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www.albertaisenergy.ca Alberta is Energy showcases the men and women of Alberta, their careers, challenges and accomplishments. Our goal is to build awareness of how the energy industry touches all of our lives. Alberta is Energy is supported by Alberta’s business associations and our more than 3,500 members. We are Albertans – from the high-rise office workers to the general store employees – with a vested stake in the long-term responsible development of Canada's oil and gas resources.
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Contents PUBLISHERS
Tim Ottmann & Pat Ottmann
EDITOR
Derek Sankey
Volume 22 • Number 8
On our cover… John Gibson, CEO of Tervita
COPY EDITORS
Lisa Johnston & Nikki Mullett
CONTRIBUTING DESIGNER Kenji Doshida
ADMINISTRATION
August 2012 $3.50
Jessi Evetts jessi@businessincalgary.com
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Art Director
Nancy Bielecki nancy@businessincalgary.com Jamie Chell jamie@businessincalgary.com
REGULAR CONTRIBUTORS Richard Bronstein Frank Atkins David Parker Lonnie Tate Mary Savage
THIS ISSUE’S CONTRIBUTORS Michael Doucette Heather Ramsay Robyn Bews Paul Paynter Randy Williams
PHOTOGRAPHY
Cover photo courtesy of Ewan Nicholson Photography Inc.
ADVERTISING SALES
Carla Wright carla@businessincalgary.com Bobbi Joan O’Neil bobbi@businessincalgary.com Brent Trimming brent@businessincalgary.com Evelyn Nykyforuk evelyn@businessincalgary.com Rachel Katerynych rachel@businessincalgary.com Hayley Sands hayley@businessincalgary.com
DIRECTORS OF CUSTOM PUBLISHING
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The Integrator Tervita CEO John Gibson has made a career out of successfully merging corporate brands into a single new, powerful identity
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• Construction • Alternative Energy • Calgary Head Offices
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Cover 27 • The Integrator
Tervita CEO John Gibson has made a career out of successfully merging corporate brands into a single new, powerful identity By Derek Sankey
This Month’s Features 33 • Construction Industry Goes High-Tech
Sector embraces next generation ‘BIM: Building Information Modelling’ By Michael Doucette
40 • Practically Green: Wind, Solar Options Make Going Green Affordable and Practical Electricity and alternative energy providers move to offer new options to average consumers By Derek Sankey
View our electronic issue of this month’s magazine online at www.businessincalgary.com
6 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Midsize businesses are the engines of a smarter planet.
Papa Gino’s restaurant is earning a bigger piece of the pie. This Boston-based pizza and sandwich chain deployed IBM business analytics software to increase both the size and frequency of orders.
VCC built a new client base. VCC leveraged an iEnterprises smartphone-enabled CRM solution and a range of IBM products as a platform for dramatic business transformation and a 40% increase in sales.
Gruppo Intergea drives data theft away. This midsize Italian car dealership uses a behaviour-based platform to enhance security.
Sun World is harvesting insights from collections of data. Sun World International was able to transform data into insights to reduce labour costs and improve harvesting efficiency.
Gramo A/S is rewriting the book on energy solutions. Bookbinder Gramo A/S and IBM Business Partner GridManager created a virtual power plant to dramatically reduce energy costs and improve competitiveness.
GSMS is curing the drug industry. To combat the growing threat of drug counterfeiting, GSMS was a pioneer with drug track and trace capability that has set the standard in the industry.
Today’s innovation originates from more sources than ever before. When you look at emerging opportunities, you might think they only apply to large enterprises – in reality, midsize companies are the engines driving economic growth. Here’s why. Midsize and smaller companies represent 90% of all businesses and employ over 90% of the world’s workforce. They’re even responsible for about 65% of global GDP. On top of this, they produce more patents and innovations per employee than larger firms. IBM and our Business Partners work with thousands of midsize companies around the world to build a smarter planet – one that’s instrumented, interconnected and intelligent. Together, we create affordable solutions to improve efficiency and accelerate ROI by applying our breadth of experience gained from working with innovators around the globe. As our planet becomes smarter, midsize businesses will wield the influence that once belonged to large enterprises. And IBM and our Business Partners will turn their visions into reality. Learn more about the engines of a smarter planet at ibm.com/engines/ca
Join the conversation. twitter.com/MidmarketIBMCA
IBM, the IBM logo, ibm.com and Smarter Planet are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. © IBM Corporation 2012. All rights reserved.
Contents
Volume 22 • Number 8
(This Month’s Features cont’d)
40
61 • Embracing Your Personal Style
More Calgarians are embracing their personal style and enhancing the way they dress for success Heather Ramsay
65 • Head Office Feature
It’s fair to say that in recent years, Calgary has gone beyond the need to assert itself as a place where head offices want to locate. The action is here, and so are the head offices. By Business in Calgary Staff
78 • Technology Headaches Solved
Code Excellence is breaking new ground in the technology world by fixing problems before they happen By Michael Doucette
88 • Marketing Via Golf
Leveraging golf as a strategic marketing tactic gives businesses a longer drive and greater return Heather Ramsay
Company Profiles 45 • ZR Auto
61
Canada’s Finest Sports and Exotic Car Care Facility
83 • Integrated Pipeline Projects Pipelining for 15 Years… in Any Terrain
78 Regular Columns 10 • One Hundred Years – and Way Cool By Richard Bronstein
12 • The Taxicab Problem By Frank Atkins
14 • Lessons In Life By Lonnie Tate
93 • Leading Business 97 • The Calgary Report
Current developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary
102 • Marketing Matters By David Parker
8 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
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One Hundred Years – and Way Cool • Richard Bronstein
By Richard Bronstein
One Hundred Years – and Way Cool
I
f you pay any attention to urban trends in North America, you’ll know that one of the hot topics is the concept called public space. The term public space has different meanings, but generally it means places where members of the public can come together for culture, recreation or any activity except work. In design and planning terms it can include parks, cultural facilities, recreation spaces, civic plazas and that sort of thing. The idea of developing public space is meant to recognize that healthy urban environments are more than the sum of our housing, transportation, places of work and other infrastructure. The city is sort of like a living organism that needs constant interaction of people to produce healthy, well-balanced lives for its inhabitants. All the top urban planners talk about this today and schools of design make this a major emphasis in their seminars. There are many examples of this new kind of thinking. Perhaps one of the most striking is in New York City where planners converted an abandoned elevated transit line into a promenade with parks and other green amenities. A very cool idea. Well, here is another cool idea and it’s taking place in Calgary. It’s called the Calgary Stampede and if it isn’t one of the most successful executions of the idea of urban public space then I don’t know what is. Yes, on the surface it’s a rodeo, chuckwagon races, midway, grandstand show and farmers fair. But really when you parse down all these activities, what it amounts to is that the Calgary Stampede is perhaps one of the greatest continuing urban festivals in North America. When you get more than one million people rubbing shoulders together over 10 days in a city of just over one million people, you have achieved what all the gurus of urban planning want to promote through the concept of public space – interaction and social cohesion. Even better is when you can get those one million people to step out of their ordinary lives and publicly act out the fantasy of living in the mythological cowboy past. Isn’t that one of the definitions of art – to suspend disbelief and to visit the world of imagination? 10 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
The Stampede also serves the greater social purpose of integrating Calgarians. Newcomers, people from diverse cultures and races, the young and the old, men and women, and whatever background and experience people carry with them, the Stampede helps bring them together in a fun, fair and safe way. Sure, the Stampede can be a bit corny and white bread at times and there is some lingering controversy over the legitimacy of rodeo, but I don’t think these minor criticisms make a dent in the bigger picture that the Calgary Stampede is an enormous social and cultural asset to the city. (And not an insignificant economic asset as the Chamber of Commerce pegs its value at about $175 million annually.) A lot of Calgarians know this already. Now a lot more Canadians know it as well. One of the good things about reaching a 100th anniversary milestone is the media pays some attention. This year all the national media – CBC, CTV, Globe and Mail and others – have been fulsome in their recognition of the Calgary Stampede. And not just the usual fluff like “ain’t it colourful,” and “those pancake breakfasts are sure swell.” There was some intelligent coverage and serious essays about the meaning of the Calgary Stampede in the context of overall Canadian culture. There is also a fortunate coincidence that 2012 is Calgary’s year of being the cultural capital of Canada – a year to showcase some of the other events and talent that contribute to the richness of life in our city. The rodeo is not for everyone and I can respect that. But it’s time that those who define culture in Canada show more respect and appreciation for what is the largest, most successful urban festival in the country. For all those who downplay the Stampede, I am sure if they could develop a festival or event half this energetic and lively, they would seize it in a moment. So what is old is new again. Our celebration of western heritage, our yee-hawing and the smelly mud on our boots, turns out to be on the cusp of leading urban design theory in North America. And it wasn’t invented by PhDs, but by people who make their living off the land. BiC
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The Taxicab Problem • Frank Atkins
By Frank Atkins
M
y colleague Mark Milke of the Fraser Institute recently publicly discussed some work that he has been doing on the cost of taking domestic airline flights in various countries. Not surprisingly, Canada was one of the more expensive countries to fly around. I say not surprisingly because Canada has restrictions on how non-domestic airlines can fly in Canada. For instance, you can fly United Airlines from Calgary to various U.S. destinations, but you cannot fly on United Airlines, or on any foreign carrier, from Calgary to another Canadian destination. In Europe this restriction is not imposed, and it is much cheaper to fly to and from various European destinations. Of course, the reason for this is government policy. It appears that whenever a government policy is implemented, we never think very hard about the ramifications of the policy. Canada’s domestic airline policy likely comes from a decades-old desire to preserve Air Canada. However, the ramification is that consumers of airline services are worse off because of this policy. Conceptually, this is the same problem that is pervasive in supply-management situations, such as marketing boards. This problem with airlines in Canada got me thinking about a more local problem: the taxi industry. The year 2012 marked the 100th anniversary of the Calgary Stampede, the weather was good, and the crowds were very large. From almost day one, a general theme
The Taxicab Problem The year 2012 marked the 100th anniversary of the Calgary Stampede, the weather was good, and the crowds were very large. From almost day one, a general theme began to emerge in the press: when it came time to go home, taxis were in short supply. began to emerge in the press: when it came time to go home, taxis were in short supply. This led to the usual illfocused discussion concerning how there is only a shortage of cabs during special events such as Stampede and the Christmas party season, and the rest of the time there is an adequate number of taxis, so everything is fine. Further, city officials jumped in and said that, of course, they will look into this because they have the best interest of consumers in mind. What city officials neglected to say is that they caused the problem in the first place. The taxi industry is subject to municipal government policy. City hall essentially controls the number of cabs. So this policy then benefits the taxi companies, at the expense of the taxi consumers, such as you and me. It is my opinion that this is a very poor way to run municipal government policy. This is the Air Canada problem on a smaller scale. If competition is restricted, the existing taxi companies will benefit, and consumers will suffer. Therefore, the argument for restricting the number of taxis is driven by a
12 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
desire to protect the taxi industry at the expense of consumers. It is worth thinking about the consequences of lifting the restrictions on the number of taxis. I am certain that there are plenty of individuals out there who would like to operate a taxi. This is why there is an underground industry of illegal taxis, which city hall aggressively attempts to eradicate. This increased supply of taxis would drive down taxi fares and eradicate long wait times. Certainly the possibility exists that too many taxis would enter the industry. Apparently this is something that city officials are obsessively worried about. In this instance, some cabs would have to go out of business. However, in this situation private individuals will have made decisions about the viability of the industry rather than city hall imposing a solution at the expense of consumers. Think about this the next time that you cannot get a taxi. BiC Frank Atkins is an associate professor of economics at the University of Calgary and a member of the Advisory Board of the Institute for Public Sector Accountability.
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Lessons in Life • Lonnie Tate
By Lonnie Tate
Lessons in Life
U
nlike old dogs, old guys can still learn some things. I’m 67 and I continue to learn … here are three recent examples. As this is written, my wife and I are winding up two summer weeks in the Palm Springs desert. The high has never been less than 100 degrees Fahrenheit; the maximum 111 degrees. There has only been one day with clouds in the sky and that was the only day of any appreciable humidity. The locals complain this is their worst weather. I have learned that 110 degrees Fahrenheit is a lot better than 30 below (either Celsius or Fahrenheit). Having to wear only shorts and a golf shirt for two weeks is way better than wearing three layers of clothing, mitts and a toque (sock-hat to the Americans). Golf at 7:00 a.m. (played in three and a half hours), sitting in the afternoon shade and enjoying evenings on the patio are much preferred to shovelling snow. If you get a chance, the California desert in June and July is very good. I’ve been in California to deal with business matters of my condo association … I am on the board of directors. While it is trite to say the laws here are different than in Canada (and they are), I have learned the real difference is the manner in which they are applied. The stuff you see on the plethora of American lawyer television shows is rooted more in the application of their laws rather than in the laws themselves. I’ve recently been deposed in a civil matter in which my condominium association has a tangential relationship. We are not named in the action. Seeking my testimony in a session for which I was subpoenaed had little to do with any facts I could bring to light. Much more, it was a tactic by one of the parties that was (in some ways) encouraged by the other party. A fellow board member was also deposed. Heaven only knows where all this will lead. The real point: three attorneys (ours and two who were really involved in the matter) and a court reporter were engaged for the day. At least $3,000 of economic activity was added to the business system of California. I’ve learned that this American system of justice is not for the faint of heart. As a columnist for this magazine, I get a fair number of requests for advice that I almost always
14 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
decline to give. The advice I do give is find someone competent to understand all the issues you face. In particular, find someone who understands the law as it is applied in the jurisdiction in which you choose to work or live. And now to a much more important lesson in life. I have learned that playing golf with a bunch of guys who do not follow every little golf rule to the “nth” degree is much more important than participating in the game with people who follow the far-too-rigid alternative. Arnold, Jack and Tiger play on pristine golf courses and seldom face the adversity my guys face. While our place is pretty good, there is still the occasional rough edge. And so if your ball is in a divot mark, you get to move it. If there is a little tree in the way, move the ball a little … after all you would not want to damage the tree. “Give-me”s inside the leather are mandatory … even if it is for a birdie that will automatically win some money. Did I say money? It is only for a dollar and no one much fusses. Best of all, I love the observation often quoted by the leader of the group: “If you don’t cheat, you are only cheating yourself.”
Women know that the rules of golf were handed down to Moses when he was on the mount. I am sure he lost them and women found them. I have also learned that if you are a woman golfer, you will never get to play by these rules. Women know that the rules of golf were handed down to Moses when he was on the mount. I am sure he lost them and women found them. Now, the only way they can avoid permanent purgatory and damnation is they must follow the rules to the “nth” degree. Like the American legal system, they know the application of the rules and various interpretations is far more important than the purpose of having rules. BiC
investor |ĭn-vĕs’tər| n.
1. Committing time and resources today to gain benefits tomorrow 2. Helping people reach their full potential by contributing to their development at every stage of life 3. Imparting qualities and strengths on people through access to knowledge, learning, and ideas 4. One who contributes to a community for short and long-term gain 5. The Calgary Public Library
Off The Top • News
Blue Sky Energy donates UCM to Calgary pilot project Solar product manufacturer Blue Sky Energy recently announced that it has donated its Universal Communication Module (UCM) to a critical Wi-Fi pilot project in Calgary. Students at the School of Information and Communications Technologies (ICT) are employing the UCM in a solar-powered communications system that will supply phone and Internet connectivity for emergency response, geological survey and remote residential applications. “Blue Sky Energy sees a pressing need to spark and sustain boundless local and global conversations and employ clean technology to serve the common good,” says Melanie Cullen, Blue Sky Energy vice president of marketing and operations. ICT students are mentored by Calgary prototyping lab Protospace, a local incubator for innovative technology ideas, and Think Energy, a renewable energy consultancy. Darryl Kaminski of Think Energy hand-picked the “perfectly fitted and uniquely qualified” maximum power point technology or MPPT-compatible communication module for this project. The UCM’s optimal durability exceeds the rigorous demands of operation in Calgary’s harsh climate. Additionally, the resilient, military-certified unit shoulders extreme operating conditions without any downtime failure.
16 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Ben Reed of Calgary Protospace
Protospace director, Ben Reed, states that “traditional networks with similar capabilities are extremely costly, sluggish and exclusive, available to Internet service providers only. We aim to remove these barriers of entry so that they can be deployed and operated by someone with little training in several hours.” The travelling device, born on a SICT campus rooftop, is currently stationed in nearby Heritage Park and will soon launch as a mobile museum exhibition touring through Canadian festivals this summer. BiC
It started with a vision... It started with Prairies
SCOTT TANNAS Western Financial Group
SCOTT TANNAS
Then and now
S
cott Tannas spent most of his childhood growing up in High River, Alta., except for two years spent in Uganda while his parents served with the Canadian International Development Agency. After coming home to Alberta, he worked many jobs before getting into the tourism industry at the age of 26, working at the Banff Springs Hotel. He had already attended Mount Royal College (now Mount Royal University) and the University of Calgary. He always knew he wanted to start up his own company. Now it was a matter of what. After working side jobs as a disc jockey and at a hardware store, along with his main job in the tourism business, he had saved up enough capital to launch a company. He purchased Hi-Alta Agencies – a well-known local, High River insurance firm that had been around since 1905 – and renamed it Western Financial Group when he rebranded it in 1996 after first investing into the tiny firm in 1993. By 2001, Western Financial Group’s insurance division, WFG Agency Network Inc., had already become the biggest broker network in Western Canada. He created another division, Bank West, and went on to become the 2003 Ernst & Young Entrepreneur of the Year in Professional and Financial Services for his efforts. He also learned a lot from his father, Don Tannas, who was a member of the legislative assembly of Alberta and the deputy Speaker of the Alberta legislature. He dabbled in politics when he became the campaign manager for Ken Hughes in 1993 and was himself a candidate for the Progressive Conservative Association of
a vision... every public institution within reach of its community, and is well on its way. He is also a board member of SOS Children’s Villages Canada. His business model is as authentic as they get. “Because we live here” is both his own personal philosophy and the company’s guiding value proposition. Truthfulness, fairness, value and loyalty are the key values that drive the firm forward as it continues on its ambitious expansion plan to become “the strongest financial institution in the West by 2020,” he says. It’s on a promising trajectory. In 2011 alone, Western Financial Group acquired eight insurance and financial services companies for about $16 million. The company increased its revenues in 2011 by $32 million. Life is good for Tannas, who enjoys building a company on a business strategy that emulates one of his role models, Sam Walton, the founder of Walmart. Tannas is a true entrepreneur who turned a small-town vision for success into big-time reality. Just as Walton started out his retail empire by acquiring five dime stores in rural communities, Tannas eventually returned home to begin building his own empire, piece by piece. The journey continues and there’s sure to be more lessons learned along the way for budding young talent and like-minded entrepreneurs. If, as Tannas predicts (and it appears he’s going to deliver), Western Financial Group really does become “the strongest financial institution in the West by 2020,” nobody should be surprised.
Who will soar? See who’s taking business in the Prairies to new heights at the 19th annual regional awards gala, 11 October 2012, where we’ll reveal the winners of the world’s most coveted business awards. Learn more at ey.com/ca/EOY.
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Alberta in the 2012 Senator-in-waiting elections. He’s due to be appointed to the Senate following the retirement of Senator Joyce Fairbairn in 2014. Throughout all of Tannas’ endeavours, he has demonstrated a commitment to build a company that goes against the “super store” approach to insurance and financial services offerings. Today, the CEO of Western Financial Group has built a company with $261 million in annual revenues and 1,500 employees operating across Western Canada. More recently its foray into Victoria is part of the firm’s B.C. expansion plans. On April 15, 2011, the previously publiclytraded Western Financial Group was acquired by Quebec-based Desjardins Group in a $440-million transaction. In 16 years, after initially going public to reverting back into a privately-run company, its stock price rose more than 1,400 per cent. Tannas had the foresight to integrate the various corporate entities into one brand in 2009 under Western Financial Group. It has three core businesses of insurance brokerage, life insurance and banking investments. Tannas is committed to delivering the kind of local, personal service that the big banks can’t manage in rural towns and communities. He’s part of the community – they’re his friends and neighbours – and he volunteers regularly with organizations including his establishment of the Western Communities Foundation (in 2001) to fund local community projects. It’s now working to put defibrillators into
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Off The Top • News
Calgary International Airport Construction Update for Stakeholders - Q2 2012 Airport Development Program (ADP) The Airport Development Program (ADP) is in full swingand continues to run on schedule and on budget. The ADP’s two main projects, the new parallel runway andthe addition of a new concourse to YYC, is the largest construction project in the Authority’s history. Here’s what’s new since the last ADP update.
