Markham Voice - Winter 2023

How Canada Can Get a Big Slice of the Trillion-Dollar Global Semiconductor Market Leaders explain why hardware is cool again ahead of HardTech Conference.

By Stefan Palios

Even before the 2011 prediction that “software is eating the world,” the proliferation of cloud and Web 2.0 tech led to a generation of unicorns and centaurs scaling through software.

But, now, hardware is cool again. A mix of record-low venture investment for software companies and the economic opportunity of hardware has put renewed importance on building things (literally). And it’s an opportunity Canada can’t afford to miss.

Ahead of the HardTech Conference, Niraj Mathur, co-founder of deeptech startup Blumind, and Melissa Chee, CEO of Markham-based hardware startup incubator ventureLAB, spoke to BetaKit about Canada’s manufacturing roots and what it will take to build globally

important hardware companies on Canadian soil yet again.

Back to the future

Over the past 10-15 years, Chee said there’s been a deep focus on building software in Canada. Talking about why this happened, she said the answer was simple: money. Investors saw the potential for quick returns and a more straightforward use of capital in software, which drew more money into the ecosystem.

Chee was quick to note that investment in software is a good thing because most products require software. But she also added that everything we use in our day-to-day lives has an element of hardware, an industry where Canada used to be a global leader.

From a technology manufacturing perspective, Chee said you have to look to Nortel to truly understand Canada’s once-dominant global position in manufacturing. While the company is perhaps best remembered now for its dramatic bankruptcy in 2009, Chee noted that Nortel was a true innovator. The company handled most of the supply chain—including chip design development and manufacturing— domestically, making a global impact from Canada in the telecom space via manufacturing and distribution.

“That’s really important context, I think, for the Canadian ecosystem to understand that Canada has always been a leader in hardware,” said Chee.

But hardware fell out of favour as investors wanted the faster returns of

software. However, we can’t ignore hardware any longer, said Mathur. Historically, the focus on software was powered by Moore’s Law, which states that semiconductors will double in power and efficiency roughly every two years. But Mathur explained we are reaching the limits of physics. In short, we really can’t get much more efficient and it’s becoming exponentially more expensive to eke out marginal gains.

“Semiconductor technology is hitting the boundaries of physics,” said Mathur. “So you can’t scale these devices down any further. You’re getting to physical limitations of how small you can make these things.”

As a result, Mathur believes Canada must focus on hardware once again to build the next generation of semiconductors—those capable of

handling new forms of computing like augmented reality (AR), virtual reality (VR), artificial intelligence (AI), and machine learning (ML).

“There’s been, over the last half a dozen years, this explosion in new innovation in the hardware space,” said Mathur. “Because now engineers and the industry at large can’t just count on manufacturing to carry us over the line in terms of performance.”

The new wealth of nations

Both Mathur and Chee said it’s critical for Canada to focus on investing in manufacturing capabilities and new hardware or “HardTech,” and not just because it’s a trillion-dollar opportunity.

Beyond pure dollars, there are three things Chee cited as reasons for Canada to act immediately. The first is economic

sovereignty. Right now, Canada does not manufacture the majority of goods that Canadians consume. While this may have worked in the past, the COVID-19 pandemic highlighted the fragility of global supply chains and signalled the importance of Canada manufacturing its own items for consumption. Perhaps nowhere was this more prevalent than vaccine manufacturing—another area where Canada used to be a global leader and needs to be again.

Coming second is the ripple effect on Canada’s economy. Chee said that hardware businesses are “stickier” than software, meaning they are harder to copy or move, which ensures more jobs and economic benefit stays in Canada. Further, Chee added that hardware companies create an estimated six

“Those who control semiconductors will control economic futures.”

Melissa Chee, CEO, ventureLAB.

ancillary jobs—such as marketing or customer support—for every manufacturing employee, offering significant opportunities beyond core manufacturing talent. Then come the realities of intellectual property and the opportunity for Canada.

“The top ten holders of IP globally are all [semiconductor] companies,” said Chee. “So that’s a really important piece if Canada is serious about being an IP leader.”

