ARBONNE: Poised for an era of rapid expansion made possible by I.T.
w w w.businessreviewusa.com
November 2016
w w w.businessreviewcanada.ca
GE’s
NEW
BUSINESS SCHOOLS
N
P
ILE
M
A
Y
F RO
CO
TOP10
P
BRILLIANT FACTORY
UNIVERSITY OF CHICAGO MEDICINE AND BIOLOGICAL SCIENCES
In a world of increasing complexity, there is a way to be certain. In a fast-evolving marketplace, which demands leadership that brings results, there exists a way of certainty: Tata Consultancy Services (TCS). With TCS as your strategic advisor and partner, the ever-changing new landscapes of business become new vistas of opportunity, from digitally connected consumers and big data to emerging markets and end-to-end solutions for transforming your organization. TCS offers you market-proven, world-class experience, expertise and guidance to show the way for your business to evolve. Visit tcs.com/retail and you're certain to learn more.
IT Services Business Solutions Consulting
EDITOR’S COMMENT
WELCOME to the November issue of
Business Review USA & Canada.
T
his month features an interview with Elyse Allan, CEO of GE Canada, and Kim Warburton, Vice President of Communications and Public Affairs, about the company’s new Brilliant Factory in Ontario. The facility is a set to be a state-of-the-art project which will bring both prestige and economic prosperity to the local area, and marks the beginning of a new age for GE. Also featured is a piece from Daniel Kurgan, CEO of BICS, about how the US is front and center of telecoms innovation, and our list is the top 10 business schools in Canada. November’s exclusive profiles
include Arbonne International, the skincare company that is undergoing an international expansion; SCT&E LNG which is developing a liquefied natural gas export terminal in Louisiana to promote the use of clean natural gases; University of Chicago Medicine and Biological Sciences and its high-tech campus and science unit construction project; HTS Engineering’s growth and innovation in the air conditioning sector; and AiNET’s flexible data center offerings. Enjoy this issue, and please do join the discussion on Twitter: @BizReviewUSA & @NellWalkerMG
Nell Walker Editor nell.walker@bizclikmedia.com 3
CONTENTS
F E AT U R E S
06
PROFILE
GE:
connecting Canadian manufacturing
12
20
TECHNOLOGY
The US at the front and center of telecoms innovation
50 University of Chicago Medicine and Biological Sciences
LIST
Top 10 Canadian MBA schools 4
NOVEMBER 2016
32
Arbonne International
C O M PA N Y PROFILES TECHNOLOGY 32 Arbonne International
CONSTRUCTION 50 University of Chicago Medicine and Biological Sciences 66 HTS Engineering 78 AiNET
ENERGY 90 SCT&E LNG
66 HTS Engineering
78 AiNET
90
SCT&E LNG
PROFILE
Elyse Allan, CEO of GE Canada
Connecting
Canadian manufacturing Wr i t t e n by : N E LL WA LK E R
GE Canada has broken ground on the site of its future Brilliant Factory in Welland, and speaks to Business Review USA & Canada about the project ahead EARLIER THIS YEAR, the province of Ontario partnered with General Electric Canada to provide the company with a $20.5
million grant, aiding to fund the new Brilliant Factory in Welland. The facility will be one of the most technologically advanced of its kind in the world, bringing a plethora of economic opportunities to the local area. It will create a fully-integrated industrial Internet of Things approach to manufacturing, and as such, further enhance Ontario’s status as a growing presence in the world of technology. Business Review USA & Canada spoke with Elyse Allan, CEO of GE Canada, and Kim Warburton, 7
PROFILE
GE has operated in Canada for over 100 years, beginning with the manufacturing facility in Peterborough, Ontario founded by Thomas Edison in 1892. Vice President of Communications and Public Affairs, about the new Welland factory and what it means both for GE and for Ontario. “We broke ground in August this year,” Allan says, “and expect the factory to open early 2018. The first business to be located in the multimodal facility is GE Power, which will make reciprocating gas engines. The plant will also manufacture components for GE transportation diesel locomotive engines.” GE has been in Canada since 1892, when iconic inventor Thomas Edison founded a factory in Peterborough, and it has maintained a presence
8
November 2016
ever since. Still, the Welland factory is a huge deal for Ontario and the nation itself, as Warburton explains: “We looked at many locations, but we settled in Ontario for proximity to the border and access to quality labor. There aren’t a lot of stories about big business in Canada, but this is a message of hope for the manufacturing sector in this country. When you’re part of a multinational, you fight every day for your countries because there’s lots of voices around the table, and many equally compelling reasons to go elsewhere. One of the big drivers is the Economic Development Corporation that exists
G E : C O N N E C T I N G C A N A D I A N M A N U FA C T U R I N G
in Canada, with that it will eventually which we have a be competing against great relationship.” at least two hundred “The province others worldwide. is well located for The facility will export to reach our run 3D modelglobal customers,” based simulations adds Allan, “and has to help optimize the incredible talent manufacturing, and we need for our real-time analytics to advanced facility.” ensure GE is able to The work that GE predict and prevent will do in Canada unplanned downtime. is described by “If you can predict Elyse Allan, CEO of GE Canada Warburton as “wholewhat’s happening world digital,” meaning an industrial with your machine before it occurs, level of IoT. “Advanced manufacturing you can fix it in advance,” Warburton now is about taking a look at existing says. “3D manufacturing has become factories and saying ‘how can we be very advanced; you couldn’t do any better by using both digital and lean of this five or 10 years ago. Down manufacturing?’, and so in Welland the line we’ll undoubtedly be using we’re building bigger and better virtual reality in some factories. All efficiency through digitization.” these new things are now being GE expects that the Brilliant Factory brought into facilities which make will swiftly allow production to run them more viable than ever before.” around 30 percent faster than it The Brilliant Factory production currently does, and that it will be at model, GE says, has evolved quite least 10 percent more productive. The naturally to a point where it is among Welland Plant is likely to remain one of the most advanced in the world. “Just the top 10 in the world, despite the fact think about consumer internet 10
Caption to the image
9
PROFILE
“There aren’t a lot of stories about big business in Canada... years ago – we’re now at the beginning stage of industrial internet, which is the next phase,” Warburton explains. “It’s really quite incredible when you think of the millions of machines and pieces of equipment that are now connected via the industrial internet, and that allows them all to talk to each other. You couldn’t do that not long ago.” One of the most exciting prospects for Ontario as it helps to fund GE is the economic impact. The province is investing over $2 billion across a 10 year period through the Jobs and Prosperity Fund to bring in big business and create job opportunities; companies which are
settling in Ontario to manufacture include Fiat Chrysler, General Motors, IBM, Google, and Huawei. “Our aspiration is that Welland’s Brilliant Factory becomes one of the top GE factories in the world for advanced manufacturing,” Allan says, “and we look forward to working with the City of Welland to create jobs and economic growth.” “Because of digitization and the tools involved in achieving it, you can do things more efficiently which puts a whole new face on traditional manufacturing,” Warburton adds. “Now we can have skilled workers doing skilled tasks.
...but this is a message of hope for the manufacturing sector in this country” – Kim Warburton, VP of Commucations and Public Affairs, GE Canada
10
November 2016
GE: CONNECTING CANADIAN M A N U FA C T U R I N G
That’s the future of manufacturing, and it’s good news for Ontario. “Welland has been a depressed area economically, and this building is a boost to the community. Others will look to Welland and hopefully choose to move there, helping the economy further. It’s a domino effect. We’re sourcing as much labor as possible from Welland itself, which we’ll be hiring for in 2017 ready to open the factory in 2018.” In the words of Kathleen Wynne, Premier of Ontario, “GE’s decision to invest in Welland sends a clear message that our province has a lot to offer”; the project is a mutually advantageous strategic move which will benefit both the province and the technology giant immensely.
11
The US at the front and center of telecoms innovation Writ ten by: DANIE L KURG AN
TECHNOLOGY
Daniel Kurgan, CEO of BICS
TECHNOLOGY
The US market is at the center of communication service evolution with traditional carriers, retail brands and Silicon Valley app companies all competing for market and technological supremacy. Here, Daniel Kurgan, CEO of international carrier services provider BICS, explains the unique dynamics of the US market and the trends the company is seeing from its customers across all of these segments 14
November 2016
THE INTERNATIONAL COMMUNICATIONS market is a fascinating and constantly evolving industry filled with innovation. Nowhere is this more evident than in the USA, where Silicon Valley’s finest are competing to provide mainstream and new app-based services traditionally offered by the likes of Verizon and AT&T. Simultaneously, traditional wireless providers are looking to provide value added services and complete the move to enhanced IP-based services, and a plethora of new MVNOs are entering the market based on popular retail brands and price-led propositions. It is a market where only the strongest will survive, and each segment of communication players must address their own unique challenges to ensure they win or retain the market share to meet their business objectives. Dominated by two market needs, which can be categorized into MNOs (mobile network operators) and digital service providers, the US proves to be an exciting testing ground for
T E L E C O M S I N N O V AT I O N
“It is a market where only the strongest will survive” VS
new providers with unique business models. Around 90 percent of appbased communications providers operate out of Silicon Valley and are now engaging with mainstream telecoms infrastructure companies to expand both their physical footprints and their technical capabilities. MNOs have had to upgrade their networks due to technological advancements, LTE growth and the role of big data. They now offer their subscribers enhanced services such as high speed data and high definition voice (VoLTE), which set an example to the rest of the world on how to keep customer engagement intact with the new service offerings.