Runway Development Project (RDP) Despite the wet conditions, good progress has been made in the removal and placement of earth, installation of deep utilities and construction of underpasses for the new runway at YYC. Over 87 per cent of 7.5 million m3 of dirt for the runway and taxiways have been relocated and crews have now started moving dirt for the new Central Deicing Facility (CDF). The central deicing facility will allow for aircraft to deice in a central location, allowing efficient traffic flow of aircraft during the challenging winter season. Next time you depart from YYC, look way down to see the runway and taxiways taking shape: Construction of the airport’s two underpasses continue: • Taxiway Romeo base slab (8 inch cement stabilizing base) is complete with 1/3 of the wall and roof sections complete • Taxiway Juliet base slabs and utilities construction are in progress - Over 14 kilometres of storm pipe has been installed to date - Over 230 crew members are on site working on the run way project
International Facilities Project (IFP)
Taxiway Romeo underpass
20 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Construction of the new International Concourse is well underway and there has been excellent progress on the new addition to the YYC terminal building. The new concourse
Off The Top • News
• A staggering 42,000 m3 of concrete has been placed (almost 50% of the total concrete) • To date, 395 foundation piles have been drilled and placed • Over 425 geothermal holes have been drilled (75% complete overall) • Structural steel installation began in July 2012 • Crews are installing precast concrete columns • Construction of the IFP remains on schedule for October 2015 operation • A sixth tower crane will be installed and operational in Fall 2012
Other Project Updates
is starting to take shape, with all areas and levels under construction and concrete columns standing tall on the YYC skyline. The new concourse will double the size of the current terminal building and be home to all international and US bound traffic at YYC. • Building excavation is complete – 470,000 m3 of mate rial was removed • Over 20,000 tons of gravel have been placed as the base for flooring
The Airport Trail Tunnel Project The City has advised that as of July 9, 2012, 50 per cent of the tunnel sections have been poured and the project is on schedule and within budget. A portion of the tunnel is scheduled to be turned over to The Calgary Airport Authority on August 31, 2012. The Nav Canada Control Tower The Nav Canada Control Tower is getting taller! Next time you visit YYC, look at the tower as it nears completion. The next step in construction is the assembly and placement of the control tower cab, where the Air Traffic Controllers will manage the airspace in and around Calgary. BiC
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 21
Awards Gala and Dinner • Leaders of Tomorrow 2012
2012
Leaders of Tomorrow
Honouring Calgary’s visionary business leaders
Event host, Dave Kelly
Leaders and guests enjoying the VIP reception
Mac Van Wielingen, Nora Molina, Regan Davis and Corey McKeown
Leaders and guests enjoying dinner
CONTINUING EDUCATION Leaders and guests enjoying the reception
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Mac Van Wielingen, Nora Molina, Victor Petrovic and Corey McKeown
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22 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
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Awards Gala and Dinner • Leaders of Tomorrow 2012
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www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 23
Awards Gala and Dinner • Leaders of Tomorrow 2012
Mac Van Wielingen, Dave Zimmel, Mike Joseph and Fred Edwards
Mac Van Wielingen, Dave Zimmel, Kim Moody and Fred Edwards
Mac Van Wielingen, Nora Molina, Michael Sikorsky and Corey McKeown
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24 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
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The Integrator • Cover
The Integrator Tervita CEO John Gibson has made a career out of successfully merging corporate brands into a single new, powerful identity By Derek Sankey photos by ewan nicholson photograpyy inc.
W
hen John Gibson was hired on as the CEO of former CCS Corp. in 2010 – an environmental services firm started by the Calgary entrepreneur and high-powered executive David Werklund who he replaced in the top job – there could be little doubt about what was to happen next. Both Werklund and Gibson have developed welldeserved reputations for building careers, and corporate empires, by amalgamating several different brands or business units into a single, new corporate entity with a view to strong growth ahead. www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 27
The Integrator • Cover
Gibson has been working to extend his work permit for Canada, deal with the logistics of staying in Canada, and appears ready to move the company toward an initial public offering (IPO) later this year – if the shareholders want to. After just two years, Gibson successfully took several different operating units of the former CCS Corp. to form the new Tervita Corp., as it consolidated to its new head office in the Palliser South office tower earlier this year. Werklund (who remains chairman of Tervita), meanwhile, has been busy relaunching Phoenix Oilfield Hauling Inc. under his Aveda Transportation and Energy Services Inc. banner, replacing and consolidating six related companies following a series of changes over a year and a half. Gibson is no stranger to the process. He has built a highly successful career and a strong reputation for doing just that. The straight-talkin’ Texan started out in the energy industry with former Gulf Oil, cutting his teeth on the exploration and production side of the business, after earning his bachelor of science from Auburn University and a masters of science from the University of Houston. He quickly rose through the ranks at Gulf Oil, leading a large team of professionals, before the company was acquired by Chevron in 1986. He also did a stint at Halliburton, where his team helped the company take a number of disparate brands and wrap them into Halliburton Energy Services. Prior to joining the former CCS (now Tervita), he took on a job with a medium-sized energy software solutions firm to be mentored by the company’s then-CEO and groomed for the role. In a matter of months, the leader of the Texasbased, 100-employee tech company suffered health issues and Gibson was thrust into the role. “It was a learning experience,” says Gibson, who did every job around the office while there. 28 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
But the tech company suffered the same problem as he’d faced before: there were six or seven CEOs of different business units, so Gibson initiated the change to bring them all into one corporate entity, known as Landmark, because it was the most well-known brand the corporation had in the southern states. That company is now the leader in its field of digital software for the oil and gas industry in the U.S. Today, he’s poised to position Tervita in Calgary to potentially go public later this year in his current role at the helm of the rapidly-growing environmental and energy services leader. “This is a perfect match,” says Gibson. “I take on companies that need to be integrated. I take on companies that have a cornucopia of brands and bring them together. Having done that a few times, I thought it was a huge advantage.” He also had his own skin in the game, buying into a significant amount of equity when he came on board to CCS before it was rebranded as Tervita – a name derived from “terra” for land and “vita” for life. He also saw huge opportunity for growth as the company was coming out of the depths of the 2009 recession, when he says the company (like many in the oilpatch and related services) was undervalued. “There’s no greater time to join a company than when it has a low valuation,” Gibson says. Gibson has been working to extend his work permit for Canada, deal with the logistics of staying in Canada, and appears ready to move the company toward an initial public offering (IPO) later this year – if the shareholders want to. “We are certainly reviewing that as a to-do item,” says Gibson coyly. “We’re preparing ourselves for a potential IPO.
Credit Policies • Business Credit CreditPolicies Policies••Business Business
Don’t Don’tlet letyour yourcustomers customers Don’t let your customers affect affectyour yourcash cashflow flow affect your cash flow Effective credit policies will help your business Effective credit policies will help your business Effective credit policies will help your business anticipate and address creditchallenges. challenges. anticipate and address credit anticipate and address credit challenges. By Abby Miller By ByAbby AbbyMiller Miller
Whether you are in commercial or residential construction, dealing with
statements; applicable references; and record of any pending legal action
applicable Whether youyou are incollection commercial or or residential construction, dealing statements; applicablereferences; references;and andrecord recordof ofany anypending pending legal legal action action Whether are in commercial residential construction, dealingwith with against them. credit and challenges is a necessary part of preserving your cash statements; against credit and collection challenges is aisnecessary part ofof preserving your againstthem. them. credit and collection challenges a necessary part preserving yourcash cash flow. As a contractor, subcontractor or supplier, unpaid accounts receivable flow. As As acan contractor, subcontractor or or supplier, unpaid To keep track of where your finances and cash collections are at, MNP’s you to operate on credit and impair youraccounts ability to receivable get the job done. flow. aforce contractor, subcontractor supplier, unpaid accounts receivable ofofwhere and cash collections are at, cancan force youyou to to operate onon credit and impair your ability toto get the Peter Warren recommends that your cash flow and financial keeptrack track whereyour yourfinances finances and cash collections arestatements at, MNP’s MNP’s are force operate credit and impair your ability get thejob jobdone. done. ToTokeep Warren recommends that flow financial reviewed every month, either internally by and an advisor. “When working on a project, especially larger commercial projects, it’s easy Peter Peter Warren recommends thatyour yourcash cashor flow and financial statements statements are are reviewed “When working onon a project, especially larger commercial projects, it’sit’seasy toworking get behind on tracking incoming payments,” says MNP’s Darren Demchuk. reviewedevery everymonth, month,either eitherinternally internallyor orby byan anadvisor. advisor. “When a project, especially larger commercial projects, easy to get behind onon tracking incoming payments,” says Darren An established written credit policy should outline the terms and conditions “No matter how well a contractor or supplier isMNP’s handling theirDemchuk. finances, to get behind tracking incoming payments,” says MNP’s Darren Demchuk. under whichwritten you willcredit extend credit, as welloutline as any the discounts early delayed collection erodes cash flow.” An should and conditions “No“No matter how well a contractor or or supplier is handling their finances, Anestablished established written creditpolicy policy should outline theterms termsfor and conditions matter how well a contractor supplier is handling their finances, payment, penalties for latecredit, payment and as when will be under which as discounts for delayed collection erodes cash flow.” under whichyou youwill willextend extend credit, aswell well asany anycollection discountsplans for early early delayed collection erodes cash flow.” initiated. Shouldfor you need to pursue collection, a detailedplans collection policy, in That’s why having effective credit policies and procedures are essential to payment, penalties and when will payment, penalties forlate latepayment payment and whencollection collection plans will be writing, is alsoyou important. manage the collection process. It outlines the start ofare the credit relationship initiated. Should need That’s why having effective credit policies and procedures essential toto initiated. Should you needtotopursue pursuecollection, collection,aadetailed detailed collection collection policy, in That’s why having effective credit policies and procedures are essential right through toprocess. the payment and the collection ofthe funds, so you can writing, isisalso important. manage thethe collection It outlines thethe start ofof the credit relationship writing, also manage collection process. It outlines start credit relationship Be Aware of important. the Warning Signs anticipate and address credit challenges. right through to to thethe payment and thethe collection ofof funds, soso you can right through payment and collection funds, you can Be Aware of the Signs Be Aware of the Warningtrack Signs anticipate andand address credit challenges. anticipate address credit challenges. In addition toWarning keeping of your incoming payments, it is important to Know Your Procedures
be aware of the signs that a customer’s late payment is going to become a InInaddition additiontotokeeping keepingtrack trackofofyour yourincoming incomingpayments, payments, itit isis important important to bigger issue. Warning signs may include: A fundamental part of your collection process should be keeping your own bebeaware awareofofthe thesigns signsthat thataacustomer’s customer’slate latepayment payment isis going going to to become become a accounts receivable and statements up-to-date. “It’s important to regularlybigger bigger issue. Warningsigns signsmay mayinclude: include: issue. Warning • Frequent late payments A fundamental part of your collection process should keeping your own A fundamental ofaccounts your collection process should bebe keeping your monitorpart your and address possible issues as soon as theyown arise,” • Changes in payment patterns accounts receivable and statements up-to-date. “It’s importanttotoregularly regularly • • Frequent late payments accounts receivable and statements up-to-date. “It’s important says Demchuk. • Frequent late payments Partial payments monitor your accounts and address possible issues soon theyarise,” arise,” monitor your accounts and address possible issues asas soon asas they • • Changes in payment patterns • Changes in payment patterns Excuses, including “the cheque is in the mail” says Demchuk. says Demchuk. It is also good practice to develop customer profiles that may include: • • Partial payments • Partial payments Avoids or non-return of phone calls their corporate structure; how long they’ve been in business; net worth • • Excuses, including “the cheque is in the mail” • Excuses, including “the cheque is in the mail” Liens filed on the project is also good practice develop customer profiles that may include: It isItalso good practice to to develop customer profiles that may include: • • Avoids or non-return of phone calls • Avoids or non-return of phone calls Rumours of financial or project issues their corporate structure; how long they’ve been business; net worth their corporate structure; how long they’ve been in in business; net worth Liens filed on the project • • Liens filed on the project Rumours of financial or project issues • • Credit and collection challenges are part of working in the construction Rumours of financial or project issues industry. But, you don’t need to let these issues sideline your business and Credit and collection challenges are part of working in the construction erode your cash flow. With the right policies and procedures, and a little due Credit and collection challenges are part of working in the construction industry. But,you youcan don’t needto toidentify letthese these issues sideline your business and diligence, effectively and address theseyour issues as theyand come industry. But, you don’t need let issues sideline business up—working through them toright keeppolicies your business running as and efficiently, erode yourcash cashflow. flow.With With the right policies andprocedures, procedures, and littleand due erode your the and aa little due profitably, ascan possible. diligence, youcan effectivelyidentify identifyand andaddress addressthese theseissues issues as as they they come come diligence, you effectively up—workingthrough throughthem themto tokeep keepyour your businessrunning running as efficiently, efficiently, and and up—working Putting the right credit and collectionbusiness policies in place,as and keeping an eye profitably, aspossible. possible. profitably, as on cash flow, will help keep your business running smoothly. To find out what MNP can do for you, contact Peter Warren, CA at and 403.298.8484 Putting theright right credit andcollection collection policies inplace, place, keeping an anor eye Putting the credit and policies in and keeping eye Darren Demchuk, CAkeep at 403.536.5585. Darren Demchuk, CA Peter Warren, CA on cash flow, will help your business running smoothly. To find out on cash flow, will help keep your business running smoothly. To find out Partner Partner whatMNP MNPcan cando dofor foryou, you,contact contactPeter PeterWarren, Warren,CA CAat at403.298.8484 403.298.8484 or or what Darren Demchuk, CA at 403.536.5585. Darren Demchuk, CA Peter Warren, CA Darren Demchuk, CA at 403.536.5585.
Know Your Procedures Know Your Procedures
Darren Demchuk, CA Partner Partner
Peter Warren, CA Partner Partner
The Integrator • Cover
“They hired me to be a great executive – not to change the company. I think we’ve done a pretty good job. We’ve got a fantastic management team. That’s how you’re successful.” ~ John Gibson
In the next three months, we’ll be ready to go. That doesn’t mean we will.” If not, Gibson says he will just continue on the firm’s present aggressive growth strategy. Still, the groundwork is being laid. Right now, the market for IPOs doesn’t look particularly attractive, with too much global uncertainty clouding the economy. There’s continued sluggish U.S. growth, the eurozone debt crisis and political conflicts around the world. “Assuming the market is there, (an IPO) would be an option that’s available to our shareholders,” he says. He sees the “macro market” for environmental services ready on the cusp of massive growth. Just like companies took considerable measures 20 years ago to put a stronger emphasis on the ‘safety’ component of ‘health, safety and environment’ (HSE), Gibson expects the growth in demand for environmental services to follow suit – a trend that will inevitably be here to stay. He plans on positioning Tervita to capture all that action. Tervita is really the culmination of Werklund’s original efforts when he began to see the full potential of bringing the companies together. “This is a vision that I’ve had for years,” stated Werklund upon announcing the collective change to Tervita, “that we should be one brand and one company with one culture.” 30 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Gibson and Werklund seem to think alike. Gibson believes Tervita’s array of services uniquely position it to reap the rewards of a huge potential market. The new corporation, whether it goes public or not, includes fluids, solids and production services, energy marketing and land reclamation. It’s pioneering new technologies in water treatment, tailings management and reclamation, among other things. “In the next five years, your environmental officer for a corporation will be as critical as your chief safety officer, your chief financial officer, your chief operating officer,” says Gibson. The private company currently has more than $5 billion in assets and a combined workforce of about 4,600 employees (an increase of 2,000 in two years under Gibson’s leadership), gained through a combination of organic growth and acquisitions. The companies that were brought into the Tervita brand include: CCS Corp., Beck, Hazco, HMI, Lionhead, Midstream, Normcan, Prodrill, Peninsula Waste Water Services, Concord and a few smaller firms. It was executive search firm Korn/Ferry that called him one day out of the blue asking Gibson who he thought would make a good CEO for the predecessor company. He
The Integrator • Cover
suggested himself and before he knew it, he was living in Calgary and overseeing a massive corporate reorganization. He admits there are different business styles between the U.S. and Canada that initially took some getting used to, but he feels right at home now. “Canada is very nationalistic,” Gibson says. “Canada likes to do business in Canada. It doesn’t matter where you’re from, (Canadians) just like to have the decisions made, and the access to the decision-makers, in Canada.” He also sees great value in having travelled the somewhat unconventional career path he’s taken. Some people thought it was a step backwards when he took the role at tech company Landmark – a relatively small team of people compared to the large departments he oversaw at Chevron. It illustrates the strong entrepreneurial flair that’s intrinsic to Gibson’s character and style as a leader. “You get so many executives who grow up in companies and go all the way to the top through the departments and never really run a complete business – the sales, the marketing, accounting, finance, HR,” says Gibson. “It looked like a step backwards (but) it was a fantastic experience.”
These days, he’s continuing to build the culture of the company. With his trademark southern drawl and confident yet relaxed air, Gibson describes a company whose services will be critical to the future development of the Alberta economy – one that is tracking more broadly across North America and emerging markets. To compete in this burgeoning global sector will require scale and consistency. “Small startups are not necessarily a great strategy on the environmental side because what you want is a large enough balance sheet to take care of this waste and give (clients) confidence that in the future, they’re going to be able to manage it if there’s any problem with it,” he says. As for his own future, he’s clearly passionate about seeing his current role through. An IPO could be around the corner, but Gibson isn’t in a rush to get there until the timing is right, if at all. His job is to get the company’s house in order and get on with growth. He’s focused on embracing the culture of the new company. “They hired me to be a great executive – not to change the company,” Gibson says. “I think we’ve done a pretty good job. We’ve got a fantastic management team. That’s how you’re successful.” BiC www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 31
Construction Industry Goes High-Tech • Construction
Construction Industry Goes High-Tech Sector embraces next generation ‘BIM: Building Information Modelling’ By Michael Doucette
I
n 2002, Phil Bernstein, a vice president at the $2-billion design and engineering firm Autodesk and a lecturer at Yale University’s School of Architecture, helped the global company that pioneered AutoCAD – the technology that revolutionized the drafting world as the industry standard – coin the term “Building Information Modelling,” or BIM. As an early adopter of this suite of technologies that is now revolutionizing the construction industry, Bernstein had the foresight to see how BIM would transform the architecture, engineering and construction sectors. Just like AutoCAD was a game-changer for the drafting world, BIM is quickly emerging as the industry standard for entire professions in the construction sector in its broadest sense. “The implementation of (BIM) is taking on a lot more importance now,” says Faisal Arain, the academic chair of construction project management and civil engineering technology at SAIT Polytechnic. “You integrate all stakeholders
32 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
of the project so they can actually interact on a (3D) model.” SAIT is at the forefront of the trend. Last fall it launched its bachelor of science in construction project management degree that focuses on training students in the latest BIM technologies and techniques. Many of the students coming out of technical schools and architecture and engineering universities today can’t even recall a time when buildings were conceptualized and developed with pen and paper. “In the traditional path, there wasn’t a particularly strong link among all of the different professionals,” says Arain. “This process automatically brings all of them together on the project.” Autodesk, meanwhile, is working with top design institutions across the world to ensure students are trained in the technology to hit the ground running when they graduate. Using BIM allows designers, architects and engineers to identify things like energy efficiencies early on in the design process, meaning
Construction Industry Goes High-Tech • Construction
Many of the students coming out of technical schools and architecture and engineering universities today can’t even recall a time when buildings were conceptualized and developed with pen and paper. corrections can be made in the conception phase of a construction project rather than during construction. “This system identifies those conflicts through ‘conflict detection’ and gives you all of the conflicts at the conception stage where you can look into the model and see which component of the building is in conflict with other parts of the building,” says Arain. SAIT’s new degree program, which is starting its second
intake this fall, already has a waiting list of more than 30 students. It will help train the next generation of badlyneeded project managers, says Larry Rosia, dean of the School of Construction at SAIT. “It’s going to fill a void of project managers in the construction industry,” he says. “Given the demographics and how busy this industry is getting, that person has normally come through the ranks and learned a lot of it on the job.” www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 33
my
my
CAREER COMMUNITY my
LEGACY Now hiring Construction Professionals PCL.com/careers
Giving back to the community is ingrained in the company’s culture. As a result, PCL focuses philanthropic efforts in the areas of community development, health, education, and sustainability. PCL employees believe we are making a difference in Calgar y.
