Prairie Manufacturer - Issue 2 • Volume 6 by Prairie Manufacturer

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Issue 2, Volume 6 • Winter 2021

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Manufacturers and industrial businesses negotiate a constantly evolving competitive and regulatory landscape.

We take pride in helping our clients grow their businesses locally, nationally and internationally, while saving them costly missteps by providing effective legal counsel. We provide advice that is strategic, insightful, and practical to help manufacturers grow and succeed.

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Publisher Ronda Landygo ronda@prairiemanufacturer.ca 877.880.3392

In this issue Real-time Monopoly: how to stay in Just Visiting

Are exclusivity agreements between manufacturers and suppliers legal? In the age of supply chain disruption, should exclusivity agreements be allowed? Learn how anti-competitive behaviour can impact your business.

NGen at work on the Prairies

Learn about the exciting projects and partnerships NGen is supporting across the region and how you can get involved. After all, if we’re building world-leading advanced manufacturing capabilities, we might as well put them to use!

Pleasure, empowerment, and confidence

Meet three manufacturers and makers working to provide products to meet some very meaningful and personal needs, enabling pleasure and building confidence along the way. Learn about the challenges they face because of others’ views.

Angela Armstrong shares what she’s learned about the benefits (and costs) of fitting into someone else’s picture of you, and why a diversity of ideas, opinions, experiences, and personalities makes for a more robust business.

Managing the risk of COVID-19

Special thank you to our editorial advisory committee. Creative Director Dana Jensen dana@titaniumgraphicdesign.ca Sales info@prairiemanufacturer.ca © Copyright 2021 Prairie Manufacturer MagazineTM All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without prior written consent of the publisher. Publications mail agreement #43155015

Women in Industry: Angela Armstrong

Editor Jeff Baker jeff@prairiemanufacturer.ca

Prairie manufacturers are used to dealing with challenges. From supply chain issues to international border closures, the impacts of the COVID-19 pandemic on this sector are significant. Insurance coverage for manufacturers is no exception.

Next issue Noshing our way across the Prairies - The Canadian Prairies has traditionally been a hub for food and beverages, not just for Canada, but for the global community. Mix that with the people from around the world who now call this region home, and you’ve got a food manufacturing industry that’s second to none. Come with us to build a meal (or three) worth writing home about! Raise a glass to the more of us - Whatever your beverage of choice, there’s probably someone on the Prairies making it or making it better. We’ll uncover folks across the region who are working to make sure we always have something in the glass we raise when celebrating the events that matter – including the days that end in ‘y.’ Booking deadline: February 4, 2022 Material due: February 11, 2022

Return undeliverable Canadian addresses to: Prairie Manufacturer Magazine 207 Hugo St. North, Suite 3 Winnipeg, MB R3M 2N1 To change your address, or to be removed from the mail list, email info@prairiemanufacturer.ca. While every effort has been made to ensure the accuracy of the information contained in and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Cover photo courtesy NGen Proudly printed by Quantum Graphics & Consulting Printed in Canada | 12/2021

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Editor’s Notebook

Merry Manufacturing-mas to you! By Jeff Baker

ere we are at the end of another year… or maybe it’s been three. The days and months just seem to continue blurring together. It’s hard to tell. Either way, thank you for cracking open this latest issue of Prairie Manufacturer Magazine! I’m glad you’re joining us for some more great coverage about the dynamic industry that is manufacturing on the Prairies.

Nonetheless, the impact that the industry has on everyone’s life is profound and enduring, and the stories of the people and companies within this issue are simply the best. That’s why Prairie Manufacturer is still going strong, and why we count our readers and supporters as family!

The power of the industry

It’s like that with this issue of Prairie Manufacturer, all the issues since I’ve joined the team, and all the issues yet to come. We’re shining the light on people and businesses that might not always be seen as manufacturing or manufacturers. We’re saying that the magazine is open to all sorts of manufacturing, processing, and making. Manufacturing on the Prairies isn’t only about metal fabrication, equipment manufacturing, aerospace, food processing, or energy products. It’s about making products that touch all aspects of the human experience

Manufacturing is one of those industries that has a reach like no other into the daily lives of people, whether it’s as employers or employees, as end-user customers, or simply a person living their own life. It’s a quiet power because the benefits that manufacturing provides surround us all the time. Sometimes the presence is very noticeable, at the forefront of our awareness; other times it’s just there, and we barely recognize or acknowledge it.

Yes, Virginia, that is manufacturing

and allow people the space and tools to express their creativity in authentic and meaningful ways.

It’s personal, of course In this issue, we’re introducing you to manufacturers and soon-to-bemanufacturers who are forging their own paths in the industry and providing solutions to problems they discovered, either through personally lived experience or connections through family and friends. We’re taking you to corners of the industry that don’t get the attention they deserve, not because it’s ‘forbidden’ or ‘dirty,’ but because there hasn’t been the space within the traditional definitions of the industry for businesses like theirs.

In this issue In this issue you’ll learn more about our good friends and colleagues at NGen – Canada’s Advanced Manufacturing Supercluster and the amazing work they’re doing in the Prairies to support

We’re taking you to corners of the industry that don’t get the attention they deserve, not because it’s ‘forbidden’ or ‘dirty,’ but because there hasn’t been the space within the traditional definitions of the industry for businesses like theirs.

Prairie Manufacturer Magazine • Winter 2021

the transformation of the industry and its players. The legal eagles over at Taylor McCaffrey offer some insight and information about what makes for anticompetitive behaviour in the marketplace and what might lead to a closer inspection by regulators. In case you’re wondering about the impact of the COVID-19 pandemic on insurance and risk management for your company, Greg Vanginkel with EQUA Specialty Risk Partners Corporation shares things that are probably impacting your insurance premiums and questions you can ask of your insurance provider. And we’ve got some more timely safety information – this time about psychological safety and mental health in the workplace – from our friends over at Safe Work Manitoba. Plus, just in time

for that long-deserved winter getaway, we share some food for thought on travel and travel insurance from Saskatchewan Blue Cross. It’s a great combination of new folks and usual suspects!

Coming up And speaking of food for thought… stay tuned for our spring issue where we’ll be celebrating food and beverage manufacturing across the Prairies. If, during your holiday celebrations this year, you come across a locally produced food or beverage product that brings you some comfort and joy, please tell us about it! We love getting story ideas and tips from our readers, and we do love a Prairie nosh every once in a while, too.

Our assignment to you At the end of the day, our job here at Prairie Manufacturer Magazine is to inform, enlighten, and reflect all that makes up manufacturing on the Prairies. If we’ve made you think about something in a different way, or introduced you to something or someone new, then I consider our mission accomplished. With all that, on behalf of the entire team at Prairie Manufacturer, I wish you and yours a safe and merry holiday season, and all the best heading into 2022. Until we chat again, I hope you enjoy the read.

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Civility

Civility as a Continuous Improvement Strategy By Christian Masotti

An environment where people have to think brings with it wisdom, and this wisdom brings with it kaizen [continuous improvement]. - Teruyuki Minoura

epending on personal experience, many manufacturing supervisors and managers might disagree with Mr. Minoura. However, after 20-plus years in the field, I have garnered some wisdom he suggests is gained because of having to use thinking skills, and I agree with him. Specifically, I have witnessed firsthand how thinking about how you treat people, and committing to civil, positive interactions, is an intervention strategy. You can change workplace culture via behaviour and mindset shifts, and the quickest way to do this is for leaders to exemplify the precise behaviours they expect of their teams. In manufacturing environments, civility as a daily leadership practice offers relational skill-building as a preventive step that potentially offsets the need for: • Wasting time and/or resources on people-oriented problems. This is because when individuals practice civility, much of the dayto-day issues resolve themselves. Examples of this are: behaviours that relate to sharing information, asking questions, taking personal responsibility, following basic rules, self-directing learning, etc. • Engaging in generic, “flavour-ofthe-month” training or training for the sake of training. Instead, at a fraction of the cost, organizations can teach four core skills that enable civil behaviour and concurrently address many other skill gaps. • Constantly having to manage interpersonal issues related to miscommunication and

uncivil tone and approach to conversations. When employees and leaders respect themselves and each other, there are significantly fewer interpersonal and miscommunication issues to deal with. • Planning training in topic areas such as those below because, when done well, civility training incorporates the four underpinning skills that support all these add-on topics. (please see Core Skills on page 7). This saves training dollars and reduces time off the floor.  Diversity  Teamwork  Conflict management  General communication  Change management  Emotional intelligence  Building trust  Working with various generations  Collaboration

Requiring that your leadership team become competent in civility is a cost-effective way to build engagement and profitability. According to research by Weber Shadwick, companies that openly promote civil communication among employees earn 30 per cent more revenue than competitors. Once organizations understand that civility is a measurable competency that manifests in part through the expression of advanced soft skills, they tend to take it more seriously. Taking relational skills seriously is a good thing, as research carried out by

Prairie Manufacturer Magazine • Winter 2021

the Carnegie Institute of Technology shows that 85 per cent of your financial success is due to skills in “human engineering,” your personality and ability to communicate, negotiate, and lead. Shockingly, only 15 per cent is due to technical knowledge. Dr. John Fleenor of the Center for Creative Leadership explains that creating culture at work starts at the top. The CEO’s soft skills make all the difference. To be successful, individuals must be good listeners, consensus builders, team players, and empathizers. Hence, to climb the corporate ladder quickly, it is essential for executives to possess more soft skills and fewer hard skills. We can compare soft skills with emotional intelligence quotient (EQ) and hard skills with intelligence quotient (IQ). Succinctly, soft skills are twice as important as IQ or technical skills for the success of senior executives. Studies have shown that individuals with a high emotional quotient are highly appreciated in the workplace, and they tend to grow rapidly in the corporate chain. Daniel Goleman, author of several books on relational intelligence, says that soft skills are a combination of competencies that contribute to a person’s ability to manage him or herself and relate to other people. These are the skills, abilities, and traits about the personality, attitude, and behaviour of a person. They are the human skills that make a huge difference to your professional success. They are needed for good leaders to become great leaders.

In contrast, hard skills are about your technical competence and domain expertise. Sometimes soft skills are equated with teamwork, while hard skills with execution. Supervisors and managers must proportionately blend their soft and hard skills with leadership to excel as successful leaders. However, as they gain more experience, they need more soft skills because they work less on their hard skills and more on interpersonal skills. The benefits of individual leaders and employees building their civility competency in and of itself can change workplace culture, but the longer-lasting culture transformation happens when civility training is treated as one piece of an overall workplace civility initiative. As a company-wide initiative, civility would become embedded in: • Company values • Company mission • Policies, e.g., expanded respectful workplace, discipline, language at work, etc. • Processes, e.g., recruiting, hiring, promoting, incentive • Training plans, specifically civility training would be mandatory and one of the first topics addressed, second only to safety • Practices, e.g., how people are coached, feedback, written communications, etc.

Generally, in a civil workplace, employees are more likely to: • Show consideration for each other • Support their supervisors and managers • Encourage positive interaction between union and management • Seek solutions versus identifying problems • Be responsible for themselves, e.g., not making excuses for not meeting general expectations such as being on time, dressing appropriately, following basic rules, etc. However, when civility is a core value and becomes a part of the character of the company, civility becomes a gamechanging continuous improvement strategy with measurable results. Christian Masotti is the leading expert on civility in manufacturing and consultant with Civility Experts Inc. With decades of industry experience with some of the world’s largest manufacturers, he is a continuous learner who combines technical skills in continuous improvement with social intelligence and cultural competence. He is author of three books: Manufacturing Civility, Social Competence for Manufacturing Supervisors, and co-author of Lean on Civility: Strategies for Changing Culture in Manufacturing Workplaces.

