February 17th, 2016

Page 1

INSIDE

PUBLISHED EACH WEDNESDAY

Vol. 51 No. 46

Serving the Trading Areas of Wawa & District Hawk Junction & White River

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Wednesday, February 17th, 2016

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A Feature Interview With Maury O'Neill, CEO Of Wawa's EDC

Article by Ken Warwick   On my visit to Wawa last week, I was fortunate to have some time to sit down with Maury O'Neill. For those of you who don't know, Maury is the CEO of Wawa's Economic Development Corporation. I can say with some certainty, that she is Wawa's biggest champion. She has a deep understanding of the challenges facing the Town, and really all Northern communities. Thankfully, she also knows what needs to be done to help steer the economy in a more prosperous direction and she executes on those objectives with enthusiasm every day.   Maury and I had been planning to get together for a few months for a discussion, however our schedules had played havoc with any plans we tried to put in place. As I was coming into town, she called to let me know that the entire office had come down with a nasty flu bug only a few days earlier and that she was still contagious.   Courteous, as she always is, she was giving me the wiggle room I need to get out of contracting her illness by cancelling the interview. I told her I was coming anyways, but that we wouldn't shake hands and we would sit at least ten feet apart. I hadn't been sick this winter, and thankfully I didn't catch her cold from the visit. I attribute this strong immune system defense to my increased vegetable consumption and reduced beer drinking since the Holiday season.   Maury has a unique window into the business climate in the community. And while I can't fit an entire hour long discussion into one newspaper article, I have included the excerpts that I thought were most interesting. Here is what Maury had to say.   Ken: Well, I didn't bring

my hazmat suit Maury. Is there a safe chair to sit in? [She passes me a container of Lysol Disinfecting Wipes].   Maury: No. This is where your luck runs out. It is a pretty nasty cold.   Ken: I haven't had any luck for years. [laughs]. Tell me about the last twelve months for the Town, economi-

cally speaking.    Maury: Well, the local economy has certainly stabilized during the last twelve months. We have had a number of years, going back to 2007 really, where confidence was really shaken within the business community. The closure of the Weyerhaeuser mill in 2007 precipitated the next leg down. The loss of good paying jobs resulted in further population decline and there was less disposable income to be spent at local stores. Retail is a very difficult business in Wawa these days.   Ken: What do you believe are the reasons for the struggle in the retail sector in Wawa?   Maury: There are a number of factors that are contributing, but there are four major reasons in my eyes. The first is the availability of suitable store fronts at a reasonable cost. Taxes, rent and hydro are creating an environment with large fixed expenses at the outset for most small retailers. It is difficult to overcome that obstacle. The second reason is that there are not enough people wanting to take the chance at operating a business in Wawa. We don't have the risk takers for the opportunities that have come up.   The third issue is the impact from online and out of town sales. It is amazing how much online business is being conducted these days. I know you see it because you are selling across the Province through your website. It makes it hard for brick and mortar businesses to compete against low cost online retailers that can ship overnight. The last major reason is the competition from businesses in Sault Ste. Marie. There are a large number of established

businesses in the Sault that travel to Wawa regularly to provide supplies, goods and services. They have captured a large part of the market. They can travel here the same day to bring what is needed. They don't need to open a storefront here since it is cheaper just to travel. You don't have the fixed expenses of having a store on Broadway in Wawa.   Ken: You mentioned that some opportunities have come up to operate stores in town. Are they franchise opportunities with well-known brands?   Maury: We have had discussions about two potential franchise operations in the last year or two. The first franchise was The Source, the Canadian electronics retailer. The second opportunity was to run a M&M Select store. This is the frozen food retailer. The Select model of their store is smaller than the traditional M&M stores in cities. The model is designed specifically for small towns like ours. The EDC regularly reaches out to different companies and businesses to see if they are interested in coming here. In both of these cases we could not find an entrepreneur to take on the challenge, even though a viable opportunity existed.   Ken: Are you able to help with financing for small businesses?   Maury: We don't directly get involved in financing. We don't provide loans or capital. The Superior East Community Futures Development Corporation is the federally funded organization that provides financing for businesses not just in Wawa, but in the Superior East region. Our office works with them to help businesses access capital through that organization. Part of our responsibility is to make business people aware of the funding that is available to them. Government programs and funding models are changing all the time. It is nearly impossible for the average business person to stay on top of these changes. If they come to see us, we can point them in the right direction.   Ken: Are there people coming in to your office and taking advantage of the programs that are available, or to have conversations about them?   Maury: Unfortunately, in 2015 we didn't have a lot of inquiries into what is available.

