Prairie Manufacturer - Issue 3 • Volume 7

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Room to Issue 3, Volume 7 • Winter 2022

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Publisher Ronda Landygo ronda@prairiemanufacturer.ca 877.880.3392

In this issue The Human Factor: workplace training

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With ongoing challenges posed to the success of companies and workplaces, employers must recognize that the skills needed for their employees to thrive are ever-changing. Workplace training needs to be part of your human resource development arsenal.

Prairie Economic Roundup

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Labour and skills shortages are taking a big bite out of business for manufacturers across the Prairies. The situation is bad, and it’s not going to get any easier anytime soon. Are companies responding appropriately and in a timely manner? Well, the answers might surprise you.

What makes a contract?

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Contractual and other business matters are being discussed via texts, email, even social media. Negotiations are taking place there too.

While the ability to negotiate a contract via text message is certainly convenient, it raises the question of ‘is it actually a contract?’

When play is your work

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A fourth-generation, family-owned and operated manufacturing company in Medicine Hat is a big deal in playground equipment. Learn how a traditional blacksmith shop transformed into a market-leading maker of playgrounds and outdoor furnishings.

Growing gender diversity in industry

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Women are under-represented in the technology sector, and the situation hasn’t changed much in the last decade. Kylie Woods, founder of Chic Geek, is working to change that fact and help women succeed and thrive in the tech sector and be role models for the next generations.

Next issue Digital manufacturing Games, apps, and other Internet-driven specialities. The products are built from 1’s and 0’s, instead of metal and plastic, but they’re enabling the transformation of traditional sectors into the realm of advanced manufacturing.

From the Prairies to the world Prairie Manufacturers who are sending something of our corner of the world to all sorts of far-off destinations. After all, the Prairies are home to folks making things the world wants.

Booking deadline: April 14, 2023 Material due: April 21, 2023

Editor Jeff Baker jeff@prairiemanufacturer.ca Special thank you to our editorial advisory committee.

Creative Director Dana Jensen dana@titaniumgraphicdesign.ca Sales info@prairiemanufacturer.ca © Copyright 2022 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 Return undeliverable Canadian addresses to: Prairie Manufacturer Magazine 847 Jessie Avenue Winnipeg, MB R3M 0Z7 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 Chic Geek Proudly printed by Quantum Graphics & Consulting Printed in Canada | 12/2022

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Editor’s Notebook

It was just a delay!

We now return to our originally scheduled 2020, already in progress

By Jeff Baker “My point is that we’re on the verge of one of those moments: the numbers denoting the year on our calendars will change from 2019 to 2020. It’s the rolling over of numbers that happens every year, but something feels different about this one.

Something about 2020 makes it seem like we should have a certain clarity of vision, a clear direction and direct path toward whatever is in the future. It all sounds either too good to be true or like a heck of a lot of pressure on us.

When we’re living and operating in a topsy-turvy world filled with chaos, where instability is the new stability, and up is the new down, having crystal clear vision is probably a stretch for most of us. So, what can we do to keep moving forward?

Focus.

Focus on the possible… on the potential… on the paths not yet trodden.”

Yeah… that’s an extract from my Editor’s Notebook in the Winter 2019 issue. Boy, if

only I’d had a crystal ball at that point… I might not have been so optimistic!

Perhaps, though, if it weren’t for that little hiccup that was the last nearly three years (also known as the COVID-19 pandemic), we might have had that year of clarity.

‘traditional’ ways weren’t necessarily the best we could do. We also learned the importance of pivoting and being agile in our responses to things unknown.

And we learned that maybe some of our priorities as a society had gotten a bit screwy. But maybe that’s just me.

Focus

In this issue

Over the last while, I’ve found myself looking both back to what was before the world changed, and to what is yet to come. I appreciate the opportunities presented by both perspectives.

Through the challenges that we’ve faced – collectively and individually – I’ve discovered that the clarity for which I was hoping to arrive in 2020 is now showing up in things today. And its showing up in things both big and small.

We’ve learned that a lot of our jobs and functions can be performed differently, that the ‘usual’ and

I’m thrilled to welcome you into this winter issue of Prairie Manufacturer. It’s been another adventure tracking down stories and contributors!

In this issue, we’ve got some valuable insights into the positive impact that diversity and inclusion can have on your company, your employees, and your community.

The Founder of Calgary-based Chic Geek shares how her organization is working to increase the rate of retention of mid-career women in the tech sector and connect them with meaningful

Whatever and however you celebrate, I hope you can do so with the folks who mean something in your life – be they your family and/or your chosen family.

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Prairie Manufacturer Magazine • Winter 2022

opportunities with mentors and career role models.

If you’ve wondered about increasing the diversity of your company’s board of directors (or even your executive team, read about the power of diversity and how to unleash it from board and governance expert, Linda Wood Edwards.

Work hard, play hard If you’ve thought that manufacturing is all work and no play, well… I’m here to tell you differently!

Central Alberta is home to several manufacturers specializing in watercraft – both commercial and recreational. Meet one company that’s got their customers jetting across the waves in high style.

We then head southeast to Medicine Hat, where we introduce you to a fourthgeneration family-owned and operated company making playground equipment and other outdoor furnishings that are sold from coast to coast to coast.

Chances are, if you’ve found yourself at a Canadian playground, you’ve probably played on something this company designed and built.

And finally, our friends at PrairiesCan introduce us to a Saskatoon-based manufacturer of e-bikes that are taking over the world (well, maybe the roads!).

Charge up, hop on, and let’s go for a spin!

Coming in spring This coming spring will mark Prairie Manufacturer Magazine’s seventh anniversary of publishing. As we add another candle to our cake, we’ll be taking an opportunity to refresh a few things and put a new coat of paint here and there.

But don’t worry… it’s not a teardown!

In the next issue, we’ll explore the world of digital manufacturing, including games, apps, and other Internet-driven specialities. The products are built from 1’s and 0’s, instead of metal and plastic, but they’re enabling the transformation of traditional sectors into the realm of advanced manufacturing.

We’ll also connect with Prairie Manufacturers who are sending something of our corner of the world to all sorts of far-off destinations. After all, the Prairies are home to folks making things the world wants.

And lastly, we’ll take some time to look at manufacturers working up close and personal with the natural resources sector as customers and suppliers.

Wishing you the best So, with that, I wish you and yours the best as we approach this holiday season.

Whatever and however you celebrate, I hope you can do so with the folks who mean something in your life – be they your family and/or your chosen family.

For all of us at Prairie Manufacturer Magazine, our extended family includes you – the members of the Prairie manufacturing community. We wish you each the best of the season, and we hope you enjoy the read.

Until we chat again.

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5

The Path to Success is Paved with Skills Foundational skills for the individual are key to organizational success, but are far from universal

By Kara Finney

H

ow many workplaces, no matter what size have asked the questions: Where are the workers? How do we address what seems to be increasing labour shortages? What if they are already working, obtaining further education, or retired?

Can we wait until people start coming back? Will they come back?

In August 2022, Statistics Canada reported what workers look for when considering a job. The top five include Salary and Benefits (85.4%), Workplace Health and Safety (82.2%); Job security (71.2%), Relationship with supervisor and colleagues (78.5%) and Job Autonomy (71.2%).

These primary needs are non-optional if workplaces want to keep workers, let alone attract more. But with the ongoing threat to workplace economic success, even survival – and with an understanding that the skills needed to thrive in the new world of work are ever-changing, employers also need to reconsider workplace training as a critical piece of any retention strategy.

Skills development can no longer just be a ‘nice to have.’ Training must be strategic. It must meet the need of the worker and the workplace both in content, focus, duration, and timing.

Skills for Success Workplace Education Manitoba (WEM) provides training within the Skills for Success framework. These are the foundational skills needed for work and life. Details on the nine skills that form this framework are available from Employment and Social Development Canada.

The key to skills training isn’t just the targeted skills response but that it is actually about transferring the skill to performance.

Using relevant workplace content, the training response takes you through skill attainment to successful performance.

“Soft skills, also referred to as “power skills,” were important prior to the pandemic. But the need to build relationships virtually and work with reduced oversight has made soft skills in the workplace even more important.

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Prairie Manufacturer Magazine • Winter 2022

PHOTO COURTESY: KARA FINNEY / WEM

THE HUMAN FACTOR

In fact, in our 2021 Global Career Impact Survey, many of the top skills that respondents identified as upskilling needs within their teams or organizations were soft skills. Among them were management and leadership (34%), critical thinking (24%), creativity (24%), and problem-solving (20%). In his report, Bersin also predicts that organizations’ focus on these skills will grow. Companies will reassess their leadership models and the skills leaders need to succeed in their roles.

- From Emeritus.org – Future of Work: Workplace Trends This information directly relates to the Skills for Success framework and its relevance. With skills including Adaptability, Problem Solving, and Collaboration, to name but three of the nine, it shows the importance of looking to this framework for workplace delivery – both in pre-employment and within the workplace. There are several delivery models that WEM uses in its skills responses.

Build training to support positive change In partnership with a major manufacturer in Manitoba, the workplace and WEM have developed a system towards successful worker engagement and success. This workplace understands that it isn’t just about where the individual is today but where they can be with the right supports and how they can show the desire to be a part of your workplace.

WEM has worked with a major printing company for over 10 years. The company, like many, had consistent issues finding the workers needed to meet their growing needs, let alone their current needs. The response? Workplace training.

First, the importance of an assessment to determine where individuals were at was the starting point. Those folks who were ready or close to ready were hired. The workplace set time aside during the workday for them to be a part of a training program to provide upskilling in specific areas. For those not yet ready, WEM provided a response to support movement to readiness.

The company then used the appropriate assessment for both before and after, so that each worker entered and left the program based on their skills.

Everyone can benefit Often the response WEM gets in conversation around the Skills for Success framework is that this training response is for individuals with lower-level skills. It’s a misconception, however, that every individual has all the skills needed to successfully perform their job. Truth be told, we’re all faced with challenges each day that could be supported through attainment or improvement of skills: dealing with change, working in teams, dealing with conflict, communicating instructions in a way that others can clearly understand, et cetera. These are only a few examples of where we each use skills that may benefit from a training response.

And what would this mean to a workplace? Well, to start, organizations will see increased retention, reduced sick time, and a workplace that the workers want to come to every day. These outcomes are in direct relation to where this conversation started. How do we find the workers we need? How do we get them to stay? It is about looking at the workplace in a different way. Where staying the same is not an option. In order to change, skills are needed to support that change. Just saying change is going to happen will, usually, just keep everything the same.

