Business in Calgary - July 2022 by Business in Calgary

JULY 2022 | $3.50 BUSINESSINCALGARY.COM

TEN YEARS

OF THE SHAW CHARITY CLASSIC

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JIM RIDDELL AND BRAD SHAW REFLECT ON THE GOLF TOURNAMENT’S ENORMOUS IMPACT IN CALGARY AND BEYOND

THE BOOM AND THE CHALLENGE

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CALGARY CHAMBER SECTION

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Film for the Ring

Golden Rainbow.

The Legacy Lives on at J. Vair Anderson Jewellers BY RENNAY CRAATS

hey say that good things come in small packages, but great things come packaged in jewellery boxes. And the greatest things come in packages from J. Vair Anderson Jewellers. For nearly 100 years, Calgary’s most respected jewellery store has been delighting brides, spouses and cherished loved ones with an incredible selection of watches, rings, bracelets, earrings and necklaces.

J. VAIR ANDERSON • CELEBRATING BUSINESS EXCELLENCE

From the very beginning, J. Vair Anderson Jewellers has provided Calgarians with high quality jewellery pieces from the most coveted brands on the market. It started with J. Vair Anderson, a trained watchmaker from Ontario who headed west to make his fortune in the early 1900s. He apprenticed under notable local jeweller D.E. Black before opening his own store on 8th Avenue in 1925. As the business grew, the store moved from its flagship location to a new spot in the Core in TD Square and finally settled in its current 3rd Street SW location where it has done business for the past 22 years. The family business was passed from J. Vair to his son, Gordon, and then to his grandson Ken Anderson. In 2016, Annette Toro took over the business and is as committed to the company’s success as were the generations that manned the store before her. “J. Vair has a great reputation and is a staple in the Calgary community. I feel honoured to be able to carry on the legacy of the Anderson family,” says Annette Toro, owner of J. Vair Anderson Jewellers. As the keeper of the J. Vair legacy, Toro has continued to provide exceptional service and products while keeping up with modern fashion trends. The landscape of retail has changed significantly since the founder’s days and the expectations of represented brands have soared. In response, Toro renovated the store to provide brands with a “shop in shop” set up. As have many retailers around the world, J. Vair Anderson Jewellers has accommodated its valued brand partners by employing the concept of a store within a store where brands like Rolex, Wellendorff and Mikimoto can uniquely showcase their lines in their own section of the space. All the while, she is continuing to attract new brands to represent in the store to offer more variety and selection to customers. “One of the key successes of J. Vair is that it has changed with the times,” says Toro. “We’re constantly adapting, changing, reinventing and renewing brands. We believe in adapting to our environment.”

Whether visitors to the store are drawn to the refined luxury of Henrich & Denzel pieces or the beautiful, handpicked gemstones of Lauren K, the handcrafted beauty and quality of IsabelleFa jewellery or the fine selection of Mikimoto pearls, the exceptional designs of Wellendorff or the timeless elegance of the J. Vair Anderson line of jewellery, they are sure to find the perfect piece that fits both the occasion and the tastes of the wearer. The jeweller strikes a good balance between the latest fashions and classic styles, and no matter the design it always features quality stones that stand the test of time. Many of the pieces at the store are diamond-based, and the jeweller deals only in stones with incredible clarity, cut and colour. But J. Vair Anderson carries something to suit every taste so if diamonds don’t appeal to a customer, the cases display a fine selection of jewellery featuring stunning coloured stones like emeralds, rubies and sapphires from around the world. “We’re always looking at what the industry is doing and how it’s changing,” she says. “We sell many unique brands in the city that other jewellers don’t carry.” J. Vair carries Mikimoto pearls, which are considered to be the best in the world and offer stunning Black South Sea, White South Sea, Akoya or hues of gold and green that are always in style. But these aren’t your grandma’s string of pearls; Mikimoto has reinvented pearl jewellery which is far from stuffy and conservative. Today’s pearl jewellery is fashion-forward, sleek and sexy for both men and women. For those who want to a piece of jewellery to be even more special, J. Vair is happy to custom design a piece for clients. After a one-on-one consultation, the skilled designers on staff produce a hand drawn or computer rendered depiction of the client’s dream piece of jewellery. The gemologist and designer counsel customers about the stones available and help them select the perfect one for the design. The team is experienced and knowledgeable, and they are thrilled to design wedding

J. VAIR ANDERSON • CELEBRATING BUSINESS EXCELLENCE • 2

and engagement rings, commitment bands, anniversary bands or a custom jewellery piece for any occasion for customers. J. Vair also does corporate service awards such as pins, cufflinks, pendants and bracelets. Many customers come in for a custom design inspired by a piece of inherited jewellery. While these heirloom pieces are close to customers’ hearts, they may not be something the next generation would choose for themselves. Some customers want to honour their loved ones by continuing to wear the piece and opt to restore them while others ask the J. Vair team for advice about using parts of the piece to create something new that better reflects the wearer. Concept and design of custom pieces are done in-house while a partner goldsmith that has been working with J. Vair Anderson for 50 years brings the design to life offsite. The staff is committed to customers and is proud to support clients well beyond a sale. J. Vair’s team provides customers with jewellery appraisals for estates or insurance coverage, prepares diamond, pearl or coloured stone grading reports and provides natural versus synthetic identification for diamonds and coloured stones. They also do repairs on jewellery pieces, whether a customer needs a new clasp on a necklace, a ring resized or to have diamonds reset. The employees at J. Vair Anderson pride themselves on giving superior service for whatever a customer could want. And one thing that more and more customers are wanting is a watch. The custom of wearing watches waned with the advent of the cell phone, as people transitioned to getting the time from their phones instead of their wrists. Watches have once again become a must-have fashion accessory and J. Vair is the go-to jeweller for the best men’s and women’s timepieces in the city. The store is an independent Rolex dealer and also offers quality

timepieces by Grand Seiko, Bremont, Sinn and Nomos Glashutte. The staff takes a lot of time with clients to find out which brand and specific piece best fits their lifestyle and tastes to ensure they walk out with a beautiful watch that will last them a lifetime, and then some. “Timepieces have become increasingly more popular over the past five years, so much so that with Rolex for example, it’s difficult to acquire one these days because the demand is way ahead of our supply,” says Toro. “There are a lot of young people wearing watches now and they are viewing them as an investment piece that is meant to last and be passed down from generation to generation.” J. Vair isn’t limited to new watches either; the store offers customers a collection of incredible preowned quality pieces from top brands including Omega, Rolex, Patek Philippe, Hublot, Tissot and Panerai. The store also deals in previously owned jewellery including engagement rings, cocktail rings and brooches. “I love vintage jewellery so we have a section of our store where we have previously worn and loved jewellery. We’re probably one of the only stores in Calgary that does consignment or sells previously loved jewellery and certified previously owned timepieces,” she says. J. Vair Anderson is also one of the only stores that has generational clients. The staff has always taken the time to develop relationships with clients, and those relationships lead to repeat, long-time customers who pass their preferred jeweller down to the next generation. It is common for someone to come into the store for an engagement ring because his father and his grandfather before him bought their engagement and wedding rings there. It’s an honour and a responsibility Annette Toro and her team don’t take lightly. They are committed

J. VAIR ANDERSON • CELEBRATING BUSINESS EXCELLENCE • 3

to quality products, quality service and quality relationships just as the founder was in 1925. Toro is also continuing with J. Vair’s tradition of community support and involvement. She is humbled by the support of the community and wants to give back however she can. The organization supports the arts by donating to and participating in the Banff Centre for Performing Arts’ MidSummer Ball and also supports a range of children’s causes including the Alberta Children’s Hospital, Kids Cancer Care and Calgary Business Fore Kids. And as an iconic institution in Calgary, it’s only fitting that the store’s name is emblazoned on the side of a chuckwagon competing at the Calgary Stampede. J. Vair Anderson Jewellers has been part of the Calgary business landscape for almost 100 years and has been a part of people’s best memories. Whether it’s a timeless timepiece or a stunning pair of earrings or a ring that symbolizes a couple’s love, J. Vair Anderson has the perfect piece for that perfect occasion. “There is nothing more rewarding than being able to celebrate joyous occasions with our clients, whether it’s an engagement, anniversary, graduation, birthday or just because,” Toro says. The incredible staff and owner Annette Toro are dedicated to making Calgarians shine, one jewel at a time.

409 3rd Street SW Calgary, Alberta, T2P 4Z2 Phone:(403) 266-1669 Store Hours Tuesday - Friday: 10:30AM - 5:30PM Saturday: 11:00am - 5:00pm Sunday: Closed

www.jvairanderson.com J. VAIR ANDERSON • CELEBRATING BUSINESS EXCELLENCE • 4

STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 32 | Number 7

REGULAR COLUMNS

You Could use $87 Billion... Really? By Shane Wenzel

UN’s Guterres on Wrong Track with Message to Students By Cody Battershill

CONTENTS COVER FEATURE

44 52

Calgary Chamber of Commerce Alberta’s Next Big Opportunity: Health By Adam Legge

Bob Wylie: The Swing of a Legend By Scott Orban

Ten Years of The Shaw Charity Classic

Parker’s Pen By David Parker

Jim Riddell and Brad Shaw Reflect on the Golf Tournament’s Enormous Impact in Calgary and Beyond By Melanie Darbyshire

ON OUR COVER: ABOVE: JIM RIDDELL AND BRAD SHAW. PHOTO SOURCE: EWAN PHOTO VIDEO

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STORY TITLE // SECTION

Supporting the visions of entrepreneurs one story at a time. Volume 32 | Number 7

CONTENTS

COMPANY PROFILES

4 47 53 60

J. Vair Anderson Jewellers

Celebrates Business Excellence

THIS MONTH’S FEATURES

Strathcona-Tweedsmuir School

Celebrates 50 Years

Fidelity Manufacturing Group

Celebrates Business Excellence

CP Distributors

Celebrates 60 Years

38 42

47 10

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T he Boom and the Challenge Calgary’s industrial and office space By John Hardy

T urning a New Leaf Medical cannabis industry finds its footing amid changing regulations By Jamie Zachary

S ky’s the Limit Growing North American aerospace industry big business for Calgary manufacturers By Natalie Noble

T he Hot Market Cools (a bit) Seller’s, buyer’s or balanced market? By John Hardy

Leasing Information: Guy Priddle 403.571.2528 guy.priddle@cadillacfairview.com

Grow your Business with our Experience Cadillac Fairview offers a diverse real estate portfolio complemented with comprehensive property management services. Through the strength of ownership, strategic acquisitions, and development, Cadillac Fairview provides innovative, sustainable and functional facilities that are able to deliver exceptional solutions to tenants. SHELL CENTRE

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This LEED Platinum building opened the doors in 2016. Calgary City Centre is anchored in Calgary’s remarkable Eau Claire area. The building has a first-class fitness facility, professional conference centre and more. • LEED Platinum Certified • Class AAA Office • 36 Floors • 26,695 sf Floorplate • Fully Connected to the Core via +15 Walkways • Breathtaking Finishes • Energy Star Certified

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This vibrant building has a premier location offering effortless access, in and out of Calgary’s core. 635 8th Avenue is situated on Calgary’s intricate bike lanes. The building offers efficient floorplates and an energetic atmosphere. • Class B Office • 25 Floors • BOMA BESt Certified • Cogeneration System • Located on Calgary’s bike lanes • One block from the LRT Line • Energy Star Certified • +15 Connected

Family Owned, Local Business

Serving Albertans SINCE 1978

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Pat Ottmann & Tim Ottmann

EDITOR

Choose Local, Keep Alberta Strong! The Coffee Connection supports local coffee roasters through our coffee offerings. Ask us how you can enjoy locally roasted coffee at work! We offer bean to cup equipment for your office loaned free with purchase of supplies. Ask about our 30 day free trial. Locally Roasted Espresso & Steamed Milk

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ADMINISTRATION/ACCOUNTING Natalia Lopes natalia@businessincalgary.com

REGULAR CONTRIBUTORS Shane Wenzel Cody Battershill David Parker

THIS ISSUE’S CONTRIBUTORS Melanie Darbyshire Rennay Craats Jamie Zachary John Hardy Natalie Noble

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YOU COULD USE $87 BILLION... REALLY? // SHANE WENZEL

