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PAUL DOUGLAS

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THERE ARE TWO SIDES TO EVERY STORY

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THE CEO OF PCL CONSTRUCTION TALKS ABOUT HIS LIFE IN THE INDUSTRY, AND HOW HE’S CARRYING ON FOUNDER ERNEST POOLE’S LEGACY.

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Supporting the visions of entrepreneurs one story at a time. Volume 4 | Number 9

REGULAR COLUMNS

Alberta Economy Should be Federal Election Focused By Josh Bilyk

16 45

Urbanomics Urban Development Discussion: Waiting for the MDC dmonton Chamber of E Commerce

THIS MONTH’S FEATURES

CONTENTS COVER FEATURE

aul Douglas P Builds his Career The CEO of PCL Construction talks about his life in the industry, and how he’s carrying on founder Ernest Poole’s legacy. By Nerissa McNaughton

ON OUR COVER:

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42 53

Ingredients for Health See how companies are innovating ways to keep your employees healthy By Laura Bohnert

Frack-tured There are two sides to every story, unless that story is about fracking. In that case, there are multiple sides. The issue is complicated... or is it? By Nerissa McNaughton

Unsettled Skies Edmonton’s commercial real estate developers are still waiting for the proverbial shoe to drop with regards to sagging oil prices. In the meantime, it’s business as usual. By Ben Freeland

Eastern Promises Airport Development Part V By Ben Freeland

B OMA Newsletter Official newsletter of ‘Building Owners and Managers Association’ of Edmonton

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Volume 4 | Number 9

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ALBERTA ECONOMY SHOULD BE FEDERAL ELECTION FOCUSED // ECONOMIC FACTORS

Alberta Economy Should be Federal Election Focused BY JOSH BILYK

tephen Harper, Thomas Mulcair and Justin Trudeau are well-advised to pay attention to Canada’s energy industry during this campaign. Likewise, Edmontonians would be smart to take a close look at the party platforms – particularly as they pertain to energy and environment – before they mark their ballot. It’s no secret that, as the energy industry goes, so does the Canadian economy. The oil sands directly contribute to the creation of 112,000 jobs across Canada. In 2010, the most recent year for which Statistics Canada data is available, oil sands capital and maintenance spending added $20.6 billion to the Canadian economy – including $6 billion in manufacturing output and 170,000 jobs which resulted in $1 billion in government revenues, not including income taxes. With the decline in energy prices, we’ve seen the industry take its foot off the accelerator. Thousands of jobs have been lost, and the path forward is still uncertain. Policies brought in by the new government are making it tougher for resource developers. The carbon tax on large emitters will be doubled by 2017 and corporate taxes will increase 20 per cent. Over the next few months the government will also review greenhouse gas policy and royalty rates. As a result, investment plans are being scaled back across western Canada with billions in delayed or cancelled projects. The industry needs pipelines heading east, west and south in order to fetch a fair price and achieve its potential. Where do our political leaders stand on the construction of pipelines? The Harper government clearly supports pipeline development and has allowed the National Energy Board to review the various proposals and regulate the process.

NDP leader Thomas Mulcair opposes Enbridge’s proposed Northern Gateway line to Kitimat, B.C. as well as the Keystone XL line to Texas. At one time he claimed to support TransCanada’s Energy East line to Atlantic Canada, but now we’re not so sure. Liberal leader Justin Trudeau is an opponent of Northern Gateway, and has slammed Prime Minister Harper for his failure to see Keystone XL get the presidential go-ahead. On Energy East, he’s tougher to pin down. At a meeting with Alberta Enterprise Group (AEG) in February of 2014, Trudeau emphasized that he understood the importance of resource development to the Canadian economy and indicated his commitment to overcome market access challenges. None of this is to say this election should be specifically about pipelines. Rather, how a candidate views pipeline projects can provide some insight into his disposition toward the energy sector generally. Do they understand the Capital Region’s role in this equation? This summer the Canadian premiers agreed to a “Canadian Energy Strategy.” There’s one important win secured by Alberta and Saskatchewan governments in the agreement. The premiers all signed off on a commitment to “develop and enhance a modern, reliable, environmentally safe, and efficient series of transmission and transportation networks for domestic and export/import sources of energy.” In developing the Canadian Energy Strategy, the provinces have rightfully taken the lead. Now it’s time for our federal leaders to catch up. For the benefit of all Canadians, our leaders must appreciate of the importance of resource development to our economic future. Alberta Enterprise Group is a member-based, non-profit business advocacy organization. AEG members employ more than 150,000 Canadians in all sectors of the economy. Visit www.albertaenterprise.ca to inquire about membership in the AEG movement.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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Northlands Focuses on Local Foods Northlands continues to celebrate and commit to agriculture and local food sustainability with two exciting initiatives: Alberta Open Farm Days and Truck 1879. “Northlands feels strongly about the role agriculture plays in our community and the province of Alberta,” says Tim Reid, president and CEO of Northlands. “We want to share the importance that local food and agriculture plays in our community by having our very own Open Farm Day inclusive of farm tours, demonstrations and workshops for the entire family to enjoy.” In August, guests of Northlands learned where food came from through free and ticketed events. Programs included cheese making, a rural farm bus tour, a tour of Northlands Urban Farm, cider pressing, a honey demonstration and a gourmet eight-course meal created with foods fresh from Alberta farms. Northlands Urban Farm demonstrates how local and sustainable food can be produced in the middle of an urban setting. In partnership with Lactuca Corp., Northlands Urban Farm allows visitors the unique experience of visiting a commercial farm while seeing how a vacant lot can be transitioned into viable agriculture. The Farm also houses an apiary of four beehives. Produce from the Farm is sold at 124 Street Grand Market, to local restaurants and used in the Northlands kitchen. During Alberta Open Farm Days, the new Truck 1879 made an appearance, to the delight of the guests. Launched in July, Northlands’ food truck was named to honour the year Northlands was founded as an agricultural society. A minimum of 75 per cent of the food used on the

truck comes from local, Alberta food suppliers. “This means that Truck 1897 offerings will include ingredients grown or raised in Alberta, processed in Alberta and made by Alberta businesses,” Northlands says proudly in a press statement. “We’re excited to be a part of Edmonton’s growing food truck scene and showcase the phenomenal ingredients our province has to offer,” says chef Parker Regimbald. “We built a menu that’s a great combination of comfort and fusion food and we encourage the community to experience just how good Alberta tastes.” Local suppliers to Truck 1879 include Prairie Harvest Pasta, Sylvan Star Cheese, Pine Haven Meats, Sunworks Farms, Berry Ridge Orchard, Red Hat Produce, Bles-Wold Dairy, Sunbake Pita Bakery, Mojo Jojo Pickles and Preserves, Pinocchio Ice Cream, Wild Game and The Italian Bakery. Thanks to these mouth-watering suppliers, Truck 1879 spent the summer offering delights such as brisket mac and cheese, Korean pulled pork, duck fat garlic fries, smoked chicken shawarma, Northlands bacon bahn mi, short rib burg, donair dogs and Pinocchio ice cream sandwiches. After delighting taste buds at events all summer, Truck 1879 is parked for the fall and winter months, but you can keep up with its upcoming return to the streets by following @Truck1879 on Twitter. Northlands’ commitment to local, sustainable food production in Alberta hit the spot this summer with their Alberta Open Farm Days and the launch of Truck 1879. The organization’s commitment to entertaining, positive, enriching, educational (and tasty) offerings in the city of Edmonton continues to delight locals and tourists alike. ABOVE LEFT: TRUCK 1879 PREPARES TO DELIGHT HUNGRY GUESTS WITH LOCAL FOOD. ABOVE RIGHT: NORTHLANDS PRESIDENT AND CEO, TIM REID, SHOWS THE NEXT GENERATION HOW TO ENJOY LOCAL, SUSTAINABLE FOOD TRUCK FARE. PHOTO SOURCE: NORTHLANDS

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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NAIT Receives Software Donation from geoLOGIC “OUR PROGRAMS ARE HIGHLY INDUSTRY DRIVEN TO PREPARE GRADUATES WITH The Northern Alberta Institute of Technology (NAIT) has received a generous gift-in-kind donation from geoLOGIC. Over the next three years, geoLOGIC’s leading software, geoSCOUT will be accessible to NAIT students in the geological technology and petroleum engineering technology programs. The geoSCOUT program allows students to efficiently retrieve, analyze, display and report on oil well activity and history. Larry Boisvert, an associate chair at NAIT, recalls the days when geophysical logs, maps and well information were a manual undertaking. “It would take weeks,” says Boisvert. “That all changed with technology like geoSCOUT. Acquiring the hands-on experience with software that is used widely in the field today is invaluable to our students, and quite often gives them an advantage when it’s time to look for a job.” It is a tremendous opportunity, as geological and petroleum engineering technologists are in high demand across Alberta. NAIT is a Canadian’s foremost polytechnic institution with programs designed around science, technology, the environment, business, health and trades. One of only two polytechnic institutes in the province, each program focuses on technology-based education, industry relationships, applied research and hands-on learning. NAIT has over 60,000 credit and non-credit students and enjoys an outstanding 98 per cent employer satisfaction rate. NAIT’s hands-on, progressive and technology-based learning systems allows graduates to quickly find employment and excel in the workforce. NAIT has been recognized as one of Alberta’s top employers and provides a high rate of return for those invested in the programs, partnerships and activities of the institution.

RELEVANT SKILL-SETS.” - FAISAL ARAIN “Our programs are highly industry driven to prepare graduates with relevant skill-sets,” says Faisal Arain, associate dean of NAIT’s school of sustainable building and environmental management. “The donation of geoLOGIC software endorses the industry’s trust in our programs and strengthens our capability to meet their needs.” Founded in 1983, geoLOGIC Systems Ltd. emerged as an independent software company developing computerized systems to manage interpretive well data and create more efficient processes within the industry. By 1995, the progressive company shifted focus to providing integrated data and software solutions for exploration and production in western Canada’s oil and gas industry. Soon, geoLOGIC’s data was the preferred choice across the industry and since 2008, the company has been a Microsoft Gold Certified Partner and has achieved Microsoft Competency in Gold Application Development. Lauren Parker, marketing and events lead for geoLOGIC says about the gift-in-kind donation, “geoLOGIC systems is committed to supporting the future generations of the energy sector. We believe supporting post-secondary institutions is crucial to the development and growth of a responsible and successful community.” The students and staff at NAIT are grateful for the donation and the opportunities it provides the institution, students, industry and, ultimately, Alberta.

ABOVE: NAIT ELEVATES STUDENTS AND PRIMES THEM FOR SUCCESS. PHOTO SOURCE: NAIT

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

PODERE PANICO

A Dream Becomes Reality

By Nerissa McNaughton

he desire to restore an ancient home in Tuscany is a feeling experienced by many visitors to this bucolic destination. While most people are content with day dreaming, a local company is making this a reality. The Luxus Group, which is based in Sherwood Park and led by Stephen Petasky, is applying its expertise in luxury recreational real estate by restoring an ancient ruin, and in the process creating a destination for those that understand, want and demand the finest in authentic, luxury, Italian accommodations. Petasky is restoring Podere Paníco, a 16th century farmhouse in Tuscany, and is turning it into a luxury, full-service rental property. So far, he is thrilled with the progress. “I really couldn’t ask for it to go any better,” smiles Petasky. “These old homes look simple, but it’s an incredibly complicated undertaking.” Unlike many rental homes in Tuscany, Podere Paníco has been restored to reflect its regional authenticity while making it a modern, luxurious getaway. Renowned Italian architect Fulvio Di Rosa and his team are the masters behind the restoration project. “People come to Tuscany for genuine Italian experiences, so it was critical that the original design and intention of the home was not lost,” says Di Rosa. “We maintained this by keeping the core of the home almost exactly as we found it – the floor tiles, the brick walls, the wooden beams and the roof – all of these are almost entirely original.”