One step at a time Strategic workplace training is a multi-step process, and the key is proper assessment. When workplaces take the time to do a comprehensive needs assessment, it can offset high costs of training. Employers also need to look at how training can best be incorporated while concurrently considering how job and job roles have changed. All this impacts how to make continuous learning strategy and organizational training plans effective. Understanding this is critical for workplaces to thrive in the new world of work.

Kara Finney is Chief Executive Officer of three partnering organizations: Workplace Education Manitoba (WEM), Essential Skills Manitoba (ESM), and Workplace Prior Learning Assessment and Recognition (WPLAR) - organizations that directly support both Skills for Success and Recognition of Prior Learning (RPL) across Manitoba and Canada. With extensive experience in manufacturing and supply chain, Kara understands the benefits and opportunities of integrating Skills for Success and RPL into the workplace and beyond.

www.prairiemanufacturer.ca

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ECONOMIC ROUNDUP

The Skills Gap is Widening: How are Manufacturers Responding?

The challenge becomes more complex, requiring more complex and nuanced responses

By Jayson Myers

L

abour and skills shortages are taking a big bite out of business for manufacturers across the Prairies and across Canada.

According to CME’s 2022 Labour Survey, 82 per cent of Canadian manufacturers are experiencing a combination of labour and skills shortages. They are most severe when it comes to skilled production workers, general labour and assembly jobs, and supervisory roles, less so for positions in marketing, business development, and technology. A full 62 per cent of manufacturers have lost or turned down contracts due to worker shortages, while 47 per cent have delayed or cancelled investments in new plant and equipment.

Delivery delays and operating costs are increasing. Customer satisfaction and the mental health of existing workers are both suffering as a result.

Data from Statistics Canada tells a more detailed story for the

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Prairies, as well as for the country as a whole. Statcan’s Business Conditions Survey (BCS) for the third quarter of 2022 indicates that 38 per cent of manufacturers across Canada are experiencing labour shortages while 42 per cent are finding it difficult to recruit skilled workers. Combined, the figures come close to CME’s result.

The BCS also finds that 30 per cent of manufacturers across Canada are finding it difficult to retain skilled employees. The problems increase the larger a company is, and conditions are not improving. Over 57 per cent of manufacturers across the country say that challenges in recruiting and retaining staff are worse today than a year ago.

No sector is immune Manufacturers face employment difficulties, but so does every other sector of the Canadian economy. The labour market is tight. Canada's overall

Prairie Manufacturer Magazine • Winter 2022

unemployment rate fell to a record low of 4.6 per cent in October 2022. It was 3.2 per cent in manufacturing. Job vacancy rates, which now average 5.3 per cent for manufacturing and 5.9 per cent for the economy as a whole, have doubled over the past five years.

There are some notable differences in the Prairies. In Manitoba the manufacturing unemployment rate has averaged a mere 1.6 per cent this year.

Yet, while 30 per cent of Manitoba manufacturers are facing labour shortages, 33 per cent are finding it hard to recruit skilled workers, and 29 per cent are experiencing difficulties retaining skilled workers, they are doing better than the national average and, at 3.8 per cent, currently have one of the lowest job vacancy rates in the country.

Conditions in Saskatchewan and Alberta are more challenging, especially when it comes to attracting and retaining skilled workers.

In Saskatchewan, the manufacturing unemployment rate is 2.5 per cent. Just over 37 per cent of manufacturers in the province are facing labour shortages, 47 per cent are finding it difficult to recruit workers with the skills they need, and 34 per cent are having trouble holding on to skilled employees.

Conditions are even tighter in Alberta even though, at 3.5 per cent, the manufacturing unemployment rate is slightly higher than the national average. Statcan reports that 43 per cent of Alberta manufacturers are currently facing labour shortages, 45 per cent are having trouble recruiting skilled workers, and 38 per cent are experiencing difficulties in retaining skilled employees.

In both Saskatchewan and Alberta, labour shortages, skills retention, and recruitment are obstacles for about one-third more companies in the manufacturing sector than for all businesses in those provinces even though job vacancy rates of 4.0 per cent are lower than the Canadian and their respective provincial averages.

It’s just getting started Don’t expect labour and skills shortages to disappear anytime soon!

Demographics are against us. Twentysix per cent of Canada’s manufacturing workforce will be retiring within the next 10 years. It’s a bit better on the Prairies, but not by much. Manitoba manufacturers will lose a fifth of

their employees by 2032, Alberta manufacturers 22 per cent, and Saskatchewan manufacturers 19 per cent.

Where will all the new workers come from? It won’t be from growth of the manufacturing labour force without serious interventions by manufacturers themselves.

Although Canada’s labour force has grown by 10.3 per cent over the past decade, the number of workers employed or seeking jobs in manufacturing has fallen by 2.1 per cent. Same story on the Prairies – with one exception. Manitoba’s labour force has increased by 7.6 per cent since 2012 but by only 2.1 per cent in manufacturing. In Alberta, the overall labour force grew by 10.5 per cent yet it shrank in manufacturing by 8.0 per cent.

The exception is Saskatchewan. That province’s labour force has expanded by 5.6 per cent over the past 10 years, but individuals employed or looking for work in manufacturing is a full 14.7 per cent higher than in 2012.

Young people are an answer A key determinant of labour force growth in manufacturing is the number of young people looking for employment in the sector. Across Canada 1.0 per cent fewer individuals aged 15 to 24

are now employed or looking for jobs in manufacturing than 10 years ago. In Alberta 27.1 per cent fewer young people are now in the manufacturing labour force. However, it’s a much more positive picture elsewhere on the Prairies. The number of young people under 25 years of age entering the manufacturing labour force is up 20 per cent in Manitoba and by 9.2 per cent in Saskatchewan.

Of course, it’s one thing to have young people looking for jobs and another to find young employees with the skills and experience that companies require. Across Canada the overall unemployment rate for individuals under the age of 25 is about twice as high as the national average. The same goes for manufacturing. It is the same case for the overall unemployment rate in each of the Prairie provinces.

However, Prairie manufacturers seem to be more reluctant to hire younger workers than other employers. Youth unemployment rates in manufacturing are four times higher than rates for the sector as a whole in Manitoba, Saskatchewan, and Alberta.

Under-representation matters One way that manufacturers are looking to fill job vacancies is by hiring

Don’t expect labour and skills shortages to disappear anytime soon! Demographics are against us. Twenty-six per cent of Canada’s manufacturing workforce will be retiring within the next 10 years.

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Manufacturing Labour Force 2022 35% 28.9%

30% 25%

26.1%

25.5%

26.0% 22.2%

20.1%

20%

22.6%

19.2%

15% 11.3% 10%

10.0%

8.9%

10.0%

Respond like you mean it

5% 0%

Canada

Manitoba 55 Yrs +

Saskatchewan

15-24 Yrs

workers from under-represented groups.

One third of companies across Canada say they are looking to diversify their workforce, 38 per cent in Manitoba and Saskatchewan, and 26 per cent in Alberta.

They are having mixed results. Across Canada, for instance, women account for 29 per cent of all manufacturing workers, up from 28 per cent a decade ago. There are three per cent more women working in the sector than in 2012, but three per cent fewer women under the age of 25.

Women account for a slightly lower proportion of manufacturing workers on the Prairies. Just over 26 per cent of all manufacturing workers in Manitoba are women, up from 24 per cent a decade ago. However, Manitoba’s women

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50 per cent fewer women under the age of 25.

Manufacturers are also hiring more Indigenous employees. Across Canada, Indigenous employment in construction and manufacturing jobs has increased by 39 per cent since 2012. But, despite being home to almost 40 per cent of Canada’s Indigenous population, it’s been slower growth in the Prairies where the number of Indigenous workers in the two sectors has grown by only 17 per cent over the past decade.

Alberta

Female Employees

manufacturing workforce has expanded by 12 per cent since 2012, with one-third more women under the age of 25 working in the sector.

In Saskatchewan, women account for 22 per cent of all manufacturing employees, up from 19 per cent in 2012. The number of women working in the sector has jumped by 29 per cent over the past decade, although the number of females under 25 years of age has remained the same.

The proportion of women employees in Alberta manufacturing has remained steady at 26 per cent of the workforce over the past decade although there are five per cent fewer women working in Alberta manufacturing than in 2012 and

Prairie Manufacturer Magazine • Winter 2022

Manufacturers are also introducing more flexible work schedules, although with 44 per cent of companies in each of the Prairie provinces implementing measures to improve the work-life balance of their employees, western Canada lags slightly behind the 48 per cent average for the country as a whole.

Raising wages to attract new workers is a more difficult proposition for manufacturers. At $23.50 per hour the average entry wage rate for Canada’s manufacturing sector in 2022 is 2.6 per cent lower than for the economy as a whole. While it has increased by 16 per cent over the past five years, it hasn’t kept pace with the average 21 per cent increase offered by all employers across the country.

Prairie manufacturers are lagging even further behind. In Manitoba entry wages average $20.12 an hour, about the same level as five years ago. On the other hand, the average entry wage for all businesses in the province has

increased by eight per cent since 2017 to $21.13, about five per cent higher than in manufacturing. Saskatchewan manufacturers are paying an average $23.34 per hour for job entrants this year – exactly the same as five years ago and only a dollar above the average paid by all employers. Alberta manufacturers are offering an average hourly entry wage of $25.93 this year.

That’s eight per cent more than a decade ago but again only one dollar more than the average for all employers who have increased compensation for new job entrants by more than 14 per cent since 2017.

Automation is not a panacea Automation is always another option.

In the third quarter of 2022, 19 per cent of manufacturers across Canada reported that they intend to adopt automation or digital technologies over the next 12 months to offset the impact of labour shortages. Prairie manufacturers are more aggressive with 29 per cent of companies in Manitoba, 27 per cent in Saskatchewan, and 21 per cent in Alberta looking to automate in order to replace jobs. The problem is that while automation may alleviate labour shortages, technical skills gaps are bound to increase.

The bottom line Bottom line: Prairie manufacturers need to pick up their game if they are going to be able to attract the skilled workers they will need to compete

Labour Market Conditions October 2022 6% 5.3% 5% 4.1%

3.8%

4%

3.8% 3.4%

3.2% 3% 2.0%

2%

1.6%

1% 0%

Canada

Manitoba

Saskatchewan

Unemployment Rate

Job Vacancy Rate

and grow. Employers in other sectors are doing better when it comes to diversifying their workforce, improving working conditions, offering higher wage rates, and attracting younger people into their workforce.

As manufacturing transforms into a more automated and digitally driven business, technical skills will become more important than ever. But, every employer will be competing for workers with digital skills. Early outreach to schools, work integrated learning, and more flexible working arrangements will be critical.