You Could use $87 Billion... Really? BY SHANE WENZEL

t is shocking how quickly things can fall apart if one sleeps longer than five hours a night, or you take a week off. Committees with agendas never rest and like to make changes and unrealistic announcements when they think no one is listening. When David Suzuki starts sending emails of advice to council in cities where he doesn’t live to pass the proposed Climate Plan, we should be setting our alarms earlier than normal. Rumor has it our shortage of workers will have to be solved by retirees picking up ‘the slack’ by coming out of retirement to fill the worker gaps. The talk around that solution isn’t because they have decided to alter their travel plans, but is due to rising inflation and a need to cover their own daily living costs. And now this. I was hoping to save this for another day, but the announcement by City Council that residents of Calgary can expect to fund a 90-plus page report that holds a casual number of putting Calgarians on the hook for $87B of changes between now and 2050, because we consume too much, is beyond shocking. I feel compelled to throw in the obvious. • Any businessperson knows you cannot logically plan a budget 30 years out, and • The City has never stayed on budget on any project, so that number will naturally grow. There are claims that two other levels of government will fund much of it and private investment the rest. My question is, do they realize we know who the funder of those ‘other levels of government’ are? And, given the ongoing demonizing of our main provincial source of revenue one

can only wonder what private investment they have in mind. They did however mention that we all have ‘to be prepared to suffer some’. I don’t recall if that ‘some’ was in caps or not. If fear of resource depletion is really a concern, or the fourth of the Horsemen of sustainable development, it is hard to know how that level of funding is possible. The narrative is that the Earth’s natural resources are finite, that society has exceeded the capacity of our planet and our resources are rapidly being depleted. Their sustainable development demands that people forget consumption and that business and governments replace economic growth with green alternatives. People in Third World countries naturally aspire to First World living standards. It is highly untenable politically for First World leaders to propose to their own citizens that they lower their standards of living and accept untenable tax increases. I suggest it is up to us to encourage and help other people to achieve a higher standard of living without undermining the standard we have spent years achieving. This is when the true leaders will show what can be accomplished without giving up the resources that got us here today. There is no real evidence that resources are depleting as today we have the greatest access to resources in history and there is evidence to suggest their availability can continue to grow if allowed. It appears the reference to natural resources is somewhat misleading. Nature is a given, but resources must be created by people. Nature doesn’t do it for us. We just need to share that knowledge.

Shane Wenzel is president of the Shane Homes Group of Companies. Follow him @shanewenzel on Facebook, Twitter, LinkedIn, Instagram and YouTube.His column is written for the Alberta Enterprise Group, @AEG on Facebook, Twitter and LinkedIn.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

UN’S GUTERRES ON WRONG TRACK WITH MESSAGE TO STUDENTS // CODY BATTERSHILL

UN’s Guterres on Wrong Track with Message to Students BY CODY BATTERSHILL

(so) it’s clear to us that any immediate shortfalls in fossil fuel production from Russia will need to be replaced by production elsewhere – even in a world working towards net zero emissions by 2050.”

For the most part, it’s been a good forum for Canada because it’s provided us with some outsized influence beyond our middle-power status. The theory is that we’ll see benefits as we help advance other less advantaged nations.

The IEA chief added that, on the production side, “the most suitable options for this are projects with short lead times and quick payback periods,” including “shale oil and gas which can be brought to market quickly, extending production from existing (oil and gas) fields, and making use of natural gas that is currently flared and vented.”

But the theory breaks down when the UN decides to push a flawed narrative through its communications channels. Take, for example, UN Secretary-General Antonio Guterres’ recent speech to Seton Hall University’s commencement ceremonies in New Jersey.

Similarly, the UK government has been warned of potential power cuts to as many as six million households this winter after models of a “reasonable” worst-case scenario predicted major gas shortages if Russia cuts off more supplies to the EU, according to The Times.

During the speech, Guterres said that “investing in fossil fuels is a dead end, economically and environmentally… My message to you is simple: Don’t work for climate-wreckers. Use your talents to drive us toward a renewable future.”

Allowing the Guterres point of view to win the day means the West, including Canada, will lose its future pool of energy workers within 20 or 30 years. Who does that help? It helps other, less-regulated regimes that will inevitably step in and fill the energy supply gap.

ince the 1945 founding of the United Nations, Canada has played a key role in helping shape UN policy. Canadians have generally seen our longterm UN involvement as a smart way to advance our own strong commitments to multilateralism and international cooperation.

Could the Secretary-General have gotten it more wrong? I doubt it. Young people want a secure future for themselves and for their eventual families, communities and the global environment. Why wouldn’t they work in an industry that is the largest Canadian spender on environmental protection, clean tech and climate-related research and development?

If Russia’s illegal conflict in Ukraine has taught us anything, it’s that the world needs a broad, pragmatic, environmental and human rights-focussed approach to filling the energy shortfall. And that means more Canadian oil and gas, not less.

The International Energy Agency’s (IEA’s) executive director Fatih Birol wrote recently that “Russia’s invasion of Ukraine has brought major disruptions to the global energy system

Cody Battershill is a Calgary realtor and founder / spokesperson for CanadaAction. ca, a volunteer-initiated group that supports Canadian energy development and the environmental, social and economic benefits that come with it.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

OFF

THE

Meeting a Growing Need The Salvation Army Plans New Community Resource Centre in Forest Lawn

For over 20 years, The Salvation Army has served the residents of SE Calgary from its storefront location in Forest Lawn. While the facility has served the organization and community well, it is now time to expand because of increased demand upon The Salvation Army programs and services in recent years. More storage capacity is needed for emergency food hampers and supplies for families in need. Meeting rooms for resource specialists and referral services are in demand, and the current space is too small as staff work diligently to meet with people in a timely manner. There simply isn’t enough space to meet the growing needs of the community. All this is about to change. The Salvation Army is now developing a 50,000-squarefoot community resource centre in the vacant Target store on International Avenue and 52nd Street SE. The centre will become a focal point providing new and expanded services to the community. “This allows us to expand our services in Forest Lawn by being able to increase the capacity of our current programs as well as add new programs to meet the everchanging needs of the community,” says Cliff Wiebe, executive director, Community Service in Calgary for The Salvation Army. Wiebe says that the centre will also provide space and opportunities to partner with other community agencies. “Our overall focus is to connect with families who are barely getting by and walk alongside them to provide the supports they require to move to a place of health and stability.” The resource centre will support the growing list of clients by providing them with essentials like food hampers, accessing government assistance programs, spiritual care and more. “We will also focus on helping people gain more independence through a host of literacy programs, such as language learning, financial literacy, system navigation literacy, technology literacy for increased computer skills, cultural literacy for being able to connect and better understand the cultures around us,” says Wiebe.

The Salvation Army adds that there is strong community support for the facility and that the new centre will be a welcoming and safe place for people to come to connect and get the support they are looking for. Fundraising is underway, kicked off by a $1 million donation from long time The Salvation Army Calgary Advisory Board member Gerry Wood and his family. “It’s our family priority to give back and support the community,” says Wood. “The Salvation Army is on the front line of providing services to those in need, and we know how hard they work to deliver programs and services in the most cost effective and efficient way. Every dollar goes right into programs and services.” The community resource centre is set to open in the fall of 2022. To learn more about The Salvation Army please visit Salvationarmy.ca. ABOVE: CLIFFORD WIEBE.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

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Did you accept Visa or Mastercard credit cards between March 23, 2001 and September 2, 2021? If so, apply now to receive money from class action settlements WHAT IS A CLASS ACTION? A class action is a lawsuit filed by one person on behalf of a large group of people with the same legal claims.

WHAT IS THIS CLASS ACTION ABOUT? Class actions were started in Canada claiming certain banks and Visa and Mastercard conspired to set higher interchange fees and to impose rules restricting merchants’ ability to surcharge or refuse higher cost Visa and Mastercard credit cards. Interchange fees are charges that merchants have to pay in order to accept Visa and Mastercard credit cards. Settlements totaling CDN$131 million in net compensation were reached with Capital One, Citigroup, Bank of America, Desjardins, National Bank, Visa, Mastercard, CIBC, Royal Bank, Bank of Montreal, TD Bank, and Bank of Nova Scotia. The settlements have received court approval. The settlements are a compromise of disputed claims and are not admissions of liability.

If you are a large merchant (your average yearly revenue is over $20 million), you are eligible to receive $250 for each year that you accepted Visa or Mastercard credit cards. Large merchants must provide proof that they had at least one agreement with an acquirer (also known as a payment processor) since March 23, 2001. To be eligible to receive more than $250 per year, large merchants must provide documents showing credit card sales volume or payment of interchange fees. Large merchant claims made with documentary proof will be paid proportionally relative to the value of all approved large merchant claims. Visit www.creditcardsettlements.ca for more information.

HOW DO I MAKE A CLAIM TO GET A PAYMENT? Claims can be submitted online at www.creditcardsettlements.ca. If you do not have internet access, call the Claims Administrator at 1 (877) 283-6548.

WHAT IS THE DEADLINE TO MAKE A CLAIM?

CAN I RECEIVE MONEY?

Claims must be made no later than You are eligible to receive money if you accepted Visa September 30, 2022. or Mastercard credit cards between March 23, 2001 WHEN WILL I GET MY MONEY? and September 2, 2021. Accurate processing takes time. Depending on the HOW MUCH MONEY WILL I GET? number of claims filed, it could be up to one year The settlement funds (plus any costs awards and before you receive compensation. Please check accrued interest and less approved fees and expenses) www.creditcardsettlements.ca for regular updates. are available for distribution to eligible claimants. CAN I APPLY A SURCHARGE? Subject to further orders from the courts: In addition to money, the class actions also secured If you are a small merchant (your average yearly the ability for merchants to apply a surcharge when revenue is under $5 million), you are eligible to receive accepting credit cards. The rules affecting surcharging $30 for each year that you accepted Visa or Mastercard are set to change in October 2022. You cannot impose credit cards. Small merchants do not need to provide surcharges before October 2022. For details of how any documents proving payment of interchange fees. and when you can implement surcharges, check for If you are a medium merchant (your average yearly updates on www.creditcardsettlements.ca. revenue is $5 million to $20 million), you are eligible WHO ARE THE LAWYERS? to receive $250 for each year that you accepted Visa or Mastercard credit cards. Medium merchants must You are represented by: Camp Fiorante Matthews provide proof that they had at least one agreement Mogerman LLP (Vancouver, BC), Branch MacMaster with an acquirer (also known as a payment processor) LLP (Vancouver, BC) and Consumer Law Group since March 23, 2001. (Montréal, QC).

Questions? Visit www.creditcardsettlements.ca, Email info@CreditCardSettlements.ca or call 1 (877) 283-6548

THE BOOM AND THE CHALLENGE // COMMERCIAL LEASING

THE BOOM AND THE CHALLENGE CALGARY’S INDUSTRIAL AND OFFICE SPACE BY JOHN HARDY

here is good news, and uncertain and unpredictable news when it comes to Calgary’s battered and bruised commercial real estate market. The juxtaposed reality is that Calgary’s commercial real estate is a contentious, binary topic: office and industrial. Despite the new normals of the Calgary workplace, workfrom-home routines and options and guess-work about how much office space companies may need in the long term, industrial space is a separate and entirely positive story. According to the recent Colliers’ Industrial Market Report, Calgary is in the midst of an industrial real estate boom! “The pandemic has fuelled a rapid rise in e-commerce activity and demand for warehouse space, causing vacancy rates to tumble across the country.” The Report also points out that, in the second half of 2022, the need for industrial space continues to increase as global

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

supply chain constraints have led retailers to adopt a justin-case inventory strategy and seek out even more space to house additional products. It also explains why the situation is turning out to be a Calgary boom. While markets such as Vancouver and Toronto are experiencing a critical shortage of industrial product – with record low vacancy rates of 0.4 per cent and 0.7 per cent, respectively – Calgary presents distributors and retailers with a welcome alternative. “Calgary’s industrial vacancy rate dropped 185 basis points year-over-year, as tenants look to Calgary to support their warehouse and distribution needs.” The Report mentions positive examples of major players setting up Calgary distribution centres over the past few years, including Amazon, Lowe’s, Home Depot, Canadian Tire and Walmart, reflecting the many advantages of investing in Calgary. “The demand for warehouse space is not expected

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THE BOOM AND THE CHALLENGE // COMMERCIAL LEASING

and CEO of the Calgary Chamber of Commerce. Energy prices were less than half what they are today and companies had been focused on survival for five years. It meant laying people off, cutting back expenditures and doing whatever they could to run their companies. We also need to address the challenge of being overdeveloped and under-demolished, better understand the opportunities with aging assets and then move forward to address the issue. That won’t be an easy conversation.