Unlike many homes in Tuscany, which are often only partially restored, Podere Paníco is unique. This complete restoration takes visitors back to 16th century Italy, while discreet modern incorporations make your stay comfortable. Petasky calls it “a relaxed luxury”. “We designed this home to suit a number of different groups. It works for a multiple family vacation, large family retreats, cycling groups, and more. Also, with our huge kitchen, an authentic Tuscan fireplace and the original forno oven, it works great for culinary travelers,” says Petasky. Podere Paníco appeals to discerning clients seeking a one-of-a-kind experience. Starting at €9,000/ week, guests can relax in luxury among 7,000 square feet of living space that comprise the twostorey home and the restored barn. Six bedrooms and eight bathrooms ensure each guest has plenty of privacy, when desired. Guests can gather for Italian family style meals in the sumptuous dining room or they can take in the legendary scenery in one of the multiple outdoor dining areas. When it’s time to cool off, take a dip in the oversized infinity pool and then relax with a glass of the region’s best wine in the pool house and spa. Let Petasky share his dream with you. To learn more about how and when you can experience authentic Tuscany by staying in Podere Paníco, visit www.poderepanico.com today.

www.poderepanico.com

A Key Factor in Your Company’s Success By Nerissa McNaughton

any people talk about starting their own business. Fewer take the tentative steps they need to make their dream a reality. Even fewer plunge ahead the way Natalie and Gerry Wawzonek did, but their bravery and commitment to filling an industry need is what has made their company, CapitalNOW, a success; and why they have been able to help so many other entrepreneurs achieve their dreams too. “We started in a classic leap of faith,” Gerry explains. “At the time Natalie and I had a toddler and a newborn, but believed there was a demand for an alternative type of business financing. So we sold our home and moved into a rental. We used the equity to start the company.” The motivation was, in part, personal. “As serial entrepreneurs we never had easy access to financing. We saw this as an opportunity. I was making a decent living as a mortgage broker and a good part of my business was finding mortgages for the self-employed. The banks charged them higher interest rates and they had to have more down payment. It was easier to find mortgages for the employees of small businesses than for the owners themselves. We knew that solving this problem would be profitable.” The Wawzoneks were right. Fourteen years on, CapitalNOW is thriving, and so are many of the entrepreneurs they aspired to help. As the situation of financing for entrepreneurs was unique, so was the solution. “We offer a single service, by choice, and we prefer to be experts at this one thing. While our service is simple, it is difficult to do well,” Gerry explains. That service is Factoring. Simply put, Factoring is the selling and purchasing of invoices. Companies sell invoices to CapitalNOW and receive a cash advance of 75 per cent of that invoice’s value. Once the customer pays the invoice, CapitalNOW returns the remaining 25 per cent minus the administration fee. This method solves cash flow and temporary cash crunch problems brought on by common issues such as rapid growth and unexpected expenses. Invoices are often a company’s largest asset; Factoring is leveraging of that asset. “Along with providing cash by purchasing invoices, we look after all aspects of accounts receivable management,” says Natalie. “We verify that the invoice and paperwork is correct and deposit payments directly to our client’s bank account. On the front end we evaluate the credit of the

company paying the invoice, and accept the credit risk. We also prepare accounting reports for our clients. “We are Alberta owned, operated and funded. We support Alberta businesses by financing the quality of their work, not their credit history. We call our service Merit Based Finance®. If you are good at what you do, and your customers have a history of paying their bills, you can get paid for your invoices today.” CapitalNOW is a member of the International Factoring Association (IFA). Gerry says, “There is one core value that keeps coming up with the IFA and its members: business is a relationship, and you should only be working with good, clean, decent, honourable people. We do not do business with people that we would not want to be associated with.” During CapitalNOW’s due diligence process, they occasionally discover dishonest or fraudulent applicants. CapitalNOW does not work with anyone that does not adhere to good, honest, respectful business practices; and the company fully cooperates with its client’s current lenders and banking relationships. “We are fast, approachable and 100 per cent online,” says Natalie proudly of what sets them apart in the industry. “We are business owners, just like our clients, and do not have bank financing. We are 100 per cent backed by Alberta investors.” As entrepreneurs working with other entrepreneurs, the Wawzonek have identified key areas of advice for their existing and prospective clients. • Find a downside advantage. Many products and services thrive in downturns and being able to provide them will act as a hedge against soft economic times. • Know your customer. You have access to inexpensive reports on what companies and individuals are borrowing in Alberta. • It is not how much business you do, it is how much business you get paid for and when. Giving your customer 30 days to pay without interest is the custom, but it is uncommon to receive payment in exactly 30 days. Sixty to 90 days is the reality. You need to price the carrying cost into the deal. • You are more important to your customer than you realize. Customers need good, reliable suppliers and they are willing to pay for them. • Pay someone to do what you are not good at. Whatever you hate (whatever has been on your to-do list the longest)

Call 403.617.2075 to reach us directly • capitalnow.ca

Natalie Wawzonek

Gerry Wawzonek

“As serial entrepreneurs we never had easy access to financing. We saw this as an opportunity. I was making a decent living as a mortgage broker and a good part of my business was finding mortgages for the selfemployed. The banks charged them higher interest rates and they had to have more down payment. It was easier to find mortgages for the employees of small businesses than for the owners themselves. We knew that solving this problem would be profitable.” ~ Gerry Wawzonek is a dream job for someone. There are people that would much rather make cold calls, do bookkeeping, or general administration, than do what you do. • Unless you are already an accounts receivable specialist, have a third party do your accounts receivables. Separating sales and delivery from the finances gets you paid faster, and lets you focus on what you are good at. It’s been many years since Gerry and Natalie sold their home and put everything they believed and had into their dream, but their reasons for doing so have never wavered. Each and every day, they live out their commitment to helping business owners with financing. “Our first client was small and learning the ropes just like us.” Gerry reminisces about those early days. “We grew to-

gether, and after 18 months they had grown 1,000 per cent. We could not raise enough capital to keep up with their needs, so they went off to a larger company for financing. We did not want to lose the business, of course, but we were so proud of them! Now they are second in the province in their industry. We tell our clients that we are proud of them all the time. When is the last time your bank told you that you were doing a good job? We know how hard running a business is because we are business owners too. We are happy for our client’s success, especially when they graduate to another source of financing, such as a bank, because we feel that we have been a part of their success. We are a tool for growth.” To learn more about CapitalNOW and how Factoring can help your business grow, visit www.capitalnow.ca.

Call 403.617.2075 to reach us directly • capitalnow.ca

WAITING FOR THE MDC // URBANOMICS

U R B A N O M I C S | U R B A N D E V E LO P M E N T D I S C U S S I O N

Waiting for the MDC Lopsided competition or a partner? BY JOHN HARDY

o fanfare. No staged ceremony. No official speeches. No lineup of smiling dignitaries, posing with hard hats and hoisting ceremonial shovels with ceremonial soil – but a significant change is about to happen, impacting the growth and development of Edmonton. After more than a year of research, recommendations, proposals, discussions, drafts and reviews, the approved report and proposal for a City of Edmonton Municipal Development Corporation (MDC) is being formally presented to Council this month. The MDC is proposed to be an arms-length development company that manages and develops Edmonton land. Advocates suggest that it is overdue and use MDC concepts in other major Canadian cities as examples. Edmonton area developers and home builders are cautious with various concerns, mostly about the role and mandate of an Edmonton MDC. Although local builders and developers are in favour of an MDC dealing in Edmonton land for “city building” (facilities, transit barns, post offices, social housing and other city projects) active members of the Urban Development InstituteEdmonton Region (UDI-ER) are leery about an Edmonton

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

EDMONTON AREA DEVELOPERS AND HOME BUILDERS ARE CAUTIOUS WITH VARIOUS CONCERNS, MOSTLY ABOUT THE ROLE AND MANDATE OF AN EDMONTON MDC. MDC that turns out to be an unfair competitor, not a partner, with the private sector development of Edmonton. “From our perspective, key municipal goals should be city building and social housing,” says Laurie Scott, vice president of Cameron Communities and chair of UDI-ER. “Private sector development should be left in the private sector. That allows a diverse and wide array of private sector investment in city building projects.” Local builders and developers have voiced hesitation and concern during the MDC discussion stages about the possibility of being in lopsided and unfair competition with Edmonton’s MDC.

WAITING FOR THE MDC // URBANOMICS

The Calgary Municipal Land Corporation (CMLC) is successful in the development of Calgary’s East Village community and is mostly a land developer, with the exception of building out certain municipal buildings.

“So far, we really don’t know any proposed MDC specifics. Some possibilities include a for-profit initiative, but would also include a social housing component and a city-building component. All of these options have different potential benefits and side effects on the community and on the private sector,” Scott points out. “If the MDC functions as a for-profit initiative, it would have a leg up on the private sector and stifle private sector investment. Would the City be able to perform in as efficient manner as the private sector does? Or would it be watered down by conflicting agendas or one-off priorities of individuals on Council? And could the MDC react to the market as the private sector does? After all, it is difficult to be the regulator and simultaneously operate at arm’s length.”

The Surrey City Development Corporation (SCDC) in B.C. is an innovative example of MDC real estate activities. It creates revenue for the City through land sales and real estate development activities while acting as a facilitator of development in key Surrey areas. The SCDC interacts with the private sector through land sales and development partnerships and also competes for acquisitions of land and income producing assets. Initial industry pushback was diffused with SCDC’s partnerships with Surrey’s private sector. Build Toronto (BT) leverages surplus and underutilized real estate through land sales and development. BT often sells off the land after doing initial value-add work, and doesn’t stay involved through development. BT is mandated to generate profits but also achieve City-building strategy. Edmonton builders and developers are hesitant about the reality that an MDC would ultimately be formed and function with public money and deal in the contentious topic of available land.

Ken Cantor, vice president, commercial development, northern Alberta with QUALICO® Commercial and a member of UDI-ER agrees. “In principle, the City has no business competing against the private sector when it comes to real estate development, any more than the City should be competing with grocers selling food or competing with retailers selling clothes or furniture.”

“If the MDC is going to be tasked with rationalizing the City’s existing land portfolio, what is the City’s intent for the MDC once they have worked through that inventory?” Cantor wonders. “If the MDC competes with the private sector for future development sites, they will be encroaching on market sectors already serviced by the private sector and driving up end costs for the consumers.”

Since the Edmonton MDC proposal will only be presented to Council this month, Cantor acknowledges that area builders and developers have no advance details about possible mandates, objectives, governance, implementation and transparency. He adds that it is unlikely for an Edmonton MDC not to impact the business plans and visions of Edmonton developers.

A key make-it-or-break-it aspect of the business of home building and development is the critical guesswork of planning for consumer trends. “From a developer’s perspective, forecasting consumer trends is an important but routine part of our core business. The difference between a private developer and a municipality is that when City forecasts are wrong, the public purse pays for the mistake,” Cantor cautions.

As Scott points out, and as the Edmonton MDC proposal references, at least three major Canadian municipalities that have already implemented their local versions of a Municipal Development Plan.

This will prove to be a pivotal month for the future development of Edmonton. Will there or won’t there be an Edmonton MDC? Area builders and developers – and the community – are anxiously waiting for details.

