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Financial Ups and Downs Let’s Ask an EOer
Managing cash flow and financial juggling
S
ome of the benefits of entrepreneurs managing and navigating the good times are vision, emotion, the adrenalin rush of risk taking and the business reality that, despite what the consultants say, it’s all personal.
member and president of Melrose Inc., providing financial acumen and skills to entrepreneurs. “Sometimes emotions cause the entrepreneur to overreact. They are opportunistic risk takers and they like to think they have control of situations.
Some of the challenges of entrepreneurs managing and navigating the tough times are vision, emotion, worrying about risk taking and the business reality that, despite what the consultants say, it’s all personal.
“Sometimes they don’t properly evaluate risk,” he cautions. “They must be strategic business thinkers, realize that financial planning is a fluid process and they must have contingencies in place.”
A fact of business life, especially for entrepreneurs, is managing during up cycles and down cycles – especially when it comes to cash flow and financial juggling. “Entrepreneurs don’t always have a high level of finance literacy,” says Derrick Hunter, EO Calgary member and president of Bluesky Equities. “Gross generalizations are faulty and unfair but entrepreneurs tend be creative, determined and usually dynamic. Typically they come from the sales or technical side and tend to be focused more on product innovation than finance.” David Tadman, EO Calgary member and partner at Stawowski McGill and Partners LLP, agrees. The issue is absolutely not reckless financial irresponsibility as much as the genes and the mindset of entrepreneurs. “Unlike in a big organization, with entrepreneurs decisions are personal. And the fine line between personal and business gets faded. Building something and making it grow is their destiny. What drives them is not profit. Managing finances almost becomes secondary. Profits are often just a scorecard.” Blame one of the most common perks and curses of being an entrepreneur, according to Gene Vollendorf, EO Calgary
“We don’t teach financial literacy in high school or even basic university,” Hunter says. “Small companies must plan and budget and have financial discipline. Monthly financial statements and variance reports are a must. They should have a long-term plan about where they want to be in one, two, three years and beyond. If you don’t know where you’re going, any road will get you there.” “It’s easier said than done,” admits Tadman, “but it’s about the entrepreneur having proper clarity of vision. Understanding what the options and outcomes are and the effects of decisions. ‘No plan’ is no way to run the business.” Vollendorf notes that “entrepreneurs must deal with fixed and variable costs in their business model and pay more attention to the day-to-day payables and collections. A good rule of thumb is six months to one-year cash on the balance sheet at all times.” Despite the common pitfalls of emotions and taking the business personally, all three Calgary-area entrepreneur specialists share the consensus that downturns are much more stressful for smaller organizations than well-oiled big corporate machines. “Today is usually come and gone. Tomorrow matters more,” Vollendorf smiles.
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The international Entrepreneurs’ Organization (EO) is the respected, world-wide business networking group — with more than 10,000 members in 35 countries — where business leaders meet informally to brainstorm, compare notes, learn and share relevant discussions about business. EO has 122 chapters around the world, including the Calgary chapter which is the fifth largest and one of the most active EO chapters in the world.
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Supporting the visions of entrepreneurs one story at a time
Contents
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Volume 25 | Number 7
PUBLISHERS
Pat Ottmann & Tim Ottmann
On our cover…
EDITOR
Business in Calgary’s 2015 Leaders Awards recipients
John Hardy
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REGULAR CONTRIBUTORS Richard Bronstein Frank Atkins David Parker
THIS ISSUE’S CONTRIBUTORS Colleen Wallace Christy Nich Parker Grant Dan Cooper Rennay Craats Andrea Mendizabal
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Supporting the visions of entrepreneurs one story at a time
Contents
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Volume 25 | Number 7
79
THIS MONTH’S FEATURES 14
• Urbanomics | Urban Development Discussion: Managing the Paper Trail
Dealing with needs not wants By John Hardy
28 • Strategizing The Guessing Game during the global glut
By Dan Cooper
79 • The Calgary Malls: Alive and Well and Booming strategy of shopper likes and dislikes
By Parker Grant
85 • Stampede Morphing the Legend as a year-round business
85
By John Hardy
89 • The Market Flux Calgary real estate market has surprises
By Christy Nich
101 • Some The Best from the Best of Calgary’s top golf gurus share their best advice
By Colleen Wallace
COMPANY PROFILES
97 • Celebrates Q Haute Cuisine 10 Years Culinary Chemistry at Q Haute Cuisine
REGULAR COLUMNS
10 • As the World Turns
12 • Calls For Another Redundant Costly Law
By Richard Bronstein
By Frank Atkins
91 • Leading Business 105 • The Calgary Report Current developments for Calgary Telus Convention Centre,
Tourism Calgary, Calgary Economic Development, and Innovate Calgary
110
• Marketing Matters By David Parker 8 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
101
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As the World Turns • Richard Bronstein
BY RICHARD BRONSTEIN
As the World Turns
S
o Norway is now Alberta’s newest BFF. It’s hard to keep track of the number of times Norway’s sovereign fund – their version of the Alberta Heritage Savings Trust Fund – is being discussed in the province. And that is good because Norway has saved approximately $900 billion dollars while Alberta has saved only $16 billion. Norway got the idea from Peter Lougheed but managed the job much better than the chain of lackadaisical Progressive Conservative governments who followed him. I’ve been ranting about this for over a dozen years in this column, so it’s good to be having this conversation now because we obviously have much to learn. There is someone else we should be paying attention to these days – Saudi Arabia. At a meeting of international oil ministers on June 4 in Vienna, the Saudi government was touting the country’s plan to spend an estimated $109 billion to develop solar power. “Instead of exporting fossil fuel by 2040 – and even before that – (we could be) exporting gigawatts of electricity – how does that sound?” the Saudi oil minister, Ali al-Naimi, told the Guardian, Bloomberg and the Financial Times. That sounds positively revolutionary to me. The world’s largest oil exporter turning into a global power in solar and wind energy. To be fair, Saudi Arabia first announced this project back in 2011 and not much has been done to date to build its 40-gigawatt solar power sector. There is the matter of a war in neighbouring Yemen, general instability in the Middle East, and succession issues within the ruling royal family. There is also the fact that Saudi Arabia has been one of the strongest voices against climate change actions. Now it is touting a plan to make the country powered by 100 per cent renewable energy within the next couple of decades. Do they know something we don’t? According to the experts who follow these things, Saudi Arabia is signalling to oil producers and companies they must plan for an energy transition in the near future. “If Saudi Arabia is starting to hedge its bets by developing solar capacity, this could change the fundamentals of the oil market,” said James Leaton, head of research for the Carbon Tracker Initiative. 10 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
And Saudi Arabia is not alone in this stunning venture. Kuwait and the United Arab Emirates are also spending huge sums to transition from relying on oil for domestic electricity production to renewables. This new vision is one “I would encourage all OPEC members to take seriously,” said Royal Dutch Shell CEO Ben van Beurden at the same meeting. “Not least because I believe 20 years from now, if we don’t act, global public opinion will be unforgiving.” Here the Shell CEO is not talking about incurring the wrath of Greenpeace or Grannies Against GHGs. He is talking about the growing UN-supported divestment campaign to encourage investors to sell their stocks in fossil fuel companies because coal, oil and gas are seen as endangering the climate. A major international asset manager just recently announced it was selling off 500 million euros of coal company stocks, the biggest single divestment so far. Universities such as Stanford, Syracuse and Glasgow have also committed to divest from fossil fuel holdings. At the G7 summit that opened on June 7 in Germany, seen as a warm-up act for the big climate change conference this December in Paris, Canada was already being slagged by nearly everyone for being a climate laggard. Nobody believes Canada is going to come anywhere near meeting its 2020 carbon reduction goals, much less developing plans and strategies for even stricter emission limits to be set for 2030. In light of where the world is going, how does our good old Alberta Advantage stand up now? We certainly don’t know how to save our resource revenue. Instead we cling to the foolish notion that not having a sales tax is a better proposition than nesting away hundreds of billions of dollars in our Heritage Savings Trust Fund. We don’t have an effective climate change strategy when all reason tells us that spewing unlimited carbon into the atmosphere is not a good idea for the health of our children. We have a superstitious belief in the evil of carbon taxes, when it has been proven over and over that jurisdictions with effective carbon taxes do very well economically. We have no serious renewable energy strategy when the rest of the world is racing in this direction. I have seen the enemy, he is truly us. BiC
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Calls For Another Redundant Costly Law • Frank Atkins
BY FRANK ATKINS
Calls For Another Redundant Costly Law
C
onsidering that I grew up in a union household, my transition to strong support of free markets and lack of government intervention appears quite remarkable, at least to me. I suppose that this is sort of like the transition of David Frum, who grew up in a CBC household led by his famous mother Barbara Frum, who for years was the host of CBC’s As It Happens. In my younger more leftwing days, I was a constant listener of CBC radio, and a fan of As It Happens. It was only after I began to study economics that I came to the realization that excessive government interference was actually having a detrimental effect on the economy. It is certainly true that there are members of society who cannot take care of themselves, and we have programs to support those people. I would never object to that type of government policy. However, once governments started helping the people who actually needed help, it was as if they could not stop themselves. Part of the reason for this must be that there is a small vocal group of Canadians who see societal and economic evil around every corner, and they loudly lobby the government for change to correct these evils. They also loudly applaud the government whenever legislation is enacted to fight this evil, be it real or apparent. By definition, elected governments just love perceived support from the public. What makes the above discussion relevant is that in early June in Calgary there was a horrific event
Some individuals will say that enacting this legislation will prevent deaths in the future from this type of crime. This may be true, but the industry was already moving towards making changes that would do exactly what the legislation would do. involving individuals in a stolen car who attempted to leave a gas station without paying. What made this event horrific was that the attendant working at the gas station was run over and killed by the individuals who stole the gas. I do not wish to downplay the severity of this incident, the loss of life due to what can only be described as a petty crime is a terribly tragic event. However, the public and press reaction to this tragedy was something that I found misguided. Gas-and-dash, as it is euphemistically called in the press, has been around for a long time. Gas stations have been fighting this problem by installing payat-the-pump machines in their stations. Immediately following the incident, there were calls for legislation that
12 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
would make it mandatory to pay at the pump or prepay before purchasing gas in Alberta. Apparently British Columbia currently has this type of a law. Some members of the press were using this as a justification for bringing in the law in Alberta. What made this reaction particularly puzzling is that one of the first individuals to call for this type of legislation was the owner of the gas station. He stated in an interview that his chain of stations was in the process of installing pay-at-the-pump machines. So, here we have a gas station chain that is in the process of installing machines that would stop this type of senseless crime, calling for legislation to make it mandatory to do what the chain is doing already. It is costly to bring in new legislation, and costly to enforce new legislation. Given this, I cannot see the justification for bringing in this new legislation. However, I predict that the government will bring in this legislation, as it is perceived to be a very popular thing to do. Some individuals will say that enacting this legislation will prevent deaths in the future from this type of crime. This may be true, but the industry was already moving towards making changes that would do exactly what the legislation would do. The end result may be that we will have another redundant costly law to enforce. BiC FRANK ATKINS IS RESEARCH CHAIR OF FINANCE AND CAPITAL MARKETS AT THE FRONTIER CENTRE FOR PUBLIC POLICY.
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URBANOMICS | Urban Development Discussion
Managing the Paper Trail Dealing with needs not wants |
O
BY JOHN HARDY
f all the basic and hot issues, talking points, agreements and disagreements that impact urban planning and the building of a strong and dynamic Calgary community, two taken-for-granted truisms are undisputable: • Directly or indirectly, the homebuyer ultimately pays for everything. • In new homebuilding and development (as in other businesses) time is money. A standard topic and concern in the management offices of most Calgary-area developers as well as on the agenda at virtually every meeting between UDI Calgary and the city are formal references about the mandatory paper trail that is part of the planning and development process. Although most area builders take it in stride that it’s part of the workload and the routine, privately, some admit that it can get extremely frustrating. The official menu or the process is Calgary’s Building Permit Complete Application Requirement Lists (CARLs). It includes reams of pdf and hard-copied schedules, forms and brochures. Most developers begrudgingly accept that the paper trail is part of the process and despite some city staff rebuttals that some submitter paperwork is sloppy and harder to process, it is a common bone of contention in most municipalities. Processing delays take time. And, despite the clichéd A to Z parts of planning and building and development – time is money. 14 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
“Calgary has become one of the more onerous municipalities in North America for builders and developers to do business,” warns Calgary-based Marcello Chiacchia, general manager of Genstar Development. “Part of the problem is having to deal with more and more policy. It all started with a lot of sustainability and environmental policy. Maybe part of the problem is a lack of understanding from the industry as well as city administration about how to properly apply the policies.” Trevor Dickie, vice president Calgary land with Dream Development and also an active member of UDI Calgary, agrees with the need for more discussion, collaboration and empathy between the city and developers. “There is progress. The city has created some more clear definitions in The New Community Guidebook that outlines the framework and development of new areas and the plans for how the city will be laid out. There needs to be a detailed review of the process, maybe at the macro level. We must come up with a new and much more efficient system for completing area structure plans,” he urges. Unfortunately, many business people and consumers are unaware that it’s never, ever, as simple as buying the land, getting it approved and build. Developers pay upfront for the planning and engineering of the community, the design of efficient and safe traffic flows, deep utilities (such as water, sanitary, storm and service connections) to the placement of utilities (electric, gas, cable, telephone), the construction of
“Everything we do should be evidence-based not opinion-based or agendadriven. We must meet the needs, not the wants. And we should not demonize one group against the other. Because all that matters is what’s best for Calgary.” ~ Sean Chu
Trevor Dickie, vice president Calgary land, Dream Development.
Marcello Chiacchia, general manager, Genstar Development Company.
surface improvements (parks, open space areas, roads, curbs and gutters) and more. Not unique to Calgary, and an increasingly contentious topic between developers and municipalities, are the various levies, what they cover and, especially when it comes to infrastructure, who should pay for what? Primarily because (as most developers reluctantly admit) when the price points and bottom lines are set, the homebuyer pays! And contrary to some cynicism, it doesn’t impact the profit margins of builders as much as the affordability (and unaffordability) of the market. “A current big topic is levies for redevelopment areas,” Dickie points out. “Components like sewer and water treatment plants are easier to calculate but other details get tricky. Work is now being done to quantify the service capacity of established areas. But as a vital part of doing business, developers need certainty about actual costs.” “Those who benefit from growth should pay for it. It’s an important principle,” Chiacchia says with conviction. “Some significant pieces of infrastructure should be dealt with differently than others. Like interchanges, rec centres and overpasses. Of course developers should pay their fair share but governments should also pay their share. Things like acreage assessment should be reviewed. Our costs in
Calgary Ward 4 Councillor Sean Chu.
suburbia are more clearly defined. Some people think the city puts in roads, sidewalks, etc. “All costs are eventually passed on to the homebuyers. Suburban homebuyers pay for everything. When it comes to redevelopment levies, the condo or semi purchaser should all pay their share. There’s questions whether they do or not.” Calgary’s Ward 4 Councillor Sean Chu suggests a solution based on adjusting the approach, on both sides. “Everything we do should be evidence-based not opinionbased or agenda-driven. We must meet the needs, not the wants,” he says. “And we should not demonize one group against the other. Because all that matters is what’s best for Calgary. “The No. 1 issue for the development of our city is time delays. There is way too much red tape and a silo mentality. Too many departments and too many levels of approval. I have heard that it can take six months just to process a basement reno permit and that the paperwork gets lost three times. Developers tell me approvals and building permits can take as long as four years. That’s ridiculous!” Chu scoffs. “Of course the process and good work takes time, but we urgently need a central hub to make the process more efficient, to make decisions for the whole city and we have to push people to do it faster.” BiC businessincalgary.com | BUSINESS IN CALGARY July 2015 • 15
Off the Top • News
Woodridge Charity Golf Tournament Celebrates 30 Years
Woodridge Charity Golf Tournament Volunteers celebrate the 2014 results.