Above all, though, is the need to demonstrate that manufacturing is not the dirty, dangerous, and

Alberta

disappearing smokestack industry that many Canadians think it is. It’s up to manufacturers themselves to show that careers in the sector that are interesting, meaningful, well-paying, and appealing to a new generation of skilled workers looking to make a difference in the world.

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.

www.prairiemanufacturer.ca

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THE LEGAL BRIEF

Whether Electronic Communication Forms a Legally Binding Contract

By Simon Garfinkel

T

echnology has become an inescapable part of our reality. It continues to pervade our lives, influence our behavior, sway our decisions, and modulate our view of the world. It is also inevitably becoming a primary mode of communication for individuals in the fields of business and law.

are taking place on these mediums as well. While the ability to negotiate a contract via text message is certainly convenient, it ultimately raises the question of whether or not agreements entered into via electronic communication are legally binding.

Contractual and other business matters are being discussed via text message, email, or even on social media. Negotiations

This article will explore some recent Canadian case law which has considered these situations.

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Prairie Manufacturer Magazine • Winter 2022

Vancouver Canucks Limited Partnership v Canon Canada Inc, 2015 BCCA 144 In Canucks, the British Columbia Court of Appeal was asked to review a decision from the Supreme Court of British Columbia, which held that through a series of emails, the parties had entered into a multi-year sponsorship agreement.

At trial, the Vancouver Canucks successfully argued that Canon had entered into a five-year sponsorship agreement with them.

Canon had been a long-standing sponsor and office equipment supplier of the Canucks, and in the course of the parties negotiating a renewal, they exchanged numerous emails setting out the terms of the renewal.

The lower court held that the emails created a legally binding contract to renew the sponsorship arrangement despite Canon’s argument that the "Contract Emails" were subject to review by legal counsel, had not been formally signed, and not all of the terms of the contract were settled as the negotiations were ongoing.

The Court of Appeal held that a binding contract arose because the "Contract Emails" exchanged between the parties satisfied the three-part test set out below: 1. A reasonable bystander would conclude the parties intended to be bound by the terms of the "Contract Emails"; 2. That the emails included all essential terms; and 3. Whether the agreement was conditional on subsequent review and approval, including the execution of a formal contract, or whether the execution was just a formality.

With regard to the first of the three elements discussed above (the intention of the parties), the Canucks decision stated, ‘[34] In Smith v. Hughes (1871), L.R. 6 Q.B. 597, in a widely-cited passage at 607, Blackburn J. formulated the test applicable to the question of whether parties have effectively agreed to enter into binding legal relations: If whatever a man's real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other party and that the other party, upon that belief, enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other party's terms.

[35] In G.H.L. Fridman, The Law of Contract in Canada, 5th ed (Toronto: Thomson Canada Limited, 2006), the learned author notes at 15, ‘Constantly reiterated in the judgments is the idea that the test of agreement for legal purposes is whether the

parties have indicated to the outside world, in the form of the objective reasonable bystander, their intention to contract and the terms of such contract. The law is concerned not with the parties' intentions but with their manifested intentions. It is not what an individual party believed or understood was the meaning of what the other party said or did ...; it is whether a reasonable [person] in the situation of that party would have believed and understood that the other party was consenting to the identical terms. [Footnotes omitted.]’

With regard to the second element (whether the essential terms are agreed to), it was suggested in Canucks that what is an essential term will depend upon the context and nature of the agreement between the parties.

There is case law to support the notion that in relatively simple transactions, the essential terms are the price, parties and property. For example, in Imagepath Printing Solutions Inc. v.

Inspired Architecture Inc., 2021 BCPC 22, it was suggested that the essential terms were not agreed to due to the complexity of the transaction. However, in saying this, the Court seems to suggest that price, property and parties are the key elements in a simple transaction. The decision stated: What is more important is that this is not a simple transaction such as, for example, the one-time purchase of clothing or food where an agreement on price, parties and property will suffice. This was a lease lasting 60-months.

In my view, the defendants are entitled to know or have the opportunity to know about the terms that will govern a relationship of that length…

Formal Agreement Additionally, the Canucks decision made reference to an older Supreme Court case to highlight the test to consider for whether a contract is subject to execution of a formal agreement. The Court of Appeal wrote: 76 As the trial judge noted, the traditional test for determining whether a contract is subject to execution of a formal agreement is set out in Von Hatzfeldt and was affirmed by the Supreme Court of Canada in Calvan Consolidated Oil & Gas Co. v. Manning, [1959] S.C.R. 253 (S.C.C.) at 261, a case in which the Court found an agreement in place because the parties had not expressed in writing an intention to defer the legal effect of the documents and had substantially performed the contract: Whether the parties intend to hold themselves bound until the execution of a formal agreement is a question of construction, and I have no doubt in this case. The principle

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is well stated by Parker J. in Hatzfeldt-Wildenburg v.

Alexander in these terms: It appears to be well settled by the authorities that if the documents or letters relied on as constituting a contract contemplate the execution of a further contract between the parties, it is a question of construction whether the execution of the further contract is a condition or term of the bargain, or whether it is a mere expression of the desire of the parties as to the manner in which the transaction already agreed to will, in fact, go through…

In Canucks, The Court of Appeal upheld the trial judge's decision who found that: • Key emails between the parties contained the essential terms of the new sponsorship agreement.

• While it was clear that it was understood by the parties that a formal written agreement would be executed by the parties after review by each party’s legal department, such execution was a mere formality rather than the condition of reaching a final agreement.

• The parties intended to be bound by the agreement reached by way of the emails, without the need for the formal written agreement.

Ruparell v. J.H. Cochrane Investments Inc. et al., 2020 ONSC 7466 Ruparell was an Ontario Superior Court decision which contemplated similar issues. The parties signed a non-binding letter of intent (LOI) respecting the plaintiff's purchase of the defendants' automobile dealership and associated land.

The LOI required definitive, written and executed share purchase agreements (SPAs). The parties drafted SPAs that would complete the expected transaction. Due to Covid-19, the plaintiff considered withdrawing its offer, but he made a new offer with a lower price and financing with a vendor take-back mortgage.

The parties exchanged terms in a series of texts, telephone conversations and in an informal term sheet.

Before the final SPAs could be signed, the defendants received a better offer from another dealer. The plaintiff insisted that the defendants close the transaction, but the defendants agreed to sell to the higher offer.

The plaintiff brought an action seeking specific performance.

The plaintiff successfully established that there was an enforceable agreement between the parties. The Ontario

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Prairie Manufacturer Magazine • Winter 2022

Superior Court explained that through the lens of the objective observer, the parties came to an agreement on the essential terms of a new transaction. The decision explained that for this particular transaction, the essential terms were price, share sale, financing, security, timing of payment, asset valuation and postclosing adjustment, and retaining a general manager to work for the new company.

When the defendants received a superior offer, they sought to improve the price agreed to by the plaintiff. When the plaintiff declined, the defendants were found to have broken the agreement by agreeing to sell to the higher offer.

Ruparell went to the Court of Appeal where the Court of Appeal sided with the Superior Court. The Court of Appeal did not accept the appellants' submission that the trial judge misapprehended the evidence or otherwise made a palpable and overriding error. The Court of Appeal also did not accept the appellants' arguments that the contract was not sufficiently certain or that the parties did not intend to be bound.

In Conclusion In considering whether an agreement has been created via electronic communication, it firstly needs to be considered whether the electronic communication includes all essential terms.

It would also be important to consider whether an agreement was conditional on subsequent review and approval, including the execution of a formal contract, or whether the execution was just a formality.

With regard to the "reasonable bystander" test, it is difficult to determine what exactly a reasonable bystander entails in the circumstances. As technology rapidly changes, it is possible that the expectation of what exactly a "reasonable bystander" is may change as well.

As communication increasingly takes place via electronic means, it will be interesting to see how the Courts adapt, and how they treat electronic communication for contractual purposes.

Simon Garfinkel practices in the Advocacy, Litigation and Dispute Resolution department at Taylor McCaffrey LLP in Winnipeg. He obtained his Juris Doctor from the University of Manitoba – Robson Hall Faculty of Law in 2020. Prior to that, he completed a Bachelor of Arts (with distinction) at the University of Manitoba. Simon’s priority as a lawyer is to obtain the best outcomes for his clients as efficiently and empathetically as possible.

Location matters when tackling global supply chain demands The Asper School of Business Master of Supply Chain Management and Logistics program is an applied and industry-focused program located in Winnipeg, Manitoba, Canada.

T

he past two decades saw a surge in demand for supply chain and logistics professionals. Heightened complexities in purchasing, operations, logistics and transportation— made abundantly clear with the COVID-19 pandemic — highlight the importance of trained leaders in supply chain management and logistics.

The Asper School of Business at the University of Manitoba is prepared to meet this demand through the launch of the Master of Supply Chain Management and Logistics (MSCM) program.

“Launching this program in Manitoba, a continental hub for transportation and logistics, allows our School to bring value to the provincial, Canadian and international labour market through the development and growth of a professional workforce in the supply chain and logistics sector,” says Dr. Bruno Silvestre, Dean of the Asper School of Business, CPA Manitoba Chair in Business Leadership and CN Professor in Supply Chain Management.

The MSCM program within Asper’s Stu Clark Graduate School is only the fourth program of its kind in Canada, but it stands apart based on its location, experiential learning components and connection to the Transport Institute.

Study in a supply chain hub When it comes to supply chain 80,000 and logistics, being caught in the The anticipated middle is a good thing. Located number of jobs in the centre of North America, available in Canada Manitoba is a continental hub in supply chain and for transportation and logistics logistics over the next with over 4,300 businesses and few years 40,000 workers directly employed in the transportation and logistics sector. This workforce covers CentrePort

To learn more about Asper’s Master of Supply Chain Management and Logistics Program, you can register for an upcoming virtual or in-person info session:

Canada, North America’s inland port, over 1,000 for-hire trucking companies, Canada’s number one airport for scheduled freighter flights and rail access to North America’s only arctic seaport at the Port of Churchill in northern Manitoba.

Learning outside the classroom Thanks to the Asper School of Business’s connections with the Manitoba community, Asper offers a four-month graduate co-op placement where students gain hands-on experience in the supply chain management field. If students are already employed, they can propose an applied project within their organization. Getting real-world industry experience allows students to apply their knowledge practically within businesses that have significant supply chain and logistics operations.

Home of the Transport Institute Asper is home to the world-renowned University of Manitoba Transport Institute (UMTI). Over the past 30 years UMTI has trained countless transportation, logistics and supply chain scholars, and has facilitated the transfer of knowledge to professional communities.

Dr. Barry Prentice, UMTI Director, says that Institute plays an important role in defining Canada and the world’s research direction in transportation and logistics. By recruiting worldclass staff, the Institute will in return prepare students to enter the industry with the knowledge and ability to make an immediate impact.