ABOVE LEFT: LAURIE SCOTT, VICE PRESIDENT, CAMERON COMMUNITIES AND CHAIR OF UDI-ER. ABOVE RIGHT: KEN CANTOR, VICE PRESIDENT, COMMERCIAL DEVELOPMENT, NORTHERN ALBERTA, QUALICO® COMMERCIAL

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

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INGREDIENTS FOR HEALTH // CORPORATE HEALTH AND WELLNESS

Ingredients

FOR HEALTH SEE HOW COMPANIES ARE INNOVATING WAYS TO KEEP YOUR EMPLOYEES HEALTHY

BY LAURA BOHNERT

any businesses are taking part in a new strategy when it comes to boosting their likelihood of success—but it may not be what you would expect. The latest program for boosting workplace productivity may have you trading in your suit and tie for a pair of sweat pants and a yoga mat. Investing in health and wellness within your business can go a long way towards increasing your business’ bottom line. Businesses depend on their employees for success—it’s

the employees that set the pace for the entire business’ productivity and efficiency. Taking steps to ensure the health, wellbeing and happiness of your employees can provide you with a number of benefits. From decreasing sick days to enhancing workplace morale and even influencing employee retention, many businesses are discovering the benefits of investing in corporate health and wellness. Investing in corporate health and wellness doesn’t need to be costly. Even taking small steps, like replacing candy bars with

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

INGREDIENTS FOR HEALTH // CORPORATE HEALTH AND WELLNESS

MANY CORPORATE HEALTH AND WELLNESS PROGRAMS, LIKE THE ONE OFFERED THROUGH BODY BY BENNETT, CAN BE MODIFIED TO FIT YOUR BUSINESS’S SCHEDULE AS WELL AS ITS NEEDS. healthy snack substitutes in the office vending machine can make a difference. Some businesses go the educational route, providing employees with access to health and wellness information sessions, and some get hands on, setting fitness goals and participating in corporate health and wellness programs through local fitness centres. Body By Bennett, a private training studio operating out of both downtown and west Edmonton, has been providing companies with access to personal training and nutrition programs for nearly two decades. “We offer our corporate wellness program to companies, but our programs are built around the needs of the persons and the population within the corporation,” explains David Low, managing partner of Body By Bennett. “Some companies tend towards a sedentary population, while other companies may be more active and younger, so we make sure we understand the population we are working with, and learn what we can about the types of people we are working with. Based on that, we deliver programs that are based on the philosophy of making people more functional.” “By participating in health and wellness, you will get stronger, lose weight, and gain endurance,” Low continues, “but an important part of wellness also includes creating balance for the individual. We look at how we can help individuals improve their functional capacities, either through their work perspective, daily living perspective, or their recreational perspective. We do this by challenging people in multiple ways, by focusing on working the body, challenging the perspective, and changing the outlook of the individuals.” Challenging people in these three areas can help them lose weight and increase fitness levels, but it can also help them to improve in other areas of their lives—in areas that can have a strong impact on workplace performance. Many corporate health and wellness programs, like the one offered through Body By Bennett, can be modified to fit your business’s schedule as well as its needs.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

“Our corporate wellness program tends to be focused on mid-sized companies,” Low explains, “but the way we run our program is really based on what people are looking for. In some cases, we go to the place of work to deliver programming there because the company has access to a facility, and in other cases the individuals come to us. We look at what is practical for the company, and we also provide online support for those who cannot come in, or to create more guidance and support for individuals. One of the challenges of health and wellness is maintaining accountability. By having an online platform, we are able to continue to create accountability.” “At Body By Bennett,” Low adds, “we also partner with Revive to deliver our clients the nutritional components of their health and wellness program.” Revive Wellness Inc. is an Edmonton-run team of dieticians that also offers a corporate wellness program to promote the health and wellness of employees through their nutritional education program. “We partner with Revive Wellness so we can offer our clients nutritional expertise at the same level of our physical expertise,” Low explains. “Corporate health and wellness is an important investment for companies to make, because it adds to the overall quality of life. It makes people happier at work and at home, and it also creates stability.”

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INGREDIENTS FOR HEALTH // CORPORATE HEALTH AND WELLNESS

INVESTING IN FITNESS AND NUTRITION IS AN EFFECTIVE WAY TO PROMOTE CORPORATE HEALTH AND WELLNESS—BUT IT ISN’T THE ONLY WAY BUSINESSES ARE INVESTING IN THE WELLBEING OF THEIR EMPLOYEES. MANY ARE ALSO FOCUSING ON THE PRODUCTS THEY ARE USING AND THE EFFECTS THESE MIGHT BE HAVING ON THE HEALTH OF THOSE USING THEM. Of course, there are practical benefits for business processes, too. “Investing in corporate wellness definitely helps to prevent sick days,” Low emphasizes, “but it has also been shown to increase the retention of employees, lessening employee turnover and making the workplace a more stable environment, too.” Investing in fitness and nutrition is an effective way to promote corporate health and wellness—but it isn’t the only way businesses are investing in the wellbeing of their employees. Many are also focusing on the products they are using and the effects these might be having on the health of those using them. Ms. De Sousa, CEO of Greener Cleaners emphasizes, switching from chemical to natural and organic cleaners can make a big difference for employees and clients alike. “Our products,” De Sousa explains, “go beyond non-toxic. We use basic organic products, like vinegar and some soaps, to ensure that none of our employees are exposed to harmful chemicals.” “There has been a lot of controversy over non-toxic labels on cleaning supplies,” De Sousa explains. “Some products say they are green, but they are still using chemicals—a lot of which shouldn’t be used at all. These chemicals are harsh on the respiratory system and on the lymph system, and toxins tend to accumulate once they are in your body. A lot of them can even cause different forms of cancer.” Greener Cleaners has been providing services in the Edmonton area since 2006, and their main focus is on providing organic, non-toxic, chemical-free cleaning services. “The benefit of using organic cleaners is that it doesn’t contribute to illness—either to employees, clients, children, or even pets,” states De Sousa. “Some chemicals are known to be really harsh and can affect pets. Further, children with Autism, ADHD, sensitivities and auto immune disorders can

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

also react negatively to some cleaners, and chemicals can really exasperate the situation. “At Greener Cleaners, we guarantee that we will not use any chemicals when cleaning our clients’ residences—ever,” De Sousa stresses. “We guarantee our staff, our clients, and our clients’ children and pets cannot get ill from the products we use.” This dedication to natural cleaners has created a lot of benefits for the Greener Cleaners. “It helps against sick days,” De Sousa confirms, “although the flu still happens. But in terms of being exposed to harsh chemicals, switching to organic cleaners does more than cut down on sick days; it promotes overall health and wellness in the workplace, too.” For an added benefit, organic cleaners are a lot more cost effective than chemical cleaners. As De Sousa explains, “Companies market different cleaners for different tasks. It’s clever for selling more products, but it is just a marketing ploy. With organic cleaners, you can safely use one cleaner for whatever task you need to put it to.” De Sousa concludes, “There are a lot of reasons to invest in corporate health and wellness, including the bottom line and profits; however, the health and wellbeing of your employees can make or break that bottom line. Taking care of your employees helps stabilise your company culture, and it also makes a difference in how your employees represent your company.” Every company, no matter how large, small, diverse or specialized, begins and ends with its employees. Investing in the success of your business starts with an investment in the corporate health and wellness of your employees, whether you choose to support that health and wellness through corporate fitness programs, nutrition programs, an investment in more health-conscious products, or with all of the above.

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

PAUL DOUGLAS BUILDS HIS CAREER // COVER

PAUL DOUGLAS

Builds his Car THE CEO OF PCL CONSTRUCTION TALKS ABOUT HIS LIFE IN THE INDUSTRY, AND HOW HE’S CARRYING ON FOUNDER ERNEST POOLE’S LEGACY.

BY NERISSA MCNAUGHTON

n 1906, Ernest Poole started a construction company in Saskatchewan called Poole Construction Ltd. (later to become PCL). In 1922, the branch office in Edmonton opened. In 1932 Poole moved the headquarters to Edmonton – in the middle of the Depression. Undaunted, Poole forged ahead with a contract to reconstruct TransCanada highway, which was the old CalgaryBanff highway at the time. In 1977 the shareholder model switched to employee owned, and in 1979 the company adopted the now familiar name, PCL Construction. Every step of the way PCL has attracted impressive contracts and outstanding leaders. Today, president and CEO Paul Douglas guides the company, and he is just as interesting and impressive as PCL itself. “I started in the ’80s in Edmonton as construction manager,” Douglas explains his career at PCL. “That was for a year and a half. Then I transferred to Calgary as construction manager where I spent another year and a half. In Calgary, I moved into business development and was promoted to corporate business development manager – and that brought me back to head office in Edmonton. I was here for six months and then was made the district manager of the Saskatchewan branch.”

RIGHT: PAUL DOUGLAS. PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

PAUL DOUGLAS BUILDS HIS CAREER // COVER

eer

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

PAUL DOUGLAS BUILDS HIS CAREER // COVER

Douglas pauses to chuckle as he relives his frequent moves within the company. He jokes that he “apparently can’t hold onto a job for very long.” In true fashion, he was soon asked to set up a branch in Ottawa, so off he went for three years. After another promotion – and a move to Toronto – he returned to Edmonton as president and COO of Canadian operations. That 1997 move was the last one. He remained in Edmonton and became the company’s CEO in 2009. With all his moves within the company, you may think Douglas had his eye on a career with PCL from a very young age, but his success with the company came down to hard work, skill and a little bit of serendipity. “I was one of those kids that had no idea what they want to do while in school,” he confesses with a smile, “But I was strong in math and science so I went into engineering.” He went on to work in construction and loved it, so he switched to civil engineering so he could make the construction industry his career. “Things just went really well for me. I worked hard and found I moved up quickly in the organizations I worked for. I barely had time to think about it too much because things just kept moving along – but it was beyond my wildest dreams to think that one day I’d be

CEO of the largest construction company in Canada! I still pinch myself when I think about that.” Douglas had a wonderful time working across Canada, but like his early predecessor, he loves how Edmonton is the perfect headquarters for the company. PCL headquarters is a campus made up of five sprawling concrete buildings and beautifully landscaped outdoor common areas. From the statues on the grounds outside to the stunning glass staircase inside, each impressive building shows what PCL can do. The buildings are the company’s resume, and like the people working inside of them, they do not disappoint. “He had great vision, our founder,” Douglas says. “He built a great foundation for us to continue to build on. It was Poole that moved PCL to Edmonton because he found Alberta to be the best place to set up headquarters. Every now and then we take a look to see whether it makes any sense to have our head office in a different location, but we keep reaffirming that Edmonton is the place. Here we have tremendous resources. The city attracts people that want to raise a family and the cost of living is competitive. We support the rest of the PCL world from right here.” He’s doing a job he loves in a city he adores, but that doesn’t mean he doesn’t face challenges – and for Douglas, those ABOVE: RENDERING OF NORQUEST SINGHMAR CENTRE FOR LEARNING. PHOTO SOURCE: PCL CONSTRUCTION

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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PAUL DOUGLAS BUILDS HIS CAREER // COVER

HE’S DOING A JOB HE LOVES IN A CITY HE ADORES, BUT THAT DOESN’T MEAN HE DOESN’T FACE challenges have less to do with the company and more to do with PCL’s greatest resources: its people. He waves away the day to day challenges that come with clients, corporations and multiple offices saying, “It’s a matter of applying logic. If you work hard and do the right things, things tend to work out well.” But when you are invested in and care about the employees… that can keep you up at night.

CHALLENGES – AND FOR DOUGLAS, THOSE CHALLENGES HAVE LESS TO DO WITH THE COMPANY AND MORE TO DO WITH PCL’S GREATEST RESOURCES: ITS PEOPLE.