Digital service providers on the other hand are cashing in on the growth of end-user reliance on smartphone devices for online activities. These often require identity validation and authentication via SMS or voice communication channels to avoid internet frauds over app downloads, mobile transactions, and so on. This is especially evident with those who are looking at new business models such as sponsored data – where users are offered free data to be used on a specific service – and those providing services in countries where regulation requires access to identity management services. Telecoms industry analyst house
15
TECHNOLOGY
Analysys Mason predicts that by 2020 the identity management services market
will be worth
$9.4 billion Analysys Mason predicts that by 2020 the identity management services market will be worth $9.4 billion. This will in part be driven by requirements from Valley app companies to verify the identity of those using their services both in heavily regulated markets and more widely for their own business objectives. Many of these Internet companies will need to engage with traditional wireless infrastructure providers to enable these and other services to improve their customer journey. International carrier services providers, such as BICS, have been
16
November 2016
engaging with these companies for some time: providing international capabilities, and enabling services which require more robust infrastructure than they already have access to. MOVING COMMUNICATIONS INTO THE NEXT GENERATION The rapid growth of these Valley players would never have been possible without the significant investments made by carriers around the world in making the ‘internet everywhere’ dream a reality. Not only is domestic 3G and LTE available throughout the States,
T E L E C O M S I N N O V AT I O N
but now customers of all of the major US networks can enjoy high speed data roaming while visiting more than 125 countries around the world, including all of the world’s major holiday destinations. This footprint has grown simultaneously with strong smartphone penetration seen across the world since the iPhone launch in 2007. Following the development and roll-out of truly international LTE, the next major step is the widespread deployment of higherdefinition voice services. In the US, this has taken the shape of VoLTE, which is currently being rolled out by carriers across the country. VoLTE (Voice over LTE) offers the same leap in quality from standard voice as data services received when LTE replaced 3G, and promises to offer the same boost in usage carriers saw during this transition. In regions where app companies are gaining traction with IP voice services it is vital that carriers accelerate this roll-out and truly make the most of their significant investment in next generation voice.
VOLTE EVERYWHERE VoLTE stands out as the highest quality HD voice service, offering low-frequency LTE spectrum usage, which enables network efficiency and reduced operational expenditure for mobile carriers. As usage increases in line with the availability of supporting devices and wider network availability, VoLTE will be made available for roamers and those making international calls. This promises to provide increased revenue for traditional carriers as they look to boost usage of voice and maximize the economic advantages from their technological investment. To achieve this ubiquitous international service, however, requires significant research and interoperability testing. This is currently being undertaken by BICS in association with carriers around the world.
17
TECHNOLOGY
Following multiple, wide-ranging trials, the use case for international VoLTE interworking has been successfully proven between Europe and Asia and means not only will users across launch markets have access to high quality voice service over an LTE network, but general mobility will increase too, enabling services to be used on any device, over any access network, be it 3G, 4G or Wi-Fi. This technology is now being perfected
services) launch including group chat, video calling, instant messaging and file transfer services. RCS is a carrier-led initiative offering rich and simpler communication services which are interoperable with all other operators both domestically and internationally, providing the same level of ubiquity as voice and SMS. This technology has also been embraced by Valley players such as Google with its purchase of Jibe
‘VoLTE will be made available for roamers and those making international calls’ for the US and other markets and will be available in due course. VoLTE is only the start of the technological innovation that will drive the industry forward during the coming years with the scene now set for wider RCS (rich communication
18
November 2016
at the end of September 2015. The acquisition further indicates how OTTs are interested in integrating telecom carrier-led next generation communication services. Both VoLTE and RCS will bring the next stage of all-IP era
T E L E C O M S I N N O V AT I O N
communications to the commercial marketplace, offering ubiquitous, high definition services with a robust fall-back onto legacy technology as and when required. In the US market, next generation services are revolutionizing communications services for operators, Valley app companies and end-users alike. The increasing demand has been driving service providers to ensure they have implemented local presences to target their current customers and potential new business and boost their income revenues where possible. If these technological developments are fully embraced, and supported by carriers providing reliable backbone infrastructure, operators are able to bring the next level of communications to the market place and provide a new level of customer experience to subscribers, increasing usage and profitability.
19
LIST
Top 10 Canadian MBA schools Here are Canada’s top business schools of 2016 ranked by reputation, according to Canadian Business. Wr i t t e n by : N E LL WA LK E R
21
LIST
10
JOHN MOLSON SCHOOL OF BUSINESS, CONCORDIA UNIVERSITY Established 1974 in Montreal, the John Molson Business School allows Quebec residents a hugely reduced course cost, charging just $7,000 rather than $16,000, and offers MBA students the chance to be a part of its long-running international case competition. It is the largest of its kind, now running for its 35th year, and the winners receive $10,000.
www.concordia.ca
L I K E , F O L L O W, S H A R E :
22
November 2016
CANADIAN MBA SCHOOLS
09
DEGROOTE SCHOOL OF BUSINESS, MCMASTER UNIVERSITY This Burlington school began in 1952, and offers students the opportunity to undertake four-month work placements in order to acquire real-life business skills alongside their studies. Incentives are also given to students in the form of an honors program for the third year, after which there is a 12-16 month internship option. Enviably huge companies like IBM, Microsoft, and Procter & Gamble are all internship partners. Courses cost $36,650.
www.degroote.mcmaster.ca L I K E , F O L L O W, S H A R E :
Caption to the image
23
LIST
08
UNIVERSITY OF ALBERTA Founded in 1908, the University of Alberta offers a very broad range of subject to study, with a heavy focus on leadership – there are now courses on women in leadership and applied leadership. The school has ranked highly in top universities lists for several years in a row, and has a huge economic impact on the area around it, bringing around $12.3 billion to Alberta every year. Courses cost $27,862.
www.ualberta.ca L I K E , F O L L O W, S H A R E :
24
November 2016
CANADIAN MBA SCHOOLS
07
SAUDER SCHOOL OF BUSINESS, UNIVERSITY OF BRITISH COLUMBIA Sauder was established in 1956 and is consistently within the top university rankings worldwide. Around 65-70 percent of students come from outside of Canada, and the school also hosts 15 specialist research centers. The courses offered by Sauder are more specific than most, allowing the student to pursue the exact career of their choice. The Vancouver school costs $43,883.
www.sauder.ubc.ca
L I K E , F O L L O W, S H A R E :
Caption to the image
25
LIST
06
DESAUTELS FACULTY OF MANAGEMENT, MCGILL UNIVERSITY Like Degroote, this Montreal school highly values real-world experience and ensures that all students undertake 10 days of international study as well as a paid internship. There is a Tokyo campus which gives overseas students the opportunity to travel to Canada and undertake some of their studies there. Desautels is the oldest school on this list, established in 1906, and the program costs $79,500.
www.mcgill.ca L I K E , F O L L O W, S H A R E :
26
November 2016
CANADIAN MBA SCHOOLS
05
HEC MONTRÉAL The courses at HEC are separated by theme, focussing on topics more specific to the student’s requirements. A five week consulting project at a relevant company is mandatory, and study features leadership and communication. Like the John Molson School, HEC offers a far cheaper rate for local residents: $7,500 for those in Quebec, and $15,300 for out-of-province applicants. HEC was established in 1907.
www.hec.ca/en
L I K E , F O L L O W, S H A R E :
Caption to the image
27
LIST
04
SCHULICH SCHOOL OF BUSINESS, YORK UNIVERSITY A younger school, beginning in 1966, this Toronto school boasts overseas campuses in Beijing and Hyderabad as it has a heavy emphasis on international business. The Schulich Strategy Field Study is mandatory and is a real-world consulting project that students can use to achieve necessary experience for their post-graduate lives. The course costs $70,710.
www.schulich.yorku.ca L I K E , F O L L O W, S H A R E :
28
November 2016
CANADIAN MBA SCHOOLS
03
IVEY BUSINESS SCHOOL, WESTERN UNIVERSITY Ivey started in 1922, and uses over 300 real scenarios to develop students’ skills and prepare them for their careers. Based in London, the school has been hailed by Bloomberg Businessweek as the best MBA school outside of the US. The program costs $82,000.
www.ivey.uwo.ca L I K E , F O L L O W, S H A R E :
Caption to the image
29
LIST
02
QUEEN’S SCHOOL OF BUSINESS, QUEEN’S UNIVERSITY The program at Queen’s focusses on the basics of the business world, including entrepreneurship and innovation. It has recently added a healthcare-specific module, and came in first place for Canadian Business’s 2014 MBA ranking. The school was established in 1919 and its course at Kingston costs $77,000.
www.smith.queensu.ca
L I K E , F O L L O W, S H A R E :
30
November 2016
CANADIAN MBA SCHOOLS
01
ROTMAN SCHOOL OF MANAGEMENT, UNIVERSITY OF TORONTO Canada’s top business school is also the most expensive at $95,100 for the full course. The Toronto school focusses on practical realworld business skills that anybody going into the sector will need, and offers a vast range of subjects for students to choose from – there are 14 available majors and over 90 elective modules. Established in 1950, the school consistently ranks within the top 10 Canadian MBAs, maintaining the best possible reputation.
www.rotman.utoronto.ca L I K E , F O L L O W, S H A R E :
Caption to the image
31
POISED FOR AN ERA OF RAPID EXPANSION MADE POSSIBLE BY I.T.