The third is Canada’s opportunity for global leadership. The semiconductor market, said Mathur, is one multiple countries—including small nations like Israel and Vietnam—are trying to lead. Because semiconductors and hardware power most of our technology, the country that leads in manufacturing has control over most of the economy. Chee said no example is more clarifying than

the US sanctioning chip manufacturers from China, specifically targeting this industry over other sanctions because of its financial and geopolitical importance.

“Those who control semiconductors will control economic futures,” said Chee.

How to manufacture a 21st-century manufacturing

industry

FTo truly build a semiconductor industry in Canada, hardware entrepreneurs need different supports than those in software. In particular, startups need patient capital, a unique talent ecosystem, and some urgency to start. From a patient capital perspective, Chee noted that it takes five to seven years on average for hardware companies to reach the market, compared to weeks or months for software, meaning investors need a longer-term mindset. Building an ecosystem requires talent and Chee said Canada is one of the only places in the world that teaches the kind of manufacturing skills necessary en masse, making it a prime country for producing the talent this industry requires. But urgency is required because the opportunity window won’t be open long.

“It’s a once-in-a-generational one,” said Chee. “This isn’t going to come around for the next century.”

Canada has all the right elements in

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place, from a history of manufacturing to modern talent education, and places like ventureLAB are bringing the resources and big players together. Not only does ventureLAB have an incubator program to coach entrepreneurs but they also bring money and people to the table—Chee said the organization has a $7 million lab where startups can build prototypes and they connect companies to more than $50 million in funding and strategic partnerships from over 35 of the world’s largest semiconductor industry players.

With any conversation about HardTech, it’s imperative to think about environmental impact. There’s no denying that manufacturing can be damaging to the natural environment given the minerals necessary to manufacture advanced hardware. However, Mathur said it’s hypocritical to think we shouldn’t manufacture in Canada because of environmental concerns when we are still a major global consumer. Instead, he said we should leverage our environmental protection laws in industry, building what we need in the greenest way possible rather than relying on countries with a worse record of respecting the environment.

“It’s a bit hypocritical to not build manufacturing here and yet consume all the output of that manufacturing here,” said Mathur. “Just because it’s not happening in our backyard. So that makes it okay? No, of course not. We’re all riding on the same planet here. Canada has really strong environmental policies and leadership. I think we should bring that to bear in the manufacturing space.”

Innovative

By Jane Goodyer

Canada is facing a digital skills shortage that, if left unaddressed, will present a major barrier to business growth across all sectors and industries. As corporate leaders continue facing difficulties recruiting and retaining tech talent, universities in Canada can play a vital role in leading the development and implementation of innovative post-secondary solutions that address existing human resources gaps.

Exacerbated by the COVID-19 pandemic, the skills shortage in science, technology, engineering and mathematics fields has grown exponentially over the last few years. If our tech companies are to remain competitive in a constantly evolving global digital economy, we must act quickly to respond to existing information and communications technology (ICT) skills gaps or risk falling behind. This means that our efforts to attract talent and upskill the current workforce must keep a pulse on the evolving needs and demands of the sector.

For Canada, scaling up the tech workforce means creating affordable education pathways that will facilitate increased access to digital tech careers. Although Canada has a wealth of untapped tech talent potential, expanding the existing talent pool will require taking bold steps to transform the future of learning and employment in Canada’s tech sector.

It was with this goal in mind that our team at York University’s Lassonde School of Engineering collaborated with key leaders and experts in the tech sector to create a new workintegrated Bachelor of Applied Science in Digital Technologies program. These partners include Ceridian, CGI, Cinchy Inc., Cisco Canada, Connected, EY Canada, General Motors of Canada Company, IBM Canada, mimik Technology Inc., RBC,

Saa Dene Group, Shopify Inc., TELUS Health, Treasury Board of Canada Secretariat and TribalScale Inc.

Launching next fall, the four-year program will provide learners with the opportunity to earn a competitive salary while dedicating approximately 20 per cent of their work hours to theoretical, in-class learning during five-day block periods every six-to-seven weeks.

The benefits of our program will be twofold. By combining a high-quality education with work-integrated learning, students will be able to immediately apply and build on their academic knowledge. Employers on the other hand can also expect to benefit from the model which will help them fill skills gaps within their companies by giving them access to a stream of highly skilled workers.