“It’s the people side of the business where there isn’t a management book,” he sighs. “It’s competent people making choices you wish they hadn’t made, and you have to figure out how to deal with that appropriately. You need a balance of compassion with rules, regulations and judgement. For CEOs, it’s one of the biggest challenges you end up with – trying to make sure you are doing the right thing when there isn’t a book to tell you right from wrong.” However, he’s happy to report that as the CEO, seeing PCL employees succeed is his greatest reward. “I love seeing our employees meet their potential and sometimes achieve greater results than anticipated. I enjoy watching teams achieve extraordinarily outcomes. Thankfully, at PCL we are very blessed with this.” Employee success is due in great part to leadership, and Douglas has some thoughts on what makes a great leader and a role model in the community. “One thing about leadership that I’m convinced of is that there are very few people that are born leaders. You learn the skills, apply them and become a great leader. When you do that, you really do recognize that is a lifelong journey because there is always something to learn and new tools to put into your leadership toolbox. “We all live and work and play in a community and a strong, vibrant community is necessary for us and our families. I think communities, like businesses, require great leaders and the appropriate resources to be strong. Business leaders and businesses can help provide both to make their communities stronger.” Douglas has been recognized numerous times for work performed in his career and community. He sits on the Edmonton Airport’s Business Advisory Committee, the World President’s Organization, and the Canadian Council of

Chief Executives. He has received the Canadian Construction Association’s General Contractor Award of Excellence— Robert Saunders Memorial Award, was inaugurated into the Canadian Design-Build Institute’s College of Fellows, is a proud owner of an Alberta Congress Board’s Distinguished Workplace Leader Award and received one of only 38 Queen Elizabeth II Diamond Jubilee medals. Last year Douglas was given the CCA’s Community Leader Award and this year he was appointed to the board of directors of the Canadian Council of Chief Executives. “Every award or recognition that you get – and we all love to be recognized – makes you feel like you’ve accomplished something and it’s even more so when others recognize it,” says Douglas with quiet pride. “You don’t go out to win those awards. You keep doing enough things right and work hard and people recognize and notice you; and just like a little kid, you feel good when that happens. Considering the

ABOVE: PAUL DOUGLAS. PHOTO SOURCE: EPIC PHOTOGRAPHY INC.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

PAUL DOUGLAS BUILDS HIS CAREER // COVER

rest of the world. That is significant! Our team down there is doing such an exceptional job. With other companies months or years behind schedule, we show that it doesn’t have to be that way.”

number of awards that come from the Queen, again that is something that exceeds any of the wildest dreams I had growing up. It [the Diamond Jubilee medal] was humbling and a very great honour.” What’s next for the man that has already achieved so much? “It’s time to get the next generation ready to take over and run this company after me and continue the neverending journey of achieving our vision of aspiring to be the most respected construction company, renowned for excellence, leadership and unsurpassed value. PCL wants to be a leader in every market we are involved in, and we are working hard to get there.” He pauses to give his warm, friendly and slightly mischievous grin. “Once you are there you have to work even harder to stay there!” Whether it’s in the boardroom or in the community, working hard has always been a joy for Douglas. Even today, despite his many years in the industry and seeing all the changes that come with building technology, he retains a fascination about the nature and philosophy of construction. “This business is so great and so tangible. We start with a piece of dirt and wind up with an amazing facility, whether it’s a cancer facility which will one day bring that disease to an end, reducing the carbon footprint by changing over coal fire plants, or a sports facility that will showcase the best athletes in the world. All of these are so inspiriting. You can still feel so good about them years later. These buildings become landmarks that will stand for years. “The most recent project impacting me and our company is the whole downtown redevelopment around the arena. The parking, hotels, arena, office towers – it’s going to change the way Edmonton looks, functions and is perceived by the

He continues to have high praise for Edmonton. “During the busier times in Edmonton we all find it a challenge to attract enough tradespeople to northern Alberta, especially since we were competing with the rest of the world. Quite often, in a Canadian and Albertan way, we tend to be way more humble than many of the other areas of the world that are attracting quality people. Sometimes we run ourselves down, saying ‘Edmonton is the coldest, darkest place’. Too often we talk about the weather and negative things rather than the great things that go on in this city. PCL wants to get people thinking and speaking much more positivity about this great city of ours and with that, hopefully spread the message around the world that if you’re looking for a place to get a good job, raise a family and have a great quality of life, you should be seriously considering Edmonton.” To this end PCL, along with a number of leading companies across the city, are strong supporters of the Celebrate Edmonton initiative. PCL also supports the United Way in every district of their operations, along with the Canadian Red Cross and Habitat for Humanity. Personally, Douglas and his wife Cathy also support the United Way along with a University of Calgary program that moves specialized physicians, neurologists and cardiologists to centres of excellence around the world, then brings them back to Alberta to implement and teach what they have learned. Douglas also enjoys supporting initiatives in Africa that focus on infrastructure and the support of women through education. So far, every chapter in Douglas’ life has been full of enriching experiences, exciting destinations, leading and learning, achieving and giving back. The pleasure he takes in his role as CEO and as a community leader shows in the contentment and joy on his face. As he gears up to lead PCL into the next generation of leadership and move on to his next phase, he knows his future holds the same promise and opportunity it did when he was a young man that didn’t know what he wanted to do with his life. He’ll work hard at whatever he puts his mind, hand and heart to – and he’ll continue to build success. ABOVE: THE ICE DISTRICT UNDER CONSTRUCTION. PHOTO SOURCE: PCL CONSTRUCTION

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

FRACK-TURED // OIL & GAS

FRACK-TURED THERE ARE TWO SIDES TO EVERY STORY, UNLESS THAT STORY IS ABOUT FRACKING. IN THAT CASE, THERE ARE MULTIPLE SIDES. THE ISSUE IS COMPLICATED…..OR IS IT?

BY NERISSA MCNAUGHTON

racking is an issue that has Albertans shaken up. From earthquake allegations to health claims, say “fracking” in a crowded room and everybody has an opinion. The best opinions are informed ones, so let’s start with what fracking is, and what it’s not. Hydraulic fracturing, or fracking, is a production stimulation method. Fluid is pumped down a well at a high enough

pressure to crack the rock. Sand that is contained in the fluid stays in the cracks, the pumping stops relieving the pressure, as the fracture closes the sand props open the rock and the fluid is allowed to flow back up the wellbore. The propped opened rock creates a pathway for natural gas and oil to flow to the well bore. The process does not require chemical reactions or downhole explosions. Only water is used to crack the rocks.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

FRACK-TURED // OIL & GAS

That’s not to say that chemicals are not involved. For example, scale inhibitors prevent minerals from scaling the well’s tubing. The scale inhibitors used are the same ones many people use in their hot tub, and due to where and how it is deployed, it cannot seep into the soil.

between the stimulation points and the fresh water zone. There have not been any known cases of contamination,” says David Browne, VP communication and marketing, Trican. “The only couple of known cases of contamination were not due to the hydraulic fracturing, but poor well bore construction.”

“When we’re doing the hydraulic fracturing, the crack in the rock only extends a small distance vertically, relative to the horizontal well bore. There are thousands of metres of rock

But fracking is a new method developed to make the energy industry even more money – right? Wrong. Fracking has been practiced as a well stimulation method for over

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SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

FRACK-TURED // OIL & GAS

BUT FRACKING IS A NEW METHOD DEVELOPED TO MAKE THE ENERGY INDUSTRY EVEN MORE MONEY – RIGHT? WRONG. FRACKING HAS BEEN PRACTICED AS A WELL STIMULATION METHOD FOR OVER 60 YEARS AND WITHOUT IT, PLENTY OF GAS AND OIL WOULD NOT MAKE IT TO THE WELL. 60 years and without it, plenty of gas and oil would not make it to the well. Without fracking, there would be even more wells drilled as companies try to access the precious resources. Fracking allows increased amounts of oil and gas to be produced from existing wells, reducing the need for more wells and more drilling – a reduction that is safer for the environment. “The basic principle of fracturing has not changed at all,” Browne points out of its long and recently turbulent history. “What’s happening downhole in the rock has not changed significantly for the last 30 years. It’s still water with a few additives. The additives have changed a little bit, but for the better.” For example, diesel used to be an additive. Even though it was not causing environmental damage, it was replaced with a less toxic alternative that performed the same function. Is there a correlation between fracking and earthquakes? “Yes there is,” confirms Browne. “What we are doing causes micro seismic activity. By the truest definition, we are separating rock, so that could be, by certain definitions, seismic activity or an earthquake. We call it micro seismic activity because it’s negative on the Richter scale; but our [method] has occasionally triggered a slip in a fault that is deeper than the well. That has caused seismic activity that is about three on the Richter scale.

“The regulations insist that we have to be aware of the natural faults in the area and do a study. If you do get seismic activity, you have to stop and do more studying. There have not been any earthquakes that caused damage from hydraulic fracturing that we know of.” That being said, “There have been some earthquakes caused by wastewater injection. The wastewater comes from the wells in areas that produce a lot of water. The general public doesn’t realize that every well produces ancient seawater along with the oil and gas. In some cases it is reinjected back into deep formations and that is where you get some seismic activity, but there are only a few wells with this issue. It’s being studied, regulated and improved upon, and so far, it’s not a problem in Canada.” What about the people who claim fracking made their water dirty and flammable? Browne explains, “The layers of coal in Alberta are quite shallow. Quite a few years ago the industry was stimulating those layers with high pressured nitrogen, which has been known to stir up methane and could connect this methane to somebody’s water well. In most cases, the methane was already connected and often already an issue. “Also, if an oil or gas well isn’t constructed right, you can get some methane at the surface casing vent. You can shut the

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

FRACK-TURED // OIL & GAS

THE CONFERENCE WAS HOSTED BY A GROUP OF EIGHT UNDERGRADUATE STUDENTS AND A PROFESSOR WHO SOUGHT TO FOSTER A MEANINGFUL CONVERSATION ABOUT FRACKING THAT INCLUDED ALBERTANS FROM ALL WALKS OF LIFE, INCLUDING OIL AND GAS STAKEHOLDERS, vent to stop that from coming out; it’s not an uncontrolled leak. Methane leaking into surface casing has been a problem in the industry since we started. Some of the worst areas for this occurring are in the eastern part of Alberta, where fracturing has never occurred. You really can’t compare this situation with fracking. Industry has had this problem long before hydraulic fracturing came along. We are aware of the problem and there are ways to prevent it, but it still happens from time to time.” With the decry about the energy industry in the media, does Browne feel like media conversation about fracking is a losing battle? “No. We believe that as the serious studies come out, they are showing the science behind the practice of fracturing, and how the risks are manageable. Policy people and regulators understand that the risks are manageable. A lot of these projects are going to get approved despite the opponents trying to make it sound scary. Most people will realize that opposition is against the oil industry or fossil fuels in general, not specifically the practice of hydraulic fracturing, though it’s getting all the attention.” Next, let’s take the pulse of the public, and there is nobody better to represent this pulse than AlbertaVoices. AlbertaVoices emerged from a 2012 multi-perspective conference on hydraulic fracturing. The conference was hosted by a group of eight undergraduate students and a professor who sought to foster a meaningful conversation about fracking that included Albertans from all walks of life, including oil and gas stakeholders, landowners, First Nations, government representatives and nongovernment organizations. “In order for conversations about fracking to be meaningful, all perspectives needed to be at the table,” says Hans Asfeldt.

LANDOWNERS, FIRST NATIONS, GOVERNMENT REPRESENTATIVES AND NON-GOVERNMENT ORGANIZATIONS. “We saw a need to begin including the marginalized voices in a way that was not polarizing, but respected the wisdom of their experience. With this in mind, my research partner, Alison Bortolon, and I led the AlbertaVoices project out of the Chester Ronning Centre for the Study of Religion and Public Life and spent a summer filming some of the stories that had not been fully considered. We were supported by Ronning Centre fellow Rajan Rathnavalu, associate director Dittmar Mündel, and director David Goa.” The conversations have been very productive, confirms Asfeldt. “These are conversations of a nature that is not often given space in the public discourse. The fracking debate is often polarized and tends to ‘radicalize’ environmentalists on the one hand while ‘demonizing’ the industry on the other. It’s unfortunate that the discourse portrays such a dramatic dichotomy because often, people on all sides actually share very similar hopes for the future of our province. Ultimately, the debate is harmful to all sides and there is a need for more meaningful conversation if we are to build the future that we hope for together. “One important component of good conversation includes peer-reviewed science. For example, a federally commissioned report produced by a panel of the Council of Canadian Academies (CCA), composed of numerous top experts in various disciplines, illustrated that many of the questions about fracking simply remain unanswered and that development has far surpassed our knowledge of its implications. With this in mind, claims that there are ‘no documented cases of fracking causing water contamination’

ABOVE: DAVID GOA AND HANS ASFELD.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

FRACK-TURED // OIL & GAS

should be considered carefully in light of considerable gaps in research and scientific evidence. “The CCA also concluded that many public concerns about the safety of fracking are legitimate and warrant further study. Indeed, impacted First Nations and landowners have often lamented the fact that their concerns are regularly dismissed. By bringing their voices to the table alongside those of industry and government, there is an opportunity to identify concerns and proceed with the appropriate research that is needed for development to continue responsibly. “However, a meaningful conversation requires more than research alone. No amount of scientific analysis has the capacity to overcome the conflicts that have percolated for decades across the province. From Weibo Ludwig to Jessica Ernst and so many in between, we have seen livelihoods clash time and time again. Much of it is hidden in a culture of silence propagated by the fear of touching something so volatile, but if we are to engage a meaningful conversation about fracking and oil and gas development more broadly, we must learn to let these stories surface in a way that honours the very real human dimensions of a landscape that has largely been discussed in economic terms alone. In doing so, we can begin to realize that we are connected to our fellow Albertans by a common desire to maintain healthy families, healthy communities, and ultimately, a healthy province.”

