratively with business and community organizations on strategic projects and challenges. Students apply their knowledge and creativity to deliver innovative solutions that positively impact organizations and communities.

For example, the Sprott Student Consulting Group (SSCG) helps organizations address a wide array of challenges through no-cost consulting services provided by faculty-guided student teams. The composition of the student team is tailored to the organization’s specific needs.

Sprott student consultants have worked on a diverse range of projects, including business continuity and recovery planning, event management, strategies for growth, fund development strategy, market research, among others.

Andrew Webb, assistant professor of International Business and SSCG academic director at the Sprott School of Business, calls the model a “win-winwin” for the value it provides to students, organizations and the community.

The Sprott School of Business and EY Canada work in collaboration to foster talent and leadership development within the SSCG. EY professionals, in providing mentorship and coaching to Sprott student consultants, gain early access to their future workforce and valuable insights on their motivations and way of thinking

The Nicol Building, home to Carleton University’s Sprott School of Business

to inform their practice.

In addition, experiential learning provides opportunities to tap into the collective classroom knowledge to test thinking for your organization.

For example, the Sprott School of Business works with businesses and organizations to develop cases for use in courses and case competitions. Case-based learning trains students to find creative solutions that can spark innovation in the workplace.

Organizations can also benefit from new perspectives and fresh approaches to address current challenges and opportunities by working with Sprott faculty to develop project-based learning opportunities for their courses.

Work-integrated learning helps keep talent in the region

As more workplaces move to adopt virtual work as a permanent option for workers, job opportunities for students and graduates are no longer limited by distance.

“We are working to ensure that students know how to network as far and wide as possible, because their next opportunity can come from anywhere around the world,” said Lisa Lawrence, team lead of Sprott’s Business Career Management Centre.

This trend is increasing pressure on organizations’ recruitment strategies as workers are not bound by location. They can live near their families or opt to live in more affordable locations without sacrificing their careers.

Many students, including international students, wish to remain in Ottawa after they graduate. Workintegrated learning opportunities –such as co-operative education and internships – enable companies in the Ottawa region to introduce students to all they have to offer and to start building relationships with prospective talent early on, while they are living and studying in the region.

For instance, MBA students possess a variety of academic and technical

backgrounds. This offers local companies access to a diverse pool of multidisciplinary and multilingual talent.

In addition to MBA internships, students in Sprott’s Master of Accounting, Master of Finance and Bachelor of International Business programs also complete internships as part of their programs, while Bachelor of Commerce students can participate in co-op.

Carleton University offers a variety of convenient opportunities to recruit students and alumni for co-op placements, internships, part-time, fulltime and new graduate positions.

Talent retention and succession planning through lifelong learning

The disruption of recent years has seen the world of business become exponentially complex. Organizations and businesses require people with the knowledge, skills and vision to lead them through this period of transformative change and into the future.

CARLETON UINVERSITY

• Innovative leadership and management education

Sprott’s Professional MBA (PMBA) is designed intentionally for busy professionals. To enable students to continue working and balance life’s many demands, courses are delivered in an intensive, executive format with classes on Fridays and Saturdays of alternating weeks.

Sprott’s expert faculty delivers an integrated management curriculum with a focus on strategic leadership concepts and complex decision making. Courses reflect the current needs of organizations and market trends.

Students in the PMBA have access to a professional coach in Sprott’s coaching community for personalized and focused professional development support.

PMBA graduates often identify the diverse, cross-disciplinary perspectives of class discussions as one of the most valued aspects of the program.

“Whether it’s engineering, science, healthcare, environmental and social

governance – you’re learning from people who are subject matter experts in their fields,” said Mohammad Al Jarrah, PMBA/21. “The points raised are very different from what you’d get in a room of like-minded individuals. The discussions are richer and more robust.”

• Next generation financial education

As technology continues to grow its influence on business, so does the need for professionals who bring functional expertise in combination with skills in technology and analytics.

Starting this fall, the Sprott School of Business will offer its new Master of Finance (MFin) program to develop the next generation of financial professionals.

“Students interested in careers in Finance now have the opportunity to learn the most up-to-date financial knowledge and data analysis skills required by the industry,” said Yuriy Zabolotnyuk, MFin program director and

associate professor of Finance at the Sprott School of Business.

“Our faculty are excited. Employers have been asking for this and we’re ready to deliver.”

The curriculum focuses heavily on the CFA® Institute Body of Knowledge, equipping students with deep knowledge of investment analysis, investment management, risk management, sustainable finance and ESG.

This is bolstered by skills in applied data analysis and proficiency in the latest industry tools and technology to prepare graduates for success in a highly competitive job market.

MFin students will gain practical experience through an internship and the opportunity to participate in the Sprott Student Investment Fund, a student managed, real investment portfolio currently valued over $2 million.