Core Skills The four core skills underpinning the ability to be civil at work are: Continuous learning fosters selfdirected learning, supports knowledge workers, and promotes change readiness. Systems thinking helps individuals see their place, power, and impact relative to the system they are in and the systems they interact with. Systems thinking fosters confidence, trust, and problem-solving. Social intelligence enables individuals to read verbal, nonverbal, tonal, and contextual cues and interpret them effectively. This helps them anticipate, adapt, and repair their approach and behaviour appropriately. Social intelligence includes social radar, social knowledge, and social style. Cultural competence encompasses both organizational culture and heritage cultural competence. This ability supports working in teams, understanding differences that make a difference, recognizing where process overrides preference, and generally helps promote respect at work.

HOW YOU TREAT PEOPLE IMPACTS PROFIT Civility is a continuous improvement strategy proven to increase safety, engagement, retention and revenue.

Contact events@civilityexperts.com for a complimentary copy of Manufacturing Civility.

Why not give civility a try?

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Christian Masotti, MCCT®, Leading Expert on Civility as Continuous Improvement

Or try out the Lean on Civility App at praxie.com/civility-at-work or praxie.com/lean-on-civility

www.christianmasotti.com | www.civilityexperts.com | (204) 996-4792 | events@civilityexperts.com

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ECONOMIC ROUNDUP

The Shifting World of International Trade and Supply Chains By Jayson Myers

OVID closures. Natural disasters. Shipping delays. Overcrowded ports. Ships stuck in the Suez Canal or waiting offshore. Supply chain disruptions over the past two years have been a nightmare for logistics and purchasing managers. For manufacturers across Canada, they have meant parts shortages and soaring input prices. Margins are under extreme pressure and inflationary pressures are building across the economy. On the other hand, for those companies, that have been able to pivot to take advantage of gaps opening in supply chains, it’s been a time of opportunity. Investments in product and process innovation have allowed many manufacturers, across Canada and especially across the Prairies, to build new export markets and capitalize on the advantages of more localized sourcing. There have been some significant shifts in trading patterns as a result. Overall, Canadian exports have rebounded strongly, imports less so. Supply chain disruptions have hit both

inflows and outflows of product from some of our largest globally integrated industries like the automotive sector. Other sectors, though, are flourishing. Prairie manufacturers are riding a particularly strong wave of growth. Much has changed since 2019. Let’s take a look. (Projections for 2021 are based on year-over-year growth rates for the year to date based on the latest available statistics. Manufacturing sales reflect performance from January to August while trade data cover the months of January through September.) Across Canada, manufacturing sales rebounded by 19 per cent on a yearover-year basis during the first eight months of 2021, a growth rate that puts Canadian manufacturers on track to end the year 5 per cent above 2019 levels. Manufacturing sales growth across the Prairies has been much stronger. Output in the three Prairie provinces jumped 29 per cent in 2021. By the end of the year, sales by Prairie manufacturers are projected to climb to $125 billion which will be 10 per cent higher than in 2019.

Prairie Manufacturer Magazine • Winter 2021

On the trade side, Canadian merchandise export sales increased by just over 20 per cent in 2021. By the end of the year, total exports are on track to hit $630 billion, about six per cent higher than in 2019. Exports by Canadian manufacturers have grown more slowly than total sales, increasing by 16 per cent this year to about $391 billion, just less than four per cent higher than 2019 levels. Manufacturing exports will account for 62 per cent of the total value of Canada’s merchandise exports this year; down about one percentage point from 2019. Across the Prairies, the total value of merchandise exports is on track to grow by almost 36 per cent in 2021 to $188 billion which will be 15 per cent above 2019 levels. Exports by Prairie manufacturers have increased in line with manufacturers’ sales, rising 30 per cent in 2021, and are likely to hit $57 billion by the end of the year, 21 per cent higher than in 2019. Manufactured exports will account for 31 per cent of the total value of prairie exports this year – that’s up two percentage points from 2019.

The biggest export markets for Prairie manufacturers are the United States (75 per cent), China (eight per cent), Japan (four per cent), Mexico and South Korea (1.4 per cent each), and Australia (one per cent). All other countries account for less than one per cent of manufactured exports from the Prairies. Demand has grown strongly in all these markets over the past two years. Prairie exports of manufactured goods has jumped by 24 per cent to the US, 9 per cent to China, 33 per cent to Japan, 47 per cent to Mexico, and 42 per cent to South Korea since 2019. While Canada’s exports have been recovering well, imports have been lagging. Total merchandise imports into the country are likely to amount to about $612 billion in 2021. That’s up by more than 12 per cent over the past year but

less than two per cent higher than in 2019. Imports of manufactured goods, which account for 88 per cent of the total, have also increased by 12 per cent over the past year to around $535 billion, only marginally higher than where they were in 2019. The story is the same for the Prairies. There total merchandise imports grew by 16 per cent to $63 billion in 2021, only two per cent higher than in 2019. Imports of manufactured products rose by 17 per cent in 2021 to $58 billion, but like all of Canada, manufactured imports into the Prairies are running at around the same levels as in 2019. Just under 70 per cent of manufactured goods imported into the Prairies come from the United States, about 10 per cent from China, four per

cent from Mexico, and two per cent from Germany – other countries account for one per cent or less. Since 2019, manufactured imports from China, Japan, Southeast Asia, Germany, and Italy have all seen strong double-digit growth. Imports from the US, UK, and other European countries have all declined. This suggests a strong shift to sources of high value commodities and technologies, and particularly to suppliers from Asia Pacific, over the course of the last two years.

Manitoba – Rebound in Domestic Demand Manufacturing sales in Manitoba remained relatively stable during the first year of the pandemic, then jumped by 15 per cent in 2021. They are on track to exceed $21 billion by the end of this year,

Supply chain disruptions over the past two years have been a nightmare for logistics and purchasing managers. For manufacturers across Canada, they have meant parts shortages and soaring input prices.

www.prairiemanufacturer.ca

Supply chain disruptions have hit both inflows and outflows of product from some of our largest globally integrated industries like the automotive sector. Other sectors, though, are flourishing. Prairie manufacturers are riding a particularly strong wave of growth

almost 15 per cent higher than their value in 2019. Sales have been driven largely by increases in domestic demand. Total merchandise exports from Manitoba grew by 9.1 per cent in 2021

and are likely to exceed $17 billion by the end of the year, up by eight per cent over 2019. Manufactured exports have grown more slowly, increasing by 10 per cent this year to about $12 billion, five per

Prairie Manufacturer Magazine • Winter 2021

cent higher than in 2019. Manufacturers account for about two-thirds of Manitoba’s total exports and exports for just under 60 per cent of the province’s manufacturing sales.

Manitobans imported less in 2021 than in 2019. There has been a healthy bounce of 11 per cent in total imports and 12 per cent in manufactured imports over the past year. Total imports into the province amounted to $22 billion in 2021 and imports of manufactured products accounted for over 90 per cent of that at $20 billion. However, total imports are still running at two per cent and manufactured imports about four per cent below 2019 levels.

Saskatchewan – Export-fueled Growth Manufacturing sales are running 42 per cent higher this year than last in Saskatchewan. By the end of 2021, they are likely to exceed $19 billion, almost 20 per cent higher than in 2019. Merchandise exports from Saskatchewan have grown by 22 per cent and are likely to top $36 billion in 2021, a 23 per cent increase since 2019. Manufactured exports, on the other hand, have grown by more than double that rate. They are on track to increase by 46 per cent this year to almost $8 billion, a 42 per cent increase from 2019. Exports have accounted for most of the growth in Saskatchewan manufacturing over the past two years. Manufactured exports now account for about 22 per cent of total exports from the province, compared with 18 per cent in 2019.

Imports on the other hand are still below where they were in 2019. Total merchandise imports will reach $11 billion in 2021 – that’s up by seven per cent on a year-over-year basis but still lower than 2019 levels. Imports of manufactured goods, which represent 92 per cent of total imports into Saskatchewan, are on track to reach $10 billion in 2021, an increase of 16 per cent over last year, but still three per cent lower than in 2019.

Alberta – Stronger Import Growth Sales by Alberta manufacturers are running 30 per cent higher in 2021 than in 2020. At that pace, they will reach almost $83 billion by the end of this year, or 10 per cent higher than in 2019. As in Saskatchewan, exports are fueling manufacturing sales growth in Alberta. The province’s manufactured exports grew more slowly in 2021, increasing by 35 per cent which was still faster than overall manufacturing sales. They are likely to surpass $38 billion this year which would put them 24 per cent higher than in 2019. Exports now account for about 46 per cent of total manufacturing sales. Overall merchandise exports from Alberta are likely to exceed $133 billion in 2021, up 44 per cent from last year and 13 per cent from 2019. With respect to imports, Alberta stands as an exception to the Canadian

The pace of recovery from COVID-19 is still far from certain in many of the countries that are large industrial suppliers to Canada. It will take time to unravel the snarls holding up international logistics.

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By the end of the year, sales by Prairie manufacturers are projected to climb to $125 billion which will be 10 per cent higher than in 2019.

and Prairie rule. Total merchandise imports into the province increased 22 per cent in 2021 to $29 billion, which is more than six per cent higher than in 2019. Manufactured goods account for more than 92 per cent of all Alberta imports. They also jumped 22 per cent in 2021 and are likely to reach $27 billion by the end of the year, which will be five per cent higher than in 2019.

Where do we go from here? Supply chain disruptions and resulting price pressures are unlikely to end any time soon. The pace of recovery from COVID-19 is still far from certain in many of the countries that are large industrial suppliers to Canada. It will take time to unravel the snarls holding up international logistics. Meanwhile, larger suppliers facing spiralling demand for their products remain reluctant to boost capacity knowing that prices may collapse if too much supply is brought on board. Shortages and higher prices are here to stay, at least through 2022.

Prairie manufacturers have two options. They can wait for the wave to completely roll over them. If that is the case, it may be difficult to get above water. Or they can proceed as many are doing, by focusing on new market opportunities, proactively managing supply chain risks, designing products and supply relationships to minimize parts and logistical risks, and investing in new products and processes that will allow them to grow in markets where there is strong demand, a premium placed on customized products and services, and gaps arising where other companies fear to tread. Prairie manufacturers are pioneers and entrepreneurs. That’s what will ultimately guarantee their success in a world of accelerated change. Jayson Myers is CEO of Next Generation Manufacturing Canada – the country’s advanced manufacturing supercluster. An award-winning business economist and leading authority on technological change, Myers has counselled Canadian prime ministers and premiers, as well as senior corporate executives and policymakers around the world.