A first for Canada, this model has been used widely across the United

Kingdom and has proven to be a powerful vehicle for social mobility. In a 2021 Impact Report, Manchester Metropolitan University, one of our key partners and the leading provider of this type of program in the UK, reported that 78 per cent of their graduates received a pay raise and 64 per cent received a promotion during their program. A survey of their first cohort of Digital & Technology Solutions graduates shows a 46 per cent higher salary than the average UK computing graduate.

By bringing this fully work-integrated model to Canada, our goal is to open the doors for learners who may not have the time and/or money to pursue a degree and provide them with the necessary supports to build meaningful networks as they grow in their fields.

What’s more, there has been a sharp increase in demand for more experiential learning opportunities over the last few years, a direct result of the pandemic. Corporate leaders know that remaining competitive within this new normal will require keeping pace with the changing nature of both working and learning.

An innovative post-secondary response to the skills shortage in the ICT sector can help affected businesses train, recruit and retain skilled digital technology specialists. As Canada’s tech sector navigates the digital economy, universities and colleges must keep their sights on developing and implementing innovative solutions that will help Canadian businesses remain competitive in the global market.

Jane Goodyer is the Dean of the Lassonde School of Engineering at York University. Check out lassonde.yorku.ca/digitaltech to learn more. Employers can also email hire@lassonde.yorku.ca for information on student recruitment, which starts January 2023. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. QUOI Media Group

Here’s What Makes the City of Markham a Great Place to Live, Work, and Grow

The City of Markham is a great place to live and work, and it’s becoming a magnet for global talent and entrepreneurs.

By Tania Amardeil

Located in the centre of the GTA, the City of Markham is one of Canada’s fastest-growing and culturally diverse cities. It has become a hub for innovation, driven by next-generation technology and knowledge-based industries. Thanks to the city’s high-quality infrastructure and amenities, thriving knowledge economy, and businesssupportive environment, it’s consistently attracting global talent and enriching its social, economic, and cultural fabric.

A dynamic community

From its high-quality educational facilities and big-city amenities to its booming economy and ripe business landscape, Markham has established itself as a desirable global city that attracts significant investment and residents and offers substantial growth opportunities.

Markham’s excellent elementary and high schools — which rank amongst the best in Canada — are complemented by other highquality learning institutes, including a new York University campus, which will open in 2024, and Canada’s largest college, Seneca College. This sets the groundwork for Markham’s flourishing knowledge economy and helps the city attract diverse talent.

Markham offers a high quality of life supported by well-built and safe community neighbourhoods with state-of-the-art infrastructure and a variety of cultural and entertainment amenities, including a vibrant new downtown. These offerings have attracted many newcomers.

Diversity as a core strength

Markham is one of the most ethnically diverse communities in Canada. About 78 per cent of the city’s residents are visible minorities, and about 59 per cent are foreign-born. The city’s recently updated Diversity Action Plan addresses diversity, equity, inclusion, accessibility, anti-racism, and antidiscrimination in all city efforts. The city also partners with integration networks and agencies to support immigrants in settling into Markham’s community more successfully.

The entrepreneurial spirit, skills, and investment that immigrant entrepreneurs and talented professionals bring have significantly contributed to Markham’s success.

“Markham’s multiculturalism makes the city unique,” says Sobi Ragunathan, Co-Founder and Vice-President of Operations, Strategy, and Partnerships at 4S Consulting Services, a leading occupational health and safety training, consulting, and online safety

management system provider that employs about 70 people in Markham. “Ever since we moved our office to Markham, we have a great talent pool with a mix of ethnic groups and societal backgrounds, which benefits our business.”

Contributing to Markham’s success

For business leaders like Ragunathan, Markham’s attraction includes not only its diverse talent pool but also the quality of life it offers.

“Markham is accessible, safe, and all ethnic backgrounds are embraced and celebrated here,” says Raghunathan.

Keith Chang, President of SenovvA Canada, a live event and film production company, echoes this enthusiasm for putting down roots in Markham. “It’s a great place to live,” he says. “Markham has created a sense of community, and even though it has grown a lot, it hasn’t lost that community feeling.”