Reach out to the Sprott School of Business to learn more about opportunities for lifelong learning and talent development.

Understanding social media’s influence on the economy

By: Alysha A. Cunningham

What do Tesla and Meta have in common? One manufactures electric vehicles, the other operates social media platforms. Yet economically, their connection is closer than it appears.

Social media’s influence on financial markets has connected the economy in unpredictable ways. Tweets from users with little to no expertise in finance have proven to have a ripple effect on the stock value of unrelated companies. When the Tesla stock drops, so does Meta’s — along with 200 other firms.

This relationship between social media discussions and finance is what Carleton University researcher Mohamed Al Guindy has coined the Social Internetwork.

Using artificial intelligence (AI) to analyze hundreds of millions of financial tweets regarding publicly traded companies, Al Guindy has mapped out a new nexus of the economy that illustrates which companies’ financial worth are connected, simply based on social media discussion.

The result? A tool that investors, regulators and governments can use to help predict economic shocks, as well as predetermine the impact of intervention efforts and market manipulation.

“With this tool we can see that the average firm is now financially connected to over 600 other companies,” says Al Guindy, assistant professor of finance and financial technology, or FinTech, expert with Carleton’s Sprott School of Business. “That is 600 companies that can be affected by as little as one tweet.”

Social media’s influence & the power of public perception

What is novel is that these economic

connections are not established by the companies themselves, but instead through public perception. The companies may not be in the same market or share manufactures or suppliers — instead their connection is determined by what Al Guindy describes as the “wisdom of the crowd.

In comparison, previous studies have limited the number of economic connections for a company to a mere dozen or so — excluding industry links. Now with social media’s influence, Tesla and Meta have more in common than Tesla and another auto manufacturer like Ford.

“These issues are important to the understanding of financial crises as well as the understanding of shocks to the economy,” says Al Guindy.

His research also sheds light on how financial shocks spread in the economy, and which companies are most influential. This information provides crucial context for policymakers when planning economic intervention programs.

“We’re looking at more intricate relationships and connections within the economy,” explains Al Guindy.

“We also know the strength of the connections; not all are equal, and some are stronger than others. All of this is captured in the network in ways that were not possible before.”

By examining tweets about the most central and prosperous firms, the Social Internetwork has uncovered that 92 per cent of the economy is connected indirectly. A single incident in one industry can trigger a ripple effect that spreads across seemingly unrelated sectors.

“These other connections matter as much as industry connections, or even more so,” says Al Guindy.

The network also illustrates how when a central company is doing

poorly, it trickles down to the rest of the economy and is essentially mirrored. But the reverse is not true — what happens on the periphery doesn’t affect the centre.

“This leads our knowledge in terms of financial networks,” says Al Guindy.

“We know that financial networks are important but now we are able to construct something that is a lot deeper, a lot denser using the wisdom of the crowd.”

Using this approach also ensures that the network representation captures the various economic connections among companies as seen by investors. These networks evolve over time and rapidly change in response to financial and economic changes.

Dynamic insights into the nature of financial networks

In response to the fluctuating nature of the economy, Al Guindy is working towards making the data available in real time through Carleton’s new Social Media & Finance AI Lab, which will be opening this summer. Both the lab and the ability to analyze tweets in real time will provide valuable insights into the dynamic and ever-changing nature of financial networks.

“We want to look at dynamic networks in order to see movement, not just a static picture,” explains Al Guindy. “The goal is to construct dynamic and time varying networks of the economy.”

Currently it takes a month to generate the static network for one year of data. The new lab will bring in tremendous computing power with the ability to analyze tweets on a daily basis — a first in Canada.

“This work is not only groundbreaking, but it also positions Carleton as a global leader in the space of social media finance,” says Al Guindy.

LAUNCH YOUR FINANCE CAREER INTO THE FUTURE

Sprott’s Master of Finance will equip you with a deep understanding of advanced financial concepts and the skills for complex data analysis, putting you at the forefront of the next generation of financial professionals. Upon completion of the program, you’ll be able to pursue the globally-recognized CFA® designation and a wide range of career opportunities in finance and investment management.

Make your next career move. sprott.carleton.ca/mfin

BARRIERS TO GROWTH

Which of the following are the most significant barriers to growth for your business?

