Portfolio Corner: 2021, A Year Of Experiences

Global Consumption To Roar Back

By Steven Mayo

Here’s why. The growth of the “middleclass” around the world continues, and the numbers are incredible.

The first round of COVID consumption was focused on home improvements, and toys. In 2020 we were at home, or had to stay local. People were buying cars, trucks, RVs, and boats, spending on decks, fences, pools, or upgrading the interior of their home.

For 2021 the next consumption binge is for experiences, all of which we used to be able to do, but were placed on hold. It will be back to travel and leisure, staying at hotels, flying on airplanes, dining out, attending sporting events and concerts, casinos, and the theatre.

As I write, these areas are starting to improve, based on the rollout of multiple vaccines. It takes time but vaccinations and rapid testing will open the door for more of us to plan experiences. Of course, we will likely start small by going to local restaurants and events, before considering other destinations, or crossing borders.

The stock markets are already looking forward to better days, seemingly ignoring the spike in COVID cases and subsequent deaths we experienced in January. Markets do tend to do this.

Yes, there will be setbacks along the way, but I believe 2021 will be a story of the return of global consumption. The buying power of the growing middle class will be the spark.

The Brookings Institution, and authors Homi Kharas and Meagan Dooley, compiled the following list of the Top 10 Countries by total middle class expenditures in 2020 (in trillions of US dollars): China $7.3; USA $4.7; India $2.9; Japan $2.0; Russia $1.6; Germany $1.5; Indonesia $1.2; United Kingdom $1.1; Brazil $1.1 and France $1.0.

Interestingly enough total household consumption in the United States is actually higher than in China because of consumption by rich U.S. consumers.

China now accounts for 33 to 50% of global car sales and 40% of Smartphone sales globally. In 2019 Chinese citizens took a staggering 300 million vacation and business trips, with more than half abroad.

It’s likely that global consumption trends will be back on track relatively soon, and this could mean that demand begins to exceed supply for certain destinations and airline routes.

The good old days will be back. I can hardly wait, but for now I try to control my dreams.

Let’s wrap up with two quotes.

The first from Eugene Ionesco:“Ideologies separate us. Dreams and anguish bring us together.”

The second from Eleanor Roosevelt: “The future belongs to those who believe in the beauty of their dreams.” Steven Mayo is a Vice President, Director, and Investment Advisor with RBC Dominion Securities Inc. (Member — Canadian Investor Protection Fund). This article is not intended as nor does it constitute investment advice. Readers should consult a qualified professional before taking any action based on information in this article.

ask the experts Employing An Architect’s Vision To See Your Dream Space

By Dave Halliday

Perhaps you are considering building from the ground up or giving your existing residence a major overhaul. One thing is certain, it will be a complex and involved process and as usual it is best left to the professionals.

More often than not the first steps associated with creating the castle of your dreams involves envisioning the project, deciding what you desire, and developing the plan.

I wonder how many of us can close our eyes at this moment and imagine the home of our dreams.

My guess is most of us cannot, but you would know it if you saw it!

This is where the services of a qualified architecture firm can come in and take your ideas from dreams to reality. We at Biz X were fortunate enough to be able to discuss the services an Architect can provide with Brad Smith, President and Founder of Felix Culpa Architecture & Development Ltd. (FelixCulpaArchitecture.com)

Smith has over 15 years of experience and has led projects from tiny homes to universities. He began the business when the pandemic hit in March 2020 after being laid off due to the USA-Canada border closure. His entrepreneurial dream then became a reality and Felix Culpa was born (a Latin term he translates to “happy accident”).

As a professional Architect what affiliations do

you maintain?“In my case I am a Licensed Architect in Ontario with the Association of Architects (OAA) as well as a Licensed Architect in Michigan with the American Institute of Architects (AIA),” notes Smith. “I am also a Windsor Construction Association Board Member.”

What are some of the reasons one should utilize the services of a professional Architect?

He replies: “An Architect comes with years of specialized education and training in design, construction and management. Architects, of course, as professionals, work within strict ethical standards.”

As shown in this rendering, the Scandinavian detailing of this new addition pays homage to the existing mid-century modern home, while also rearranging the space to better suit the home owner’s lifestyle.

Are there other benefits to retaining an

Architect for one’s project? “Architects have working relationships with municipalities, helping projects get approved at any level, whether it be zoning or building permit related,” states Smith. “As a full service architectural firm, Felix Culpa Architecture leads, directs and coordinates with all other necessary services and consultants to obtain a complete design package that can be permitted and built upon.”

How can an Architect assist a homeowner in the plan/design of an addition, renovation, or new

build? “An Architect’s main objective is to design a space that works for the user (owner),” Smith explains. “Through experience and knowledge of standard design practices, Architects are highly skilled at designing plans that function the way people live, work and play within the space.”

Does the resident play an active role in

developing the design? If so, how? “Absolutely!” he expresses. “In fact, residents play a critical role in the design phase. Our focus is to design around the residents’ lifestyle, using their likes and dislikes, along with their desires of how they would like their space to feel.” He continues with: “We also like to form long lasting relationships with our clients, which are forged through trust and a mutual respect throughout the entire architectural process.”

During the development of a project of any size, what are the main considerations for

an Architect? “To enhance the lifestyle of the occupants as projects are created, based on client’s wants and needs, and it is our job to make the space function to the best of our ability,” says Smith. “They say the devil is in the details and construction documentation is an area where Architects can set themselves apart by providing detailed drawings to ensure the construction is at the highest quality.”

How involved is the Architect during the

construction phase of a given project? “Clients often think of an Architect’s involvement at the design and permitting phases,” he states. “However, at Felix Culpa Architecture, we make ourselves involved with the construction phase on all projects regardless of size. As such, Architects can manage any issues by working with contractors to ensure the design is followed through with quality construction.”

What should be the expectation of the client and an Architect upon completion of a project?

“At Felix Culpa Architecture we are looking for a happy client,” emphasizes Smith. “Both the client and the Architect should feel proud of the project, with an excitement to show it to the world! To achieve this level of satisfaction, Architects should work with integrity at every level for a final product that stands the test of time, both aesthetically and sustainably and that is admired for years to come.”

Well, we have to admit that we are still not settled on the overall look and feel of the conceptual Biz X magazine world headquarters! I myself am lobbying towards an open concept with slides instead of stairs!

One thing is for sure — when we do decide to break ground on it, whether it be a 100 storey office tower or renovated space within one of our homes, we will begin by reaching out for the professional services of a qualified architectural firm.