Written by John O’Hanlon Produced by Vince Kielty
A R B O N N E I N T E R N AT I O N A L
Arbonne International is a company that helps change lives: to enable it to do that effectively it has to keep ahead of the way people think and live their lives - and that’s where IT comes in
B
y the time Petter Mørck died in 2008, he had seen the business that he founded in 1975 grow from a small Swiss provider of personal health products to a global giant with its base in California since it moved there in 1980. Today Arbonne International employs a direct workforce of some 800. However, its multi-level marketing (MLM) business model, whereby sales are effected through a network of independent consultants, makes it a lot bigger than this figure suggests. More than 250,000 franchised or licensed agents, each running their own business with the support of Arbonne testify to the success of that model in the marketplace. Yes, a quarter of a million businesses in the United States,
34
November 2016
Canada, Europe, Australia and New Zealand are established to market Arbonne’s range of health and nutritional products, made from natural, botanically-derived and pure ingredients. These products are 100 percent developed by Arbonne’s scientists, the formulae are all Arbonne’s own, and 50 percent of these products are manufactured in the company’s own facilities. Mørck’s vision was to make safe, high quality and natural health and wellbeing products available to the average person at affordable prices, and ‘pure, safe and beneficial’ remains Arbonne’s ethical mantra. Servicing the orders from so many consultants, each with a greater or smaller number of his or her own customers, is probably the most business critical part of a
TECHNOLOGY
very large back office environment that includes all the usual business functions, as well as the supply chain for a complex manufacturing operation from procurement through to global distribution. Juggling all these balls is the challenge for Arbonne’s IT department, under
the leadership of CIO Guy Thier. Appointed in 2013, Thier had completed nearly 10 years as SVP at Bally Total Fitness where, combining the roles of CIO and COO he led an IT turnaround that saw operating costs cut by more than half. The two
about The idea to provide skincare products unparalleled in quality and effectiveness developed in Switzerland in 1975, when one man, Petter Mørck, together with a group of leading biochemists, biologists and herbalists, fulfilled his vision and founded Arbonne. Arbonne skincare products, based on botanical principles, became a reality in the United States in 1980 and are now shared throughout the world through the Arbonne network of Independent Consultants. Building on these same founding principles, the product line has since grown to include both inner and outer health and beauty products that are unparalleled in quality, safety, value, benefits and results. The wonderful thing about Arbonne is that it’s not just about great products, it’s also about great people. The Arbonne family is made up of thousands of individuals working to make their dreams come true. Through sales incentives and rewards, travel opportunities, a generous SuccessPlan and great products, Arbonne offers a unique opportunity that can help make anyone’s vision for the future a reality.
w w w. a r b o n n e . c o m
35
GLOBAL BUSINESS TRANSFORMATION PROFESSIONALS We are a boutique consulting firm removing roadblocks to enable improved performance by leveraging methods developed through extensive entrepreneurial and industry experience.
GBTP operationalizes business strategy for clients across industry, size and structure. STRATEGIC ALIGNMENT
We provide business advisory services to validate, optimize and operationalize your strategic plans.
PROJECT EXECUTION
We provide professional program and project oversight to manage risks and ensure on-time, on-budget delivery.
BUSINESS AND IT ASSESSMENT
Our assessment methodologies measure your business and IT operations performance, risk and velocity against your target business plans.
ACQUISITION & DIVESTITURE: BUSINESS & IT ALIGNMENT
We rapidly evaluate your current state and create strategic & tactical roadmaps aligned to address acquisition and divestiture activities.
BUSINESS RE-ENGINEERING &TRANSFORMATION
We create and action a target roadmap for business or IT process improvement to facilitate your strategic alignment in a manageable and progressive fashion.
SOLUTION SELECTION AND INTEGRATION
We provide End-to-End vendor and solution integration from business requirements, to RFP management and post contract governance support.
As an advisory firm, we work directly with business and technology executives to align strategic business initiatives to develop or enhance short and long term strategies. We provide project execution oversight and specialists to deliver projects on time and on budget.
CLIENT SPOTLIGhT
Arbonne International ThE GLOBAL BUSINESS TRANSFORMATION PROFESSIONALS (GBTP) STORy Keith Chiavetta, GBTP’s President and CEO, saw an opportunity during a tough 2009 U.S. economy, to create a boutique management consulting firm providing both business and technology consulting. His vision included a small-team approach offering senior advisory and consulting services at a competitive rate. Today, as then, he focuses on providing significant value through establishing a trusted advisor relationships with an entrepreneurial spirit that extends well beyond simply making recommendations or providing advice. Over the past eight years GBTP has developed into a global advisory and consulting company with six core offerings. Clients range from start-ups to international organizations with thousands of employees. We serve both private and public firms, including many private-equity owned concerns and not-forprofits. Our approach balances “big firm” processes with an entrepreneurial mindset. Our team is a dedicated group of senior professionals from multiple industries. Their significant experience includes strategy, architecture, operations and IT consulting. We are proud of their work and the passion they have for excellence and client service.
When Guy Thier, CIO of Arbonne International, joined the company’s executive team in 2013; Keith Chiavetta answered Guy’s call to help implement his vision. Keith understood Guy’s approach to aligning IT with the business. Guy had brought Keith on at his prior firm to help implement a customerfocused IT strategy, anchored by innovative technology. “Keith has long understood that a strong IT professional must understand every aspect of the business in order to be a good partner” says Guy.
The GBTP team works side-by-side with my functional leaders, focused on getting the job done. – Guy Thier
Over the last several years GBTP has been involved with Guy and Arbonne in several key initiatives focusing on IT strategic alignment, project execution, solution integration and developing innovative technology solutions. Guy states, “The GBTP team works side-by-side with my functional leaders, focused on getting the job done.
If you are interested in having a discussion with one of our professionals, please contact us via the link below.
www.gbtpllc.com
info@gbtpllc.com
Guy Thier, CIO Guy Thier brings approximately 20 years of CIO experience to Arbonne from public, private and private equity ownership business models with extensive experience in both IT strategy development as well as grass roots execution of complex projects. He joined Arbonne from Bally Total Fitness, where he served as Senior Vice President (SVP) and Chief Information Officer (CIO) for 10 years, overseeing successful IT planning and execution, while achieving operational efficiencies for the $1 billion, 400-club organization. Previously, Guy led the IT functions at LINC Capital and Chernin’s Shoes.
38
November 2016
businesses operate on very different models, he admits; the one selling a service, the other a product; the one located in buildings, the other having very few physical assets. Nevertheless he saw it as a natural progression: “I wanted to work in an organization that really helped people to improve their life and their health.” With manufacturing operations and supply chain focused on stability and efficiency while sales and e-commerce require great flexibility and user experience, as well as the demands of product development, R&D and administration, it is like being the CIO of several companies at once, he adds. Reporting to him directly are some 50 Arbonne IT specialists, while the team is augmented to about 150 people when partners working on the Arbonne account are included. As well as the USA, he has people working for him in India, Hungary and other European countries. PARTNER POWER Back in 2013 the problem that cried out to be addressed may be familiar
TECHNOLOGY
“I wanted to work in an organization that really helped people to improve their life and their health” – Guy Thier, CIO
w w w. a r b o n n e . c o m
39
A R B O N N E I N T E R N AT I O N A L
to CIOs. “In common with most MLM companies, a large percentage of sales occur toward the end of the month as people try to reach their targets, improve their ratings or maybe earn an incentive,” Thier reveals. “20 percent of our business comes in on the last couple of days in the month and the e-commerce platform we were using could not handle the spike in ordering. It would shut down, and everyone was very frustrated.” To address this
40
November 2016
problem, a partnership was entered into with Thatcher Technology of Naperville Illinois, a specialist in MLM software, comprising the purchase of their e-commerce platform, genealogy and compensation management as well as some back office functions to support the call center. Following nearly two years of intensive customization and modification to meet Arbonne’s business needs, the new platform was
TECHNOLOGY
launched in March 2015. “We have a very tight relationship with Thatcher,” says Thier. “We have a daily call where we go over new requests and issues with their CEO and product development manager, so we really do work as a single virtual team involving key vendors, my own IT team and Thatcher.” Among the key partners in this virtual team is Keste, Arbonne’s Oracle partner. Keste’s role was to develop the integration between Thatcher, EBS and some other third party providers of functionality such as credit card processing, address identification
and verification and sales tax. Keste was recognized as the Arbonne IT Strategic Partner of the Year for 2013 and continues to serve as a consulting partner. Throughout this transformation journey Thier relied on a few tried and tested consultants he had worked with over the years, singling out for special mention Keith Chiavetta, with Global Business Transformation Professionals (GBTP) who came in at an early point to help prepare the IT organization for change and to subsequently drive it forward. Also valued was the input of Jim Jacoby and Laurie Martinelli whose input into the app design process from the point of view of customer experience was invaluable. Arusha Goyal, CEO of Goyal Consulting Group, has also been instrumental in helping Arbonne expand internationally with a successful launch of New Zealand and Taiwan. Arusha has led dozens of works streams supporting all aspects of expansion including product development, field development, customer service and technology work streams.