This August 24 more than 200 golfers will tee off at Cottonwood Golf and Country Club for the 30th Woodridge Charity Golf Tournament. Some are great players, others not so good, but one thing is certain: everyone is guaranteed a great time while raising funds for a fantastic grassroots Calgary organization. The tournament started in 1985. “We played at Shawnee Slopes with 72 golfers,” recalls Gerry Wood, president, Wood Automotive Group. “We raised enough money to purchase and donate a HandiBus. It was a great deal of work but it was such a positive experience that it inspired us to grow.” It’s been a tremendous success every year. In 1986 the tournament moved to the Glencoe Golf and Country Club and then in 1993 to Cottonwood. In 29 years the tournament has raised $5 million dollars. For a decade proceeds were dedicated to the Calgary-based Canadian Down Syndrome Society (CDSS). Gerry and his wife, Elaine, were instrumental in founding CDSS which assists individuals with Down syndrome and their families. Tournament donations also went to the Down Syndrome Research Foundation. In the late 1990s, the focus turned to the Woodridge PREP program. Managed by executive director Barb Tien, PREP is dedicated to the inclusion of individuals with Down syndrome in school and community life. PREP, which provides a wide range of programs for children and
youth, is near and dear to the hearts of the Wood family. The tournament also supports the inclusive post-secondary program at Mount Royal University. The tournament has attracted its share of celebrities over the years. “Jim ‘Bearcat’ Murray has been with us every year and former NHLer and colour commentator Doug Barkley is a regular but there have been so many others,” says Elaine. The list includes Lanny McDonald, Jim Peplinski, Perry Berezan, Jamie Macoun, Joel Otto, Colin Patterson and Ken King and Stampeder Dave Dickenson who all still call Calgary home. Los Angeles Kings coach Darryl Sutter also has a close connection to the tournament and to the PREP program. “But it’s our friends, our customers and our partners who really make the tournament so successful,” adds Gerry. It takes the organizing committee five months to plan the tournament and a special thank you goes to the team of 60 dedicated volunteers who run the event. “We are so deeply humbled and forever grateful to all of our friends who have supported the Woodridge Charity Tournament over the past 30 years,” says Elaine. “Without them, we couldn’t have done it,” adds Gerry. For more information about the 2015 Woodridge Charity Golf Tournament and to register online, please visit www. woodridgegolf.com. BiC
businessincalgary.com | BUSINESS IN CALGARY July 2015 • 17
PROFILE
Arthur Smith – A man who left a legacy of inspiring others to end homelessness in Calgary By David Parker
T
he late Arthur R. Smith, OC, AOE, DFC, Hon. LLD, was a city alderman, MLA and federal MP and was passionately proud of this city. He was always ready to boast of his love for it whether at a Stampeders home game or as the Canadian delegate to the United Nations. Smith always put his heart and soul into making Calgary a better place in practical ways like persuading Mayor Ralph Klein to create the Calgary Economic Development Authority and then working hard as co-chair to make it happen. Smith also facilitated the Alberta Economic Development Authority. He continued his interest in the air force as honorary colonel of 4 Wing Cold Lake, the only person to be so named; was honoured with the naming of the SAIT Polytechnic Art Smith Aero Centre; and fought with council to erect a statue to commemorate fallen Alberta airmen outside city hall. It was a no go – so he convinced the provincial government that the right place was outside McDougall Centre. In 1998, at the age of 79, he became very concerned with the plight of the homeless. While he and his wife, Betty Ann, were driving home one evening, they heard on the car radio that too many people in his city were without a roof over their head. He was embarrassed – enough to make a visit to a shelter the next day to find out for himself; and he was shocked to discover how big a problem it really was. Smith set out on another crusade, this time to bring hope and dignity to vulnerable people and, thanks to his vision, efforts and counsel, the Calgary Homeless Foundation was created and later formed Calgary’s Plan to End Homelessness in 10 years. He campaigned to civic and provincial governments and within his huge network of friends and members of the business community to raise awareness and persuade them to give back to their community to help solve the problem. One of those friends is Sam Kolias, CEO of Boardwalk
Arthur Smith and his wife, Betty Ann
Rental Communities, who says, “Calgary is well known as the city with a ‘can-do’ attitude and it is truly an honour to sit alongside so many Calgarians who believe what Art Smith believed as a member of the RESOLVE Calgarians Committed to Change Cabinet. Art always believed in the power of our Calgary community and he never had any doubts about what we could achieve together.” Kolias adds, “Arthur was a truly great Calgarian and community leader, and he is dearly missed since his passing in 2008 – yet his community spirit lives on in all of us.” It lives on in the commitment other business leaders have made to become involved with RESOLVE and achieve its goal of raising $120 million to build affordable and supported housing for 3,000 people. And it lives on through his dear wife, Betty Ann, who graciously agreed to be honorary patron of RESOLVE.
RESOLVECalgary.ca
RESOLVE is a partnership of nine leading social service agencies with one simple goal: building affordable rental housing for 3,000 homeless and vulnerable Calgarians. We’re working directly with government, business and community leaders to put roofs over heads and end homelessness in Calgary. Learn more at RESOLVECalgary.ca
We’d like to recognize our Cabinet of business and community leaders for helping make RESOLVE a reality. Honorary Patrons: Dick & Lois Haskayne Steve Snyder Betty Ann Smith
Alan Norris, Chair John Brussa Trevor Daroux Stephanie Felesky Randy Findlay Charlie Fischer Jim Gray
Bob Hamilton Tim Hearn Craig Hill Ken King Sam Kolias Ann McCaig Grit McCreath
Bill Sembo Michelle Thrush Mac Van Wielingen Chris Wallace Jay Westman
RESOLVE is a partnership of:
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2015-05-15 2:27 PM
Off the Top • News
Left: Symons Gate will be an urban lifestyle with breathtaking prairie views and vibrant amenities like the Symons Valley Ranch Farmers’ Market, restaurants and several trails for walking, running and biking.
Brookfield Residential’s Hudson rendering.
Jayman MasterBUILT’s Emerge rendering.
Morrison Homes’ Henderson rendering.
Symons Gate The dynamic growth of Calgary is more than just an exciting story. It is also a Brookfield Residential legacy. After 55 years of being an integral part of Calgary’s growth and creating 60 unique neighbourhoods, Brookfield Residential recently launched Symons Gate, on Symons Valley Road. It is Brookfield’s 61st and newest community and will eventually be home for 4,000 people. For years, the real estate cliché used to be location-location. Today’s consumer has changed all that. The priorities still include location, as well as lifestyle needs and wants, comfort, quality, workmanship, value and affordability. “Symons Gate will be all that and more,” says Wendy Jabusch, vice president of Calgary homes with Brookfield Residential. “An urban lifestyle with breathtaking prairie views and vibrant amenities like the Symons Valley Ranch Farmers’ Market, restaurants and several trails for walking, running and biking.” She mentions the limited supply of affordable new homes in north Calgary. “Symons Gate will be special. With pleasing streetscapes, choice and design selection, value and the affordability of superb new homes.” Brookfield Residential has partnered with two of Calgary’s most popular and award-winning new homebuilders – Jayman MasterBUILT and Morrison Homes – as well as its own homebuilding division to make it all happen. The solid success and reputation of the three popular builders 22 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
combines with their tremendous expertise about new home designs, layouts, features and amenities. They know what contemporary Calgary homebuyers expect in a neighbourhood, and what they demand in an affordable, new home! “We are thrilled to partner with Brookfield Residential, sharing the unique Symons Gate opportunity,” says Michael Klassen, sales manager at Jayman MasterBUILT. “This neighbourhood will quickly become the ideal place for families to grow through all their life stages.” Mike Wagner, sales manager of Morrison Homes, is enthusiastic and agrees about the exciting future of the new neighbourhood. “Pioneering a new community lets us connect with families looking to find a superb home and build a life in a truly special neighbourhood. We are proud to be part of Symons Gate, particularly because the various types of home designs are so different.” The show homes (ranging from 2,020 square feet to 2,504 square feet) feature many special touches that Calgary homebuyers have been asking for: granite countertops; large walk-in closets; lots of entertaining space; private lifestyle rooms; upper-floor laundry rooms; and attached double-car garages. Brookfield’s Wendy Jabusch is proud and upbeat. “Symons Gate will soon evolve into a neighbourhood with a difference, designed for contemporary Calgary families to live, work and play and, most of all, to enjoy the good life in Calgary.” BiC
Meet Tanya. She’s been one of Calgary’s top selling Real Estate Agents for years. She’s a true expert on Calgary’s Inner City Real Estate market, and she understands every client is as unique as their home. Tanya takes the time to listen; to understand your wants and needs. She doesn’t expect your trust, Tanya earns it by consistently remaining honest, accessible and tenacious. That’s what sets Tanya apart. The Tanya Eklund Group was founded on Tanya’s principles. The professionals within her group don’t work for Tanya—they work for you, the client. They provide unparalleled expertise, skill and service to Calgary’s inner city.
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A division of 4th Street Holdings Ltd. Each office is independently owned and operated.
Van Houtte Goes Green M
illions of people kick-start their mornings with Keurig brewed beverages. The brewing system graces both home kitchens and office break rooms across the continent, offering an impressive selection of tea, coffee, hot chocolate, iced teas and coffees and indulgence drinks, all in single-serving pods. The convenience and appeal of this is undeniable, especially in the workplace. Keurig offers more than 120 different beverage varieties from the finest coffee makers. With this kind of variety, companies can be sure that their staff stays in the office increasing productivity and not standing in line for a desired cup of coffee, wasting company’s valuable time. “Coffee is very much like wine. Everyone has a different palate,” says Carolyn Jones, Van Houtte Coffee services district manager for southern Alberta. People take their coffee seriously and with the K-Cup pods, people don’t have to compromise their tastes to accommodate a large group as they would when brewing a full pot. Instead they can brew a cup of whatever they like without wasting a drop. And one can’t talk about K-Cup pods without discussing waste. Unfortunately, pods are not recyclable and there has been concern over loading up the landfill with these pods. The problem is the pods themselves are made from a mixture of materials necessary to keep oxygen, humidity and light out for maximum freshness. These materials can’t be separated. Even if those materials were recyclable, recycling facilities are not set up to process such small pieces of plastic. Van Houtte, which is owned by Keurig, isn’t ready to throw in the towel. Keurig and its subsidiaries are committed to producing K-Cup packs that are recyclable by 2020. In the meantime, Van Houtte aimed to find a solution that could offset the environmental impact now.
The Van Houtte branch in Kamloops partnered with a cement company to create a repurposing program for the K-Cup pods. This cement company dries the pods, shreds them with wood chips, and heats them to 2000 degrees C and uses them as an alternative to coal to heat their kilns. The Calgary office approached facilities closer to home to do the same but they either couldn’t handle the vast numbers or they didn’t have the proper licensing. After considering the environmental implications of shipping over the mountains from Calgary to Kamloops, the numbers showed it was worthwhile, and the local program was launched six months ago. There is already incredible potential for growth. In the past nine weeks Van Houtte has sent nearly 20,000 pounds of K-Cups for processing, thus diverting them from the landfill. “That’s just opening the taps,” says Brian Murphy, operations manager. Currently the initiative has them partnering with only about half of their corporate clients, but many others are eager to be part of the program. Van Houtte will likely ship skids of K-Cup pods weekly, not monthly as originally expected, to keep up with demand. The program is only open to clients and home-use customers who buy Keurig’s licensed K-Cup pods from the Van Houtte branches. “We know exactly what our K-Cups are composed of, we know exactly what the burn rate is and the people at the cement plant understand that,” says Rob Doughty, Van Houtte service manager. “If we introduced third-party pods, we really don’t know what’s in them. Only our K-Cup pods have been approved by the plant. The other ones haven’t been tested.” As this recycling program spreads nationwide, it will keep millions of K-Cup pods out of the landfill and help
1-2915 10 Ave NE, Calgary, AB T2A 5L4 • (403) 255-2740
provide a cleaner fuel at the same time. Van Houtte is dedicated to recycling not only as many pods as possible, but essentially everything else in their offices as well. The goal: to produce zero waste. In order to achieve that, the Van Houtte team has spent the past year looking for facilities and partners to help them recycle all of their paper, cardboard, Styrofoam, plastic, composting and end-of-life equipment to keep all of that out of the landfill as well. Everything is reported closely to gauge progress, and the results are impressive. Since the beginning of 2015, Van Houtte has recycled 9.28 metric tons of cardboard, 0.76 metric tons of plastic, 3.73 metric tons of organic waste, 800 pounds of Styrofoam and 0.764 metric tons of paper. For equipment, Van Houtte has recycled 14,420 pounds of metal, 200 pounds of hard plastic and re-manufactured (GEEP) 700 pounds of equipment. Van Houtte and Keurig are dedicated to lessening the corporation’s environmental footprint. “You want to leave the world better off for the next generation coming up, and this is a good start, a good push for us,” says Murphy. With millions of K-Cup pods and tons of other materials avoiding the landfill, Van Houtte is “brewing up a better world.” For more information call 403-255-2740.
1-2915 10 Ave NE, Calgary, AB T2A 5L4 • (403) 255-2740
Off the Top • News
A Perfect Day … Fore Calgary Kids They have done it, again! For the 10th year in a row. On a sunny day in June, a group of Calgary business people came up with a new formula for success: win-win-win. Nice people. A fun day of good golf. And a terrific Calgary cause. The people were the businesses, friends and sponsors of the 10th annual Business Fore Calgary Kids (BFCK) golf tournament. The fun day of good golf happened at Calgary’s legendary Glencoe Golf and Country Club. And the cause was Calgary kids’ groups and charities, like YMCA Strong Kids, Hull Family Services, Between Friends, EvenStart and Calgary Women’s Emergency Shelter. It’s a dynamic and uniquely-Calgary idea that started in 2005, when a gung-ho group of Calgary business people formed the Business Fore Calgary Kids Foundation to help Calgary kids in need. Ten years later, the fun goes on and the group has raised over $2 million for Calgary kids. This year it was a sunny, summery day and thanks to the 140 players, the loyal sponsors, including the event’s title sponsor – Western Materials Handling and Equipment – and the live auction bids, more than $260,000 was raised for local kids’ charities.
SPE/CSUR Unconventional Resources Conference
WESTERN MATERIALS HANDLING
The proud and happy 2015 BFCK tournament champs were the Mayfair Taxi foursome of Len Bellingham, Lucas Bellingham, Aaron Bellingham and Glen MacLean. “But it’s all about the kids!” says the high-energy Brad Field, president of Calgary’s BRC Group and the 2015 chair of BFCK. “Supporting local kids-based programs and causes is at the heart of why Bob Cardell and John Fitzsimmons originally created our BFCK group. And typical for Calgary but over the years we have had every weather condition possible. This year we had perfection. A fantastic group of people, having a good day together, and supporting top-notch Calgary programs. “This year was great,” Field grins with much satisfaction and some relief. “And now we’ll take some time off, catch up on our day jobs, and in September the 23 BFCK committee members and Pamela Kennedy and Debbie Onysyk, our awesome support staff, will meet twice a month and plan on how the 2016 tournament will be even better.” BiC
Make Plans to Attend! The program committee for the SPE/CSUR Unconventional Resources Conference, held 20–22 October 2015 at the BMO Centre in Calgary, cordially invites you to attend this renowned event. Visit www.spe.org/go/urcbic for more information.
26 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
Off the Top • News
A Barometer of the Times
Auctioneer Larry Graham
“I have 500. 500. Who’llgimme 525? 525? Perfect working order. In fact works like a charm. 525? 525? Who’llgimme 525? 525 over here! Who’llgimme 550? 550? 525 once. 525 twice. SOLD for 525! “ It’s been Saturday morning life for Larry Graham, his family and his staff for more than 21 years. He is one of Alberta’s premier auctioneers, and Graham Auctions, the booming northeast Calgary business, may just be the most hectically popular bargain place in town. Aside from the action – and there is lots of it – the cluttered and meticulously organized confusion and the stacks and display tables of ‘stuff,’ the 6,000-square-foot warehouse shed, partitioned off into three separate auction areas, is a unique and genuine people place. It’s also a not-scientific barometer of the times. “Auctions are good in the good times and, strangely enough, better in the bad times,” smiles and shrugs the infectiously personable Larry Graham. “I have never seen it like this. Of course it’s good for business but it’s also a bit overwhelming. We noticed an upswing in customers last spring, because of a downturn in Calgary employment. And then the oil price situation.” Graham explains that although Calgary’s oil price jitters are a big reason why the Saturday morning auctions are now standing-room only and draw more than 1,500 people each week, the auction business has always been driven by consumer confidence and the cost of living. He mentions that they still do occasional estate and antique auctions, although the demand has fallen off significantly. Now they come to browse (Monday through Friday and early Saturday ‘before show time.’) They think and browse some more and silently strategize about the individual lots from sheets, pillowcases, restaurant grills and fryers to cleaning products, cars and trucks, boxes of books, 70-inch smart TVs, watches, couches, dishes, office chairs and tools. Many of the bargains are retailer overstock, out-of-season and close-outs. Some are repossessed or, as Larry Graham says with emotion, casualties of Calgary’s economic slowdown. He readies to auction off professional kitchen equipment, tables, chairs and even unopened bottles of liquor that were in the bar when a local restaurant closed down. “This may seem like it’s about prices and finding good deals but it is absolutely a people business. And whether it’s the good times or the current uncertain times, the auction business is a reflection of the Calgary community,” Graham says. BiC
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businessincalgary.com | BUSINESS IN CALGARY July 2015 • 27
The Guessing Game • Oil Sands
The
Guessing Game Strategizing during the global glut By Dan Cooper
28 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
The Guessing Game • Oil Sands
D
espite the global glut of oil and the sluggishly rebounding price, the bottom line may not be as gloom and doom as some analysts and media make it seem. No candy coating the discouraging trending but perhaps adding factual balance to assumptions and negative speculation. Even though the price is down about 50 per cent from one year ago, Canada’s (Alberta’s) output is still on track to grow by about 3.5 per cent this year. And there’s even some number crunching and faint reassurance from the Canadian Energy Research Institute (CERI) – the independent, not-for-profit research organization with a mandate to provide relevant, independent, objective economic research in energy and related environmental issues – that the coincidentally slumping Canadian dollar continues at its six-year low, makes materials cost less but since oil is priced in higher U.S. dollars, it is actually a positive, helping oilsands producers cut costs and keep pumping. Although Western Canadian Select (WCS), the heavy crude that serves as the benchmark for oilsands, traded at about $37.10 a barrel, it was $13.50 below West Texas Intermediate (WTI). Just to understand the math, some analysts have calculated that, with the currency difference, when WTI sells for USD$50 a barrel, Canadian producers are actually getting CAD$60 per barrel of synthetic crude. According to CERI calculations and projections, oil would have to stay between $30 and $35 a barrel for at least six months before any drastic consequence of reduced production. Surging North American production – continuing Canadian oilsands production levels combined with spiked U.S. production (which may be levelling off after surprising even Americans) – has contributed to a global glut, pushing especially U.S. supply to the highest in three decades. Last November, OPEC opted to maintain output to hold on to market share. Oilsands supply is growing even as the number of rigs drilling for oil in the U.S. has fallen to the lowest in almost four years.