Asfeldt is pleased about the progress being made inside and outside of the energy industry. “There is an increasing amount of research on fracking. Most encouraging is that stakeholders from industry, the non-profit sector, and elsewhere seem ready for conversation.” Research, science, conversation and education are the keys to understating fracking in Alberta. To learn more about fracking, visit tricanwellservice.com/ resources and click on the Talking Oil & Gas Booklet icon. This leads you to a beautifully illustrated, extremely interesting, detailed and factual account of the industry and its practices. The AlbertaVoices website is found at albertavoices.ca. Their new project, AlbertaFracking, is in development. Asfeldt invites everyone, inside and outside of the industry, to lend their voices to the ongoing conversation. You can contact the AlbertaVoices/Fracking team through their website. It’s no secret that Alberta runs, in a large part, on oil and gas, while also being concerned about our health, safety and environment. At times, it’s hard to reconcile the industry and the lifestyle it affords with the implications of resource extraction; but if one digs deeply enough, the factual information – and the stories of the people – are easy enough to find.

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

UNSETTLED SKIES // COMMERCIAL REAL ESTATE

Unsettled Skies

EDMONTON’S COMMERCIAL REAL ESTATE DEVELOPERS ARE STILL WAITING FOR THE PROVERBIAL SHOE TO DROP WITH REGARDS TO SAGGING OIL PRICES. IN THE MEANTIME, IT’S BUSINESS AS USUAL.

BY BEN FREELAND

f Alberta is in the midst of an economic recession, somebody clearly forgot to tell Edmonton. Construction cranes continue to sprout all over the city’s central business district like bamboo shoots, while glittering megaprojects like Rogers Arena and the surrounding Ice District are quickly taking shape. In the meantime, house prices appear to be holding steady, fed by a still strong influx of migrants from across Alberta, Canada and from abroad. Edmonton International Airport continues to add new passenger and freight services to its network, including a first ever AsiaPacific non-stop to Shanghai, courtesy of Air China Cargo. If Edmonton is in a recession, it’s a strange one to say the least. Of course things are not always as they seem. While business continues to be done and construction continues unabated, industry leaders contend that the full impact of last year’s oil price freefall has yet to be truly felt in the provincial capital. Meanwhile, a recent report from Colliers International indicates lower-than-average investment in commercial real estate holdings in Calgary, citing a “relatively dormant” downtown office market with capitalization rates ranging from 5.5 per cent to 6.25 per cent in A class properties, and 6.5 per cent to 7 per cent in B class. “As demand continues to slip, the potential for energy companies and/or those related to the energy sector to take this opportunity to contract looms by making rental areas once slated for future expansion available as sublease space,” states the report. “This is certainly true in Alberta where this potential-added inventory will only further increase the supply already coming to market through numerous developments, compounding supply, where there is currently little demand for additional space. As a result, it is expected that rental rates will soften in these markets where this type of product is most prevalent.”

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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UNSETTLED SKIES // COMMERCIAL REAL ESTATE

““IT’S A MIXED BAG RIGHT NOW. BUSINESS IS STILL BEING DONE, SPACE IS BEING LET, AND BUILDINGS ARE TRADING, BUT STILL THERE’S AN OVERHANGING CLOUD DUE TO UNCERTAINTY OVER BOTH OIL PRICES AND THE NEW GOVERNMENT. UNCERTAINTY IS NEVER A GOOD THING IN COMMERCIAL REAL ESTATE; DECISIONS GET VERY DIFFICULT TO MAKE IN AN ENVIRONMENT WHERE IT IS HARD TO TELL WHAT MIGHT HAPPEN.” - JOHN ROSS, AVISON YOUNG

Edmonton real estate developers, mindful that property trends in Calgary tend to be a good indication of things to come in Edmonton, are far more nervous about the immediate future than the frenzied building activity in the downtown area would suggest. “It’s a mixed bag right now,” says John Ross, managing director of the Edmonton offices of commercial property developers Avison Young. “Business is still being done, space is being let, and buildings are trading, but still there’s an overhanging cloud due to uncertainty over both oil prices and the new government. Uncertainty is never a good thing in commercial real estate; decisions get very difficult to make in an environment where it is hard to tell what might happen.” FDR’s famous adage about the only thing to fear being “fear itself” is nowhere more self-evident than in the commercial real estate business, wherein, Ross contends, “what you don’t know really can hurt you.” The degree to which the new NDP government’s proposed corporate tax increases and sagging world oil prices will impact the city remains a big unknown, and while construction companies are booked solid well

into 2016, there is a growing sense of unease among many would-be buyers. “We have yet to see any real impact,” says Ross. “But again, fear is the real enemy here.” Avison Young principal Cory Wosnack concurs, stating that the present economic strain could potentially impact Edmonton in a number of ways. “As the strain on the economy spreads beyond Alberta and impacts Canada as a whole, we will see a different type of challenge on Edmonton,” he notes. “For example, large organizations that are facing national challenges may limit their investment risk in this market or put off capital projects because they are not benefiting from an uptick in another part of the country that could warrant taking a risk here. Furthermore, Edmonton typically feels its impact after Calgary when it comes to corporate downsizing in the private sector.” Wosnack, however, asserts that the change of government may end up providing greater stability amid market uncertainties through greater public sector employment. “Edmonton’s status as capital city coupled with the presence ABOVE: JOHN ROSS, MANAGING DIRECTOR OF THE EDMONTON OFFICES OF COMMERCIAL PROPERTY DEVELOPERS AVISON YOUNG.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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UNSETTLED SKIES // COMMERCIAL REAL ESTATE

WHILE UNCERTAINTY REMAINS THE BUGBEAR OF EDMONTON’S COMMERCIAL REAL ESTATE PICTURE, BOTH ROSS AND WOSNACK REMAIN CAUTIOUSLY OPTIMISTIC ABOUT THE CITY’S LONG-TERM PROSPECTS. BOTH ARE HOPEFUL THAT THE BIG PROJECTS UNDERWAY, MOST NOTABLY THE ARENA AND THE ICE DISTRICT, WILL ULTIMATELY FULFILL THEIR PROMISE.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

UNSETTLED SKIES // COMMERCIAL REAL ESTATE

of a new government will likely provide far more employment stability than in any other Alberta jurisdiction,” he contends. “In a climate like this, this would be the benefit of the provincial government being the city’s largest employer.” While uncertainty remains the bugbear of Edmonton’s commercial real estate picture, both Ross and Wosnack remain cautiously optimistic about the city’s long-term prospects. Both are hopeful that the big projects underway, most notably the arena and the Ice District, will ultimately fulfill their promise. “I’m very enthused about Rogers Place and the resulting development in the Ice District,” says Ross. “There are still naysayers who complain about the arena deal, and those who mistakenly believe their tax dollars are being used to fund the Ice District. I personally think this is a colossal game changer on par with what West Edmonton Mall was in the ’80s and ’90s, and perhaps even more so. The complexion of the city will be made more cosmopolitan and attractive, and Edmonton will take a different position in the eyes of the people looking to travel or do business here.” Ross also expresses frustration over the slow pace of the LRT expansion, but at the same time is confident that the Metro (NAIT) Line and future expansions will better equip the city for long-term growth. “The current debacle surrounding the NAIT Line is simply inexcusable, and very much speaks to the concept of the lowest bid not necessarily being the best bid,” he asserts. “This line should now be functioning, and

we should be onto the development of the next route. We’re not, and at present we simply don’t have enough LRT capacity coming into downtown. Of course, LRT expansion does result in short-term pain in the form of construction-related disruptions, but the long-term benefit is self-evident.” While overarching market conditions continue to cast a shadow over Edmonton’s commercial real estate scene, both Wosnack and Ross assert that the city’s long-term prospects remain bright, even if some of the more wildly optimistic predictions of recent years, such as an exodus of company offices from Calgary to Edmonton, have failed to materialize. “I, for one, have never believed that we were going to see this type of relocation of offices from Calgary to Edmonton,” says Wosnack. “For a time Edmonton held the ‘affordability card’ vis-à-vis Calgary, but that simply isn’t the case anymore. Nor is this a bad thing, as it speaks to the continued improvement of Edmonton’s national and international profile and the perception of quality of life here, which has dramatically improved in recent years. Edmonton will continue being Edmonton, and Calgary likewise.” Let Edmonton be Edmonton—this could well be a fitting slogan for a city looking to shake off the lingering effects of an economic downturn as it strives to achieve its muchvaunted promise as an emerging economic hub. In the meantime, the city’s commercial real estate leaders will continue to do what they do, while assuring potential buyers that “fear itself” is indeed all they need fear.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

EASTERN PROMISES // AIRPORT DEVELOPMENT - PART V

EASTERN BY BEN FREELAND

Promises

dmonton International Airport (EIA) barely had time to savour the launch of its third non-stop European route (and its first to continental Europe) in May of this year before landing another very big fish. Less than a month after Dutch national carrier KLM launched its inaugural Edmonton-Amsterdam route, Air China Cargo, a joint venture co-owned by Cathay Pacific and Chinese flag carrier Air China, announced that it would be debuting a scheduled cargo route from Shanghai’s Pudong International Airport to EIA, and continuing on to Dallas/Fort Worth International Airport. “This new cargo service is a game changer for the Edmonton Metro region,” said Edmonton Mayor Don Iveson in regards to the new route. “Air China Cargo’s confidence in Edmonton, as its inaugural Canadian entry market, is underlined by our strong logistics and economic fundamentals. This service was made possible through the efforts of EIA, and both EIA and ACC were key components of our Asia mission this spring.”

A true game-changer To say the new route is a big deal is a colossal understatement. The Shanghai-Edmonton-Dallas route represents Alberta’s first ever air cargo connection to Mainland China, and makes Edmonton Air China Cargo’s first scheduled Canadian route. The six-weekly service (three weekly departures from Shanghai, three from Dallas) will employ a high-capacity Boeing 777 freighter with a maximum payload of 226,000 pounds (103,000 kilograms), making it the largest regular scheduled freighter to serve

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

Edmonton. The new route also connects the Edmonton region to the world’s third largest air cargo hub at Shanghai Pudong International Airport, whose traffic grew by a robust 8.6 per cent in 2014. EIA estimates that the new route will produce a $31 million GDP gain per year for the region, leveraging and expanding Asian investment in Alberta, which has totaled some $30 billion since 2012. The service is expected to serve as an important conduit for consumer goods like smartphones, tablets, audio/visual components, fashion merchandise, and other retail products into the Edmonton region, while simultaneously furthering Alberta’s exports of industrial equipment, agricultural products, and other local products to the Chinese market. “I applaud EIA for landing such a substantial and important investment for Edmonton and the province,” says Lori Sigurdson, minister of Innovation and Advanced Education. “Creating new partnerships and increasing market access are just some of the ways our province is able to support good jobs in a diverse and stable economy. Alberta continues to be a strong and competitive place to do business and Air China Cargo’s decision to make Edmonton its first Canadian entry point demonstrates just that.”