w w w. a r b o n n e . c o m
41
WE ARE EXPERTS IN: Cloud computing IT modernization Multi-point integrations Complex e-commerce solutions Complete lifecycle order management
A R B O N N E I N T E R N AT I O N A L
INTERNATIONAL EXPANSION The new platform, apart from stabilizing sales from month to month so the system could cope with rapidly fluctuating levels of business traffic and support sustained growth, was selected to allow Arbonne to expand internationally. “We wanted additionally to be able to open for business in non-English speaking countries,” says Thier. In anticipation of exponential growth into new geographies, the greater part of the – Guy Thier, CIO e-commerce platform has been moved to Amazon Web Services (AWS), a world-embracing suite of cloud-computing services that make up an on-demand computing platform. “Our level of business already scales fivefold at the end of the month, and with AWS within minutes we add five times the server capacity. The advent of cloud has been a
great addition to our infrastructure,” Thier adds. AWS Auto Scaling now ensures that no matter how large or unexpected the spikes in sales demand may be capacity will be automatically increased to meet them. The new system has delivered increasingly smooth month-end closes, the CIO reports, clearing the way for a rapid transition to introducing far greater flexibility in the market using the latest tools. “We began working towards a future where you are not tied to a website or to a laptop. These days there are many more innovative and creative ways of creating a shopping cart off a website whether with mobile device, Amazon Echo [the voice activated virtual assistant already available in the USA and being launched in the UK this year], Apple TV or a kiosk solution where you can have the personalized shopping experience of your choice
“We try to build things in a way that you don’t need training”
44
November 2016
TECHNOLOGY
but feeding the same compensation engine, the same genealogy structure. It’s letting people shop wherever they are, on whatever device is to hand, and of course it opens up to a broader range of potential consultants.”
benefits they have personally had from using the products – that’s how most of them start – and give them the twin opportunities of access to the products or of joining Arbonne. For them the company hosts more
Arbonne consultants are already used to doing business in innovative ways. Some are intense users of social media. Typically they share with family, friends and followers the
than 80,000 websites, and all the orders placed are processed through those consultants. “We also provide them with management tools to run their business,” says Guy Thier, “so
w w w. a r b o n n e . c o m
45
Connecting In A Connected World
Today, every business needs to connect with customers and companies around the globe. To help you compete, we provide the ability to track and transform any widely dispersed and dynamic sales organization, driving sales productivity and recruiting effectiveness, while increasing retention. Visit us today, to see how our innovative technology, proven methodology and concierge support can enable you to drive sales, recruit new distributors and motivate your sales force around the world.
www.thatchertech.com
TECHNOLOGY
each will have hundreds or even thousands of people below them. We have reporting tools that let them know how well their people are doing, and communication tools so they can e-mail their team.” He is also developing toolkits to help consultants purchase products on platforms like Facebook and Pinterest. MULTILINGUAL, MULTICHANNEL So far, all Arbonne’s business has been conducted in predominantly English, French or Spanish speaking regions, however this year the company is opening for business in Taiwan. Translation from and into Chinese has been a barrier. It’s perhaps simple enough to render text in both languages but when it comes to interaction it gets a little harder, Thier confesses. “We have software that will take a person’s address in Chinese and convert it to English or vice versa. And we have in-line translation tools in place so that any user can choose whether to see material in Chinese or in English.” As people choose to shop in different ways it’s a priority for
w w w. a r b o n n e . c o m
47
Number of Employees
800 direct
250,000 consultants
Click for more
ANALYZE
UNCOVER
BRIDGE
people process technology
find the problem
strategize solutions develop a plan source team deploy
GLOBAL EXPANSION STRATEGY FIRM SPECIALIZING IN TECHNOLOGY At GCG, we are experts in the unique characteristics of countries around the globe and utilize our framework for innovative solutions to realize expansion benefits. We partner with your team and provide knowledgeable guidance on strategy, technology and processes to overcome new market challenges. CONTACT ARUSHA GOYAL:
t: 847.452.1148
e: arusha@goyalconsultinggroup.com www.goyalconsultinggroup.com
Designing A More Human Centric Experience For Software, Services and Communication s
TECHNOLOGY
Arbonne to create new channels. For example to make it easier for consultants to access their figures an Amazon Echo version of their portal will soon be released so they can simply ask for the statistics and receive a spoken answer – soon it will be possible to do that from a smartphone too. Asked whether frequent upgrades don’t mean a lot of training, Thier replies that these apps are designed to be intuitive, “We try to build things in a way that you don’t need training. The first mobile app we launched in May was provided the same information as the internet portal for consultants
and we had zero training. In the first week we had 20,000 downloads of the app; now it’s running with about 35,000 users and not a few problems have been reported.” The company is poised for an era of rapid expansion, made possible by IT. For six years it had not moved into any new territories because of technology and language hurdles: now it is planned to move into at least five new countries over three years. The infrastructure is scalable, the model proven, and Petter Mørck’s vision of passing a legacy to the great great grandchildren he will never know personally is becoming a reality.
w w w. a r b o n n e . c o m
49
Lean design and construction methodologies Written by Catherine Rowell Produced by Tom Venturo
THE UNIVERSITY OF CHICAGO MEDICINE AND BIOLOGICAL SCIENCES
Marco Capicchioni, Vice President for Facilities, Planning, Design and Construction for the University of Chicago Medicine & Biological Sciences, discusses how the extensive construction, renovation and improvement works to current healthcare facilities on campus, in addition to the implementation of smart technologies, have enabled the delivery of first-class care whilst remaining ahead of the game
A
ppointed in 2014, Capicchioni has ensured the ongoing success of an array of projects currently in progress at the University. His extensive experience at Detroit Medical Center and the Henry Ford Health System has strengthened his passion in the construction and renovation of health facilities, ensuring ongoing projects on site will exceed the customers’ expectations and are delivered as quickly as possible. Two recent projects has ensured the care provided at facilities on campus is of a high standard. The
52
November 2016
Orland Park ambulatory facility, situated off-site, will be opening at the end of 2016, enabling the delivery of high quality care for patients based in the south and southwestern suburbs of Chicago. Also, the recent infill of the third and fourth floors at The Center for Care and Discovery situated on campus, with upgraded patient units and embedded observation unit, has enabled observation patients to be placed within one designated area rather than be dispersed throughout the hospital. In addition, the labor and delivery project at the
CONSTRUCTION
Comer Children’s Hospital on campus has provided increased advantages to patients and their families with the introduction of enhanced medical technology. “We used to have a lot of electronic devices in patient rooms, but they weren’t really smart devices. Now, virtually every device that’s in a room, including the patient temperature thermometer is all integrated into the informatics system for maintaining the Electrical Medical Record for the patient,” comments Capicchioni. There have been significant advancements within medical technology, yet this has provided complex challenges with regards to construction and design. Not only is it now imperative for workers to ensure embedded technology is smart, the Wi-Fi
©2014 POWELL PHOTOGRAPHY, INC.
Marco Capicchioni Vice President, Facilities Planning, Design and Construction
“We really want to ensure it is a state of the art facility which is able to be operated at a reasonable cost and also help support our sustainability efforts” – Marco Capicchioni, Vice President, Facilities Planning, Design and Construction
w w w. g i v e t o m e d i c i n e . u c h i c a g o . e d u
53
The largest woman owned ventilation contractor in the Chicago region
PROVIDING COMPLETE VENTILATION SOLUTIONS Since 1977, Air Design Systems, Inc. takes pride in being one of the most innovative and qualified sheet metal/ HVAC contractors in the United States. We are the largest woman owned ventilation contractor in the Chicago region. At Air Design Systems, we feel that staying innovative requires having the right people in place. We understand that maintaining the highest level of quality creates the foundation for a successful project. We also believe that safety is our number one priority.
READ MORE 12011 91st Street, Willow Springs, IL 60480 | ph: 630.654.1900 | www.airdesignsys.com
CONSTRUCTION
has to consequently manage this increased load. All remaining wires are therefore placed within the ceiling space. Capicchioni explains: “It’s changed the way we look at the wiring of rooms and design of the buildings. Not as many devices
and integrated effectively. Building Information Modelling (BIM) 3D has been utilised within all projects in order to eradicate any potential issues and has allowed workers to envision whether these technologies can be routed
Orland Park Exterior Construction
are now plugged in or hardwired to the wall for information, mostly everything has gone wireless, which means it’s very important that the antenna system to capture this information is robust, secure and capable”, in addition to ensuring all devices are regulated
alongside vital electrical, water and emergency works. “The ceiling space is a precious resource – not only to get all the equipment into the ceiling installed, but also for servicing of those items, making sure that valves are accessible,” Capicchioni adds. BIM 3D
w w w. g i v e t o m e d i c i n e . u c h i c a g o . e d u
55
Congratulations!