“OUR CORE IS JUST THAT – THE HEART OF COMMERCE AND COMMUNITY IN OUR CITY,” YEDLIN EMPHASIZES. “WITH LESS THAN ONE PER CENT OF THE LAND, CALGARY’S DOWNTOWN GENERATES 23 PER CENT OF JOBS AND HAS 72 PER CENT OF CALGARY’S TOTAL OFFICE SPACE.” to decrease any time soon as the e-commerce, high-tech and entertainment industries continue to thrive in Calgary,” the Colliers Report says. “In addition, the massive increase in building development and strong oil prices will drive demand for manufacturing and service-oriented owner/user industrial product. These tailwinds are positioning Calgary’s industrial market for a bright future and we expect to continue to see strong market fundamentals.” The other sector of Calgary’s commercial real estate – office space – continues on a bumpier ride with uncertainties about the possible recovery options and long-term trends and scenarios. “We were already on the back foot when we came into the pandemic,” says the plugged-in Deborah Yedlin, president

“Our core is just that – the heart of commerce and community in our city,” she emphasizes. “With less than one per cent of the land, Calgary’s downtown generates 23 per cent of jobs and has 72 per cent of Calgary’s total office space. As we consider the future of downtown, we must ensure the investments we make strengthen and diversify our downtown for the benefit of all Calgarians, whether they are working or choosing to live in the core.” Although recent stats show that Calgary’s downtown office vacancy rate is 30.85 per cent, that too is misleading and tricky because, traditionally, Calgary’s downtown office space is also fragmented by AA, A, B and C. “We’re not seeing a significant difference in rates between downtown, Beltline and suburban buildings largely because Calgary has in many respects become a single office market,” explains Justin Mayerchak, senior vice president and partner with Colliers Calgary. Historically, most companies have been either a downtown, Beltline or suburban tenant. As the market has softened and all landlords fight for tenants, pricing has become more consistent across all markets when comparing assets classes. There are still considerable differences in pricing between quality and location of buildings.” There’s no doubt about. It’s much more than an excuse. While Calgary’s office space has been an unpredictable rollercoaster for more than five years, the past two years of lockdowns, layoffs and work-from-home (WFH) routines caused a blur for office space vacancy and lease rates. “There is a large discrepancy between rates within the downtown core itself,” says Aly Lalani, executive vice president with Colliers Calgary. “In some B and C class buildings the quoted rates are operating costs only if space is ABOVE: DEBORAH YEDLIN, PRESIDENT AND CEO OF CALGARY’S CHAMBER OF COMMERCE. RIGHT: JUSTIN MAYERCHAK, SENIOR VICE PRESIDENT AND PARTNER WITH COLLIERS CALGARY.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

THE BOOM AND THE CHALLENGE // COMMERCIAL LEASING

“WE’RE NOT SEEING A SIGNIFICANT DIFFERENCE IN RATES BETWEEN DOWNTOWN, BELTLINE AND SUBURBAN BUILDINGS LARGELY BECAUSE CALGARY HAS IN MANY RESPECTS BECOME A SINGLE OFFICE MARKET,” EXPLAINS MAYERCHAK. taken on an as-is, where-is basis. While there is still demand in the B and C markets, every downturn in the downtown office market we witness a flight to quality by some tenants.” For many companies, the unpredictability of long-term work trends and space needs is a key factor. “Many clients of ours have added people through the pandemic,” he notes, “but are not taking additional space proportionate to their growth. What we are seeing is that many companies are looking at it and saying, ‘if we’re going to bring people back, then the workplace needs to offer something WFH can’t.” 22_1405_Business_in_CGY_JUL_CN Mod: May 18, 2022 4:35 PM Print: 05/31/22 page 1 v2.5

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Justin Mayerchak mentions other Calgary office space strategies. “A few projects have a clustering affect on the market. Technology and creative companies are locating in close proximity to one another, if not in the same development. Spear Street’s The District is a great example of this. We expect vacancy in all markets to continue to compress with AA and A buildings leading the way as companies make a conscious effort to provide their workforce a better option than working from home. Many companies we hear from believe that there is still very much a need for an office, to create collision and innovation amongst the team.” A creative transformation is also happening. “The municipal government is following through on Calgary’s Greater Downtown Plan by partially subsidizing conversions of under-utilized office buildings to residential developments,” Lalani notes with enthusiasm. “So far this year, five downtown buildings, namely Sierra Place, Lavalin Centre, Canadian Centre, a portion of One Palliser and The HAT (former Teck Place) are set for conversion. These three conversions alone have reduced downtown office inventory by nearly 700,000 square feet and we anticipate more approved conversion projects to be announced throughout 2022, totaling an additional 600,000 square feet.

ABOVE: ALY LALANI, EXECUTIVE VICE PRESIDENT WITH COLLIERS CALGARY.

THE BOOM AND THE CHALLENGE // COMMERCIAL LEASING

THE MUNICIPAL GOVERNMENT IS FOLLOWING THROUGH ON CALGARY’S GREATER DOWNTOWN PLAN BY PARTIALLY SUBSIDIZING CONVERSIONS OF UNDER-UTILIZED OFFICE BUILDINGS TO RESIDENTIAL DEVELOPMENTS,” NOTES LALANI. “The purpose of these residential conversions is to not only reduce vacancy but also transform Calgary’s downtown core into a neighborhood with a more balanced mix of residential and office buildings along with complementary retail, culture and entertainment components.” “The work-from-home was a trend-turned-imperative and it’s here to stay,” Yedlin points out. “We had long been hearing about the need for flexible working hours from families – but it took a pandemic to make it a reality. What we have to acknowledge – and facilitate – is what downtown looks like for workers and professionals in various stages of their careers. At the same time,

companies are aware of the importance of developing and reinforcing a corporate culture – which happens primarily in-person, not virtually. “Vacancy was an existing challenge amplified by the pandemic,” Yedlin says. “But it also offers interesting opportunities for innovation, creativity and new investment. We’ve got space to work with, some potential for exciting development incentives, and many lessons learned to ensure we won’t repeat past mistakes. Our commercial real estate is undergoing its own period of innovation as they consider alternatives like conversions, renovation and repositioning portfolios to attract new businesses.”

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TURNING A NEW LEAF // MEDICAL CANNABIS

Turning A NEW LEAF

MEDICAL CANNABIS INDUSTRY FINDS ITS FOOTING AMID CHANGING REGULATIONS BY JAMIE ZACHARY

ore than two decades after first being legalized, Canadians are continuing to come around when it comes to using cannabis for medical purposes, say industry experts.

Since then, the industry has boomed, with the number of medical marijuana clients registered in Canada hitting a peak of 377,024 in 2020 before easing slightly to 264,686 in late 2021, according to Health Canada.

And many believe regulatory relaxation around cannabis use in recent years will only further open minds to what they say are countless benefits the drug can offer, especially on the heels of a stress-ridden pandemic.

“Since around 2016/17, especially, you’ve really seen a number of medical cannabis shops set up around cities like Calgary,” says Christine Barry, a Calgary-based business development expert in medical cannabis, pharmaceutical and nature health.

“There are so many applications. I’ve personally talked with thousands of patients who have come back with success stories, whether for anxiety or sleep or pain,” says Hart Steinfeld, a Calgary-based cannabis education and training specialist. “Honestly, pick your ailment and there’s probably some cannabinoid therapy that will help you.” The medical cannabis industry in Canada traces back to 1999 when two patients were first provided legal access to dried marijuana for medical purposes. This was followed up two years later when Health Canada regulated access to cannabis for licensed patients suffering from HIV/AIDS and other illnesses.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

To access cannabis for medical purposes, a person must obtain a medical document by a healthcare professional. Federal regulations then dictate that person either register with a licensed producer to legally order cannabis – licensed producers are companies authorized by the government to grow, harvest, process and sell medical cannabis – or grow a limited amount for their own medical purposes. A person can also designate someone else to produce it for them. Cannabis specialists such as Steinfeld point to a growing list of medical conditions that may benefit from cannabis, from Crohn’s to chronic pain, migraines to MS and sleep disorders to stress.

TURNING A NEW LEAF // MEDICAL CANNABIS

RESEARCH ORIGINATING OUT OF CALGARY IS PROVIDING ADDITIONAL INSIGHTS INTO THE IMPACT OF CANNABIS IN TREATING VARIOUS CONDITIONS SUCH AS PTSD, AS WELL AS ITS OVERALL ROLE IN GUT HEALTH. In fact, many industry professionals report they are seeing more patients are coming into their clinics these days interested in using cannabis to treat severe anxiety or depression as a result of the pandemic. Karen McDermott, operations lead and clinic manager for Revolution Medical Cannabis – which operates clinics throughout Alberta, including Calgary, High River and Edmonton – notes people she’s talked with are stressed because of everything from job insecurity and financial concerns to the fear of getting COVID. “Anxiety levels since COVID-19 have just skyrocketed, and we’re still seeing the outfall of that. People are still struggling, whether that’s massive depression or panic attacks,” says McDermott. “When people present with issues like anxiety or depression, CBD can be hugely helpful in helping them deal with things.” And that includes children. “We’re seeing more and more pediatric patients who, between school and COVID and everything that’s been going on, have high anxiety,” says McDermott. “Or their parents are looking to alternative treatments to conditions such as ADHD.” Research originating out of Calgary is providing additional insights into the impact of cannabis in treating various conditions such as PTSD, as well as its overall role in gut health. Dr. Matthew Hill, PhD, is a professor at the University of Calgary’s Hotchkiss Brain Institute (HBI) at the Cumming School of Medicine (CSM) who is leading research into how the body’s natural endocannabinoid system deals with and recovers from stress. He notes that in cases such as PTSD, the brain may not make enough endocannabinoids to calm itself after traumatic events. Hill also points to the impact of long-term stress, which damages the endocannabinoid system, potentially leaving people at high risk for depression and anxiety disorders. “There’s a lot of data that, for some people, cannabis can somewhat mitigate aspects of stress and anxiety that the body cannot naturally handle,” he says, pointing to some successes seen in veteran populations. “But it gets more complicated than that because we also know that cannabis can be a double-edged sword … and lead to over-dependency or compromise the body’s natural endocannabinoid systems if used excessively.”

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

TURNING A NEW LEAF // MEDICAL CANNABIS

Meanwhile, Dr. Keith Sharkey, PhD, a professor in the Department of Physiology and Pharmacology and member of both the Snyder Institute for Chronic Diseases and the HBI at the CSM, is leading research into how the gut communicates with the brain to regulate things such as digestion. Part of that research involves understanding the endocannabinoid system. Looking for a one-of-a-kind venue to host a corporate meeting?

Sharkey theorizes that, based on studies performed with mice, cannabis has the potential to regulate gut bacteria and even improve metabolism. “We’ve discovered that the endocannabinoid system regulates the motility of food through the gut, and you can manipulate it to make go faster or slower,” he says, noting cannabis can also help reduce gut inflammation and minimize the symptoms associated with inflammatory bowel diseases such as Crohn’s disease. While Canada legalized cannabis for recreational use in 2018, industry players say medical cannabis still has a very real role to play moving forward – namely, that the drug is being used correctly. “99.9 per cent of patients we see who have previously tried cannabis on their own are not taking it right,” says McDermott, noting cannabis retailers are not legally permitted to provide medical advice to customers. “You need to take it in a certain way for it to work. And when they do that, they see significant results.”

Among other things, Barry notes a medical doctor can help determine if it’s the right product for the condition being treated, if the dosage is correct – typically starting around two grams per day – and whether it needs to be adjusted over time or how to best balance it with existing medication. “Some patients will need it to sleep, which might mean a balance of both THC and CBD. Others will need to deal with anxiety, but still need to be able to operate equipment during the day, so it will be CBD-based,” she says. “Some might want it as an oil that they can add to the shake in the morning. Some might want to smoke a dry flower. Some might want it as a topical that can be applied before going to bed. It’s about helping them find the right product, with the right balance and at right dosage for the right patient.”