“Our number one job is to turn out really good graduates,” says Prentice. “Students can expose the industry to new, fresh ideas and come into the workforce with ideas that are at the cutting edge of supply chain management.”

Connect with us Stu Clark Graduate School 204-474-9847 asperprofgra@umanitoba.ca

International accreditation - The Asper School of Business is accredited

by ACCSB International, The Association to Advance Collegiate Schools of Business. As an AACSB-accredited school, the Asper School of Business is ranked among the top 5% of business schools in the world.

PHOTO COURTESY: BLUE IMP

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Prairie Manufacturer Magazine • Winter 2022

When Play is Your Work 105-year-old Blue Imp making fun possible in playgrounds across Canada

By Jeff Baker

T

hink back to the playgrounds of your childhood. Good times, right? The woosh of the swings going back and forth, the hot (or freezing) metal of the slide, the metal Buck-OBronc horse you tried to push to the limits of its mechanism, the dizzying heights of the monkey bars, the terror of the merry-go-round, and the squeak of the teeter-totters – that is until your friend or sibling decided to jump off the other end and let you land with a crash!

You were young and having fun with your friends. You probably didn’t think much about the provenance of the play structures or give much consideration to the engineering and manufacturing work behind them.

Well, there’s a company in Medicine Hat, Alberta that started out in 1917 making horseshoes and rims for wagon wheels and has since evolved into Canada’s most experienced manufacturer of playground equipment, outdoor fitness equipment, park furniture, and more.

Meet Blue Imp, a division of family-owned and operated S.F. Scott Manufacturing.

“Even when we interview for other positions, there’s an idea that designing and building playgrounds is a lot of fun, and I have to admit they’re absolutely right!”

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PHOTO COURTESY: BLUE IMP

Horseshoes to playgrounds “My great-grandfather was an innovator at heart, and he didn’t run away from a challenge,” says Stuart Scott, President of Blue Imp. “He started the company as a blacksmith shop producing the usual products, eventually building his own machines to do the work.”

In the 1930s and 40s, S.F. Scott Manufacturing made the shift into fabricating steel farm implements, including inventing and patenting a hugely successful tractor-powered land leveller called the Tumblebug, selling more than 7000 units across Canada, and even in Argentina.

In 1936, company founder Simon F. Scott was asked to build a teeter-totter and swing set, but he hadn’t yet realized this was to be the future of the company.

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The 1950s led to some more work on playground equipment for a local service club, and the company, with Simon’s son, Don, now in the mix, recognized the potential that existed in re-tooling the plant to manufacture play equipment.

Blue Imp, the tradename, was also born at this time.

“It’s actually just a shortened version of Blue Implement,” says Stuart. “There was a blue-coloured impish character in some of the early promotional materials, but the name was just catchy.”

Homegrown play Through the ensuing decades, the Blue Imp name became known across Canada – from sea to sea to sea. New concepts and designs for play equipment kept coming, and the

Prairie Manufacturer Magazine • Winter 2022

company kept pace with the changes washing through the industry – from metal, to wood, and to plastic, to combinations thereof.

“The ideas for play equipment come from all over,” explains Stuart.

“We’ve got a team of seven in the drafting and design department, and they’ll tell you they have probably the best jobs in the world.

“Even when we interview for other positions, there’s an idea that designing and building playgrounds is a lot of fun,” Stuart says, “and I have to admit they’re absolutely right!”

Of course, when the end users of your company’s products tend to be children (and maybe the odd child at heart), safety and durability are going to be primary concerns in the whole process from concept to use.

“We want to ensure everyone using our equipment can enjoy themselves and can do so safely.”

Built for Canada, in Canada “We’re a Canadian company – have been from the start – so we know what the weather can do,” says Stuart. “Our structures are used in all parts of the country, even in the Territories, so they have to withstand both the harsh winters and hot summers. And they have to stand up to whatever the kids will throw at them!”

Whereas some playground equipment manufacturers will incorporate plastic components for their light weight, Blue Imp promotes the use of steel components for the longevity and durability against the dreaded vandalism that visits on structures now and again.

“The steel components we manufacture today can have the same vibrant colours and appearance that some folks associate with plastics,” Stuart explains. “The coatings and treatments that we use on the steel parts can give the same bright colours and give you the durability that playgrounds need.”

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With the quality comes the safety that is critical to any play structure on the market. For playground equipment manufacturers, they can choose to have their facilities and products certified by an independent third-party service provider through the International Play Equipment Manufacturers Association (IPEMA).

Through the IPEMA certification program, Blue Imp currently has 249 products certified to conform to specific criteria for manufacturing, durability, and safety. To maintain the certification, the company must re-test a minimum of 15 per cent of their validated products for the same or latest criteria.

“We want to ensure everyone using our equipment can enjoy themselves and can do so safely,” says Stuart.

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focus on making play accessible to people of all abilities through innovative design of play equipment and structures.

“It’s about making the total play experience – the combination of play elements – as rewarding as possible for every child,” Stuart explains, “and it’s knowing that not every disability is mobility-related, so it goes beyond just the physical access needs.”

For example, installing a stainlesssteel slide instead of plastic will prevent damage (due to static electricity) to cochlear implants worn by hearingimpaired children, or providing components that can provide a rocking or swaying motion can be comforting to children on the autism spectrum.

and online transfers

No pressure Asked about being at the helm of the company that’s been in his family for more than a century, Stuart says he doesn’t feel any pressure, rather he feels the strength of the foundation laid by his great-grandfather, grandfather, and father before him.

“Before my father, Don Jr, passed, he told me not to feel obligated to stay or keep the company going,” explains Stuart. “He said to me ‘you’ll know when it’s time, and that’s alright.’ Instead of obligation, I feel a responsibility to keep going, to see through the next part of the journey.”

“When your work is helping kids to have fun, it’s really not work!”

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Hitting the Waves

on the Prairies

Central Alberta boat builder keeps customers jetting about

By David Quinn

T

he roar of the engine. The wind in your hair. The spray off the water.

It’s all part of the experience for owners of the aluminum boats designed and built by Outlaw Eagle Manufacturing in Red Deer County, Alberta.

You might be thinking, boat manufacturing in central Alberta?! Yep, it’s a real thing!

“We’ve got some fantastic waters here on the eastern slopes of the Canadian Rockies,” says Dale Whiteside, owner of Outlaw Eagle Manufacturing.

“There’s always been boat building here, and a lot of the credit goes back to a handful of individuals who were instrumental in starting the industry.”

From Red Deer to the world In 1987, Outlaw Marine was started

by Alex Millar and Rob Chrunyk. In 1993, Chrunyk left Outlaw to start Eagle Powerboats. In 2002, Whiteside purchased Outlaw Marine, eventually purchasing Eagle in 2004 and merging the companies to create Outlaw Eagle Manufacturing.

In the last 35 years, the company – through the various corporate iterations – has produced and sold nearly 2000 boats to customers primarily in Western

Canada and abroad in the United States and even New Zealand.

“From the start to about the year 2000, jet boats probably accounted for 95 per cent of our output,” explains Whiteside. “Since then, we’ve been building a lot of commercial boats, which tend to be spec’d with outboard engines, so today we’re probably about 75 per cent jet boats.”

Not your father’s boat While there may be other manufacturers in the market delivering boats by – pardon the pun – the boatload, Outlaw Eagle isn’t competing for the basic utility watercraft position. Rather, the company’s boats are decidedly higher-end and built for speed and comfort.

“In earlier days, this really was a price-competitive type of business where we were trying to be super competitive on cost. There was hardly any options or higher-value stuff done on the majority of the boats,” Whiteside says. “In the late 90’s and early 2000’s, we were producing some really nice boats in the $45,000$65,000 range.”

“Now, everything we’re making has a nice plush upholstered interior,

automotive-style paints and finishes, and high-end electronics and entertainment equipment,” says Whiteside. “There’s probably 80 per cent of the boats we’re building that have half to three-quarters of the available options selected by the customer. Not many boats leave here for under $100,000.”

It takes a village Where does the company get the inspiration for the high-end finishes and options? Whiteside says it’s a combination of ideas from their customers and their own staff.

“We get a lot of great ideas from our customers and staff, and if something ends up being really popular, we’ll often move it into our system as a standard feature or an optional item that will ultimately sell boats,” Whiteside says.

Key staff at Outlaw Eagle Manufacturing have more than 200 combined years of experience designing and building high-quality boats, and it’s a passion for the craft that drives the company every day.

Whiteside says, “we aim to make every boat with as much value built in as possible, and we do so with a focus on

“We aim to make every boat with as much value built in as possible, and we do so with a focus on ensuring the quality of every component and every step in the process.”

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Prairie Manufacturer Magazine • Winter 2022

ensuring the quality of every component and every step in the process.”

“We’ve got some automation in the cutting processes, and we continue to increase that functionality,” says Whiteside. “The design and engineering of the boats needs a high degree of precision and accuracy, so also we use a lot of AutoCAD tools to ensure the quality is there from the start.”

Nonetheless, the manufacturing process remains very hands-on and requires the finely honed skills of craftsmen to bring the boats over the finish line.

Pandemic response Like many other manufacturers at the start of the pandemic – especially those operating in what can be seen as ‘luxurytype’ sectors – Outlaw Eagle faced the unknown and had to respond quickly.

“We didn’t know what was going to happen,” Whiteside says. “We had most of our staff on layoff notice, but as it turned out, we never missed a day there was no workforce loss to speak of.

Demand in the recreational boat market definitely increased, and we quickly got to the point of being sold out for six to eight months.”

Of course, the pandemic had effects on the various supply chains involved in the manufacture of watercraft, and some of those effects linger to this day.

“Everyone was facing the challenge, so we weren’t alone,” says Whiteside.

“The issue of supply chain disruptions and labour shortages were the biggest problems, but as time’s gone on, our vendors are telling us they’re getting more and more caught up every month.”

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PHOTO COURTESY: OUTLAW EAGLE

“Demand in the recreational boat market definitely increased, and we quickly got to the point of being sold out for six to eight months.”

Cycling Towards Success:

How an eBike Firm Managed to Grow During the Pandemic

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ith funding like this, we’re able to make competitive pay for people from other provinces to get them to move to Saskatoon and Saskatchewan.”

That’s what Biktrix founder and CEO Roshan Thomas said this summer. His Saskatoon-based eBike firm was

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Prairie Manufacturer Magazine • Winter 2022

one of a number of businesses receiving funding from the Business Scale-Up and Productivity (BSP) program through Prairies Economic Development Canada (PrairiesCan).