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The Legal View

Anti-competitive behaviour: real-time Monopoly By Kristen Wittman

ave you ever wondered whether it would be possible to be the only player in the market? Is that anti-competitive behaviour or just smart business? Sometimes, manufacturers enter into agreements with their suppliers that restrain the ability of the suppliers to source products in order to ensure exclusivity in a market. But are those exclusivity agreements legal? In the age of supply chain disruption, should these exclusivity arrangements be allowed? The answers may be found in certain sections of the Competition Act (the "Act"). The purpose of the Act is to promote the public interest by eliminating anti-competitive activities in the marketplace. Vertical agreements are agreements between parties at different levels of the supply chain, such as agreements between a manufacturer and supplier. The Act creates a tribunal that may review vertical agreements where the agreements might contain price maintenance restraints or result in unfair market restrictions. Assessing the potential effects on competition of vertical agreements is complex and raises issues relating to the market power of parties and barriers to entry. Competitive harm arises if an agreement establishes unfair market power, leads to higher prices, or operates as a barrier for new entrants. While there are legitimate types of vertical agreements, whenever a vertical agreement is introduced by someone with market power, this can raise competition law concerns. While there is no obligation on any business to supply to or buy a product from another business, there are some matters of interest to the Competition Tribunal where a vertical agreement is in use.

Section 75 – Refusal to Deal • If a manufacturer denies a supplier sales into a market, such as through an exclusivity agreement with another party which precludes the supplier being able to sell that manufacturer's product at market price, this action could be reviewable by the Tribunal if certain requirements are met: • if the supplier can demonstrate that its business had been substantially affected, or that it is unable to carry on its business as a result of not being able to obtain adequate supplies of a product on usual trade terms;

Prairie Manufacturer Magazine • Winter 2021

• the inability of the supplier to obtain adequate supplies results from a lack of competition among suppliers; • the supplier is otherwise willing to meet the manufacturer's usual trade terms; • the product is in ample supply; and • the refusal to supply has an adverse effect on competition in a market and otherwise reduces the availability of the product at market prices. If these conditions are met, the Competition Tribunal can issue an order requiring the manufacturer to accept the supplier into the market.

Section 76 – Price Maintenance Price maintenance occurs when a supplier of products sets a fixed minimum price at which another supplier in a vertical distribution chain may sell a product. These agreements can include manufacturer-suggested resale pricing. The Act prohibits a person who produces or supplies a product from attempting, by means of agreement, to influence pricing upward or discourage lower pricing by others. This section is designed to protect the public by prohibiting an upstream supplier from preventing competition among retailers, thereby increasing the price paid by the ultimate consumer. At one time, the consequence of engaging in this behavior could include jail time, but in 2009 the provisions were decriminalized, so that now it is only a civil offence. To be in breach, the restraint must have an anti-competitive effect in a market. This can be difficult to establish in the case of small and medium-sized enterprises. In assessing the anticompetitive effect in the market, three issues are considered: • the relevant product and geographic markets; • whether the party possesses market power; (market power is the ability of a party to increase prices above the competitive level for a significant period of time. Market share is only one indicator of market power.) • whether the effect of the conduct on the market is adverse or positive.

Section 76(8) – Refusal to Supply If a supplier induces a manufacturer to enter into an agreement by making it a condition that the supplier will only do business with that manufacturer if that manufacturer refuses

While there are legitimate types of vertical agreements, whenever a vertical agreement is introduced by someone with market power, this can raise competition law concerns.

to supply the products to others at market price, the excluded supplier could ask the Competition Tribunal to review this conduct. If the Tribunal finds the required conditions are met, it can make an order prohibiting the manufacturer and supplier from engaging in this conduct or requiring the manufacturer to do business with the excluded supplier. A remedial order by the Tribunal will only be made where the conduct "has had, is having or is likely to have an adverse effect on competition in a market." Whether the supplier has market power is a factor in determining whether its conduct will have an adverse effect on competition. In determining market power, the Tribunal will compare the level of competitiveness in the market in the presence of the particular price maintenance conduct with that which would exist in its absence to determine whether the effect of the conduct creates, preserves or enhances market power. The Tribunal also looks at whether price maintenance conduct facilitates or is a result of coordination between suppliers or retailers that inhibits their competitive vigor, or whether the conduct excludes actual or potential competition at the supplier or retailer level.

The question to be answered is: would the market be more competitive in the absence of the price maintenance conduct?

Section 77 – Market Restriction If a manufacturer prohibits or requires the sale of products in a defined market, the behaviour is illegal if the following conditions are met: • The conduct is engaged in by a major supplier or is widespread in a market; • The conduct in question constitutes a practice (repeated behaviour); • The restrictive practice discourages a party's entry into, or expansion in, the market; • The practice has substantially lessened competition, or is likely to do so. Absent this "substantial lessening" these types of practices are legitimate. For the government, it's a question of fairness. Remember playing Monopoly with your big brother, and flipping the board in the air when he ended up with all the hotels? Even if he didn't cheat, it didn’t end well. Kristen Wittman is a lawyer and writer living in Winnipeg. She is a partner at Taylor McCaffrey LLP and practices in the corporate commercial department. She has recently published Death Becomes Us, with Turnstone Press. She can be found at tmlawyers.com.

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Building World-Class Advanced Manufacturing Capabilities in the Prairies

Prairie Manufacturer Magazine • Winter 2021

Prairie companies are building world-leading advanced manufacturing capabilities to help Canadians battle the COVID-19 pandemic, improve environmental sustainability, and develop new digital and high-performance technology applications that promise to boost the competitiveness and growth potential of Canadian manufacturers from coast to coast to coast.

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Canadians. NGen also leads initiatives that improve access for smaller companies to education, training, and testing facilities across Canada and that enhance the skills and management capabilities of Canada’s advanced manufacturing workforce.

Prairie Highlights Since NGen’s inception, Prairie companies have engaged with us to support their advanced manufacturing journey. • Membership: Since inception, 381 Prairiesbased companies, experts, and organizations have joined NGen’s advanced manufacturing membership network • Projects: 35 Prairie companies and research centres are partnering in 22 world-leading advanced manufacturing projects funded by NGen • Investment: NGen has approved investments of $29.5 million in projects involving Prairie partners, with total innovation spending estimated at $62.7 million • Jobs: NGen Projects involving Prairie partners will create more than 5,000 jobs over the next five years.

PHOTO COURTESY: NGEN

Gen is the industry-led network committed to enhancing Canada’s advanced manufacturing capabilities for the benefit of Canadians. Built on the principle that the digital transition in advanced manufacturing will enrich the lives of Canadians, NGen supports the companies that will deliver better products and good jobs while generating the economic growth essential to a better future. With a mandate to connect research, technology, manufacturing, and workforce strengths across the country, NGen strives to accelerate the development, adoption, scale-up, and commercialization of innovative solutions that enhance the competitiveness and growth of Canada’s manufacturing sector, add value and new jobs to the Canadian economy, and tackle some of society’s most pressing challenges like health care, food and supply chain security, and environmental sustainability. NGen works to identify, promote, connect, and strengthen collaboration among experts, companies, and organizations that contribute to advanced manufacturing in Canada. It funds and supports transformative, industry-led, collaborative innovation projects with the potential to deliver significant economic and social benefits for

Prairie Manufacturer Magazine • Winter 2021

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Advanced Manufacturing Projects Through co-investments with industry in collaborative projects, NGen supports companies that have the potential to transform manufacturing processes, generate significant commercial opportunities, and contribute to Canada’s advanced manufacturing ecosystem through the transfer of knowledge and intellectual property (IP). NGen-funded projects combine research, technology, and manufacturing capabilities in the development and scale-up of novel manufacturing processes. Collaboration provides project partners with innovation, scale-up, and commercial opportunities they would not be able to achieve on their own. Licensing agreements allow IP arising in projects to be shared with NGen members and applied across manufacturing sectors. To date, NGen has approved investments of $209 million in 135 projects across Canada, leveraging an estimated $515 million in total innovation spending. NGen’s project portfolio involves 306 industry and 119 academic and research partners from across the country – 275 (90 per cent) of the industry partners participating in NGen-funded projects are

Prairie Manufacturer Magazine • Winter 2021

SMEs. One quarter of NGen-funded projects involve interprovincial collaboration among project partners. NGen has approved investments of $29.5 million in 22 projects involving 35 industry and research partners based in the Prairie provinces, which will lead to an estimated $62.7 million in total innovation spending. Fourteen of those projects involve collaboration with partners in other provinces across Canada. All but three prairie project partners are SMEs. To date, projects involving Prairie partners have generated around $100 million in sales. As they progress and the results are commercialized, they are expected to create more than 5,000 jobs over the next five years. Prairie companies and researchers have led in the fight against COVID-19: • Among a number of important contributions to the production of personal protective equipment (PPE), Precision ADM partnered with BOMImed, also in Winnipeg, and Synergy Moldworks in Brantford, Ontario to manufacture new filter material for respirators • Researchers at the University of Saskatchewan helped Sona Nanotech

PHOTO COURTESY: NGEN

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test a new quick-response nano-based test kit for COVID-19 Fidelity Machine and Mould Solutions, Sentinent Tools Engineering, and Fidelity Medical Manufacturing, all based in Calgary, developed an automated system to manufacture procedure masks Titan Clean Energy Products in Craik, Saskatchewan are working with BIGNano and Swenco in Waterloo, Ontario, IPC Technologies in Cambridge, and APC Filtration in Brantford, Ontario to develop a nano-fibre melt-blown production method for PPE and air purification filters Titan is also partnering with Panther Industries in Davidson, Saskatchewan, K&S Potash based in Saskatoon, BIGNano in Waterloo, and Canada Masq in Markham, Ontario to develop a new process for biodegradable melt-blown resin and fabric production for PPE Suncor Energy is partnering with International Point of Care and Immune Diagnostics in Toronto and Precision Biomonitoring in Guelph, Ontario to scale up production of COVID-19 reagents and test kits Roswell DHT in Calgary is partnering with Armfoam from Longueuil, Quebec to automate the production of N95 respirators

Prairie Manufacturer Magazine • Winter 2021

• Northern RNA in Calgary is partnering with Providence Therapeutics from Toronto to develop and manufacture a made-in-Canada COVID-19 vaccine Prairie companies are also developing unique solutions for additive manufacturing and resource processing: • OIC and Prescision ADM in Winnipeg are partnering with Spinologics from Montreal and Pega Medical from Laval, Quebec as well as Halifax-based Conceptualiz to develop and validate an automated software system for improving the additive manufacturability of patient-specific medical devices • Exergy Solutions in Calgary is working with Precision ADM and Suncor Energy to develop and apply advanced manufacturing processes for mining and mineral processing In addition to advanced manufacturing projects, NGen has supported the development and growth of four Prairiebased advanced manufacturing clusters – the Saskatchewan Industrial and Mining Suppliers Association (SIMSA), NanoCanada (Canada’s Nanomedicine Cluster), a new Manufacturing and Export Enhancement Cluster in central Alberta, as well as InnoTech Alberta’s Sustainable Manufacturing Cluster.

NGen has approved investments of $29.5 million in 22 projects involving 35 industry and research partners based in the Prairie provinces, which will lead to an estimated $62.7 million in total innovation spending.

NGen funding has enabled these clusters to connect with other advanced manufacturing clusters across Canada and to develop new performance enhancement and business opportunities for their 600-plus members. NGen has partnered with two Prairie-based education and training partners in its workforce development initiatives: Saskatchewan Polytechnic and the University of Manitoba’s Asper School of Business both contribute courses to NGen’s Advanced Manufacturing Productivity Upskilling Program (AMPUP). NGen also partners with other industry and innovation networks based in the Prairie provinces, including Protein Industries Canada, Agricultural Manufacturers of Canada, the CME’s Manitoba Division, and Manitoba’s Vehicle Technology Cluster.