Construction Industry Goes High-Tech • Construction
What is BIM? Building Information Modelling (BIM) consists of a suite of technologies that allow architects, engineers and designers to collaborate through the entire life cycle of any construction project. It spans the generation and management of digital representations of the physical and functional characteristics of a facility. The models are shared in real time so modifications and decisions about a facility’s progress is monitored and accessed more easily, from the early conceptual stages to design and construction to its operation ongoing. A recent SmartMarket Report noted that BIM is being used for a wider variety of projects and is being used more commonly. It has become the industry standard in training schools. Similar to AutoCAD in the
world of drafting, BIM is transforming how buildings are conceptualized, built and maintained, including infrastructure projects. According to the report, “Business Value of BIM for Infrastructure: Addressing America’s Infrastructure Challenges through Technology and Collaboration,” about half of the organizations surveyed say they’re using BIM on infrastructure projects, up from 27 per cent just two years ago. The use of BIM on infrastructure projects is poised for growth over the next two years. More than half of the organizations currently using BIM for infrastructure expect to be using it on more than 50 per cent of their infrastructure projects by 2014.
So why should you be considering using BIM on your next project?
1) BIM’s not just for buildings. And honestly, it’s not just for infrastructure, either. As pointed out in “Beginning with BIM” in the July 2011 issue of Site Prep, the BIM model can be used for the whole life cycle of the project, from design through construction. For example, it can be used to provide a higher level of accuracy in estimating earthwork quantities and compare a topography of the work to the model to check quality and accuracy.
3) You think your competitors are using it. According to the report, more than 70 per cent of non-users perceive that their competitors and clients are using BIM.
Sources: McGraw Hill Construction, SmartMarket, Site Prep
36 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
2) BIM experience contributes to higher ROI. According to the SmartMarket Report, more than 40 per cent of users who identify themselves as experts in BIM use for infrastructure report an ROI of 50 per cent or greater.
4) BIM produces better results. Use of the BIM model helped provide progress reports, manage materials and more. With the BIM model, the contractor was able to more reliably predict outcomes.
together Commissioning a
greener future
At CFMS Alberta Ltd., we understand the importance of improving the performance of the mechanical and electrical systems in buildings. We deliver building systems that work, providing a smooth turnover process while reducing long-term energy usage, operating costs and greenhouse gas emissions. Working with owners, consultants, contractors and suppliers, our team is dedicated to provide a commissioning solution that helps to optimize energy performance, while addressing your needs and goals, without compromising quality. Providing independent commissioning services to the construction and building industry; working together every step of the way since 2003.
ToTal Building & lEEd Commissioning • RETRo & RE-Commissioning FaCiliTiEs managEmEnT suppoRT Tel: 403.984.9448 • info@cfms-alberta.com • www.cfms-alberta.com
Y
ou’ve decided that you need new countertops but you don’t know who to call. Jade Stone Ltd. has all of the answers and they’ll make the process a simple and enjoyable one. Since 1997, Jade Stone has been pushing the limits of natural stone manufacturing, making them the educated and ideal choice for countertop production and installation. In celebrating their 15th Anniversary, Jade Stone has a lot to be proud of. From its roots as a small fabricator of cultured marble to its current position of one of Western Canada’s most sophisticated manufacturers of granite and quartz countertops, Jade Stone has always focused on keeping an otherwise complicated process as simple as possible. It is this commitment to simplicity that has been the key to winning the previous 10 Consumer’s Choice Awards for Granite and Marble Dealer in Calgary. This prestigious honour is awarded to the top rated company, based on results and feedback provided from actual customers. It’s an accomplishment that continues to motivate everyone at Jade Stone to provide the utmost in customer service. Perhaps Jade Stone’s commitment to the industry’s best technology is the reason for their success. Consistently providing quality stone in the industry’s most timely manner has become a Jade Stone standard. It might be that you’re carrying the costs of building a new home or you’re just tired of the hassles of renovation. In either situation, Jade Stone understands that time matters. It is that understanding that led staff to create a simple process that takes the customer from start to finish in days not weeks. Starting with the material selection process, Jade Stone has a number of tools that allow the customer to make educated decisions. The large professionally developed showroom boasts huge samples that truly allow customers to see the beauty and characteristics of the stone of their choice. Jade Stone also maintains one of the larg-
www.jadestone.ca
Consistently providing quality stone in the industry’s most timely manner has become a Jade Stone standard. est inventories of material in Western Canada. Viewing this material is also made simple with their digital viewing options. Customers can choose from hundreds of stones all in the comfort of Jade Stone’s showroom and can rest assured that their final decision is the right one after viewing a rendering of their kitchen layout with the material they’ve chosen, prior to the countertops being produced. The production process of a custom product often poses the most questions for customers. Jade Stone’s tremendous team of staff have developed all of the educational tools needed to understand both the potential and the limitations of living with natural stone countertops. This is done in a simple manner so that all of the customer’s questions are answered up front, meaning no last minute surprises. Affordability can sometimes complicate the process but not at Jade Stone. A wide range of prices provide numerous choices for customers with all types of budgets. Jade Stone also offers financing for those customers who want to upgrade their dream kitchen using the benefits and efficiencies associated with a trusted financial institution. Jade Stone would like to thank their wonderful customers and staff for making the first 15 years in business a tremendous success and for their ongoing ability to refine and make simple a process that any customer can enjoy. Contact Jade Stone to see how simple and pleasurable your countertop experience can be.
LETHBRIDGE ∙ CALGARY ∙ RED DEER ∙ EDMONTON ∙ HALIFAX
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Construction Industry... • Construction
The future of construction is BIM. No matter what stage or level of experience, those working in almost any aspect of the industry
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have, will have to become familiar with the (BIM) system.” ~ Faisal Arain
On-the-job training is still a crucial part of the learning process, he adds, but the new degree will help them learn faster and with the latest BIM technology. There are also implications for the skilled trades, since they will have to work with the other stakeholders in the project to understand how BIM will impact a project’s progression toward completion. Canada’s construction sector is the fifth largest of its kind in the world, according to Rosia. It’s one of the reasons Canadian architects, engineers and designers will have to become experts in BIM in order to compete globally – or even locally – as competitors rush to upskill existing employees in BIM, while carefully targeting new recruits that already possess those skills. Trades workers would use a certain layer of the software to be able to install, make changes and to update projects quicker and in real time, he adds. “This sector is looking to technology to keep up with competitors,” says Rosia. “To be successful, especially in the global economy where there’s a lot of competition, technology and tools are really going to help improve productivity in the construction industry.” The future of construction is BIM. No matter what stage or level of experience, those working in almost any aspect of the industry had better get used to it. “Everyone who is involved with a construction project, regardless of what level of involvement they have, will have to become familiar with the (BIM) system,” says Arain. BiC ~With files from Derek Sankey
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www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 39
Practically Green • Alternative Energy
Practically Green:
Wind, Solar Options Make Going Green Affordable and Practical Electricity and alternative energy providers move to offer new options to average consumers By Derek Sankey
D
avid Vonesch is a busy man these days. As a certified photovoltaic technician for Calgary-based SkyFire Energy Inc., he’s got a list of installations for solar panels booked two months solid. SkyFire, launched in 2001, has installed hundreds of home solar panels systems tied directly into the province’s power grid over the past 11 years in Alberta, B.C. and northwestern Ontario, where it recently opened a new office. “We’re crazy-busy just trying to keep up with things just as it is,” says Vonesch. “It’s been fairly high growth. It’s pretty voracious.” The variety of options for homeowners to “go green” by installing an alternative energy system in their homes, including solar panels and residential-scale wind turbines, has increased dramatically in the last decade, just as the price has consistently fallen. Vonesch says the cost of the panels has come down to about one third to one fifth of the total cost of installation, down from three quarters of the cost a decade ago. There’s still a long way to go, though. “It’s still a really small, tiny little market, but it’s growing
40 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
rapidly,” he says. “When people start to realize how much cheaper solar is today than it was several years ago, more and more people are coming on board.” It’s a trend that hasn’t escaped the sights of Enmax Corp. Last winter, it introduced its Generate Choice program aimed at offering consumers home wind and solar options, where they have systems installed on their properties, usually for an upfront cost and monthly leasing fee, and tie those systems directly back into the provincial power grid. Enmax has installed these “turnkey solutions” in 275 homes in Alberta. The company recently marked its 100th install in Calgary. “We see customers getting actively involved in choosing the source their power comes from in the future,” says Helen Bremner, executive vice president of brand and residential markets for Enmax. “How big it is has yet to be determined, but our goal is to create a sustainable industry as an ongoing part of our business model.” Enmax makes money by leasing the solar panels or wind turbines to its customers, with the goal of having about 9000 customers signed up in the next five years, she adds. It’s still a drop in the bucket, at about one per cent of the
10 years
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Practically Green • Alternative Energy
Home Electricity Generation: More options available Whether it’s residential-scale wind power generation or solar panels on a homeowner’s roof, there are more options – at more affordable prices – than ever before available to average business and residential consumers.
WIND POWER What is a Micro-Wind Turbine?
Micro-wind turbines are small-scale wind turbines that convert wind energy into electricity. The micro-wind turbines that Enmax Energy is installing are 3.72 metres in diameter and are mounted on a 10.4-metre pole. How do wind turbines work?
Micro-wind turbines convert wind energy into electricity in direct current (DC) form. An inverter is used to transform direct current output into alternative current (AC) form for usage. The following figure shows a typical micro-wind system. (For illustration purposes only; not actual system) Is My Home Suitable for Wind?
There are a few general criteria that would make your home suitable for the Generate Choice™ Home Wind program: • You own at least half an acre of land, clear of structures, such as houses or trees. • You do not have neighbours in proximity of the prospective turbine site. • You must be the current owner of the property – your name must be on the title. • The turbine must be located at least 6m above any adjacent structure. • You must be located in one of the eligible regions in southern Alberta. Enmax Energy’s Generate Choice Home Wind program has made home wind power generation easy and accessible with low upfront costs and a unique lease option that is the first of its kind in Canada. Special funding from Climate Change and Emissions Management (CCEMC) Corporation helps make home generation more affordable for Albertans. In order to make it accessible to as many people as possible, it offers the following: Initial Fee Monthly Fee End-of-Term Removal Fee
$3,500 $99.99 $950 $2,000
Lease terms vary. At the end of the 10-year lease term, a customer may purchase the equipment for $950, or have it removed by Enmax Energy for $2,000. The down payment and monthly amounts do not include the equipment buyout or removal amounts.
42 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Off-setting Costs: How much energy can a 2.4kW wind turbine produce?
The turbines have a “cut-in” speed of 3.5 metres per second. This means they begin to produce energy when the wind is blowing at 12.6 km/h. With an average wind speed of 3.5 m/s the turbine will produce 180 kWh (kilowatt hours) per month.
SOLAR POWER How do Solar Panels Work?
Photovoltaic (PV) solar panels convert energy from the sun into electricity in direct current (DC) form. The solar inverter is required to convert DC output into alternating current (AC) for usage in your home. The following figure shows a typical solar PV system. (For illustration purposes only; not actual system) Is My Home Suitable for Solar?
There are a few general criteria that would make your home suitable for the Generate Choice™ Home Solar program: • A south-facing roof with more than a 25-degree slope. • Asphalt shingles or a metal roof. • Your roof must be unobstructed so the sun can reach the panels. • Single-family detached home – will be exploring other types of homes in the near future. • You must be the current owner of the property – your name must be on the title. Enmax Energy’s Generate Choice Home Solar program In order to make it accessible to as many people as possible, there are three lease options to choose from:
Practically Green • Alternative Energy
Option 1 Option 2 No Down Payment Low Down Pmt Initial Fee $0 $1,500 Monthly Fee $59.99 $39.99 End-of-Term $350 $350 Removal Fee $950 $950
Option 3 Low Mthly Pmt $3,500 $16.99 $350 $950
The lease term for all three options is 15 years. At the end of the lease term, a customer may purchase the equipment for $350, or have it removed by Enmax Energy for $950. The down payment and monthly amounts do not include the equipment buyout or removal amounts. Off-Setting Costs: How much energy will a 1.3-kilowatt solar photovoltaic system produce annually? In Alberta, a 1.3 kW solar photovoltaic system will typically produce between 1,000 and 1,400 kWh per year. Source: ENMAX Energy
residential market in Alberta, but the concept is gaining traction, says Bremner. People who are buying into the idea aren’t going to save any money up front, due to the initial cost of setting up the systems, but it could pay off in the long term. The lifespan of Enmax’s systems, for example, are about 40 years, with leases expiring long before that, giving customers the ability to hedge for the future. “You’re almost prepaying for some power,” says Bremner. “It’s not a money-saving initiative now. It offsets part of your bill.” Vonesch, meanwhile, says that for such a relatively young industry, some people view it as a way to help stabilize their electricity costs, locking in at about $0.11 per kilowatt hour, “which is a good deal,” he says. “The challenge is the upfront cost.” There are still many myths surrounding solar, Vonesch
adds, such as that they use batteries (they don’t; they are tied directly into the power grid). Some independent electricity retailers, such as Spark Energy or Bow Valley Power, have begun to offer incentives to lure more consumers to these alternative energy systems. Some are offering a premium of up to 200 per cent of the current regulated rate for surplus power generated that goes back onto the grid, he says. It’s clear that as more companies target this segment of the power market, all of the players see a long-term business case for the technology, just as more consumers view it as more than just the “right thing to do.” They see it as a long-term way to be more environmentally sustainable, while potentially saving some money down the road. “It’s about looking at the future power needs of Albertans,” says Bremner. BiC
WHY LEASE? - OWN SOLAR and receive 15 ¢/kWh for energy exported to the grid
S y s t e m s s t a r t i n g f r o m $ 5 0 0 0 - fi n a n c i n g a v a i l a b l e w w w. S k y F i r e E n e r g y. c o m | 403-251-0668
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 43
Zahir Rana, owner ZR Auto. Photo by Ewan Nicholson Photography Inc.
ZR Auto: Canada’s Finest Sports and Exotic Car Care Facility Story by Mary Savage
ZR Auto Grand Opening
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ahir Rana’s passion-turned-business for fast cars is but a dream for most people. He drives the fastest Ferrari Enzo in the world, yet he has never raced professionally. Simply put, he loves to drive fine cars – fast and hard, and he lives life with no limitations. Rally race car fans watched Rana drive a highly-modified Enzo into the North Atlantic last September during the Newfoundland Targa Race. He participated in the event for two reasons: to raise the profile of his business and to raise funds for the Autism Society. On the second last day of the race and after banking a narrow corner, he hit a patch of gravel, the car spun around and within seconds he was headed for the ocean. As he stood on the shore – without injury from the accident – he watched a crew of men hoist the $2-million car from the ocean. The turn of events did not shake Rana’s passion, in fact it was quite opposite: he wanted to modify the car again – making it faster and better – and this circum-
stance gave him the perfect opportunity. The car was shipped to Germany and has spent the last year in the shop – undergoing a transformation that will make the Enzo even quicker! ZR Auto caters to people who have the same passion for driving. “We do extreme car modifications: we transform cars from 500 to 1,500 horsepower. We make crazy modifications that suit the car, but nobody else undertakes this type of work,” explains Rana, owner of ZR Auto. “We have a niche in the market because I’m one of those guys that doesn’t want a normal car. It has to be better, quicker and faster, and my customers want the same thing.” Recently opened in its new location a few blocks west of Barlow Trail on 32 Avenue NE, ZR Auto specializes in enhancing exotic and sports car performance. In addition to modifying performance, they also provide the finest detailing services found in the city. “ZR Auto is the only business of its kind in Canada – the work we do is extreme,” says Rana.
In addition to modifying performance, they also provide the finest detailing services found in the city. “ZR Auto is the only business of its kind in Canada – the work we do is extreme,” says Rana.
Photo supplied by ZR Auto
ZR Auto Grand Opening
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Photo supplied by ZR Auto
The new ZR Auto service department caters both to clients who are in need of basic maintenance and service work and to those seeking a complete transformation of their automobile. The new 16,000-sq-ft. facility is a car enthusiast’s paradise. It includes a lifestyle boutique that carries all of the newest clothing, accessories and novelty items from Ferrari and Lamborghini, an expansive showroom and a service department that includes top-of-the-line equipment for servicing fine automobiles. The new ZR Auto service department caters both to clients who are in need of basic maintenance and service work and to those seeking a complete transformation of their automobile. “A year ago we modified a Lamborghini LP640 for a client giving it the power of an LP750 with a body kit, wheels, tires, brakes and suspension modifications. He spent $350,000 on this modification and has since given us his Maserati for a $600,000 modification. He loves the performance of his Lamborghini and it gave him the confidence to undertake a similar modification on his Maserati,” Rana explains. “He has already put 20,000 miles on the Lamborghini since the modification and is very happy with it,” he adds.
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Rana’s customers seek the best. “My clients never argue over price, but they want five-star service, honesty and integrity. We are always under pressure to do the very best work otherwise they will not come back,” he says. “My clients love their cars and for those who want extreme modifications, they want to be able to drive their cars hard and I deliver what they need.” For exotic car lovers, owning a Ferrari or Lamborghini is the ultimate dream. “Italian cars are the best cars in the world and to own one is a dream. They drive nicer than they look: when you sit in an Italian car that’s fired up, it will give you goosebumps before you leave the driveway!” he asserts with a selfassured passion. “Now, when you make them quicker and better, there are no words to describe that level of pleasure. It’s like any dream: you have to create the dream and follow the vision to get to the destination. I’ve done that my whole life,” he adds.
ZR Auto Grand Opening
Congratulations to Zahir on his Grand Opening! We look forward to working with him for many years to come.
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“I work with the best tuners in the world to twin supercharge Ferraris and twin-turbo Lamborghinis. When I tell my clients this, they question why the factories never do this sort of work themselves,” explains Rana. “I tell them that the factories cater to the average driver; on the other hand, I cater to drivers who are a little more extreme and passionate about their driving experience. I am partnered with the best tuning companies in Germany – they are the experts.” When Rana talks about his business, his aura exudes passion, but he is also humble. His dream has come to life because he followed his vision – not because he was born into a world of elitism. His father was a local merchant and their life growing up in East Kenya was far from glamorous. At the age of 16, Rana moved to England to attend automotive school, became a technician and five years later, moved to Canada wanting to become a mechan-
ic. By now, his father had immigrated to Canada and encouraged Rana to do the same. “When I came to Canada, I brought an Austin Mini (racing Mini) from England. The car was dropped in Montreal and I drove it across the country in three days,” recalls Rana. “I drove to Vancouver and was hired as a pump jockey, making $3 an hour, because no one would hire me as a mechanic – given the misperception that my skills weren’t transferable because of the notoriously small cars I worked on in England.” Between shifts, Rana would sneak into the garage in order to learn more about North American cars and his determined spirit impressed the boss. Eventually he was taken off “pump-duty” and worked in the service department for five years, learning the trade as it is practiced in Canada. In 1983, Rana bought his first Ferrari – when the television show, Magnum P.I., hit the airwaves – and he
Continued on Page 12...
Extreme Modifications and Five-Star Service From small modifications to extreme, ZR Auto is the only shop in North America to offer the best of both worlds. The list of exotic cars that have rolled in and out of Rana’s shop come from all over Canada – a 1500 BHP Lamborghini, the fastest Ferrari Enzo in the world with 950 BHP and the only street legal MC 12 Corsa, in the world, with 860 BHP. Rana has sought the best partners the world over in the tuning business and they include: Super cars Ferrari/Maserati - Edo Competition (Germany) Ferrari - Novitec (Germany) Lamborghini - IMSA (Germany) and Heffner Performance (Florida) Mercedes - Brabus (Germany) Porsche - Techart (Germany) BMW - G-Power (Germany) ZR Auto also provides regular service and maintenance on European models that include Mercedes, Porsche, BMW and Audi. All work comes with a one-year warranty, and he offers the finest in detailing packages from exterior body kits to interior custom finishes like carbon leather, Alacantra and embroidery. Under the hood, ZR auto specializes in suspension and brakes, exhaust sound power, ECU upgrades, superchargers and turbochargers to mention a few. In addition to service and maintenance, ZR Auto offers 3M full-body stone guard, laser and radar installation and bodywork.
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ZR Auto Grand Opening
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ZR Auto Grand Opening
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The new 16,000-sq-ft. facility is a car enthusiast’s paradise. It includes a lifestyle boutique that carries all of the newest clothing, accessories and novelty items from Ferrari and Lamborghini, an expansive showroom and a service department that includes top-of-the-line equipment for servicing fine automobiles. 8
ZR Auto Grand Opening
Photo by Ewan Nicholson Photography Inc.
ZR Auto Grand Opening
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Not Your Ordinary Road Trip Rite-Way Powder Coating 7710 - 40 Street S.E. Calgary, AB T2C 3S4
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ZR Auto’s Car Club takes a “road trip” to a seemingly surreal level. “We usually ship the cars to the starting location and from there we’ve gone to the Maritimes, New Orleans, Montreal – all over North America. We often log more than 2,500 kilometres on a trip like this,” explains Rana, “where your average exotic car owner barely clocks that amount in a year.” “Before these trips, we have organized track events where the drivers can get some instruction on how to drive their car so that they are safer on the road. This is important so that they can become comfortable with the power and handling of their cars in a safe and controlled environment. We also make sure the cars are properly serviced and safe before the trips, particularly when it comes to tires and brakes.” As Rana has noted, these exotic cars can do anything because they are so well balanced and experiencing a road trip with ZR Auto’s Car Club is beyond exhilarating. “It’s a lifestyle choice because these people love to drive.”