Biktrix custom-builds electric bikes in Saskatoon, directly selling them online and showing them to prospective owners in-person at storefronts in Saskatoon

PHOTO COURTESY: BIKTRIX

PHOTO COURTESY: BIKTRIX

and British Columbia. The bikes are designed in Canada and are completely customizable by the buyer. The company exports worldwide and has customers in the USA, Europe, and the Middle East.

Like many other companies, Biktrix struggled during the COVID-19 pandemic. It was hard to meet salary expectations, resulting in a labour shortage that hurt employers across the country. So, Thomas applied for funding from PrairiesCan. Biktrix received a $3.5 million interest-free loan, allowing it to keep growing and bring software and hardware for its eBikes to market.

This funding gave Biktrix the chance to train local, Saskatoonbased workers while also recruiting new hires from across Canada by offering competitive wages. Opening the door for skilled labour in Saskatchewan helps brand the province as an attractive place to work. It even helps attract those with little or no experience in the growing e-commerce sector. For example, Thomas was able to hire an employee who, at the time, was making sandwiches. PrairiesCan funding enabled him to pair this recruit with a senior web developer and learn the skills needed to succeed in his new role.

In June, the Hon. Dan Vandal, Minister for PrairiesCan, announced funding of almost $26 million for 11 innovative businesses in Saskatchewan, including Biktrix. The funds would help them expand, modernize their operations, and create jobs with competitive wages. PrairiesCan delivered these funds through the Business Scale-up and Productivity (BSP) program and the Jobs and Growth Fund (JGF). The funds are expected to result in over $470 million in revenue for the province, including more than $290 million in export sales.

Through BSP, PrairiesCan supports high-growth businesses that are scaling up and producing innovative goods, services,

The bikes are designed in Canada and are completely customizable by the buyer. The company exports worldwide and has customers in the USA, Europe, and the Middle East.

or technologies. It offers interest free repayable funding to incorporated businesses.

The success of Saskatchewan-based firms like Biktrix is precisely why the Government funds them in the first place.

As Minister Vandal said when announcing the funding, “Saskatchewan’s economy is strong, and the businesses supported today are just a few examples of what makes Saskatchewan a great place to invest, do business, and grow.”

Thomas agreed, stating that PrairiesCan funding will help “catapult our growth by hiring more qualified staff and generating more economic impact through local and export sales.”

It’s that kind of partnership between the federal government and local small and medium-sized businesses that turn funding needs into local success stories. Biktrix joins a growing list of partners that have navigated economic challenges in a changing world, and adapted their operations to keep growing.

You can read more about Biktrix and other success stories on PrairiesCan website. The stories are sorted by sector, ranging from manufacturing to tourism and life sciences. You can also follow on Twitter or LinkedIn to get the latest news on funding programs and how they help grow and stabilize local economies.

As Minister Vandal said in June, “To succeed in the new global economy, businesses need to commercialize their cuttingedge products and services to accelerate growth and create new markets. When those promising businesses need that extra help to achieve success, our government will be there to help.”

www.prairiemanufacturer.ca

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PHOTO COURTESY: DELCO WATER

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Prairie Manufacturer Magazine • Winter 2022

Delco Water Bringing new life to communities through water treatment solutions

By Pat Rediger

A

lthough Delco Water may have had its origins in the automation and electrical panel industry, the clients it gained over the years opened the taps to a new line of business. Now for 20 years, Delco has been designing, manufacturing, commissioning, and servicing water and wastewater treatment systems across North America.

Scott Marchinko, Vice President (VP) of Delco Water, said the company operates as a division of Delco Automation, which provides solutions to process control, water treatment and integrated security systems.

“The owners found an opportunity to build these electrical panels and provide the automation that goes along with it,” he said. “What ended up happening is that a lot of the panels they were building were for water treatment plants.”

Initially, most of the equipment was purchased from vendors in the United States, and Delco engineers would set up the panels and various controls on this equipment.

Over time, this group of engineers became quite efficient at understanding the needs of local water treatment systems and the company decided to create a new division and market the expertise.

Today, Delco Water offers a wide range of filtration options, from reverse osmosis and ultrafiltration systems to biological filtration products. Based out of Saskatoon, their facility boasts in-house research and development for custom engineering, ensuring that each customer receives products and services tailored to their individual needs. The company has upwards of 60 staff, and they have completed projects all over the country. They are currently working in Saskatchewan, northern Ontario, New Brunswick, Manitoba, and British Columbia, and are completing their first American project at Kotzebue, Alaska.

“We design and manufacture the equipment, it then gets installed by a general contractor, we come back and commission everything, and then we train the operations staff on how to run their plant,” explained Marchinko. “Then we perform service and maintenance on a contractual basis, depending on the needs and the budget of the community.

So, for a lot of the plants we put in, we’re involved for the life of the plant.”

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Most of their work involves designing and developing water treatment plants for municipalities, although there is increasing demand for wastewater systems. Typically, consulting engineers are contracted by local municipalities to start the process to develop a new water treatment facility. Those engineers contract Delco, provide them with water quality samples, and the company provides recommendations on the type of treatment equipment that would be required for the municipality to meet Canadian Drinking Water Quality Guidelines as well as any other provincial regulations that must be met.”

Delco is just another example of Saskatchewan’s innovative and highly skilled workforce. Marchinko said that the province has been a great place to grow the business, and their success has allowed them to provide services to areas that had previously been underserved. As they continue to perfect their trade, Delco has increased its focus on delivering solutions to First Nations communities.

Delco Water has brought clean drinking water to many Indigenous communities to date, including the Northern Village of Buffalo Narrows and the Montreal Lake Cree Nation. These initiatives are bridging a significant gap in the existing market.

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“We're doing quite a few jobs, not only in northern Saskatchewan but Manitoba and northern Alberta, where the community is only accessible by ice roads or air,” Marchinko said. “There's definitely challenges trying to design a system to use minimal consumables that also has adequate redundancy. We know that if there is a mechanical failure, it could take a bit of time to get the parts or materials required.”

These factors must be considered alongside sustainability. Since there is growing demand to develop water treatment equipment that has a low carbon footprint, Delco is looking at ways to reduce power consumption while providing the same level of service. “If you have to separate or desalinate water, or take the minerals out and soften it, there is an energy penalty with that,” Marchinko said.

He added that First Nations communities have been leaders in acquiring green technologies, so those projects have been an opportunity for company growth as well. “We've been doing biological filtration on First Nations for probably 15 years and that has just started to be adopted in the last three or four years by other municipalities.”

Delco’s cooperation with Indigenous communities does not stop at the installation of infrastructure. Through

Prairie Manufacturer Magazine • Winter 2022

a partnership with File Hills Qu’Appelle Valley Tribal Council, they are conducting a capacity building project that should be mutually beneficial to both the company and many First Nations youth.

“It’s a one-year internship project where they work in various departments within Delco Water and Delco Automation to give them a broad understanding of what we do in the water industry in general,” Marchinko said. The idea is to increase capacity for Indigenous youth to enter the industry, whether that involves looking after their own water treatment plant and facilities or those in other First Nations communities.

The project may also create an interest in these interns towards seeking post-secondary education in this industry. There are numerous career opportunities including welding, pipe fitting, electrical instrumentation, engineering, and computer science.

The future of water treatment looks incredibly advanced, with digitization on the horizon. Options like real-time monitoring and alarm annunciation make practices more predictive every day, which Marchinko said could open the door to things like machine learning and artificial intelligence. As the industry moves forward with leaps and bounds, Delco Water is riding the wave.

PHOTO COURTESY: DELCO WATER

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PHOTO COURTESY: CHIC GEEK

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Prairie Manufacturer Magazine • Winter 2022

Growing

gender diversity in industry

Kylie Woods, Founder and Executive Director of Chic Geek shares insights into why women don’t stay in tech

W

omen are underrepresented in the technology sector – including those parts directly connected to manufacturing – holding less than 25 per cent of computing roles. That figure hasn’t changed in the last 10 years.

In Canada, women represent 47 per cent of the total workforce, but only represent 28 to 31 percent of the Information and Communication Technology workforce. The situation in the Prairies is worse than that.

Attrition spikes for women ages 35-40 as more than half of these mid-career technical women leave the industry for any number of reasons. And almost none of them return to the sector in their previous capacities.

Imagine what the technology sector – and the industries it serves and impacts – could look like if the attrition of these women wasn’t seen as just a fact of doing business. Imagine the difference that could be made by keeping the best and the brightest engaged with, excited about, and employed in the tech sector.

Prairie Manufacturer’s editor, Jeff Baker, spoke with Kylie Woods, Founder and Executive Director of Chic Geek, a Calgarybased non-profit organization that exists to build gender diversity in technology, and seeks to engage, retain, and support mid-career women in the industry through a variety of innovative programs.

This interview took place November 2, 2022, and has been edited for length and clarity.

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PHOTO COURTESY: CHIC GEEK

The lack of diversity, including gender diversity, that we’re seeing is everybody’s problem, so that’s why I say that when we build workplaces that are accommodating for more folks, it creates better spaces for all of us.

Jeff Baker (JB): What is Chic Geek and what is the ‘why’ behind your work?

Kylie Woods (KW): Chic Geek exists to build more gender diversity in technology. Specifically, we look at retaining midcareer women in the tech industry because our research has shown that this is a segment that is dropping out very quickly. If we don't stop them from leaving, we won't have women moving into leadership roles and higher-level positions to then inspire other women coming through and be those role models. So, we see this as kind of the lynchpin challenge to solve, and all our programming is designed to retain those women in tech.

JB: Was there a defining moment in our life that led to the founding of Chic Geek?

KW: The starting point really was this kernel of feelings of loneliness, isolation, of not fitting into tech as I was growing up here in the industry. I thought, I can’t be the only one feeling these things and going through these challenges, but where were the other young women like me. So I started the movement to bring women along.

My personal journey has grown well beyond that initial work community, and Chic Geek now has more than 15,000 women and allies. We’ve become very focused on the mid-career women in the tech industry.

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Prairie Manufacturer Magazine • Winter 2022

I thought, I can’t be the only one feeling these things and going through these challenges, but where were the other young women like me.

JB: That leads nicely into my next question about the ‘leaky funnel’ I read about on your website. It seems that there’s a lot of work happening at the younger ages – for girls beginning or still in school – to get the younger women interested in a career in tech. But there seems to be something missing once they’ve entered the industry.

What was your experience in the industry with this ‘leaky funnel’ situation? What does it actually look like in the industry?

KW: The funnel analogy really captures the gamut of challenges we see in trying to achieve gender parity in technology.

The early stages focus on attraction – how do we get girls and young women interested in and excited about opportunities in technology – but as they evolve and grow into their careers, it

becomes about retention, then later when they reach more senior positions, it really is about recognition. How do we recognize and support the women who have paved the way.