A passenger route to follow? While the new Air China Cargo route is not the non-stop AsiaPacific passenger service that many in the region have been hoping for, industry experts note that a dedicated freighter service can often serve as a precursor to a passenger service.

EASTERN PROMISES // AIRPORT DEVELOPMENT - PART V

EIA ESTIMATES THAT THE NEW ROUTE WILL PRODUCE A $31 MILLION GDP GAIN PER YEAR FOR THE REGION, LEVERAGING AND EXPANDING ASIAN INVESTMENT IN ALBERTA, WHICH HAS TOTALED SOME $30 BILLION SINCE 2012.

Alex Lowe, manager of Cargo Business Development at EIA, notes that in in many cases cargo can contribute more than 30 per cent of the revenue towards a long-haul passenger flight, while also showcasing an airport’s services, amenities, and economic advantages for the passenger market. “Demonstrating a strong air cargo market strengthens the overall business case for long-haul passenger service, and has a positive impact of the overall profitability of such a flight,” Lowe explains. In the meantime, the new high-capacity air cargo connection is good news all around for the airport and the region, particularly for Port Alberta and EIA’s other Cargo Village stakeholders. “Not only does this new route represent new business to the existing businesses within the Cargo Village, we also expect it will stimulate additional growth within the Cargo Village,” says Lowe. “Air China Cargo, in addition to the carriers already flying to EIA, will increase the airport’s appeal as a consolidation and de-consolidation point for shippers and freight forwarders.” The new route also further strengthens ties between Alberta and Texas. On the passenger front, EIA already enjoys daily

flights to Dallas/Fort Worth International Airport with American Airlines as well as a twice-a-day connection to Houston Intercontinental Airport with United, making the Lone Star State one of EIA’s most important stateside partners. Many of the oil and gas companies located in the Leduc-Nisku industrial corridor have close ties to counterparts in the Dallas and Houston metropolitan areas, making the southeast-bound leg of this new route just as important as its westbound trans-Pacific leg. “It is with tremendous excitement that we welcome Air China Cargo as part of our business community,” says Edmonton Economic Development Corporation (EEDC) president and CEO Brad Ferguson. “Edmonton’s businesses are more connected now than ever before. With the establishment of Port Alberta’s Foreign Trade Zone, EIA expansion and extensive connectivity to road and rail, Edmonton is quickly building momentum as the primary logistics, transportation and service hub for Western Canada. We are delighted that Air China Cargo has chosen to take advantage of our position.” With the new Air China Cargo route, EIA has once again delivered on its promises. Stay tuned for what comes next.

BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

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Innovation in Our City By Janet M. Riopel, President & CEO

dmontonians are innovators. In decades past, people in our city invented the food bank, the community league system and a modern version of community policing. More recently, innovations have been pouring out of technology incubators in the city, including TEC Edmonton, a joint venture set up four years ago by the University of Alberta and the City of Edmonton. TEC clients now employ more than 1,800 people in the region. LoginRadius is one of TEC Edmonton’s success stories. Two college students – Rakesh Soni and Deepak Gupta – saw a problem with people having to take time to register on a website with a username, password and various information fields. So they asked, “Why not sign in using your existing social media accounts, such as Facebook, LinkedIn, Twitter, Google and Yahoo?” These two young entrepreneurs developed technology that uses your existing social media information to get past this Internet sign-up hurdle. Their product is now being used by more than 120,000 website customers around the world. It was recently ranked 26th among Canada’s top 100 startups by TechVibes, a technology news website. Another research project in Edmonton has been making headlines. Researchers at the University of Alberta and IGY Inc. have spent more than a decade developing a new food supplement that is designed to relieve symptoms of gluten intolerance and celiac disease. Now, in a deal set up by TEC Edmonton, London-based Vetanda Group Ltd. has invested more than $2.5 million to further this research. Vetanda has acquired the exclusive licence and will take the product to market after the required efficacy trial. This product could be available to Canadians within three years. Just think, people who suffer from celiac disease could once again enjoy beer and pizza!

Incubators allow entrepreneurs to surround themselves with people who have expertise and experience. As these examples illustrate, technology incubators have become part of the business landscape in the Edmonton region. Incubators allow entrepreneurs to surround themselves with people who have expertise and experience. This is especially important for start-up companies that are prone to making mistakes simply because they lack experience. Encouraging innovation is now a key issue not only for business leaders and entrepreneurs, but governments in Canada as well. A year ago, the Province set up the Alberta Innovation Council, which advises the premier and cabinet on innovation policies, strategies and initiatives. Not surprisingly, the council’s 10-member board of directors includes both the current and former CEO of TEC Edmonton. In order to build businesses and create jobs, it’s critical for Canadians to have access to an environment that helps foster innovation and advance ideas to the marketplace. Accelerators and incubators are the key to making this happen. The Edmonton Chamber of Commerce is developing a policy paper that will encourage both innovation and support systems or entities that help entrepreneurs develop their ideas and start-ups. We believe this as a key part of an overall economic development strategy for the Edmonton region and we welcome your input and advice. I encourage you to become part of the conversation by emailing us at policy@ edmontonchamber.com. BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

A Fundamental Leadership Shift in the Capital Region By Warren Singh, Director of Policy

new economic opportunity in the Edmonton Capital Region has quietly progressed in recent months and will soon have the potential to generate business and jobs within the two dozen municipalities surrounding Edmonton. The communities that make up the Capital Region have given approval in principle to the creation of a regional economic development strategy. A working group has been set up to guide this new organization and final approval of this model is expected sometime this fall. The motto going forward for these communities is, “If one wins, we all win.” The mandate of this new entity is to attract new investment, industries and projects, and market the region as a business location of choice to attract skilled workers. A 12-member board of directors will run the organization, comprised of the following: • Four members from local cities and municipalities • Four members from industry • Two members from universities or technical groups • Two members from chambers of commerce or development associations within the region This is a huge win for the Capital Region, especially when you consider the history of legal battles between the stakeholders. There has been a long list of annexation battles between Edmonton and outlying communities. The Edmonton Chamber of Commerce has developed a policy paper that encourages economic co-operation between the communities, while acknowledging the past has been marked by a “culture of acrimony.” But now the parties appear to have buried their grievances and agreed to work together for the benefit of the entire region. The Capital Region Board voted in June to give preliminary approval to this economic development strategy. “This is a fundamental shift for the leadership in the region and I would like to give a shout-out to the people who made this happen. It does take a bit of a risk,” said Malcolm Bruce, CEO of the Capital Region Board.

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

The first step in building this economic enterprise is the creation of a new agency to carry out its objectives with the help of a business advisory council made up of about twodozen members from a wide range of sectors. Regional communities will be sharing the $600,000 in start-up costs, with the largest communities paying the most. Federal funding is also expected at some point through the Western Economic Diversification Fund. The creation of a regional economic strategy is a significant step forward in accomplishing the primary regional cooperation mission of finding ways to share services and transportation systems, coordinate business services, and avoid duplication and redundancies.

“This is a fundamental shift for the leadership in the region and I would like to give a shout-out to the people who made this happen,” said Malcolm Bruce, CEO of the Capital Region Board. The Edmonton Chamber has been a key part of this process, with our President and CEO, Janet Riopel, sitting on the Capital Region Board Economic Development Steering Committee, along with representatives of the Greater Edmonton Region Chambers of Commerce. The Edmonton Chamber applauds the efforts of everyone who has been involved in this process. It is our hope that this will signal a new era of co-operation between the 24 municipalities within the Capital Region. For more information about Edmonton Chamber policy work and initiatives, visit EdmontonChamber.com/policy.

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Keeping Pace with Technology in the Digital Age By Tatianna Lazowski, Communications & Marketing Coordinator

s technology becomes increasingly sophisticated, so too do the users of technology, presenting an interesting dilemma for today’s modern businesses. How do you keep pace with the dizzying speed of technical innovation while still maintaining your core business objectives? In working with iomer internet solutions to design their new website, the Edmonton Chamber of Commerce learned that the key is maintaining a focus on the “human” element. This human element first started when the Edmonton Chamber engaged with Mangal Singh to reinvent EdmontonChamber.com for the mobile generation.

of people, especially when working with technology. “What was invaluable to me was to understand that even though we deal with technology, at the end of the day it’s people that need to use it, so we have to pay special attention to their needs,” said Singh. With that in mind, Singh began the explorative journey of working with the Edmonton Chamber on their redevelopment project. He quickly discovered that the Edmonton Chamber’s website and CRM system were challenging to use and didn’t accurately reflect the organization’s brand. The Edmonton Chamber wanted a flexible, visually appealing and user-friendly solution that was easy for both internal staff to manage and external members to navigate.

The Edmonton Chamber wanted a flexible, visually appealing and user-friendly solution that was easy for both internal staff to manage and external members to navigate.

Mangal Singh, Senior Consultant, iomer internet solutions inc.

Singh, a senior consultant at iomer, was the go-to person for all of the Edmonton Chamber’s needs throughout the project. A 15-year veteran of the IT industry, Singh started his career as a web developer, moved into a business analyst position and is now a well-regarded project manager. Throughout his years of experience, Singh learned the importance of meeting the needs

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

One of the major challenges for iomer during the beginning stages of this project was gaining an understanding of how the Edmonton Chamber’s internal processes integrated with one another. Membership, policy, events, finance, sales, communications and marketing processes all had to be identified and collated into a single digital space. These issues were solved by integrating a newly designed website with a state-of-the-art CRM system. This system allows the Edmonton Chamber to update website elements, complete registration processes, communicate directly with external audiences and perform

financial tasks using two integrated, user-friendly tools. These tools provide several value-added features for visitors to the site: • • • • • •

Convenient, personalized member portals Interactive, engaging design elements Improved site architecture, providing easy site navigation Rich, informative content Easy-to-use membership and event registration processes Informative online business directory

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The new website is also extremely dynamic, said Singh. The Edmonton Chamber has the ability to easily update the website according to user needs without specialized technical training or assistance. The website is also fully mobile responsive, meaning users have the ability to easily use it on all devices, including desktop computers, tablets and smart phones.

The Edmonton Chamber’s new tile-based website enables staff to easily add and remove webpages, update content, completely restructure webpages and offer advertising opportunities in a variety of locations.

In building an intelligent, flexible solution that greatly enhances the customer experience for valued members, iomer empowered the Edmonton Chamber to keep pace with current technical innovation, maintain core business objectives and satisfy important stakeholders. The end result is a website that is striking from a design perspective, easy and convenient to use, and simple to maintain.

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BUSINESSINEDMONTON.COM // BUSINESS IN EDMONTON // SEPTEMBER 2015

Singh has insightful advice for companies looking to transform their digital assets: 1. Establish a strong strategic vision of how you want your end product to function and what you want it to look like. 2. Engage with a service provider that fully understands your vision and can offer you valuable solutions to achieve a high quality product. 3. Understand the goals and needs of your audience(s). Clearly understanding the expectations of your audiences will allow you to build a more effective final product. 4. Filter stakeholder interests by identifying whether they help meet your strategic project goals. Ensure only the most relevant, strategically logical elements are incorporated. Of course, one of the most important project factors to consider is budget. “You can do anything you want to as long as you have time and budget,” said Singh. “Budget is always critical.” Many organizations begin the planning process with a specific budget in mind, but changes are inevitable, explained Singh. “When developing your budget, plan to spend 15 to 20 per cent on change requests and budget accordingly.” Singh said every IT project contains a key “discovery phase”— when the technology experts discover specifics of a company’s

Understand the goals and needs of your audience(s). Clearly understanding the expectations of your audiences will allow you to build a more effective final product. culture and core objectives. The discovery phase also benefits clients tremendously with new insights gained on the key factors required to deliver an incredible customer experience in the digital realm. This is when the “human” element comes into its sharpest focus. “What echoed very loudly was that the Edmonton Chamber has a very strong goal to make sure they’re providing value to their members,” said Singh. Providing value for members. In building their new website, this was the “human” element uppermost on the minds of the team at the Edmonton Chamber. What is the “human” element crucial to your business? Answer that question and your technology solution is sure to be the best one for all involved. For more information and to see the new site in action, visit EdmontonChamber.com.