The overall situation is opportune but coincidental timing for some cautious planning, revisions and re-forecasting for Canadian Oil Sands (COS), the company that holds a 36.7 per cent interest in Syncrude and the largest producer of light, sweet synthetic oil from Alberta’s oilsands. The overall situation is opportune but coincidental timing for some cautious planning, revisions and re-forecasting for Canadian Oil Sands (COS), the company that holds a 36.7 per cent interest in Syncrude and the largest producer of light, sweet synthetic oil from Alberta’s oilsands. “Well before June’s oil price slump, our focus has been driving down costs,” explains Siren Fisekci, COS vice president of investor and corporate relations. “Syncrude recognized the
need to bring its cost factors down. And they have done a good job in reducing operating expenses and capital costs. A reduction of 15-20 per cent is the target for 2015. “Syncrude has been in operation 35 years and it is solidly positioned for the various cycles that are part of the business.” “We continually speak with the investment community and, although these are challenging times for the industry, we expect prices to recover
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businessincalgary.com | BUSINESS IN CALGARY July 2015 • 29
The Guessing Game • Oil Sands
“It’s misleading to be overly simplistic, despite the oil and gas industry always having had upswing and downturn cycles. Now, there’s so much more to it than just cycles. The world is much more complex and challenging.” ~ Joseph Doucet Joseph Doucet, dean of the Alberta School of Business.
and long-term supply and demand and global production to stabilize,” she adds with optimism. When it comes to specifically oilsands, some analysts suggest that production will continue to increase in the near term, likely through 2020 if not beyond, unless prices decrease materially relative to today. If they remain as low as they are, there’s certain to be a downward revision in the long-term growth forecasts for oilsands, but they stop short of implying a production decline in the near term. Of course the industry and analysts are concerned as well as cautiously optimistic, and they consistently underscore the relevance of consistent industry cycles. “It’s misleading to be overly simplistic, despite the oil and gas industry always having had upswing and downturn cycles,” warns Joseph Doucet, dean of the
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Alberta School of Business. “Now, there’s so much more to it than just cycles. The world is much more complex and challenging. “There’s an enormous difference between this downturn versus the 2008-09 version. That was basically a financial downturn that had a big impact on energy prices. The 201415 downturn is the energy sectors and geopolitics driving down energy prices. The world is much more complex, even than it was seven or eight years ago, and situations are much tougher to predict. “Especially today’s oil and gas industry leaders are doing business in a much more complex and uncertain world,” he cautions. “Leaders can’t be expected to predict trends and situations, especially when world situations are such crucial factors of business conditions. What they are called
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30 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
The Guessing Game • Oil Sands
HASKAYNE
Executive
MBA
‘‘
Photos courtesy of Syncrude Canada Ltd.
The process of turning oil sand into crude oil begins with mining the resource. Because the oil sand in Syncrude’s leases is not deeply buried, surface mining is the most viable method of recovery. First, muskeg and overburden are removed and set aside for reclamation activities. The exposed oil sand is then scooped into trucks and dumped into double-roll crushers to break up the big pieces. Next, the oil sand is fed into a cyclofeeder where warm water and steam are added to create a slurry. This is then pumped by hydrotransport pipelines to extraction facilities. In the pipeline, the bitumen begins to separate from the sand and water. The synthetic crude oil produced by Syncrude will eventually be refined into products Canadians use every day including gasoline, diesel and jet fuel.
on is to lead organizations that are more resilient, particularly dealing with the uncertainty and risks. “Of course the oil price slump is serious and it hurt. But the key factor that now impacts cycles and changes is geopolitics. Industry analysts are encouraged, not buoyant, that the surprising spike in U.S. oil production is either tapering off or has ended, easing a global glut and driving a rebound in crude prices from below $50 a barrel. The summer of growing demand and supply pull backs are deflating the gloom-and-doom forecasts. They explain that prices will continue to rise because it is harder for producers to ramp up, than it was to cut back since last June.
The Alberta/Haskayne Executive MBA program empowered me to think differently. Most importantly, the program and the people I met provided a perspective that broadened my business lens and enhanced my capacity to evaluate situations strategically. The collaborative process and level of engagement throughout the program provided me with concrete tools and insights needed to become a more effective leader.”
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haskayne-emba.ca businessincalgary.com | BUSINESS IN CALGARY July 2015 • 31
The Guessing Game • Oil Sands
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Tim McMillan, president and CEO of The Canadian Association of Petroleum Producers (CAPP).
“We have drawn a line in the sand that we don’t make short-term reactions or predictions. We do constant research and consultation with the industry and we do 20-30 year forecasts, as we have always done.” ~ Tim McMillan
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32 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
“A drop in production is good impact on oil prices,” Doucet adds, with hesitation. But when it comes to the new normal in variables, “Ultimately, who knows how situations like Iran, Russia, Libya and Venezuela and OPEC will shake out.” Even though most major oil producers, energy-focused equity managers and industry insiders are conspicuously unavailable for comment, some independent analysts and media business types continue to chase down reaction and speculation. The Canadian Association of Petroleum Producers (CAPP) – the voice of Canada’s upstream oil, oilsands and natural gas industry – is fielding volleys from all directions, looking for timely comment and predictions. “We have drawn a line in the sand that we don’t make short-term reactions or predictions,” says the expert and focused Tim McMillan, president and CEO of CAPP. “We do constant research and consultation with the industry and we do 20-30 year forecasts, as we have always done. According to recent association figures, capital spending by CAPP members averaged $67 billion in the last three years, but some forecasts hinted about a 20 per cent reduction in 2015. Last year, just about the time the slump began, CAPP forecasted that oilsands production would be 2.3 million barrels a day toward the end of this year, 3.2 million by 2020 and 4.8 million by 2030.
The Guessing Game • Oil Sands
“But there’s no doubt about it. The price dropped substantially last year and recovery is slow. Our position is solid that Canada continues a major supplier of commodities to the world. Our oil and gas companies are taking necessary and prudent steps in the current and changing environment. It’s not easy work but it is important work,” he admits.
“Each company has different approaches to hedging, not one path forward. They are realigning organizations and there is a determined focus to make sure that we have sustainable cost structures and, most importantly, that we have a strong and sustainable industry.” He points out the ironic but positive factor of the currently
The power of positivity
n
ow and then, the power of positivity can be inspiring, motivational, transformational … or a really clever, bright idea. Jeff Bradshaw is president and chief executive of V Strategies Inc., a Calgary-based visual communications company specializing in integrated video strategy, content creation, video production, animation/graphic design, and digital solutions. He also happens to be a dynamic, innovative and gung-ho Calgary booster. Like some other Calgary-area businesses, his company has been impacted, took a few hits and some planned projects were affected since last summer’s oil price slump. More discouragingly, especially for an openly positive, glass-is-half-full kind of person, whenever he watched TV news or opened a newspaper, it triggered this unusual negative, bad mood. “That kind of gloom-and-doom negativity starts to sink in and affect people. Not to downplay the fact that it’s a challenge for those of us who work and live here but the proven fact is that Calgary has tremendous and resilient spirt. “The fact is,” Bradshaw shrugs and grins, “the world is not ending, the sun will come up tomorrow, we live in a terrific city and a great community and, just like we proved during the flood, Calgary rallies and has amazing spirit. “Just like at work, you can either sit around and complain or you can do something about it. In one way or another, we are all guilty with the 80/20 rule, spending 80 per cent of the time on bitching and 20 per cent on a solution. “Also, like in business, you must have a positive attitude and lean on each other.” It occurred to him that people’s stressed and negative mood was not so much issue-related as it was
Jeff Bradshaw, president and CEO of V Strategies Inc. and creator of Calgary’s positive In It Together campaign.
attitude-related. The more he reflected on the analogy of how remarkably Calgary came together during the flood, the concept of positivity happened. Bradshaw created In It Together, a social media campaign, featuring Calgary business and community leaders with online video comments and testimonials about Calgary and dealing with the community’s temporary situation. His staff created a special website (www.inittogether.ca) and the production work to make it come together in March. The campaign is only accessible online, the website and YouTube. “This is not about the price of oil. The ultimate goal of In It Together is to spark the conversation about positivity and possible solutions,” he says. One of the business and community video messages is from Corinne Lyall, president of the Calgary Real Estate Board. “It’s a matter of looking for opportunities when times get tough. If you focus on the people, the business will come.”
businessincalgary.com | BUSINESS IN CALGARY July 2015 • 33
The Guessing Game • Oil Sands
Some industry experts and strategists caution about analyzing and overanalyzing, especially during worrisome, uncertain times. Despite projections about production volumes and prices, more and more industry insiders and analysts agree about the elephant in the room: the variable of world situations at the whim of world politics. weak Canadian loonie. “We are selling commodities at world prices, calculated in U.S. dollars. And the cushion of the low Canadian dollar helps to mitigate the situation. “There is tremendous experience to draw on in our industry,” McMillan says with enthusiasm. “And experience is vital. But the investment and banking sector which understands our industry and the nature of our business is also crucial.” Some industry experts and strategists caution about analyzing and overanalyzing, especially during worrisome, uncertain times. Despite projections about production volumes and prices, more and more industry insiders and analysts agree about the elephant in the room: the variable of world situations at the whim of world politics. “The industry’s business leaders are in challenging times,”
notes Joseph Doucet. “They must constantly be aware of what’s happening in geopolitics. They may not be able to do something about it but they must deal with how it impacts the Alberta business market and energy prices.” Neither CAPP, industry analysts or executives are willing to speculate and guesstimate about the short-term future and the timing for a recovery but, at least in terms of the oilsands, there seems to be a fragile consensus. Oilsands production will continue to increase through at least 2020, maybe longer. At current prices, the industry forecasts of three million barrels per day by 2020 may be a low projection. “Our production continues to increase and our ability to affect our destiny is our own,” CAPP’s cautious but upbeat Tim McMillan says. BiC
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2
2015 Honouring Calgary’s Visionary Business Leaders BY BUSINESS IN CALGARY STAFF
businessincalgary.com | BUSINESS IN CALGARY July 2015 • 35
congratulates this year’s recipients of Business in Calgary’s Leaders Awards!
Leaders Awards • Cover
Honouring Calgary’s Visionary Business Leaders By John hardy
T
he jury is still out whether business leaders are born or made, but some things are for sure. Leaders, especially Calgary-area business leaders, have guts, drive, determination, an entrepreneurial spirit and vision. They also tend to be high achievers who are growth and success focused, with a passion for people and their community. Each year, Business in Calgary is honoured to accept nominations based on various criteria. After a panel of three independent judges reviews all the nominations, the Top 20 outstanding business leaders are selected and receive annual recognition in the form of the Business in Calgary Leaders Awards. “Calgary is such a diverse marketplace. So it wasn’t surprising to have a stack of nominations that reflect the diversity of the area,” says David Allwright, dean of the Chiu School of Business and a third-year Leaders Awards judge. “In many ways, most of the nominees reflected the values and the spirit of Calgarians. They tend to be stories about innovation, hard work, success and a genuine caring and involvement in the community. And let’s face it, we all like to hear stories, especially when they are about people, achievements and success.” For Dan Allen, ATB Financial vice president, business and agriculture, it was his first Leaders Awards judging assignment. “What really impressed me was the different types of nominated businesses and the various vision and strategies of the leaders. “From high-profile businesses to small organizations, they share similar values and pride.” Various examples of giving back, being involved and helping to build and grow a better Calgary were leader traits that stood out in most nominations. “There was so much solid quality and
Platinum Partner
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The Judges
Trevor Winkler, regional managing partner of MNP
David Allwright, dean of the Chiu School of Business
Dan Allen, ATB Financial vice president, business and agriculture
diversity among the nominated businesses,” notes Trevor Winkler, Leaders Awards judge and regional managing partner of MNP. “But it was terrific that they – all of the nominated leaders – had a common theme of ‘not just about me.’ And not only the extent to which the leaders were active but their staff were hands-on and involved in the Calgary community. “Clearly it’s not just about success and money. Donations are important and good but most of the Leaders had more than monetary donations. There was lots of afterhours, volunteer time involvement in the community,” Winkler noticed. All the judges pointed out that, particularly from the descriptions and details on the nomination forms, it seems there is a subtle but strong evolution of business principles that follow the changing social norms – that three to five years ago, active involvement in the community was not such a common business priority. The 2015 Leaders — from a respected plumbing contractor, an iconic Calgary retailer, energy services businesses, the founder of a vocational college, one of Calgary’s most respected architects, executive and career placement professionals, a popular energy and utility land acquisition and land management consulting company, restauranteurs, a travel consultant, realtors, a craft beer vendor, dynamic new homebuilders, to the founder of a software solutions company, an insurance adviser, and the president of a popular multiuse Calgary event venue — are recognized and celebrated by Business in Calgary and guests on June 25, 2015 at the Business in Calgary Leaders Awards Gala. Congratulations and thank you to the business leaders who achieve and contribute to make the Calgary community so good.
Ryan Scott Company: Avalon Master Builder
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valon Master Builder focuses on building sustainable, stylish homes that positively enhance quality of life while saving homeowners money on energy, water and natural resources. Ryan Scott joined the family business in 1995 as a construction superintendent; and now as president is navigating the Calgary market with an entrepreneurial spirit and ability to take calculated risks. “I still believe that I am working on the path to success and look at it as a journey with hopefully more steps forward than back. My success and my company’s success have been due to my management team…. My greatest inspiration comes from my family – my father, the founder of Avalon, gave me the skills and opportunity to grow Avalon.” ~ Ryan Scott – President, Avalon Master Builder
Company snapshot
32 Years in Business
28
employees
Real Estate Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Along with productivity, market share, profits – in short, your organization’s success rises. Because Bow Valley College grads are uniquely prepared to help you succeed from day one. Not only do our instructors have deep industry experience, we also consult with over 100 industry executives to ensure the education we provide is relevant. You want tomorrow’s leaders? Then hire these people today. Their knowledge, technical ability, and workplace skills are going to help you rise. bowvalleycollege.ca
A proud sponsor of Business in Calgary Leaders
David Wallach Company: Barclay Street Real Estate Ltd.
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arclay Street Real Estate is a commercial real estate brokerage and property management company specializing in office, industrial, retail leasing and sales as well as investment sales. Barclay’s property management division manages nearly 2.3 million square feet of commercial properties. David has an extensive background as a successful insurance broker and was also the General Manager and President of an Israeli professional basketball team before immigrating with his family to Canada. David Wallach has now immersed himself successfully in the Calgary commercial real estate market. “As a leader and former staff sergeant my two main mottoes are: ‘leading by example,’ never ask your people to do what you are not willing or don’t want to do; and ‘develop success from failures,’ learn and improve all the time.” ~ David Wallach – President/Broker, Barclay Street Real Estate Ltd.