n MISMATCH BETWEEN TALENT POOL AND BUSINESS NEEDS

BIGGEST BARRIER FOR: Aerospace and defence

NOT A BARRIER FOR: Arts; About to transition or sell

n AVAILABILITY OF SKILLED TRADESPEOPLE

BIGGEST BARRIER FOR: Construction

NOT A BARRIER FOR: Museums, schools, universities and colleges

n GOVERNMENT RED TAPE

BIGGEST BARRIER FOR: Aerospace and defence

NOT A BARRIER FOR: Gatineau/ Outaouais; A startup

n AVAILABILITY OF FUNDING OR FINANCING TAILORED TO YOUR NEEDS

BIGGEST BARRIER FOR: A startup

NOT A BARRIER FOR: Professional services

n COST OF INPUTS

BIGGEST BARRIER FOR: Museums, schools, universities and colleges

NOT A BARRIER FOR: Banking and financial services

n GOVERNMENT REGULATIONS

BIGGEST BARRIER FOR: Aerospace and defence

NOT A BARRIER FOR: Construction

n LIMITED CUSTOMER BASE

BIGGEST BARRIER FOR: Declining growth

NOT A BARRIER FOR: 76-149 employees

n TOO MUCH COMPETITION

BIGGEST BARRIER FOR: Construction

NOT A BARRIER FOR: Aerospace and defence

n LACK OF MARKETING OF OTTAWA GLOBALLY

BIGGEST BARRIER FOR: Museums, schools, universities and colleges

NOT A BARRIER FOR: Gatineau/ Outaouais; About to transition or sell

n AFFORDABLE REAL ESTATE

BIGGEST BARRIER FOR: Gatineau/ Outaouais

NOT A BARRIER FOR: Aerospace and defence

n ZONING AND PERMIT PROCESSES AND RESTRICTIONS

BIGGEST BARRIER FOR: Real estate

NOT A BARRIER FOR: Not-forprofit/association; Manufacturing and logistics; Museums, schools, universities and colleges; Aerospace and defence; Virtual only

n ACCESS TO GLOBAL MARKET

BIGGEST BARRIER FOR: Aerospace and defence

NOT A BARRIER FOR: Banking and

financial services; Construction; 6-10 employees

n PUBLIC TRANSIT

BIGGEST BARRIER FOR: Gatineau/ Outaouais; Manufacturing and logistics

NOT A BARRIER FOR: Aerospace and defence; Virtual only

n CRIME AND COMMUNITY SAFETY

BIGGEST BARRIER FOR: Travel, tourism and hospitality

NOT A BARRIER FOR: Technology; Real estate; Construction; Museums, schools, universities and college; Aerospace and defence; Arts; 76-149 employees; Virtual only

n LACK OF MENTORS OR AN ECOSYSTEM

BIGGEST BARRIER FOR: About to transition or sell

NOT A BARRIER FOR: Arts; Aerospace and defence; Museums, schools, universities and colleges; Construction; Banking and financial services; Retail

n CYBERSECURITY AND RISKS

BIGGEST BARRIER FOR: Banking and financial services

NOT A BARRIER FOR: About to transition or sell; Declining growth; Gatineau/Outaouais; 21-50 employees; Arts; Aerospace and defence; Museums, schools, universities and colleges; Manufacturing and logistics; Construction

n ACCESS TO ADVISORY SERVICES

BIGGEST BARRIER FOR: Arts

NOT A BARRIER FOR: Technology; Travel, tourism and hospitality; Notfor-profit / Association; Banking and financial services; Manufacturing and logistics; Museums, schools, universities and colleges; Aerospace and defence; Declining growth; About to transition or sell

When the biggest barrier to growth is a mismatch between talent pool and business needs, we need to think beyond talent attraction. Is your screening process thorough enough to find the right match? Is the process efficient enough so that you are not losing top talent to a competitor?

— PAUL GUINDON, CEO, COMMISSIONAIRES OTTAWA

Commissionaires and Bluink Ltd. partner to make background checks simpler – and identity theft a thing of the past

A secure digital smartphone wallet gives users control over their personal information

We’ve all done it –emailed a photo of our ID documents to who knows where to confirm our identity. Confirming our identity securely and safely in the digital age is a complex and fraught task the average person doesn’t fully understand, so they do what’s quick and easy, and get on with their day. If you’ve become aware of the risks of sending sensitive information online, you’re in good company.

Enter Commissionaires, a Canadawide not-for-profit security organization that has been operating since 1925. For more than 15 years, it has managed what has become the largest digital fingerprinting infrastructure in Canada with 50+ offices from coast to coast. Not only does Commissionaires process 150,000 certified criminal record checks per year (which includes fingerprint captures), but it also offers criminal record name checks through an online portal and a full suite of background screening services (credit, education, employment history, references, social media checks, and more).

With many veterans and former RCMP officers employed by Commissionaires, they know a thing or two about information security risks and how to mitigate them — especially when it comes to fingerprinting and background checks.

As Commissionaires continues to focus on making enhancements to its fingerprinting and background screening systems and processes, the organization recently kick-started a $1.5 million IT modernization project. While this plan was in the works well before the pandemic,

Commissionaires views the unprecedented surge in online activity since 2020 as validation for the need to have faster, more accessible and more mobile-friendly services, without compromising security, privacy, regulatory compliance, and accuracy.