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SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

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Edmonton Chamber of Commerce | EVENTS |

Growing Your Business in an Evolving Economy Featuring a select group of informative and entertaining events, this

yearâ€™s *Small Business Week event focuses on the key insights and tools needed to grow your business in an ever-shifting economy.

Protecting Your Small Business From Fraud October 19 2:30 p.m. to 4:00 p.m.

Small Business, Big Vision Luncheon with Justin Lussier

Selling to Government & The Public Sector

SBW After Business Mixer & Tradeshow

October 21

5:00 p.m. to 7:00 p.m.

October 20

8:30 a.m. to 4:00 p.m.

October 21

11:30 a.m. to 1:30 p.m.

Building a Company From The Inside Out â€“ Panel Discussion

Linking Hiring & Retention Strategies in Your Small Business

October 22

October 23

11:30 a.m. to 1:30 p.m.

9:00 a.m. to 10:30 a.m.

Small Business Week 2015

Register at EdmontonChamber.com to secure your seats for these must attend events. T 780.426.4620 | edmontonchamber.com/events

*BDC Small Business Week is a trademark of the Business Development Bank of Canada (BDC)

SEPTEMBER 2015 // BUSINESS IN EDMONTON // BUSINESSINEDMONTON.COM

CANADIAN BUILDINGS STAND OUT IN COMPETITION

World Exchange Plaza, Ottawa, Ontario.

anadian buildings loomed large as BOMA International handed out The Outstanding Building of the Year (TOBY) Awards at its recent 2015 annual conference and expo in Los Angeles. Four teams of owners/managers from Ottawa, Calgary and the Greater Toronto Area accepted honours at the highest attainable TOBY level after receiving 2014 BOMA Canada national awards last September. Ottawa’s World Exchange Plaza — owned by bcIMC Realty Corporation and managed by Bentall Kennedy — won in the Earth category, recognizing stewardship of resources and sustainable management practices. Calgary’s Rangewinds Business Park — owned by Sun Life Assurance Company of Canada and managed by Bentall Kennedy — was named best Industrial Office Building. The Bramalea City Centre in Brampton, Ont. — owned and managed by Morguard Investments — won in the Retail Building category. Toronto’s 20 Queen Street West — owned by ONTREA Inc. and managed by the Cadillac Fairview Corporation — was best Office Building in the 500,000 to 1 million square feet category. Canadian recipients accounted for more than a quarter of this year’s 15 TOBY winners. “This international recognition

is a testament to the high quality of both our buildings and the professionals who manage them,” says Susan Allen, president and chief staff officer of BOMA Toronto. A new batch of Canadian candidates for next year’s BOMA International awards will be announced on September 17 at the 25th annual BOMEX conference and exposition in Quebec City. www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2015

Intelligent Real Estate Solutions

Q2 - 2015

Citywide-Vacancy:

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Downtown-Vacancy:

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Financial-Vacancy:

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Government-Vacancy: 8.4% 6.3% 17.1% 3.1%

TRIM: 7.875” X 10.75”

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• The first tower is going up at 101st Street and 104th Avenue. This will be an innovative, 27-storey office building designed to meet LEED Gold environmental standards. The City of Edmonton has leased 60 per cent of the building, where it plans to consolidate two-thirds of its downtown staff, who are currently spread across nine locations in the city core. • A dazzling, year-round public plaza south of 104th Avenue and Rogers Place will be built atop a 2,200-stall underground parkade.

September 2015 | BOMA Edmonton Newsletter | www.bomaedmonton.org

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ntil recently, Rogers Place arena under construction in downtown Edmonton got all the attention. But now a sprawling excavation and proliferation of cranes is about to shift the focus south and east to the Ice District (formally the Edmonton Arena District), one of the most ambitious development projects ever undertaken in Edmonton. The Ice District projects currently or soon to be under construction will include approximately 1.3 million square feet of office space, 300,000 square feet of retail and more than 1,000 residential units. Construction of all these projects is being coordinated to follow work on the 18,600-seat home to Edmonton Oilers. Ice District projects underway or planned include:

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• The south side of the yet-to-be-named plaza will be dominated by Edmonton’s tallest skyscraper, the 62-storey Stantec tower. This mixed-use tower will contain a combined one million square feet of office, retail and residential space, including upwards of 320 apartments on the upper floors. • On the east side of the plaza, Delta will open a 26-storey, 362-unit hotel in a third tower planned to soar to at least 50 storeys. The hotel will feature some special amenities and 24,000 square feet of ballrooms and meeting space. This tower also will have hundreds of residential units on the uppermost floors. • The west and south sides of the plaza will be focused on retail. An urban village will include a grocery store, a Rexall pharmacy, banks, shops and numerous food and beverage options. Cineplex has announced it will open a 35,000-squarefoot, ultra-high-definition, VIP theatre. Plans also include: • a yet-to-be-announced apartment tower that would rise out of the west retail podium, within steps of the arena. • potential for two more residential towers on the current casino site at 104th Avenue and 101st Street, plus several square blocks north of Rogers Place earmarked for future development.

The whole area will be linked together by covered, abovegrade pedways and connected to current and future LRT lines. In total, the projects announced to date have an estimated cost of $1.09 billion; once later phases are finished, the ultimate cost of the Ice District could be in the $2 billion range. The project will go a long way towards fulfilling the city’s long-stated ideal of downtown as a place to live, work and play. Or, as a Globe and Mail headline writer aptly put it, “Dig up Edmonton parking lots, put up a paradise.” “The arena really is the catalyst that kickstarts everything,” says Darren Durstling, president of WAM Development Group, minority partner with the Katz Group in the Ice District project. “Without it, I don’t think you would see this revitalization downtown. You’d see a little bit of it, but not to this extent.” One of the inspirations for the emerging remaking of Edmonton’s Ice District concept was L.A. Live adjacent to the Los Angeles Convention Center and the Staples Center arena. L.A. Live is a sports and entertainment campus with a large open square, concert hall, museum, media centre, shopping and restaurants. The area also includes hotels, luxury apartments and office towers. As in L.A., the plan that emerged for Edmonton was audacious and big. The arena and district development would

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encompass 26 acres spanning from 101st Street to 104th Street and from 103rd Avenue to 106th Avenue. Rogers Place would rise where railway tracks once bisected the city. It would be connected to a plaza on the south side of 104th Avenue by the Winter Garden, a spacious, climatecontrolled events venue. “It’s the entrance to the arena, it stretches across 104th Avenue, connects directly into the plaza,” says Durstling. “The majority of patrons going into the arena will come through the Winter Garden. It’s close to an acre in size — really architecturally special, just beautiful.” Although it shares the sports and entertainment focus of L.A. Live, the new Edmonton Ice District will have greater focus on residential, office and retail uses, Durstling says. Planning a project with so many moving parts is a collaborative process. Hariri Pontarini Architects (HPA), designer of many of Toronto’s most striking condominium towers, are the lead designers. Dialog and Edmonton’s Stantec group are also part of the design team. Oversight for the architecture is provided by Shugarman Architectecture & Design. “The Stantec group has focused on the office component on both buildings, HPA has focused on retail and residential component, along with the hotel,” Durstling explains. “They have to work hand in hand, because one is stacked on top of the other.” “At the foot of the Winter Garden on south side of 104th Avenue, we have a 2,200-car parkade,” Durstling explained in the spring of 2015. “Then the hotel will go in sequence first, with the residential above it. Next to it is the podium of retail, then the Stantec office tower, residential above it, then the third residential tower. Then retail below it on the old Greyhound terminal site: residential and retail, cinemas. It’s all on top of the 2,200-car parkade; all being built at same time but they open at different times.” The first puck is scheduled to be dropped at Rogers Place in the fall of 2016. The city-occupied tower should be ready in 2016, with the hotel and Stantec buildings scheduled for 2018. As for the residential, Durstling says, “We haven’t brought them to market yet; we’re just getting organized. We will bring them to market later this year.” “We really didn’t have much of a choice in timing this slowdown in the oil pricing,” but Durstling says feedback continues to be positive. “But what we’re bringing to the office market is really new product. The inventory in the Edmonton office market is a bit dated. We’ve had great reception for our product in the marketplace. I can’t believe how fortunate we’ve been with the acceptance of Edmonton businesses for the whole Ice District. “The Ice District is a big deal for us, it’s been a great partnership with the Katz group.”

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www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2015

FIRST BUILDINGS CERTIFIED FOR BOMA BEST HEALTHCARE MODULE F

ive buildings in Quebec and Manitoba have received the first certifications in the new healthcare module introduced by Building Owners and Managers Association Building Environmental Standards (BOMA BESt). The BOMA Quebec initiative was designed to meet the specific environmental challenges of the healthcare sector, and the goal is to provide managers and operators of hospitals, medical offices and long-term care facilities with a tool specifically designed to face their unique opportunities and challenges and assess and certify their facilities’ environmental performance and management. A technical advisory committee comprised of BOMA Quebec’s André Chalifour, Synergie Santé Environnement’s Jérôme Ribesse, University Health Network’s Edward Rubinstein, McGill University Health Centre’s Serge Sevigny and BOMA Canada’s Hazel Sutton developed the sixth BOMA BESt certification module through 2013 and 2014.

September 2015 | BOMA Edmonton Newsletter | www.bomaedmonton.org

A BOMA QUEBEC INITIATIVE

“Many hospitals in Quebec had been certifying with BOMA BESt using the office module, but really wanted to start benchmarking themselves against their peers,” says Sutton. “They got together and demonstrated that there was a large demand in Quebec for this type of assessment, especially for a sector which does not typically benefit from large influxes of revenue.” Several iterations of a draft questionnaire were sent out for stakeholder feedback and many individuals contributed comments and suggestions to improve the tool and ensure questions were clear. Participants from nine buildings in Quebec, Ontario and Manitoba were then recruited for a threemonth pilot project to insure the applicability and accessibility of the tool in meeting the needs of eligible building types.

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Among the new elements introduced for the healthcare module were examinations of: capture rates for waste; the presence of pollution control systems on medical waste incinerators; the presence of a healing environment for patients, such as healing gardens and other patient-centric features; sustainable food purchasing policies and practices; and climate-related hazards being explicitly discussed and considered when developing, revisiting or updating the facility’s risk assessments and emergency management plans.

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Hospitals never close and 63 per cent of their energy use is dedicated to heating, ventilation, air conditioning and lighting, so implementing comprehensive conservation measures can lead to a 30-per-cent reduction in energy consumption and large cost savings. “Going through the assessment enables applicants to consider their building’s operations in a holistic manner,” says Sutton. “It also means that various departments within the hospital are learning to communicate with each other even more in order to further reduce their impact. This is especially true for waste management practices since BOMA BESt for Health Care requires that all departments participate in the practice.” The first five healthcare buildings to be certified are: • PsycHealth Building in Winnipeg (Level 2) • Childrens Hospitals in Winnipeg (Level 2) • CLSC Simonne-Monet-Chartrand in Longueuil, Que. (Level 3) • Hôpital Pierre-Boucher in Longueuil (Level 3) • Montreal General Hospital in Montreal (Level 4) Three other buildings are completing the assessment and applying for certification.

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www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2015

SPAR CONSTRUCTION RISES AGAIN When the disaster restoration company faced a crisis of their own, they wasted no time in dealing with the situation and moving forward.