As I mentioned, the economy has stabilized in Wawa and our population appears to have stopped declining as well. My sense of it is that people are still adjusting to our lower population base so I expect 2016 to be similar. I am optimistic that as that adjustment runs its course we will start to see economic growth resume and that people will be looking at options to start new businesses and our office will be having a lot more of these funding conversations with prospective business owners.   Ken: What is your office doing to provide training to folks thinking about starting a business? Do you provide any training?   Maury: Absolutely. We regularly help organize seminars covering the various aspects of running a business. In fact we have one coming up February 17th. The EDC and its partners are hosting a lunch focusing on e-Business and business planning. We provide advice on topics such as financial forecasting, preparing cash flow statements and projections as well as a host of other topics that potential business owners may not have had any exposure to before.   Ken: Is the market large enough locally to sustain a diverse group of new businesses in Wawa?   Maury: The market in Wawa can support significantly more businesses. What needs to happen, is that business people really need to understand the market locally. They also need to recognize that Wawa does not have to be their only end market. For instance, we just completed our Age Friendly Survey. It showed us that fifty percent of the residents in Wawa are over the age 50. What does that mean to you as a business person? Well, it means you need to target your advertising to that demographic. It means

61 Mission Road Wawa, Ontario P0S 1K0 Tel: 705-856-2394 Cell: 705-856-5595 Fax: 705-856-4290 alainbouffard@missionmotors.com www.missionmotors.com

Basic Black . . . . . . . . . . . . . . . . . Pg. 6 Business Directory . . . . . . . . . . Pg. 6 Carol Hughes Column . . . . . . . . . Pg. 4 Classified . . . . . . . . . . . . . . . . Pgs. 9-11 Crime News . . . . . . . . . . . . . . . . . Pg. 5 Crossword . . . . . . . . . . . . . . . . . Pg. 11 Legion News . . . . . . . . . . . . . . . . Pg. 4 Nuts ‘N Bolts . . . . . . . . . . . . . . . . Pg. 3 Pathways . . . . . . . . . . . . . . . . . . . Pg. 9 Storytime . . . . . . . . . . . . . . . . . . . Pg. 8 Sudoku . . . . . . . . . . . . . . . . . . . . Pg. 9

you need to provide goods and services that people in that age group want access to. You need to cater to the demographic dynamics.   Business people also have to look at how they can sell their products and services outside of Wawa. They need to consider how they can implement e-commerce solutions to expand their end market. Perhaps it makes sense to travel in the region. You could sell into surrounding communities like White River and Manitouwadge. The opportunities exist, but you need to take the risk and go after them.   Ken: You spoke earlier about business in Sault Ste. Marie and the competitive challenges it presents to operators in Wawa. Can you expand on that for me?   Maury: I have always considered Wawa to be a bedroom community of Sault Ste. Marie. The bonds between the communities are very strong and they have been in place for a very long time. As a community, the residents here do much of their shopping in Sault Ste. Marie. To be clear, that is not a bad thing generally speaking. But from a business development perspective in Wawa, it creates a challenge when those dollars are spent down there instead of with a local business. It creates another obstacle to establish a profitable local enterprise.   Our conversation continued on for another 30 minutes. As you can read, Maury has the necessary insights and a grip on the issues facing local businesses and potential businesses. I want you to be able to read the rest of our conversation. Her perspectives are interesting and insightful.   You can read the rest of our Feature Interview with Maury O'Neill on our website at www.thealgomanews.ca.

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