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ZR Auto Grand Opening
The Enzo Versus the CF-18 Jet Two years ago, Rana received a call from a colleague with an intriguing opportunity: to race against a CF-18 jet at the military base in Cold Lake, Alberta. The event, Race the Base, was a fundraiser and it was an offer he simply couldn’t refuse. As the plans started to come together, the response was overwhelming. They had 83 participants, most of whom drove their cars to the military base. It was a rare sight to see a convoy of exotic autos rolling north on Alberta’s highways en route to Cold Lake. “On race day, we had 83 cars on the runway and everybody was going top speed,” Rana says. In the end, the CF-18 won – even the world’s fastest Ferrari Enzo was no match for the jet. The jet’s top speed is about 2,000 km/h, so the car took the lead off the mark, but it wasn’t long before the jet was out in front. They raised approximately $100,000 for the four charities involved and according to Rana, they are planning another Race the Base fundraiser in late August 2012. “The Air Force has given me the opportunity to try and beat the jet again and not everyone gets the opportunity to race a CF-18 jet,” he says. “We want it to be a worldclass event.” This year, the funds raised will go to help families in the military. The Enzo will be ready in time for the race – better than new and the fastest Enzo in the world. But that’s not all; he is also modifying a Lamborghini to beat the jet. The Lamborghini’s top speed will be 436 m.p.h. “This is retribution – I need to redeem myself from the 2010 race!” he says with a grin.
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Continued on from Page 6... has never looked back. Today, when you walk around the ZR Auto showroom, the collection of exotic fine cars is akin to a movie set. The showroom boasts an Enzo FXX and a Ferrari F40. The F40 is classified as a “super car” and is considered very rare with few left in the world. There is also a highly-modified, twin-turbo 1,500 BHP Lamborghini Gallardo, capable of a top speed of 436 km/h. Rana focuses on building his business and that means earning the trust of his customers. “Who is going to leave their million-dollar car with me to fix? They love their cars and don’t want anyone to touch them, let alone work on them. But over time, we have developed trust and I never let my customers down,” he adds.
The Targa Rally accident raised the profile of Rana’s business well beyond Western Canada, which has always been ZR Auto’s primary market. “I now have customers from all across Canada because of this new exposure,” Rana explains. The media coverage was worldwide and the video capturing the accident received over 2.5 million views online. “When I travel, people recognize me from the accident,” remarks Rana. “I always take the time to stop and talk to these people. We talk about the accident, but I also tell them I’m crazy and that I love beautiful things – things that most people only dream of. These are all ‘dream-things’ but I make it happen and I turn dreams into reality.”
ZR Auto
2219 32 Avenue NE Calgary, AB 403.207.0233 • www.zrauto.com
Congratulations to ZR Auto - we wish you many years of continued success! 650, 444 5 Ave SW Calgary, AB T2P 2T8 Ph. 403 262 0006 • Fax 403 920 1110 • oculustransport.com
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ZR Auto Grand Opening
Congratulations to ZR Auto on their Grand Opening! Best wishes from all of us at Goldmark Diesel International Ltd.
Photo by Ewan Nicholson Photography Inc.
Goldmark Diesel International Ltd. 4140-74 Avenue, Edmonton AB, T6B-2P7 Phone: (780)-450-5730 • Fax: (780)-450-5760 Email: sales@goldmarkdiesel.com
Congratulations to ZR Auto on their Grand Opening! We are looking forward to working with Zahir and his team for many years to come.
Owner/Operater Gerry Scalise 215 - 40 Avenue N.E. Ph. 403.230.8900 • Fax. 403.230.8750 www.maranelloautorefinishing.com
ZR Auto Grand Opening
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Congratulations ZR Auto on your Grand Opening! Congratulations ZR Auto on your Grand Opening! 22220 Twp Rd 514A, Sherwood Park, AB T8C 1H4 Phone 780.922.7007 • Fax 780.922.7050 • Toll Free 1.888.879.2476
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Congrats ZR Auto from everyone at Carco Auto Credit! No Credit Refused Toll free: 866-752-8861 • www.carcoauto.ca
ZR auto Grand Opening
Embracing Your Personal Style • Dress for Success
“
“
Your Personal Style
Fashion is what is created by designers, while style is unique to each individual.
More Calgarians are embracing their personal style and enhancing the way they dress for success Heather Ramsay
T
he culture and fashion scenes in Calgary are growing rapidly. With a plethora of international influences and up-and-coming local designers, fashion in our city is on the brink of exciting times. Alberta is a wealthy and diverse province and we are seeing an ever-growing interest in fashion as more and more individuals are breaking away from traditional or conservative dress. “It is critical to understand that there is a significant dif-
ference between fashion and style. Fashion is what is created by designers, while style is unique to each individual. Part of what we do is help people identify and understand just what their personal style is. Then we are able to assist clients in finding pieces that fit their style, complement their wardrobe and inspire them,” says Arron Prasad, stylist and tailor with Calgary Couture. “Calgarians are well dressed, but typically uninspired and followers when it comes to fashion. www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 61
Embracing Your Personal Style • Dress for Success
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When clothing fits your
personality and
“
fits you properly, there is a certain confidence and
energy that you feel and others can see in you.
62 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Embracing Your Personal Style • Dress for Success
Photo Courtesy of Eleven:Eleven Boutique
rich, with luxurious textures such as leather, suede, fur and velvet. Mixed materials will be big for fall. “We’re going to see clothing that is more closely and appropriately fit to the body. Clean, slim lines and the contrast of neutrals such as grey with bold accents and patterns will create all kinds of opportunity for individuals to redefine their personal style,” says Prasad. “When clothing fits your personality and fits you properly, there is a certain confidence and energy that you feel and others can see in you. The most important thing we tell our clients is to truly be themselves. Try on new things and in different combinations. Be creative and enjoy what you are wearing. Don’t let fashion dictate what you wear and how you wear it.” According to Jen Huxtable, women’s wear stylist, visual merchandising, with Holt Renfrew, a quick and easy way to enhance your wardrobe is to select one new seasonal trend and incorporate it into your current business attire. For ladies, a statement blazer with a crisp
We’re starting to see a wave of business people embracing their individual style and wearing some fantastic clothing that exemplifies their personality.” In a time of big brands and big-box retail, it is encouraging to hear that Canadian designers and more specifically Calgary designers are taking the reins. Lana Selbee is the owner of Eleven:Eleven in Kensington, a boutique specializing in Canadian designers. A lady of eclectic style herself, Selbee’s passion for quality pieces that are made ethically and by local designers is what motivated her to create a boutique of choice for Complete selection of Calgarians. “It’s exciting times when Suits and Accessories customers are pushing to find original pieces and directly supporting Samuelsohn • Coppley local design talent. We are starting to see a wonderful resurgence in the Made with the finest popularity of independent shops and imported fabrics worldwide boutiques,” says Selbee. “Original and custom pieces have such character and can add so much to someone’s wardrobe and self-image.” As the temperature and colours start to change in the city, Calgarians can expect to see some interesting and flattering shifts in fashion this fall. According to local fashion and style experts, trends will have a minimalist Custom made suits, pants & shirts • Alterations done on site look and focus on silhouette, conFor appointment call Amedeo Cortese at 403-264-5305 struction and clean linear lines. There Or e-mail cortesea@telus.net will be a shift in the “fit” of clothing and colour palettes will be bold and Located on the main floor Bow Valley Square
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Embracing Your Personal Style • Dress for Success
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white shirt and black pencil skirt will make a statement, and steer clear of the drab and heavy look of black on black. For men, couple a softer looking charcoal suit with a few fitted shirts and bold ties. Proper fit will ensure that pieces will go well with others in your closet. “I always encourage clients to try new things on, crazy things, anything because you really never know when you’re going to find the perfect piece. You can find fantastic clothing and accessories in high-end, boutique and vintage shops. Calgary has a fantastic fashion offering, and it’s encouraging to see more Calgarians adding something different to their business attire,” says Huxtable.
When planning to dress for success this fall, here are a few tips from the fashion experts. 1. Create Space. Be vigilant and go through your closet and purge your clothing. Ask yourself what you wear and why. What looks good and feels good? It’s likely that you wear 20 per cent of your wardrobe 80 per cent of the time. Get rid of what you don’t wear or doesn’t fit. If you have trouble letting go of clothing, consider donating it to others. 2. Know Your Body Type. Always consider fit. Who cares what the number says. It’s just a number. It’s far more important to pick something that is flattering to your body type and fits appropriately. Consider size and proportion. Smaller items won’t make you look smaller and oversized items will only make you look larger. 3. Redefine Comfort. Comfort doesn’t have to be yoga pants or loose fit. Consider a nice pair of trousers for business casual and dress it up with a fitted shirt. Rethink comfort and incorporate your style into casual wear as well. 4. Experiment. Try things! Break the habit of going to certain retailers and looking for specific styles and colours. Experiment with new shops, new items, colours, patterns and textures. Try things on and have fun. Play around and create your own style. You may be surprised with what you find and how great you feel. 5. Go For Colour. Look for bold and bright colours in basic pieces that can be worn with various other items. Don’t shy away from patterns and interesting combinations of colour. You’ll find colour will energize and uplift you. Dressing for success is a combination of fashion and style. It’s about knowing your body type, your likes and dislikes and having the confidence to express your personality through your own unique style. Dressing well can make you feel poised and show a strength in your demeanour and how your present yourself during the day. Including beautiful and expressive clothing in your wardrobe and continuing to add new pieces regularly will ensure that you look great, feel great and get noticed. BiC
64 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
Photo By Ewan Nicholson Photography Inc.
Calgary Head Office Feature These are the people and companies that will propel Calgary toward a new era of prosperity in 2013. By: Business in Calgary Staff
I
t’s fair to say that in recent years, Calgary has gone beyond the need to assert itself as a place where head offices want to locate. The action is here, and so are the head offices. Calgary is, for all intents and purposes, the epicentre of the oilpatch – at least when it comes to where the decisionmakers are located in massive steel-and-glass towers that epitomize the wealth created by the oil and gas industry. What is more telling, perhaps, of an economy in transition, is how many companies have nothing at all to do with energy. A booming and growing airline, a national leader in media and telecommunications, a real estate leasing giant, a high-tech darling, a new media conglomerate – all make the list on this year’s FP 500 head office ranking by revenues when it comes to corporations that call Calgary home in 2012. Many of the companies that top the list are, to be sure, making their money in one way or another from the oilpatch – reinforcing the city’s role as a global energy centrepiece. The high profile that the industry has garnered in the last year – for better and worse – has translated into more jobs and money flowing into Calgary in the last year. Based on performance, the FP 500 ranks corporate headquarters across the country by revenue. The 2012 ranking shows two of the Top 10 best-performing companies have head offices right here based on the past year’s annual revenues. Calgary has 81 head offices ranking in the top FP 500 this year, about the same as last year and making this city second for the total number of head offices across the country, following Toronto in the lead with Montreal and Vancouver close behind. Suncor Energy Inc. inched up the list to place second overall by revenue with annual revenue of $39.6 billion –
up from about $34 billion the year before – followed by Imperial Oil Ltd. in sixth spot with revenue of $30.4 billion and up from seventh spot the year prior. The four other companies that made it into the Top 25 are Husky Energy Inc. (12th), Enbridge Inc. (15th), Cenovus Energy Inc. (23rd) and Agrium Inc. – the first time it made it to the Top 25 in 24th spot after posting 33rd in the previous year. All of those firms posted bigger revenues in the last year, which shows that while Calgary’s economy is more diverse than energy, oil and gas company firms dominate in a strong position in powering the city’s economy forward in the year ahead. All Calgary-based companies listed in the Top 50 of the FP 500 ranking were energy firms, with the exception of Agrium Inc., listed as a chemical company known for its fertilizer products, and Viterra Inc. – another agribusiness focused on food processing. Some notable exceptions further down the list not related to energy include companies such as WestJet Airlines Ltd., Corus Entertainment Inc., Shaw Communications Inc., UFA Co-operative Ltd., SMART Technologies Inc., Boardwalk Real Estate Investment Trust and CE Franklin Ltd. Last year, the Bank of China opened an office in Calgary as the city continues to attract more international investment from abroad, with finance being another sector Calgary Economic Development is trying to expand. The top three Chinese state-owned oil companies (CNPC, Sinopec, CNOOC) have their Canadian head offices in Calgary. As an uncertain economy persists, it’s anybody’s guess as to where oil and gas prices will go in the year ahead, but Calgary can rest assured it remains a force to be reckoned with on the global stage. BiC www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 65
Calgary Head Office Feature Suncor Energy Inc.
Energy Cdn Rank: (out of 800)
S Steven W. Williams
2
uncor pioneered commercial development of Canada’s oilsands in 1967 — one of the largest petroleum resource basins in the world. Since then, Suncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. Across their operations, they intend to achieve production of one million barrels of oil equivalent per day by 2020.
REVENUE
www.suncor.com
Husky Energy Inc.
Energy Cdn Rank: (out of 800)
H
12
usky Energy is one of Canada’s largest integrated energy companies. The company operates worldwide with upstream, midstream and downstream business segments. A combination of technological innovation, prudent investment, sound project management and responsible resource development allows Husky to deliver strong returns to shareholders. The company has a welldefined and growth-oriented business plan, a stable foundation.
REVENUE
www.huskyenergy.ca
Cenovus Energy Inc.
Energy Cdn Rank: (out of 800)
C
23
enovus Energy is a Canadian oil company. They are committed to applying fresh, progressive thinking to safely and responsibly unlock energy resources the world needs. Their operations include oilsands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, as well as natural gas and oil production across Alberta and southern Saskatchewan.
REVENUE
www.cenovus.com
Canadian Natural Resources Ltd.
Steve W. Laut
Energy Cdn Rank: (out of 800)
26
anadian Natural is one of the largest independent crude oil and natural gas producers in the world. The company continually targets cost effective alternatives to develop our portfolio of projects and to deliver our defined growth plan, thereby creating value for shareholders. A balanced mix of natural gas, light oil, heavy oil, in situ oilsands production, oilsands mining and associated upgrading facilities, represents one of the strongest and most diverse asset portfolios of any energy producer in the world.
TransCanada Corp.
T
Russell K. Girling
www.cnrl.com Energy Cdn Rank: (out of 800)
46
ransCanada is a leader in the responsible development and reliable and safe operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities and projects related to oil pipelines. With more than 50 years experience, the pipelines, gas storage facilities and power plants TransCanada owns and operates are considered among the most technologically-advanced in the industry.
REVENUE
$9,139,000,000 Talisman Energy Inc.*
E
Bruce H. March
$30,474,000,000 Enbridge Inc.
E
Patrick D. Daniel
Energy Cdn Rank: (out of 800)
15
nbridge has become a leader in the safe and reliable delivery of energy in North America and is proud to be recognized as one of the Global 100 Most Sustainable Corporations in the World. They transport energy, operating the world’s longest, most sophisticated crude oil and liquids transportation system, with a significant and growing presence in the natural gas transmission and midstream businesses, and an increasing involvement in power transmission.
$19,402,000,000 Agrium Inc.*
A
www.enbridge.com Chemical Cdn Rank: (out of 800)
24
grium is driven by growth, whether it is to improve the performance of crops that feed the world responsibly, grow their business, their market share or their earnings. Their commitment to growth and diversification, within a framework of financial discipline, will endure as the cornerstone of their long-term strategy. Michael M. Wilson
$15,299,830,000 Viterra Inc.
Mayo M. Schmidt
www.agrium.com Farm Cdn Rank:
V
(out of 800)
33
iterra provides thousands of farmers with the inputs they require to optimize their crop investment. Products and services include seed, fertilizer, crop protection products, equipment and expert agronomic advice. Their dedicated research and development focuses on new seed varieties tailored to meet the needs of destination customers and farmers. As the largest grain handler in Canada with over 45 per cent of the western Canadian market share, Viterra is delivered to more than 50 countries.
$11,790,458,000 Encana Corp.*
E
www.viterra.com Energy Cdn Rank: (out of 800)
49
ncana Corporation is one of North America’s leading gas producers. With over 5,000 staff supporting the company, it is among the largest holders of gas and oil resource lands onshore North America and is a technical and cost leader in the in-situ recovery of oilsands bitumen. Randall K. Eresman REVENUE *CONVERTED FROM U.S. DOLLARS
www.transcanada.com Energy Cdn Rank: (out of 800)
54
$8,373,863,000
C
Joseph P. Marushack
John A. Manzoni
www.encana.com
Rank: ConocoPhillips Canada Resources Corp.* Energy Cdn (out of 800)
stablished as an independent company in 1992, Talisman has grown production from 50,000 boe/d in 1992 to 452,000 boe/d in 2007. The company’s three core areas are North America, the North Sea and Southeast Asia. Over the longer term, the company believes the diversity of its asset base will provide significant growth opportunities.
61
PC’s story in Canada began over 100 years ago and continues today with their team of nearly 2,100 full-time employees and contractors. Together CPC is working towards becoming the leading gas and bitumen producer in Canada. CPC develops their projects in a way that is intended to enhance their economic and social benefit to communities while minimizing the environmental impact associated with development.
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
REVENUE *CONVERTED FROM U.S. DOLLARS
$8,103,866,000
www.imperialoil.ca
REVENUE
REVENUE
$13,792,000,000
6
REVENUE *CONVERTED FROM U.S. DOLLARS
$15,696,000,000
C
(out of 800)
mperial Oil Limited (Imperial) is one of Canada’s largest corporations and a leading member of the country’s oil and gas industry. The company is a major producer of crude oil and natural gas, Canada’s largest petroleum refiner, a key petrochemical producer and a leading marketer with coast-to-coast supply and retail networks.
REVENUE
$23,364,000,000
Brian C. Ferguson
I
Energy Cdn Rank:
REVENUE
$39,619,000,000
Asim Ghosh
Imperial Oil Ltd.
www.talisman-energy.com
66 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
$6,998,164,000
www.conocophillips.ca
Calgary Head Office Feature Canada Safeway Ltd.*
C Chuck Mulvenna
Food Sell Cdn Rank: (out of 800)
64
anada Safeway, a wholly owned subsidiary of Safeway Inc., operates 224 stores across Western Canada. As a major contributor to hundreds of local community organizations, Canada Safeway provides over $20 million in donations annually to assist Food Banks and hunger prevention programs, families with disabilities and cancer initiatives. Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America, based on sales.
NOVA Chemicals Corp.*
N
www.safeway.ca Chemical Cdn Rank: (out of 800)
N
81
Kevin J. Reinhart
$6,341,000,000 Canadian Pacific Railway Ltd.
C
www.novachem.com
Gibson Energy Inc.
Energy Cdn Rank: (out of 800)
83
ibson Energy is a growth oriented, North American midstream oil and gas company. They play a significant role in the oil and gas industry by linking upstream producers with downstream refiners. Each year, the company moves millions of barrels of energy products to market through their facilities and infrastructure – injection stations, terminals, pipelines, tank storage and a fleet of over 1,900 truck transportation units.
F Bob McLeod
www.gibsons.com Engineer Cdn Rank: (out of 800)
100
luor first came to Canada in the 1940s under contract to Shell Oil of British Columbia, now Shell Canada Ltd. to perform engineering, drafting, and supervision of construction on the Shellburn Refinery in Vancouver, British Columbia. Fluor Corporation is one of the world’s leading publicly traded engineering, procurement, construction, maintenance and project management companies.
Superior Plus Corp.
S Luc Desjardins
www.fluor.com/canada Whole Cdn Rank: (out of 800)
105
uperior Plus has a portfolio of diversified businesses consisting of propane distribution, specialty chemicals, construction products distribution and fixed-price energy services. Their goal is to provide long-term stable dividends and premium returns to shareholders through value-based growth in core assets. In 2006, Mr. Billing assumed dual role of chairman and CEO to focus on maximizing unit holder value and long-term value growth.
REVENUE
$3,925,600,000
(out of 800)
82
$5,177,000,000 Shaw Communications Inc.
S
www.cpr.ca Media Cdn Rank: (out of 800)
88
haw Communications Inc. is a diversified communications company whose core business is providing broadband cable television, high-speed Internet, home phone, telecommunications services (through Shaw Business Solutions) and satellite directto-home services (through Shaw Direct). The company serves 3.4 million customers, including over 1.8 million Internet and over 1 million home phone customers, through a reliable and extensive network, which comprises 625,000 kilometres of fibre.