Business leaders like Ragunathan and Chang are making powerful contributions to the success of Markham as a community and economy. Thanks to the city’s many attractive features, it keeps drawing more newcomers into its fold.

The City of Markham offers a high quality of life, business-supportive environment, and significant employment opportunities that are supported by its thriving knowledge economy. Discover Markham at business.markham.ca.

“Markham’s multiculturalism makes the city unique.”

Business Excellence

Celebrated in Markham

Markham Board of Trade (MBT) is pleased to announce the recipients of the 32 nd Annual Business Excellence Awards, the 10 th Annual ASPIRE Awards and the Anthony Roman Award.

Chris Collucci, President & CEO, Markham Board of Trade

“I’d also like to acknowledge the awards selection committee, and their Chair Mike Essex, for their hard work in reviewing and determining the 2022 recipients.” Markham Board of Trade President & CEO Chris Collucci.

Business Employer of Excellence: Sentient HR Services

Entrepreneurship: Spaice

Innovation: Lake Harbour Co. Ltd.

Women Led Business: 4S Consulting Services Inc.

The Board of Trade ASPIRE Awards, sponsored by Seneca College, recognize Markham’s business leaders and young professionals under the age of 40. The 2022 recipients are:

Professional Excellence: Payal Singh, YoPets

Community Involvement: Kenneth Lo, Chairperson, Power Unit Youth Organization

Start-up: Olugbenga Olubanjo, Founder and CEO, Reeddi

The Business Excellence Awards are Markham’s annual celebration of entrepreneurial spirit and business success. Any business located in the City of Markham is eligible. Nominations for next year’s awards open early 2023, visit www.markhamboard.com for details.

For more information: Selina Martins, Communications Coordinator, Markham Board of Trade | 289-844-3015 | E: smartins@markhamboard.com

EMPLOYEE PAY In A High Inflation Economy

By Kathleen Jinkerson

There has been a tectonic shift in the world of work. COVID-19 and its related impacts, the rising awareness of social issues, and an uncertain and volatile economy have amplified the effects of long-term trends that were already at play. Critical trends that include:

• Changing expectations of work and work environments;

• A greater drive for diversity, equity, inclusion, and belonging;

• Increasing awareness of and demand to support mental health;

• Greater willingness on the part of employees to take risks, including changing jobs, to update their skills and develop in their career; and,

• Labour shortages and fierce competition for talent.

The term unprecedented is what we most often hear – as in “unprecedented times” and “unprecedented economic circumstances”. It’s an apt term. The economy and the world of work are evolving in a way that most of us have never known or worked in before.

In my consulting practice, I spend a lot of time speaking with business leaders and HR teams about current economic conditions and the complex relationship between employer and employee as it relates to compensation, recruitment and retention, performance, and business results.

The question I am most frequently asked these days: What should I do about inflation and pay?

Traditionally for most organizations, the cost of living has not been a significant factor

in the design or administration of their compensation programs. In an environment where inflation fell below planned pay increases, this relationship was not top of mind for employers or employees. In fact, many organizations regularly directed HR and business leaders away from using language related to cost-of-living adjustments (COLA). As a result, the intersection of cost of labour, cost of living, and pay decisions was not clearly communicated and it is not commonly understood.

magazine recently stated that 40% of companies say that workers have asked for higher pay to offset inflation. Many more organizations are anticipating that this is top of mind for employees and are or have proactively put strategies in place. As a result, more than half of organizations have reconsidered or redesigned their pay in the past year.

The two most common responses are to change base pay or to offer a bonus as a costof-living adjustment. When making

Entering into this period of high inflation, driven by rising gasoline and energy costs as well as the costs for necessary goods, employees are demanding higher pay to address diminishing spending power. Forbes

adjustments to base pay, you should consider if you will be changing your pay ranges or just making adjustments to individual pay rates. If you change the minimum and maximum of your pay ranges to respond to

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do about inflation and pay?

inflation, those pay ranges have been raised and they won’t come down when inflation slows. But if you only adjust individual pay within the range, what do you do about employees who are already paid at the top of the range? Do they receive little or no increase? Do you make an exception for them and increase their pay above the top end of their range? The answer depends, as it so often does, on a number of factors –before making a change, consider how critical that role or individual is to your organization’s success, how long will this decision be in effect, and what would the impact be if other employees discover that you’ve made an exception to your pay policies.