Fingerprinting

“Many of our clients have asked for a seamless offering where either we manage their entire process, or they manage their own process through a one-stop portal,” said Cheryl Fifer, chief operations officer at Commissionaires Ottawa. “Over the

past two years, we’ve embarked on a modernization of our platform that differentiates our service offerings in the market by being responsive to the customer experience they want, but also responsive to their concerns about privacy and security.”

The challenges of background checks

With so many types of screening checks requiring different forms and following different processes, screening people can be a complicated and onerous task for everyone involved. Part of the Commissionaires modernization process was finding a way to streamline the system – a solution they found in Ottawa-based Bluink.

“We landed on this technical gem quite by accident,” said Fifer. “Turns out Bluink was doing many of the same things we were doing in the E-identity space.”

Steve Borza is CEO and president of Bluink, a tech company that specializes in applying biometric solutions to identity, cyber security, and encryption problems. Bluink’s smartphone based “eID-Me” app allows customers to be verified, then gives them a secure digital “wallet” to store digital versions of their ID, like a driver’s license, passport, and health cards.

“Our process uses machine learning to look at your documents and compare your ID to a selfie you take,” said Borza.

It’s a simple description that’s packed with many critical features you’ll find in eID-Me: user consent, oneto-one verification, a decentralized identity, and the ability to own and control your personal information rather than sending it offshore into an online abyss. The machine-

learning component eliminates the need for a person — who might sell your information — to physically inspect your documents and do the verification. And the process is practically instantaneous.

By integrating Bluink’s technology into Commissionaires’ new platform, the team is creating a game-changing solution for clients.

“When you look at how 90 per cent of IDs are transmitted, it’s clear there’s a significant lack of awareness in the marketplace,” said Borza. “Someone scans their passport or their driver’s licence, attaches it to an email, and flips it to somebody. It’s quite concerning, but it’s the norm. The potential for identity theft is enormous.”

Borza believes it’s up to companies like Bluink and Commissionaires to educate the marketplace about these risks.

A faster, safer future

If you’re getting the sense that Commissionaires and its tech-partner Bluink are very passionate about what they do, you’d be correct. Together, the pair hope to alleviate the drawbacks of the traditional background check system, an issue that was on full display throughout the pandemic.

“The whole thing was so ridiculous,” said Borza, reflecting back on the backlog of healthcare workers who couldn’t start work during the pandemic because they needed a background check. “It wasn’t just impacting a single person — it was impacting our healthcare system’s ability to function. And we had the technology that could solve it.”

“Combining Commissionaires’ one-stop portal with Bluink’s eIDtechnology creates a safe, secure, and seamless solution,” said Fifer.

Borza agrees. “We both offer a service in the same space,” he said. “This partnership combines the best of what we both can bring to the table.”

Consumers concerned about the security and privacy of their personal information should be glad that Bluink and Commissionaires found themselves “in two different lanes swimming to the same location” as Fifer says, instead of two ships passing in the night.

A certied criminal record check with digital ngerprints is the most reliable standard for screening job applicants.

Commissionaires can meet all your security clearance or pre-employment screening needs: digital ngerprinting, criminal record checks, reference and employment history checks, and credit record checks. For even greater convenience, a mobile service for group and VIP processing is also available.

Thank you for voting us as your #1 CHOICE for digital ngerprinting and background screening!

INTERVIEW WITH

AT

BY MIA JENSEN

Q:What trends are you keeping an eye on in Ottawa real estate in 2023?

There’s a number of things we’re watching. One is clearly what’s happening with the office market, specifically downtown. As we all know, we’ve come through the pandemic and everybody is trying to figure out what this new kind of hybrid work looks like to them. I wish I could say that it was sorted and it wasn’t something that we’re watching closely, but it clearly is something that’s having an impact on the office market.

The other thing we’re looking at is, we’re a big landholder in Ottawa with the intent of building purposebuilt rental and right now, market conditions both on the equity and debt side are a little bit challenging. We’ve gone through a period of increased construction costs due to supply chain and labour (issues), as well as a significant increase in interest rates, which is impacting construction financing. So it’s a relatively challenging market to actually develop in right now.

We’re big believers in Ottawa long-term and we think this is a

temporary spot we’re in in the market. But, nevertheless, we were hoping to have a number of projects on the go by this time already this year. We’re working hard to see if we can get a proformative to make sense to get projects started, because certainly on the side of purpose-built rentals, we’re seeing significant demand and a real disequilibrium between supply and demand. There’s a bit of a disconnect in the market that we’re hoping to take advantage of, quite frankly.

Q: What are some of the challenges for real estate companies in the Ottawa area?

There’s a shift in how people are using office space. I wish you could say that there’s really one consistent

kind of approach, but it’s all over the map, both public and private sector. Tenants are looking at the challenges that they are facing getting employees back and trying to find the right balance between bringing people into the office and allowing people to work remotely. And so I think we’re still 18 to 24 months out before that really starts to take shape, something that we can predict and measure.