Looking Ahead At NGen, we’re thrilled to close another successful year of operations and kick off the new year with some exciting initiatives that will set our sights on supporting the development of an electric vehicle supply chain here in Canada. With our Zero Emissions Automotive Manufacturing Challenge now closed, we look forward to announcing the successful project recipients early in the new year. Canada has many of the assets we need to excel as a zero-emission automotive manufacturing nation. We are home to worldleading research and a robust technology sector that are already driving advances in battery- and hydrogen-powered vehicles. Our ready supply of low-carbon electricity

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Built on the principle that the digital transition in advanced manufacturing will enrich the lives of Canadians, NGen supports the companies that will deliver better products and good jobs while generating the economic growth essential to a better future.

Industry needs to work together on this. While amazing research, technology, and manufacturing capabilities can be found across Canada, a far greater degree of collaboration will be necessary to build the vibrant advanced manufacturing ecosystem that will be necessary to develop truly worldleading innovations in the EV sector, attract investment into Canada, and enable Canadian companies to commercialize their solutions around the world. NGen has a critical role to play in this regard.

PHOTO COURTESY: NGEN

should be a magnet for investment on the part of industry looking to reduce its overall carbon footprint. Many of the minerals that go into battery production like cobalt, nickel, and manganese can be sourced from northern Canada. Some of the most innovative auto parts manufacturers – world leaders with their own global production footprints – are headquartered here. Southern Ontario is also home to some of the most productive automotive assembly operations in the world, all of which currently have mandates to manufacture electric vehicles. We are integrated in North American automotive supply chains that have been strengthened by the CUSMA. Time and again, our high-quality workforce has proven itself to be the best in the world when it comes to manufacturing innovation and productivity improvement.

Prairie Manufacturer Magazine • Winter 2021

Saskatchewan’s Manufacturing Sector Shows Resilience Ten-year report emphasizes contributions of manufacturing sector on provincial economy

askatchewan’s economy is continuing to benefit from a manufacturing sector that is resilient in supplying good jobs and growing provincial exports. The Government of Saskatchewan has released its annual report entitled Overview of the Manufacturing sector in Saskatchewan 2010-2020 that provides data on exports, shipments, employment, earnings, and manufacturing gross domestic product (GDP). The numbers look at trends in the sector over the last decade and highlight the positive contribution the sector makes to Saskatchewan’s economic resilience and diversity. The manufacturing sector is a critical part of the Saskatchewan government’s Growth Plan, the province’s roadmap to grow its population to 1.4 million people, maintain a strong economy and create 100,000 more jobs by 2030. The Growth Plan sets goals to increase the value of manufacturing exports by 50 per cent by 2030 and to grow the value-added agriculture sector. These goals support a diverse, resilient, and higher value economy. In 2020, the manufacturing sector made up 5.5 per cent of provincial GDP and employed 31,000 people across the province. Saskatchewan had the second highest manufacturing productivity in the country in 2020 and paid wages that were among the highest in the country. Over the last ten years, Saskatchewan’s manufacturing sector has been one of Canada’s top performers when it comes to increasing shipments and international exports. Between 2010 and 2020 manufacturing shipments have risen from $10.9 billion to $13.9 billion, an average growth rate of 2.5 per cent per year. That’s the third highest growth rate among Canadian provinces and is above the national average of 1.4 per cent. During this

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Over the last ten years, Saskatchewan’s manufacturing sector has been one of Canada’s top performers when it comes to increasing shipments and international exports.

period, shipments grew in four major manufacturing subsectors led by wood product manufacturing, which recorded an annual average increase of 13.5 per cent. Food manufacturing, fabricated metal products, and chemical manufacturing also contributed to the growth in manufacturing shipments. International exports also grew over the last ten years. In 2020, Saskatchewan’s international exports of manufactured goods totaled $5.4 billion and made up 17.7 per cent of the province’s net exports. Between 2010 and 2020, Saskatchewan’s manufacturing exports have grown by 45.8 per cent at an average annual growth rate of 3.8 per cent per year. This was the third highest growth rate among Canadian provinces and is above the national average of 2.6 per cent. During this time, the Saskatchewan government has expanded export opportunities for manufacturers and focused on providing a competitive business environment. The diversity of Saskatchewan’s manufacturing sector is also a factor. The growth of certain subsectors such as wood product manufacturing, food manufacturing and fabricated metal products has contributed to its resilience. Saskatchewan’s international markets for manufactured goods have continued to diversify over the last ten years. Ecuador, Chile, Egypt, Guatemala, and Malaysia have replaced the United Kingdom (UK), Switzerland, Thailand and Turkey in the top ten export markets for Saskatchewan manufacturers. Saskatchewan’s international trade and investment offices will create even more export opportunities for provincial

manufacturers. Four new offices in in the United Arab Emirates, UK, Vietnam and Mexico will open in early 2022, complementing the four existing offices in Japan, India, Singapore and China. The stronger presence in these important regions will allow Saskatchewan to increase exports, generate more investment and engage with new international trade partners. The United States (U.S.) has remained Saskatchewan’s largest export market for manufactured products. In 2020, the U.S. was the destination for more than 70 per cent of all manufacturing exports. From 2010 to 2020, exports to the U.S. grew by about $1.3 billion to about $3.8 billion. China had the second highest share of Saskatchewan’s international manufacturing exports in 2020 at $924 million with Mexico third at $119 million. The growth of shipments and exports over the last decade illustrate the success Saskatchewan manufacturers are having in markets outside the province. The Overview of the Manufacturing sector in Saskatchewan 2010-2020 report also shows the sector is having a major impact within the province. Saskatchewan led all provinces with 4.4 per cent employment growth from 2019-2020. In 2020, 31,000 people were employed in Saskatchewan’s manufacturing sector compared to 29,700 in 2019. Food manufacturing and machinery manufacturing are the largest employers among the manufacturing subsectors with 5,500 and 4,700 employees, respectively. They account for more than 35 per cent of all manufacturing jobs in the province. Saskatchewan manufacturers provide good jobs and pay wages that are

Prairie Manufacturer Magazine • Winter 2021

among the highest in the country. The average employee in Saskatchewan’s manufacturing sector earned approximately $1,191.08 per week in 2020. That is the second highest weekly earnings figure in the country behind only Alberta. The national average was $1,155.77 per week. Wages have been growing at a steady rate in the sector over the last ten years. In 2010, the average weekly salary for an employee in Saskatchewan’s manufacturing sector was $946.73. This annual increase of 2.1 per cent is the third highest among all provinces and above the national average of 1.7 per cent. The numbers in the Overview of the Manufacturing sector in Saskatchewan 2010-2020 clearly show manufacturing is a major generator of jobs and economic opportunities in the province. The sector is now set to benefit from massive amounts of money being invested in Saskatchewan. Several examples include BHP spending $12 billion to complete its Jansen potash mine, the announcement of three new canola crushing facilities to be built in the province, and hundreds of millions of dollars going toward increasing production capabilities in the forestry sector. Long known as a proven powerhouse in agriculture, oil and gas, and mining, Saskatchewan is on track to continue seeing tremendous benefits from its manufacturing sector. From increasing exports to economic diversification, Saskatchewan’s resilient manufacturing sector is building a brighter future for the province. It’s easy to see how the sector’s success is integral to creating a strong, sustainable Saskatchewan.

MANUFACTURING EXPORTS

HAVE GROWN

45.8% BETWEEN 2010 - 2020

Saskatchewan’s Growth Plan includes increasing manufacturing exports 50% by the year 2030. Saskatchewan’s Growth Plan includes a goal to increase the value of manufacturing exports 50% by the year 2030. That goal will be achieved by ensuring Saskatchewan has a competitive tax and regulatory environment for investment, expanding access to Canadian and international markets for Saskatchewan manufacturers and creating incentives that improve efficiency and accelerate investment. For more information on what Saskatchewan can offer your business now and into the future visit saskatchewan.ca. *2020 Figures from Statistics Canada

saskatchewan.ca

Pleasure, empowerment, and confidence in the making By Jeff Baker

anufacturing across the Prairies includes companies and products of all shapes, sizes, materials, and purposes. This means manufacturing isn’t just about ‘typical’ product lines like food and beverage, energy products, aerospace, fabricated metal, wood products, or apparel, to name but a few. Manufacturing in the Prairies includes literally any material that’s transformed by people and/or machines into something else of higher value or higher use. It’s companies and employees providing products that address a gap in the market or solve a problem of sorts. Support and resources for this diverse industry comes from a wide variety of groups, including Canadian Manufacturers & Exporters, NRC-IRAP, Women’s Enterprise Centre, Chambers of Commerce, Tech West, and other industry associations. Manufacturing, as an industry, as a topic, is just what manufacturers and makers do, and the manufacturing community is changing along with the world in which it operates. Ultimately, it’s the needs and wants of people that manufacturing serves to address. Those needs and wants shift

Prairie Manufacturer Magazine • Winter 2021

over time to reflect the transformations of our society and our changing definitions of what is a ‘safe’ topic of conversation. Diversity and inclusivity – including gender diversity, sexual orientation, sexual health, and empowerment - are key to business success and manufacturers need to be on board, not just through talk but through action. In manufacturing that we get to meet folks doing some fascinating work in a sector that ultimately touches everyone’s life at one point or another, and the impact manufacturing has is overwhelmingly positive in countless ways. Let’s take pleasure tech, for one example. Pleasure tech is defined as any technology designed to enhance pleasure, usually sexual. This is an industry that has a global market exceeding $50 billion USD annually, and sales have been going through the roof for years. Meet three manufacturers and makers from across the Prairies who are working to provide products to meet some very meaningful and personal needs, enabling pleasure and building confidence along the way.

ROAMING THE PATH LESS TAKEN New female pleasure tech maker set to revolutionize the industry, improve the lives of customers the world over You’ve graduated with your finance degree, established a career in the Canadian banking sector, made the switch into pharmaceuticals, and are looking to take that next step in your career. You have entrepreneurial spirit and a Prairie can-do attitude to boot. The world’s your oyster! So where do you go, or what do you do next? For Melanie Derwin, that meant building her own company from the ground up and setting out on a path to revolutionize the world of female pleasure tech. Yes Roam and its parent company Serenity Productions were born. From the get-go, Derwin has connected and worked with several organizations, including CME Manitoba, the Winipeg and Manitoba Chambers of Commerce, Women in Tech at Tech Manitoba, NRC-IRAP, and Tech West, who have provided support in a variety of ways. “Carrie Schroeder with CME Manitoba has been instrumental in connecting me with key people,” says Derwin. Even before I was a CME member, Carrie had a few brainstorming calls with me, and since joining, she’s invited me to the Women in Manufacturing conference this year. She’s been a champion from the beginning."

Eureka! As clichéd as it sounds, it was one of those ‘Aha!’ moments for Derwin that launched her journey into pleasure tech development.

“I found that there wasn’t a lot of real variation or innovation in the pleasure tech sector, especially when it came to pleasure tech products targeted to the female customer,” says Derwin. “There’s really one standard motion, and the differences between products and companies really were cosmetic – colour, material, size, shape, etc – but the movement was exactly the same.” “You’ve got more choices and variety in lightbulbs than you do in pleasure accessories, and I thought that’s just not right!”

Headwinds from the start Derwin didn’t know a lot about the industry, but she knew how to do her research and find the people that could help her navigate the uncharted waters. Despite being a newbie in the industry, and despite facing headwinds from a variety of sources, Derwin kept at the research, prototyping, and testing, working to develop minimum viable products, leading to patent applications in both the United States and Canada. “It took a good two and a half years, but I finally got the patents awarded in both countries,” says Derwin. “Having those patent numbers definitely helps the credibility of the business, but there are still barriers at play.”