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Before using cannabis for medical purposes, Barry suggests checking with your company’s drug and alcohol policies to verify the rules about cannabis use. Additionally, third-party benefit providers might even provide coverage. Sun Life, for example, has offered medical cannabis coverage through its group benefits plans since 2018. McDermott says there’s still some work to do to fully demystify the age-old misconception regarding cannabis use – the lazy stoner stereotype. Over the past several years, however, she’s encouraged by the different types of patients she’s now seeing come through her clinic.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

BEFORE USING CANNABIS FOR MEDICAL PURPOSES, BARRY SUGGESTS CHECKING WITH YOUR COMPANY’S DRUG AND ALCOHOL POLICIES TO VERIFY THE RULES ABOUT CANNABIS USE. “We’ve seen a major shift in our patient demographic within the past three years. About 60 to 70 per cent are now over 50 years old – and a large number of those are over 70,” she says. “We’re getting more people coming to us for nerve pain, degenerative diseases or because the side-effects of their traditional medication are too harsh. Adds Steinfeld: “There’s still a lot of stigma around cannabis, but we’ve come a long way. And the good news is there are a lot of great educational resources around Calgary for those who are curious about cannabis.”

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BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

TEN YEARS OF THE SHAW CHARITY CLASSIC // COVER

TEN YEARS

OF THE SHAW CHARITY CLASSIC JIM RIDDELL AND BRAD SHAW REFLECT ON THE GOLF TOURNAMENT’S ENORMOUS IMPACT IN CALGARY AND BEYOND

BY MELANIE DARBYSHIRE

here are many reasons why Calgary is on the international map. World-class events, unparalleled access to sports and recreation, an entrepreneurial and charitable spirit, the abundance of natural resources; much attracts folks to visit and often remain in this city. It’s a place to raise a family, build a business and have a good time. It has great energy. The Shaw Charity Classic presented by Suncor embodies all that is great about Calgary – and then some. In its 10th year, the annual golf tournament – the only Canadian stop on the PGA TOUR Champions – not only showcases Alberta’s largest city to the rest of the world, it also brings out the community’s incredible spirit of giving. The three-round, 54-hole stroke-play tournament, which takes place at Canyon Meadows Golf and Country Club August 3 to 7 (the traditional late summer date was moved up to mid-summer this year), features some of the world’s greatest names in golf. An estimated 40,000 fans will watch players, including Calgary’s own Stephen Ames, compete for $2.35 million in prizes.

And while the tournament is both a showcase of the city and a premiere event accessible to all, it is its charitable impact that is most notable. Since its inception, the tournament has raised over $76 million for over 233 Alberta children and youth charities. “It’s grown into something so much bigger than what any of us had ever imagined,” marvels Brad Shaw, executive chair and CEO, Shaw Communications. “Even with all the bumps in the road we’ve had over the last few years, we’ve managed to raise an incredible amount. The impact is undeniable.” Originally conceptualized by the late Clay Riddell after he was approached by Ames, the initial hope was to cover the considerable tournament costs (including television broadcast on the Golf Channel) with the hope to have something left over for charity. Riddell called upon the philanthropic Patron Group – Allan Markin, Jim Riddell, Keith MacPhail, Guy Turcotte, Gary Peddle, Mike Culbert and Ames – as well as the Shaw family, to become involved. “My dad started to formulate a vision of what it could look like, and called around and got a few of the other Patrons RIGHT: JIM RIDDELL AND BRAD SHAW. PHOTO SOURCE: EWAN PHOTO VIDEO

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

TEN YEARS OF THE SHAW CHARITY CLASSIC // COVER

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

TEN YEARS OF THE SHAW CHARITY CLASSIC // COVER

involved,” explains tournament chairman Jim Riddell. “The initial plan was to backstop the tournament – find some sponsors to support and pay for it. And hopefully generate more than we have in costs to allocate those charitable dollars to kids’ charities. That was exactly what transpired.” Riddell Sr. approached his friend the late JR Shaw and asked if he would join the small group of like-minded business leaders. “It just rang such a big bell for us, because giving back to the community has always been one of the core values for our family and our company,” recalls Shaw of his father’s initial enthusiasm. “So JR got very excited about it and wanted to make sure it was a success.” “I don’t think we could have ever asked for a better partner than Shaw as title sponsor,” Riddell reflects. “Not only do they support it financially, but they’ve always thrown their whole organization behind it. They’ve done a lot of additional promotion to raise the visibility of the tournament. They also personally put in charitable dollars.” The Riddell Family Charitable Foundation too contributes one million dollars per year to make it a success. To Shaw, whose company announced a $1 million donation in May to kick off the tenth anniversary, the sponsorship has been worth it in spades. “We felt that the platform was something that could be very strong, and we’re always looking to have an impact, especially across Alberta,” he says. “The impact is undeniable in Calgary. This is our hometown, our home base, and we wanted to really lean into and make a world class event here. And I think if you ask anyone that’s been around it, whether sponsors, attendees or players, they’ll say it’s an all-star event.” The inaugural tournament in 2013 raised $2,276,251 for six youth-based charities. Each successive year, both the amount donated and the number of recipient charities has increased. Even in 2020, when the tournament was cancelled due to the pandemic, a whopping $12,572,483 was raised for more than 200 youth-based charities across Alberta. “It’s easy to put our name on as a sponsor, but it takes the community, the giving, the charities, the commitment to the process and the platform, to come together in such a beautiful way,” Shaw notes with pride. “It just goes to show you what a great community Calgary is.” TOP: CHIP IN FOR KIDS, ONE OF THE SHAW CHARITY CLASSICS CHARITABLE PLATFORMS. MIDDLE: DOUG BARRON, 2021 SHAW CHARITY CLASSIC CHAMPION. BOTTOM: JUNIOR GOLF FAN, ALL SMILES WITH HIS AUTOGRAPHED GOLF BALL. PHOTO SOURCE: TODD KOROL

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

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TEN YEARS OF THE SHAW CHARITY CLASSIC // COVER

“The choice of youth charities was easy, because we knew people would want to get behind them,” Riddell explains. “It’s anywhere from KidSport, to Ronald McDonald House, the Alberta Children’s Hospital Foundation and Big Brothers Big Sisters, to name just a few. There are so many now.” “I always look at the numbers,” Shaw continues. “It’s the 14,000 elementary students provided with bully prevention lessons and life skills. Or the 5,000 children with disabilities that we provide social recreational, self-expression and development programs to. Those are just little tidbits, but you look at it all and it becomes overwhelming.” In addition to the Shaw family and its company, the Riddell family and the Patron Group, many other donors – large and small – have stepped up over the years. For the past two years Suncor has been a presenting sponsor, the tournament’s main charitable platform, Shaw Birdies for Kids, is presented by AltaLink, and RBC sponsors the Pro-Am events on the Wednesday and Thursday of tournament week.

Tournament week activities kick off with Blakes Women’s Day on August 1, where LPGA Tour player and winner Michelle Wie West will guest star at the networking event for 104 women business and community leaders. TOP: GALLERY OF FANS AT THE 18TH GREEN. BOTTOM: VIJAY SINGH, WORLD GOLF HALL OF FAMER TEEING OFF ON THE 1ST HOLE. PHOTO SOURCE: TODD KOROL

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

TEN YEARS OF THE SHAW CHARITY CLASSIC // COVER

Juniors 12 and under are free when accompanied by a ticketed adult. “We try to make it as accessible and easy as possible for people to get there and enjoy the experience,” Riddell explains. “It was very important to my dad that it’s on everybody’s calendar every year, as an event the city could look forward to.” “We expect the crowds to come out,” Shaw continues. “Not only golf enthusiasts, but the whole family. The entertainment of it, for the players, is great. They don’t get this in many tournaments where the crowds are five to 10 people deep. When they’re coming down the 18th hole with huge crowds going along with the players, it’s exciting for them.” Riddell concurs: “Having spectators there is what excites the players. It really does create a great experience.” Indeed, the tournament is one of the best in its class, evidenced by the fact it has won the President’s Award three times (2014, 2015 and 2017) as the top event on the PGA Tour Champions. The Shaw family’s commitment to the tournament continues beyond Rogers Communications’ proposed acquisition of Shaw Communications. “One of the key parts of the transaction was to ensure that the Shaw Charity Classic did stay alive,” Shaw explains. “Because Rogers was fully committed to Calgary, we extended commitment to the event for up to 10 years.”

“It’s been great to see AltaLink, Suncor, Blakes and all the other sponsors continue to show up and be a part of it,” Shaw says. “And a credit to the Shaw Charity Classic management team that is out there every day working on the smaller sponsors and making sure we’re doing a good job for everyone overall. But it’s kind of sold itself and I think just a credit to the program that it is.” In a bid to bring out as many spectators as possible and in homage to the 10-year anniversary, $10 single-day general admission tickets are available for purchase until July 31.

He adds that the Shaw Family Foundation will continue to step up in support of the tournament: “Calgary is my hometown, it’s where I walk down the street, it’s where my kids do too. And we want to make sure no matter what, with Shaw Communications or not, we continue to hold our heads up high, support Calgary and put it on the international map.” Riddell believes his dad would continue to be very proud of what he started: “He never dreamed it would be as successful as it had been in the first few years. I think he’d be super proud of what he’s done, what the whole Shaw team and Patron Group have done. The tournament gets better every year.” For more information on the Shaw Charity Classic presented by Suncor or to purchase tickets go to shawcharityclassic.com.

TOP: PATRON GROUP AND BRAD SHAW WITH 2019 CHAMPION – WES SHORT JR. BOTTOM: PATRON GROUP AND BRAD SHAW WITH 2021 CHAMPION – DOUG BARRON. PHOTO SOURCE: TODD KOROL

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

SKY’S THE LIMIT // MANUFACTURING

SKY’S

THE LIMIT GROWING NORTH AMERICAN AEROSPACE INDUSTRY BIG BUSINESS FOR CALGARY MANUFACTURERS

BY NATALIE NOBLE

he horizon for Calgary’s manufacturing industry points onwards and upwards, especially for those seizing aerospace opportunities. Global corporations such as Japan’s Hibiki-Seiki and De Havilland Aircraft of Canada are recognizing the city as an ideal home base while creating strategic partnerships that diversify Alberta’s economy, create more skilled jobs and alleviate supply chain issues. One year after entering partnership discussions, familyrun Optima Manufacturing (Optima) announced their new partnership with Hibiki-Seiki in March. The joint venture brings a potential $5 million in new business as they manufacture and supply high-precision machining and components to North America’s aerospace industry. The successful launch shows growth potential in further investment as well as creating 10 new skilled job positions this year and up to 50 more over the next five years. It’s an exciting development for Optima, launched in 1990 as an evolution of the Hertzer family’s precision machining roots established in Calgary in 1967 as Century Machine. “My father was already a skilled tradesman and machinist in Germany before he came to Canada in 1962,” says Duane Hertzer, president with Optima Manufacturing. “He met my mother here in Calgary and they started the precision machining company together, later adding a product line of instrumentation valves which still exists today.” In 1988, the Hertzers sold the two companies, contemplating their next steps. “We took our background of the knowledge and great network we’d established in Calgary

to create Optima as a small team of five in those early days,” says Hertzer. Since then, they’ve specialized in machining, assembly and kitting precision services for original equipment manufacturers (OEM) around the world. Today, approximately 97 per cent of Optima’s sales sit within the international market space. “We grew into one of western Canada’s most diversified precision machining facilities, now serving our global customer base,” says Hertzer. “Our current market portfolio includes energy, transportation, aerospace and process control.” That diversification is key here in Alberta where it’s no surprise energy clients have been foundational to the company’s success. However, “it’s always been our goal to expand into other markets beyond that energy-based sector,” says Hertzer. “Leveraging what we’ve done with some of our larger international clients, including the infrastructure, quality and the processes we’ve developed, lend very well to the aerospace market we’ve moved into [and actively pursued] over the past five years. That’s how we came about meeting with Hibiki-Seiki.” In 2018, Hertzer was honoured to be included with nine other companies sponsored by the Alberta Government to attend the International Air and Space Fair in Santiago, Chile. “We made some key contacts down there, both TOP: OPTIMA MANUFACTURING CARRIES ON THE HERTZER FAMILY’S PRECISION MACHINING LEGACY LAUNCHED IN CALGARY IN 1967 AS CENTURY MACHINE. PHOTO SOURCE: OPTIMA MANUFACTURING