I think the office market is going to be challenging for the next couple of years. It’s a bit exacerbated in Ottawa by the federal government and what’s happening with their return to office, but I think the lack of clarity around what the feds are doing is making it particularly challenging, just because they’re such a significant tenant in the Ottawa markets.

I think the private sector is a bit clearer in terms of moving forward with expectations in terms of hybrid and what’s going to be each company’s view as to what the appropriate hybrid kind of approach is. We’re starting to see private-sector tenants make some commitments and they’re further ahead figuring this out than the federal government is. So I think that the big challenge for the office market is the uncertainty … it impacts values and impacts

‘There’s a disconnect in the market right now’

AN

HUGH GORMAN, CEO

COMMERCIAL PROPERTY MANAGER COLONNADE BRIDGEPORT

liquidity and it impacts cash flow. So you have got to be a really strong operator these days to make sure that you’re maximizing cash flow from your property, especially when you’ve got exposure to the federal government. So I think the office market is going to continue to be challenged.

On the development side, especially as it relates to purpose-built rental, we’re seeing a real disconnect because there’s huge demand but not a lot of new supply, given the cost escalations and that kind of thing of development margins on projects. So we’re in a really kind of strange time as it relates to development for purpose-built rental.

Q:What about some of the advantages and opportunities locally?

I fundamentally believe that in the market long-term there’s going to be lots of demand and I don’t think we’re going to be over-supplied. I’m very confident in our ability to get back to development. I just think it’s going to take some time, into the latter part of Q3, Q4 and potentially into 2024, before we start to see developers starting to get back into full-on development mode.

There’s a disconnect in the market right now. There’s a lot of concern about what’s happening in those different sectors and commercial real estate and with good reason. But if you understand the market and you’re a big believer in the long-term prospects, it’s probably a really good buying opportunity. Values have certainly come off, especially if you’re buying with less debt and more cash. I think there’s a significant buying opportunity and, on the development side, for multi-family.

There’s also a really significant pent-up demand and a real lack of new supply and I think that those who get going sooner than later are going to be the beneficiaries of being bold when the market’s a bit skittish. You’ve got to look at the long-term trend and, if you’re a believer in it, which we are, then you should be active and take advantage. That’s kind of our view.

Q: How has the behaviour of your Ottawa-area clients changed in recent years? What trends have you noticed from businesses regarding leasing, investment and development habits?

On the equity side, both in terms of high-net-worth investors and institutional investors, I would say generally what we’re seeing is that the institutions tend to act relatively consistently. There’s not a lot of compensation for being first and taking a bunch of risks. The market is perceived as being risky right now, so they’re raising money, but they’re being very cautious about how they deploy it. I think there’s a significant amount of pent-up institutional capital that’s going to be available and they’re kind of sitting on the sidelines, taking a wait-and-see attitude.

Those that own assets are not panicking and they’re not selling. They know it’s going to be bumpy for a while, but they can weather the storm and they’re not going to take a hit on the valuation of an asset because they’re not in a panic to sell it. They’re patient on both sides of deploying capital and repatriating capital, because values are off. So they’re looking for opportunity on

the buy side and they’re looking for a deal; they’re patient and are not sellers because valuations are off. Assets that they’re selling might be inside a closed-end fund and, if it’s coming to its sunset date, they’ll just extend the fund versus selling into a down market.

There’s lots of private and institutional optimism about longterm prospects for Ottawa but lots of uncertainty in the short-term. Nobody’s really doing a heck of a lot right now. It has to be a screaming good deal on the buy side and it’s patient capital on the sales side.

Q: What do you see as the future of the federal presence in Ottawa?

Well, it has a significant impact. You know, they control 50 per cent of the inventory in the market and so they’re by far and away the single largest tenant and so as they go, so too do the markets. They’re an important element of what happens in the markets and I don’t think they’re doing themselves any favours. Treasury Board came out and said everybody should be coming back a couple of days a week. It’s not happening to the same degree we expected when the Treasury Board announcement came out in March and we’re not seeing building occupancies increase that dramatically. And so my view is that we need more leadership from the federal government on this. It will get itself worked out over time, but it’s taking longer than it should and, as a result, the Ottawa office market specifically is disproportionately impacted because of the lack of clarity around the federal government strategy around its people and hybrid work policy.

City planning experts urge Ottawa to ‘embrace

BY DAVID SALI

Declaring that the era of workers commuting downtown five days a week “has come and gone,” a panel of urban planning experts said recently it’s time for business and government leaders to accept that hybrid work is here to stay and devise new ways of using empty office space to re-energize Ottawa’s core.

Stephen Willis, the leader of engineering firm Stantec’s national urban planning practice, told the sellout crowd of 260 who attended this year’s City Building Summit at the Shaw Centre that downtown merchants can no longer rely on a steady flow of office employees to drive sales.