University of Chicago Medicine & Biomedical Sciences
Creating Excellence With completion of
The Center for Care and Discovery Inpatient Build-out Floors 3 & 4
Photography Jon Miller Hedrich Blessing
FOR INFORMATION CONTACT www.kahn@akahn.com
CONSTRUCTION
modelling has become an essential tool for not only the construction and design teams, but also with the team’s subcontractors, signifying its importance within project work on site and completion of project’s against set timescales. Capicchioni continues: “Utilising that ceiling space and making sure each layer is designated for a specific purpose and making sure there aren’t any problems, where
we are trying to get ductwork through and trying to get another kind of service through - we require BIM 3D modelling to be utilised.” When undertaking vital work on site, the health and safety of workers and patients is paramount. Whilst the teams work in collaboration with the infection control department situated on campus to ensure all standards are maintained, the construction and design team also extensively
UCM-Labor and Delivery-LDR Room
w w w. g i v e t o m e d i c i n e . u c h i c a g o . e d u
57
McCauley
MECHANICAL CONSTRUCTION I N C.
McCauley Mechanical Construction Inc. 8787 S. 78th Ave. Bridgeview, IL 60455-1862 708.233.0606 Ph 708.233.0283 Fax mccauley@mccauleymech.com
www.mccauleymech.com
Established in 1926, with four generations of mechanical experience, McCauley fabricates, installs and services piping, sheet metal, and equipment systems for the Commercial, Industrial and Institutional sectors; including hospitals, medical ofďŹ ce buildings, clean rooms, data centers, energy conservation retroďŹ ts, education, hotels, multi-family residences, food and beverage production, a nd metal manufacturers.
CONSTRUCTION
plan all routes to move the required rooms in advance - which will materials. Capicchioni adds: “This actually be in their final location allows them to put in place airlocks and do a final test fit to make sure between the construction and non- that everything all fits in place”, construction zones to make sure Capicchioni explains. In completing that we have pressurisation to keep these proto-types, the teams are the dust and other able to confirm contaminates whether they have from the incorporated all construction site patient needs, from getting into in addition to the occupied factoring in cost environment.” and logistics. A lean approach To support is implemented the teams and at the early ensure they are stages in order to updated at all ensure positive, times, a monthly collaborative newsletter is working – Marco Capicchioni, Vice President, sent internally, in relationships, with Facilities Planning, Design and addition to alerts the undertaking of Construction which are used to critical flow paths inform workers of and processes to effectively reduce any potential changes to access on the impact on health services. A site. Once a week, senior leaders series of kaizen events and triare informed of any key issues storming is undertaken in order to regarding the pace of construction support the initial design stage. and any changes in timescales. “As we build the facility we Capicchioni acknowledged typically build a few proto-type that not only is it important for
“We are looking at all aspects, not only the type of care, integration of research, but also how operationally efficient it will be”
w w w. g i v e t o m e d i c i n e . u c h i c a g o . e d u
59
We are proud to be working with The University of Chicago Medicine and all of the fellow tradesmen bringing projects to life. Our vertical integration and trusted single source team of designers, estimators, fabricators, installers, and project managers positions us as the strongest Interiors contract team in the healthcare and hospitality industries. Visit interiors.standardtextile.com or call 800.999.0400 to learn more.
Automotive Banking Casinos
Corporate Entertainment Government
We are a leading contract furniture dealer + proud partner of University of Chicago Medicine.
henricksen.com
Healthcare Higher Education Hospitality
Professional Services Senior Living Technology
K12 Education Laboratory Media
workers to hear any updates, as their business evolves they need to be able to hear their workers’ input. To this effect, if employees have any concerns regarding any current work, the University enables workers to call a hotline number in order to stop work or discuss any developing issues. With all the projects which are currently underway or in the pipeline, there is an increased focus on the sustainability and long term benefits, not just in the region but as a whole. “We really want to ensure it is a state of the art facility which is able to be operated at a reasonable cost and also help support our sustainability efforts,� Capicchioni says. The 1,800-space car parking deck, built in 2015 has also reduced parking difficulties on campus and has been designed to incorporate a loading dock for the site, where Capicchioni acknowledged all main supplies go in and all trash and other waste products exit. Work has also recently commenced on the construction of a fifteen thousand square foot
61
THE UNIVERSITY OF CHICAGO MEDICINE AND BIOLOGICAL SCIENCES
UofC Health Corridor Waiting HB(2)
Leave traditional construction in the dust.
Healthcare learning environments constantly evolve. Technology, teaching methods and enrollment levels all take a toll on the physical space over time. But there’s a smart way to adapt: DIRTT. By creating flexible and highly functional spaces, DIRTT’s interior construction solutions are future-proof. Contact Kristen Eboh at keboh@dirtt.net
CONSTRUCTION
ambulatory facility within the South Loop of western suburbs of Chicago, in addition to an emergency department within the parking deck on campus,
Hospital in a five-year project. Although in the early visioning stages, such an expansive project incorporates not only complex construction challenges, but also
UCM-Labor and Delivery-Main Entry
which is set to complete at the end of 2017. In addition, the oldest facility on campus, the Mitchell Hospital, is set to be renovated and transformed into a Cancer Centre
recruitment and technological advances. Capicchioni explains: “We are looking at all aspects, not only the type of care, integration of research, but also how
w w w. g i v e t o m e d i c i n e . u c h i c a g o . e d u
63
Elevating the Human Experience of Care Herman Miller is a 100-year-old-plus company that places great importance on design, the environment, community service, and the health and well-being of our customers and our employees. Innovative ways to improve the performance of our customers’ organizations have become our hallmark. Visit www.hermanmiller.com
Creating a Space that Brings Out Your Best Your furniture is an asset. A chair isn’t simply a place to sit, and a desk isn’t just a work surface. The right selection today can create a sense of place, enhance productivity, and improve employee satisfaction, engagement, and retention far into the future. Call 847-325-1118 or visit www.interiorinvestments.com
SMARTER. GREENER. TOUGHER. Since the start in 1950’s, Upofloor has revolutionized our view of traditional public space flooring – focusing on creating smart flooring materials that are environmentally friendly, strong and easy to maintain.
W W W . SP A R T A N S UR FA C E S . C O M
CONSTRUCTION
UofC Health Corridor HB(1)
operationally efficient it will be.” “It’s hard to foresee, as technology marches on, what that technology might be so we’ll be working with a futurist to help us to understand what might be some of the new things in the pipeline.” The University has also had to factor in the construction boom in Chicago and consequent lack of trained union workers. Capicchioni explained: “We’ve been having sustained growth of
over six percent for the last five years and so we typically start the day off with 100 percent of our beds filled.” However, it is clear that the completion of the array of projects on campus will have long-term benefits for the population of Chicago, with the implementation of key technologies and sustainable initiatives which will drive the projects forward and ensure the delivery of world class care within the region.
w w w. g i v e t o m e d i c i n e . u c h i c a g o . e d u
65
Written by John O’Hanlon Produced by Tom Venturo
CONSTRUCTION
HTS Engineering
– keeping its cool
For the industrial and commercial heating, ventilation and air-conditioning (HVAC) installations that sit at the core of every major construction across North America, the go-to partner is HTS Engineering and its sister company DXS. Both are making a big impression in New England
T
here’s no hotter engineering sector (forgive the pun) than HVAC. With inexorable pressure on new building construction teams to deliver sustainable solutions and ease of maintenance no project can be started without the involvement of specialists in environmental control. The North America air conditioning systems market alone is worth some $30 billion. Air conditioning is becoming one of the most important facets of social infrastructure, indispensable
to providing people with good health and a culturally advanced lifestyle, as well as to fueling economic development. At the same time, air conditioning uses large amounts of energy. One of mankind’s greatest challenges will be to minimize the rise in energy consumption accompanying economic development, especially in the rapidly growing emerging countries. Now that the USA has ratified the Paris Climate Change Agreement the impetus toward energy efficiency in
newengland.htseng.com
67
HTS ENGINEERING
the climate control industry will undoubtedly intensify. Key market players in North America include global manufacturers like Carrier Corporation, Daikin Industries, Ingersoll Rand, JCI, Trane and others. These multi-billion dollar corporations go to market via representative companies, of which HTS Engineering is a dominant name right across North America. With annual revenues in the region of $350 million HTS has grown since its foundation in 1992 through a strategy of entrepreneurial ownership: there’s a global ownership group of individuals who have a stake in each of the company’s 16 locations across Canada and the USA, and regional principals who have a share in their own territory. This structure gives HTS a unique focus on success and a single focus on creating success for all those involved with cooling and heating decisions – from selection, design and purchase, to installation and maintenance.
68
November 2016
Mike Donovan President
Mike Donovan, a 2009, 2010 and 2015 Ernst & Young Entrepreneur of the Year finalist, is the president and owner of HTS Texas. In this role, he has incorporated market-changing, innovative concepts and personalized customer service, enabling the company to grow from start-up to gross $163 million in 2015, receive Houston Business Journal’s Fast 100 award in 2010 and 2014, and Houston Chronicle’s Best Workplaces Award in 2010 and 2011.