A one-time bonus can be an effective way to increase pay without a long-term commitment but the bump in employees’ stated satisfaction with their pay will be short as well. A bonus spread over a period of time (say three or six months) will increase engagement and satisfaction with pay over a longer period of time but care must be applied throughout the term of the bonus program. When introducing the bonus program, throughout the duration of when you are paying the bonus, and as you approach the end of the bonus program, overcommunicate the purpose and practicalities of this bonus. Employees will get used to their new rate of pay and in some cases will forget that their paycheque reflects their base pay and a bonus. The first few paycheques after a bonus program ends are typically very bumpy for employers and employees.

This brings up a topic that I’m obsessed with - hedonic adaptation. This is the tendency of humans to quickly return to a relatively stable level of happiness following a positive (or negative) event. Pay increases are a textbook example of this concept. It is almost certain that employees will psychologically adapt to their new rate of pay and their satisfaction scores with their new rate of pay will diminish over time. Whether it’s an increase to base pay or a bonus, this phenomenon will come into play.

It is important to remember that pay is an important driver but it is not the only deciding factor towards an employee’s engagement with work as well as their decision to join or stay at a company. Other important drivers such as meaningful work, connection to the organization or co-workers, a good leader, career growth and development opportunities, and a supportive work environment all play a role in recruiting and retaining an engaged and productive workforce.

Kathleen Jinkerson is VP HR and Total Rewards Solutions teams at The Talent Company. She partners with The Talent Company’s clients to help them optimize their teams and elevate their people and culture. She works closely with organizations of all sizes across the globe, helping them understand how to leverage proven and trending practices to build and optimize their teams as well as refine their total rewards strategies and practices.

A passionate advocate for elevating talent and people practices within HR and total rewards, Kathleen is an active participant and speaker at a number of conferences and events including the Human Resources Professional Association (HRPA), WorldatWork, and the Society for Human Resource Management (SHRM).

SOCIAL MEDIA TRENDS

By Hovsep Seraydarian

ocial media has become essential for your business growth but at the same time, it’s an ever-changing industry. Keeping up with the latest social media trends isn’t easy, but it can be incredibly beneficial. By understanding what’s happening on these platforms right now, you’ll be able to engage with your audience in ways that will help grow your business or personal brand.

If you’re looking for some inspiration for

what’s coming next in social media marketing (or just want to keep up with the competition), read on to learn more about the current social media marketing trends.

1. User-Generated Content

Brand authenticity has become an important aspect of social media content. Most users now pay attention to authenticity when choosing a company. The statistics show that 83% of marketers think that authenticity is

essential for the brand and according to 79% of buyers, user-generated material has a significant impact on their purchasing decisions.

User-generated content (UGC) is all about authenticity as it is content created by users. It’s a great way to get feedback from your audience and improve your product.

The idea behind UGC is that people who have just tried your product or service will share their opinion and provide some

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feedback to your prospects. It is a great way to create an emotional connection.

Creating an emotional connection with your customers is essential so that they can understand your brand’s values. Did you know that an emotional connection with a brand increases the likelihood of a customer recommending the business by 71%?

By considering the fact that 92% of customers seek out recommendations and reviews from existing clients, we can understand why so many businesses go for user-generated content. The latter is the future and it isn’t surprising that it would be one of the social media trends in 2023. It’s a trend that can have a huge impact on your brand.

Here are some tips for effective influencer marketing you can consider:

• Know what you want: Before reaching out to an influencer, figure out what exactly you hope to achieve from this relationship. Is it brand awareness? Sales? Conversions? A specific number of impressions or likes? Whatever it may be, make sure that both parties’ expectations are in line before moving forward with any agreement or contract negotiation process.

• Set a budget: No matter how large or small your budget is, set aside some money specifically for influencer marketing.