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PHOTO SOURCE: DE HAVILLAND AIRCRAFT OF CANADA LIMITED

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

industry wise and in terms of building relationships with the Invest Alberta team members who organized the show,” he says. Among those connections was Invest Alberta advisor Michael Couch. He connected Hertzer with the Japan External Trade Organization (JETRO) and client Hibiki-Seiki as they sought a smallto-medium sized North American precision component manufacturer aligned with their vision. “We began discussions to see if we could be that partner and portal Hibiki-Seiki was looking for to break into the North American market,” says Hertzer. Since March 2021, Invest Alberta has worked with Hibiki-Seiki to land the strategic partnership. That includes identifying and providing introductions to multiple Alberta prospects, supporting negotiations, overseeing detailed information exchange, framing out terms and closing the deal, says Invest Alberta CEO Rick Christiaanse. “Partnerships with companies in Asia not only help bring new expertise and jobs to Alberta, they also benefit many industries on a global scale by alleviating current supply chain issues,” says Christiaanse. “[This partnership] is an opportunity to introduce high-end Japanese technologies to Alberta, while helping the province expand its aerospace sector. Alberta’s central location, transportation links and young, diverse workforce also make the

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SKY’S THE LIMIT // MANUFACTURING

estimate that once fully up and running and in production in Calgary, we will see our current workforce increase by up to 1,000 new employees in all corporate disciplines.” It’s a development built upon the company’s nearly 95-year track record of building rugged, reliable and long-lasting aircraft in Canada, starting in 1928 at Toronto’s Downsview Airport. Since producing over 5,000 airplanes, the company has helped connect communities, support the WWII Allied effort and continues to protect people around the world. province a destination of choice for companies looking to manufacture here and expand into North America. ” It’s a big win for the Hertzers who have come a long way since 1967 through consistent quality work and fostering strong relationships in Alberta and beyond. “We’re excited and having fun as a Calgary-based manufacturer working to make international waves and news,” says Hertzer.

Earlier this year, the organization amalgamated companies such as the Canadair water bomber program and aircraft produced by Ireland’s Shorts Brothers. They also united a number of companies including Viking Air, Longview Aviation and De Havilland Canada into one company. “This will be truly transformational for us,” says Chafe. “We will be able to harness the skills and talents of our employees to provide better customer service and meet the needs of our customers than if we were separate companies.”

They’re also working to attract more young talent and new Canadians into the industry. “The realm of machining, programming and quality assurance is really expanding in Calgary,” says Hertzer. “We continue to work with our education system including SAIT and their trades programs and we always have a couple of people working with us as they work towards their trade certification.”

New Calgary facilities setting up will produce the DHC-515 Firefighter, the latest in the series of Canadian-made water bombers used around the world for 50 years. “Countries and operators around the world have told us that due to the combination of an aging fleet and the impacts of climate change, this aircraft is needed now more than ever,” says Chafe.

The Hertzers are proud to help drive the industry into the future for the city that’s been their home for six decades. “We believe Albertans have a Prairie mentality. We’re resilient, innovative and hardworking, with a can-do attitude,” says Hertzer. “There’s a strong sense of entrepreneurship here with a sense of individualism that makes us unique in the world. It gives us a great platform to compete on the global scale.”

Also assembled in Calgary and delivered globally are De Havilland’s DHC-6, or Twin Otters. “From the Canadian Arctic to the South Pole, to the African desert to oceanic locations around the globe, Twin Otter aircraft are linking communities and bringing people together,” says Chafe. “The Twin Otter is also a missionized aircraft and is used by civil protection authorities for search and rescue purposes as well as firefighting missions.”

Also big news for Calgary’s manufacturing industry in 2022 is newly refreshed De Havilland Aircraft of Canada (De Havilland) moving their corporate head office to the city from Toronto to focus on engineering, sales and marketing. “For Calgary, a new head office will mean opportunities across the company,” says Brian Chafe, De Havilland president and CEO, pointing out new positions stretch across skilled labour jobs, project managers, finance, legal and human resources specialists, and everything in between. “We

Operating out of Calgary for several years now, De Havilland is familiar with the city’s business appeal, including its affordability and talent pool for highly skilled workers. “The graduates produced at SAIT, the University of Calgary and Mount Royal University are all some of the best young people in the country,” says Chafe. “We will be working with all of these institutions to ensure we have the right programs in place for them to have long lasting and interesting careers at De Havilland Canada.” ABOVE: OPTIMA MANUFACTURING’S PARTNERSHIP WITH JAPANESE COMPANY HIBIKI-SEIKI BRINGS MORE OPPORTUNITIES TO SKILLED WORKERS IN THE CALGARY REGION. PHOTO SOURCE: OPTIMA MANUFACTURING

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

Volunteering should be part of your post-pandemic plan By Melissa From, President and CEO, JA Southern Alberta

The sentiment that volunteering is empathy in action, affirms the strong connection between volunteerism and empathy. This profoundly human connection is at the heart of healthier individuals and stronger communities. As we come out of two years of global economic and health uncertainty, we could all use a little empathy. I think that we could all use some of the benefits that come from volunteering too. We notice a subtle shift in ourselves when we volunteer. We feel more connected to others, and we become less absorbed in the normal stresses of daily life. We share our experiences with others and want to help more. As COVID-19 restrictions ease and physical gatherings return, volunteering is a great way to revitalize those aspects of life that have been lacking throughout the pandemic: meeting new people, physical activity, and engaging with the local community. There are many great benefits to volunteering, here are just a few: Build Community According to Volunteer Canada, you strengthen your community and your social network when you volunteer. You make connections with the people you are helping, and you cultivate friendships with other volunteers. End Loneliness Socially, the benefits of volunteering show up quickly and have long-term effects. Social interaction improves mental and physical health, according to Psychology Today. The benefits of consistent socializing include better brain function and a lower risk for depression and anxiety. You also improve your immune system. Build Bonds, Create Friendships Volunteering creates stronger bonds between friends, family, and coworkers. People build closer relationships, better connections, and more powerful attachments to people when they work together. If you feel the need for deeper connections with other people, try volunteering. You might live longer and be happier.

Develop Emotional Stability Depression, Post-Traumatic Stress Disorder, low selfesteem, and even Obsessive Compulsive Disorder have all been helped by volunteering. When people with OCD, PTSD, or anger management issues volunteer, they feel more connected to others. They have an increased sense of purpose. Connection and meaning translate to decreased symptoms and improved social function. Improve Self-Esteem When teens or young adults volunteer, they develop self-esteem, confidence, and feelings of self-worth. Imagine the benefits of volunteering today, where both girls and boys struggle with self-esteem issues. Consider the advantages of volunteering for teens and young adults with eating disorders, social anxiety, and depression. Volunteering could be lifechanging (and life-saving). Build Professional Skills and Networks Volunteering can help to broaden your personal network and develop new skills and it offers opportunities to practice skills in a relatively risk-free environment. It is much more effective to practice a skill than to read about it or study it in a classroom. Volunteering is an excellent place to experiment, practice and try out new techniques and skills. It offers you the opportunity to build your selfconfidence through practice. Additionally, volunteering provides you opportunities to observe others and select best practices. Volunteering, putting empathy into action, will help your own mental and physical well-being. When people feel happier, healthier, and more welcome, they create stronger, more connected communities. To find out more information on how to volunteer with JA Southern Alberta, go to jasab.ca.

THE HOT MARKET COOLS (A BIT) // REAL ESTATE

THE HOT MARKET COOLS (A BIT) SELLER’S, BUYER’S OR BALANCED MARKET? BY JOHN HARDY

or more than a year, despite the fallout from lockdowns and workplace unpredictability, Calgary sellers basked in wild home prices, a lack of inventory and listings supply falling way short of buyer demand. Calgary buyers cringed about wild home prices, having to strategize and maneuver around discouraging multiple offers, often ridiculously above listing price. While Calgary buyers and sellers credit and blame the obvious – spiking mortgage rates and high prices – Calgary realtors suggest a different cause and effect. “The most significant factor to help the market cool off, meaning slow the pace down, is the supply of homes,” says Jared Chamberlain, broker/owner of the Chamberlain Real Estate Group. “The inventory is really low for the current rate of demand. If many homes came into the market that were quality properties, then we could start to see things slowing in terms of the urgency in the market and moving to a balanced market. Prices, on the other hand, probably wouldn’t decrease. Interest rates and other external factors won’t cool down the market because we only have a supply shortage issue, nothing else. We are still seeing the market in full swing, with less urgency. The Calgary market hasn’t seen

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

interest from other provinces like this before, where people are changing their whole life and where they live to find more affordability,” he notes. The Canadian Real Estate Association (CREA) points out that Calgary is a reflection of a nation-wide trend. ”Following a record-breaking couple of years, housing markets in many parts of Canada have cooled off pretty sharply over the last two months, in line with a jump in interest rates and buyer fatigue,” the CREA says. “Home prices across Canada appear to be slipping under the weight of rising interest rates, with the nationwide average home price falling to $746,000.” CREA’s benchmark home price index – a metric designed to create an “apples-to-apples” comparison of typical home sales over time – also posted a decline of 0.6 per cent monthover-month, the first such decline since April 2020. According to the recent Royal LePage (RLP) House Price Survey, the aggregate price of a home in Canada increased 25.1 per cent year-over-year to $856,900 in the first quarter of 2022 – `the highest gain on record since the Company began tracking aggregate prices. As strong buyer demand continues to outpace supply in almost every

THE HOT MARKET COOLS (A BIT) // REAL ESTATE

“WE ARE DEFINITELY MOVING TOWARDS MORE OF A BALANCED MARKET,” SAYS LYALL. “COVID IS EITHER OVER OR NEARING THE END OF ITS SERIOUS IMPACT, AND THE URGENCY TO MOVE FOR FACTORS SUCH AS DISTANCE OR WORKING TO MOVE FOR FACTORS SUCH AS DISTANCE OR WORKING FROM HOME HAVE DIMINISHED.” as distance or working to move for factors such as distance or working from home have diminished.”

market from coast to coast, RLP is forecasting continued strong seller’s market conditions. “Call it buyer fatigue or easing demand,” the RLP survey says, “these periods of uncomfortably high home price appreciation do run their course. We are seeing the first signs of moderation in some regions, as more inventory is becoming available and competition eases slightly.” The aggregate price of a home in Calgary increased 13.3 per cent year-over-year to $612,000 in the first quarter of 2022 – the highest gain on record since the Company began tracking aggregate prices. RLP is forecasting that the aggregate price of a home in Calgary will increase 8.0 per cent in the fourth quarter of 2022, compared to the same quarter last year. Most Calgary realtors are doing their best to manage the momentum and impact of the Calgary market. “We are definitely moving towards more of a balanced market,” says the knowledgeable and respected Corinne Lyall, owner/broker of Calgary’s Royal LePage Benchmark. “The rising interest rates combined with the price increases in the last year, some buyers have either chosen to drop out of the market or have been priced out. COVID is either over or nearing the end of its serious impact, and the urgency to move for factors such

As Calgary changes in terms of real estate listings and sales, Lyall points out that, in many ways, Calgary’s dynamics are also transitioning. “I’m not sure that the energy market has the same impact on our real estate market that it used to. Of course, the increased oil prices certainly impact and help stabilize our economy, but the people that are moving here from other provinces are generally employed in other industries. There has been a rising need for employees in the technology, aerospace, manufacturing/supply chain, healthcare and hospitality.” As the Calgary market abates the flux and nudges toward a balanced market, real estate professionals caution about continued speedbumps ahead. CREB chief economist, AnnMarie Lurie predicts that:“Mortgage rates are expected to continue to rise this year. Many lenders have already been increasing their rates ahead of moves from the Bank of Canada. And the federal budget has outlined a number of initiatives including supporting supply growth.” With Calgary expertise, Chamberlain offers caution. “Mortgage rates are increasing. We have been spoiled for the past couple of years with never-heard-of-before low rates. We are starting to see four-plus per cent rates for five-year fixed products. By the end of the year, we could see this increase another point or so. But rising interest rates will not significantly impact Calgary’s market this coming year.”

ABOVE: CORINNE LYALL, OWNER/BROKER OF CALGARY’S ROYAL LEPAGE BENCHMARK.