“Foot traffic three days a week is not enough to keep them in business,” he said.

Willis, who studies urban planning trends across the country, said cellphone data and other metrics suggest the volume of people on Canadian downtown streets on any given day is only about 50 per cent of what it was before the pandemic triggered a massive shift to remove work.

But Willis said the migration away from the office actually began a couple of decades ago. New office construction has been declining in Canada and the U.S. for years, he explained. Yet most major downtowns are still “too officedependent,” he said, and civic leaders are only just beginning to think about how urban cores can be reshaped to adapt to a hybrid work world.

“The actual value of office buildings is declining across North America,” Willis said, pointing to cities such as Washington, D.C., that have lost hundreds of millions of dollars in commercial property tax revenue.

“What the pandemic did is it took a long-term trend line and put it on steroids.”

Willis and the other members of the panel – Canadian Urban Institute president and CEO Mary Rowe and Canada Lands Company chief executive Stephan Dery – said downtowns are the lifeblood of the Canadian economy. Without pedestrian traffic flowing through their arteries, communities will soon atrophy and eventually die.

“The fate of the country hangs on how our cities do,” Rowe said. “That’s all there is to it. If we don’t invest in our cities, if we don’t find new strategies for our cities, the Canadian economy and the Canadian social fabric is not going to hold.”

and believes conversions can be a catalyst for redevelopment in Ottawa’s core.

“I think that’s the only thing we can do,” Dery said. “Canada Lands is definitely willing to work with the federal government to take some of those buildings and bring them into the (housing) market to make (downtown) a vibrant place where people want to live and not only come to work.”

While several former office buildings in downtown Ottawa have been turned into residential projects, real estate experts say such conversions are easier said than done – in part due to the prohibitive cost of gutting offices and rebuilding them from scratch.

During the audience question period, local real estate executive Shawn Hamilton suggested that Canada Lands could sell some of the obsolete office properties it acquires to developers at discounted rates in exchange for controlled returns.

One of the most talked-about options – converting old, tired office highrises into multi-residential housing complexes – is gaining traction in centres like Calgary that experienced economic turbulence even before the pandemic, the panellists noted.

Dery, who was previously in charge of the federal government’s 65-millionsquare-foot office portfolio, said conversions offer “the opportunity of a lifetime” to reinvigorate downtowns like Ottawa’s that are “9-5 most of the time.”

He told the audience that the Canada Lands Company – a self-funded Crown corporation that buys surplus federal government properties and redevelops them into housing and mixed-use communities – is bullish on the concept

Hamilton said that would help “derisk” the conversion process, making it more financially attractive for private real estate companies “so that you can really help kickstart development and contribute to affordable housing.”

Dery was non-committal, saying Canada Lands is “open to looking at other ways of doing things,” while noting that the company is self-financed and must remain economically “viable.”

For her part, Rowe urged the municipal planners and real estate developers in the crowd not to waste time devising grand strategies for longterm development.

“The city needs to find ways to make it easier to do unusual things,” Rowe said. “You need to embrace the chaos side of this and try to temper your expectation that it’s going to be predictable and planned out. Do not underestimate the opportunity to just build this back block by block by block.”

the chaos’

“Do not underestimate the opportunity to just build this back block by block by block.”

TECHNOLOGY SECTOR

When it comes to tech talent, it can be hard to know where Ottawa stands

While Ottawa’s tech sector has experienced its share of peaks and valleys, the recurring theme remains the perpetual need for top talent. Calls for attracting the “best and brightest” to the sector persist during both good and bad times. But surely there must be more nuance to such calls for action, when every tech region worth its salt would adopt similar strategies.

For every brain drain, there has to be a brain gain somewhere. A critical issue for the future of Ottawa’s tech talent strategy must then be an assessment of where we stand in relation to other leading tech hubs.

An oft-quoted statistic that ostensibly puts Ottawa’s tech sector in a very favourable light is the metric of concentration in tech employment. Sometimes referred to as “tech density”

— the number of tech employees as a percentage of total urban employment — Ottawa comes in at 11.6 per cent, according to CBRE’s 2022 North American Scoring Tech Talent report, placing our city ahead of all North American urban regions surveyed, including San Francisco.

At first glance, this data point leaves the impression that all is well in the local tech sector. But is it? An important but overlooked aspect of this data is that CBRE counts tech employment by occupation, irrespective of whether

that talent works for the tech industry or in non-tech sectors, including government. Based on CBRE’s 2022 numbers, Ottawa’s total tech employment looks impressive indeed: 81,200. Yet, as a few keen observers of Ottawa’s tech sector have pointed out, the CBRE numbers diverge significantly from the tech employment data collected by Statistics Canada.

expansive definition of tech employment, tech talent workforce gains are noticeably more significant in other Canadian urban regions when compared to Ottawa. In terms of net tech job growth, cities such as Toronto, Montreal and Vancouver scored impressive five-year growth rates (36.5 per cent, 19.3 per cent and 47.9 per cent, respectively) as compared to a 1.5 per cent rate for Ottawa.