Getting squeezed by the ‘vice’ Developing a new and innovative product is always a journey, regardless of industry or market segment, but when you’re developing a product that many might see as ‘taboo’, well, it just ups the degree of difficulty, Derwin explains. “I’ve been fortunate to work with a couple of engineering companies who have been open to what I’m trying to do,” says Derwin. “They’ve been very supportive and very professional.”

“I want to bring together a quality sexual health product with credible medical expertise and consumer education, and it’s a real challenge to not get lumped in with the pornography industry. This is just another product that addresses a real part of the human experience; it’s nothing shameful or embarrassing.”

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“But I’ve experienced the opposite reactions too,” Derwin says. “Securing funding has been a challenge, particularly in the venture capital arena, because a lot of firms have ‘vice’ clauses in their agreements and policies. Even though what I’m developing is non-phallic and with branding that is very elegant and classy, there’s still a good segment of the financial industry that won’t entertain working with me.”

Forging a female-led path Derwin and Yes Roam were able to secure funding from NRCIRAP to hire a female engineer to continue the development and prototyping of the company’s products, most of which was done in Winnipeg. “Even in a product segment that is focused on female customers and female sexual health, there usually aren’t a lot of females involved with the working teams,” says Derwin. “Given what we’re trying to do here and who our customers are, it’s kind of a no-brainer.” I’ve been working with the Advanced Manufacturing Lab at North Forge here in Winnipeg,” Derwin says, “and it’s been an awesome experience. As we’re developing more prototypes and figuring everything out, it’s been very cost-effective and very useful.” Asked if she’d like to keep the manufacturing close to home once the product is ready for scale-up and release to the market, Derwin offers an unreserved ‘yes.’ “I think there’s lots of opportunity out there to do this locally or domestically,” says Derwin. “Tons of manufacturers proved they could pivot and take on some really creative products during the last 18 months of the pandemic, so I think there has to be some that I can work with.”

The not-so-perfect storm Like almost every other manufacturer or soon-to-bemanufacturer, Derwin’s company is facing tremendous challenges just getting things going, thanks mostly to the ongoing effects of the COVID-19 pandemic on global supply chains. “When I spoke with my electrical engineering folks earlier in the autumn, they said they’d been quoted a November delivery

Prairie Manufacturer Magazine • Winter 2021

at the earliest for microchips and other electronic components… November 2022,” says Derwin. “And there’s no guarantee on delivery actually happening that far out,” Derwin says. “It’s an awful situation that just seems like it can’t be real.” Beyond the electronic components, Derwin says that sourcing for just about every component or material, including silicone, for Yes Roam’s products is exceedingly difficult at this point in time. “With the delays in electronics, silicone, and other components, it’s putting pressure on the business,” explains Derwin. “Without the parts, we can’t manufacture the products, and we can’t generate the revenue to pay the increased prices for the parts.” “It’s a vicious circle right now,” says Derwin, “but I just know there are local companies in the region who I could work with.

Getting out from the shadows Derwin explains that even advertising opportunities for Yes Roam are limited on social media channels such as Facebook and Instagram. And that’s not good news for a new product in a market that sees most sales being online. “There’s a ‘shadow banning’ that takes place on these sites, where we can’t even use full words like ‘sex.’ You have to purposely misspell things or embed text in images, which really isn’t ideal,” says Derwin. “I want to bring together a quality sexual health product with credible medical expertise and consumer education, and it’s a real challenge to not get lumped in with the pornography industry. This is just another product that addresses a real part of the human experience; it’s nothing shameful or embarrassing.”

Doctors’ orders Earlier in the COVID-19 pandemic, public health officials, including Dr. Theresa Tam, Canada’s Chief Public Health Officer, were recommending methods for safer sexual encounters and acknowledging that sexual health is an important part of overall health for Canadians. “When you have folks like Dr. Tam offering advice for safer sexual encounters during the public health emergency, it helped

and continues to help change the conversation and make people more comfortable talking about this topic,” Derwin says. “The pandemic led to sales in pleasure tech increasing by something like 26 per cent over the previous year,” says Derwin. “Female-focused pleasure tech is already an industry worth $15 billion in North America alone, and that’s only about one-third of the global market.” “There has to be room for quality products backed by credible experts and advice,” Derwin says.

CONFIDENCE IN THE MAKING Social enterprise helping trans people skill-up and build confidence Begun through a friendship between a trans man and an ally who are both committed to supporting the trans community and to creative problem solving, Get Your Joey is a Winnipegbased social enterprise designing and making apparel, accessories, and – most importantly – joeys for customers around the world. A joey is a fabric pouch that holds a silicone prosthetic for trans men and people who pack. The product’s design is unique in that it allows folks to choose their own underwear and pin the joey to it.

A family affair “My business partner, Ro Walker, and I met about seven and a half years ago, and he’s always felt like chosen family,” says Kalyn Falk, co-founder of Get Your Joey. With family, comes laundry. That’s when Falk learned about packing and why Ro often had socks with holes in his laundry basket.

“I said that if he’s got holey or old socks, he can throw them in the garbage,” Falk says, “but he told me that’s not why he was hanging on to those socks.” Walker shared more with Falk about packing and what it meant, and Falk knew there had to be something better; that she and Walker could do better. “I realized he was manufacturing these socks – these pouches – himself, so we worked on things and found there was a real need for something out in the larger community,” Falk explains. “There had to be something better than an old sock, that there could be something designed just for these folks, for this purpose, and it would let them feel better about themselves.” And that was just the start for a business that has been in operation for more than six years.

Around the world “We started with just an Instagram account,” says Falk, “and folks just found out about us and began to email us requesting joeys. We’re now shipping joeys to dozens of countries around the world, and that’s largely from social media and word-of-mouth.” While trans folks are members of communities around the world – in every culture, country, and demographic – the level of acceptance varies widely and means folks often need to be very sensitive and aware of their surroundings and activities, including on-line shopping. “For some destinations, we have to be extremely cautious with our shipments,” says Falk. “We’ll even alter our company name on the packaging so nothing is searchable from our parcels. We’re very aware of our customers’ privacy and safety.” Still, Get Your Joey is delivering products to customers around the globe through a network of distributors in countries

“I realized he was manufacturing these socks – these pouches – himself, so we worked on things found there was a real need for something out in the larger community. There had to be something better than an old sock, that there could be something designed just for these folks, for this purpose, and it would let them feel better about themselves.”

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like Finland and the UK, and direct-to-consumer across North America, New Zealand, and Australia.

In between the competition Falk explains that Get Your Joey products fall into a sort of middle ground between two ‘extremes’ of competitors: old socks and specialty packing undergarments. “The DIY market with socks with holes is huge, but our biggest competition is probably the packing underwear,” says Falk, “but it’s a lot more expensive than what we offer. It has to be a particular size and shape, and then folks have to buy multiples of them.” “Our joeys can be worn with almost any undergarment out there, and since they’re not sewn in or an integral part of a garment, they can be easily swapped between items, depending on a person’s mood or wardrobe choice on a given day,” Falk says. “We’d really like our joeys to become the packing pouch equivalent of Q-Tips or Kleenex, so when folks talk about packing pouches, they immediately think of a joey.”

Making a difference at home Get Your Joey’s mandate as a social enterprise made the decision to design and manufacture their joeys locally a no-brainer. “Both Ro and I are very involved in the trans and nonbinary community, and six years ago there were a lot of barriers to employment for our friends,” says Falk. “Some barriers were physical requirements of people who were

binding or people that needed access to bathrooms, so that would prevent them from working at some workplaces. Some were mental health-related issues where they needed a supportive, understanding environment.” Falks explains one of the reasons why Get Your Joey was started was to provide just that supportive, understanding workplace that would provide members of the trans community with meaningful and safe work experience. “I can provide them with a good reference letter for future employers, and they have some income, which makes a huge difference,” says Falk. “The training part of the work gives them employable skills, and that’s just as important to us as the manufacturing and sending things out around the world.” “We’re really about giving people the ability to live and work as their authentic selves,” says Falk. “We want trans folks to know that we’re really taking the time to think about meeting their needs and ensuring they can live their full lives.” “For cis-gendered folks, they might not know this need is even a thing, but it’s real, and it’s worth our attention.”

KNOWING THE ROPES Artisan ropemaking captivates customers Haven Kink was born in 2010 by Steve "Zemyn" Wayne (Zemyn is the pseudonym used by Steve in the kink community), originally as a venture to create the shibari rope and toys that weren't available at a quality that lived up to his standards.

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Prairie Manufacturer Magazine • Winter 2021

As things progressed, the goal shifted to creating a place that would be a haven for kinksters and skilled craftspeople to explore themselves and their desires in a safe and accepting environment.

Accidentally getting into business Explaining how Haven Kink started as an accidental business, Wayne says he would show his friends the results of his crafting handiwork, and they would often just hand him money and take the items with them. “People would just give me more ideas and ask for my input on their own creations, and I’d go build whatever it was,” says Wayne, “and they’d buy it and tell their friends about it.” Wayne realized he was onto something, serving a market with an unmet need with products that he was making in his home workshop. “I started trying to make it a full-fledged business, not just a table at a local craft- or flea market every six months,” says Wayne. “Then other people came along and started building things with me.” “There’s now six of us in the family, if you will, and every single one of them just met me in the community and said, ‘Hey, will you teach me how to make this thing,’ and they just kind of never left,” Wayne says.

Artistry and precision combined The artistry and precision of what Wayne and his collaborators are making runs right from the very start of the process, well before any shibari play happens. “Everything we sell is individually handcrafted to a ridiculously perfectionist level, because that’s what our customers and even ourselves demand,” says Wayne. “Our artisans use either a rope-making machine with a counterweighted system, or they’ll use a mobile twisting point that moves back and forth,” Wayne explains. “It takes patience and precision to get the fibres to properly twist and countertwist, and make sure the tension is right.”

Improve the process, remove the torture Wayne figured out a technique to force a tighter lay into the rope by twisting individual strands of the same tension, then laying them together using hand tension. “I started doing that by hand, but I eventually switched to using a power drill,” Wayne says. “Nobody really wants to do thousands

of turns by hand on a single length of rope. That was true torture!” Wayne says that the ropemaking isn’t just hard on the hands; it’s also a great way to get your steps in. “The process – the quality control and attention – is very hands on, so when you’re laying the rope,” Wayne says, “you’re walking back and forth with every strand – as much as 100 metres for each individual length.” Each length of shibari rope made by the Haven Kink artisans is 10 metres long, and Wayne says that while he’s made a hundred lengths in a week going full tilt, he really couldn’t lift his arms for a while afterwards. “A few months ago, another one of our creators made 600 lengths, and this is only a part-time gig for him,” says Wayne.

It’s not about sex Wayne explains that kink is something very individual for each person, and there’s not a single definition for what is or isn’t ‘kinky.’ “Often it’s about removing people’s control or inhibitions in some way,” Wayne explains. “It’s really about anything that will get somebody high in their own body without any other chemical stimulants. The boundaries and limits change all the time depending on the place, the person, the culture… all sorts of things.” “There’s a misconception out there that kink, including shibari, is just about sex,” says Wayne, “but most kink and kink events are not about sex. There’s a sexiness to some aspects, but it’s more about making a human connection, having an experience, and even working through something inside themselves. It’s a real community.”