The career pipeline at the intermediate career phases has some rather interesting stats. According to Statistics Canada, 34 per cent of students enrolled in STEM (science, technology, engineering, mathematics) programs are women, but as they go into the workforce, only 23 per cent of STEM jobs are held by women. So even in the transition from post-secondary into the workforce, we’re losing a segment of women for various reasons.

So, as we continue to lose women as they progress in their careers, it becomes very difficult to see them in leadership positions, but that's where a lot of the change that we want to see will actually happen. When we have more women in

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positions of leadership and authority, it creates a positive ripple throughout the rest of the pipeline, but we need to get them there first.

JB: I’ve heard – with some frequency – about the ‘bro culture’ that permeates the technology sector, with bros tending to hire other bros. Is it as big an issue as it seems?

KW: Yes, that is one aspect of it, for sure, and it's not even just bro culture. We hear a lot of things about sexual harassment in the workplace that's still happening, even in 2022. There are a lot of micro-aggressions, poor corporate culture, and poor teams, leadership and management that are all contributing to women dropping out.

The other side of the equation is that women are not as connected, so they they're not networking in the same way as men. So, when it comes to moving or pivoting in their careers, they don't have the same networks on which they can draw to say, ‘Hey, who do you know? Who can you introduce me to?

What opportunities can I create for me?’ and it's holding them back.

JB: I assume this sort of situation is seen in other sectors of industry – that it’s not just in the tech sector.

KW: Unfortunately, yes, there are a lot of sectors that have this challenge, not just technology. In the trades, in manufacturing and construction, and even in law, we see a lot of women dropping out of those professions as well. It is a workforce-wide problem.

JB: When these women are exiting the industry or exiting the sector, where are they going?

KW: Some women are leaving tech careers altogether, so they're not putting any more use to their technical skills and backgrounds. Other are moving into unrelated careers, and some are heading into more of an entrepreneurial path. They might be consulting or starting their own businesses.

JB: Is this a challenge that’s also seen with other equity-seeking groups in the workforce, like the 2SLGBTQIA+ community, new Canadians, BIPOC communities, among others?

KW: It’s a nuanced question, so the answer is both Yes and No. Each equity-deserving group has its own challenges, and we're very well versed with the challenges women face because that's where our research takes us. But we also know for example that folks with disabilities, whether it's mental or physical, face even bigger challenges in the workplace. Some of our sentiment analysis research has shown that they have more negative outlooks on their careers and the companies they work for, so this tells us that we still have a long way to go in accessibility and workplace accessibility to build those inclusive workplaces.

With new Canadians, for example, we understand that the big challenge can often be just getting your foot in the door because a lot of companies are looking for Canadian experience. So, if they don't have that, it's very difficult to get the first job.

There are things companies can do right away. Making it clear in their job postings and descriptions that they encourage all applicants from diverse backgrounds and that experience from other countries will be considered. It starts as simple as that.

JB: What can we be doing in the earlier stages of folks’ careers to support the presence and the retention of women in the industry? And I guess a follow-on to that is, do we need to talk to men just as much as we encourage women?

KW: Yes, it is not just a women's problem. The lack of diversity, including gender diversity, that we're seeing is everybody's problem, so that’s why I say that when we build workplaces that are accommodating for more folks, it creates better spaces for all of us.

For example, if women are asking for more flexibility in their work, because they want to be available for pickups and dropoffs for their kids and workplaces make that flexibility available to all employees – not just women – it enables men to be able to do that as well. So, yes, it is critical to engage men and other gender identities as allies and champions in this work.

JB: Describe for me what the industry – either the tech sector or beyond - could look like if or when we've addressed these challenges. What does the future situation look like?

KW: I think that we will see a very strong talent pool in our province. When we can invite more diversity in, we're going to see more talent arriving and we’ll be leveraging backgrounds from a lot of different places, whether it's different countries or industries. That becomes a real competitive advantage for our whole business sector.

I think that our business performance will also do better.

There's a lot of research that shows more diverse teams have better bottom lines, and from the social side, better workplace cultures; they are places where people feel like they get to show up as their full selves - where they feel like they belong and have a supportive community around them every day.

JB: How can folks get involved with the Chic Geek movement, and how can folks support and engage as allies?

KW: We've got a program called Career Pathing, which is our fresh take on a mentorship program and anyone, any gender identity, is welcome to sign up as a mentor. This is a great way for men to raise their hands as an ally and say ‘I want to support women in tech’ by having these 30-minute conversations with them. It's very tangible way because often that's the challenge: I want to support, but I don't know how, and I don't want to step

When we have more women in positions of leadership and authority, it creates a positive ripple throughout the rest of the pipeline, but we need to get them there first.

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PHOTO COURTESY: CHIC GEEK

on toes. Well, you can donate 30 to 60 minutes of your time every month to have a conversation with a woman in tech to support her career advancement.

From the Career Pathing program, we’re seeing some great results for the women who participate: 60 per cent of participants achieve their career goal, 30 per cent are pivoting into tech from other careers, and 25 per cent of them are advancing their careers through promotion. The research has shown if we can reduce attrition by 25 per cent, we will add 220,000 women back into science, engineering, and technology.

The impact we're seeing in the Career Pathing program is strong, and the program is a great way for companies to get involved. We can roll it out internally for companies and engage their own people as mentors and mentees, and we can share aggregated insights about women in tech from our larger community as well.

JB: What’s being left on the table right now by not properly retaining women in the industry?

KW: Right now, particularly in Alberta, tech talent is hot, and it’s hard to find. It's becoming a battlefield to hire, especially when you're competing against much larger companies in the Unites States that have the big budgets. So, companies are investing very heavily in attraction and recruitment, but where they're falling off a bit is in the retention piece.

What these companies are leaving on the table is that the average cost of turnover for a tech employee is $144,000 USD. Those are just the costs in lost productivity, and for recruiting, on-boarding and training. If companies aren’t investing in retention at the same time they're also recruiting, it’s money down the drain when they start to lose people.

JB: What advice could you offer to industry leaders looking to improve the retention of women in the workforce?

KW: The time is now to lean in. If you’re not doing the work now, you risk falling behind. Investing in equity, diversity, and inclusion (EDI) is a competitive advantage for recruitment, attraction, and retention. I think we're going to see the companies investing in this work significantly pulling ahead of their competitors.

The other thing I would say is that you don't need to have all the answers yourself as a leader who wants to support diversity work. You need to ask good questions and be a strong facilitator, and that will carry you through your EDI journey.

JB: Do you have any words of wisdom you would offer the girls thinking about tech as a career or the younger women in the early days of their careers?

KW: What we often see in young girls is that they go into careers where they get to help people. There’s this community imperative, and a lot of young women are looking for that impact piece.

Technology is one of, if not the biggest enabler for solving global problems for many people, so tech is a space where you can build your career but also have a significant impact and help a lot of lives, which is exciting.

JB: How can companies or potential partners get involved with Chic Geek?

KW: Chic Geek is always looking for partners to engage and support our work around retaining women in technology, so we'd love to have conversations with any companies looking to support that space. A lot of the work we do is virtual, so we’re looking to engage folks right across the Prairies and across Canada.

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From Our Factory to Yours

A letter from our new Executive Director To our friends in the Prairie Manufacturer community, My name is Andrew Kussy, and I'm the new Executive Director here at The Dream Factory - it's nice to meet you! At first glance, you might be wondering why a Manitoba-based charity like The Dream Factory is popping up here in Prairie Manufacturer Magazine.

But you see… at The Dream Factory, we're also in the business of manufacturing. Only, our factory is producing something a little bit different: Dreams come true for children in our community who are battling lifethreatening illnesses.

At our factory, a busy day on the floor might involve creating a magical trip to Disney for 7-year-old Hazel, who has been fighting a DIPG brain tumor; or building an absolutely remarkable basement arcade for Cody, a 7-year-old who bravely battled acute lymphocytic leukemia, but now regularly hosts his friends for homemade slushies and Skee-Ball tournaments.

And while our production outputs might look a little bit different than yours, some of our challenges likely look the same: increasing costs, supply chain challenges, and a growing demand for our services.

In fact, in 2022 The Dream Factory brought a record 43 Dreams to life (that's up from 26 in 2021). Despite a 65% increase in “production” year-over-year, our list of Manitoba kids waiting for a Dream come true continues to grow.

Simply put - we are meeting more and more families from right here in our community in need of the hope, joy, and support that comes along with a Dream come true.

I'm writing you today because we already know that 2023 will be our biggest year yet - and we need your help. I'm asking for your support to help make sure that we can continue to say "Yes!" to each and every child we meet, and to ensure that no child has to fight an incredibly difficult battle without experiencing the magic of a Dream come true.

These are Dreams for kids like Beckett, a 13-year-old boy living with cystic fibrosis. Beckett's mom shared the following with us about his experience: "In early 2020, when my son was already months into a heavy chemotherapeutic cocktail to treat a lung infection caused by his cystic fibrosis, Beckett's Dream gave him a reason to keep fighting. Though we had to reschedule due to nausea, liver failure, and debilitating hives, Beckett finally got to meet with The Dream Factory and express his desires to visit the Great Barrier Reef and all the magical animals of Australia. All told, Beckett endured eight months of horrific IV treatment - and he did so with the comfort of knowing that this amazing Dream would come true."

This summer, that Dream did come true. Beckett and his family went on the adventure of a lifetime and forged memories that they will never, ever forget.

The Dream Factory relies entirely on charitable donations to bring Dreams like these to life, and that support will be more important than ever in 2023.

If you'd like to help make a Dream come true in 2023 for a child in Manitoba like Beckett, who is fighting a life-threatening illness, please email me at andrew@thedreamfactory.ca or call 204-989-4010. It would be our privilege to work with you and your team to bring a Dream to life.

If you'd like to make an immediate difference, please donate at www.thedreamfactory.ca/donate or scan the QR code at the bottom of this page. Your gift will directly enable more Dreams to come true next year.

From our factory to yours, thank you for helping bring Dreams to life in 2023.

Andrew Kussy Executive Director E: andrew@thedreamfactory.ca Ph: 204-989-4010

WHEN IT COMES TO MANUFACTURING - FACTORIES ARE WHERE THE MAGIC HAPPENS. At The Dream Factory, we manufacture a different kind of magic: Dreams come true for Manitoba kids bravely battling life-threatening illnesses.

Beckett loves being un derwater.

When he surfaced du ring his first scuba dive on the Great Barrier Reef, he couldn ’t wait to go back under!