Company snapshot
15 Years in Business
50
employees
Real Estate Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
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Brittney Ramsay Company: Britt Land Services
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ritt Land Services is a land broker for the Western Canada energy industry focusing on project management for land acquisition, consultation, regulatory compliance, strategic planning and land asset management. Founder Ray Ramsay’s daughter, Brittney Ramsay, transitioned from business development manager to president, and is carrying Britt Land forward to a vibrant, technology-savvy, culture-focused services company. “Connecting with the people daily at Britt Land inspires me. Land is interesting but the people are what make it worth it. We are a community and family here; when I’m engaged with our team I feel joy and know that we are unstoppable together.” ~ Brittney Ramsay – President, Britt Land Services
Company snapshot
29 Years in Business
Y
MY
employees
Oil & Gas Industry Sector
Photo by Ewan Photo Video.
Gold Partners
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Platinum Partner
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Beyond building great companies, the best leaders build great teams. HRIA celebrates this year’s winners and nominees of Business in Calgary’s Leaders Awards.
The Human Resources Institute of Alberta (HRIA) is the professional association dedicated to strengthening the human resources profession and upholding the highest standards of practice - it is the source for HR leadership and expertise in Alberta.
Members have access to: Industry tools and resources Best practices Research Support your team with membership today. Visit HRIA.ca to join.
Lisa Moon Company: Champions Career Centre
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hampions Career Centre is an employment firm that works with candidates who have disabilities to help them obtain and maintain employment, and advance in the workplace. Collaborating closely with employers to create diverse and inclusive workplaces, Champions empowers and encourages all stakeholders to take the approach of trust and respect, while embracing cultural shifts and changes in business direction. “A defining moment in my leadership journey was the realization that pushing for attitudinal change about persons with disabilities in the workplace simply wasn’t working. Sometimes we need to pull instead of push. When we change our behaviour, attitudes follow. I’ve learned that amazing things can happen when we pull together.” ~ Lisa Moon – Executive Director, Champions Career Centre
Company snapshot
15 Years in Business
13
employees
Non-profit Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Let us take you to Amsterdam Just one of the many destinations KLM and its partners connect you to. We’ll take you there in comfort departing from Calgary, with our year-round flights, daily in the summer. Visit klm.ca for more information.
John Jackson Connie DeSousa Company: CHARCUT Roast House
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HARCUT Roast House is an independent Calgary-based restaurant group that owns and operates the downtown CHARCUT establishment and its catering operations, and the newly-opened charbar. CHARCUT remains focused on staying current and relevant by delivering unique, inspired cuisine prepared by inventive chefs using locally grown ingredients. “We were working on the CHARCUT line for dinner service a couple months after opening … once the orders slowed down (later at night) we looked out into the dining room, paused, looked back at each other and said ‘WOW, we did it!’ A packed high-energy room cooking food we were passionate about, operating a business … with people we loved … that was the defining moment for us.” ~ John Jackson and Connie DeSousa – Co-Owners and Co-Executive Chefs, CHARCUT Roast House
Company snapshot
5
Years in Business
100 employees
Hospitality/ Food & Beverage
Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Vikram Bakshi Company: Commonwealth Centre
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ommonwealth Centre is a modern, versatile, multi-use events centre located close to the airport. Built from the ground up, 15,200 square feet of available space can be used as one room or divided into three smaller areas. The venue can accommodate 50 to 1,200-plus guests in various settings. Commonwealth creates all food on site, and has the benefit of free parking and close proximity to the LRT. “My father is my greatest inspiration. He worked long and hard hours but still had time for his family. He balanced success and was still available for his kids. He owned a farm plus worked a full-time job, yet he still took time to have fun with us while teaching strong values.” ~ Vikram Bakshi – President, Commonwealth Centre
Company snapshot
8
Years in Business
8 Full-time Employees
30-50 Part-time Employees
Hospitality/ Food & Beverage
Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
IN COLLABORATION WITH
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PJ L’Heureux Company: CRAFT Beer Market
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RAFT Beer Market is a premium casual restaurant with a passion for fresh local food and fresh local beer. A key element to its success is the restaurant’s commitment to using sustainable ingredients whenever possible, and being much more than ‘just a restaurant’ to the guests. “The defining moment in my success was to think differently in the Alberta market; most companies were simply just following proven concepts a lot of the time. (I took) the risk to go into a market that was not yet proven. My greatest inspiration has been my two families, my wife and kids … and the CRAFT Beer Market team.” ~ PJ L’Heureux – President and Founder, CRAFT Beer Market
Company snapshot
5
Years in Business
500 employees
Restaurant Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
C O R N E R O F 4 T H AV E & 3 R D S T S W T H E H E A RT O F D OW N T OW N C A L G A RY
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SUPREMEMENSWEAR.COM
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403.266.4417
On-site tailoring for timely service | Complimentary call ahead underground parking
C o n g r at u l at i o n s to Business in Calgary’s Leaders Awards recipients
Beth Gardner Company: Custom Travel Solutions
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ustom Travel Solutions is an industry-leading travel technology company providing customized solutions for the travel management needs of clients both regionally and globally. Custom Travel Solutions utilizes a unique automated “end-to-end” logistics solution for moving workers through commercial and charter air channels, ground transportation and into camp accommodations. “Honesty and integrity is everything to me. I believe that ensconcing [myself] with loyal industry professionals of the highest calibre is what truly has determined the success of Custom Travel Solutions. Creating and maintaining a company culture is key; always treat your staff how you would like to be treated. Always under-promise and over-deliver.” ~ Beth Gardner – President and CEO, Custom Travel Solutions
Company snapshot
20 Years in Business
43
employees
Travel Management Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
HOME
CHARTER AIR
COMMERCIAL AIR
CAMP
BUSING
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If you need workforce logistics solutions, contact us.”
I-LOGISTICS WORKFORCE MANAGEMENT
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A detailed analysis of project plans and locations as well as worker schedules, will enable Custom Travel to develop a specific program for your company.
CORPORATE | GROUPS | LEISURE | LOGISTICS 403.272.1000
info@custom.travel
www.custom.travel
Carol Oxtoby Company: Heritage Pointe Properties
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eritage Pointe Properties’ award-winning communities offer a unique country residential lifestyle and a world-class public golf course. The company purchased 1,000 acres of land in 1989 and set out to create the ideal neighbourhood with the prerequisite of employing sustainable development practices to protect the environment. Heritage Pointe communities and Heritage Pointe Golf Club are located within minutes of the southern end of the city. “My father was a Canadian soldier who served overseas and my mother was a Belgian war bride. My father’s and mother’s courage throughout and after the war has inspired me to face and conquer fears, to embrace and accept change, and to enjoy each precious moment in the journey of life.” ~ Carol Oxtoby – President and CEO, Heritage Pointe Properties
Company snapshot
26 Years in Business
117 employees
Real Estate Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Jay Westman Company: Jayman BUILT
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ayman BUILT was created in the 1980s and has three separate housing divisions – Jayman MasterBUILT, Innovations by Jayman and Jayman Modus. The established builder has offices in Calgary and Edmonton. “My dad has been my greatest inspiration. He believed your word was your bond, a handshake was the deal and ‘your name is your credit card of life.’ He said, ‘do what you say you’re going to do when you said you were going to do it – then you will stand out.’ He taught me the difference between people who are successful and people who are not as successful is where you choose to spend your time and focus – your most valuable assets.” ~ Jay Westman – Chairman and CEO, Jayman BUILT
Company snapshot
35 Years in Business
approx
300 employees
Real Estate Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Barry Lammle Company: Lammle’s Western Wear & Tack
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ammle’s is a western wear and tack retailer with 24 stores presenting the western lifestyle through a knowledgeable and dedicated team. Recently, Lammle’s became the official licensee of the Calgary Stampede. “The defining moment in my career was my decision to leave my position with the Bay and start my own business. I wanted to be accountable to myself. I trusted my instincts and believed in myself and ‘the American dream’ where one can succeed if they work hard and work smart with integrity. I have recognized opportunities in business, surrounded myself with a good team, and together we have made some good choices.” ~ Barry Lammle – President, Lammle’s Western Wear and Tack
Company snapshot
32 Years in Business
approx
500 employees
Retail Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Marija Pavkovic-Tovissi Company: MaKami College
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aKami College is a private vocational school, with two campuses in Edmonton and one in Calgary, offering post-secondary diploma programs. It is the only college in Alberta offering a 3,000-hour, twoyear diploma program in advanced clinical massage therapy. Having founded MaKami College in 2001 with a vision to assist students in achieving their educational dreams despite their obstacles, Marija Pavkovic-Tovissi co-founded the Queen Esther Education Foundation in 2009, a registered charity that financially supports immigrants and newcomers pursuing post-secondary re-education. “MaKami College seeks to improve lives through the transforming power of education. Successfully educating individuals means that their spouses, children and even grandchildren will benefit because education breeds generational change. I am one of those children; my success stems from the perseverance of my parents and they are my inspiration.” ~ Marija Pavkovic-Tovissi – CEO, MaKami College
Company snapshot
14 Years in Business
Y
MY
160 Education Industry Sector
Photo by Ewan Photo Video.
Gold Partners
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employees
Platinum Partner
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“It is a great honour to be recognized amongst Calgary’s Business Leaders. I want to thank our clients, suppliers and our team for all their support in achieving this great milestone”.
Marija Pavkovic -Tovissi
Edmonton 780.468.3454
Calgary 403.474.0772
makamicollege.com
Bill McCaffrey Company: MEG Energy
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EG Energy is a Canadian oilsands company focused on sustainable in situ development and production in the southern Athabasca region of Alberta. MEG has come a long way from an initial land purchase of nine square miles to land holdings of 900 square miles today. “I get inspired by the team I work with and how we’re building the company. But it’s much more than about where our people can take MEG, it’s about where MEG can take our people and our business partners across Canada. It’s an exciting journey.” ~ Bill McCaffrey – President and CEO, MEG Energy
Company snapshot
16 Years in Business
800 employees
Oil and Gas Industry Sector
Platinum Partner
Gold Partners
David Beresford Greg Chudiak Company: Pandell
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andell had its beginnings in a basement apartment with two employees providing custom programming services to local companies. From there, Pandell eventually transitioned to a “softwareas-a-service” recurring revenue business, delivering oil and gas software to more than 450 energy companies across North America. “There were a few critical financial points on the path to developing Pandell when the ‘smart’ thing to do would have been to shut it down and walk away … each time we chose to move forward against the odds. I look back on these as defining moments for us.” ~ David Beresford – Vice President Research and Development “The achievement I am most proud of as a leader is building a corporate culture from the ground up where our team members feel a strong sense of pride in and commitment to the company.” Greg Chudiak – President and CEO, Pandell
Company snapshot
18 Years in Business
85
employees
Oil & Gas; Technology Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
As Recipients of a Business in Calgary Leaders Award, We’d Just Like to Say...
To Those Who’ve Helped Us Get Here Our Clients
Our Staff
Our Families
Who inspire us to explore new ideas and create innovative software solutions.
Who are dedicated to delivering exceptional results for our customers.
Who support us through our challenges and contribute to our successes.
Come visit us at www.pandell.com
Adam Pekarsky Company: Pekarsky & Co.
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ekarsky & Co. is a boutique executive search firm specializing in hardto-fill roles on behalf of corporate clients seeking to find exceptional candidates – from the manager level up to the C-suite. The Pekarsky Group, then Pekarsky Stein, and now Pekarsky & Co. continues the tradition of expertly finding and assessing the right person for any position. “We’ve executed some very high-profile searches over the years but the real measure of success … is the incredible team I’ve built around me. They are the best in the business … and all they do every day is make me look very good. My grandpa, Henry Singer (my greatest inspiration) … took a risk, placed his name on the door and created something far bigger and longer lasting than himself. That’s inspiring!” ~ Adam Pekarsky – Founding Partner, Pekarsky & Co.
Company snapshot
6
Years in Business
10
employees
Professional Services Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Your lawyer. Your law firm. Your business advisor.
Pete Archdekin Company: Pete The Plumber Ltd.
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ete the Plumber provides a wide variety of services to Calgary and the surrounding area, including plumbing, furnace and heating, air conditioners and hot water tank installations. Continual training and improvement, learning from mistakes and taking new initiatives are all part of the company’s business model. “The defining moment to the success in my journey is when I met my business partner, Andrew Prince, his wife, Jackie Prince, who is our general manager, and my wife, Lyn Archdekin. I could always show my passion for the trade, but our teamwork gave the company the growth it deserved. We believe if you are going to do the job, do it right.” ~ Pete Archdekin – Owner, Pete the Plumber Ltd.
Company snapshot
16 Years in Business
45
employees
Plumbing/ HVAC Services Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
MOVING. PICTURES.
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PHOTOVIDEO
James Dyack
Company: Prairie Advisory Corp. and West Oilfield Holdings Ltd.
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rairie Advisory Corp. is an M&A, valuations and general advisory firm. West Oilfield Holdings is a COR-certified general oilfield services company (heavy hauling, vacuum truck, mobile crane and construction services) with a focus on well site and facilities construction support. “My defining moment was my first career change. As an engineer with little exposure to or understanding of business, I was fortunate to be accepted into my top business school choice. This started me on my very focused path of continuous learning, improvement, hard work and a career that went from engineering to management consulting to accounting firm partner to owning an oilfield services company.” ~ James Dyack – Managing Partner, Prairie Advisory Corp., and President and CEO, West Oilfield Holdings Ltd.
Company snapshot
3 13 *
**
Years in Business
3 60 *
**
employees
Management Consulting*, Oilfield Services** Industry Sector *Prairie Advisory Corp. ** West Oilfield Holdings Ltd.
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Ron Kurczaba Company: Riddell Kurczaba Architecture Engineering Interior Design Ltd.
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iddell Kurczaba is a client-centric firm that plans, visualizes, designs and implements high-performance buildings and spaces. With expertise in architecture, interior design, fire and building code solutions, and 3D visualization, RK is driven to deliver service with uncompromising integrity, and through its early adoption of technology, the company continually achieves innovation in services and products. “A collaboration with Gensler on a major Calgary project in 1998 gave me a world-class perspective on the profession. I was inspired by a quiet conversation with company founder, Arthur Gensler, particularly when he advised me on his secret to success: surround yourself with the very best people.” ~ Ron Kurczaba – Principal, Riddell Kurczaba Architecture Engineering Interior Design Ltd.
Company snapshot
27 Years in Business
70
employees
Architecture Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
We know what it takes to be a leader. We work with a whole network of them every day. At Intact Insurance we work with a strong network of brokers across the country to provide property and casualty insurance to close to 4 million customers. Brokers like Sherif Gemayel, who are leaders in our community and experts at what they do. As the largest insurance company in Canada, we’re proud that together with them, we’re able to provide the responsive service, comfort and continuity you deserve.
www.intactinsurance.com
HOME CAR BUSINESS
The BIP logo is a registered trademark of the Insurance Brokers Association of Canada (IBAC). All other trade-marks are property of Intact Financial Corporation used under license. © 2015, Intact Insurance Company.
Sherif Gemayel Company: Sharp Insurance
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harp Insurance is a personal lines insurance brokerage specializing in home and auto insurance. Sharp Insurance’s development of their groundbreaking mobile app and state-of-the-art website have contributed to their award-winning success in the brokerage arena. With the recent start-up of Sharp Mobile Technology Ltd., the company is focusing on providing the latest software for brokerages across Canada. “We started with big ideas to reinvent the insurance world by taking a unique digital approach which was uncommon at the time. After being laughed at, doubted, antagonized and criticized, we did $1.1 million our first year, which was unprecedented. We turned heads – our goal was achieved.” ~ Sherif Gemayel – President, Sharp Insurance
Company snapshot
6
Years in Business
43
employees
Insurance Industry Sector
Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Congratulations Aviva congratulates Sherif Gemayel of Sharp Insurance on being chosen as one of Business in Calgary’s Leaders for 2015. At Aviva, we work with successful, innovative brokerages like Sharp Insurance, to provide customers with the right protection for their unique needs, and the peace of mind they deserve. We’re proud of our strong partnership and look forward to many more years serving communities across Alberta.
AvivaCanada.com Home | Auto | Leisure & Lifestyle | Business Aviva and the Aviva logo are trademarks used under license by the licensor.