The most active HVAC market and hence one of the largest HTS business is Texas. President of operations there, and a member of HTS’s global ownership group Mike Donovan epitomizes the entrepreneurial spirit of the company, having been a finalist in Ernst & Young’s Entrepreneur Of The Year program in 2009, 2010 and 2015, cited for the marketchanging, innovative concepts and personalized customer service he introduced, enabling HTS Texas company to grow from start-up in 2002 to gross $163 million in 2015. The Texas economy, he explains, has done better than most though the global recession, though
“As a company we are very divested across sectors from healthcare, higher education, government and judicial and many others” – Mike Donovan, President
We’ve been there. You may not know our name, but you've felt our work. Across North America, Haakon is the leader in custom air handling units.
Visit us at www.haakon.com and www.htseng.com or call 604.273.0161 to find your local sales agent.
CONSTRUCTION
Dan Senese Principal
Dan Senese graduated with a Bachelor of Applied Science in Civil Engineering from The University of Waterloo. After working three co-op terms and one full year with HTS Engineering in Toronto, he joined HTS New England in Boston. Dan has over 20 years of industry experience, has been an ASHRAE member for over 9 years. He has extensive knowledge of HVAC equipment and systems with unparalleled attention to detail. Dan has solid relationships with contractors, engineers and owners and has proven success selling in each category. In late 2013, he stepped into a manager role before becoming a Principal in 2016.
Houston itself has felt the effects of the dip in oil prices. “Judging by non-residential construction starts in Texas I’d say the market is now stronger than in 2009. As a company we are very divested across sectors from healthcare, higher education, government, judicial and many others, so if someone isn’t starting an office building there is always something else going on. And HVAC demand is stabilized by the sheer amount of replacement that has to be done in what is a very mature market. Don’t forget that in Texas, if you don’t have air conditioning you don’t have a business!” Another factor in HTS Engineering’s success has been the exclusive product rights it holds in many key markets to sell the products of the world’s largest air conditioning manufacturing company Daikin Industries. Daikin, with annual sales of around $18 billion, has a massive product line, allowing HTS to provide custom-built installations for its clients. With exclusivity in most
newengland.htseng.com
71
HTS ENGINEERING
of the Texas and Ontario markets, a recent restructuring of the organization in the important New England business has given a huge boost to that business too. Key to growth in New England To hear about that we jump from Houston to Boston. Dan Senese is one of the most experienced engineers in the business having spent more than 20 years with HTS in Canada and the USA and now one of four Principals who lead HTS
New England. This company was highly respected in the industry by consulting engineers and contractors, but growth at the rate of Texas had eluded it, he admits, because it remained something of a boutique business focused on highly specialized, bespoke products. “We did not have the breadth of more standardized products available from the ‘big four’ manufacturers.” While it was representing a number of very high-end manufacturers
Setting a new standard for HVAC products, services, and expertise. Congratulations to HTS and Stebbins-Duffy on forming a powerhouse to serve HVAC customers in New England. Daikin is proud to have HTS New England as the local Daikin equipment sales representative. Our long-standing partnership makes us confident that this team will deliver great outcomes for building owners, engineers, and contractors. Call (978) 977-9911 or visit http://newengland.htseng.com/ For more on Daikin Applied, visit www.DaikinApplied.com ©2016 Daikin Applied. All Rights Reserved.
CONSTRUCTION
such as Haakon Industries, he added, and cross-pollination HTS New England was finding of industry knowledge between that its engagement with some the two companies could create major clients tended to be more a whole new level of expertise. intermittent than continuous. Significantly for HTS, StebbinsBearing in mind what we have Duffy was the exclusive New said about the importance England representative of Daikin of a relationship with a major products, so the fit was perfect. manufacturer Agreement such as Daikin, was reached on it was strongly August 15, and felt that HTS the following day needed a broader the news was product portfolio released to the if it was to achieve industry. HTS significant growth. New England Towards the is now led by end of 2015, HTS former StebbinsPrincipal Jeff Duffy VP Emery Ritchie and Peter – Dan Senese, Principa George together Foss contacted alongside three John Duffy, president of the 50 HTS New England principals: year old HVAC company StebbinsPeter Foss, Jeff Ritchie, and Dan Duffy. Duffy was receptive to Senese. The market has already the idea of a merger, observing responded very positively, says that together the companies Senese. “We had already shared deliver results that far surpass the business plan with suppliers to what they could accomplish as both companies. Manufacturers like separate entities. There’s very Daikin and Haakon aspire to be with little overlap in account coverage, a representative that dominates in
“Manufacturers like Daikin and Haakon aspire to be with a representative that dominates in its territory”
newengland.htseng.com
73
#APEX
#Deliveringrealsuccess #EVAPCOOLEDCHILLERS #MADEINTHEUSA #STEAMCOILS #AiRCOOLEDCHILLERS
#WATERCOOLEDCHILLERS
#RAECorporation #PUmpingsystems
www.raecorp.com
#VALUEthatdifferentiates
Specialists in
FAN ENGINEERING AND POLLUTION CONTROL EQUIPMENT • FRP Centrifugal and Inline Exhaust Fans for Industrial Use
• Heavy Acid Laboratory Scrubber Fume Hoods
• Steel Centrifugal and Inline Exhaust Fans for Industrial Use
• Wet Scrubbers
• High Plume Laboratory Ventilation Systems
• Mist Eliminators
• Induction Exhaust Stacks
• Perchloric Acid Ventilation Systems
1275 Crestlawn Drive Mississauga, Ontario, Canada, L4W 1A9
(905) 625-9164
sales@plasticair.com
www.plasticair.com
CONSTRUCTION
its territory,” he says. They were ready and willing to take on the tasks of product familiarization and training that lay ahead. After all, he points out, they were seeing an instant doubling of the sales force promoting their products. Next came the difficult task of dividing the accounts to focus on contracting clients on the one hand and consulting engineers on the other. In New England HTS had since its foundation in 1997 employed hybrid sales people, who called both on consulting engineers who design the system and mechanical contractors who purchase and install the equipment. “They are well rounded sales people but spread a little too thin. They would be selling a system then getting involved in project management while it was installed. But every minute you spend on project management is time you are not devoting to digging up new business!” The sales people from both companies were interviewed to see which path they wanted to take.
Out of the four principals it was seen as sensible to have two on either side. Emery George and Dan Senese were deeply involved on the contracting side, Peter Foss and Jeff Ritchie both had an engineering background, so the first two relinquished their engineering accounts and Foss and Ritchie their contracting accounts. “We all manage fewer accounts now, but have much more to sell, are more focused and more relevant to our customers.” With a full suite of products and the power of Daikin the merged entity can become involved in many more projects too. Immediately after the merger was announced, the principals started to call on their clients to introduce the new sales teams and present to them the advantages the merger offers. “I wanted to thank the partners for their support over the years, and assure them that I am not going anywhere, but remain part of the leadership team and want them to know I care they are in good hands.”
newengland.htseng.com
75
HTS ENGINEERING
Always innovating One of HTS’s great strengths is its in-house IT development team, which has created the TRAX software, a custom made solution that runs its back office functionality and ERP. Part of the logistics merger will be to migrate Stebbins-Duffy to this platform. “TRAX places us head and shoulders ahead of the rest of the industry,” says Mike Donovan. “The next release will be when we go 76
November 2016
online with our project management module so our customers can track progress: that is a really neat feature and it’s rolling out in 2017. All of our software is in the cloud, with data center backup in Toronto and other locations.” The HTS story is not complete without mention of its sister company Direct Expansion Solutions (DXS) founded in 2007 to develop a dedicated team of specialists to address the rapidly
CONSTRUCTION
Direct Expansion Solutions growing Variable Refrigerant Flow (VRF) segment of the air conditioning industry. Daikin Variable Refrigerant Volume (VRV) equipment and VRV technology was very popular in Europe and other advanced economies like Australia but had not really impacted the USA till Daikin purchased McQuay, in 2006. “We wanted to create a business that sold the technology Daikin had brought in, so that we could become the go-to representative company for VRV,” explains Senese. “DXS is now that company, with a specialist team focused on selling a single product and doing it well. We have become very good at that!” From its start in Central Texas, DXS grew in Southeast and North Texas with offices in Austin, Dallas, Fort Worth, Houston and
San Antonio. In 2012 it opened an office in Toronto and earlier this year the company launched operations in New England. As we have seen, a lot has been going on this year, and it couldn’t better time to celebrate these changes. On November 3 HTS/StebbinsDuffy and DXS and Daikin will be hosting an industry-wide event to introduce their clients, their clients’ clients and the entire construction and maintenance community to meet the new teams. It will be a hands-on event, promises Global Marketing Director Ashley Heisler, with a chance to view the latest advanced technology from Daikin including VRV “We want to thank all our stakeholders and take this chance to let them learn from industry experts, while celebrating with a live band, great food, cold drinks and of course giveaways and door prizes!”