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

The Calgary Chamber exists to help businesses thrive. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification, and opportunity. As an independent, non-profit, non-partisan organization, we build on our 131year history to serve and advocate for businesses of all sizes, in all sectors and across the city.

Alberta’s Hydrogen Potential

here is no place better suited for a hydrogen economy than Canada. We have the reserves and preliminary infrastructure in place. We are strategically located for export markets. We have a strong environmental track record and exemplary human rights standards. We have the ingenuity and talent to be a global leader for decades to come. But we need to get moving, and fast. The enthusiasm around hydrogen is reverberating across the province and country, with momentum building among private sector investment and two key strategies launched: Hydrogen Strategy for Canada and the Alberta Hydrogen Roadmap. But what’s behind all the excitement? In short, Alberta’s geology, energy expertise and favourable regulatory environment presents a multi-billion-dollar opportunity for hydrogen to lower greenhouse gas emissions across the economy, while ensuring Alberta remains an energy powerhouse.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

HYDROGEN 101 Hydrogen can be produced using several methods – the most common being electrolysis and natural gas reforming. In Alberta, the abundance of natural gas, combined with the potential for Carbon Capture and

Storage (CCS), makes natural gas reforming an easy fit within our existing energy systems. Put simply, natural gas reforming entails applying high-temperature steam, combined with a catalyst, such as nickel, to natural gas. The result? Carbon monoxide, small amounts of carbon dioxide and hydrogen. Natural gas reforming is particularly viable in Alberta, given the existing natural has pipeline infrastructure. Paired with CCS – the process of capturing, transporting and injecting carbon dioxide into a secure underground geological formation – natural gas reforming creates a versatile low-emissions energy carrier. Hydrogen can then be used in fuel cells to generate electricity, power and heat – and has countless industrial applications to lower emissions. It offers the ability to fuel transportation and power generation systems, heat industrial and residential buildings, and can be used as feedstock for heavy industry such as steel and cement making, ultimately displacing higher emitting fuels like diesel and natural gas. THE OPPORTUNITY Hydrogen presents a unique opportunity for Alberta’s energy economy as it promotes decarbonatization across a variety of industries – not just the energy sector. The broad applicability of hydrogen creates the potential to abate up to 190 megatons of carbon dioxide equivalent (Mt CO2e) annually by 2050 across sectors, while adding 350,000 jobs and generating over $50 billion in GDP for Canada. For context, Canada’s total national greenhouse gas emissions in 2019 were 730 Mt CO2e, meaning hydrogen alone has the potential to reduce emissions by 26 per cent, helping us achieve our 2030 emissions reduction targets in the near-term. Organizations across industries are involved – transportation, construction, manufacturing, aviation – working collaboratively to lower their carbon footprint across the value chain and actively assessing opportunities ahead.

ATCO detailed its hydrogen blending distribution system, which reduces the carbon intensity of home heating, and showcases the technology as not just an alternative of the future, but as a technology that’s available now. Together, these and other emerging projects demonstrate industry commitment and set us on a strong path to decarbonize safely, economically and rapidly. The need for alternative fuels has become even more imperative given Russia’s invasion of Ukraine and Europe now fervently searching for new sources of reliable, secure and responsibly produced energy. Some argue Canada not only has the ability to provide this energy, but also the moral obligation to do so. CHALLENGES AHEAD The Hydrogen Strategy for Canada and the Alberta Hydrogen Roadmap have created a strong foundation upon which to build. The federal government’s 30 per cent investment tax credit and the provincial government’s commitment of $50 million for a Hydrogen Centre of Excellence further showcase a desire to generate development. While these investments are critical, several challenges remain: • A shortage of domestic demand for hydrogen usage across sectors.

The Calgary Airport – Banff Rail project plans to use hydrogen to fuel its locomotives, helping Banff to reach its goal of Net-Zero by 2035.

• Limited availability of export infrastructure to international markets.

TC Energy and Nikola Motors announced a new Hydrogen Production Hub north of Calgary, where hydrogen-fueled trucks will become part of the daily transport mix, navigating goods across North America with zero emissions.

• Labour, talent and skill shortages.

• Uncertainty around existing and future government policy and regulations. • A substantial price differential between hydrogen and higher-emitting fuel sources.

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

To mitigate these challenges, Canada must act now, or risk being left behind. Countries including Japan, France, Norway, Austria and UAE are racing to develop their hydrogen economies to be ‘the’ global leader in this rapidly emerging industry. WHAT’S NEXT? The quote “if we build it, they will come” references the need to encourage increased domestic demand to promote scalability. So, we need to get building. We must stop talking about hydrogen and its potential and start putting plans into action. To do so, we need the private sector and all levels of government – across the country – to work together to incent demand, both domestically and internationally, to advance projects forward, which must involve: • Working with the private sector to create clarity and policy certainty related to hydrogen, including Clean Fuel Regulations, carbon pricing, GHG Offset Systems, medium- and heavy-duty regulations, and other components outlined in the 2030 Emissions Reduction Plan.

• Stimulating demand through stackable investment tax credits at provincial and federal levels. • Promoting collaboration along the value chain by incenting industry to work together to share technologies that encourage hydrogen adoption. • Incenting the immediate construction of largescale CCS projects. • Implementing cross-border offset certifications and credits. • Investing in talent attraction and re-skilling in the hydrogen space at post-secondaries. Thoughtful policy, coupled with the right incentives, will accelerate hydrogen production and consumption, and help realize the potential for Alberta’s hydrogen economy. While these recommendations will require careful attention as governments continue to pursue their ambitious climate goals, they are necessary to ensure hydrogen is part of Canada’s energy future and helps us rise to the challenge of our ambitious net-zero goals while establishing strong foundations for a prosperous and sustainable energy economy for decades to come.

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JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

Photo by Riverwood Photography

by Rennay Craats

fter offering 50 years of outstanding education, Strathcona-Tweedsmuir School (STS) is looking back at the foundation of excellence and character on which it was built, while looking forward at the everchanging world to ensure it is cultivating thought leaders and good citizens who will thrive and contribute to bettering the world as adults.

Photo by Riverwood Photography

Strathcona-Tweedsmuir School • 50 Years

Strathcona-Tweedsmuir School Continues to Flourish after 50 Years

Photo by EWAN PHOTO VIDEO

STS has always balanced high academic standards with enrichment activities and a focus on citizenship to produce well-rounded graduates ready for post-secondary and beyond. There is a culture of service nurtured at every age through unique experiences like the Social Agencies program and student conferences and exchanges as part

of the Round Square organization. Students steer their charitable giving with time and community engagement ranging from food, toy and clothing drives to service trips to other countries. It has long been an important component of the learning and character development which are priorities at the school. While Strathcona-Tweedsmuir School honours its traditions focused on character development and academic rigour, it boasts a progressive curriculum that sets out to meet the needs and interests of students as it offers a wide range of academic and co-curricular options.

Strathcona-Tweedsmuir School • 50 Years • 2

“We are committed to ensuring that our programs remain relevant and that we’re meeting the needs of not only yesterday’s students, but also today’s students and into the future,” says Carol Grant-Watt, head of school for Strathcona-Tweedsmuir School. The STS student of tomorrow will discover a full gamut of programming offered on the unique 220-acre campus located south of Calgary. On top of being the first full International Baccalaureate (IB) World School and the only independent school to offer IB from kindergarten through grade 12 in Alberta, STS also offers 90 co-curricular programs to round out the students’ education. The campus itself acts as an additional teacher for students. The school uses its beautiful natural environment to enrich programming, from the observatory on campus to ecological studies, kayaking and overnight outdoor education camping experiences at the school, encouraging students to stay connected to the land. One co-curricular program popular with students is the design program, which doubles in enrollment every year. This innovative offering introduces a multitude of modalities, exposing students to artificial intelligence,

robotics and product design instruction that promotes designing for purpose and social good rather than for the sake of consumption and capitalism. The school also has an incredible fine arts department that gives students the opportunity to explore their creativity and discover their passions. It has robust visual arts, music, theatre and musical theatre programs complete with a beautiful 750-seat theatre for performances. “Students can engage in areas of passion in a way that also builds academic rigour. Our fine arts programs are challenging and we send students into fine arts disciplines in post-secondary every year but they’re also a place where students can develop identity, collaborate, be creative and have fun in a lot of different disciplines,” says Brianna Dawe, director of fine arts for STS. Experiences bring curriculum to life, and whether students are embroiled in core course content or noncore options, STS strives to make content engaging and connected to students. Through strategic partnerships, the school involves students in innovative programming that supplements their academic portfolio and exposes them to a variety of different areas of interest.

Photos by EWAN PHOTO VIDEO

“Our programs are grounded in good pedagogy. They’re grounded in what makes sense for kids. They’re grounded in real-world experiences. And while we strive to be leaders in education, we also focus on being good partners with

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Strathcona-Tweedsmuir School • 50 Years • 3

Congratulations on 50 years of developing compassionate, curious and creative leaders

other schools. At the end of the day, we all want the best for kids,” says Grant-Watt. As a leader, Strathcona-Tweedsmuir School is dedicated to creating an environment that promotes engagement, critical thinking, reflection, creativity and leadership through curriculum as well as outside classroom experiences. The school values curiosity and creativity to learn and solve problems, and kindness, respect and pluralism as ways to achieve a sense of belonging within its walls. Through humility students open themselves to growth, joy to celebrate successes, excellence as the outcome of doing their best, and resiliency to endure

Congratulations Strathcona-Tweedsmuir School on your 50th Anniversary. We look forward to continuing our partnership together.

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Congratulations to Strathcona-Tweedsmuir School on your 50th Anniversary!

Photo by EWAN PHOTO VIDEO

“We have absolutely ordinary human beings here who are doing extraordinary things,” Grant-Watt says. “We create a sense of belonging where you can be your authentic self and have trusted adults in partnership with parents to help students succeed.” hardship and become stronger because of it. These values are all encompassed in the school’s new mission statement prepared as part of the 10-year strategic plan they are calling “Flourish.” The mission is for “a diverse community where students pursue lives of purpose and flourish emotionally, physically and intellectually.” The teachers and counsellors support the students, guiding them in their academic and personal lives throughout their time at the school to allow them to flourish. “We have absolutely ordinary human beings here who are doing extraordinary things,” Grant-Watt says. “We create a sense of belonging where you can be your authentic self and have trusted adults in partnership with parents to help students succeed.” Robust learning strategist programs help students with different academic needs while smaller classroom sizes and ample prep time allow teachers to better connect with students. The administration also strives to make Strathcona-Tweedsmuir School as financially accessible as possible to any student for whom the STS framework would be a fit, removing barriers to entry by offering the opportunity to attend through financial assistance. To better serve the diverse student body, teachers can personalize teachings through progressive programming and teaching strategies to ensure the best outcomes for each student. The goal is not to achieve perfection, but rather for students to try their best in all they do to achieve a great result. The school motto – Nil Nisi Optimum – means ‘nothing but our best’ and it is a living model that resonates and motivates STS students.

Photo by EWAN PHOTO VIDEO

“The diversity of our population would surprise a lot of people,” says Alanna Wellwood, director of learning innovation at STS. “It’s not just one academic program that’s homogenous or uniform, and it’s the extent to which we’re preparing them for the gig economy. We’re really trying to be innovative and progressive with our programming and particularly in the Alberta landscape, that’s mission critical to economic diversification and we’re trying to do our part.”

Strathcona-Tweedsmuir School is doing its part to nurture young people through exceptional school experiences, innovative programming and the work of dedicated teachers so that these students can become the leaders of tomorrow. They have more than 10,000 alumni around the world living lives of purpose as a testament to this – what an incredible legacy to celebrate on their 50th anniversary.