• Create authentic content: Remember that creating authentic content will help clients trust the influencer and buy the product. People listen to reviews and recommendations only when they are authentic. Once you create inauthentic content, you will damage the customer relationship and harm your reputation.

Customers want to be heard, so here are some tips you can follow for user-generated content:

• Organize contests and giveaways.

• Give discounts and coupons for reviews and social media mentions.

• Share case studies.

• Post customer stories.

• Share testimonials.

• Prepare Q&As.

2. Influencer Marketing

The next 2023 social media trend that will keep its popularity is influencer marketing. As you may know, influencer marketing is the practice of using social media influencers to promote your brand or product.

The main reason for this surge is that people trust other clients more than they do brands. If a popular YouTuber says he likes your product, he’s more likely to convince people to buy it than the company itself.

Influencer marketing is when you collaborate with influencers who provide unique and interesting content to promote your products. Did you know that the return on investment (ROI) for this social media trend is 11 times higher than that of the other internet marketing techniques? This number reveals how crucial influencer marketing is for the growth of your social media presence and your company.

3. Short Videos and Social Audio

Videos continue to be a top trend in social media. However, short videos are dominating because of TikTok which has changed the way people view videos. Actually, after TikTok, different social media platforms started to put an emphasis on video content as opposed to images. When you check YouTube, Instagram Reels, and Facebook, you’ll notice how popular short videos have become. Besides short videos, live videos have also become popular after the pandemic.

Live shopping is growing rapidly, during which (live streams) you can encourage buyers to buy your products. This is great for establishing customer bonds and helping users to view products during live videos.

But there is one trend that will be popular as well and we cannot overlook its importance — social media audio

content. We anticipate a surge in social audio in the next year, including live audio meetings, voice messages, broadcasting of events in real-time, and more.

For instance, Facebook is going to create a voice message feature where you can share stories with your voice if you don’t like appearing on camera. Instagram is also giving an opportunity to share stories with favourite songs from Spotify.

4. Paid Advertising

The 4th rising social media trend is social media ads. Social media advertisements generated $153 billion in global revenue in 2021, and it is predicted that this amount will surpass $252 billion in 2026. This is the 2nd biggest market in digital advertising. 49% of users buy products after seeing them advertised on social media. So, it’s not a surprise that social media ads will keep their popularity in 2023 as well. Opting for social media advertising services give you the opportunity to

target your audience with relevant advertisements, so you can reach out to people who are interested in what you have to offer. There are many different types of social media ads available, including post-carousel ads, video ads, and more. Instagram will likely receive the majority of social media ad spending because video and visual content are the current hot trends on social media.

Additionally, there will be more ad traffic and content marketing on LinkedIn, Youtube, and Facebook, which are considered as the best platforms for reaching business goals.

We discussed four of the most famous social media trends expected in 2023. We hope that you found our article helpful. Ensure to double-check these trends once you want to improve your social presence.

Digilite Web Solutions Inc. | digilite.ca/4-socialmedia-trends-you-need-to-know-about-for-next-year/

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Published

The Markham Board of Trade is the voice of business in the City of Markham. Established in 1981, MBT is a not-for-profit, membership based association. We advocate on your behalf with all levels of government through a broader regional, provincial and national network of boards of trade and chambers of commerce. Connect with the right people through our outstanding events. Call us today at 289-844-3017 or find us online at markhamboard.com and take the first steps in joining MARKHAM’S PREMIER BUSINESS ASSOCIATION

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ZeeV’s Nutrition Studio zeevsnutritionstudio.square.site

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make the factory yours

The Live Real Factory is a luxurious state-of-the-art boutique event venue located on the top level of the historical and beautiful Old Town Hall at 96 Main Street North in Markham Village. It’s 3300 square feet of flexible space is available for cocktail mingles for up to 85 guests or sit-down events for 65 guests.

The factory is fully equipped with a luxurious licensed bar, state-of-the-art light and sound system, a full stage, and large-screen digital monitors. Make your next event memorable at the factory.

For more details on how to make the Factory Your Own contact info@liverealfactory.com or call 289-859-9200

liverealfactory.com

96 Main Street North, Markham Village, Ontario