Dream trip. She and her SeaWorld was Hazel’s favourite part of her show and got soaked! sister sat in the splash zone during the orca

Cody and his brother’s favourite past time in the hospital was playing on an air hockey table.

Naturally, we had to include an air hockey table in his Dream basement arcade!

A passionate animal-lover, Beckett couldn’t leave until he had hugged every wallaby, kangaroo, and koala at the petting zoo.

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. Please consider donating to help make more Dreams come true.

Open Innovation in practice NGen Collaboration Days the ‘secret’ to advancing Canadian manufacturing

By Robbie MacLeod

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The age of closely guarded industrial secrets has passed and has been overtaken by a global economy that has begun to embrace the concept of open innovation.

O

pen innovation is a term used to promote an information age mindset toward innovation that runs counter to the secrecy and silo mentality of traditional corporate research labs. The benefits and driving forces behind increased openness have been noted and discussed as far back as the 1960s, especially as it pertains to R&D co-operation.

With open innovation as a core tenant of its business model, NGen curates and co-invests in game-changing projects led by consortia that involve manufacturers, technology providers, academics, and more. At NGen, we are of the mindset that world-leading advanced manufacturing capabilities will not be built by single companies alone but rather through collaborations that leverage subject matter expertise and know-how to develop unique engineering solutions to some of the world’s most pressing challenges.

Recently, NGen announced a funding package to support the development and adoption of Artificial Intelligence and Machine Learning Solutions in the manufacturing sector. You might think that it would be easy to deploy grant funding for issues that have

such transformative potential in the manufacturing sector – but there are major caveats…

FACT: Only 24 per cent of Canadian manufacturers collaborate with other organizations on a regular basis.

Canadians may be friendly as the stereotype implies, but not friendly enough. In research undertaken before the creation of NGen, we found that companies in our manufacturing sector do not work together to achieve common business objectives.

Furthermore, when companies do decide to invest in advanced technologies, Canadians have a dismal track record.

FACT: 45 per cent of manufacturers that invest in advanced technologies in Canada do not achieve their business objectives.

Canadians are great at building start-ups and developing new technologies, but when it comes to growing these innovations at scale in a commercial setting, we have a lot of work to do.

Through Collaboration Days, NGen has been able to invest $230 million in 165 projects involving 372 industry partners and 252 academic and research partners which has been leveraged to a total of $538 million in new R&D investment from industry.

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This big issue is preventing us from realizing our full potential in advanced manufacturing.

Collaboration Day To facilitate collaboration and support the successful development and deployment of advanced technology solutions in manufacturing environments, NGen has organized and hosted annual Collaboration Days since 2019 which have yielded tremendous results to date in terms of building our pipeline of world-leading companies as well as developing new and innovative market-proven solutions.

Prior to each Collaboration Day, NGen deploys its boots on the ground. NGen’s project development team is comprised of employees who have spent time in industry and have a lay of the land of Canada’s manufacturing and technology ecosystem. In advance of each Collaboration Day, the team scours the country for the best-use cases and potential partnerships to engage on projects. By working with companies that have early-stage project concepts suitable for Supercluster funding, NGen is able to curate connections that bring together complementary capabilities from across Canada and, in turn, develop more impactful project plans.

Collaboration Days offer project leaders an opportunity to pitch their ideas to a broad audience with the end goal of identifying partners with complementary capabilities that will help develop successful project bids. Alternatively, these events also offer technology and service providers opportunities to pitch their capabilities that may be needed to develop robust project consortia.

Impacts Since its inception, NGen has hosted Collaboration Day pitches from world-leading companies such as ArcelorMittal Dofasco, Hydrogenics, ATTAbotics, Darwin AI, KUKA, Rockwell Automation, and many more.

As a result of facilitated networking sessions, all participants at Collaboration Days have the opportunity to connect with presenters and build well-rounded, resilient project consortia that are delivering real world results for Canada’s Advanced Manufacturing sector.

In addition to project pitches, NGen is also home to a collaboration portal which allows companies to list their project ideas and capabilities on an open marketplace for project development.

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Through Collaboration Days, NGen has been able to invest $230 million in 165 projects involving 372 industry partners and 252 academic and research partners which has been leveraged to a total of $538 million in new R&D investment from industry.

Connections and collaborations are at the core of our business and the results are beginning to speak for themselves.

Case Study: ArcelorMittal Dofasco Collaborates to Revolutionize Steel Production For decades, steelmakers have looked into a vat of molten steel to determine when it’s ready to cast into slabs. Now steelmaking is going digital.

The ArcelorMittal Dofasco led consortium, including IBM Canada Ltd., Tenova Goodfellow Inc., and i-5O Canada, is creating a smart technology platform to digitally transform ArcelorMittal Dofasco’s secondary ladle metallurgy facility. The project will advance the capabilities and understanding of the digitalization process in a heavy manufacturing environment.

Key findings will be gained in the areas of process execution required to implement intelligence, the standards required to enable the flow of data, as well as the impact on the workforce.

This is especially critical as all global industrial economies are racing towards these goals.

In addition to the key members of the consortium, the project also brings together research and collaboration partners from McMaster University, Mohawk College, University of Toronto, University of Windsor, Western University, the National Research Council, Natural Resources Canada, Haltech Regional Innovation Centre, Mitacs, and Prosensus “Collaboration is key to becoming a global leader in advanced manufacturing technology. NGen’s support encouraged the inclusion of SMEs and Canadian suppliers that would not have been otherwise included. The NGen framework enabled collaboration between many partners to accelerate completion and meet the diverse technical needs of the project,” says Roger Tang-Poy, Vice President of Technology, with ArcelorMittal Dofasco.

For an inside look at NGen’s most recent collaboration day, visit www.NGen.ca to watch a recording of the event, browse our capabilities database and become an NGen member for free.

Robbie MacLeod is Director, Strategic Communications at NGen: Canada’s Advanced Manufacturing Supercluster.

Manitoba Aerospace

honours industry excellence On November 24, 2022, Manitoba Aerospace held its 19th annual Aerospace All-Stars Awards of Excellence to recognize four recipients for their achievements in the aerospace and defence industry.

The event recognizes partners or individuals involved in or with the aerospace and defence industry who have demonstrated excellence in a variety of areas from leadership to business growth. Nominated by their industry peers, the 2022 Award of Excellence recipients are:

Award of Excellence for Innovation and Business Growth

CADORATH AEROSPACE In 2022, Cadorath Aerospace’s innovative business practices and dedication to improvement in repair technologies was recognized by Rolls-Royce. Cadorath collaborated with RollsRoyce to create the solution for an AE2100 engine issue that had grounded numerous aircraft over a six-year period. Also in 2022, Cadorath joined Airbus Helicopters Approved Repair Centre Network as a single part repair facility; a monumental feat as Airbus had not approved a new third-party repair facility for single part repair in over 20 years. Cadorath was also the first company to go through the new MECHA 4.0 qualification system.

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PARTNERED CONTENT

Award of Excellence for Innovation and Technology Development

COLLINS AEROSPACE In 2022, Collins Aerospace Winnipeg finished the development and certification of the first large cargo door in a de Havilland Dash 8-300 and obtained a Transport Canada Supplemental Type Certificate. The design and production of the door was led by Collins Aerospace’s Winnipeg team of engineers and technicians. Launch customer Air Inuit had the first modified aircraft enter service this year and are now able to provide enhanced services to communities in Northern Québec.

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Award of Excellence for Education

PAULINE CLARKE, CHIEF SUPERINTENDENT/CEO WINNIPEG SCHOOL DIVISION Pauline Clarke is a driving force of many educational initiatives, including the 25-year partnership between Winnipeg School Division and Manitoba Aerospace. She’s instrumental in promoting aerospace to local youth and is a champion of both AMMOP and the Aerospace Technologies program for grades 10-12. From week-long STEM activities to a high school Career Day, Pauline opens the doors for more students to explore opportunities in aerospace.

Award of Excellence for Builder

MICHAEL SCOTT, SITE LEADER & CFO STANDARDAERO Over his 33-year career, Mike has exemplified the definition of Builder in our industry. Starting as a summer student at StandardAero, Mike retires as the senior leader for StandardAero’s Winnipeg site, becoming CFO in 2009 and leading the site through tremendous growth and change.

Mike’s management and leadership set the stage for StandardAero’s continued growth and enabled the company’s quick pandemic response and recovery. Mike’s impact locally and beyond will be part of his legacy and will continue to influence the company into the future.

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2021 Recipients

M

anitoba Aerospace also celebrated the recipients of the AllStar Awards of Excellence for 2021 and 2020, who missed out on in-person events due to the COVID-19 pandemic.

“The All-Stars Awards Gala is an ideal forum for recognizing those who make incredible contributions to our sector,” said Rob Dyas, Chair of the Board of Manitoba Aerospace and VP Aviation with Babcock. We’re grateful that Minister Cliff Cullen joined us to bring greetings and for the ongoing support of the Province of Manitoba.

Award of Excellence for Industry/Government Collaboration Babcock Aerial Firefighting team / Manitoba Wildfire Service Program Award of Excellence for Innovation and Technology Development Precision ADM Award of Excellence for Education Jonathan Beddoes, Dean (retired), Price Faculty of Engineering University of Manitoba

Helping students and industry take flight “The dinner is also a major fundraiser for the Manitoba Aerospace Student Endowment Fund. Through the generous support of individuals, companies, and organizations over the years, we’ve raised over $396,000 for the fund which has helped 137 deserving students to date,” Dyas commented.

“We are so proud that the endowment fund lets us assist students to take aerospace or aviation related specialized courses which ensures that the number of highly qualified young people in either aerospace or aviation also grows and serves to help strengthen our industry.”

This year’s student recipients are from Tec-Voc High School, Neeginan College of Applied Technology, Red River College Polytechnic (Stevenson Campus) and the University of Manitoba Price Faculty of Engineering.

Aerospace and defence in Manitoba Manitoba’s state-of-the-art aerospace, aviation, and defence sector is the largest in western Canada and is the third largest aerospace hub in Canada, producing and selling more than $2.9 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.

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

For more information on the Aerospace All-Star Awards and past recipients, visit mbaerospace.ca

2020 Recipients Award of Excellence for Leadership and Education/Training Management Development Program Implementation Team Boeing Winnipeg Award of Excellence for Builder and Education/Training Kathryn Atamanchuk, P.Eng., Engineer in Residence, Price Faculty of Engineering University of Manitoba Award of Excellence for Business Growth and Teamwork StandardAero Heli Transition Team

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Diversity, inclusion, and your Board Cast a wider net to strengthen your organizational leadership

By Linda Wood Edwards

T

ell me you want to do more about diversity and inclusion in your company and I’ll head down a rabbit hole, right after I congratulate you and ask about your motives. I’ll want to know about your organization’s culture, and I can’t do that without wanting to know about the values your board uses to guide decision-making. Culture, values, and diversity are braided together, and we untangle them at our peril. Companies that struggle to introduce diversity and inclusion don’t understand that these three elements should be connected in the first place.