Bradley S. Shaw
$4,740,903,000 ATCO Ltd.
www.shaw.ca Utility Cdn Rank:
A
(out of 800)
102
TCO Group is one of Canada’s premier corporations. As a $13 billion enterprise with more than 8,800 employees, ATCO Group is built upon nine principal operating subsidiaries that span five continents. Engaged in Structures & Logistics, Utilities, Energy and Technologies, their companies deliver service excellence and innovative business solutions. Nancy C. Southern REVENUE
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
$4,082,097,000
Transport Cdn Rank:
REVENUE
REVENUE
Fluor Canada Ltd.*
www.nexeninc.com
REVENUE
$5,183,349,000
$5,072,031,000
66
anadian Pacific operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practises, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency.
Stephen C. Tobias
Randy G. Woelfel REVENUE *CONVERTED FROM U.S. DOLLARS
A. Stewart Hanlon
(out of 800)
exen is a Canadian-based energy company with operations in strategic locations around the world including the North Sea, the Gulf of Mexico, offshore West Africa, Canada, Yemen and Colombia. The company’s goal is to responsibly grow long-term value for shareholders by focusing on three growth strategies: oilsands, conventional exploration and development, and unconventional gas.
OVA Chemicals develops and manufactures chemicals, plastic resins and end-products that make everyday life safer, healthier and easier. Their employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care® to ensure effective health, safety, security and environmental stewardship. NOVA Chemicals and its employees practise a culture of dignity, respect, openness and honesty with one another and in the communities where we live and work.
G
Energy Cdn Rank:
REVENUE
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
$6,633,223,000
Nexen Inc.
$3,991,000,000 Canadian Oil Sands Ltd.
C Marcel R. Coutu
www.atco.com Energy Cdn Rank: (out of 800)
107
anadian Oil Sands Trust provides an un-hedged investment in crude oil that generates income from its 36.74 per cent interest in the Syncrude Joint Venture. As an open-ended investment trust, Canadian Oil Sands has been generating income from its Syncrude interest for their investors since 1995. Mr. Coutu joined Canadian Oil Sands Limited as president and chief executive officer in September 2001.
REVENUE
www.superiorplus.com
$3,875,000,000
www.cdnoilsands.com
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 67
Calgary Head Office Feature ENMAX Corp.
E Gianna Manes
Utility Cdn Rank: (out of 800)
124
NMAX Corporation (ENMAX), through its subsidiaries, provides electricity, natural gas, fibre-optic and value-added services. Through its subsidiaries and predecessors it has provided Albertans with safe, reliable electricity for more than 100 years. ENMAX operates and competes in Alberta’s restructured electricity industry. In 2011, the company had shareholder’s equity of $3.1 billion and net earnings of $184.6 million.
REVENUE
$3,109,100,000 Devon Canada Corp.*
D Chris Seasons
www.enmax.com Energy Cdn Rank: (out of 800)
126
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
TransAlta Corp.
T Dawn L. Farrell
www.dvn.com Utility Cdn Rank: (out of 800)
144
REVENUE
Trican Well Service Ltd.
T
Dale M. Dusterhoft
www.transalta.com Oil Field Cdn Rank: (out of 800)
162
REVENUE
Graham Group Ltd.
www.trican.ca Engineer Cdn Rank: (out of 800)
179
raham Group Ltd. is an employee-owned construction solutions partner with over eight decades of experience, providing general contracting, design-build, construction management and public-private partnership (P3) services in the commercial, industrial, infrastructure, earthworks and masonry sectors. The company has offices throughout North America and employs over 1,300 professionals and office staff. As one of Canada’s largest construction companies, Graham has the resources, capacity and expertise to undertake projects of every scope, scale and complexity.
REVENUE
$2,009,000,000
$3,071,540,000 Penn West Petroleum Ltd.
P
Murray R. Nunns
www.westjet.com Energy Cdn Rank: (out of 800)
131
enn West is one of the largest conventional oil and natural gas producers in Canada. Penn West operates a significant portfolio of opportunities with a dominant position in light oil in Canada. Based in Calgary, Alberta, Penn West operates throughout Western Canada on a land base encompassing over six million acres. It is well positioned to create long-term value for shareholders through a high-quality, long-life asset base, strong balance sheet and experienced management team.
$2,951,000,000 Keyera Corp.
K James V. Bertram
www.pennwest.com Energy Cdn Rank: (out of 800)
150
eyera is one of the largest independent natural gas and natural gas liquids (NGL) midstream businesses in Canada. Its operating businesses provide a range of gathering, processing, fractionation, storage, transportation and marketing services to the oil and gas industry. Keyera’s NGL and crude oil infrastructure includes pipelines, terminals and processing and storage facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub.
$2,569,158,000 UFA Co-operative Ltd.
U
Bob Nelson
www.keyera.com Whole Cdn Rank: (out of 800)
173
FA Co-operative Limited is one of Canada’s largest and most dynamic co-operatives. As a progressive and diversified business, they strive to provide the products, services and solutions for our owners and customers in rural communities. Since their founding in 1909, UFA has grown from a small-scale local co-operative into an extensive retail operation with 120,000 active owners. Their businesses include agriculture, petroleum, construction and outdoor adventure.
REVENUE
G Grant Beck
125
REVENUE
rican Well Service Ltd. is an international pressure pumping company with operations on four continents. Trican provides innovative, engineered and integrated solutions to its customers involved in the exploration and development of oil and natural gas reserves. With a highly trained and competent workforce and a recognized commitment to ongoing research and development, Trican is a technical leader in each of the service lines in which they operate.
$2,309,647,000
Gregg Saretsky
(out of 800)
estJet was founded in 1996 by Clive Beddoe and a team of like-minded partners, who believed that just because you pay less for your flight, doesn’t mean you should get less. Armed with that philosophy, three planes, five destinations and 220 friendly WestJetters, they began their journey - a journey that would take them to more than 8,600 passionate WestJetters flying one of the youngest fleets of Boeing 737 Next-Generation aircraft to more than 75 destinations in 14 countires.
REVENUE
ransAlta is helping meet the growing appetite for electrical power while minimizing the environmental impact of doing so. They’re Canada’s largest publicly traded generator and marketer of electricity and renewable power. They’re investing in new ways to further cut emissions and are regularly recognized for our sustainable approach to business, the environment and the communities they serve.
$2,663,000,000
W
Transport Cdn Rank:
REVENUE
evon Energy Corporation is a leading independent oil and natural gas exploration and production company. Devon’s operations are focused onshore in the United States and Canada. They also own natural gas pipelines and treatment facilities in many of our producing areas, making them one of North America’s larger processors of natural gas liquids. The company’s portfolio of oil and gas properties provides stable, environmentally responsible production and a platform for future growth.
$3,061,944,000
WestJet Airlines Ltd.
$2,108,450,000 Precision Drilling Corp.
P
Kevin A. Neveu
www.UFA.com Rank: Oil Field Cdn (out of 800)
183
recision Drilling Corporation is Canada’s largest oilfield services company and one of the largest in the United States, and also has a growing presence internationally. Precision provides contract drilling, well servicing and strategic support services to customers. The company supplies on-theground expertise - people, equipment and knowledge - to provide value to our customers on a daily basis.
REVENUE
www.graham.ca
68 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
$1,951,027,000
www.precisiondrilling.com
Calgary Head Office Feature Ensign Energy Services Inc.
Rank: Oil Field Cdn (out of 800)
E
Robert H. Geddes
186
nsign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world’s leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Additional services include directional drilling, rental equipment, managed pressure drilling, oilfield manufacturing and production flow back units.
REVENUE
www.ensignenergy.com
Crescent Point Energy Corp.
Energy Cdn Rank: (out of 800)
C
198
rescent Point Energy Corp is a conventional oil and gas producer with assets strategically focused in Western Canada. Crescent Point continues, since inception in 2001, to aggressively pursue its three-part business strategy of acquiring, exploiting and developing high quality, large resource in place assets while maintaining a strong balance sheet and balanced three-and-a-half year hedge program.
REVENUE
$1,729,161,000
Douglas J. Haughey
www.crescentpointenergy.com
J
Engineer Cdn Rank: (out of 800)
206
acobs Engineering Group Inc. is one of the world’s largest and most diverse providers of technical, professional and construction services, including all aspects of architecture, engineering and construction, operations and maintenance, as well as scientific and specialty consulting. They serve a broad range of companies and organizations, including industrial, commercial, and government clients across multiple markets and geographies.
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
$1,634,952,000 Apache Canada Ltd.*
$1,886,122,000 Pembina Pipeline Corp.
P Robert B. Michaleski
A
www.jacobs.com Energy Cdn Rank: (out of 800)
214
Timothy O. Wall
Flint Energy Services Ltd.
F William J. Lingard
Energy Cdn Rank: (out of 800)
202
www.pembina.com Rank: Oil Field Cdn (out of 800)
210
lint Energy Services Ltd. is now URS Flint, a part of URS Corporation. URS is a leading provider of engineering, construction and technical services for public agencies and private sector companies around the world. URS Flint is one of North America’s leading fully integrated upstream and midstream construction and production service provider to the energy and resource industries.
$1,616,186,000
www.flintenergy.com
AltaGas Ltd.
Energy Cdn Rank:
A
David W. Cornhill
(out of 800)
217
ltaGas’ vision is to be a leading North American energy infrastructure company with a focus in Canada and the northern and western United States. Their strategy to achieve this vision is simple: capitalize on the supply and demand dynamic for natural gas and power by owning and operating assets in gas, power and utilities in places that provide a strategic competitive advantage.
REVENUE
$1,599,213,000
www.apachecorp.com
Calfrac Well Services Ltd.
Oil Field Cdn Rank: (out of 800)
220
alfrac is an innovative pressure pumping services provider focused on North America’s premier unconventional natural gas and light oil plays plus strategic international markets. With state-of-the-art equipment – in-house R&D, a diversified customer base, an expert team of employees, experienced management and record annual revenues in 2011, Calfrac is strongly positioned for continued growth.
REVENUE
$1,537,392,000
www.pembina.com
REVENUE
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
Douglas R. Ramsay
187
embina Pipeline Corporation is a reliable and growing energy transportation and service provider with an exciting future. Their integrated businesses and quality assets combine with prudent financial management to form the foundation of its strategic plan. They believe in carefully managed, responsible growth that exceeds the expectations of our stakeholders.
$1,676,710,000
pache was formed in 1954 with $250,000 of investor capital with the simple concept of becoming a significant and profitable oil company. Today, Apache Corporation is one of the world’s top independent oil and gas exploration and production companies. The journey to this point was fueled by Apache’s contrarian approach to business.
C
(out of 800)
embina Pipeline Corporation is a reliable and growing energy transportation and service provider with an exciting future. Their integrated businesses and quality assets combine with prudent financial management to form the foundation of their strategic plan. Pembina Pipeline Corporation believes in carefully managed, responsible growth that exceeds the expectations of their stakeholders.
REVENUE
Jacobs Canada Inc.*
Chip Mitchell
P
Energy Cdn Rank:
REVENUE (SEE FOOTNOTE 27)
$1,890,372,000
Scott Saxberg
Pembina NGL Corp.
$1,572,571,000 The Churchill Corp.
C
www.altagas.ca Engineer Cdn Rank: (out of 800)
228
hurchill, one of the largest publicly listed construction and industrial services companies in Canada, is comprised of three strategic operating segments: general contracting, commercial systems, and industrial services. Operations are focused in Western Canada where tremendous institutional, commercial and industrial construction opportunities exist.
James C. Houck REVENUE
www.calfrac.com
$1,409,159,000
www.churchillcorporation.com
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 69
Calgary Head Office Feature Central Fund of Canada Ltd.*
C
Finance Cdn Rank: (out of 800)
234
Weatherford Canada Ltd.*
Rank: Oil Field Cdn (out of 800)
W
entral Fund of Canada holds gold and silver bullion on a secure basis for the convenience of their investors in the shares of their company. The bullion are both priced worldwide in US dollars and make up over 75 per cent of Central Funds assets.
243
eatherford International Ltd. (NYSE:WFT) is one of the largest global providers of products and services that span the drilling, evaluation, completion, production and intervention cycles of oil and natural gas wells. Weatherford is a new breed of service company—one that can provide the industry with extended products and services, more efficient operations, more powerful research and development capabilities and greater geographic diversity.
J. C. Stefan Spicer REVENUE *CONVERTED FROM U.S. DOLLARS
$1,369,260,000 ARC Resources Ltd.
A
John P. Dielwart
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
www.centralfund.com Energy Cdn Rank: (out of 800)
246
RC is one of Canada’s leading conventional oil and gas companies. Their operations are focused in six core areas across Western Canada, and provide them with an extensive resource base of high quality oil and natural gas development opportunities. Since day one, their vision has been to be a leading oil and gas producer as measured by quality of assets, management expertise and long-term returns.
REVENUE
$1,278,200,000 Inter Pipeline Fund
I
$1,294,601,000 Murphy Oil Co. Ltd.*
M
260
Mike McFadyen REVENUE *CONVERTED FROM U.S. DOLLARS
www.arcresources.com Energy Cdn Rank: (out of 800)
265
David W. Fesyk
$1,167,316,000
Pengrowth Energy Corp.
P Derek W. Evans
REVENUE
www.murphyoilcorp.com Energy Cdn Rank: (out of 800)
269
engrowth Energy Corporation is a monthly dividendpaying, intermediate Canadian producer of oil and natural gas. Its focus is on the development of conventional and unconventional resource-style plays within the Western Canadian Sedimentary Basin. On March 23, 2012, Pengrowth Energy Corporation and NAL announced a strategic business combination.
REVENUE
www.interpipelinefund.com
Rank: Calgary Co-operative Association Ltd. Food Sell Cdn (out of 800) 274
$1,135,839,000
www.pengrowth.com
Baytex Energy Corp.
Energy Cdn Rank:
C
Deane Collinson
(out of 800)
B
algary Co-op’s roots run deep in the heart of the community as the only truly Calgarian food retailer. The focus of Calgary Co-op is to provide the freshest, best quality products at competitive prices. In their food centres, they conduct weekly price checks in-store and at the stores of their two main competitors. It is the only retailer in Calgary that delivers an annual membership refund in the form of cash and equity to their member-owners.
275
aytex Energy Corp. is a dividend-paying conventional oil and gas corporation based in Calgary. The company is engaged in the acquisition, development and production of oil and natural gas in the Western Canadian Sedimentary Basin and has an emerging presence in the United States. Baytex is committed to maintaining its production and asset base through internal property development and delivering consistent returns to its shareholders.
Raymond T. Chan
REVENUE
$1,096,813,000 Enerplus Corp.
E Gordon J. Kerr
(out of 800)
urphy Oil Corporation is an international oil and gas company that conducts business through various operating subsidiaries. The company produces oil and natural gas in the United States, Canada, the United Kingdom, Malaysia and Republic of the Congo and conducts exploration activities worldwide.
nter Pipeline Fund’s petroleum transportation; processing and storage assets play an important role in connecting energy and petrochemical producers to markets. As one of the largest energy infrastructure businesses in Canada, Inter Pipeline has a strong track record that has produced increasing and reliable monthly cash distributions for their unitholders.
$1,151,567,000
Energy Cdn Rank:
REVENUE
www.calgarycoop.com Energy Cdn Rank: (out of 800)
278
nerplus is a North American energy producer with a diversified asset base of oil and gas assets that offer both a stable cash flow stream as well as growth potential. They are focused on creating value for our investors through the successful development of their properties and the disciplined management of their balance sheet. Through their activities, they strive to provide investors with a competitive return comprised of both growth and income.
REVENUE
$1,091,404,000
$1,096,642,000 MEG Energy Corp.
M
www.baytex.ab.ca Energy Cdn Rank: (out of 800)
291
EG Energy Corp. (MEG) is a Canadian oilsands company focused on sustainable in situ development and production in the southern Athabasca oil sands region of Alberta. MEG has acquired a large, high quality resource base – which along with a well-formulated strategic growth plan, positions them to be a strong oilsands player for many years to come.
William J. McCaffrey REVENUE
www.enerplus.com
70 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
$1,033,226,000
www.megenergy.com
Calgary Head Office Feature Petrobank Energy and Resources Ltd.
P
John D. Wright
Energy Cdn Rank: (out of 800)
295
etrobank is an innovative Canadian based energy and technology company focused on creating value for its shareholders by identifying and applying leading edge technologies to large resources. The company currently consists of three separate entities including a 59% stake in PetroBakken, 100% ownership of Whitesands Insitu Partnership and 100% ownership of Archon Technologies Ltd.
REVENUE
www.petrobank.com
Vermilion Energy Inc.
Energy Cdn Rank:
Lorenzo Donadeo
(out of 800)
308
ermilion Energy Inc. (“Vermilion”) is an international oil and gas producer celebrating 18 years of outstanding performance. Daily production in the fourth quarter of 2011 was 36,654 boe/d comprised of 22,096 barrels per day of mostly light sweet crude oil and 79.5 million cubic feet of natural gas from properties in Western Canada, Australia, France and the Netherlands.
REVENUE
$977,335,000 Connacher Oil and Gas Ltd.
C Peter D. Sametz
www.vermilionenergy.com Energy Cdn Rank: (out of 800)
328
REVENUE
Corus Entertainment Inc.
C John M. Cassaday
www.connacheroil.com Media Cdn Rank: (out of 800)
336
REVENUE
SMART Technologies Inc.*
S
Thomas F. Hodson
William M. Gallacher
$1,008,892,000
www.avenexenergy.com
Bonavista Energy Corp.
Energy Cdn Rank: (out of 800)
B Keith A. J. MacPhail
325
onavista Energy Corporation is a Calgary-based oil and gas company with a proven track record of value creation. Since inception in 1997, Bonavista has consistently added shareholder value by pursuing a disciplined and effective strategy that focuses on long term profitability. Today, Bonavista is one of Canada’s largest dividend paying energy companies, with a market capitalization of approximately $3.1 billion CDN.
$887,503,000
www.bonavistaenergy.com
North American Energy Partners Inc.
Rank: Oil Field Cdn (out of 800)
N
331
orth American Energy Partners Inc. (NAEPI) provides a range of heavy construction and mining, piling and pipeline installation services to customers in the Canadian oilsands, industrial construction, commercial and public construction and pipeline construction markets. The company’s primary market is the Canadian oilsands, where it supports its customers’ mining operations and capital projects. It provides services through all stages of an oilsands project’s lifecycle.
Martin Ferron
$858,048,000
www.nacg.ca
Veresen Inc.
Energy Cdn Rank: (out of 800)
V Stephen H. White
342
eresen Inc. owns and operates energy infrastructure assets in North America. It operates in three segments: pipelines, midstream, and power. The Pipeline segment owns a 50% interest in the Alliance Pipeline, which is an integrated pipeline system consisting of an approximately 3,000 kilometres high pressure natural gas mainline pipeline located in Canada and the United States; and a 100% interest in the Alberta Ethane Gathering System, a 1,324 kilometres pipeline that transports pure ethane within Alberta.
REVENUE
www.corusent.com High-Tech Cdn Rank: (out of 800)
344
MART is the world’s leading provider of interactive whiteboards. The company introduced the world’s first interactive whiteboard in 1991 and remains the global product category leader, providing easy-to-use, integrated products and services that improve the way the world works and learns. For more than 20 years, innovation and commitment to excellence have been at the core of their business.
REVENUE *CONVERTED FROM U.S. DOLLARS
$803,485,000
A
299
REVENUE
orus Entertainment is one of Canada’s most successful integrated media and entertainment companies. Founded by JR Shaw, the company was built from the media assets originally owned by Shaw Communications, and spun off as a separate, publicly-traded company in 1999. Since then, their asset base has grown remarkably through strategic acquisitions and a strong operating discipline.
$825,213,000
(out of 800)
venEx Energy Corp (“AvenEx”) (formerly Avenir Diversified Income Trust) was created to provide stable, sustainable dividends to shareholders while providing modest growth. AvenEx is focused on energy with two distinct business units, namely: oil and gas: development and production Elbow River: LPG marketing and logistics.
REVENUE
onnacher Oil and Gas Limited is a Calgary-based exploration, development and production company active in the production and sale of bitumen, crude oil, natural gas and natural gas liquids. Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oilsands projects located near Fort McMurray, Alberta.
$872,806,000
Energy Cdn Rank:
REVENUE
$1,017,025,000
V
AvenEx Energy Corp.
$806,652,000
www.vereseninc.com
Rocky Mountain Dealerships Inc.