Nick Sims Company: Sunik Roofing
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unik Roofing, a division of Sunik Construction Inc., provides residential and commercial reroofing and exteriors, sloped roofing, fibreglass shingles, cedar shakes and rubber tiles. President Nick Sims serves his customers through industry innovation, certified Red Seal journeymen roofers and ongoing warranties with no small print to hide conditions. “In 1996 I took on partner Lowell McNichol, who believed in ‘the dream’ and taught me that ‘you are either part of the problem or part of the solution.’ With his undying support and passion we have realized our dream. My greatest inspiration: my father, Nicholas, who taught me ‘life can be a carnival if you follow your dreams and live your life with passion.’” ~ Nick Sims – President, Sunik Roofing
Company snapshot
26 Years in Business
20
employees
Re-Roofing & Exteriors Industry Sector Photo by Ewan Photo Video.
Platinum Partner
Gold Partners
Power generation, personified.
Brittney & Breanne Ramsay | Owners of Britt Land Services | Business Magnates | Savvy Sisters
Meet sisters, Brittney and Breanne. When family events unexpectedly put them in charge of their father’s business, they didn’t flinch. Instead, they hit the ground running. ATB’s experts helped their cash flow and growth along the way. Now, they look forward to expanding their business even more. And we look forward to supporting the sisters as they make their mark across Alberta—and beyond. Learn more about Brittney & Breanne at atb.com/WeGrowAlberta
Who helps with your succession plan? We do. BUSINESS ACCOUNTS І CASH FLOW І FINANCING І KNOW-HOW atb.com/businessbeat helped us with our facts. Visit atb.com/wegrowalberta for more information. ™ Trademarks of Alberta Treasury Branches.
YOUR VISION GOT YOU THIS FAR.
Where do you go from here? The mark of a true leader is the ability to embrace today’s challenges head on while uncovering opportunities to shape a successful tomorrow. The mark of a visionary, however, is defined by a leader’s ability to capitalize on those opportunities while effectively using their available resources to do so. Our national scope and local focus positions leading organizations – and the visionaries behind them – for success, no matter where business takes you. MNP proudly congratulates the 2015 Leaders. We celebrate your achievements and anticipate the positive impact you’ll have on our business community. Contact Trevor Winkler, CA at 403.536.5557 or trevor.winkler@mnp.ca
Calgary’s Market Mall.
Calgary Malls: Alive and Well and Booming • City Malls
Calgary Malls: Alive and Well and Booming
The strategy of shopper likes and dislikes BY PARKER GRANT
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eports about the death of shopping malls have been greatly exaggerated. Calgary area malls are booming! Partially because the impact of the alleged competition is mistakenly exaggerated and not even a credible threat. “Some rumours that malls are dated or hurting from online competition are inaccurate, completely wrong and contrary to actual numbers and trending,” says the upbeat Jesse Tron, spokesman and director of communications for the International Council of Shopping Centers (ICSC), the premier global trade association of the shopping centre industry, with more than 70,000 members in over 100 countries, including 4,000 members in Canada. For nearly a decade, the retail and particularly mall industry was scrambling, often on the defensive about the rumoured threat of online shopping. The mall industry went on the gutsy offensive, and started countering consumer gullibility with documented research and facts. The early indicators and results confirm the true apples-and-oranges shopping reality that – it’s no contest! “E-commerce is certainly an interesting platform for retail,” Tron points out. It certainly has its niche and actually enhances the brick-and-mortar of mall shopping. “Across North America, online shopping accounts for less than six per cent of total retail sales. Some surveys show that online browsing drives business to malls. “The consumer’s shopping process may be different. The journey starts online and
Jesse Tron, International Council of Shopping Centers (ICSC).
businessincalgary.com | BUSINESS IN CALGARY July 2015 • 79
Calgary Malls: Alive and Well and Booming • City Malls
Darryl Schmidt, vice president national leasing at Cadillac Fairview.
The Nordstrom wing of Calgary’s Chinook Centre.
Rob Walker, senior vice president/partner, Colliers International.
Lynne Ricker, associate dean of undergraduate programs and a marketing professor at the Haskayne School of Business.
leads to a store in the mall. Consumers know the store, the style and colour choices. It used to be ‘try on 10 pair of shoes, go home and think about it.’ No more. The consumer is savvy and does their research online.” Cadillac Fairview, Canada’s largest operator and developer of retail real estate – including popular malls in major Canadian cities from Vancouver and Calgary to Toronto and Halifax – is very bullish and positive about the business performance value and consumer popularity of Canada’s malls and cites reams of recent figures about growth and boom times for mall shopping. “Business in retail malls is strong and getting stronger,” raves Cadillac Fairview’s revved and upbeat Darryl Schmidt, vice president national leasing. “The top 10 per cent of indoor malls are doing more market share than ever. Technology, like the retail industry’s omnichannel, is actually a positive and a provably effective tool for driving consumers to a mall.” The formula and logistics of leases in a successful indoor mall is complex and individual. In Chinook, for example, the average rent may be a base of $110 per square foot, plus $62 psf common costs. In most major malls, tenants are routinely required to report so the mall operator can calculate and track mall and specific store performance based on “sales per square foot.” According to 2014 national stats, measured by retail sales per square foot, Calgary malls are well above the Canadian average of $750. (*see Canada’s Top 10 mall list below.) “Some things never change,” Schmidt points out. “The undisputed and most critical aspect of malls, as with most other types of real estate, is location, location, location. It makes or breaks the mall’s performance and success. Chinook is a perfect example. Several factors make it one of North America’s most successful malls. Location is probably the most significant. It’s at the geographic centre of Calgary, with exposure to more than 150,000 vehicles each day. According to the electronic sensors at every entrance, Chinook’s foot traffic now exceeds 18 million visitors a year.”
80 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
Calgary Malls: Alive and Well and Booming • City Malls
Rick Titan This Summer - Get an Updated - You! “Location, convenience of access and disposable income of the area are the crucial factors for retail real estate,” says the experienced and Calgary-savvy Rob Walker, senior vice president and partner of Colliers International, Canada’s largest commercial real estate services company. “Unlike office space that’s a commodity, retail locations directly impact the business. Many large retailers will only consider an enclosed mall. In terms of mall traffic, competition – like Nordstrom opening in Chinook – is good for business. It brings even more people to the mall.” Retail analysts, mall developers and the trending of consumer habits agree. The state-of-the art convenience of online browsing is undeniably popular throughout North America. In Canada, and especially in Calgary, it is proving not to be competition and is not siphoning customers from stores in the malls. “Canadians are much more reluctant online shoppers than Americans,” says Lynne Ricker, associate dean of undergraduate programs and a marketing professor at Calgary’s Haskayne School of Business. “We tend to be much more tactile consumers. We want to feel the fabric and try on the shoes. You can’t do that online. “Besides, all indications are not only that malls are here to stay but they are reinventing themselves and gaining momentum. There is much more of a mix and a variety of stores in malls, and malls are attracting consumers with a total experience.” “Where enclosed malls are positioned is always a vital factor. But the mall environment is being drastically
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ricktitan.com businessincalgary.com | BUSINESS IN CALGARY July 2015 • 81
Calgary Malls: Alive and Well and Booming • City Malls
Kieron Hunt, director of Canadian operations, Cushing Terrell Architecture Inc.
Mike Kehoe, owner and broker of Fairfield Commercial.
redefined as an experiential place,” says Kieron Hunt, director of Canadian operations for Cushing Terrell, architectural consultants for North American commercial and retail. Studies and stats show a definite trend. Malls are adjusting with construction, modern rebuilds and renos. Elaborate food courts, upscale bars and restaurants, and movies. Vintage, wasted spaces, like fountains layered with tossed loose change, are being converted into popular kids’ play areas and other people places with leather sofas, coffee bistros and Wi-Fi. The mall “experience” is proving to be effective strategy. “It’s everything the shopper wants,” Schmidt underscores with enthusiasm. “Food courts not only draw huge lunchtime
10 most successful Canadian malls (by sales per square foot): 1) Pacific Centre, Vancouver 2) Toronto Eaton Centre, Toronto 3) Oakridge Centre, Vancouver 4) Yorkdale Shopping Centre, Toronto 5) Southgate Centre, Edmonton 6) Chinook Centre, Calgary 7) Rideau Centre, Ottawa 8) Holt Renfrew Centre, Toronto 9) Market Mall, Calgary 10) Sherway Gardens, Toronto
$1,498 $1,420 $1,395 $1,356 $1,157 $1,125 $1,008 “over $1,000” $942 $935
SOURCE: RETAIL INSIDER (R-I) CANADA
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Kim Bogner, marketing director for the CORE.
traffic but, later in the day, they keep people in the mall longer. Theatres are a terrific anchor and bring a second wave of traffic. It’s a win-win for the business formula of malls: if the customer stays longer, dwell time increases and spending increases.” Mike Kehoe, owner and broker of Fairfield Commercial, is one of Calgary’s premier retail real estate authorities. He acknowledges that malls, like other consumer-driven businesses, must be contemporary, keep up with the times and do whatever it takes to attract today’s consumer. “The de-malling of retail has been overblown. Especially Calgary malls are strong and viable. In the past 20 years or so, some dated ‘shopping centre’ concepts just became obsolete and some underperforming commercial real estate either gets demolished, rebuilt or recycled for use other than retail. “Retail is so consumer-driven and consumer preferences are changing. It’s exciting and ever evolving. Calgary is a very hot retail market. There’s about 32 million square feet of retail space and the vacancy rate is under three per cent. Calgary is a mostly young demo with high levels of disposable income. It is a very desirable, go-to market for retailers and food service and a very hot market for malls and retail in general. Look at Chinook and CrossIron Mills. They are modern, up to date and successful.” Another example of a Calgary mall succeeding in targeting specific segments of young, upscale and high-disposable income consumers, is the CORE, the dazzling mall in the (+15, office, tourist and condo) heart of downtown Calgary. Kim Bogner, the CORE’s marketing director, is a dynamic and passionate cheerleader for her “urban shopping centre and niche mall.” The 365-day-a-year greenery of Devonian Gardens, the stunning marble and glass look and feel, the unique variety of stores and services. Bogner is proud of the CORE’s unique experience edge. “The special customer service, from personalized shopping
Photo courtesy of Tourism Calgary
Calgary Malls: Alive and Well and Booming • City Malls
Tom Dixon, business development manager, real estate and logistics with Calgary Economic Development.
The CORE in downtown Calgary.
with the help and advice of a professional stylist to valet parking, we do offer a special experience other malls can’t.” She is upbeat but candid about two branding issues. “Thanks to our mix of 160 stores and services – from Calgary’s only Holt Renfrew, to hair salons, dentists, Jugo Juice, Hy’s Steakhouse, Banana Republic and Payless Shoes – we are gradually changing the downtown perception that we are a pricey mall. “And the parking!” she shrugs and smiles. “It’s still one of our biggest branding obstacles, despite our complimentary valet service, free weekend parking and the 10,000 parking spaces within a two block radius.” “The CORE is a terrific example of an enclosed mall with a bit of a niche market,” Walker says, with retail expertise and as an admitted CORE customer. “It has huge weekday traffic and, on weekends, when parking is no problem, it’s outright enjoyable.” Experts say that another supposed threat – big-box store power centres – are also not impacting the durable popularity and draw of indoor malls. Power centre land, construction costs and lease rates are much lower and usually attract retailers looking for larger spaces and lower rents. “It’s all about investment, infrastructure and being up to date,” adds Tom Dixon, business development manager, real
estate and logistics, with Calgary Economic Development. He cites that Chinook, CrossIron Mills, Southcentre and Market Mall are Calgary’s top four malls. “The new Nordstrom wing in Chinook proves the value of indoor malls updating the mix of stores and the mall experience. The upscale Simons coming to the CORE. Retail is so market-driven, investment-driven and location-specific and it’s great to have outside developers and retailers from areas like Toronto, Vancouver and Montreal recognize the Calgary value and have so much confidence in the Calgary market.” Two vital factors of contemporary shopping habits set malls apart. Whether it’s Calgary winters or Phoenix summers, indoor malls have the potent and undisputed climate advantage. Malls also have the edge of opportunity for structural upgrades and renos, and innovative, consumer-popular features like sprawling food courts, multiplex theatres, fitness and childcare services, concerts and limitless special events that power centres could never offer. The professional opinions, industry stats and consumer trending agree. Despite the exaggerated popularity of online shopping and the sprawl of big-box power centres, indoor malls are booming. BiC businessincalgary.com | BUSINESS IN CALGARY July 2015 • 83
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Photo by Mike Ridewood, courtesy of Calgary Stampede.
Morphing the Legend • Calgary Stampede
Morphing the Legend Stampede as a year-round business BY JOHN HARDY
The new Agrium Western Event Centre.
T
he hard-working and passionately committed board and largest oil and gas technology and innovation exhibitions, management of the Calgary Stampede have a positive, that has grown so much that it now takes up Stampede Park’s irresistible, exciting, challenging and somewhat timeBMO Centre, the new Agrium Western Event Centre and a few sensitive dilemma. How to delicately but effectively manage, temporary, tented areas. manoeuvre and morph a revered national treasure with Not to mention the 40,000 people who enjoyed the 30th year of a tremendous, almost sacred 103-year-old international the annual Aggie Show of agricultural displays, the popular Calgary reputation into a dynamic, year-round Calgary business? Auto Show, other trade shows, conventions and conferences, In many ways, they have been subtly Saddledome concerts, weddings, grads and but actively doing it for several years. company Christmas parties. Between the capacity crowds, booming Earlier this year, the business of attendances and the good times of the Stampede was broadsided with a $2 million annual 10 daylong parties, they have been funding cut by Alberta Agriculture. It has building and reno’ing facilities on the 200already caused cuts in senior management acre prime Calgary real estate grounds. and some programs, but the business of They have been pitching and already Stampede continues with commitment doing good year-round business, and tremendous spirit. hosting 60,000-plus visitors to the “The opportunity to manage and set the Comic Expo (alias the Calgary Comic and direction for Calgary Stampede is a special Entertainment Expo), the annual comic honour, an enormous responsibility and and pop culture exhibition that started sometimes a challenge,” explains Bill nine years ago in the BMO Centre and Gray, the respected Calgary lawyer who is by huge turnout and demand, expanded the new president and CEO of the Calgary to the rest of Stampede Park grounds. Stampede volunteer board of directors, And the 65,000 or so visitors and which consists of 20 directors elected by 2,000 exhibitors of the massive Global shareholders, seven appointees and the Bill Gray, president and CEO of the Calgary Stampede. Petroleum Show (GPS), one of the world’s immediate past president. businessincalgary.com | BUSINESS IN CALGARY July 2015 • 85
Morphing the Legend • Calgary Stampede
The Gretzky of Chuckwagons The life and (winning) times of Kelly Sutherland
Champion chuckwagon driver Kelly Sutherland races his winning team to the finish line.
T
here are many reasons why some people call Kelly Sutherland the Gretzky of chuckwagons. He is talented, driven and passionate about his sport. Like Gretzky, he is personable but low-key. Most conversations usually revolve around his wife, his grown children and grandchildren, his sport and horses. Like Gretzky, he leads by example, he’s a winner and he’s a champion. Most of all, like Gretzky, he also happens to be a genuinely nice guy. Sutherland also has a subtle but terrific sense of humour. “Of course it’s flattering to be compared to Gretzky,” he grins and shrugs, “and he was certainly an amazing athlete. But he didn’t play for 50 years!” By nature of his “job” and his tremendous success, most of the attention and recognition Sutherland gets invariably involve good days, bad days, wins and losses and stats and figures. There is rarely mention that the 46 years married, grandfather of seven and 64-yearold respected horseman (and horse lover), chuckwagon driver and Calgary Stampede legend has a remarkable work ethic, deep and insightful compassion and a lot of fabulous stories to tell. Like the way visiting and signing autographs at the Tom Baker Cancer Centre quietly changed his life. “Some people who complain and think life is a burden, should go and spend half a day in the hospital. It gives you a whole new perspective.”
86 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
In one sense, Sutherland is proud and grateful about age but he is also practical and cautious, talking about the fact that at 5’11” and 175 pounds, he’s a relatively average-sized, 64-year-old man in a big, tough, young man’s game. “Let’s be honest! Most drivers retire from the chucks by 50, sometimes sooner. Their body parts start wearing out, especially the hips, knees, arms and shoulders. I’ll be 65 next year and I have pondered retirement but I’m not ready. I’m very lucky. I am blessed with a talent for the sport, a lot of loyal sponsors who believe in me and I have my health.” Sutherland is unconditionally positive but does have concerns about the future of the sport he loves. “It’s scary. A lot of young guys are throwing in the towel. The costs and expenses of competing in the sport, compared to the prize moneys, just doesn’t make sense. Most drivers have to work in the winter offseason, just to make a living for their families. And the costs are going up. “It costs about $2,500 a year to keep a thoroughbred horse. Let’s say the driver has 40 horses. There are 54 race days in a regular season, assuming there are no rainouts or cancellations. The fact is prize money virtually hasn’t increased in about 10 years. It’s discouraging new drivers from competing. By the end of the season, most drivers owe about $50,000. They are doing it for the passion.”