By Nerissa McNaughton

par Construction was already unique in the building industry before the events that radically affected the company two years ago. The restoration contractors were used to dealing with victims of fire, flood, theft and vandalism on a daily basis. Then, they came face to face with the shock, uncertainty and change that their clients face when they suffered a disaster of their own. “Our building burnt down in 2013, which forced us to relocate and set up our business in a short period of time so we could still service our customers and clients,” says Mark Comeau, company president. “We had to rebuild. The irony that we are a flood and fire Mark Comeau restoration company has been brought to my attention many times.” The fire gave the entire company a better insight into what their clients go through. “We have experienced it from a perspective that many of our clients face.” Spar Construction was founded in 1985. Comeau joined in 1988. He had recently graduated from the Northern Alberta Institute

Spar Construction | 30th anniversary | page 1

of Technology and was working as a draftsperson for a homebuilder. A friend, Ken Lakhram, who was working at Spar, knew Comeau was looking for more opportunity and invited him to check out an open project manager position. It was a perfect fit. Comeau soon became an owner, joining Ken Lakhram and Colin Campbell as partners in 1998. Dave Wilson was later added as partner in 2011. The team loved reacting promptly to the challenges of fire, flood and other devastations, showing their clients that rebuilding and restoring meant fresh, new starts – but they were unprepared to see their own facility go up in flames. “I remember getting a call from Lakhram saying ‘The building is on fire! You should get out here!’ I thought he was kidding around. I sat in one of the control trucks for three or four hours thinking ‘what are we going to do now?’” he reminisces. I went home for a few hours and came back. There was a backhoe on site. They knocked the building down to nothing.”

The jersey was restored, reframed and moved to the new office. It was symbolic. The jersey survived and rose from the ashes – and so did Spar Construction. In the midst of the smoke and flames, there was a moment of lightheartedness and hope. Comeau says he was very impressed by the firemen running into the building to grab what they could save, including their computer towers. “All of a sudden a fireman comes out the front door carrying our framed Wayne Gretzky jersey,” he laughs. It was an interesting choice at the time, but he appreciates having the sentimental item. The jersey was restored, reframed and moved to the new office. It was symbolic. The jersey survived and rose from the ashes – and so did Spar Construction. “We didn’t miss a beat,” smiles Comeau proudly. Despite “not having a pen to write with”, losing their building and nearly everything in it, within two weeks the company had moved to temporary headquarters and had reopened, stronger and better than ever. Comeau explains, “When I came on board in 1988, I had no idea or indication that there was a company like this responding to people’s misfortunes. When Lakhram suggested there was an opening, I had no idea what to expect. The decision was simply to be a project manager in a general capacity. However, with our recent experience, I can certainly relate a lot closer to the experiences our customers go through and it’s given me more perspective on the process. We rebuild their buildings, their homes, their livelihoods and, by proximity, their lives. It’s done properly. It’s built to last. It’s a new start and a new opportunity to move forward.”

Congratulations to everyone at Spar Construction on 30 years of excellence! Groat Road Auto Service

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Just as their clients are able to move forward, thanks to Spar Construction, the energetic company is enjoying their own new start in a brand new facility. “One thing I believe that sets us apart is the depth of experience amongst our key project managers, says Comeau. My business

12812 52 St, Edmonton, AB 780-473-3959 • www.allsidecontractingltd.ca

Congratulations Spar Construction! 30 Successful Years in Business!

Spar Construction | 30th anniversary | page 2

partners and I are very much engaged in the company performing well. Being in the industry for a long period of time, along with our education and training, instills confidence in our present and future clients. In this industry you need to provide restoration, 24/7 response, storage, and so much more – all while demonstrating compassion and inspiring courage. It’s a full service operation. The contracting and rebuilding, that is just one aspect of what we do.”

Congratulations on your 30 Year Anniversary! Wishing you continued success in the coming years. Hartwell’s Glass & Mirror Co. Ltd. 91 Kaska Road Sherwood Park, Alberta ph: 780-464-1552 • fax: 780-449-4200

C O N G R AT U L AT I O N S Spar Construction on 30 great years

We a r e p r o u d t o b e a p a r t o f y o u r s u c c e s s .

Call today for your free estimate! Ph: 780.488.4900 • ardentroofsystems.com Spar Construction | 30th anniversary | page 3

He goes on to reference their 10,000 square feet of storage, warehousing, capital investments and infrastructure setup, all things he knows are necessary to properly service his clients. Spar employees, of which there are 50 between the field and office, are conscientious, detail-driven, and sympathetic. They all know how to get the job done while understanding the loss, fear, frustration and uncertainty their clients are dealing with. Comeau is proud of his team. “A number of my staff have been with us for several years. I think that is a testament to their loyalty to Spar Construction. They feel like they are doing something they are proud of. They are engaged. Many have been here for more than 20 years.” When Spar Construction opened in 1985, there was only a handful of other companies performing restoration repairs in Edmonton. Today that number has increased significantly and competition in the industry is fierce. However, Spar’s reputation, knowledge and skills continue to make them business leaders. “That’s something I’m certainly quite proud of, how we maintain a presence in the city with a lot of national businesses coming on stream,” smiles Comeau. “We are one of the few last local companies in this industry that has been around this long. Our goal is to maintain our presence in the Edmonton market and we also plan to expand and grow.”

C a n a d a ’ s

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Spar Construction extends heartfelt thanks to each and every one of their clients, employees, supporters and vendors, most of whom they have worked with for many years. The company has changed since Comeau came on board, and so has he. “I recall doing my first large loss house fire many, many years ago. That’s where I really grasped the scope of what exactly can happen to a family when they have gone through a major fire situation and a loss of their contents and their home, and the responsibility that we are entrusted with in order to bring all that back to where they can be comfortable again. “If I could tell our clients just one thing, it would be this: “We’ve seen your situation from your perspective. That has given us additional depth into what people are dealing with when it comes to a disaster. It’s another level of experience that I’m not sure many other companies can offer.” Whether Spar is renovating a family dwelling after the basement floods or restoring the Comfort Suites in downtown Edmonton after its 2006 fire, Spar Construction is the company with the legacy, the knowledge and the very

personal experience to take care of all your disaster restoration needs. Spar Construction extends heartfelt thanks to each and every one of their clients, employees, supporters and vendors, most of whom they have worked with for many years. The company welcomes new clients and opportunities and is ready to help Edmontonians do what they so recently achieved: rise like a phoenix from the ashes.

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Congratulations on 30 years! We wish you another 30 years of continued Success! Ron Aquin CPA, CA, CMA, CFP

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Spar Construction | 30th anniversary | page 5

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Cropac Equipment Inc: Innovation, Foresight and Success By Nerissa McNaughton

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ome people see a gap in the marketplace and shrug their shoulders. Others see a gap and think “opportunity!” Cropac was created in 1977 to fill the high need for cranes and lift truck equipment in the Ontario region. Soon after the launch, Bill Finkle Sr. purchased Cropac and started the company on its journey of success. Today, his son, Bill Finkle, is the president, and he couldn’t be happier to continue the business legacy. Fast forward 38 years. The crane company has expanded with branches in Quebec and Alberta. Inventory includes a full range of cranes for jobs of every size, locally or abroad. The company is the exclusive dealer across Saskatchewan, Manitoba, Ontario, Quebec, the Maritime Provinces and Newfoundland for Taylor lift trucks; and across all of Canada, the authorized dealer for Terex and Manitex. Cropac also represents Tadano Mantis, Shuttlelift, Kobelco and Broderson in various Canadian regions. Crane and lift trucks are also available for rent so clients can meet their obligations without purchasing new units, and the parts and service shop in all three locations keeps equipment running at peak efficiency. Of course, Cropac’s early spirit of innovation still thrives today, which is why the company offers field technicians in fully equipped service vehicles that can meet you on the jobsite.

Cropac’s early spirit of innovation still thrives today.

Cropac Equipment Inc | Grand Opening | 1 65

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The successes kept flowing.

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The first large deal Cropac was involved in was the sale of crawlers to a large Atlantic Canadian rental house. The equipment was used in a refinery expansion project. The successes kept flowing. These days, Cropac is proud to sell large-capacity Terex Demag crawlers, all terrain cranes and shuttlelift gantry cranes to prominent clients working on large-scale projects. In 2015 rapid growth necessitated the move of the Alberta branch to a larger, state-of-the-art facility. “We are committed to Alberta for the long term and built the new facility to better meet our current needs. This facility has lots of room for future growth to better serve our growing client base,” says Bill Finkle, president. “The new facility has eight drive-thru crane bays with four overhead cranes, large wash bays and welding facilities.” Despite rapid success and outstanding growth, Cropac retains the ideals that earned the company respect, admiration and customers when it opened in 1977. “Cropac Equipment is a family owned business,” Finkle points out. “We have worked hard to create a work environment that values our employees and family needs. We have also tried to convey to our customers that as a family-run business, we are vested in their success. Having hands-on ownership and hands-on senior management provides our customers with direct

Congratulations to our new neighbours! We wish Cropac continued success with their new location.

1812 2nd St., Nisku, AB • 780-955-3673 www.niskuford.ca Cropac Equipment Inc | Grand Opening | 2

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WITHIN REACH Manitex’s unrivaled ability to understand customer needs means that your application is covered. With models ranging from 17-70 Ton, you’ll find our cranes lifting among oil fields, power lines, high rises and cul de sacs, all with equal ease. Whether you need to service wells, new construction, raise roofs or heavy lifting, there’s a Manitex model to get it done right.

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relationships at every level within our company. Because Cropac is not owned by shareholders, a conglomerate, or a division of a larger company, we are very focused on our customers. This allows us to be flexible and agile to provide answers and solutions.” “The heavy equipment industry, especially cranes, is very capital intensive,” Finkle continues. “Having the right mix of inventory on hand is key to meeting our clients’ needs and that is what sets us apart from our competition.” Cropac is proud to boast a staff of about 80 and hails the employees as “able to see the big picture, hardworking, loyal and customer focused.” “A company is only as strong as its employee, smiles Finkle. “We have a great team that are dedicated to providing a positive experience for all of our clients. We will always treat our clients the way we would want to be treated. We tell our employees to put themselves in our customer’s shoes and give them the same level of service they would demand. “I want to thank all of our employees for their continued hard work. Specifically, for our Alberta facility, I would like to acknowledge Mike McKenzie, our vice president of western operations. Mike has been a driving force in taking a small startup branch in a rented building in 2011 to our new 25,000 square foot facility in Nisku. “Our longest standing and one of our most dedicated and valued employees is Colleen Higgins. Colleen was a friend of my family

Red Associates Engineering would like to congratulate Cropac on their new location. We would like to also thank all the staff for their great working relationship between our two companies and looking forward to a long lasting relationship in the years to come. (Cheers!)

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Cropac Equipment Inc | Grand Opening | 4

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growing up and worked part time during her high school years. She joined the company full time in 1986, starting in the accounting department. She is currently our office manager in the head office in Oakville. I could not ask for a more loyal or hardworking employee!” Finkle has learned many things over the years, and he’s happy to share his wisdom. “Great leaders recognize the areas where they are strong and the areas where they need help,” he says. “Surround yourself with leaders who possess skills that compliment your own. It may sound corny but make sure you enjoy the work you are doing and hire people that are great at what they do – people that you like being around.” When you see a need in the industry and reach out to fill it with the required product or service, and do so with integrity, motivation, pride in your work and a humbleness about your achievements, you get results; and those results are recognized by others. Cropac is the proud winner of several sales and service awards including recognitions from three of their key vendors, Manitex, Terex, and Taylor. When Cropac is not changing and challenging the industry, you’ll find members of each branch being active in the community from serving on hospital foundations to coaching youth athletics and donating to the United Way. As Cropac heads towards 40 years in business, Finkle looks back with satisfaction and contentment. The need identified in the marketplace has been filled, but that is just the beginning. With the expanded presence in the west, Cropac looks forward to becoming the region’s premier choice for cranes, and continuing to excel across all branches.

800.427.6722 sales@cropac.com www.cropac.com

20 years of experience. “Big or Small we haul them all!”

Jamie Tremblay 800-661-9119 - Ext.230 www.dvlfreight.com Cropac Equipment Inc | Grand Opening | 5

CRANES

We congratulate Cropac Equipment on their new Nisku, Alberta branch. Thank you for your continued support as an authorized Terex distributor. www.terex.com/cranes

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