R
Whole Cdn Rank: (out of 800)
345
ocky Mountain Dealerships Inc. is one of Canada’s largest agriculture and construction equipment dealerships with branches throughout Alberta, Saskatchewan and Manitoba. They sell, rent, and lease new and used construction and agriculture equipment, and offers product support, and finance to its customers. M. C. Campbell REVENUE
www.smarttech.com
$802,763,000
www.rockymtn.com
WWW.MOSTARDIRECTIONAL.COM
72 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
MOSTAR – hOW IT ShOuLD bE DONE
4 minutes. That’s how long it takes to switch between EM and MUD PULSE technologies without tripping, using the world’s one and only dual telemetry MWD system. Allowing you to drill faster and save time and money. You won’t find a quicker, more efficient system out there. Experience the Mostar difference. Ask about it.
WWW.MOSTARDIRECTIONAL.COM
MOSTAR – hOW IT ShOULD bE DONE
Calgary Head Office Feature Trinidad Drilling Ltd.
Rank: Oil Field Cdn (out of 800)
T Lyle C. Whitmarsh
346
rinidad Drilling’s story is a story of growth. They have grown both internally and through strategic and value-adding acquisitions. This small Canadian contract driller started in 1996 and has grown to become an industry leader operating in Canada, the United States and Mexico. Trinidad’s Drilling’s high-quality equipment, customer focused approach and exceptional people continue to position them well for future growth and they look forward to taking advantage of some of the exciting opportunities they see ahead of them.
REVENUE
$797,285,000 Newalta Corp.
N Alan P. Cadotte
www.trinidaddrilling.com Environ Cdn Rank: (out of 800)
383
REVENUE
Gran Tierra Energy Inc.*
www.newalta.com Energy Cdn Rank: (out of 800)
418
REVENUE *CONVERTED FROM U.S. DOLLARS
www.grantierra.com
Cervus Equipment Corp.
Whole Cdn Rank: (out of 800)
432
he Cervus name represents honesty, innovation and ingenuity in the agricultural, industrial and commercial equipment industries. The company proudly owns the largest group of John Deere agricultural equipment dealers in Canada and has a significant presence in the commercial and industrial and equipment sectors through their Bobcat, JCB, JLG, AR Williams and Peterbilt dealerships across the west.
REVENUE
www.cervuscorp.com
CE Franklin Ltd.
Whole Cdn Rank:
Michael S. West
Bruce Roberts
$702,478,000
(out of 800)
436
E Franklin specializes in distributing more than 25,000 types of pipe, valves, flanges, fittings, production equipment, tubular products and other general industrial supplies, sourced from over 2,000 suppliers to Canadian industrial clients, mostly in the oil and gas sector. In addition to oil and gas producers, they serve the oilsands, midstream, refining, petrochemical and non-oilfield related industries.
REVENUE
$546,352,000
www.balancingpool.ca
Savanna Energy Services Corp.
Rank: Oil Field Cdn (out of 800)
S Kenneth B. Mullen
414
avanna Energy Services Corp. (Savanna) is a premiere North American energy services provider. Their primary offerings include conventional drilling, hybrid drilling, and well servicing and comprehensive oilfield services such as oilfield equipment rental that meet the needs of their diverse oil and gas customer base. Savanna is uniquely positioned in the energy services industry, incorporating Aboriginal partnerships and community involvement with leading technology that includes PLC-controlled service rigs and patented hybrid drilling rigs.
$610,737,000
www.savannaenergy.com
Nabors Canada*
Rank: Oil Field Cdn (out of 800)
T
430
he Nabors companies own and operate approximately 501 land drilling and approximately 743 land workover and well-servicing rigs in North America. Nabors’ actively marketed offshore fleet consists of 40 platform rigs, 12 jackup units and 4 barge rigs in the United States and multiple international markets. Nabors participates in most of the significant oil, gas and geothermal markets in the world.
$568,431,000
www.nabors.com
Secure Energy Services Inc.
Rank: Oil Field Cdn (out of 800)
S
434
ecure is a TSX publicly traded energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. Secure Energy has assembled an experienced team with a mission to help their valued customers. Rene Amirault REVENUE
$559,598,000
C
376
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
$589,632,000
Graham Drake
T
ran Tierra Energy Inc. is an international oil and gas exploration and production company headquartered in Calgary incorporated and traded in the United States and operating in South America. The company currently holds interests in producing and prospective properties in Colombia, Argentina, Peru and Brazil. Gran Tierra’s strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves.
T
(out of 800)
he Balancing Pool plays a prominent role in managing the Power Purchase Arrangements of several major power plants. The Balancing Pool was established in 1999 by the Government of Alberta to help manage certain assets, revenues and expenses arising from the transition to competition in Alberta’s electric industry.
REVENUE
G Dana Coffield
Utility Cdn Rank:
REVENUE
ewalta is based in Calgary. They provide services through their network of facilities across Canada and customer locations where they mobilize their equipment and people to process material directly onsite. They are in the product recovery business, where innovation and customer-driven approaches add value to their customer’s bottom line. Today, Newalta has 85 facilities across Canada and 2,000 people.
$682,828,000
Balancing Pool
$551,199,000
www.secure-energy.ca
Canadian Energy Services & Technology Corp.
C
Rank: Oil Field Cdn (out of 800)
462
ES’ business model is focused on the design and delivery of technically advanced fluids for the oil and gas industry. CES’ business model requires limited re-investment capital to grow. As a result, CES has been able to capitalize on the growing market demand for drilling and production fluids in North America while generating free cash flow. Thomas J. Simons REVENUE
www.cefranklin.com
$459,257,000
www.canadianenergyservices.com
WWW.MOSTARDIRECTIONAL.COM
74 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
MOSTAR – hOW IT ShOuLD bE DONE
Calgary Head Office Feature 465
Rank: Boardwalk Real Estate Investment Trust Real Estate Cdn (out of 800) 475
engrowth Energy Corporation acquired all of the issued and outstanding shares of NAL Energy Corporation on May 31, 2012. All former NAL shareholders can obtain information regarding the transaction and other relevant historical information at Pengrowth’s website at www.Pengrowth.com.
oardwalk REIT is Canada’s friendliest landlord and currently owns and operates more than 225 properties with 35,277 residential units totaling approximately 30 million net rentable square feet. Boardwalk REIT is vertically integrated and is Canada’s leading owner/operator of multi-family communities with 1,600 associates bringing customers home to properties located in Alberta, Saskatchewan, Ontario, Quebec and British Columbia.
NAL Energy Corp.
Energy Cdn Rank: (out of 800)
P
Sam Kolias
Andrew B. Wiswell
REVENUE
REVENUE
$442,118,000
www.nalenergy.com
Niko Resources Ltd.*
Energy Cdn Rank: (out of 800)
N
Edward S. Sampson
480
iko Resources Ltd. is focused on sustained growth through successful exploration. The company is currently one of the largest non-government landowner in both Indonesia and Trinidad. Fuelled by the success of its key natural gas properties, Niko is determined to continue its role as a leader in the field of international oil and natural gas exploration and production.
REVENUE *CONVERTED FROM U.S. DOLLARS
$410,721,000
www.nikoresources.com Oil Field Cdn Rank: (out of 800)
H
485
orizon North is a publicly-traded company (TSX: HNL) that provides resource companies with mobile structures, camp management and catering, matting solutions, and northern marine services. With over 1,000 employees and offices and/or manufacturing plants in Calgary, Sherwood Park, Grande Prairie and Anzac, Alberta, Kamloops, British Columbia and in Tuktoyaktuk, Inuvik and Norman Wells, Northwest Territories, Horizon North operates in Canada’s western provinces and three northern territories.
REVENUE
$402,993,000 Peyto Exploration & Development Corp.
P
$422,727,000 Progress Energy Resources Corp.
Energy Cdn Rank: (out of 800)
P
482
rogress Energy is a mid-sized natural gas producer, but the true scale of the company is told by other metrics. Ultimate potential of Progress assets is measured in billions of cubic feet per day of gas production. Progress holds some 820,000 acres of land in the prolific Montney fairway, showing 300 metres of gas-saturated, high-pressure pay zone, as confirmed by third-party evaluation. And they are, by far, the largest landholder in the Montney trend.
Michael R. Culbert
$407,679,000
www.progressenergy.com
Enbridge Income Fund
Energy Cdn Rank: (out of 800)
E
488
nbridge Income Fund Holdings Inc. (“EIFH”), through its investment in Enbridge Income Fund (the “Fund”), holds high quality, low risk energy infrastructure assets. The Fund’s assets include a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in the various pipelines comprising the Saskatchewan System, and interests in more than 400 megawatts of renewable and alternative power generation capacity.
John K. Whelen REVENUE
www.horizonnorth.ca Energy Cdn Rank: (out of 800)
493
$392,600,000 MNP LLP
Darren Gee
www.enbridgeincomefund.com Accounting Cdn Rank: (out of 800)
A
eyto Exploration & Development is a natural gas weighted energy trust that is committed to building value through the exploration and development of high quality gas properties.
498
t MNP, finding the right solutions starts by understanding your vision, your business and you. It begins with a relationship. The company has grown over the years, one handshake and smile at a time. With more than 70 offices across the country, MNP has become one of the largest chartered accountancy and business consulting firms in Canada. Daryl Ritchie
REVENUE
$383,496,000 Canyon Services Group Inc.
C Bradley P. D. Fedora
www.boardwalkreit.com
REVENUE
Horizon North Logistics Inc.
Robert T. German
B
REVENUE
www.peyto.com Oil Field Cdn Rank: (out of 800)
500
anyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO2, to oil and natural gas producers developing a variety of play types across Western Canada. They’re a close-knit growing team of employees guided by a valuesbased internal culture. They recognize that the success of their business depends on the success of their customers’ well completions.
REVENUE
$372,096,000
$374,000,000
www.mnp.ca
Tourmaline Oil Corp.
Energy Cdn Rank: (out of 800)
T Michael L. Rose
521
ourmaline is focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin. Their business strategy is to maximize shareholder value by increasing reserves, production and cash flows through the exploitation and development of a continually growing asset base.
REVENUE
www.canyontech.ca
$340,272,000
www.tourmalineoil.com
WWW.MOSTARDIRECTIONAL.COM
MOSTAR – hOW IT ShOuLD bE DONE
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 75
Calgary Head Office Feature Pason Systems Inc.
Rank: Oil Field Cdn (out of 800)
P
526
Trilogy Energy Corp.
James H. T. Riddell
$333,520,000
www.pason.com
Total Energy Services Inc.
Rank: Oil Field Cdn (out of 800)
T
530
otal Energy Services Inc. (“Total”) is a growth oriented energy services company based in Calgary. Through various operating divisions and wholly-owned subsidiaries, Total is involved in three businesses: contract drilling services (Chinook Drilling), rentals and transportation services (Total Oilfield Rentals LP) and the fabrication, sale, rental and servicing of new and used natural gas compression equipment (Bidell Equipment LP).
REVENUE
www.totalenergy.ca
Essential Energy Services Ltd.
E
Rank: Oil Field Cdn (out of 800)
539
ssential operates the largest coil tubing well service fleet in Canada with 51 coil tubing rigs and a fleet of 60 service rigs. Essential is a growth-oriented corporation that provides oilfield services to oil and gas producers in Western Canada for servicing producing wells and new drilling activity. Essential also sells, rents and services downhole tools and equipment including the Tryton Multi-Stage Fracturing System.
REVENUE
www.essentialenergy.ca
Advantage Oil & Gas Ltd.
Energy Cdn Rank: (out of 800)
A
552
dvantage Oil & Gas Ltd. is a growth oriented corporation with oil & gas assets located in Western Canada.The company is currently focusing on development and growth of its extensive Montney natural gas play at Glacier, Alberta where capital over the life of the project could exceed $2.5 billion and production has grown to over 100 mmcfd (Millions of cubic feet per day).
REVENUE
www.advantageog.com
Kinder Morgan Canada Inc*
K
Energy Cdn Rank: (out of 800)
556
inder Morgan is the largest midstream and the fourth largest energy company (based on combined enterprise value) in North America. Their pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide (CO2) and more. They also store or handle a variety of products and materials at our terminals such as gasoline, jet fuel, ethanol, coal, petroleum coke and steel.
REVENUE *CONVERTED FROM U.S. DOLLARS (SEE FOOTNOTE 4)
$299,073,000
Q’Max Solutions Inc.
Whole Cdn Rank: (out of 800)
Q Reginald Northcott
535
’Max Solutions Inc. provides onshore and offshore drilling fluids and environmental solutions. It offers alkalinity control products, bactericides, calcium removers, corrosion inhibitors, deformers, emulsifiers, filtrate reducers, flocculants, foaming agents, lost circulation materials, lubricants, shale control inhibitors, surfactants, thinners/dispersants, viscosifiers and weighting materials.
$322,000,000
www.qmaxsolutions.com
NuVista Energy Ltd.
Energy Cdn Rank: (out of 800)
N Jonathan A. Wright
551
uVista Energy Ltd. is an independent Canadian oil and gas company pursuing a proven growth strategy. NuVista is engaged in exploration, development and production activities on properties located in three operating regions of the Western Canadian Sedimentary Basin. NuVista has successfully grown from a junior E&P company with a focus on shallow gas in eastern Alberta to a strong intermediate company with a focus on longer-life assets containing long-term growth opportunities in the Deep Basin of central Alberta.
$304,996,000
www.nuvistaenergy.com
Legacy Oil + Gas Inc.
Energy Cdn Rank: (out of 800)
L
Trent J. Yanko
555
egacy’s experienced management team has a proven track record of aggressively growing oil and natural gas companies on a cost-effective per share basis. The company is strategically focused on both a geographic and commodity basis and will maintain prudent fiscal management, allowing them to be well positioned to profit from the current environment.
REVENUE
$302,317,000
Ian D. Anderson
www.trilogyenergy.com
REVENUE
$317,214,000
Andy J. Mah
$336,050,000
REVENUE
$332,082,000
Garnet K. Amundson
523
rilogy Energy Corp. (TET) is a Canadian energy corporation formed through a spinout of assets from Paramount Resources in April 2005. Originally an income trust, Trilogy converted to a corporate structure in February 2010. Trilogy’s geographically concentrated assets are primarily low-risk, high working interest, lower-decline properties that provide abundant infill drilling opportunities and good access to infrastructure and processing facilities, many of which are operated and controlled by Trilogy.
REVENUE
REVENUE
Daniel K. Halyk
(out of 800)
T
ason is the leading global provider of specialized data management systems for land-based and offshore rigs worldwide. Their rental solutions, which include data acquisition, wellsite reporting, remote communications, and web-based information management, enable collaboration between the rig and the office. Marcel Kessler
Energy Cdn Rank:
$300,591,000
www.legacyoilandgas.com
The Calgary Airport Authority
T
Transport Cdn Rank: (out of 800)
563
he Calgary Airport Authority is a not-for-profit, nonshare capital corporation incorporated under the Alberta Regional Airports Authorities Act. Since 1992, it has been responsible for the management, maintenance and development of Calgary International Airport and Springbank Airport under long-term lease from the Government of Canada.
Garth F. Atkinson REVENUE
www.kindermorgan.com
$290,064,000
www.yyc.com
FOOTNOTES 4 Canadian Revenue as Per Parent Company’s Annual Report - 27 Formerly Provident Energy Ltd.
4 minutes. That’s how long it takes to switch between EM and MUD PULSE technologies without tripping, using the world’s one and only dual telemetry MWD system. Allowing you to drill faster and save time and money. You won’t find a quicker, more efficient system out there. Experience the Mostar difference. Ask about it.
76 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
WWW.MOSTARDIRECTIONAL.COM
MOSTAR – hOW IT ShOULD bE DONE
Technology Headaches Solved • Emerging Technology
Code Excellence is breaking new ground in the technology world by fixing problems before they happen By Michael Doucette
T
here is an $80-billion-a-year problem in the U.S.: fixing software mistakes in large corporations. It causes headaches across every department within these Fortune 500 firms all because of a single line of code that was programmed incorrectly. It’s the kind of stuff that only a techie can appreciate, but every employee who has encountered a software bug can relate to. An average computer programmer spends about 30 per cent of his or her time fixing these mistakes that were entered incorrectly when first installed. Roy Masrani has found a solution. Every large corporation has some type of enterprise resource planning (ERP) system that allows all of the various systems used for everyday functions, such as accounting, payroll and logistics, to interact with each other so that all employees can access the information they need. Germanbased SAP is the industry leader in this field with about 25 per cent of the market share. In 70 per cent of cases, SAP and similar systems can’t be deployed in a typical off-the-shelf manner; they need to be customized to fit the individual organization. When there’s a computer code problem, nothing works quite the way it should. Founded in 2007, Code Excellence, which Masrani leads, aims to fix those problems before they
happen. His company’s main product, Hawkeye, constantly monitors every line of code computer programmers input and immediately flags mistakes that violate best practices and well-known coding standards. “In large corporations, 60 or 70 per cent of the time these things are over budget and late,” says Masrani. “We’re talking about lost money.” One of his client corporations invested $500 million into an ERP system – way more than they had initially anticipated, he says. While there is a return on investment for that expenditure, software and www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 77
Technology Headaches Solved • Emerging Technology
code mistakes cost companies billions of dollars each year in needless resources. SAP is essentially the “nerve centre” of any large corporation, so it just has to work. “It is the gorilla,” says Masrani. Code Excellence got its first customer by analyzing 800,000 lines of code for a major corporation and Masrani and his team found numerous problems. They were very impressed and he soon started winning over more clients. The consequences of not having an ERP system that works are huge. One bank implemented their own system recently and because of all the bugs in it, all of its customers couldn’t access their own money. If you got paid, the money was in the account, but it wouldn’t show up – causing all kinds of headaches, bounced cheques and a lot of angry customers. In another case, mobile software company Carrier IQ caused a huge furor due to an innocent (but fatal) coding mistake in the U.S. Every cellphone has a simple piece of software that keeps track of every keystroke. When one programmer was doing an “enhancement” he inadvertently forgot to take out one line of code and it caused a massive problem, even sparking an investigation by a U.S. Senate
Any electron that’s running the nerve centre of a company can now be instantly dealt with before it causes huge problems down the road. There is clearly room for incredible growth in the future of Code Excellence. There are 120,000 SAP customers in the world, with about 30,000 of them being very large corporations. “We’re in the process of setting up an office in Singapore to enter the Asia market,” says Masrani. “We already have a partnership with a company in South Africa.” Code Excellence also has a partnership with a $16-billiona-year company that they are working with to introduce their product right now. They have instantly formed relationships on every continent except Europe – one that will likely change very soon. It is definitely not the sexiest innovation in the world. Then again, many of the innovations that change the world don’t appear that way – at first. Once people realize the impact, however, those innovations come to be accepted as essential. Computer programmers aren’t exactly known for their popularity, but without them our corporations would cease to exist. They’re also human. Mistakes happen. Code Excellence is
committee. “To me, that is a disaster,” says Masrani. “Programmers don’t spend their time talking about adding new features,” he explains. “They’re trying to figure out why thing are crashing.” Masrani and his partners wanted to introduce an entirely new level of accountability through their Hawkeye product, emerging as a technology solution that is in high demand, albeit somewhat of a conversation dud. “If I were to talk about it at a party, I wouldn’t be able to hold a conversation,” jokes Masrani. “But the problem is huge.” With good governance and accountability in the spotlight these days, especially among publicly-traded corporations, it comes down to risk mitigation. “Just that notion of accountability added four very large customers,” he says. The product went from its launch in 2009 with zero dollars in revenue to $1 million last year – and growing fast.
proving that it has found a solution to fix those mistakes as they happen, sending notifications to the programmers and his or her boss in real time so that those mistakes are caught, fixed and helping to save companies millions of dollars. Now that’s results. It just goes to show how a vague concept or idea in the initial stages can morph into something huge. That’s usually the way it is with innovative, groundbreaking technology. What may seem insignificant on the surface, when researched carefully and put into the hands of enterprising and risk-taking entrepreneurs can turn into a product that literally changes the world – in this case the business world. Now, when a software or code problem arises in the systems that make companies operate every day, it doesn’t turn into a public relations nightmare, a logistical hell or cost overruns. Now that’s the proof in the pudding. BiC
78 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
COLOCATION. COLOCATION. COLOCATION.
I
magine this: Your business is flying high. Your customers can’t get enough of your product or service and you’re on track to blow your revenue forecast out of the water. Great news, right?
But behind the scenes, your IT Infrastructure is pushing maximum density. You don’t have the space for additional equipment. Climbing utility bills and a non-redundant system are pushing you to your breaking point. How do you meet your customers’ demands without disrupting service? Do you add on to your current space, continue to risk network outages or move everything to a larger facility? It’s a significant issue that many companies face and it’s why many are turning to colocation for the management of their IT Infrastructure.
How is your enterprise managing IT infrastructure? What is Colocation & What are the Drivers?