It’s a journey Wayne says his own kink journey has taken years and has given him the opportunity to learn more about himself and what makes him tick. It also gave him the freedom and flexibility to turn a hobby into an accidental business venture that is serving customers both near and far. “I was looking for high-quality, aesthetically pleasing toys like floggers and whips, and especially natural fibre rope, but those things just weren’t available,” says Wayne. “If it was available, it wasn’t of a decent quality at a decent price. So, I just made it myself.” “I’ve always been a crafty person, and I spent the time to learn to craft the ropes until I’d gotten it just right, Wayne says.

“The process – the quality control and attention – is very hands on, so when you’re laying the rope,” Wayne says, “you’re walking back and forth with every strand – as much as 100 metres for each individual length.”

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PHOTO CREDIT: OTTOBOCK.COM

Prairie Manufacturer Magazine • Winter 2021

Making a stand Prosthetics and orthotics combine science and art to make positive impact By David Quinn

ith archaeological evidence in both ancient Egypt and Iran dating from about 3000 BCE, prosthetics are far from being new arrivals to the human experience. The earliest prosthesis in the historical record seems to be an eye prosthetic, made from bitumen paste covered with a thin layer of gold, found buried with an ancient Iranian woman. Fast forward more than 5,000 years, and while we might not be coating our modern prosthetic devices with gold, we’re still innovating and combining art and science in ways that are improving people’s lives.

Starting out, changing paths In the 1970s, Edmonton’s Stan Wlodarczyk started his career in sports medicine and got into the athletic therapy program at the University of Alberta. Ultimately, he spent ten years in that field before realizing where his training and work could have the most impact. “I came to realize that I was wanting to help more the average working person than the professional athlete,” says Wlodarczyk. “I had the option, and I went with what felt right for me.” Wlodarczyk earned his diploma in prosthetics and orthotics from New York University School of Medicine and has attained a Fellowship in the American Academy of Orthotists & Prosthetists – the only Canadian to be awarded this highest of honours. In 1995, Wlodarczyk founded The Prosthetics & Orthotics Care Company in Edmonton and has provided prosthetic services to hundreds of clients since. Over and above his clinic commitments, Wlodarczyk finds the time to lend his expertise and experience in an effort to continue the industry’s innovation.

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“The first appointment or fitting is only the start of the work, and it’s not really ever finished. Clients grow and change, and the prosthesis that we build for them needs to grow and change with them, so we’re always revisiting and adjusting things.”

Managing the pressure “What we do as prosthetists is a fine combination of science and art,” says Wlodarczyk. Unlike dentistry implants, where you’re talking about going into hard tissue like bone, prosthetics works with the soft tissue – the skin and muscle – trying to stabilize it to provide a secure area through which to carry a load.” “Even with a hydrostatic socket, where you’ve uniformly pressured up soft tissue to anchor the bone and minimize movement in the socket itself, it still requires good ol’ trial and error and professional experience. We need to know the materials inside and out, and

it’s really about how we craft each piece for the individual client.

Innovation at work Throughout his career, Wlodarczyk has been involved in developing, testing, and improving innovations to prosthetics that give a new sense of confidence to users. Wlodarczyk was the only prosthetist working in the engineering design process and clinical trials for the prototype of the Ottobock C-leg, the first intelligent microprocessor-controlled knee. “The knee joint is extremely complex and was often a weak point for prosthetic legs,” says Wlodarczyk. “The strength of the joint really depended on how

Prairie Manufacturer Magazine • Winter 2021

the user positioned themselves or how they stepped off a curb or stair. It would sometimes just collapse and send the person to the ground.” “It took about 10 years and hundreds of thousands of dollars, but folks at the University of Alberta’s physiology lab came up with a solution that, despite taking some time for the industry to recognize the value, has become standard issue.” Wlodarczyk has also spent a good deal of his career working with other folks across North America on developing a system of total surface bearing to manage the loading and forces of the body on the prosthesis. Research into the group’s work

PHOTOS CREDIT: OTTOBOCK.COM

SAFETY PRESCRIPTION EYEWEAR SAVINGS UP TO is finding that this new way of securing the prosthesis to the remaining limb is even providing a healing environment due to the way it activates fluid distribution into and out of the extremity.

Teamwork that never ends The prosthetics built and fitted by the team at The Prosthetics & Orthotics Care Company make immensely positive impacts in the lives of patients, but media portrayals of amputees and other prosthetics users – famous or otherwise – can create unrealistic expectations about the work and process. “How or why the limb was taken matters quite a bit to the recovery and life beyond the initial fitting,” says Wlodarczyk. “Sometimes it’s a loss due to disease or vascular reasons, and sometimes it’s trauma- and/or workrelated, so the experience is going be very different for folks.” Wlodarczyk explains that prosthetics involves team-based

care, and the relationship between prosthetist and patient is ongoing and evolving because patients grow, and their lives change. “The first appointment or fitting is only the start of the work, and it’s not really ever finished,” Wlodarczyk says. “Clients grow and change, and the prosthesis that we build for them needs to grow and change with them, so we’re always revisiting and adjusting things.”

At the end of the day “The best reward for me, truly, is when my patients get back to living their lives,” says Wlodarczyk. “Yes, life is going to be different and there will need to be changes in most situations, but the folks I see just get on with it, often reaching a point where the prosthesis is just an inconvenience as opposed to something prohibitive to living.” “When my clients can just get on with living their lives, that’s how I know I’ve made a difference.”

60%

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Employees get the perfect fit with Eyesafe. www.eyesafe.ca mysafety@eyesafe.ca 780.451.9451

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Safety Culture: Values, Beliefs, and Actions By Jamie Hall

orkplace culture is often described as "the way we do things around here." When combined with safety, however, culture is much more involved. Safety culture is easy to talk about, but hard to describe. You often know when you have a good one, but it is difficult to describe why it is good. I have said that we need "to put handles" on safety culture, so that we can grab it, examine it and figure out how it works. At SAFE Work Manitoba, we have been working hard "to put handles" on safety culture to give workplaces some practical tools to understand and improve theirs.

Employers play an important role One of SAFE Work Manitoba’s strategic goals is to champion a culture of safety and health in our province,

where all Manitobans share values and beliefs that support workplace injury and illness prevention. We do this together with industry-based safety programs, like manufacturing’s Made Safe in Manitoba. Employers play an important role in achieving this goal. Employers who actively work to promote a culture of safety put a priority on clear communication, safety programming and reinforcement of safety expectations. These employers recognize safety and health as both a legal obligation and an effective business practice, not a cost.

Values and beliefs guide safety culture Working with our partners, we have developed this definition, which we think will help guide our efforts to ensure a strong and sustained safety culture – across the province

Prairie Manufacturer Magazine • Winter 2021

– for generations to come: A positive safety culture exists when a set of shared values and beliefs about workplace safety and health influences and drives practices for preventing workplace injuries and illnesses. First of all, there are values and beliefs that underpin a strong safety culture. In a strong safety culture, people value and expect a safe and healthy workplace, people in the workplace are considered to be the most valuable resource, and safety and health are valued along with productivity, quality, and pay. In a strong safety culture, people believe workplace injuries and illnesses can be prevented, leaders drive improvement, and everyone plays a part in building safe and healthy workplaces. Values and beliefs are only part of the picture. These values and beliefs must

influence our actions and practices in order to become part of our culture. An example of safety culture in our province is seatbelt use. Try to think of the last time you consciously thought about buckling up your seatbelt. It's been some time for me. Now, most of us automatically reach for it every time we get in the car. This automatic action wasn't always the case. There was a time when cars didn't even have seatbelts. There was a time that seatbelt use wasn't required by law, but through a long effort of legislative changes, awareness promotion, enforcement, and peer pressure, we have a positive and sustained change; a shift in our safety culture where people value and believe in seatbelt safety. I see evidence of a strong safety culture in workplaces and I'm sure you do, too. It's the worker who automatically puts on a hard hat, clips in a lanyard, tests for voltage or locks out a machine. It's the desk worker who takes time throughout the day to get up, stretch, and walk to offset the effects of sitting. It's the supervisor who praises a worker for raising a safety concern, initiates a discussion about the hazards of a work task, or embraces the results of a safety audit or inspection as a means to continuously improve the safety and health of their workers. It's those willing to do things the safe way instead of taking a short cut. Constant actions like these inspire others to adopt these same practices and fortify the workplace's safety culture.

Adopting workplace safety culture

Let’s keep moving forward. Together. Find resources and training at safemanitoba.com

At SAFE Work Manitoba, we believe establishing and maintaining a strong safety culture should be an 14180 SWMways, will seeAdthe public expecting Prairiewe Manufacturer 4.625x7 FIN.indd 1 important goal for all Manitobans and safety and health in the workplace as a Manitoba workplaces – it shouldn't be a community norm. complicated process. To build a strong safety culture we More and more we are seeing safety must emphasize underlying values and and health embedded in educational beliefs surrounding safety and health institutions and provincial leaders in workplaces and in Manitoba society. supporting and investing in safety and Then, we must use this as a foundation health. We are also seeing our laws and to guide our actions and practices. In this standards become more practical and way, we can reduce injuries today and innovative, and enforcement used more prevent them for generations to come. effectively in maintaining a minimum I encourage you to visit safemanitoba. standard of practice. I believe, in many com/safetyculture to learn more about

safety culture in Manitoba and discover 2021-11-29 ways to improve the safety culture in your workplace. For manufacturingspecific safety and health information in Manitoba, please visit Made Safe at madesafe.ca Jamie Hall is the Chief Operating Officer of SAFE Work Manitoba. He is part of a team of people who are passionate about changing the landscape of safety in order to realize significant improvements in safety performance in Manitoba.

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2:47 PM

Manitoba Aerospace

honours industry excellence

ormally, Manitoba Aerospace holds an Aerospace AllStars Awards Dinner to celebrate the aerospace industry in Manitoba and recognize excellence in the aerospace community. Manitoba Aerospace has been holding the annual celebration since 2002. The event recognizes individuals involved in or with the industry or partners who have demonstrated excellence in one or more of a variety of areas from leadership to business growth.

2021 Award of Excellence for Education Jonathan Beddoes, Dean (retired), Faculty of Engineering, U of M

Award recipients are nominated by their industry peers. Although, due to public health restrictions related to COVID-19, Manitoba Aerospace has been forced to cancel the Aerospace All-Stars Awards of Excellence Dinner in both 2020 and 2021, they still want to take this opportunity to recognize excellence in the sector. Three recipients are to be recognized this year for their outstanding achievements:

2021 Award of Excellence for Industry/ Government Collaboration Babcock Aerial Firefighting team / Manitoba Wildfire Service Program

2021 Award of Excellence for Innovation & Technology Development Precision ADM

Prairie Manufacturer Magazine • Winter 2021

PARTNERED CONTENT

Manitoba’s state-of-the-art aerospace and defence industry is the largest in western Canada and is the third largest aerospace hub in Canada, producing and selling more than $2.65 billion dollars of products and services annually.

aerospace and defence industry is also increased. All of this together only serves to strengthen our industry.” Education funding recipients are from Tec Voc High School, Neeginan College of Applied Technology, Red River College, and the Price Faculty of Engineering at the University of Manitoba

Aerospace in Manitoba “In a demanding industry where excellence is the baseline for performance, genuine excellence is key to our sector’s growth and success. The All-Stars Awards of Excellence is an ideal forum for recognizing contributions to our aerospace community,” said Wendell Wiebe, Chief Executive Officer for Manitoba Aerospace.