newengland.htseng.com
77
SOLVING THE IMPOSSIBLE Written by John O’Hanlon Produced by Tom Venturo
CONSTRUCTION
ONE DATA CENTER SERVICE PROVIDER DECIDED THERE WAS A BETTER WAY, SO HE SET OUT TO BUILD IT
A
s anyone knows who was in business before then, the beginning of the 1990’s was effectively a pre-internet era. Nothing was standardized and few people foresaw the transformations that would take place in the ensuing two decades. All the more remarkable then that a young high school student in Columbia, Maryland, had the vision to start up a business that today owns and operates more than 800,000 square feet of data center space, supporting it with its own private fiber network of more than 10,000 miles. Deepak Jain was just 17 when he founded AiNET, in 1993. Mark Zuckerberg would have been nine. “There were opportunities in the market place that made sense to me at the time,” he explains modestly. These opportunities were around the area of
dial-up internet access, which some of us remember with no affection at all — but AiNET was one of the first providers, and people had to have it. “I understood the direction I wanted to take — so I managed to borrow $300 and set up in my mother’s basement.” To explain this level of entrepreneurship and confidence at such a young age Jain thanks his parents. “I had used a computer since I was six or seven because my parents did not want to keep buying me toys. They handed me a computer and some books and said if I could learn how to use this I could write my own games. That sums my childhood up in a nutshell!” Without formal IT or business training, it was the potential of technology to change lives that fascinated him: even his business was initially conceived as way to pay for an absorbing hobby, and when the time
w w w. a i . n e t
79
Deepak Jain, CEO came he chose to follow a BA course in Molecular Biology at Johns Hopkins University, graduating in 1997. With his background, it came out of the blue at him that he would be nominated 2001 Young Entrepreneur of the Year by EY. A habit of growth These were times of extraordinary growth for the new company. In a couple of years it had evolved into a pure ISP provider, a service obtainable from very few companies at that time, and had attracted some international clients. “We grew fast, doubling from month to month, but
80
November 2016
Deepak Jain is the Founder and Chief Executive of AiNET. Since founding AiNET in 1993, Mr. Jain has led it through explosive technological and financial performance milestones while maintaining a strong commitment to best-inclass customer service. Mr. Jain’s management style emphasizes individual thought leadership and ground-up problem solving. His energy has infused AiNET’s unique performance-based culture. In the year 2001, he won the prestigious Entrepreneur of the Year award for his work with AiNET. Mr. Jain and the AiNET team are committed to farsighted solutions to the challenges facing enterprises and government at all levels. Today, these include the areas of security, storage, energy efficiency and paradigmshifting cloud computing, Mr. Jain is the author of over a dozen pending domestic and international patents in the areas of power systems reliability, data center efficiency and green energy. With over 12 issued to his name and 90 patents pending worldwide Mr. Jain has worked to solve challenges throughout the electrical engineering, data center, mechanical engineering and telecommunications area.
CONSTRUCTION
the breakthrough came when I had a call from Mark Cuban and Todd Wagner.” Cuban and Wagner founded Audionet in 2005, which morphed
small then. There was not as much bandwidth available as they needed: Yahoo! and other businesses were growing very fast, doubling and tripling
“We will never rest on our laurels, and will always be our own strongest critic” – Deepak Jain, CEO into Broadcast.com three years later and was bought up by Yahoo! in 1999 for $5.7 billion. “We engineered their solution and supported them with our servers right up to the takeover.” The relationship with Cuban and Wagner shifted AiNET into a space that did not exist at the time, but foreshadowed its growth into becoming one of the world’s foremost data center providers. “We grew through IBM and GE and Lockheed Martin and other companies. We were getting huge requests from these large companies, yet the internet was very
their requests to us every few months.” He soon found he could no longer meet this demand simply by adding more servers. “The company had grown on its IP services platform, but to do that well you must meet very specific structure and infrastructure requirements. The machines need to be running 24/7. They need to have good power, good cooling, good physical security, and be robustly built. We were retrofitting existing buildings to make that happen.” Renting and managing space in third party data centers was a short term
w w w. a i . n e t
81
Engineering & Construction
Directional Boring Open Cut Trenching Concrete Duct Bank Aerial Construction Innerduct Placement Cable Placement Design Services
Permitting Services Consulting Services Project Management Turnkey Solutions SHA TrafďŹ c Control Longhaul Excavating Services
Fiber optic, copper and electric networks are designed to ďŹ t our clients' needs today and into the future. No matter your network needs, you will receive superior quality and customer service.
Over
20 years
of engineering and construction experience.
7606 Energy Parkway Baltimore MD 21226
Phone: 443.702.7700 Fax: 443.702.7801 Email: info@peimd.com
LEARN MORE ABOUT US www.peimd.com
CONSTRUCTION
solution to the capacity need, but he found that the lack of reliability and control was not good enough to satisfy his commitment to his customers. AiNET set out a policy to acquire or build its own facilities and this it has followed since 2003. Flexible power AiNET purchased and updated its first data center in 2003, then started to build its own facilities. In the process, he realized that most of
the standard construction practices were simply wrong. Even those MEP (mechanical, electrical and plumbing) engineers who specialized in data center construction were failing to understand that standard building trade approaches were not working in the best interests of the end users. “The first thing they do is to figure out the maximum power it will ever need and customize the hardware to cope with that. That means a huge investment before the
Check out Baltimore’s Largest Data Center
“One Market Center”
w w w. a i . n e t
83
AiNET
building can take in its first customer server.” Over a decade, he argues, the requirements will dramatically differ from the projected design, and customer need will no longer be met. AiNET’s approach is much more flexible. InfraGuard, based on a portfolio of patents, is 25 percent more efficient than competing systems. Most recently, on June 17 this year the system added a patent from the State of Israel to awards from Europe, Japan and the World Intellectual Property Organization (WIPO). InfraGuard could be developed in the face of received wisdom in the industry because AiNET is a vertically integrated owner, operator and builder of data centers. “The standard design for a data center is to have two power feeds from the utility,” he explains. “Either one should be able to power the whole building and if both fail you switch to generators – these have to be connected and synchronized, a risky and complex process. Our design means that you don’t have to synchronize – each system iws independent. Our design does away with the single points of failure (SPOF)
84
November 2016
CONSTRUCTION
“There were opportunities in the market place that made sense to me at the time” – Deepak Jain, CEO
w w w. a i . n e t
85
AiNET
that abound in the traditional model.” It was further made possible by the company’s culture of innovation, the acknowledgment that what works today may not work tomorrow. “We’re always questioning our own processes and constantly asking how we can make them better, even when we are already ahead of the curve. How do we perform on cyber security
86
November 2016
penetration tests? How do we feed power in to our data centers? How are we cooling the infrastructure? Saying this is good, but is it good enough? We will never rest on our laurels, and will always be our own strongest critic.” And AiNET will always focus on the most challenging 25 percent of its clients’ problems, he promises.
CONSTRUCTION
The Baltimore hub In February 2014 AiNET purchased One Market Center for $20 million. It is the largest data center in Baltimore. Standing seven stories high, and across the street from Baltimore’s historic Lexington Market, it is home to a host of networks, including every major telecoms carrier; Level 3 Communications,
XO Communications, Comcast, FiberLight, Zayo, Believe Wireless, Verizon, E911, Internet2, Windstream and Cogent- the last two having since expanded their presence there. One Market Center is a “carrier neutral” data center facility, meaning customers have choice of the ISP or provider they use to connect them to the internet and w w w. a i . n e t
87
AINET
the world. It’s connected to all of AiNET’s data centers, which offer nearly a million square feet of space, using AiNET’s 10,000 mile private fiber optic network. This single data center directly supports over 25 percent of the world’s data traffic. You need two things to run a data center well, Jain believes: reliable power and reliable communications. As the largest privately held communications network in Maryland, Washington DC and northern Virginia with 10,000 miles of its
YEAR FOUNDED 1993
88
November 2016
own fiber lines AiNET can offer its clients an end to end experience, with no third party involvement, that no competitor can match. It’s no wonder that US government agencies as well as large corporations are locating their servers in AiNET facilities. The stability of the partner is critical in both the public and the private sector. Since that initial $300 (which has doubtless been repaid) the company has grown on its own revenues it has remained debt free and investor free – what acquisitions it
INDUSTRY Data storage and transfer
CONSTRUCTION
has made have been self-funded. As Deepak Jain puts it: “Our company has no outside stakeholders. No one looking for a return on their money. No disinterested related parties. We are healthy with a sensible internal return on our success. I’m aware of no organization of our size or capability that can make the same claim – most are simply borrowing money until the day they can exit.” Looking forward, AiNET will undoubtedly be expanding geographically – it is currently eying
NUMBER OF EMPLOYEES 150
up Hong Kong. However, Deepak Jain’s vision is already very close to realization. “Ten years ago we set ourselves a goal to touch every internet transaction in the world: back then that seemed far off but today we are very close.” Not unexpectedly his vision has simply expanded further and a project has been started that aims to bring food security to the poorest parts of the planet. “If that comes to fruition in my lifetime it would be amazing.”
ANNUAL REVENUE 2016 estimate- $26m
w w w. a i . n e t
89
Sustainability is at the forefront of
SCT&E LNG’S NEW FACILITY within LOUISIANA
Written by Catherine Rowell Produced by Tom Venturo
SCT&E LNG, INC.