Colocation is a physical facilities option for your IT Infrastructure. Under a colocation scenario, your IT assets are placed in a service provider’s facility (next to or “co-located with” the assets of other organizations), giving you the ability to take advantage of shared power infrastructure, HVAC systems, physical security and redundant architecture. You essentially lease space for your IT assets while maintaining ownership and control of those assets. According to Info-Tech Research Group, almost two-thirds of organizations engage in some form of data centre colocation services and they do so for several reasons: • Organizations tend to be more geographically distributed these days, therefore they don’t necessarily have an optimal central location in which to locate a data centre.
• Traditional office buildings don’t always meet the cooling, power and weight requirements to house dense and heavy hardware. • These buildings rarely allow for the lockdown security measures that companies want for their server rooms. • Colocation gives companies that are consolidating or outgrowing their internal data centres a cost-effective alternative to building new facilities or expanding old ones. • And, finally, remote “lights-out” management technology makes administering remote systems easier, allowing IT staffers to even reboot servers remotely. Choosing colocation is a strategic business decision that evolves from thoughtful consideration. Find out more about Care Factor’s Colocation Data Centre solutions today by visiting carefactor.com.
RELIABLE. UNCONDITIONALLY. Just as you rely on the Sun to rise and set every day, so, too, should you have complete confidence that your company’s IT assets are safe and sound. In your dynamic business environment, relying on your IT infrastructure to provide guaranteed uptime for your mission critical data is today’s business imperative. That’s where we come in; as a leader in the provision of reliable, trusted, colocation IT Infrastructure solutions, we take the strain of worrying about your IT assets off your shoulders so you can focus on your core business. Sleep easy in between those sunsets and sunrises.
403.248.6700
800.465.1697
carefactor.com
®
You can fly. Can you soar? We’ll help.
Congratulations to the Prairies finalists for the Ernst & Young Entrepreneur Of The Year 2012 Awards! Learn how we celebrate and support fast-growing businesses at ey.com/ca/EOY.
See More | Growth
Business-to-business products and services Maury Van Vliet, Scott Van Vliet, Todd Van Vliet Environmental Refuelling Systems Inc. Kim Caron Executive Mat Service Ltd. Angela Santiago The Little Potato Company Ltd.
Business-to-consumer products and services Dr. Alan Ulsifer FYi Doctors Dianna Davidson Magellan Vacations Ryan Pomeroy Pomeroy Lodging LP
Cleantech Perry Gerwing Earthmaster Environmental Strategies Inc. Dan Balaban Greengate Power Corporation Evan Chrapko, Shane Chrapko Himark bioGas Dan Guenette, Don Guenette Infratech Corporation
Emerging entrepreneur Ken James Oak Point Energy Ltd. Lyle Michaluk, Cliff Wiebe Poseidon Concepts Corp. Regan Stevenson Sunpeak Multiwise
Energy – privately held Blaine LaBonte Cougar Drilling Solutions Dean Shaver CSI Canada Safety Lance Torgerson Noralta Lodge Ltd. Gerry Chalifoux Petrospec Engineering Ltd.
Energy – publicly traded Don Caron Bri-Chem Corp. Brian Vaasjo Capital Power Corporation Jim Rakievich McCoy Corporation
Manufacturing Henry Friesen Convey-All Industries Inc. Dean Spence Dynamic Solutions/ DSI Thru-Tubing
Professional and investment services Terry Stephenson Blackjack Investments Ltd. David Aplin David Aplin Group David Cronin, Chris Izquierdo DevFacto Technologies Inc.
Real estate and construction Bert DeBruin, Jeanette DeBruin AltaPro Electric Alex Pagnotta, Mario Pagnotta Pagnotta Industries Inc. Jeff Jessamine Sprague Group of Companies Wayne Chiu Trico Homes
Technology Trevor MacFarlane, Glenn Yuen Dynamic Risk Assessment Systems, Inc. Marcos Lopez Solium Capital Tara Kelly SPLICE Software Inc.
Nicholas Donohoe ICI Artificial Lift Inc. Jason Parks Profab Corp.
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Pipelining for 15 Years… in Any Terrain By Mary Savage
W
hen it comes to moving large volumes of oil and gas – via pipelines – through all types of terrain especially mountainous areas, there is one company in Alberta that is the foremost leader in this specialized field: Integrated Pipeline Projects Canada Ltd. (IPP). IPP’s engineering and project management expertise has been called upon for 15 years to complete long-distance, large-diameter pipeline projects through rugged terrain – from conceptual and feasibility studies through detailed design to construction management and field inspection. IPP is one of a handful of engineering companies that have successfully undertaken these unique and challenging projects – making them the go-to company in this highly specialized sector of the oil and gas field in Canada. Founded in 1997 by three men, Tony Griffin, Dave Julian and Rudy Nemeth, the original team had spent their careers working in the industry prior to establishing IPP. As with many startups, the men found themselves with an opportunity to form the business. “We started the company to deliver one largescale pipeline project,” says Tony Griffin, President, IPP. “We believed we could deliver the project very efficiently by working together, so we started IPP. For the first five years, we were a one-project company – taking on one large-scale project at time.” In the years that followed, the late Ron Curle joined the company as the fourth partner and sometime later IPP saw the retirement of Rudy Nemeth. Through the changes and as they completed one project, it would consistently lead to another, and over the years IPP developed a loyal clientele base. IPP has established an excellent reputation for their engineering and construction management expertise, backed by decades of experience. In the summer of 2008, UniversalPegasus International Inc. (UPI), an American-based firm out of Houston, Texas, approached IPP as they were looking to enter into the Canadian market. UPI traditionally completed the same type of work and since their line of work is so specialized, it’s not surprising that a few key UPI employees had forged relations with IPP over the past decade.
Tony Griffin and Tim Zboya
UPI worked with IPP for about a year and in the spring of 2010, UPI expressed an interest in buying IPP, and as they say, the rest is history. “IPP had developed solid relationships with their clients and that spoke to us; they had a very strong reputation in the marketplace,” explains Tim Zboya, Senior Vice President of International Operations, UPI. “One of the things that make the marriage between IPP and UPI so attractive is that UPI is in exactly the same line of business in the U.S., just on a bigger scale,” asserts Griffin. “When it comes to longdistance, large-diameter pipeline projects, there aren’t too many people, in the Canadian marketplace, in our line of work – making it a small community of people.” The last project that Griffin, Julian and Nemeth worked on prior to starting IPP found them working alongside of Zboya. “We worked with Tim during the mid-1990s and that speaks to how small our world is,” adds Griffin.
Integrated Pipeline Projects Canada Ltd. • Pipelining for 15 Years… in Any Terrain
1
PIPELINING FOR 15 YE UPI originally started as a pipeline surveying company that evolved into an engineering firm. Today, they also undertake offshore projects, midstream, pipeline and pipeline facilities. “UPI offers a more diverse line of engineering services and geographic locations with offices in Trinidad, the U.K. and the U.S. As well, they have become an engineering service provider in other hydrocarbon-related areas,” remarks Zboya. As with any large-scale project, there are years of planning involved which includes everything from environmental concerns to creating a safe worksite. “Safety is a big part of our planning: it’s a core value within the company. We are working in remote locations, large pieces of equipment are in use, and the steel pipe is very heavy, so safety is a huge concern for us,” asserts Zboya. “There are two underlying goals with our work: safety and ensuring the long-term integrity of the pipeline. We are hired to design a pipeline that will last,” adds Griffin. Over the past year, IPP has tripled in size. “We are continually striving to make the company a great place to work,” says Griffin. “It’s paramount to attract and retain great employees and in today’s world, that’s a lofty goal. We believe IPP is a great place to work and that’s evident by the many people who have worked with us for a long time.” UPI is very excited to have a company such as IPP working inside the UPI group of companies and looking forward, the company is optimistic the hydrocarbon business will be steady in the years to come. “Given the current state of the industry, there is a lot of opportunity. There is a high demand for development of Canadian petroleum resources and that translates into a lot of additional pipelines needed, so it’s an exciting time to be in this industry,” comments Zboya.
“We are geared for growth and diversification into other areas of the industry. In the last two years, we’ve had a number of successes working together. UPI and IPP complement each other’s resources very well,” adds Griffin. “We’ve built our reputation on tough mountain pipeline projects and currently it seems there is a race to the coast – for both oil and gas – and we are poised to deliver.” Integrated Pipeline Projects #800, 707 7 Avenue SW Calgary, AB T2P 3H6 403.767.9990 • www.ippeng.com
A SNAPSHOT OF IPP’S PAST PROJECTS: Corridor Pipeline Expansion: 463 km of 42” oil pipeline in northeast Alberta. Scope was EPCM, including detailed design, procurement, construction contract documents, construction management and engineering support during construction. TMX Anchor Loop: 160 km of 36” and 30” oil pipeline through the Rocky Mountains of Alberta and British Columbia. Scope included initial routing, regulatory support, expert witness before the National Board, detailed design and engineering support during construction. Southern Crossing Pipeline Project: 301 km of 24” natural gas pipeline through British Columbia’s southeast interior basin. Scope of work included everything from the initial routing to construction management and inspection. The location proved to be extremely challenging as it was routed through the rugged terrain of the Selkirk and Monashee mountain ranges.
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Integrated Pipeline Projects Canada Ltd. • Pipelining for 15 Years… in Any Terrain
ARS… IN ANY TERRAIN WIM M. VELDMAN Consulting Inc.
Partners In Experience and Quality wmveldman@gmail.com • 1-403-650-4758
Congratulations to Integrated Pipeline Projects Canada Ltd. on your 15 Year Anniversary from all your friends at NorCan QA Inc.! NorCan QA Inc. - Canada 780.720.8696
Best Wishes to Integrated Pipeline Projects Canada Ltd.! Calgary Head Office Medicine Hat Office 1100, 815 - 8th Ave S.W. 159 South West Dr S.W. Calgary, AB T2P 3P2 Medicine Hat, AB T1A 8V9 Tel: (403) 265-2885 Tel: (403) 527-4010 Fax: (403) 266-6471 Fax: (403) 527-7655
Hanna Office 218 Centre Street Hanna, AB T0J 1P0 Tel: (403) 854-2212 Fax: (403) 854-2246
Victoria Office 203-830 Shamrock Street Victoria, BC V8X 2V1 Tel: (250) 592-8500 Fax: (250) 592-1633
OnTrack Engineering would like to congratulate Integrated Pipeline Projects Canada Ltd., For 15 years of servicing our Oil and Gas Industry!
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David Dupuis, C.E.T. 9-214 Grande Blvd. W. Cochrane, AB. T4C 2G4 Phone : (403) 932-0560 Fax : (403) 932-0570 ddupuis@completecrossings.com
Congrats to Integrated Pipeline Projects Canada Ltd. on 15 years!
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Integrated Pipeline Projects Canada Ltd. • Pipelining for 15 Years… in Any Terrain
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Marketing Via Golf • Golf
Via
Marketing Images courtesy of Lynx Ridge Golf Club
Golf
Leveraging golf as a strategic marketing tactic gives businesses a longer drive and greater return Heather Ramsay
G
olf holds a multitude of benefits and opportunities for players, on an individual and business level. Not only is it a great sport that combines fitness, coordination and focus, it also fosters personal skill development, and social engagement and interaction. A game of challenge and strategy, golf continues to play a significant role in the social and business climate of Calgary and the surrounding area. According to industry surveys, there is no other place in the world that boasts having more golf participants nationally than Canada. In fact, more than half of the adult population of Canadians plays golf. And while being home to some of the finest private clubs in the nation, Calgary has 60-plus outstanding golf courses that continue to grow in popularity in social and business arenas. Golf tournaments have a long-standing role in business and continue to be readily used as a means of acknowledging clients, associates and suppliers, as well as soliciting ongoing or new business. In addition to the obvious pleasure of getting out for a game, more businesses are recognizing the potential and exponential benefit of marketing via golf. With over 54 per cent of business professionals considering golf to be the “sport of business” and 48 per cent of executives seeing the golf course as an ideal business environment, it is important to know that successful golf marketing starts long before a corporate or charitable tournament and continues well past the event. “Golf is a fantastic way to acknowledge and thank clients as well as get to know them in a whole different way. Tournaments enable businesses to showcase themselves to a captive 88 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
audience for four-and-a-half hours. Where else can you have that window of opportunity to market and foster closer relationships with clients and stakeholders?” says David Robinson, executive professional CPGA and general manager of Lynx Ridge Golf Club. When assessing and David Robinson, Executive Professional CPGA and General Manager of Lynx planning a golf event or Ridge Golf Club tournament, there are four key strategies to consider – direct marketing, event marketing, relationship marketing and knowledge leadership. The combination of these strategies supports an integrated approach and fosters leverage before, during and following a golfing event. With increased touch points and marketing tactics, there is more opportunity for stakeholder engagement, fostering relationships and closing the sales cycle. All of this means quality of contact and an increased level of impact, delivering greater return on the investment than just the event alone. Walter Blackstaffe, director of golf operations at Wintergreen Golf and Country Club in Bragg Creek, explains that it’s about more than big groups and basic tournaments. “With the downturn in the economy, it has been interesting to see more businesses interested in custom tournaments or smaller corporate outings where they come out for meetings
Impact … The Moment of truth
T
here are several swing killers, but the one that ruins many golf shots is the position of the left wrist and hand at impact. We see this in putting, chipping, pitching and all full shots with irons – and yes the driver. We would like to see a relatively flat left wrist at impact. An incorrect, yet common, position at impact would be your left wrist bent with the back of your hand facing upward and your right palm facing upward as well, just after impact. This is an improper release of the club that we are going to call the “flip” (Figure 1). There are several fundamentals, such as alignment and posture, that can contribute to the flip. Alignment – If you are typically aimed to the right of your target, then you may flip, which changes the angle of the club face and aims it left, thus compensating for your aim to the right. Posture – You may be coming up and out of your posture through impact, moving your swing up and away from the ball. An early release or flip will compensate to allow you to make contact instead of missing the ball altogether. This also leads to a loss of power. Hit Impulse and Swing Speed – We try to create as much swing speed as we can by using our hands. Just prior to impact we have a hit impulse and power through with our right hand. This overpowering affects the left hand causing the same flip position. The flip is very hard to improve as it happens in a split second during the swing. The first step to improving this is to fix your alignment in practise sessions. Secondly you need to work on your proper
golf posture. When you Figure 1 have improved both of these, you will then be in a position to improve; now you can start work on the hit impulse. To work at a proper release and to get rid of the hit impulse, try practicing with some small swings using your left arm only, with a flat left wrist at impact. After you feel you are accomplishing this, add some balls at the driving range to make it more fun and see if the balls are tracking toward the target for feedback. Now grow this one-arm swing into a full swing. Finally, overlap your right hand over your left and continue with your practise. You are on your way to discovering the proper release of the club and success in all of your swings. Scott Orban, CPGA Golf Professional Watch video golf tips regularly at www.mckenziemeadows.com.
Always a Great Round
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 89
Marketing Via Golf • Golf
Quality and practicality are critical when selecting promotional products and giveaways for tournaments or any marketing program.
in the morning, enjoy a great lunch and then hit the course for the afternoon. It’s encouraging to see the creativity and new elements that can be incorporated in tournaments during the event and the days after,” says Blackstaffe. Lynx Ridge Golf Club in Calgary is another leading course that has been witness to the benefits of marketing via golf. “We acknowledge and appreciate that our clients need to see the greatest return on their investment in a corporate tournament at our club. We see a significant difference between tournaments where there has been solid marketing and promotion before the event, exceptional planning and then follow-through on the part of our clients. It makes their tournaments better and more successful each year,” says Robinson. “Our team is dedicated to providing the best services and experiences possible. Pair that with great clients who appreciate there is far more to a tournament than guest lists, giveaways and a meal, and you have a great day that creates positive marketing leverage for everyone.” There are the obvious marketing tactics and touch points with any golf tournament, such as sponsorship, suppliers, invitations, promotional products, signage, banquet speeches and presentations, prizes and team photos. These are considered by many to be the staples of a tournament, but they too need to be sourced and selected appropriately to ensure impact and benefit. Deb Bunbury, principal of Perfect Performance in Calgary, has been assisting clients for over nine years with sourcing and selecting promotional products. “Quality and practicality are critical when selecting promotional products and giveaways for tournaments or any marketing program. Branded items are a direct reflection on the business that is distributing them. Items should align with corporate values 90 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
and objectives if they are going to be well received and appreciated. We’re seeing more and more businesses purchasing a variety of useful items for tournaments such as sunscreen, bug spray and water bottles, in addition to the more typical larger prize items,” says Bunbury. In addition to the more traditional marketing tools and tactics associated with co-ordinating and hosting a tournament, there are additional components to consider. Direct marketing not only includes save-the-day broadcasts, invitations and the like, but also interaction via online registration, confirmations, tournament details, rules and etiquette of play, and followup thank you cards and letters. When considering event marketing, tactics should extend beyond signage and sponsorship participation and giveaways to use of fleet vehicles, themed decor, live entertainment, custom catering, interactive activities for volunteers to deliver while on the course, and fun and truly interesting competitions and contests at holes. Creativity and attention to detail are what creates memorable experiences. Relationship marketing weaves throughout every tournament and is the core of the event. Golf is a social event after all. Working with a golf course, suppliers, sponsors and volunteers to create a fantastic event is about managing finite details as well as planning for how individuals will be engaged, hosted and treated during the tournament. It’s important to take advantage of opportunities for introductions, networking, hosting special guests and showcasing people, products and services. Consideration should also be given to social media and post-event interaction. “We’ve seen corporate tournaments with a designated Twitter account where players are invited to tweet updates during the game and engage in dialogue during play. It makes for interesting engagement and entertainment, and takes it to a whole new level,” explains Robinson of Lynx Ridge. “Players get a kick out of sharing their scores and anecdotes, and can interact with other players beyond those on their team.” Social engagement can reach even further to include Facebook, LinkedIn, supplier/ vendor links, articles and stories, testimonials, thank you acknowledgement and additional website or social media content after the event. With these strategies and an integrated marketing approach, businesses are better able to leverage marketing tactics, extend their reach and engage with broader targets and key stakeholders. Through careful event marketing and communications planning, marketing via golf can offer exponential benefit and return beyond the course. BiC
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AUGUST 2012
Breaking it Down for Business New weekly video series helps business make sense of the latest economic developments
“It’s not easy being a business owner in these uncertain economic times. But with a little insight business can not only survive, but thrive.” – Ben Brunnen
I
t’s not easy figuring out what the economy will do next. In fact, it’s downright difficult. And yet, it’s something businesses need to do all the time in order to figure out how they’ll plan their budgets, adjust their sales and market strategies and create new products and service offerings that will align with the changing market conditions.
To help businesses out, the Calgary Chamber has started Breaking it Down for Business, a weekly video series featuring the Chamber’s Chief Economist Ben Brunnen. Every week, Brunnen breaks down the latest economic developments or changing market trends and provides advice on what businesses in Calgary can do to take advantage of these conditions. www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 93
2012 Board of
Directors Executive Dave Sprague – Chair
Glenn McNamara – Immediate Past Chair Leah Lawrence – 2nd Vice Chair Joe Lougheed – Vice Chair (Chair Elect) Rob Hawley – Vice Chair, Finance
pean debt crisis, as well as the possibility of $80 per barrel of oil being a long-term economic trend and the forces that could lead to this outcome. Of course, Brunnen is always interested in your feedback and breaking down issues that’s keeping your business up at night. If you have a question you’d like to ask him to answer during Breaking it Down for Business, please email media@calgarychamber.com. Breaking it Down for Business appears every week in e-connect, the Chamber’s weekly news bulletin. To subscribe, visit CalgaryChamber.com.