Manitoba’s state-of-the-art aerospace industry is the largest in western Canada and is the third largest aerospace hub in Canada, producing and selling more than $2.65 billion dollars of products and services annually. Aerospace is one of the province’s premier industries and directly employs more than 5,000 highly-skilled Manitobans.

Helping students and industry take flight

About Manitoba Aerospace

“Since the beginning, the All-Stars Awards Dinner has also been a fundraiser for the Manitoba Aerospace Student Endowment Fund,” said Wiebe.” “Over the years and through the generous support of individuals, companies, and organizations, over $393,000 has been raised for the fund and has helped more than 125 deserving students. Ultimately, this endowment fund is a win-win situation: more students can benefit from specialized schooling and the number of high-quality young people in the

Manitoba Aerospace is a not-for-profit sector association that works to connect the local aerospace industry to national and international markets and also aims to develop a world-class workforce to meet industry’s needs through partnerships with Manitoba’s educational institutions and other key stakeholders. We support and promote the local aerospace sector through business development, innovation, research, and technology as well as human resource initiatives.

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PHOTO COURTESY: ANGELA ARMSTRONG

WOMEN IN INDUSTRY

Prairie Manufacturer Magazine • Winter 2021

Standing out

without standing down By Angela Armstrong

his past summer, I spent a wonderful week with my husband in the mountains, off the grid. Where we went, there is no cell signal, the biffies are composting, and the only things to do are take long walks around, or kayak in, the small fishing lake and light a fire at night while watching the magical Milky Way brighten in the darkening sky. It’s completely relaxing; and it’s an important annual reminder to me that while we live in this increasingly fast-paced digital metaverse, things that matter are refreshingly analogue. My career roots are also rather analogue. I’ve been in the asset financing industry since I left the University of Manitoba with a fresh bachelor’s degree in psychology and criminology. I thought I would end up a lawyer. I actually ended up in finance (there’s a long story there!) When I started my career in finance, to credit-approve a client, we literally snail-mailed them a hard copy application, then waited patiently. All the work of phoning people for references and fact checking the details they provided were using non-digital sources. The internet was only a couple of years old when I started my finance journey. We used phone books and relied on a bunch of knowledge and experience that credit experts earned over years of work in the industry. The oral tradition, and lots of paper files, were critical to us. It seems incredible now. How did we get things done?

Slow and steady Of course, the pace was also much different. The technology that we have activated in the credit and finance world over the last 30 years has contributed to a tremendous amount of growth potential, which I believe has enabled a ton of innovation and entrepreneurial activation in our economy. And it happens so FAST now; we just don’t have the luxury of a snail-mail pace in business anymore. Our expectations and behaviours have changed forever. But this pace is exhausting sometimes. My antidote to breakneck speed is off-grid, a.k.a. snail-mail mode. Back then, a lot of other things were different too. I was one of extremely few women in the industry in Canada. I recall attending an industry conference around 1990. Standing in the huge hotel conference room, I could literally count on one hand the number of females in a room of hundreds of energetic finance professionals.

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Aligning yourself with others on a values basis is healthy. Learning where your goals overlap is absolutely essential in business relationships and in life.

Back then, to get along as a woman in a predominantly male industry, my success strategy was to fit in. How did I know I was having success? When I heard the compliment “You’re like one of the guys.” Back in those days, I accepted this as it was meant – a compliment. I guess to be kind to my younger self, I can say that I succeeded in blending in. In those days, I believed a key to success was to be a chameleon. Don’t get me wrong; I don’t think that getting along with others or finding

common ground are bad objectives. Aligning yourself with others on a values basis is healthy. Learning where your goals overlap is absolutely essential in business relationships and in life. Fitting in is not a bad attribute, but I’m sure glad that being a chameleon is no longer necessary, or desirable, to achieve success.

Fitting in, but at what cost? I am often asked to reflect on what I believe makes a great organization. There

are many things I think are important, including having energetic, smart people who raise one another up. A certain amount of work tension between people who are NOT like one another, though, is just as critical. We all know what happened when group think caused the Challenger space shuttle team to ignore internal team warnings about those ill-fated O rings. In business, group think is literally deadly. “So,” you might ask, “wasn’t all that ‘fitting in’ good for your career? You’re President of your own finance

Full-service accounting for industry clients across Canada Tailored services for Canadian businesses at all stages for 27+ years Making numbers make sense for manufacturers, suppliers, and service providers Sharron Smith-Hnatowich, CPA, CGA 204.774.5595 • hnatowichandassociates@shaw.ca • 318-3025 Portage Avenue, Winnipeg, MB R3K 2E2

Prairie Manufacturer Magazine • Winter 2021

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business, have held leadership roles across the industry, and have been invited to some amazing tables. That looks pretty successful!” And I’d say, you’re right. I learned skills from people who were very talented. I got along with lots of people and had a huge cohort of friends. I had a lot of fun. I have been mentored by exceptional people and encouraged to strike out on my own. But was the end always worth the means? During those years of getting to success, that getting along sometimes got me into some sticky spots, and ultimately a health crisis. That part wasn’t fun at all.

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6:00 PM

Standing up, striking out

It’s much easier with hindsight to deconstruct moments of truth. We do it in our customers’ business journeys all the time, trying to pinpoint opportunities for change and growth. Mine came when I literally hit a wall – a health wall. At that moment, I decided I had to go my own way, or risk the most important thing I possessed. Fitting in as a strategy isn’t new. Immigrants from around the world choose to change their names and try new adopted-country practices to fit in to an unfamiliar culture. Someone probably just popped into your mind as you read that. So no, fitting in isn’t a new thing. However, it’s not optimal either to ask people to give up what makes them uniquely them. I’m not talking about ignoring basic community laws, by the way. But, in business, we all know the risk as leaders of hiring people too much in our own image. It’s awesome to be surrounded by folks with whom we really see eye to eye. In the long run, though, what we end up with is an organization that feels really comfortable.

CMY

A little stress helps us grow; it’s why that proverbial ‘learning curve’ is so darn tiring. There’s healthy stress though, and there’s a state of distress that is debilitating.

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If you’re trying to build a great business, you’ll want to think about this too: healthy tension is the kind that provokes conversation, that challenges conventional wisdom just enough to keep us from getting stale and irrelevant.

PHOTO COURTESY: ANGELA ARMSTRONG

Trying to pretzel yourself into someone else’s idea of “fitting in” feels like it sounds – interesting at first, but, over time, you simply begin to feel like a fraud everywhere. If you’re trying to build a great business, you’ll want to think about this too: healthy tension is the kind that provokes conversation, that challenges conventional wisdom just enough to keep us from getting stale and irrelevant. However, unhealthy tensions arising from acting outside of your own values compass causes otherwise good people to spiral into depression, anxiety, and loss of behavioural and emotional controls. There is a literal correlation between feeling that you’re acting inauthentically and deteriorated mental health.

This type of comfort, unfortunately, to borrow from Pink Floyd, is like being comfortably numb. I’m pretty sure that in the song they weren’t suggesting numbness was a good state of being.

Diversity creates space for improvement Diversity of ideas, opinions, experiences, and personalities makes for robust conversations, and data prove that it leads to better risk management, a happier and more inclusive environment, and more profitability. That’s all true, but there’s another good reason: the health of your team.

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A little stress is good. Distress not so much. A little stress helps us grow; it’s why that proverbial ‘learning curve’ is so darn tiring. There’s healthy stress though, and there’s a state of distress that is debilitating. Living in an environment where you don’t get to show up authentically, as the vulnerable, creative, accountable human being that you are capable of being in good circumstances, has a huge negative impact over time – and this damages relationships, the work environment, and bleeds into home life and physical health. None of that predicts a great outcome, for the person, or for the organization. As a business leader, this is difficult. It’s much harder to lead people very different from you, but it’s also much more valuable – assuming you agree on the ground rules, values and objectives that you DO have in common, and a way to communicate about your differences. When I look back at my moment of health crisis more than two decades ago, that decision was that I absolutely had to forge a new path - one that was authentically mine while still aligning with the core values and objectives around me. That’s when I found real success.

Taking the not-so-easy road It wasn’t always easy. Being different can also lead to being misunderstood, judged, and excluded, even by well-meaning folks. Today, if someone called me “one of the guys,” I would reflect on what I was doing and try and see if I was chameleoning again. It’s a hard habit to break. I would also work hard to ensure that if I did happen to be trying to ‘fit in’, it was intentional. Sometimes it might be the right choice.

I am so grateful for the amazing people I have somehow attracted into my life, that honour the authentic me and allow me to continue to grow and learn, even while I surround myself with new challenges and deliberately put myself (often) into uncomfortable situations. But it’s intentional and measured, and I know what I’m looking for. I also know when it’s the wrong place to be, and I can make an exit.

Embrace the differences, embrace yourself These are the kind of ruminations I have while staring up at that Milky Way during my off-grid time. I am really glad I no longer feel the need to live as a reflection of someone else. It’s so much healthier, for me anyway. If there is one thing we’ve learned in spades from the last two years, it’s that the societal warehouse of social sameness is often just a façade. Underneath that homogenous roof are rooms full of challenging and provocative disparity and diversity. Also under that roof is a room that allows us each to show up as uniquely ourselves, too. I’m going to keep opening the door to it, because I know that it’s okay to stand out a little. Angela Armstrong is President of Prime Capital Group, a national equipment finance organization. She started her finance career on the Prairies with a Winnipeg start-up and now calls Edmonton home. Angela is active in the community and serves on industry, for-profit and social purpose organization boards, as well as being an angel investor and a passionate change agent.

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Prairie Manufacturer Magazine • Winter 2021

Insurance in a

Global Pandemic By Greg van Ginkel

rairie manufacturers are used to dealing with challenges. From supply chain issues to international border closures, the impacts of the COVID-19 pandemic on this sector are significant. Insurance coverage for manufacturers is no exception.

Impacts of COVID-19 on the Insurance Industry In considering the impact of COVID-19 on manufacturing insurance, it’s helpful to first understand how the pandemic has affected the global insurance industry. A traditional industry with deep roots and a long history, insurance underwriting is largely driven by people in offices. The transition to working from home presented new challenges for these operations, including limiting underwriters’ access to important systems and files. This has reduced insurers’ capacity to process submissions and, in many cases, has left manufacturers with fewer viable insurance options. Simultaneously, COVID-19 has reduced profits for businesses around the globe. These businesses are turning to their insurers, who are and will continue to be inundated with general inquiries and claims across multiple lines of insurance. The global insurance industry has had to react to this influx of activity while managing the challenges of remote work. In addition, the volatility and falling interest rates within the financial markets will likely impact general insurers from an earnings and solvency perspective. The impact of COVID-19 on global insurance markets is largely felt through asset risks — notably, capital markets volatility and weaker premium growth prospects. As the insurance industry is global in nature and as countries are at different stages of their own COVID-19 pandemics, there are major barriers in gaining quick responses to decisions that are required to underwrite certain classes of risk. Within manufacturing, any type of activity or product that has the potential — or the perceived potential — to create property damage or result

in bodily injury will be scrutinized very heavily, which will result in loss of coverage, higher deductibles, and increased premiums.