According to StatCan, Ottawa’s tech industry averaged roughly 46,000 employees between 2016 and 2020. This discrepancy suggests a very different interpretation of the robustness of Ottawa’s tech sector.

Notwithstanding the inconsistencies of measuring tech density, another significant metric worth considering is how Ottawa is faring on the net growth of tech jobs relative to other Canadian cities considered as tech hubs. Through this data lens, another picture emerges. Even when adopting CBRE’s

An even more telling statistic would be whether Ottawa has been experiencing a brain drain or brain gain relative to other regions. Unfortunately, this type of data is extremely difficult to come by. A potential indicator of brain drain or gain would be a survey of recent STEM grads coming out of our post-secondary institutions. If this data is collected, it has not been made publicly available. If new graduates with highly desirable specialized skills are, in fact, leaving Ottawa for greener tech pastures elsewhere, it would be yet another indicator of the state of the city’s tech sector. Perhaps the most insightful thinking on what it takes for regions to develop effective talent strategies comes from the annual Global Talent Competitiveness Index published by INSEAD. It is surprising that this report receives little, if any, coverage in Ottawa given that our city fares quite well in the global standings, ranking in the top quartile and one of 17 cities from North America. The authors of the report contend that a region’s talent strategy is multi-dimensional and about much more than “attracting the best and the brightest.”

In these turbulent times, it would be well worth the effort by Ottawa’s economic development organizations to adopt the relevant benchmarks to better position our region as a top talent contender.

Luc Lalande is the innovator-inresidence at the Rideau-Rockcliffe Community Resource Centre.

PLANS FOR GROWTH

Over the next 12 months, do you plan to:

LOOK FOR STRATEGIC PARTNERSHIPS

INTRODUCE A NEW PRODUCT OR SERVICE

BREAK INTO A NEW MARKET

SEEK DEBT OR EQUITY FINANCING

n LOOK FOR STRATEGIC PARTNERSHIPS

MOST LIKELY:

• Museums, schools, universities and colleges 86%

• Not-for-profit/association 80%

• Arts 80%

LEAST LIKELY:

• Retail 20%

• Gatineau/Outaouais 33%

• South Ottawa 38%

n INTRODUCE A NEW PRODUCT OR SERVICE

MOST LIKELY:

• Technology 62%

• Arts 60%

• In growth mode 59%

LEAST LIKELY:

• Construction 23%

• Banking and financial services 27%

• Owner/operator 31%

n BREAK INTO A NEW MARKET

MOST LIKELY:

• Museums, schools, universities and colleges 57%

• Health and wellness 52%

• A startup 51%

LEAST LIKELY:

• About to transition or sell 15%

• Manufacturing and logistics 17%

• Retail 18%

The current zoning and permit processes in the City of Ottawa constitute barriers for a number of reasons. First, it takes several months (sometimes years) for a project to be approved. It can take even longer if rezoning is required. Second, there are significant costs associated with any development, most of which are incurred prior to the start of construction and without any guarantee of success. Third, at the present time, the city and the province are not on the same page, especially when it relates to residential development.

— TIM THOMAS, PERLEY-ROBERTSON, HILL & MCDOUGALL LLP

n SEEK DEBT OR EQUITY FINANCING

MOST LIKELY:

• A startup 49%

• Aerospace and defence 43%

• Arts 40%

LEAST LIKELY:

• Museums, schools, universities and colleges 7%

• East Ottawa 8%

• About to transition or sell 8%

n EXPAND YOUR PREMISES OR FACILITIES

MOST LIKELY:

• Aerospace and defence 71%

• Construction 36%

• Manufacturing and logistics 33%

LEAST LIKELY:

• Professional services 5%

• Owner/operator 6%

• Declining growth 7%

n ACQUIRE ANOTHER COMPANY

MOST LIKELY:

• Aerospace and defence 57%

• Gatineau/Outaouais 42%

• 21-50 employees 29%

LEAST LIKELY:

• Owner/operator 3%

• 6-10 employees 3%

• East Ottawa 6%

SUSTAINABILITY / DIVERSITY AND INCLUSION

How has your company incorporated the following two issues into your business objectives?

SUSTAINABILITY AND CLIMATE CHANGE OVERALL RESULTS

36% 40% 24%

n TOP RESPONDENTS: WE HAVE IDENTIFIED THE BENEFITS AND BELIEVE IT’S CRITICAL TO OUR SUCCESS

•

•

•

n TOP RESPONDENTS: WE’RE JUST FIGURING OUT HOW IT APPLIES TO OUR BUSINESS

• Construction 68%

• Declining growth 52%

• Arts 50%

PARTNER CONTENT: RBC

Local businesses share some of their steps on the road to net-zero

When Ottawa business owners were asked, “How has your company incorporated sustainability and climate change into your business objectives?” as part of the 2023 Welch LLP Business Growth Survey, they shared some interesting insights.