306 Ave. West & 32 St. West Okotoks, Alberta Canada T1S 1A2 403.938.4431 • www.strathconatweedsmuir.com

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ALBERTA’S NEXT BIG OPPORTUNITY: HEALTH // ADAM LEGGE

Alberta’s Next Big Opportunity: Health BY ADAM LEGGE, PRESIDENT, BUSINESS COUNCIL OF ALBERTA

e know Alberta as the country’s economic powerhouse, owing to our province’s well-known capabilities in the energy and agricultural sectors, among many others. But why limit ourselves to just a couple areas of economic strength? Alberta has more to give. What may surprise you is Alberta’s existing and emerging strengths in the health sector. Expertise in healthcare delivery and health innovation will be increasingly important in the decades ahead. One of the many great challenges the world will face is the realities of a rapidly aging population. Globally, life expectancy has increased by more than six years since 2000. But unfortunately, increases in healthy life expectancy – the number of years spent in good health – have not kept pace. A greater proportion of older adults means an increasing incidence and severity of chronic conditions. By 2030, at least half of the Baby Boomer generation is expected to be managing a chronic condition, leading to double the hospital and doctor visits, and placing significant strain on healthcare systems. This is where Alberta comes in. This province has tremendous assets and strengths that can be harnessed to contribute solutions to this global challenge. We are home to several focused research institutes, including the Li Ka Shing Institute of Virology at the University of Alberta, the Hotchkiss Brain Institute at the University of Calgary, and the soon-to-open Calgary Cancer Centre.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

We have well-established innovation enablers like Alberta Innovates, Health Cities, and the Health Innovation Hub that help entrepreneurs develop and commercialize their health innovations. Speaking of entrepreneurs, we have more than 250 life sciences companies in the province. A quarter of these companies were established in the last three years, showcasing the increased demand for health solutions and Alberta’s conducive innovation environment. We saw significant growth in start-up companies for medical technology and devices, health biotechnology and pharma, and health IT. And two-thirds of these companies expect to transition to the growth phase this year. Alberta’s opportunity is in commercializing new research and emerging health technology solutions. Not only will this drive economic growth as we build and export innovations, but it will also contribute to better health outcomes, both for Albertans and for those all over the world. We can help solve the global health challenge, and grow a large and diverse health sector in Alberta. If the health sector is to be Alberta’s next economic powerhouse and globally recognized hub of health care solutions, we need to shift into high gear, get businesses and governments working more together, and ensure innovators are drawn to and can succeed in Alberta.

Fidelity Group Breaks the Mould Not Your Average Machine Shop by Rennay Craats Jeff Litster, Ben Mayer, Joseph Brunelle, Ryan Arseneau and Corey Homick. Photo by Riverwood Photography. All subsequent photos are by Graham McKerrell Photography. 53

hen Jeff Litster and Ryan Arseneau moved from Ontario and Quebec to Calgary, they could never have imagined what was in store for them. They were machinists by trade, lured west by the strong economy and the promise of skiing, climbing and biking in the Rockies. They met in 2000 while working at the same shop and bonded over their love of the outdoors and their ambition to advance their skills at work. By 2007, they were ready to start a machining business of their own. The duo convinced Joe Brunelle and Corey Homick to move to Calgary from Ontario and join their company, Fidelity Machine and Mould Solutions. They initially said they didn’t want to be in the ownership group but agreed to work at Fidelity for five years; Brunelle quickly changed his mind and became an owner while Homick returned to Ontario. It didn’t take long before he realized he missed the guys, the business and the city and was welcomed back into the fold. A few years after that Ben Mayer joined as the fifth owner, creating a strong leadership core at the growing machine shop. “We started focusing on injection mould making – steel and aluminum moulds to make plastic parts. That was where our background and expertise was and it was all we thought we were ever going to do,” says Jeff Litster, president of Fidelity. “But because that work is unique and each part is unique, it gave us the ability and the technology and the machinery to do other complex work in other sectors.” The company’s client base began to grow and Fidelity’s reach expanded. Today, injection moulds make up about one-third of the company’s business, and the team is focusing on expanding its influence in diverse medical offerings, aerospace products and clean tech solutions. Fidelity has an ownership stake in and is partnering with a new company called TAKEnergy to develop natural gas expanders that will create electricity during decompression to further its participation in clean energy production. Fidelity offers a complete suite of manufacturing, offering clients a wide range of CNC capabilities, industry-leading mould making, an advanced EDM facility, and a complement of design and engineering services that provide creative solutions that help clients make more refined, higher quality parts. The company presents new technologies and novel approaches to allow for higher volumes and better efficiency in manufacturing. “We are open to any challenge, whether it be medical masks or downhole drilling equipment

Fidelity Manufacturing Group || Page 2

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Fidelity is committed to serving clients’ evolving needs and is proud to be far more than an average machine shop. This is apparent in the rebranding of the company; the company is now Fidelity Manufacturing Group to reflect that it is so much more than machining and mould making. or parts going into outer space,” says Litster. “More and more we are finding that different needs are popping up and the status quo isn’t the status quo anymore. What we needed yesterday is not what we need today. In a lot of cases understanding what we need today is a process and we are there to go through that process with our customers.” Fidelity is committed to serving clients’ evolving needs and is proud to be far more than an average machine shop. This is apparent in the rebranding of the company; the company is now Fidelity Manufacturing Group to reflect that it is so much more than machining and mould making. With that rebranding has come a renewed commitment to be a partner to clients, not a mere vendor.

Calgary: 1-800-482-6173 | Edmonton: 1-800-661-9949 Vancouver: 1-888-543-1113 | Saskatchewan: 1-855-269-4848

Customers look to Fidelity for creative solutions to complex problems that are delivered on time. The company has become the go-to shop for complicated jobs, both for clients and for other shops in town, and the team is always up to the challenge. Client satisfaction is the priority, and Fidelity goes the extra mile to ensure needs are met and client expectations are exceeded.

Fidelity Manufacturing Group || Page 4

The owners have exceeded their own expectations too. When they started Fidelity, they thought their 6,000-square-foot shop to produce injection moulds would be all they would need. Then they outgrew that space and moved into a 22,000-square-foot space to accommodate demand. The medical division ballooned as the company began producing masks during the pandemic, and the space included an ISO clean room and production machines that allowed them to make eight million high quality masks a month. The team also partnered with a client to not only design and

create a complicated MWD tool but to also produce large quantities of it with the help of some local shops. As the company responded to the market and capitalized on opportunities presented by clients, it became too big for this space as well. This summer, Fidelity Manufacturing Group moved into its new 55,000-square-foot tailored space that will give them room to grow and allow them to better serve clients. Even though it is growing in size and scope, it still provides small-business individualized service.

Fidelity Manufacturing Group || Page 5

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“We came from the automotive industry where the expectations and pressures involved are another level. If you miss delivery the consequences are high. It’s been ingrained in us to strive for next level service – anything less than that is just mediocre,” says Corey Homick, project manager for Fidelity Manufacturing Group.

CONGRATULATIONS FIDELITY MANUFACTURING GROUP 6011 37 Street Innisfail, AB 587-819-1038 info@atlas-machining.com www.atlas-machining.com

HAPPY ANNIVERSARY FIDELITY! It’s been a pleasure working with you for the last 15 years. Specialists in custom plastic injection molding

QUALICASE LTD. 2715 61 Ave SE, Calgary, AB T2C 4X3 • 403.236.8885

T O T A

L U

“I take a lot of pride in the fact that our staff is still with us. It says something about our philosophies and who we are. When Jeff and I were talking about opening the shop, we always said we’re going to treat the staff like we wanted to be treated,” says Arseneau.

Mediocrity isn’t an option at Fidelity. The team produces expert workmanship, whether creating high performance injection moulds, complex 3D surface milling or producing complex internal features like threads or undercuts in the advanced EDM facility. Reaching these high standards requires exceptional staff, and the company is proud of its great group of dedicated employees. It is a coveted place to work, and prospective employees are drawn to Fidelity for the opportunity to develop their skills and broaden their experience. Machinists aren’t just operators, they are programmers working on state-of-the-art equipment to find creative solutions for clients. Turnover is low and employees are invested in the success of the company as many hold options in Fidelity. “I take a lot of pride in the fact that our staff is still with us. It says something about our philosophies and who we are. When Jeff and I were talking about opening the shop, we always said we’re going to treat the staff like we wanted to be treated. We’ve been in front of the machines. We’ve done the hard work. We’ve done the dirty jobs. We still do, and we always said our staff would be number one,” says Ryan Arseneau, director of operations for Fidelity Manufacturing Group. As Fidelity Manufacturing Group grows it is also helping grow and strengthen the industry. The team liaises with the University of Calgary, Calgary Economic Development, IRAP and is heavily involved in the Registered Apprenticeship Program (RAP) to attract ambitious young people and to increase awareness about opportunities in trades.

Fidelity Manufacturing Group || Page 6

“Probably 10 years ago we recognized that finding good talent is increasingly difficult. All the schools push post-secondary and no one was pushing the trades. We got involved, participating in job fairs over the last eight years and it has lent itself to some really good staff that we currently have,” says Arseneau. Great staff, great leadership and superior service and products have made Fidelity Manufacturing

Group a trusted company across sectors for machining solutions. After 15 years, the progressive team is proud to continue growing and diversifying as it helps its valued clients succeed. 6620 36th St SE T2C 2G4 Phone: 403.724.0008 • 24 hr: 403.650.9843 www.fidelitymachine.ca

• CUSTOM MACHINING & MANUFACTURING • SURFACE GRINDING • WELDING • Nucleus Energy is proud to celebrate with Fidelity and wish them success on their move.

7210B 5th Street SE, Calgary, AB T2H 2L9 • 403-452-0599 www.nucleusenergy.com Fidelity Manufacturing Group || Page 7

OPENING NEW DOORS CP DISTRIBUTORS CELEBRATES 60 YEARS

By Nerissa McNaughton

anadian owned and operated, and with six locations across four provinces, CP Distributors is growing steadily and surely across the nation. The company is most well known for its doors, frames, hardware overhead doors, toilet partitions and door hardware. As a one-call-does-it-all service, CP’s projects come with the full support of architectural openings consultants, estimators, project coordinators and install technicians.

DISTRIBUTORS• 60 • 60YEARS YEARS• 2 CPCPDISTRIBUTORS

CP Distributors was founded 60 years ago by John Hall (majority shareholder) and Roy Coulman (minor partner). A successful start meant additional team members were soon needed; Ken Suppes and Martin Scobie soon joined the brand. In 1972, Suppes and Scobie bought out Hall and Coulman. In 2004, management and ownership transferred to Scott Suppes, Kevin Suppes and Gerald Haller. Today, Scott, Ken’s son, is CP Distributors’ President and CEO.

Scott Suppes

Rob Grant, Vice President, Director of the Central Project Team, talks a little more about those early days, saying, “The first location was in Saskatchewan in 1962 and that quickly kicked off the train of growth. A second location opened in Regina in 1978, then Edmonton in 1980. Just three years later we expanded to Calgary, then on to Surrey, BC in 1987. Our most recent expansion was into Halifax in 2016.” Grant continues, “The foundation of CP Distributors has always been the door and door hardware business, but over the years we have really branched out into niche areas for building specialties such as lockers, toilet partitions, washroom accessories, and more. At one point we even provided the boxes/bodies for the back of ambulances. While we don’t provide those anymore, it shows how we are always willing to lean into opportunities and branch out to fill market needs. If it makes sense and can be profitable, we will invest our resources. Our focus today is providing solutions for all types of door openings which basically means if you can walk through it or drive through it, we have a solution for you.

Rob Grant

SCHLAGE MOBILE ACCESS SOLUTIONS WHERE LEGACY MEETS INNOVATION www.allegion.ca

PARTNERS IN ARCHITECTURAL OPENINGS FOR 60 YEARS AND COUNTING

CP DISTRIBUTORS • 60 YEARS • 2

Calgary Cancer Centre

This updated focus is not strictly for products that help in these situations, but we now have a full line of access control systems to help augment our opening solution package. In addition to a growing product list, we have recently redefined and redeveloped our processes. It’s all part of our vision to enhance our offerings with new services, products, and capacity for our customers.” One of the recent process overhauls took place in 2018. Grant says, “We launched a phone app called CP360. It’s for internal use as well as for project sites. This tool maintains everything online from photos to shipping and documentation. It helps us remain proactive and ahead of developing issues, and empowers us to be quickly reactive if something, for example, was short shipped.” The next year CP Distributors made another change and launched its pre-assembled program. Grant explains, “Now we can provide fully pre-finished metal or wood doors in any colour required. We fit all the door hardware ahead of time and send it out to site as a complete package. It did take our customers some time to acclimate to this new convenience, but now it’s really starting to steamroll, and the majority of our projects are going out as pre-assembled.” CP DISTRIBUTORS • 60 YEARS • 3

From the start, the company’s innovation, customer care and quality products empowered CP’s continued growth. The early days of the company saw a staff of around 15. Now there are more than 270 staff corporately including 48 in Edmonton and 54 in Calgary. “A big part of our success is the extent of knowledge and expertise in our team,” says Grant. “We have quite a number of people with 20+ years of service; some have over 30 and a handful have 40! I’ve been with CP for 29 years myself. We take serious pride in our ability to retain people for as long as we have. A key to success is to have this level of technical knowledge and expertise in house and in the industry.” CP Distributors empowers each team member with training in all positions, providing a safe and inclusive workplace and providing outstanding working conditions. “We choose to invest very strongly in our people,” Grant reaffirms. “However, like any other organization right now, continuing to build the team is a challenge post-COVID. As we come out of the pandemic, we see a lot of change within our organization and within our industry. We remain in serious growth mode and are committed to hiring people that will contribute to, and make a difference for, our brand.” Icon Towers - Edmonton

Congratulations On Your Achievement! We are honored to be your working partner.