“It’s not easy being a business owner in these uncertain economic times. But with a little insight business can not only survive, but thrive,” says Brunnen. So far, Breaking it Down for Business has examined the recent changes in mortgage rules that saw the borrowing period for government-backed mortgages decrease from 30 to 25 years. These changes could really mix things up in Calgary, causing the real estate market to cool slightly while creating new opportunities for mortgage brokers, homebuilders and property renters. Brunnen has also examined the Euro-
Adam Legge – President & CEO Directors Kelly Blackshaw Don Chynoweth Melodie Creegan William Flaig Doug Firby Arlene Flock Eva Friesen Guy Huntingford
Resource Development Tied to Prosperous Aboriginal Communities Chamber publishes a report and business toolkit to improve Aboriginal-business partnerships
Rob Lennard Denis Painchaud Dilan Perera Linda Shea Chuck Szmurlo Paul Waddell Management Adam Legge, President & CEO Ben Brunnen, Chief Economist Craig Watt, Director of Programming & Connectivity & Chief Strategy Officer Michael Andriescu, Director of Finance & Administration Jackie McAtee, Director of Marketing & Communications. Kim Koss, Vice President, Business Development Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary The Calgary Chamber 100 6th Avenue S.W, Calgary, Alberta T2P 0P5 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com
Robin Campbell, Alberta’s newly-appointed minister of Aboriginal affairs
A
boriginal communities are going to play a critical part in Canada’s economic growth in the coming years. More than $315 billion in major resource development projects has already been identified on or near Aboriginal communities throughout the country and that number is likely to increase as land claims are
94 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
settled and pipeline projects to transport Canadian oil move forward. It’s in every energy company’s interest to learn how they can develop prosperous business relationships with these communities. To explore how industry and Aboriginal communities can work better together, the Calgary Chamber started
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“When we are talking about relationships, it has to be more than just a CEO and a chief talking. It has to include the whole community and start from the bottom up.” – Robin Campbell the Aboriginal-Business Connection series in 2011. This speaker and research series brought together leading Aboriginal experts, members of the Aboriginal community and government representatives to share insights on how Aboriginal communities and industry can build prosperous business relationships. The series concluded on June 29, 2012 with the release of a summary report and toolkit outlining the insights gained from this yearlong project. Robin Campbell, Alberta’s newly-appointed minister of Aboriginal affairs, spoke at the final Aboriginal-Business Connection series event, noting that initiatives like these help to build thriving economies. However, for this to happen Campbell said you need to build a business relationship that is founded on trust and respect.
“When we are talking about relationships, it has to be more than just a CEO and a chief talking. If those people leave the relationship can fall apart pretty quickly,” he said. “It has to include the whole community and start from the bottom up.” Campbell also encouraged natural resource companies to turn to Aboriginal workers to help quell the province’s looming labour shortage. By 2020, Alberta will be short 100,000 workers across all industries. Meanwhile unemployment in Aboriginal communities is in the double digits. “I’m sure you can see where I’m going with this,” Campbell said. For a copy of the Aboriginal-Business Connection series summary report or toolkit, visit CalgaryChamber.com.
Upcoming Events From celebrating the city’s movers and shakers to providing businesses with knowledge to grow their business, the Calgary Chamber has an event for every need
September 14, 2012 Gala - Alchemy Award-winning Harvard lecturer and bestselling author Shawn Achor will show people how to reap the benefits of a happier and more positive mindset to achieve extraordinary results at work and in their daily lives.
September 20, 2012 Business After Hours Meet new clients and make new business connections at this business trade show and high-level networking event.
October 24, 2012 Smart Cities of the Future Learn how cities throughout Canada can become innovative and prosperous centres that fuel sustainable economic development and a high quality of life. For more information, or to register, call our events department at 403.750.0400 or visit calgarychamber.com. 96 • August 2012 BUSINESS IN CALGARY | www.businessincalgary.com
By Gord Hawker
AT THE CENTRE OF THE CENTRE
T
A hub of activity, CTCC Guest Services welcomes some 200,000 visitors per year.
hat round, glass “fishbowl” in the main floor of the Calgary TELUS Convention Centre (CTCC) North Building is homebase for CTCC Business Centre/ Guest Services Coordinator Lynn MacMullin-Cudmore and her Guest Services team. The CTCC Guest Services office is a greeting centre; a clearing house for dozens of guest requests through the CTCC’s in-house ‘333’ Helpline; it is a switchboard for incoming external calls; a business centre supplying CTCC guests with copying services, signage, and office resources; it’s even a concierge desk directing wayward tourists to Calgary restaurants and attractions. Most importantly, it is a communications conduit through which the needs of CTCC guests are expedited through to operation teams and then followed up by Event and Sales staff. MacMullin-Cudmore and her teammates Natalie Douglass and Andy Litun see themselves as ambassadors, not just for the CTCC but also for Calgary. “Certainly our focus is on CTCC guests and their needs, but we also deal with tourists, and with local and out-oftown visitors who may not even be here for a convention,” she explains. “But because this is a convention centre, people feel they can rely on us for information and assistance.” Frenzied visitors are a regular occurrence. They may be late for a meeting and don’t know what room it’s in, or they may be in the wrong place altogether. In that case, the CTCC’s Guest Services team will get online or make a call – whatever it takes to help. The team has helped business people who have left cellphones or briefcases in taxis. On one particularly memorable occasion, MacMullin-Cudmore came to the rescue of a distraught German au pair whose Calgary employers abandoned her and her luggage in the downtown core. In addition to calming the young woman, she and her husband invited the au pair to stay with them until the au pair service could find her another job placement. “We problem solve,” says MacMullin-Cudmore. “We’re glad to help because, even though that person may not be a CTCC guest today, someday they may be responsible for planning an event or a convention. And they’ll remember how they were
treated in Calgary.” Being able to respond to a multitude of requests requires CTCC’s Guest Services team to be knowledgeable about Calgary attractions, transit services and more. And because the team fields all calls to the CTCC’s internal ‘333’ Helpline, they must also be knowledgeable about building operations, catering, event services, security procedures and the like in an effort to effectively diagnose the inquiry prior to relaying the request. “We are an extension of all the other departments, a link between them and the customers. Aligning the clients’ needs with the functional aspects of the building – whether it be HVAC, IT or room set-up – requires us to have interdepartmental knowledge and cross-training. By knowing enough about all the various disciplines, we’re able to adapt to meet a wide range of guest requests and ensure successful outcomes.” Asked why the CTCC perennially receives high service ratings among Canadian convention centres, MacMullinCudmore is quick to reply. “There’s a service ethic among us. We are here for the benefit of our guests and for our city. We know we are empowered to make the most informed decisions in order to enhance our customers’ experience. We’re proud of our city and we want to show it in the best light.” It seems at the CTCC, Guest Service is at the centre of the Centre – both literally and philosophically.
CTCC Guest Services Team (l to r) Andy Lutin, Lynn MacMullin-Cudmore and Natalie Douglass. www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 97
Bringing Emerging Technologies to Market
BY ANDREA MENDIZABAL
Company Creation program has what it takes to create advanced tech companies
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algary is home to the largest number of technology startups per capita in Canada1, and a local program is working to boost Calgary’s thriving advanced technology sector. From ICT to clean tech to biomedical engineering, Innovate Calgary’s Company Creation program is helping to transform novel platform technologies into viable and sustainable companies. Innovate Calgary, a full-service organization offering technology transfer and business incubator services to researchers, entrepreneurs and businesses within the advanced technology sector, began its Company Creation program in 2007. Since inception, the program has incubated 18 opportunities, prepared six startup companies for investment and secured more than $8 million in dilutive and non-dilutive financing for Innovate Calgary project companies and spinoff companies. In addition, Innovate Calgary spinoff companies have created new jobs in Alberta’s technology sector. “Working with Innovate Calgary to build our company from the ground up has proven its value repeatedly,” says Greg Ogrodnick, Chief Executive Officer of Circle Cardiovascular Imaging Inc., a graduate of the Company Creation program. “We have taken our cardiovascular imaging software platform technology and developed our company into an emerging global leader in advanced cardiovascular imaging software products. Our first commercially available product, cmr42, is used by more than 125 world-leading hospitals in 25 different countries. Innovate Calgary’s Company Creation program provides traction for success through its team of experts and commitment to deliver innovation into business,” says Ogrodnick. The Company Creation program is designed for very earlystage novel, platform technologies with some technological proof of concept or prototype. It assists with the commercialization of these new technologies by assigning a Company Creation team to lead the early-stage management of the new company. The team is comprised of an experienced Executive-in-Residence and business development professionals. The team works closely with the entrepreneur or inventor to assist with intellectual property development and management, product planning and path-to-market, business planning and financial modelling, and corporate structure planning, while 1
Source: Calgary Economic Development
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also providing access to legal, marketing and communications, and tax planning experts. The program also provides up to $150,000 over two years for technology and corporate development, as well as introduction and assistance in securing additional funding through government agencies, angel investors and early-stage venture capital firms. The end goal is to spin out investment grade, sustainable companies while bringing novel technologies to market. Parvus Therapeutics Inc., an Innovate Calgary spinout company developing nanomedicines that hold the potential to cure autoimmune diseases such as Type 1 diabetes and multiple sclerosis, has also seen recent success having won the very first NanoVenturePrize at the 10th annual TEC VenturePrize business plan competition. “Innovate Calgary’s Company Creation team has been an invaluable resource in helping Parvus Therapeutics Inc. grow from the university research laboratory to a development-stage biotechnology company and one of Alberta’s most promising early-stage life science companies,” says Dr. Pere Santamaria, Founder and Chief Scientific Officer of Parvus Therapeutics Inc. In addition to Company Creation, the program has recently introduced a new Accelerate Service for early-stage companies that are entering the next stage of growth. The service is designed to help accelerate a company’s growth by providing business expertise including business plan writing, financial modelling, market analysis and assistance with funding sources. “Our company was entering the next stage of growth and recognized that we needed guidance on moving into and beyond this stage,” says Michael Loh, Founder and CEO of iConnectivity™, a local company that builds music-enabling products allowing musicians to connect their musical instruments to modern portable devices. “Through the support from Innovate Calgary’s Company Creation team, we have redefined our company structure and developed strategic business and marketing plans, making us an attractive investment such that we have secured funding from various private and government groups. We are now prepared to move to the next stage of our company growth,” says Loh. For more information on Innovate Calgary’s Company Creation program and new Accelerate Service, contact Jeremy Krol, Manager, Company Creation at 403.775.1860 or visit innovatecalgary.com/company-creation.
Lost Opportunity BY RANDY WILLIAMS
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ourism generates tremendous economic activity and creates much-needed employment and yet Canada’s national tourism marketing organization is facing continued cuts to its funding and as a result international visitation to our country has been sliding for the past decade. In Canada, travel and tourism is a $74-billion industry, roughly equivalent to that of the fisheries, forestry and agriculture sectors combined. The industry accounts for 1.6 million jobs or roughly one in 10 of all jobs in Canada, only exceeded by manufacturing and retail. In Calgary alone, $1.3 billion is being spent by visitors in more than 5,900 tourism-related businesses that employ close to 70,000 Calgarians. Canada’s national tourism marketing organization, the Canadian Tourism Commission (CTC), is faced with a continually shrinking budget with which to attract international travellers. These travellers are important to the tourism economy as they spend more than $1,500 per trip whereas domestic travellers spend just more than $550 when travelling within Canada. There has been a significant erosion in base funding for the CTC over the past decade. In 2001 the CTC funding was $99 million. In 2012 it will be only $72 million and by 2014 the funding will be reduced again to only $57.8 million. Parallel to the decline in CTC base funding is a decrease in international visitation. Canada is one of only four of the top 50 countries to have experienced decreased visitation in the last decade. With a decrease in funding levels, the CTC has had to cease marketing efforts in international markets including Brazil, Italy, Holland, Spain, Switzerland
Restoring Canada back to the top 10 in foreign arrivals would bring 5.7 million more visitors, drive $5.2 billion more in revenue and create 46,900 more jobs and Taiwan. In key source markets for Canada, which represent more than 90 per cent of tourism exports, Canada’s share has dropped from 24.5 per cent in 1996 to 12.5 per cent in 2011 and is projected to continue to drop to 9.3 per cent by 2015. The percentage of Canada’s tourism revenue coming from international travellers has dropped from 35 per cent a decade ago to 20 per cent currently. But Canada’s domestic market cannot continue to be the solution. For one, it is less lucrative, and it has inherently limited growth potential because of Canada’s small population size. Furthermore, Canadians are now the sixth fastest growing international source market meaning Canadians are travelling more internationally putting the domestic market at risk. Canada is currently being outspent 2:1 or 3:1 by key competitors such as Australia and South Africa. And the United States is just now entering the fray with a recently launched $200-million national tourism marketing organization. The CTC is an effective marketing organization. And though Canada’s share of the growing tourism pie is shrinking, the Canadian tourism brand is enjoying a second year at #1. Strong brand interest is not converting into arrivals however, as Canada has dropped to 15th in foreign arrivals. Obviously a strong brand is a great starting point, but when it isn’t promoted sales falter
and potential is not reached. Restoring Canada back to the top 10 in foreign arrivals would bring 5.7 million more visitors, drive $5.2 billion more in revenue and create 46,900 more jobs – a significant return on investment. The CTC, backed by industry partners, is proposing several options to stop the decline in its funding and close the gap with its ever-increasing global competition. One option currently under consideration is a levy on arrivals for international visitors only that is dedicated to be reinvested in demandgenerating tourism marketing. This approach is similar to other destinations that have viewed it as good policy. A second option would dedicate a percentage of GST collected on tourism exports to be reinvested into demand generation. Canada is the only G8 country with a national value added tax (VAT) that does not provide a whole or partial rebate to the travelling public. Canadians are currently paying levies to other countries of between $700 million to $1 billion per year when they travel abroad. Part or all of these levies are then used to directly fund the tourism marketing of other countries as they compete against Canada for tourism export revenues. Both options have been thoroughly researched and modelled and both would provide significant net benefits to the economy including the creation of jobs and the generation of incremental tax revenue for governments.
www.businessincalgary.com | BUSINESS IN CALGARY August 2012 • 99
Even Richard Florida Agrees: the Future of Work is Now BY ROBYN BEWS
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hat do WORKshift and Richard Florida have in common? (Aside from general “awesomeness”?) Last month the Martin Prosperity Institute (the world’s leading think-tank on the role of sub-national factors – location, place and city-regions – in global economic prosperity led by Richard Florida) blogged about telework. Specifically, the blog relates to the feeling that while Canadians are among the most creative labour forces in the world, we are lagging in productivity which will pose a long-term issue for our country’s sustainability and competitiveness. Not only that, the author argues beautifully (and accurately) that a lack of investment in ICT in Canada is in part to blame (and this despite our growing and impressive ICT industry). He then declares that a great example of the benefits of ICT investment is teleworking (of course, we knew this already which is why we have been investing in the program for three years). Perhaps what is most exciting for Calgary Economic Development, however, is that the second half of the blog is entirely dedicated to WORKshift
and Calgary as leaders in adoption of telework. He concludes with a call to action, asking Canadians to “get with the times” and telework. We have been reporting for the past year that Calgary (and telework) is at the “tipping point” and to see an institute like the one led by Richard Florida showing such blatant enthusiasm for our program indicates the accuracy of our claims. If nothing else, this blog demonstrates that the WORKshift concept is here to stay, that the practice is an urban strategy that thought leaders are taking seriously, and that its applicability is ubiquitous. We’re pleased to see the word Calgary associated with a blog that praises our investment in technology and innovative thinking, especially coming out of an institute based in Eastern Canada. To read the Martin Prosperity Institute blog about telework, visit http://blog.martinprosperity.org/2012/06/productivitycreativity-and-technology-the-case-of-teleworking/. To learn more about WORKshift, visit www.workshiftcalgary.com.
Calgary’s Energy Sector Welcomes the World BY PAUL PAYNTER
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n June 2012, Calgary once again hosted the Global Petroleum Show, which is considered one of the world’s largest energy events. This year over 63,000 attendees gathered to visit over 2,000 exhibitors, to develop new and potential industry relationships, and to discover the future of emerging technologies. Calgary Economic Development was there, promoting job opportunities in the city through our workforce management team and our Calgary. Be Part of the Energy campaign. In addition to the people-attraction focused outreach, our energy and international trade Business Development Managers were on hand to distribute Calgary Economic Development’s new energy sector profile. With industry information, statistics and listings of key players, the energy sector profile reflects Calgary’s growing reputation as a – some might begin to say THE – leading global energy centre. After all, in Calgary you can already find the head office of nearly every major oil and gas company in the country. Calgary is also the home to the industry’s major trade associations, pipeline operators and manufacturers, oilfield service companies, drilling companies, energy-related engineering firms and consulting firms. Canada’s national energy regulator (the National Energy Board), the Alberta Energy Resources Board, Alberta Utilities Commission, the Canadian Association of Petroleum Producers, the Petroleum Services Association of Canada and numerous other industry bodies and associations are all headquartered in Calgary. But it’s not just headquarters and associations that make
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Calgary a leading energy centre. It may surprise some that Calgary, as a leading member of the World Energy Cities Partnership, hosted the signing of the Calgary Climate Change Accord in 2009, which committed signing cities such as Houston, Aberdeen, Perth and Stavanger to ambitious carbon dioxide reductions. For the last two years, Calgary Economic Development has led trade and investment missions to countries like China and Colombia, attracting new investment into Calgary and creating international business partnerships that will help to strengthen Calgary and Alberta’s place in the global energy market. Calgary has also promoted the sustainable and renewable energy sector, hosting the Global Clean Energy Congress in 2011, along with seven of the finalists in the Virgin Earth Challenge, which will return to Calgary in fall 2012 as part of the International Sustainable Energy Congress. With an abundance of solar, wind and geothermal potential to go with the huge oil and gas reserves in Western Canada, Calgary and Alberta are leading the way in the development of innovative energy solutions. As catalysts and conduits for economic growth and sustainability in our city, Calgary Economic Development is proud to support the energy industry through our international investment and trade missions, events such as the Global Petroleum Show, and publications such as the energy sector profile – ensuring Calgary continues to be a centre for all things energy. To learn more and read the sector profile, visit www.calgaryeconomicdevelopment.com.
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David Parker • MarketingMatters
MarketingMatters
By David Parker
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t doesn’t seem that long ago – in my days at Francis Williams & Johnson Advertising and Public Relations – that advertising firms were indeed agencies of record handling all of the requirements of clients. Then came the era of boutiques with companies dividing their marketing between specialist creative houses, public relations professionals, web designers, brand strategists, researchers and humble writers. They still do but some people like Jacqueline Drew, even with 20 years of experience as a business strategy consultant, feel the need to share ideas with close associates and use them to keep ahead of the quickly changing industry. Drew has been a sole proprietor of a one-woman show called Start Marketing for 15 years during which time she has helped a multitude of clients in a variety of industries as well as providing radio, TV and newspaper columns and for a time served as board member and executive director of the Inglewood BRZ. The character of Inglewood suits her fine and she still has her offices above the Garry Theatre, but at least once a week she gets together with her new associates under the banner of Tenato Strategy. The name is a combination of two terms: Tenacity – representing its “up and do” attitude; and Tenato – a musical term meaning to hold a note to its full value. Little wonder that music is included as Drew is an accomplished solo singer/songwriter with two country/ folk CDs to her credit.
Tenato Strategy has been established as a coming together of people who know the tools and trends with those who understand strategic aspects and how to apply them to business. Drew has “linked” with associates Judi Gunter, a PR strategist and fellow of the Canadian Public Relations Society (CPRS) with more than 30 years of experience; accredited certified market research professional Joanne O’Connell, who adds another 30 years in the business; Steve Speer, design and brand strategist, award-winning graphic artist and accomplished photographer; in-line marketing strategist Calin Daniel; and adjunct associate Thomas Cheung, who has focused on China trade while publishing a weekly newspaper for our Chinese community. Their first collaboration was the successful launch of Building on the Bow, a commemorative book by BOMA Calgary in which Speer provided all of the photographic images. •••••••••••••• Richard Truscott, director of provincial affairs for the Canadian Federation of Independent Business (Calgary), was elected national president of CPRS at its annual general meeting held in Victoria, B.C. Prior to his position with CFIB, he was senior PR strategist with Venture Communications creating PR campaigns for the likes of Toyota, Encana and the Forzani Group.
energy” tagline is fine, it is displayed under an unimaginative type design. Each staff member carries business cards sporting different sayings in a variety of colours on the reverse side – but surely they only give one away at a time to a new contact. •••••••••••••• Many companies threw parties during Stampede but not many could brag about having a star performer like Paul Brandt at their event. A client of Brookline Public Relations, Brandt helped principal and founder Shauna MacDonald and her all-female crew celebrate another successful year at a Chicago Chophouse celebration. Among the highlights was handling the press office for the 2012 Global Petroleum Show that attracted over 63,000 visitors, 2,200 exhibits and represented 95 countries. And upcoming is its contract as agency of record for the Calgary Home + Design Show (held September 20-23, 2012) and the Home + Garden Show. Success helps it to provide in-kind communications services and work closely with the Canadian Breast Cancer Foundation, CIBC Run for the Cure and ACE Canada. •••••••••••••• E=mc² event management has rebranded itself as simply e=mc² events – or president and CEO Jocelyn Flanagan says it’s OK to simply call it “e” if you like.
•••••••••••••• I have to use some space to say how disappointed I am with the new logo for Calgary Economic Development. It seems that its executive were determined to get rid of the cowboy hat, which in my opinion is a huge mistake, and although the “part of the
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Parker’s Pick: I haven’t had a Molson since it closed our brewery – but I did applaud the return of Calgary Beer and its buffalo logo for Stampede.
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