Twenty-four per cent of organizations hadn’t given it any thought, while 40 per cent admitted they’re just figuring out how it applies to their business. About one-third acknowledged that kick-starting their

“going green” journey is important; 36 per cent said they’d identified the benefits and believe it’s critical to future success.

So what’s an organization to do?

It helps to recognize that change won’t happen overnight. For many businesses, preparing for a net-zero future may involve reviewing their growth strategy, purpose and values.

This is how Level Six, an Ottawabased outdoors company, sees it. The organization is working to redesign and

n TOP RESPONDENTS: HAVEN’T GIVEN IT ANY THOUGHT

• About to transition or sell 46%

• Owner/operator 39%

• Virtual only 37%

rethink how paddling gear is made and to extend the life cycle of its products. Becoming more ecologically sound is a core component of the brand.

Stig Larsson, Level Six’s CEO, is pushing to (eventually) have 100 per cent of its garments made from recycled fabrics. This year, the business aims to eliminate the use of all nonrenewable packaging in its products.

“You (may want) to look inward at your company’s strategy and values to ensure you’re doing everything you can to help it become environmentally friendly … that you’re making business decisions so your employees, customers and the community can count on you without concern for their

DIVERSITY AND INCLUSION OVERALL RESULTS

n WE HAVE IDENTIFIED THE BENEFITS AND BELIEVE ITS CRITICAL TO OUR FUTURE SUCCESS

n WE’RE JUST FIGURING OUT HOW IT APPLIES TO OUR BUSINESS

n HAVEN’T GIVEN IT ANY THOUGHT

62% 25% 14%

n TOP RESPONDENTS: WE HAVE IDENTIFIED THE BENEFITS AND BELIEVE IT’S CRITICAL TO OUR SUCCESS

• Museums, schools, universities and colleges 93%

• Arts 90%

• 150+ employees 81%

future,” Larsson says.

From there, businesses — and their leaders — may benefit from seeking the knowledge, advice and support of like-minded companies and other stakeholders, including investors and employees, who are concerned about the impacts of climate change and who can identify what initiatives might work best for the business.

There are organizations like Green Economy Canada, for example, that offer a Climate Action Boot Camp to help small and medium-sized enterprises learn about their carbon footprint and the business case for reducing their greenhouse gas emissions.

At RBC, we’re working to accelerate

n TOP RESPONDENTS: WE’RE JUST FIGURING OUT HOW IT APPLIES TO OUR BUSINESS

• Gatineau/Outaouais 67%

• Manufacturing and logistics 50%

• A startup 46%

tech-based solutions that help preserve the natural ecosystem by providing $100 million by 2025 to support organizations that are leveraging technology and innovation capabilities to solve pressing environmental challenges. Examples include the Ottawa Climate Action Fund’s commercial building retrofit program and Ottawa Riverkeeper’s study of the health of the Ottawa River.

Business owners may also consider starting to educate their consumers, partners and suppliers about their climate-related goals.

This is something Bushbalm Skincare actively does with its customers. “We educate (them) on

n TOP RESPONDENTS: HAVEN’T GIVEN IT ANY THOUGHT

• About to transition or sell 46%

• Owner/operator 33%

• Banking and financial services 27%

how to recycle our products both on the product pages and through social storytelling,” the company’s co-founder and COO Tim Burns notes. The Ottawa-based organization also strives to make intentional choices about the plastics it uses with its suppliers. “In an industry traditionally known for a lot of waste, we are continuing to look for ways to improve,” Burns says.

In the end, building a net-zero organization won’t happen overnight, so it’s important that a company start reviewing its practices sooner rather than later. — Justin Schurman is the regional vice-president, business financial services, at RBC.

INDUSTRY

Which industry does your organization operate in?

NUMBER OF EMPLOYEES

How many employees does your organization have?

LOCATION

Where in the region is your business primarily located?

How would you characterize your company?

BILINGUALISM

How important is employee bilingualism (English/French) to your business operations?

BACKGROUND SCREENING

When recruiting and onboarding new employees, what types of background screening do you or does your employer conduct?

SOCIAL MEDIA SCANS

EMPLOYMENT VERIFICATIONS

EDUCATION VERIFICATIONS

CREDENTIAL VERIFICATIONS

NAME AND DATE OF BIRTH BASED CRIMINAL RECORD CHECKS (ONLINE OR IN PERSON)

CREDIT CHECKS

FINGERPRINT-BASED CRIMINAL RECORD CHECKS

ALL OF THE ABOVE NONE OF THE ABOVE

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