Quarter Sawn Rosewood in Natural

22.061 CP Distributors 60 Years Ad.indd 1

CP DISTRIBUTORS • 60 YEARS • 4

5/11/2022 10:24:55 AM

Grant enjoys working from the Edmonton location. “With the number of years I have been involved in the construction industry and with CP, Edmonton has always stood out as a great place to run a business. It really has a small town feel with big town dreams. I have seen a lot of positive changes in Edmonton in my time and developed a lot of very positive relationships with industry partners, clients, and friends. Everyone that grew up in Edmonton and got into the construction industry, we all have one goal in mind – and that is to build a better community.” Grant says about the Calgary branch, “Calgary is unique among the cities in which we operate. Where other cities, such as Edmonton, are focused on industry and manufacturing, Calgary is focused on head offices and administration. We have enjoyed seeing the developments downtown that are designed to cater to the big operations, whether it is oil and gas or other sectors. We do see that Calgary shares a lot of the same traits as Edmonton, though, when it comes to that can-do, entrepreneurial spirit.” CP Distributors’ work may not be as visible as one of the city’s highprofile towers, but their work has made a tangible difference in many more humble ways. For example, in 2012 CP completed a landmark project for the Edmonton Remand Center. “That was when the Remand moved from downtown to it’s current location on the north side,” Grant reminisces. “At the time it was the biggest contract we had ever landed! CP handled all the commercial doors and door hardware, as well as the detention equipment package. Although it was a massive undertaking, and a really big learning curve, it was an incredibly successful project experience all around. I started out on this one in the estimating side of things but as the job progressed and when we got into the final stages of the project, I ended up spending a lot of time on time on site to manage the close out of the project. Once were able to turn the final screw, well, it was a very rewarding feeling for everyone involved.”

Congratulations CP Distributors on 60 Years!

1200 Exterior Wall Mount

NS-101 Recessed

Proud manufacturers of postal products and beyond since 1976

CP DISTRIBUTORS • 60 YEARS • 5

CMC Is Always First with Quality, Delivery and Design

5170 Saint-Patrick Street Montreal, Quebec, Canada H4E 4N5 Toll Free: 1-888-388-1397 International info@canadianmailbox.com www.canadianmailbox.com

CP Distributors is also pleased to count the Royal Alberta Museum (RAM) among its many successful projects. “The RAM was complicated with many new scope items,” says Grant. “It was an enjoyable learning experience.” Today, the largest contract secured by CP, and the one that has eclipsed the Remand in scope, is the in-progress Calgary Cancer Centre for Alberta Health Services. “This state-of-the-art Centre will be a hub for cancer research in addition to a treatment facility,” explains Grant. “Upon completion this year, it will serve as a hub to consolidate and expand the range of cancer services in southern Alberta. CP Distributors was pleased to supply and install the hollow metal doors, plastic laminate wood doors, the finish hardware, and automatic door openers along with automatic and manual sliding doors. Additionally, all of the steel and wood doors were supplied as a prefinished/pre-assembled product along with pressed steel frames and STC windows.” Since it’s start 60 years ago, one thing has remained unfailingly consisted for CP Distributors: giving back. Every generation of ownership and every management team at each location has been heavily invested in giving back to the communities that have helped build the brand. Just a few of the organizations CP Distributors is proud to support include Arthritis Society, Heart and Stroke Foundation of Canada, Make-A-Wish Foundation, MS Society of Canada, and many more. On behalf of the ownership and management group, and the teams in all six locations, Grant says, “A very big thank you to all our client partners, trade partners and industry cohorts. Our industry partners have been very instrumental to our success and growth. The teams also thank and acknowledge the leadership of President & CEO Scott Suppes and CFO Gerald Haller.”

CP DISTRIBUTORS • 60 YEARS • 6

Wishing you many more years of unparalleled success. Happy 60th Anniversary!

CONGRATS CP DISTRIBUTORS ON THEIR 60TH YEAR IN BUSINESS! Y O U R

PA R T N E R

I N

S U C C E S S

www.galleryspecialty.com

CONGRATS CP DISTRIBUTORS ON your 60th Anniversary!

Burrard Place - Vancouver

Sixty years and two generations of ownership have brought the company to where it is today. The past informs the future as the plan is to keep growing, keep learning and remain ready to take on opportunities that CP can execute while learning new concepts. Grant concludes, “Anyone can sell products; at CP we offer solutions. We recently had our management meeting in Halifax and Scott disclosed the next goal in terms of sales. It’s a hefty number but we are ready for the challenge! The way to get there is to keep building our partnerships and relationships. We plan to expand into new markets and geographical areas and are heavily looking into acquisitions to introduce and develop a security department. Adding the scope of security services ties perfectly into our door and door hardware expertise.” For CP Distributors, the future is an open door. Learn more at cpdist.ca online, @cpdistributors on Twitter and Instagram and @cpdistributorsltd on Facebook. The company is also active on LinkedIn.

CONGRATS CP DISTRIBUTORS on your 60th anniversary! MAILBOXES

585 St-Rémi Street Montreal, Quebec H4C 3G6, Canada Tel: (514) 934-0385 (833) 434-0385 Fax: (514) 934-1732 E-mail: info@riopelnet.com Website: www.riopelnet.com

4550 25 St SE #120 Calgary, AB T2B 3P1 (403) 253.2006 • Toll Free: 1-888-875-9090 sales.calgary@cpdist.ca cpdist.ca

CP DISTRIBUTORS • 60 YEARS • 7

BOB WYLIE: THE SWING OF A LEGEND // SCOTT ORBAN

McKenzie Meadows Golf Tip:

Bob Wylie: The Swing of a Legend BY SCOTT ORBAN, PGA EXECUTIVE PROFESSIONAL, MCKENZIE MEADOWS GOLF CLUB

n 1995 Calgary golfer Robert (Bob) Wylie was inducted into the Canadian Golf Hall of Fame. He played on the PGA tour in 1957, then returned to amateur golf where he represented Canada through the 1960s internationally. Later in his career, he won the Canadian National Senior Championship seven times. During a different era, he would have competed for Canada as an Olympian and perhaps continued on the PGA tour. Mr. Wylie passed away in September 2021 just days before his 93rd birthday. He had a reputation that preceded him in the golf world and was a fantastic person with class, poise and a great smile. Canadian golfers looked up to him for decades and his swing resonates with us locals to this day. What was the secret to his swing that allowed him to compete and win at this high level for decades? Mr. Wylie’s home club was the Calgary Golf and Country Club. I was the associate golf professional there and I had the opportunity to learn from Mr. Wylie by watching him practice, compete and visit with him at his home club. Prior to a game together, I queried: “Mr. Wylie, why are you hitting off the stance mat?” “Isn’t it too forgiving?” “Scotty I don’t mind a bit of forgiveness. I like to see good shots before my game,” he remarked. This resonates with me whenever golfers ask me why we are not on the grass range before their round. Start your game with confidence, warm up is not the place to challenge yourself and your swing. Mr. Wylie’s ball striking was very consistent, with a dime pattern worn on his Great Big Bertha. Although not a big muscular man, he generated incredible speed. Mr. Wylie did not talk to me about bits and pieces, parts and specified movements of the golf swing. The swing was ‘one whole motion’. The full movement of swinging the club with proper rhythm allowing the club to gain momentum and speed to strike the golf ball.

CG&CC head pro Tom Greiner told me he had heard that his teacher Martin Allred had Bob swing a golf club for months before he was allowed to hit a ball. Imagine putting this kind of discipline in to learn the fundamental motion of a golf swing without having a ball to interrupt your swing thoughts. We can learn the positions of the golf swing, but undoubtedly, we all need to put this together in one complete motion: The Golf Swing. Bob Wylie mastered this and became one the best Canadian golfers of our time and a man we will remember. See Bob Wylie’s swing at 89 years old: https://twitter.com/ golfcanada/status/1070792684103720962 HTTPS://WWW.MCKENZIEMEADOWS.COM/ACADEMY/GOLF-TIPS

BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

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Grass Tee driving ranges, putting greens and bunkers. The Academy features PGA Pros to coach you to the next level.

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Our staff make the difference in the restaurant, on the patio or at our separate event centre nestled in the beauty of the park.

“Calgary’s Premier Public Golf Facility”

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BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // JULY 2022

PARKER’S PEN // DAVID PARKER

Parker’s Pen BY DAVID PARKER

aced with a seven-hour drive to spend time with daughters in Trail and on Christina Lake, we had the bright idea of flying into Castlegar, saving the long drive and frustrating construction stops. And shouldn’t we be supportive of airlines that have had such a tough time over the past couple of years? First problem – apart from the exorbitant cost of a ticket – was trying to organize the boarding pass online. Many attempts were made before recruiting the help of daughter #2 from her laptop at the lake. Arriving 90 minutes before take-off after a $50 cab ride, one of the boarding pass QR codes just didn’t work. Then it was a 12-minute walk to the terminal but boarding was only 10 minutes late. One lady told us she had been there the day before but her flight was cancelled. Now, like all other passengers we confidently contacted daughter #1 to drive the half hour to Castlegar to pick us up. Up, up and away. Until only a few minutes from our destination the flight deck informed us. “We have a malfunction with the landing gear so must return to Calgary.”

And that is also home to Major Tom. Congratulations to Concorde Entertainment Group on it being named Canada’s best new restaurant.

If historic names really must be changed – something that I have railed against – then I have my own suggestion. One of the first men to call attention to Yoho Valley was Jean Habel, a German adventurer and mountaineer. In 1900 a 10,387-foot mountain was named in his honor by one of my heroes, mountaineer Norman Collie who made the first ascent of Mount Athabasca from where he was the first explorer to see the Columbia Icefields. After the first world war it was renamed Mont des Poilus to honour French infantrymen. I prefer Mount Habel. There is a precedent in our mountain nomenclature.

Anxious moments but landed safely. Move to another gate and they soon had another plane for us but couldn’t rustle up a crew. Flight cancelled – come back tomorrow.

In 1946 Castle Mountain was renamed Mount Eisenhower but after much public pressure reverted back to Castle in 1979.

Thanks to daughter #2 who changed our flight through to Kelowna and then drove three hours to pick us up.

All very well trying to bring multi-family units into the core but I have a concern about children being brought up amidst downtown traffic with few places to play and no schools.

Eight hours before we finally left YYC. So sorry, airline industry, next time it’s a long drive but we will be in control.

It’s encouraging to see optimism returning to the downtown. There’s a push by city hall to refill towers but exciting to see Bantrel made its decision to relocate back into the core on its own dollar after many years along Glenmore Trail. Simple reasons cited were better abilities to network, being closer to clients

and the huge variety of eateries for staff – as well as the great amenities at its new home in Stephen Avenue Place.

JULY 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM

It’s been a long time since kids were seen and heard enjoying their break time at McDougall School.

Final Words There’s always lots of free cheese in a mousetrap.

Business in Calgary - July 2022

Articles inside

Parker’s Pen

Bob Wylie: The Swing of a Legend

CP Distributors

Alberta’s Next Big Opportunity: Health

Strathcona-Tweedsmuir School

The Boom and the Challenge

UN’s Guterres on Wrong Track with Message to Students

Turning a New Leaf

The Hot Market Cools (a bit

Ten Years of The Shaw Charity Classic

You Could use $87 Billion... Really?