Morphing the Legend • Calgary Stampede
Howland explains that the Stampede’s online presence and exposure is critical. “Last year, we had a million visits to our website…” “I admit that I am passionate about the organization and unconditionally respectful about our obligation to protect our very unique brand. Absolutely. We never take our eyes off the ball about what Stampede is and what it means not only to our Calgary community but to the province, the country and the world.” Gray also has a realistic, practical and sharp business focus. He delicately mentions that, despite genuine reverence and pride about everything Stampede, it is basically a fabulous 10-day party in July. It is family fun and excitement and it is invaluable for heritage and Calgary’s profile. But, despite record attendance turning the admission turnstiles, the loyal and supportive corporate sponsors – from GMC, Agrium, Coca-Cola, Tervita and about 300 others – and selling lots of cowboy hats, boots, belt buckles, mini donuts, fresh-squeezed lemonade and pulled pork on a bun, it could never sustain the necessary revenues of the multimillion-dollar business that is the Calgary Stampede. “Of course the Stampede is heritage, it’s crucially important for Calgary and for our organization and it is the core of what we do,” he emphasizes with enthusiasm. “But from a business perspective, we are focused and planning the most effective strategies to grow as a year-round organization. We’re looking for other sources for revenue, maybe capital campaigns to expand our facilities like the BMO Centre, consider other land for possible development and form partnerships. “We are definitely planning to be a year-round gathering place.” The ambitious and practical growth and expansion may get tricky, while carefully attempting not to tamper with the proverbial 10-day golden goose. But the branding and marketing manoeuvre is already happening. Stampede Inc., the year-round business, already hosts and stages more than 1,200 groups and events each year. Although the biggest Stampede draw will forever be the 10-day July party, less than 25 per cent of Stampede visitors come from other areas of Alberta, the rest of Canada, the U.S. and international
Theresa Howland, marketing director, Calgary Stampede.
places like the U.K., Japan, Germany and Australia. The branding and marketing advantage for a year-round Stampede Inc. business is a natural. A vast majority – more than 75 per cent – of Stampede visitors are local. For them, year-round special events, concerts, trade shows and for the many company and private occasions, the facilities and the locations need little introduction. But for the Stampede board, the more than 300 sponsors, the management, staff and the remarkable army of spirited Stampede volunteers, the branding, marketing and the fun and games (from the thundering chuckwagon races and rough/tough rodeos, Miranda Lambert and Stevie Wonder to agricultural displays, the food and the midway) that is Calgary Stampede, is pivotal, crucial and all that matters. “We have a truly special, mass appeal product,” gushes the upbeat and personable Theresa Howland, marketing director of the Calgary Stampede. “The diversity of our events is huge. And throughout the year, we evaluate a lot of metrics about what resonates with people and what we need to do to attract more than a million customers in just 10 days. Especially since they are mostly local and we hope they come back, year after year. About 35 per cent of Stampede visitors are families and four out of five are repeat visitors. “So in addition to conventional marketing like advertising, promotion and provincial and city tourism support, Calgary area and regional word of mouth is unique and vitally important for us.” Regionally and nationally, the true value of the annual 10-day Live from Calgary exposure on CBC is tremendous but impossible to measure. Howland explains that, as with most contemporary marketing strategies, the Stampede’s online presence and exposure is critical – the websites, Facebook, Twitter and other social media and e-opportunities. “Last year, we had a million visits to our website, more than 550,000 photos tagged to Calgary Stampede on Facebook and 7.5 million businessincalgary.com | BUSINESS IN CALGARY July 2015 • 87
Photo courtesy of Tourism Calgary.
Morphing the Legend • Calgary Stampede
Michael Piper, vice chair of the Stampede’s chuckwagon committee. Chuckwagon races at the Calgary Stampede.
“There is lots of detailed coordination…It’s an exciting, year-round job.” ~ Michael Piper, vice chair of the chuckwagon committee tweets and 90,000 Stampede-related photos tagged on Instagram. “It’s an exciting fact of marketing life and it’s by far the most potent way for us to engage our broad market and especially to attract the millennials, who are the next generation of Stampede visitors.” The Stampede is also a marketing phenome because, over the course of only 10 days of mostly on-site and some outside exposure, the brand attracts the loyal support of more than 300 mostly corporate and some group sponsors as a major source of the organization’s revenues. The six levels of sponsorship – Champion, Stockmen’s Club, Rancher, Cattle Baron, Trail Boss, and Wrangler – range from the mid six-digits to under $2,000. Perhaps the most high-profile and best known Stampede sponsorship is not really a revenue generator for the 10-day event or the year-round business that is Stampede as only a small percentage of the exciting (and fun) Calgary Stampede Canvas Auction actually goes into the Stampede’s coffers. This annual auction is a big shmooz event attended by many Calgary corporate execs, agencies and media, and includes bidding and buying the rights to put their corporate logos on the “tarps” that cover the chuckwagons that will be racing on the 10 nights of Stampede and various other corporate on-site receptions and VIP opportunities. The final tally of each year’s auction is often interpreted as a folklore indicator of the Calgary economy. This April’s event brought in a canvas sponsorship total of $2.78 million, 88 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
down more than $750,000 from last year’s total. A bulk of the sponsorship moneys go directly to the chuckwagon drivers. “Some say it’s a lot of money for 10 days exposure of a corporate logo but,” according to Gray, “for some it’s advertising for the unique corporate on-site hosting and entertaining possibilities. For other Calgary-based sponsors, it’s a good way to give back to the community.” Aside from the sponsorships, the chuckwagon races are such a favourite and key component of Stampede that the event has its own committee of planners and organizers. “There is lots of detailed coordination, from scheduling, safety, making arrangements for the 36 drivers and their crews, more than 200 horses, the wagons, looking after the sponsors and much more,” says the gung-ho Michael Piper, vice chair of the chuckwagon committee and regional development manager for CARSTAR, Alberta. “It’s an exciting, year-round job. “The races are always one of the best attended, big draws. There are 43 volunteers on our committee with 20 additional volunteers during Stampede. The chuckwagon races are also such a special Stampede tradition,” he adds with enthusiasm and emotion, “that being on the committee is an awesome responsibility. It’s heritage, like carrying an Olympic torch or the Stanley Cup.” In every way, Stampede has whatever it takes – the profile, the reputation, the vision and hard work of passionate staff, and the momentum – to become a solid, year-round Calgary business success story. BiC
Market Flux • Real Estate
Market Flux The Calgary real estate market has surprises By Christy NiCh
D
espite the negative headlines, the sky is not falling in Calgary’s real estate market, according to real estate analysts. It is merely stabilizing from its historical highs of previous years that had earned us the reputation as an expensive place to live. To be fair, we have held our place as one of the three most expensive places to buy in Canada, along with Toronto and Vancouver. And Calgary is an oil and gas town, so when the price of oil began falling and garnering the attention of the media, everyone assumed that it would suddenly turn Sam Corea, Alberta’s top realtor into a buyers’ market. We were warned that available inventory numbers would swell as people would be listing their homes and hightailing it back to where they came from because there was no money to be made here, bringing the house prices down with them. But that clearly is not the case and the potential downturn in the market, particularly for the mid-range defined as between $350,000 to $650,000, has not been realized, at least not for Sam Corea, Alberta’s top realtor. His main area in the city is Westhills on the far western edge and he says he has not noticed much of a reduction in prices. “Maybe five per cent, if that even.” He refers to the “heat map” which shows monthly sales represented by colour, with red indicating sales closest to
asking price. While Calgary’s current map shows noticeably less red than last year’s, the outskirts are still holding strong with more red. “This is an unusual thing to see when markets turn. Historically, the suburbs do drop first,” he says. Auburn Bay and some of the other new districts are priced appropriately by the homebuilders and are selling closer to the list price, within 98 to 100 per cent. Inner-city sales are 92 per cent of list prices compared to 97 per cent across the board last year. “The new areas, like Sage Hill, close to the new hospital, is maintaining its value, but the reality is it’s a lower price point. I mean, $400,000 to $650,000 is the average down there and they are selling at the list price and there is not a lot available in those areas.” The story behind the lagging sales in the inner city is over-saturation in the market of higher-end houses, says Corea, based on builders buying spec homes when the prices were high and land values increased by 10 per cent per year. “You’re not seeing a lot of ‘million-plus’ sales,” he says and it is the biggest sector being impacted. Ann-Marie Lurie, CREB’s chief economist, confirms that sales activity has been falling as compared to last year, which was strong, and current prices are lower than what is typical. There were more active listings in April 2015 at 47 businessincalgary.com | BUSINESS IN CALGARY July 2015 • 89
Market Flux • Real Estate
And this curb in hiring may be a good thing since, historically, there was no place for people coming to the city to live. The factors influencing economic conditions in property values are migration, low unemployment, interest rates and vacancy rates. And this curb in hiring may be a per cent across all market segments, good thing since, historically, there but fewer new listings which dropped was no place for people coming to the by nearly 18 per cent showing that city to live. The factors influencing it takes longer for the inventory to economic conditions in property values move – up by 50 per cent longer when are migration, low unemployment, compared to May 2014. Benchmark interest rates and vacancy rates. prices, which Lurie defines as “typical Calgary’s high salaries attracted within the same type of housing,” professionals from across Canada and shows a 1.85 per cent increase in April North America, but many who couldn’t 2015 over last year’s 2014 numbers, find a place to either buy or rent didn’t but a decline in the apartment sector want to come. In addition to the strains where they fell by almost two per cent. on available accommodation, labour CREB’s statistics show that “year shortages resulted. When these key to date” in May 2015 in the detached factors hit, they typically take between sector, which is assumed to be single12 to 18 months to impact real estate. family housing, new listings actually Ann-Marie Lurie, CREB’s chief economist Statistics Canada shows that decreased by 3.6 per cent with a 30 per Calgary has historically had the lowest cent decrease in total sales in that sector. unemployment rates and in July 2014 the city experienced In the attached-home sector the YTD statistics show a 4.4 per the highest spike in property sales. CREA also reports that cent increase for new listings, but a 27 per cent decrease in Calgary’s annual real estate price growth is much higher total sales. than the 5.3 per cent national average at 9.8 per cent. This is a trend which began in December 2014 when the Lurie says that they are waiting to see how the employment gains in market prices experienced from February to June numbers are being affected, what is happening to migration, started to level off, then fall. She says it is a five-month and how it’s affecting the real estate market in the city. decline in benchmark prices. We are still higher than last “That will give us a better indication of what we can expect year, as of April 2015, which makes the benchmark price for our housing market, because we do know it’s a lagging over 2013 higher as well, but not in the apartment sector. indicator. If people are losing their jobs, at what rate are The attached-home sector and apartments or condominiums they losing jobs and are they able to replace them? That’s show similar, unremarkable losses in the average price really when it becomes an issue in housing,” she says. they have sold for since December, but Lurie cautions that Last year’s market was overheated, admits Lurie, adding, “average” does not take into account the compositional “You don’t necessarily want to be in that sort of market changes (i.e. the different price points within the sector). either, where there was no supply and there is no rental. It She notes there has been a lot less activity in the highermakes it harder for people to find employees. If it drives up priced properties. The average price for attached houses prices, what is that going to do to the overall attractibility showed a 1.6 per cent drop in May 2015 YTD at approximately of your city?” She credits the state of real estate in the $408,000, but a median – the midpoint – gain of 0.3 per cent city last year with helping to cushion a potential downturn YTD or $348,000. If you look at 2013 average prices for a cycle. Calgary has had hits to the energy sector before, similar time period, which were $388,445, it puts it into a a cycle that happens every seven years or so, and this is more realistic framework. Comparing the 2013 median prices a point many seem to forget. “It’s just a matter of how of $325,000 to 2015’s YTD of $348,000 is also eye opening. we weather through it and there are a number of varying Lurie agrees that it is a more balanced market, changing opinions,” she says. from a sellers’ market, which started in late 2014, but CREB The last time Calgarians saw a pullback in housing prices is waiting to see how spring 2015 pans out since that is was in 2009, says Lurie, and that was after two years of job usually the busiest time for real estate. In her opinion, the losses amid a worldwide recession. “If it’s a shorter period of energy industry is saying “we don’t know what’s going to time, it has a far different impact than if this extends over a happen with prices, but what we’re going to do is watch our couple of years.” BiC costs” which means not hiring more people for now. 90 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
Leading Business JULY 2015
IN THIS ISSUE... • Policy Bites: Why We’re Looking Forward to Collaborating with the NDP • Chamber member Spotlights • Upcoming Events
CalgaryChamber.com businessincalgary.com | BUSINESS IN CALGARY July 2015 • 91
2015 Board of
Directors Executive
Policy Bites Why We’re Looking Forward to Collaborating with the NDP
Chair: Rob Hawley, Partner, PricewaterhouseCoopers LLP Immediate Past Chair: Leah Lawrence, President, Clean Energy Capitalists Inc. Chair Elect: Denis Painchaud, Director, International Government Relations, Nexen Inc. Second Vice Chair: David Allen, President, Calgary Land, Brookfield Residential Properties Inc. Vice Chair, Finance: Bill Brunton, Senior Vice President and General Manager, Hill + Knowlton Strategies Alberta CEO: Adam Legge, President and CEO, Calgary Chamber
Directors David Allen, President, Calgary Land, Brookfield Residential Properties Inc. Carlos Alvarez, Audit Partner, KPMG Lorenzo DeCicco, Vice-President, TELUS Business Solutions Rob Hawley, Partner, PricewaterhouseCoopers LLP Wellington Holbrook, Executive Vice-President, ATB Financial Phil Roberts, Director of BD & Marketing, Vintri Technologies
A
n important part of the Chamber’s role is to understand the priorities of government and determine how the Chamber can align them with the priorities of your business. The Chamber works to ensure that throughout the government’s mandate, they are attentive to the needs of business as they craft budgets, policy and legislation. With Albertans voting in Rachel Notley and the NDP to a majority mandate, we know that now, more than ever, Calgary businesses will need their Chamber. The Chamber wants to ensure that we have a sense of the opportunities and possibilities that will enable meaningful conversations, not opposition for opposition’s sake. The Chamber recently launched a survey of our members to gain a better understanding of their views on NDP election platforms. We are also actively convening roundtables with members to seek their thoughts and guidance as to the opportunities associated with the new government. The first group the Chamber convened was a roundtable of small and mid-sized companies. Representative of a cross section of industries, they all shared similar comments on the known NDP platforms. Many were concerned about the proposed royalty review, increase to minimum wage and corporate income taxes. However, there were threads of opportunity and shared values. The survey and roundtable participants spoke about:
Linda Shea, Senior Vice-President, AltaLink
1. The importance of creating sound process and timing
Mike Williams, Executive Vice-President, Corporate Services, Encana
With any decision or reviews that are to be done by the new government, getting the process right, and the right people around the table to have an informed and meaningful conversation, is now, more important than ever.
James Boettcher, Chief Idea Officer, Fiasco Gelato Brent Cooper, Partner, McLeod Law LLP Management
2. Changing Alberta’s brand
Rebecca Wood – Director of Member Services
Alberta has a brand challenge with our dominant industry and the perceived environmental impacts associated with the extraction and use of natural resources. A renewed focus on sustainable development, sensibly pricing carbon and putting increased effort on the quality of our environmental practices will make meaningful strides in shifting the perception of Alberta. This can help make better collaborations on projects with other jurisdictions possible, and help us attract the most talented people in the world.
Justin Smith – Director of Policy, Research and Government Relations
3. Pulling the right levers
Adam Legge – President and CEO Michael Andriescu – Director of Finance and Administration Kim Koss – Vice President, Business Development Scott Crockatt – Director of Marketing and Communications
Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary Calgary Chamber 600, 237 8th Avenue S.E. Calgary, Alberta T2G 5C3 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com
There are many ways to tackle some of the growing issues in Alberta – income inequality, environmental regulation, fair shares, etc. The key issue is to tackle them using the right levers. Some levers will actually work counter to the intended outcome. It will be critical to work with experts and stakeholders to truly understand the domino effects of certain changes and how those changes will either support or counteract the intended outcome.
4. Igniting the entrepreneurial fire Entrepreneurs are a huge resource in Alberta. We need to work hard to keep them here. How can we support economic diversification, job creation and wealth accumulation in a shared and sustainable way? Let entrepreneurs take the lead on making that happen. The government has a chance to work with the private sector to identify ways to enable them to be successful and competitive. The Chamber will continue to listen to members of all sizes and stripes to ensure we are representing you as we work with the new government to help shape an Alberta of the possible.