Culture is "the way things are done around here." According to the Chartered Governance Institute, "...the wider company culture either arises from the behaviours and beliefs of the people working in the company or is driven or set by the board culture...most organization culture incorporates both..."

“Values are the core components of a person’s deepest beliefs, the concepts that they hold most dear and that drive decision making, or at least should.” If you’re in leadership, what you do, not what you say, demonstrates most what you care about. In "The Will to Govern Well" Glenn Tecker says, "When leadership establishes a set of core values, it creates energy,

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motivation, and commitment to creating a trusting environment…

Values are the critical principles upon which behaviour, decisionmaking, and trust are built.”

In “Making the Mix Work: Diversity and Inclusion” Aurora Geotina-Garcia notes, “Diversity is about representation or the make-up of an entity…(it) allows the exploration of individual differences in a safe, positive, and nurturing environment…

Inclusion is about how well the contributions, presence, and perspectives of different groups of people are elicited and integrated into an environment…Inclusion is a culture that gives everyone a seat at the table.”

Why does diversity and inclusion matter? Setting aside a moral imperative and reported financial improvement for a moment, businesses are facing labour shortages, and there are largely untapped segments in our population. In 2018, CME reported, in “Untapped Potential,” that 28 per cent of Canadian manufacturing jobs were held by women. Two-thirds of them aspired to management or leadership positions, but 37 per cent saw a

promotion bias favouring men. A further 20 per cent did not believe the company supported their efforts, and 61 per cent believed women were under-represented in management positions.

The CME report stated that 1) Women need to see other women succeed (i.e., visible female role models); and 2) Businesses need to create a more inclusive workspace culture (i.e., by listening to concerns and remedying them). This is as true of women in manufacturing as it is on most boards. And of course, it does not only apply to gender.

Consider age. In her 2020 research, Lisbeth McNabb found “More than two-thirds of job seekers cited diversity as an important factor when deciding where to work, yet half of millennials said their companies are not following through on diversity commitments.” I have experienced the benefit of younger people on boards and in workplaces, and it doesn’t match the typical narrative about this demographic.

Why is adopting diversity and inclusion practices so difficult?

Partly because we must unlearn ingrained racial biases and rethink social and economic justice issues to create a more equitable community. It doesn’t happen overnight, but it can go more quickly if we look for new people in different places.

Simone Weithers of WOC GIVE, a BIPOC-focused nonprofit, said that they began “empowering those closest to the pain, changing structural power dynamics, and adding to the diversity of voices in the sector.” She points out that if you don’t see yourself reflected in a role or an organization, then you won’t picture yourself there.

If an organization in your community encourages involvement of diverse people, it will help the entire community reimagine board leadership, careers, and even philanthropy. We have had too narrow an idea of what board service should entail and who can do it. Diversity and inclusion need to be embedded into every facet of your organization and, yes, it’s a lot of work, not just a “checkbox” or “one course, and we’re good.”

A complete overhaul of the board table isn’t required because there is room for all. What makes boards work is an ability to respect and value different perspectives. Ten points of view

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If an organization in your community encourages involvement of diverse people, it will help the entire community reimagine board leadership, careers, and even philanthropy.

30 per cent women, but not because women aren’t qualified! It’s because board recruitment typically comes from executive ranks (and we know what those look like), meaning the mindset must change about where we find quality people. “To change your mindset, you need to establish a different vision and challenge the beliefs that prevent you from realizing the vision.” Of course, this means new guidelines and protocols, and tweaking “until the new mindset becomes the norm.”

If you typically get directors from the C-Suite, cast a wider net that includes not-for-profits, academia, government, professional associations, leadership programs as well as ethnic, religious, and political communities.

Be prepared for arguments, such as “We prefer to make board appointments by merit.” Having diversity guidelines (or regulations) does not mean that merit and quality are not present! Or this one, “Effective steerage and guidance…requires the board to operate as a collective and

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cohesive unit, not a diverse assembly of individuals.” The implication is ludicrous that diversity undermines good governance, and that (new) individuals are incapable of understanding their fiduciary duty. Or maybe someone wants to see the business case for diversity. Well, show me the business case justifying the status quo.

If you are holding on to the status quo, ask yourself whether traditional board qualifications are still relevant. I’d say no, not if we base board appointments on what title you have instead of what skills you bring to the table. I’d rather see your vision and passion that will help us reach our goals than what it says on your business card.

Another word of advice? Don’t wait for a regulator to force the adoption of diversity and inclusion practices. Promote diversity because it is the right thing to do AND better for your organization, not because of a government mandate.

Diversity and inclusion training can help leaders become more culturally competent, empathetic, and self-aware.

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does not make a board dysfunctional!

Provided all directors are missionfocused and discussions are respectful, ideas will be sharpened and improved.

That’s a win for everyone.

More benefits can be found.

There have long been claims that better financial performance is tied to diverse leadership and that diversity and inclusion efforts improve a corporation’s reputation.

In “Slowly but Surely Boards are Diversifying” of the 395 new independent board directors appointed to S&P 500 boards in 2022, 74 per cent came from outside executive ranks. Of these, 72 per cent came from historically underrepresented groups, including women, underrepresented racial and ethnic groups, and members of LGBTQ+ communities.

Nearly one-fifth are age 50 or younger.”

Because boardroom turnover is low, the transformation is slow with new directors only accounting for 7 per cent overall.

A recent article in Forbes reminded us that corporate boards are approximately

grow

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Boards need to have open discussions about implicit bias to help them understand the context in which they work (including systemic inequities).

“Knowing this can provide opportunities to deepen the organization’s impact, relevance, and advancement.”

What if your organization can’t go all in right now, or what if you’re just one person trying to make a difference? Start by being an ally.

Poornima Luthra says, “When it comes to DEI, there is plenty of fear. Those who are well-represented in any context are fearful of the change and loss of power that real inclusion will bring, fearful of getting uncomfortable, and fearful of saying and doing the wrong thing. I’ve… heard white male CEOs say that they want to support DEI efforts but are afraid of being cancelled. On the other hand, people

from…underrepresented groups are also fearful: fearful of being the lone voice and being perceived as the token, fearful of addressing biases and discrimination, and fearful of the impact on their careers.”

Luthra tells us, “Allyship is a lifelong process of building and nurturing supportive relationships with underrepresented…individuals or groups with the aim of advancing inclusion. It is through this process that we overcome our fears of engaging with DEI. Allyship is about progress, not perfection. Allyship is active, not passive. It requires frequent and consistent behaviors. Allyship is not performative. It’s about lifting others and creating platforms for them so that their voices are heard. Allyship is not about fixing others.”

I see many places a person can begin to adopt diversity and inclusion practices in all types of organizations

and at all levels. I hope you see some as well. Do it because it’s right, do it because your organization will be better, and do it because your community will be better too. Learn something now, improve on it later. Take a step in the right direction.

Linda Wood Edwards, owner of LUE-42 Enterprises, is a Certified Association Executive and a Fellow of the Chartered Governance Institute of Canada (CGIC). She holds a Bachelor of Administration degree, a certificate in human resources management, and the Accredited Director designation.

Linda consults on board governance to organizations across Canada, serving as Corporate Secretary to several. She is CGIC’s Chief Examiner for Corporate Governance and a facilitator in the Directors Education and Accreditation Program.

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

www.prairiemanufacturer.ca

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5

QUESTIONS

about

working with an accountant with Sharron Smith-Hnatowich, CPA-CGA, Partner/Owner at Hnatowich & Associates Chartered Professional Accountants

Are accountants just about tax and tax planning?

Accountants are about so much more than just tax. It’s only one aspect of the profession. In fact, you can be an accountant and not have tax in your practise at all! We’re found in all sorts of environments, including industry, government, not-for-profits, and in public practice (i.e. available for hire by the general public). You’ll even find accountants in teaching positions at educational institutes across the country.

In public practice, accountants have a broad scope of services that they can provide, depending on their specific focus and specialization. The practice can include business counselling and planning, financial strategies, IT needs analysis, developing management controls, purchases and sales of businesses, financial statement preparation including audits, review engagements and compilation of financial information, and even management consulting, to name but a few.

What are some considerations I should consult with my accountant about on an ongoing basis?

If you’re a business owner, you’ll want to be consulting with your accountant before going forward with any major decisions or changes to the business.

If you’re considering getting into business, you should probably contact an accountant before you actually go into business. We can provide insight into whether you should incorporate at the outset – and if you do incorporate, how to set up the structure – and we provide advice on and help with getting financing.

For individuals, we can help them throughout their careers, especially as folks approach retirement. We can help them figure out the best pension options and help them sort out if they’re ready to retire or take the next step.

How can an accountant help me grow my business?

Well, we can’t wave a magic wand, that’s for sure! But we can help with something that’s often a concern for businesses in expansion mode: cash flow. We can help the business with budgeting and forecasting, structuring their cash flow, and we’ll assist them when working with their financial institution to secure financing.

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An accountant can help the business with cash flow spreadsheets to show how things might play out into the future, on at least a cursory basis. We can take the business’s figures, do some forecasting based on recent performance, and we can give the owner or executive team an idea when and how they might need to deploy additional financial tools or options.

Sometimes, the advice we end up giving a business is to slow down or even pause their growth trajectory to catch up or keep up with the money.

How often should we be in touch with our accountants?

It really depends on the client. The work we’re doing with them, how involved they want us to be in the business, and what their level of comfort is will inform the frequency of contact. Some clients, we only see once a year (usually around tax time!). On the other hand, for some clients for whom we do the actual bookkeeping, we’ll be in touch monthly, bi-weekly, or even more frequently.

The saying ‘an ounce of prevention is worth a pound of cure’ applies when it comes to your accountant. Sometimes a simple phone call or email can help save you hours or more of potential trouble down the line.

What are some common mistakes that folks should avoid when working their accountants?

The biggest mistake would be making major business decisions without consulting their accountants. Beyond finding out after the fact, it can often leave us in a position where we’re left to fix things, rather than setting things up for success from the outset.

You really want to avoid putting the proverbial cart before the horse, and your accountant can help you do just that. We can offer you objective professional advice, and we can help you avoid missteps even before you set off.

Another mistake I see is having your spouse or adult child act as company bookkeeper. While your spouse or adult child might be proficient at bookkeeping, a professional accountant will give you the value of a trained professional who is well-versed in business and accounting practices. It can really make the difference for your business’s long-term success.

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