Underwriting considerations for manufacturers As a direct result of COVID-19, the factors used to evaluate risk have broadened. Different types of insurance, including cyber, credit, property, and general liability are being scrutinized more stringently by underwriters in the manufacturing sector. The insurance industry is rapidly adopting technology used to collect and analyze data. The underwriting community is able to gather and analyze data more precisely than ever before. This has resulted in a much more targeted approach to underwriting, pricing, and the acceptance of risk. When assessing manufacturing risks, underwriters analyze the specifics of the products being produced, including what the products are, where they are sold, who will use them, the production process, the physical attributes of the manufacturing facility, and where that facility is located. An underwriter’s perception of manufacturing risk is determined by the type of operation or products produced. For example, a Prairie agricultural manufacturer producing non-moving parts, such as harrow blades, has much different exposures than does a business producing grain augers or post hole thumpers that people use and have a greater exposure to injury. Similarly, the physical property risk of loss is much different between a light metal manufacturer using non-flammable materials or processes and a plastics manufacturer. The effect that products and operations may have on third-party losses covered by the insurance industry are highly scrutinized. A manufacturer’s ability to articulate details of their operation and how they mitigate risk is crucial. Similarly, insurance brokers must be familiar with the manufacturing sector and the nuances associated with specific operations. If a broker representing

As the insurance industry is global in nature and as countries are at different stages of their own COVID-19 pandemics, there are major barriers in gaining quick responses to decisions that are required to underwrite certain classes of risk.

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a manufacturing company is not able to effectively communicate the intricacies of the business, it is likely that underwriters who are unfamiliar with that operation will pass on offering terms. Being able to separate one company from the rest of the industry while articulating why that entity is a better risk will result in more and better terms than those received by competitors. That is not to say that the terms of this coverage will be ideal, but that this work will help to obtain coverage that may not otherwise be available.

How insurance market conditions impact manufacturers Insurance rates for the manufacturing sector have been on the rise since 2019. COVID-19 has exacerbated a withdrawal in underwriting capacity since then, resulting in more competition among insurance customers. This lack of capacity is, in part, due to declining financial results for insurers around the globe. This decline is influenced by several factors, the most notable of which is losses related to claims surpassing revenue from insurance premiums. These factors have significant implications for various lines of insurance that many manufacturers carry. For instance, it is anticipated that credit insurance will be hit hard. This insurance covers businesses against debts that cannot be paid by their customers or suppliers. Coverage for credit insurance has limited exclusionary language — if corporations go out of business due to COVID-19, insurers will be faced with significant default claims. Consequently, rates for this line of insurance are set to increase dramatically. For manufacturers selling into the United States, product liability litigation exposure is significantly higher than it is for manufacturers selling within Canada. A liability claim south of the border is likely to result in a minimum of tens of thousands of dollars in litigation costs. The impact of this reality on small and medium-sized manufacturers is considerable, as they will ultimately pay for this cost in the form of increased premiums or deductibles. With the volume of litigation having increased significantly throughout the pandemic, it’s expected that premiums for this line of insurance will only continue to increase, even if a manufacturer’s exposure has remained consistent. Due in large part to the SARS outbreak in the early 2000s, most insurers have since introduced exclusionary clauses for communicable diseases and epidemics/ pandemics to property and casualty products, including

Risk mitigation consideration should be given to purchasing spare pieces of critical equipment or components where lead times for such components may be impacted by the supply chain.

Prairie Manufacturer Magazine • Winter 2021

business interruption insurance (BI). Indirect loss coverages, like BI, typically pay a claimant only if physical damage occurs to a business’ assets. As a result, COVID-19-related BI claims may not be covered — or, if they are, that coverage is likely to be limited to the time it takes to disinfect the affected property. It is notable that there are several mass tort and class action lawsuits already underway to dispute related policy restrictions.

Mitigating rising premiums Manufacturers can help mitigate the impact of current underwriting restrictions, rising deductibles, increased business interruption waiting periods, and rising premiums. One of the keys to doing so is demonstrating that there are strict processes in place to account for and mitigate anticipated supply chain issues should the manufacturer suffer an insurable loss, such as fire. Risk mitigation consideration should be given to purchasing spare pieces of critical equipment or components where lead times for such components may be impacted by the supply chain. It is recommended that manufacturers consider limitations of liability on product performance when negotiating pricing with their customers. The implementation of indemnification clauses and hold-harmless agreements should also be considered. Though these contractual elements may appear to reduce a manufacturer’s competitive advantage, they have the potential to sustain and protect the industry. If significant losses continue to occur for manufacturers, the insurance industry may reduce coverage or eliminate it entirely. These losses existed before the pandemic and have only been exacerbated by supply chain shortages and delays. An additional area that requires risk mitigation is workers' compensation claims. We may see spikes in workers claiming they were not adequately protected by their employers against exposure to the COVID-19 virus brought about by their normal working duties. In the Prairies, most employees are covered under provincial workers’ compensation plans, but the cost of claims overall will be passed on through higher future premiums. Manufacturers will need to implement measures to help reduce the chance of virus spread. Risk mitigation has always been important in manufacturing. Since COVID-19, it is now one of the most important areas of this business sector — not only for safety, but for reducing the cost of risk transfer as well. Greg van Ginkel is Managing Partner with EQUA Specialty Risk Partners Corporation in Regina, working as a specialist in risk strategy and program formulation for North American organizations. With nearly 40 years in insurance and risk management, Greg has extensive experience with risk in almost every industry, including manufacturing, power utilities, construction and design, energy, telecommunications, finance, real estate, government, education, agriculture, and transportation.

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Scan this to check out The Dream Book now.

Visit www.thedreamfactory.ca/dreambook or call 204-989-4010 to find out more about how you can help, today.

The spirit of the holidays in the air and so is the magic that comes along with it. With that in mind, we have something really exciting to share with you. Something that has the power to harness that magic and make this the best Holiday ever for kids with life-threatening illnesses and their families. We are proud to introduce the first-ever Dream Factory Holiday Gift Guide – The Dream Book! This special guide is filled with toys, games, and so much more. Above all, it is filled with hope. This hope provides many Dream Kids something to look forward to during some of the hardest moments they will face. The Dream Book will show you how you have, and can continue to bring a smile to the faces of sick kids here in Manitoba. It is filled with the joy, excitement, and anticipation of childhood dreams that comes with the holiday season. But it’s also full of stories of the bravery Dream Kids show during some very hard battles. Dream kids like Kayne, a little boy with a rare genetic disorder. Ethan, who’s fighting a brain tumor. Malachi, who was born with part of his diaphragm missing. Jasmine, who has a rare lung condition. Emma, who’s had brain surgery. Azariah, a little girl with a rare kidney disease. And Jubilee, who has a rare nerve-cell disease. By shopping this guide, you will have the power to make Dreams come true for Dream Kids like Kayne, Ethan, Malachi, Jasmine, Emma, Azariah, and Jubilee. You can help bring joy, magic, and hope to sick child in Manitoba during the holidays. And thanks to our friends at Bonafide Construction Solutions Ltd., your compassion will go even further this holiday season. They have generously committed to matching all donations from caring supporters like you up to $30,000. That means your special holiday gift will have twice the impact for Dream Kids this holiday season! So please, take a minute to browse through our first-ever Holiday Gift Guide and discover how you can make a child’s Dream come true. I think you’ll find that as you do, you’ll discover the true meaning of this special season for yourself. Prairie Manufacturer is proud to support The Dream Factory - a Manitoba charity making dreams come true for children in our community who are battling life-threatening illnesses.

QUESTIONS

on winter travel and insurance with Megan Douglas, Vice President of Customer Relations & External Affairs with Saskatchewan Blue Cross

What do I need to think about as I’m booking a winter getaway? As you’re planning travel, it’s important to stay up to date on travel advisories, entry and departure requirements, your destination health guidelines, and the fine print and coverage details of your travel insurance plan. Each can affect your plans and budget. Guidelines and rules are evolving fast, so be sure to check for current information during booking and prior to your return to Canada at travel.gc.ca. When you’re selecting a destination, consider what would happen if you had a COVID-19 related medical emergency or positive test while you’re away. Ask yourself what your insurance would cover, what the quality and access to care would be like at your selected destination, and what kind of costs you might incur above and beyond your travel insurance if you had to extend your stay for a medical emergency. There are a lot of resources to help you plan. Fair Health, an independent nonprofit, tracks health care costs in the USA with an online interactive tool displaying state-by-state costs associated with COVID-19 treatment which can range from as low as $31,339 for noncomplex COVID-19 hospitalizations to as high as $472,213 for complex cases. Your travel agent can also provide information on which all-inclusive destinations are offering complimentary accommodation or meals on their premises should you need to quarantine if you test positive prior to flying home. What do I need to ask my insurance provider before I buy travel insurance? Travel insurance offering COVID-19 coverage is pretty easy to find these days, however not all plans are created equal. Be sure to ask these critical questions of travel insurance plan providers for a clear understanding of what coverage maximums are, what medical and non-medical expenses a plan covers, and to ensure you’re adequately protected for the destination you’re travelling to. Remember, travel insurance is an important consideration not just for travel abroad, but inter-provincially within Canada too. • What are the coverage maximums for COVID-19? • Does the plan include quarantine costs? Would my accommodation and meals be covered if I have a COVID-19 medical emergency and need to extend my stay?

Prairie Manufacturer Magazine • Winter 2021

• Can I extend the duration of the plan if I test positive and need to stay for quarantine? Is there a cap on the number of days I can extend coverage? • Will the plan cover the costs of repatriation if I need a medical transfer home? • What happens if I need to change my travel dates due to changing travel restrictions? Where can I learn more about COVID-19 testing requirements for returning to Canada? You’ll find the most up-to-date information at travel.gc.ca. Right now, with limited exceptions, travellers entering Canada require a negative molecular polymerase chain reaction (PCR) COVID-19 test – rapid antigen tests are not accepted. The costs and availability of these tests differ by country, so it’s important to do that research before you depart and factor that into your travel plans. Remember, travel insurance protects for the unknown and unexpected. Most plans will not cover the costs associated with required PCR tests as these are a known cost of travel. What should I consider while I’m away? Be sure to stay apprised of health and travel advisories at your destination while you’re travelling. Things can change rapidly, and you’ll want to stay informed of evolving COVID-19 transmission activity, public health measures, and personal protective requirements. You’ll also want to check for any changes to departure requirements that may impact your return journey. What should I expect when I return home? Beyond planning for the PCR test requirements, you’ll need to download and use the ArriveCAN app. This app is where you’ll submit your contact information and travel details, vaccination information, pre-entry test results, and your quarantine plan. You may be required to take an arrival test as well upon re-entry to Canada and if you’re travelling with children under the age of 12, you’ll also need to plan for them to not attend school, camp, or daycare for the 14 days following your return to Canada. You’ll find the full list of current requirements, exemptions, monitoring and testing protocols, and how the Government of Canada defines being fully vaccinated at travel.gc.ca. Travel safe!

AMP UP

by Next Generation Manufacturing Canada

Workforce Development NGen Canada is the industry-led, non-profit organization that runs Canada’s Advanced Manufacturing Supercluster.

NGen is founded on the principle that the transformation to advanced manufacturing will enrich the lives of Canadians,

delivering better products and good jobs while generating the economic growth essential to a better future. Our network has over 4,000 members today! Join Today

“Advanced manufacturing is about

people, processes and technology.“ Information:

44 Courses Available 81 Training Institutions 50% of the cost of training covered* Visit ngen.ca/workforce/amp-up for details Prepare your workforce for the challenges of tomorrow.

*Under AMPUP, NGen will cover 50% of the cost of training for Canadian manufacturers to enroll their employees in selected skills development and certification programs offered by established trainers.