92 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
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TF: 1•877•756•8349 3660–50 Avenue SE, Calgary TF: 1•877•753•8765
Chamber Member Spotlights The Calgary Chamber is proud to represent many Calgary businesses large and small; this month we are highlighting some of our industry leading members.
Thanks EY EY is a longtime supporter of the Calgary Chamber, and is celebrating 71 years of membership this month. EY is the third largest professional services firm in the world, and is a global leader in assurance, tax, transaction and advisory services. Employing 190,000 people and operating in over 150 countries around the world, EY is one of the Big Four accounting firms. Whether focusing on transforming a business or on sustaining performance and building on achievements, EY can help improve performance and effectiveness by examining everything from core management and business processes to future directions and opportunities for growth. For more information, visit EY.com.
The Chamber thanks the following long standing member companies for their years of support to the Calgary Chamber, and their commitment to the growth and development of Calgary.
Member name
Years as a member
EY
71
Canadian National Railway (CN Rail)
50
Caesar’s Steak House Ltd.
40
Xerox Canada Limited
20
City of Calgary Youth Employment Centre 10 KidSource Inc.
10
Commonwealth Hall & Conference Centre 5
Husky Energy Husky Energy is one of Canada’s largest integrated energy companies. Husky’s balanced growth strategy focuses on consistent execution, disciplined financial management and safe and reliable operations. Husky Energy has upstream and downstream operations around the world including Western and Atlantic Canada, the United States and the Asia Pacific Region. Husky’s balanced growth strategy includes a disciplined portfolio management and capital allocation process, delivering predictable results and providing a top-tier dividend for shareholders. For more information, visit HuskyEnergy.com.
Edelweiss Imports Ltd.
5
Kinghorn Projects Ltd.
5
Sur-Flo Meters & Controls
5
Transportation Licensing
5
PATTISON Outdoor Advertising PATTISON Outdoor Advertising is Canada’s largest out-of-home, transit and digital display advertising company and the nation’s market share leader, serving over 200 markets from coast to coast. PATTISON is constantly developing products to meet the evolving needs of advertisers and marketers, and provides solutions for measuring results like EyewitnessTM and web mapping. Products include billboards, digital displays, street-level units, transit advertising, airport advertising, mall advertising and specialty niche products. For more information, visit PattisonOutdoor.com. 94 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
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Gretchen Lancaster gretchen@lancasterandco.com 1-406-291-7099
Upcoming Events For details and to purchase tickets for any of the Calgary Chamber’s events, please visit CalgaryChamber.com.
Friday, July 3rd, 2015 Calgary Chamber Stampede breakfast and parade 6:30 a.m. to 12:00 p.m. | The Palomino Smokehouse – 109 7 Avenue SW Please note this is a members-only event. They say some of the best business deals in Calgary are made during Stampede, so saddle up and come on down for a hearty Stampede breakfast hosted by the Calgary Chamber. Tickets include premium bleacher seating and is the best ticket in town to watch the parade. A limited number of seats will be available, so get your tickets soon! Bring your colleagues, clients and the little cowpokes, and don’t miss the first breakfast of Stampede 2015!
Tuesday, August 11, 2015 Fast-Growth Champions 5:30 p.m. – 7:30 p.m. | Commonwealth Bar and Stage – 710 10 Avenue SW Join us for an after-work beer on us as we welcome a new crop of Fast-Growth Champion panellists. Fast-Growth Champions has quickly become a vital part of the Chamber event series, and features the fascinating entrepreneurs behind some of Alberta’s fastest growing companies. Often displaying the human side of business, this series seeks to inspire, inform and ignite all facets of the entrepreneurial spirit. It doesn’t get much better than this. Great food, cool venue and a stellar lineup of some of our city’s most engaging and up-and-coming entrepreneurs.
Nominations are open for the 2015 Small Business Week Awards Every year in the third week of October communities around the country celebrate Small Business Week™ started by Business Development Bank of Canada to pay tribute to the many contributions that small businesses make to our economy. The Calgary Chamber, along with its partners, leads one of the largest Small Business Week celebrations in the country. The highlight of Small Business Week Calgary every year is the Small Business Week Expo and Awards show. This event is an opportunity for all Calgarians to celebrate and recognize our city’s greatest small businesses. Nominations for the 2015 Small Business Week Awards are now open. Recipients of these awards often grow into Calgary’s medium and large businesses. Winners of the Small Business of the Year Award have gone on to become some of Calgary’s most iconic companies. Past winners include Alberta Boot Company, Blaskin and Lane, Blackfoot Motosports, Bow Cycle, Chocolaterie Bernard Callebaut, Elevate Auctions, Pet Planet, Spolumbo’s Fine Foods and Deli, Village Brewery, Venture Communications as well as many others. The Chamber has an exciting lineup of award categories this year, including three new awards. Nominate your business or your favourite small business for a Small Business Week Award today at www.SmallBusiness WeekCalgary.com.
96 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
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CULINARY CHEMISTRY at Q Haute Cuisine BY RENNAY CRAATS
W
“With fine dining, you have the stereotype of being stuffy, intimidating. We don’t want that,” says Marcello Belvedere, Q Haute co-owner. And the restaurant has succeeded. A stone’s throw from the Bow River, it has embraced its breathtaking surroundings and, while the decor is contemporary and clean, it also incorporates the natural beauty just outside its wall of windows. The decor is simple, allowing the star of the show – the food – to shine. The menu items are as beautiful as they are delicious, “If you interfere with a chef’s creative spirit consider him edible works of art on ceramic or her dead.” It is this spirit that set the course for Q Haute canvases. Until 2008, the Calgary dining experience was always the same in one aspect – it was menu Cuisine as Calgary’s culinary visionaries. driven. Chef Michele Aurigemma wanted to bring something innovative to Calgary. In 2008 Chef made the bold move to remove the menu from the dining experience. Much like a theatrical event, the customer would now be taken on a journey of the palate. “This wasn’t anything new in cuisine but, as a Calgarian, I knew it was a bold move as the change was new to our market. It turned out that Calgary was more than ready for a new dining experience,” said Aurigemma. hen it comes to pleasing the guest, Q Haute Cuisine sets the standard; amazing contemporary food, impeccable service, a knowledgeable sommelier and incredible decor. What it lacks, however, is the unapproachable, intimidating atmosphere often associated with fine dining establishments. Instead, over the past ten years, Q Haute Cuisine has worked hard to create an environment where guests feel at home every time they walk through the door.
www.qhautecuisine.com | 10th Year Anniversary | Q Haute Quisine | 1
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CULINARY CHEMISTRY at Q Haute Cuisine
What’s on offer changes with the seasons and with what is fresh from local purveyors that day, so each visit is a unique experience. Central in the kitchen is an automated garden filled with sprouting herbs like chervil, sunflower shoots and spearmint, all ready to be picked and plated in seconds. “Getting ingredients as fresh as possible makes a big difference to the finished product on the table,” Belvedere says. After all, it’s all about the customer. An express menu gives diners a selection of dishes for a quick lunch while the evening fare is a four- to seven-course tasting menu. The chefs can work around allergies and dietary restrictions, offering great vegetarian dishes and an almost entirely gluten-free menu. Over the years Q Haute has become a popular downtown destination; its 40-seat dining room is
2 | Q Haute Quisine | 10th Year Anniversary | www.qhautecuisine.com
often full. For weddings and special events there are three private rooms which have seen parties of over 200 people. There will be is an extra-special event at the restaurant this August. Q Haute Cuisine is celebrating its ten-year anniversary with an incredible ten-course Q Classics dinner. This milestone is a great opportunity to look at all that has changed since Q Haute opened in 2005. Diners are no longer content going out and ordering off an à la carte menu. Instead they want to be challenged, surprised and indulged – from wine pairing menus to unique ingredients to decadent dishes. By merging chemistry and physics with traditional cooking, the chefs are transforming and reinventing foods in a fascinating way. In some cases, they are playing with structures and shapes – stabilizing bubbles into an airy, flavourful foam, making mousse in a whipped cream canister,
CULINARY CHEMISTRY at Q Haute Cuisine
and creating unique frozen or partly-frozen delights using liquid nitrogen. The anti-griddle (a flatbed griddle reaching -35 C) allows chefs to control the level of freezing foods undergo and also allows for higher amounts of alcohol in creations because of the low temperature. Spheres are a restaurant favourite made by puréeing or liquefying foods and then using sodium alginate and calcium chloride to cause a reaction. This reaction creates a skin on the ball while leaving the insides soft or liquid. Diners can then pop these spheres on their plates in the case of sauces or pop them into their mouths for a flavour explosion. “You can take something and serve it in a way that is unusual and unexpected,” says sous-chef Paul Stoffel. “We like to do it as a surprise, to shock the senses.” Q Haute is also using technology to enhance main dishes
using sous vide. This technique involves vacuum sealing food and flavourings in a package and then placing it into a circulating water bath at a precise temperature to slow-cook to perfection. It takes a long time to cook some meats but is well worth the investment. “Traditional cooking tends to push all the juices out as it’s so high a temperature. But here there’s no shrinkage, you don’t lose juices and it converts the collagen into gelatin a lot more efficiently,” says Stoffel. From amuse-bouche starters to the sinfully delicious desserts, Q Haute Cuisine is applying science and creativity to its already proven menu and quality service to make an evening out a true experience. With the innovative and passionate chefs constantly honing their craft, it’s exciting to imagine what the next ten years will bring.
www.qhautecuisine.com | 10th Year Anniversary | Q Haute Quisine | 3
Bon Ton Meat Market T
he new Bon Ton is far more than a premium meat market with delicious homemade pies and fresh-cut meats. The Calgary landmark has moved its operations to Crowfoot Crossing Shopping Centre, offering a large showroom with a full-service deli while still maintaining its traditional emphasis on personalized and knowledgeable service. While the 7,000-square-foot location may look vastly different from the original Bon Ton that opened its doors on 7th Avenue and Centre Street in 1921, the premise behind the business has never swayed. Bon Ton Meat Market remains an old-fashioned and truly unique business with a deep and rich history, but it has evolved with the times offering clients all the latest products from gluten-free options to more exotic products including pheasant and elk. Today, Bon Ton remains a quality and service-driven company where every client is individually served by one employee from the beginning of their shopping experience until the end. All clients receive undivided attention to ensure their every need is met in the manner to which they expect, deserve and have become accustomed to – as is demonstrated with Bon Ton successfully receiving the Consumer Choice Award for 13 years in a row. To maintain their clients’ complete and unconditional
Bon Ton Meat Market Bon Ton is proud to be your Consumer Choice Award winner for 15 years in a row
satisfaction, two basic fundamentals form the basis of the Bon Ton business. Firstly, it starts with buying the best products possible from the highest grades of AAA Alberta beef and free-range poultry to grain-fed lamb, milk-fed veal and fresh Alberta pork. Complementing the selection of high-end meat products is 24 types of deli salads, a delicious selection of homemade prepared hot and frozen foods, cheeses and mouth-watering desserts. Secondly, Bon Ton’s staff possess the knowledge, experience and skills necessary to properly prepare all the different cuts of meats. The meat cutters at Bon Ton share over 250 years of experience, allowing them to handle any request while guaranteeing satisfaction. “We have a tradition for the highest quality,” says Bon Ton Meat Market owner Greg Keller. “Good just isn’t good enough. It has to be great!” The future for Bon Ton includes continuing to evolve with the ever-changing buying trends of the public, while remaining committed to the finest quality products and exceptional service. In addition, Bon Ton strives to be a good corporate citizen by giving back to the community and supporting a number of charitable causes.
Hand-crafted excellence.
Bon Ton Meat Market Bon Ton is proud to be your Consumer Choice Award winner for 14 years in a row
15-time winner
Finest Q uality p roducts Old Fash and ioned p ersona lized service , guara nteed.
14 -time winner
Finest Q uality p roducts Old Fash and ioned p ersona lized service , guara nteed.
Our friendly experienced staff are always around to help make sure any customer will be a returning customer.
Prestige would like to thank you, our customers, for 25 successful years in business. We look forward to working with you over the next 25 years! Our friendly experienced staff are always around www.prestigerailings.com
403.282.3132 | 28 Crowfoot Circle NW www.bontonmeatmarket.com
2777 Hopewell NE Calgary 403.282.3132 | 28 Place Crowfoot Circle NW (403) www.bontonmeatmarket.com 250-1020 • Toll Free: 1-800-382-8502
100 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
to help make sure any customer will be a returning customer.
businessincalgary.com | BUSINESS IN CALGARY May 2015 • 97
The Best from the Best • Golf
The
Best from the Best
Some of Calgary’s top golf gurus share their best advice BY COLLEEN WALLACE
G
olfers are rarely satisfied. Even when they don’t fib and exaggerate, it’s rarely a great day. Every golfer is open for tips and tricks of the game. Almost halfway through Calgary’s much-too-brief golf season, Business in Calgary reached out to five of Calgary’s golf experts at five of the most popular Calgary-area golf courses, and boldly and unashamedly dared ask for some usable hot tips.
businessincalgary.com | BUSINESS IN CALGARY July 2015 • 101
The Best from the Best • Golf
Kevin Heise, general manager at Calgary’s Springbank Links.
Terry Carter, the owner and one of the golf pros at the National Golf Academy and various Calgary public courses.
Slade King, COO and golf pro at Links of GlenEagles.
102 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
Jacob Manz, senior golf associate at Priddis Greens Golf and Country Club.
Ryan Anderson, head teaching professional at the Glencoe.
The Best from the Best • Golf
•K evin Heise is the personable and expert general manager at Calgary’s popular Springbank Links. •T erry Carter is the owner and one of the much-in-demand pros at the National Golf Academy on 50th Avenue SE and ‘resident pros’ at various Calgary public courses. •J acob Manz is the knowledgeable senior golf associate at Priddis Greens Golf and Country Club. •R yan Anderson is the upbeat head teaching professional at the Glencoe. • Slade King is the busy COO and pro at the popular Links of GlenEagles.
Hole #16, the signature hole at GlenEagles, a 150-foot drop with the Rocky Mountains and Bow River Valley as a backdrop. Voted Best Par 3 in Canada by Score Magazine.
What are the most common things weekend warriors need help with? Manz: Stretching before the round. Stretch for five minutes before hitting a golf shot. Most race to the range, whack a few balls and next thing they know they are teeing it up. Roll a few putts and get the speed of the greens before your round. It helps eliminate that first hole three putt. Heise: Manage your expectations. Focus on enjoying your day. Off the tee, slow down and simply put it in play. Having a second shot from the fairway or first-cut really beats chipping out or teeing in back up. King: Your score is going to be directly related to how much you practice and how often you play. Play the right tees, move up a tee and discover that you are hitting better irons into greens, the par 3s are more manageable, and you can go for more par 5s in two! Anderson: Fixing a slice. Aiming. Improving consistency. Carter: Warm-up! It’s so often overlooked. The bottom line is that we use 500 muscles and need to coordinate it in 1.5 seconds. Stretching out your legs, back, arms and neck is
a must. Even five minutes of stretching is better than rapid firing 20 balls on the range to get ready.
Does type of ball really matter? King: There are hard balls and soft balls. Hard balls go farther but are more difficult to control on the greens. Softer balls feel a lot better on the greens but generally will not fly as far off the tee. Anderson: It depends on your swing speed, shot height and curvature. I play the new Titleist Pro V1x which is long off the tee, yet has a real soft feel and spins more with short shots around the green. Carter: Distance balls are used by beginner to intermediates. Total performance balls are a hybrid that combine great distance and a soft feel and spin for around the greens. These are used by low handicappers and touring pros. Manz: It depends on what type of swing speed and what your typical ball flight is. Heise: Grow up! No one wants to play with a ball blamer or a club thrower. businessincalgary.com | BUSINESS IN CALGARY July 2015 • 103
The Best from the Best • Golf
Tricks of the tee Carter: Find a level surface to stand on, and tee up the ball about halfway above the top edge of the driver. Hit the ball on the upward swing to hit the ball in the centre of the face, to create a high launch with low spin. The practice swing is a must! It’s a rehearsal of your swing but more importantly, to get the feel for the length of the golf club. All clubs are different lengths so it will create a different arc and swing plane. Anderson: Tee off on the side of the trouble and hit away from the hazard. Tee it low in the wind and swing easy in the wind to help keep the ball out of the wind. Tee up all shots, even your irons. King: You do not have to hit the driver off every tee. Consider the length of the hole, what the yardage of your second shot will be, and where the trouble is. Heise: Trying to hit the perfect shot. Manz: Hitting a driver on every hole is a common mistake. It is smarter to hit a fairway wood or a hybrid to stay short of those nasty hazards. Ninety per cent of the time, golfers go right to the middle of the tee box. Tour players are always looking at the dangers and strategically teeing up from the side that gives the best chance of hitting the fairway.
Differences in types of putters Manz: Finding the right putter is important. Your putting stroke will determine what type of putter you will need. If you putt straight back and through or if you have a strong arcing putting stroke. Heise: There are two types of putters known to man. Putters that make them ... and putters that don’t. Don’t look at the price tag. Choose the one that feels like it will make the most putts for you. Carter: There are mallets, blades, long, short, dark, light, etc. Be sure you like the weight and the look of the putter. The most important aspect is lie angle – how the club lies on the ground. Anderson: Face-balanced putters, which are most likely a mallet style or centre shafted, work best for straight back and through putting strokes. Offset style putters help put the hands ahead of the putter face at address. Putters with insets help make the hit feel softer. Length of the putter is important. Most players tend to use a putter that’s too long. King: Putters are all about personal preference and confidence. A mallet head is typically face balanced and stays square as you bring it straight back and through. A blade head is weighted with the face hanging open – better if you like to stroke the ball on an arc.
104 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
The Glencoe’s Ryan Anderson splashing it out of the sand on hole No. 9 of the Slope at the Glencoe.
Tricks of the green: common putting mistakes Heise: Don’t leave your first putt short. Those never drop no matter how perfect your line is. Hit the putting green before your round. It helps your green speed and gets your rhythm going. Manz: Not reading enough break. Most golfers read their putts from the same side. The easiest way to read a putt is to look at it uphill. When looking at a putt uphill you can see the slope of the green so much easier. A rule of thumb is putts will generally break away from hills or mountains and towards water or drainage areas. Amateurs are always afraid to hit a putt past the hole and leave most putts short. Remember: 100 per cent of putts that don’t make it to the hole don’t go in. Carter: The first common mistake is a bad setup position. Bend from your hips, get your eyes over the ball with the proper grip, and align the ball just forward centre. The most common pitting swing mistake is using too much wrist action to hit the ball, instead of a proper pendulum motion created by rocking your shoulders. Read the green! Things like “grain” (direction the grass grows) wind, slope, speed, etc. must be considered. Anderson: Don’t underestimate the break of the putt. Aim the ball markings or logo at the hole or the spot you want to hit your ball towards on the green. Grip to putter more in the palm with thumbs on top to help stabilize the putter during the stroke. Keep your knees and hips quiet on short and mid-length putts. King: Most people don’t spend enough time on the practice green. It causes too many three putts. Spend more time before or even after your round hitting 15-30 foot putts. It does wonders. Get a feel for the greens so that all of your 20-foot putts end up within a two-foot circle. Having a keen eye for distance control can drop strokes in a hurry. BiC
CALGARY CONNECTS THE CANADIAN LEGAL COMMUNITY 800 delegates, one place, one time zone and one great city The Canadian Bar Association will hold its 2015 Canadian Legal Conference (CLC) at the Calgary TELUS Convention Centre (CTCC) on August 14th to 16th of this year. The annual CLC is the national gathering of Canada’s legal industry and provides a national perspective on current law practice through professional development, networking, and keynote speakers. Attending the conference are lawyers practicing in small and large firms, corporate counsel, solo practitioners, mediators, judges, legal administrators, and law students. The Canadian Bar Association (CBA) is a leading organization committed to enhancing the professional and commercial interests of a diverse membership and represents over 37,000 members from across Canada. Last held in Calgary in 2007, the annual conference is an opportunity for the Canadian legal community to gather in one place, in one time zone, to share, to learn, and to debate current issues and future directions. This year the CLC organizers anticipate over 800 attendees at the August event and many will bring family and friends to Calgary. In addition to the official conference events, attendees and visitors to Calgary will have access to all the amenities that our great city has to offer. Meetings and Conventions Calgary (MCC) operates through a partnership between the Calgary Hotel Association and the CTCC and offers a range of support services to organizations holding conferences in the city. Connecting conference attendees with local businesses, MCC ensures visitors experience the best Calgary has to offer in accommodation, dining, heritage sites, and outdoor experiences. The 2015 CLC will feature an exceptional list of keynote speakers who will address a range of engaging topics on the practice of law in the 21st century: the importance of design in legal practice; psychological resilience and change in law practice; and how to calculate risk for better creativity and innovation in legal practice. Opening the conference, The Right Honourable Beverly McLachlin, P.C. (Privy Council for Canada), Chief Justice of Canada will give her address “Building a Better lawyer- Why It is Important” to set the stage for what promises to be a fascinating conference for all who attend.
calgary-convention.com | expandthecentre.ca businessincalgary.com | BUSINESS IN CALGARY July 2015 • 105
Looking 150 Days Down the Road with Calgary Economic Development’s New President and CEO
T
welve years after moving his family to Calgary from Ontario for a job at a new economic development agency, Bruce Graham said goodbye to the organization he helped create. He has left very big shoes to fill so to speak, but his former vice-president of marketing, communications, research and community engagement is up for the task. After a nearly four-month national search by Calgary’s Boyden Executive Search to replace Calgary Economic Development’s outgoing president and CEO, Mary Moran proved she was up for the challenge. A proud Calgarian with extensive experience in a variety of sectors, Moran has been with Calgary Economic Development for five years. In that time, she led a number of key initiatives for the organization including the Calgary. Be Part of the Energy campaign and brand that is used by all of Calgary’s promotional partners; the YYC is Open flood recovery campaign; and the update to a 10-year economic strategy for Calgary: Building on our Energy. The update to the strategy engaged over 400 business, community and civic partners in generating a holistic approach to economic development that provides a road map to building a strong community, embracing shared prosperity and creating more sustainable development through purposeful diversification. Building on our Energy aligns the City of Calgary, its civic partners, private sector and other community organizations in achieving economic competitiveness. It is truly a collaboration. Although Calgary Economic Development led the development and acts as the steward of the strategy, it is only responsible for 11 of the 31 key strategic initiatives. The leadership implementation team meets three times each year to check-in, measure progress and adjust tactical plans to adapt to the changing environment. Building on our Energy is a community-wide economic strategy that Moran and the other partners in economic development are committed to following as a guide through the ups and downs of economic cycles.
106 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
Mary Moran, Calgary Economic Development’s new president and CEO
This collaboration is a common theme through every project Moran has worked on at Calgary Economic Development, throughout her career and in many volunteer community projects. It’s one of the key reasons she was chosen to lead Calgary Economic Development as it heads into its next chapter. Over the next several months, she will be out in the community listening and learning from her staff of 30 passionate economic developers, community partners, the business community and working alongside the city and the new provincial government. From there, organizational plans will be evaluated, adjusted and implemented ensuring the organization is managing the changing demands of the business community. Although there is a new face at the head of Calgary Economic Development, they will continue their role as conduits, connectors, catalysts and storytellers, and will help shape and share Calgary’s story across the country and around the world. And like everyone at the organization, Moran is proud to be invited to continue to be part of the energy. To connect with Moran, email mmoran@calgaryeconomic development.com.
The Visitor Economy is
Alberta’s Future
BY TRAVEL ALBERTA
T
ourism is a central player in Alberta’s economy. Its importance to the province’s well-being is especially critical during periods of volatility within the energy sector. Indeed, Alberta’s “visitor economy” holds great promise as a core pillar of economic diversification now and in the future. One of the fastest growing and most resilient sectors in the world, tourism is a key economic driver in Alberta. It’s a $7.4-billion industry that supports 19,000 businesses and employs more than 114,000 people across the province. Alberta’s goal under the Tourism Framework is to grow tourism revenue to $10.3 billion by 2020. In Calgary alone, visitor spending contributed $1.7 billion to our economy in 2014, and supported 68,305 jobs. The full impact of the visitor economy is felt when the multiplier effect of tourist spending ripples throughout our whole economy, supporting job creation, infrastructure development and community building. The bottom line: tourism works for Calgary and Alberta.
What is the visitor economy?
The visitor economy refers to the widespread and often unseen benefits to Alberta by dollars spent by travellers. Tourism is more than just a business sector; it’s an economic driver that crosses multiple industries and supports growth in myriad ways. Here’s an illustration: A family from California comes to the Canadian Rockies to ski. They take a flight, rent a car, stay in a lodge and rent snowboards. This is the “direct” impact of the visitor economy: local businesses receive money from tourism spending. Because of this spending, the snowboard rental business is able to make a profit and hire more staff. This “indirect” impact of tourism spending becomes an economic driver, supporting wages, salaries, profits and other business costs. Also, as more visitors come to the ski resort, more work is generated in the supply chain, as wholesalers, food and beverage suppliers, convention planners, retailers, manufacturers, etc., are called upon to meet customers’ demands.
The ripple or spillover effects of this induced impact is felt as income and taxes are spent throughout the province on housing, education, transportation, infrastructure, energy, communication, heath care and other personal costs. The end result is that tourism dollars circulate throughout the economy, amplifying their impact along the way, and resulting in support for community building and economic well-being. The whole province benefits.
By the numbers
The importance of Alberta’s visitor economy can’t be underestimated. In fact, the growth of tourism as a leading economic player is part of a global trend. Consider: • Travel and tourism now makes up 10 per cent of the world’s GDP; • Travel and tourism accounts for about 10 per cent of all employment in the world; • Tourism contributed $2.6 billion in GDP to Alberta in 2012; • Total tax revenue from Alberta tourism was $3.4 billion in 2012; • Total economic impact of visitor spending in Alberta was $8.3 billion in 2012. As Alberta works towards greater economic diversification and less reliance on the volatile energy sector, tourism presents huge opportunity and economic benefit. At a global level, the travel and tourism industry outperformed growth in the majority of leading sectors in 2014 – including automotive, public services, retail and financial services – according to the World Travel and Tourism Council. Alberta is in a prime position to elevate the importance of tourism as a core pillar of economic diversification. Through a collective approach, the tourism industry is poised to continue to grow the visitor economy and play a leading role in ensuring a prosperous Alberta today and tomorrow.
businessincalgary.com | BUSINESS IN CALGARY July 2015 • 107
A Startup’s Guide to Renting Space BY ANDREA MENDIZABAL
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hen expenses are on a shoestring budget, it can be challenging for a startup to know when to make the leap from the home office to a commercial office space. Building your startup from a home office is great for offsetting costs while growing and acquiring first customers. However there comes a turning point in a startup’s growth when the home office no longer lends itself to a professional environment. How do you know if your business is ready? Where do you go? How much space do you need? What services are you looking for? Is coworking a better option? The number of questions can be daunting. For Charles Gammans, founder of Ultralight Technologies, it came down to people. “It’s a challenge; it’s really hard to know when it’s time to look for space,” says Gammans. “I would say the definitive factor is when you have employees and require that daily interaction, or when you find yourself booking multiple client meetings and need an environment that looks reputable.” As a startup, a crucial part of building a successful company is the people. Chris Goodall, managing director of InvenSense Canada, agrees. InvenSense Canada, formerly Trusted Positioning Inc., grew from a three-person team to 20-plus employees, to recently being acquired by a multibillion-dollar U.S. company. Now, the company is expanding in Calgary and is looking for office space to grow into. “You have to have a good location for your people, that should always be number one,” says Goodall. “I think that for any high-tech startup company, the most important thing is the people, the employees. It should be a priority to keep them happy.” Anthony Lewis, commercial real estate associate with RE/ MAX Complete Commercial, explains that there are some 108 • July 2015 BUSINESS IN CALGARY | businessincalgary.com
other key factors that every company should think about when looking to rent space. “Before starting their search, startups should know how much they want to spend. Figure out the size of office space you need and work within that budget,” says Lewis. “You should also know how long you would like to lease for and in what quadrant of the city. Location can make a big difference.” According to Lewis, the current economic downturn has had an effect on the commercial rental market in Calgary. “Out of the four sectors – industrial, retail, office and land – office is in a slump,” says Lewis. “Vacancy rates are high and the downtown core is definitely feeling the economic downturn.” With the downturn, startup companies at the next stage of growth have an opportunity to ease into the commercial rental market. “There is a lot of office space available right now and we are seeing some flexibility with landlords,” says Lewis. “You can find a good rate with a five-year term, or negotiate a monthto-month or one-year lease – it’s all about understanding the current market and knowing how to negotiate with the landlord.” With a spectrum of possibilities, taking the first step into commercial office space can be daunting, but knowing the answers to some of those key questions can help any startup company on their journey to finding suitable space. Keep in mind that when looking for space, it is also important to align your current needs with your projected business plan growth. You don’t want to outgrow your space too soon and you don’t want to occupy too large a space either. The right space is the result of providing your business with employee engagement, increased reputability, affordability, the right location, and room for growth. To learn more about Innovate Calgary and how it supports new and emerging entrepreneurs, visit www.innovatecalgary.com.
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MarketingMatters • David Parker
MarketingMatters
BY DAVID PARKER
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hen the going gets tough public relations and marketing have been the first to go; but not this time as it seems that telling the stories and promoting services and products has even ramped up in some areas. Public and media relations are busy practices in this city today and we have some experienced professionals who are being kept busy. People like Rosemarie Enslin, Judy Guenther, Shauna MacDonald, Sheenah Rogers, Sarah Geddes, Bonnie Elgie, Silvana Saccomani and Leah Murray – and I can’t help but notice they are all ladies – are ones that come to mind as doing a fine job in getting ink and airtime for their clients. And having fun doing it. •••••••••••••• Brookline Public Relations is the company that Shauna MacDonald runs out of the character Lorraine Block on 12th Avenue SW, looking after some great and long-standing local clients. But she has also reached up into Edmonton where her team has been busy working as the PR agency of record for the Edmonton Arena District (EAD). Brookline is managing and coordinating PR activities including media relations, crisis communications, event planning, social media and marketing communications for Canada’s largest mixed-use sports and entertainment development that will help transform and revitalize downtown Edmonton. A joint venture of the Katz Group and WAM Development Group, it will be
anchored by the Rogers Place Arena. Its in-house news tells me that Lisa Libin has been promoted to group director and Alisha Samnani is the new account supervisor. And there is other news in new and renewed accounts like Jack Daniels Tennessee Whiskey, the Canadian Alliance to End Homelessness and Cococo Chocolatiers. •••••••••••••• Also on the PR front, I was informed by Sheenah Rogers, principal at Anstice Communications, that her firm is enjoying working with Minto to introduce the Toronto-based residential developer into the Calgary market, and helping Western Securities in rebranding and marketing Willow Park Village. •••••••••••••• ClearMotive Marketing Group has begun working with Bloom Cultivation. Bloom is one of the first commercial medical marijuana growers positioned to open in Calgary amid a revamp of Canada’s medical marijuana system. CEO and founding partner Tyler Chisholm says ClearMotive will complete a positioning and brand strategy followed by print design and digital, including website development supported by a full content marketing strategy. •••••••••••••• Stir Films division of Corkscrew Media has been chosen to produce two more Heritage Minutes for Historica Canada. The company was the first production house to shoot Heritage Minutes in Western Canada on the topic of the First World War: stories of the Winnipeg Falcons hockey team and the Canadian Nursing Sisters. And I hope you caught the CBC Television special last month featuring Alberta Ballet and singer-songwriter k.d. lang; Corkscrew Media president Scott Henuset and his team produced a terrific show.
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•••••••••••••• Melanie McKenzie, who was previously with Calgary agency Watermark that evolved into Cult, is enjoying time in the mountains as CMO brand and marketing for Rocky Mountain Soap based in Canmore. McKenzie has become a devout messenger of the company that has an unwavering commitment to be toxicfree, making products that use none of the 80,000 or so chemicals industry is using to make skin softer, hair shinier and teeth whiter. •••••••••••••• And another of my favourite PR people is Jessie Cayabo, who represents national agency Immedia PR here in Calgary. Busy with local accounts like Charcut Roast House, Parc Cafe and Brasserie and Eau Claire Distillery, Cayabo is having fun helping store manager Gino Marghella to promote the new Italian Centre Shop on Fairmount Drive SE. •••••••••••••• Inglewood has been home to some of our best creative people, but one of the keys has moved all the way west to 10th Avenue and 7th Street. Phil Copithorne and Leigh Blakely have relocated C&B Advertising to the character Cooper Block that is also home to Evans Hunt Group. It has taken the whole of the fifth floor, comfortable space for its 15 full-time staff and client meeting rooms. Naturally C&B has been busy with the Stampede but also recently rebranded the town of Jasper and helped launch the new Century Downs Racetrack and Casino for Horse Racing Alberta. Parker’s Pick: Corkscrew Media’s promotion reel on its web.
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