SCT&ELNG is constructing a $6.9 billion Liquefied Natural Gas (LNG) Export Terminal within the State of Louisiana, providing an environmentally-friendly and clean fuel source to the global energy mix with an increased emphasis on sustainability
C
ompanies worldwide are increasingly tasked with finding cheaper, more sustainable energy sources that will reduce increasing levels of environmental pollutants while continually meeting the demands of its growing consumer base. Originally established by Southern California Telephone Company, SCT&E LNG is now globally renowned as the developer of a 12 mtpa natural gas liquefaction and LNG export facility on Monkey Island in Cameron Parish, Louisiana. The company’s innovative and technical innovations in providing sustainable and affordable natural gas via LNG to countries in need of clean burning and inexpensive
92
November 2016
energy solutions has been globally recognized, at which the company has been recently nominated for the CWC Asia Pacific LNG Innovator of the Year Award for its unique 20year fixed price LNG supply offering, a first of its kind in the industry. “The United States has an abundance of clean natural gas, and there are places in the world that are in desperate need of clean fuels, rather than pollutants which we are currently experiencing. SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it,” explains Eric Smith, Executive Director of Business Development. SCT&E LNG’s unique 20-year fixed price option is just the beginning of the company’s innovative offerings
ENERGY
in the industry. According to CEO Greg Michaels, the company is “currently working on crafting LNG supply deals based on exotic indexes, something no one else has been able to achieve before.” Multiple natural gas pipelines are located close to the 246-acre project site, which will allow natural gas to be collected and treated effectively in order to go through the liquefaction process where the gas will be cooled to -162°C (−260 °F) degrees. The LNG will then be placed within three onsite storage tanks situated alongside three LNG trains incorporated into the SCT&E LNG development. The storage tanks will hold around 160,000 cubic meters of LNG supply each, which will cater to the increasing demand for clean burning fuels, and can be utilized for a multitude of needs, from commercial and residential use, to industrial and transportation services. While innovation is a key distinguisher of SCT&E LNG’s business philosophy, pursuing “proven” strategies, technologies and locations is also a fundamental
about Strategically located on Louisiana’s Calcasieu Ship Channel, the future SCT&ELNG facility sits approximately 2.5 miles inland from the Gulf of Mexico. The project site is located near the heart of the U.S. natural gas intrastate and interstate pipeline systems, just miles from major gas pipeline interconnections. SCT&E LNG has received Order No. 3566 from the Department of Energy granting them a 30year authorization to export approximately 1.60 billion cubic feet per day (bcf/d) of natural gas, or approximately twelve (12) million tons per annum (mtpa) of domestically produced LNG, by vessel from the proposed SCT&E LNG Export Terminal to countries with whom the United States has a Free Trade Agreement. SCT&E LNG also has a nonFTA application on file with the DOE that is pending approval.
w w w. s c t e l n g . c o m
93
SCT&E LNG, INC.
aspect of its business model. Louisiana already has a robust infrastructure in place and has garnered strong community and government support. The $6.9 billion SCT&E LNG development will provide over 1,500 construction jobs, boost the US economy and has garnered widespread political support. Louisiana is also currently the third natural gas producer and the ninth crude oil producer in the nation. “Our facility will have a direct positive impact on the health of tens of thousands of people where our
94
November 2016
gas will be consumed as well as contribute to the health of the global environment,� adds Michaels. The SCT&E LNG project is headed by a strong executive team of energy professionals with vast experience within the LNG and EPC industries. Vice President of Engineering, Scott Ray, has extensive knowledge and vast experience in designing and constructing a number of LNG liquefaction facilities globally, in addition to commissioning five LNG trains and seven cryogenic storage tanks. With over 27 years
ENERGY
of experience in Engineering, Construction and Procurement (EPC) industry, Ray’s expertise compliments that of Smith, who is currently developing the project’s commercial and business development strategies. “Our strategy is to have the most knowledgeable team of people with a high level of industry experience directly related to developing projects like ours. We run with a lean team to maintain staying power through the development phase, and to bring results and return on investment to our partners”, explained Michaels. Running lean is a fundamental factor in SCT&E LNG’s continued success, and the project has been able to achieve several key milestones
at the fraction of the money spent by other, more heavily funded projects. Michaels explains, “We are careful with our capital and understand what an important tool it is. We operate under a “waste nothing” mentality and negotiate with every contractor aggressively. We listen intently to our advisors and contractors, then apply their recommendations based upon our team’s extensive experience. We approach our customers/ offtakers with the mindset of best supporting their needs. The response from offtakers on our commercial innovation, proven decisions, and customer service confirms that SCT&E LNG’s way of operating is working.” SCT&E LNG has placed an
“The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most” – Greg Michaels, CEO
w w w. s c t e l n g . c o m
95
Big LNG expertise. Also available in small LNG plants. Air Products has contributed to the success of more LNG operations than any other company. And we bring our full capabilities to LNG projects of any scale, from peak-shaving plants producing less than 0.1 MMTPA to the largest base-load facilities, on land or off-shore. Our LNG team can help you get a plant up and running at the highest efficiency–on time, on budget, and in any climate. To learn more, call 800-654-4567 (US), 1-610-481-4861 (worldwide) or visit us online.
tell me more airproducts.com/LNG
Š Air Products and Chemicals, Inc., 2016 (39969)
39969-LNG-Expertise-196X137-ad.indd 1
Built to deliver a better world
As a fully integrated firm, AECOM draws from its pool of experts to help communities thrive. We offer our oil & gas clients comprehensive enabling infrastructure services including planning, development, design, permitting, construction, and commissioning to develop sustainable and fit-for-purpose solutions.
aecom.com
8/19/16 3:01 PM
ENERGY
increased emphasis on fulfilling what for the SCT&E LNG project. has been titled the “second wave” of “The long term, global benefit of our LNG demand, which is predicted to facility is the improved environmental begin in 2023 and rise thereafter. This impact it will have in places, such prediction coincides with the timing as China and India, where coal is of SCT&E LNG’s being used as a signed Natural Gas primary fuel source Supply Agreement, and resulting negotiated by in high levels of Michaels, which pollution in the begins at the atmosphere,” adds commencement Michaels. “This of the facility’s pollution is causing operations around devastating health 2023 and ensures consequences for a 20-year fixed the communities, price for the supply and natural gas of LNG for SCT&E fueled energy will LNG’s customers. work to greatly This agreement improve the air has enhanced quality of these the appeal of the countries.” Natural facility’s LNG for – Eric Smith, Executive Director gas is known buyers, creating of Business Development to be twice as a competitive clean burning as advantage for the company and traditional energy sources, such as oil its shareholders. Five confirmed and coal, and will provide increased MOUs have been signed to date benefits through the reduction of for a total of 5.7 mtpa of LNG, pollutants regularly emitted. signifying increased momentum A number of key partners have
“SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it”
w w w. s c t e l n g . c o m
97
SCT&E LNG, INC.
been bought into the project to deliver crucial engineering services and help drive the project forward. Technip has been selected as the Owner’s Engineer for the development and will undertake work relating to the Federal Energy Regulatory Commission (FERC). In addition, Technip has significant experience working with Air Products and Chemicals Inc. (APCI), the liquefaction technology provider selected for the SCT&E LNG project, a relationship that will be advantageous
50
+
YEARS OF EXPERIENCE MITIGATING RISK
in successfully moving the project forward through completion. Ray remarked, “We selected the world’s number one LNG technology, Air Products and Chemicals. We’ve done that because it’s proven to be the best technology with the lowest cost for producing LNG.” Ray further adds, “for technology, two gas turbine drivers are currently being considered – one by GE Oil and Gas and the other by Siemens.” The expected demand for clean
Fugro is proud to be a selected partner for SCT&E LNG. We have a proven track-record providing data acquisition, comprehensive project management and risk mitigation. Clients trust our capability providing integrated solutions onshore and offshore to the LNG industry while maintaining world HSEQ standards. Fugro inquiries@fugro.com www.fugro.com
ENERGY
fuels is predicted to triple within the next 20 years, which will yield a multitude of challenges for both suppliers and consumers. Eric Smith explains, however, “the main challenge presently faced in the global market is getting customers to make the switch from coal to natural gas on a long term basis”. He adds: “Coal has historically been cheaper than natural gas, but it’s also extremely bad for the environment. What we’re finding is that the carbon tax being considered in many countries around the world is an attempt to equalize the price of coal with other cleaner fuels to encourage those nations to make the switch to fuel sources that will have less of an impact on the environment.” The company, however, has acknowledged the need to find sustainable solutions that will also benefit the global community while driving the delivery of greener, cleaner energy sources for the world: “A huge driver for us is the environmental impact the increased use of natural gas will have, which in turn affects society as a whole. People would like to have a cleaner
atmosphere because it affects their quality of life, and our project will deliver fuels to these communities that will provide them with their electricity and create a cleaner atmosphere,” concludes Smith. The long term benefits of the project are evident. “The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most”, reflected Michaels. SCT&E LNG are clearly passionate about not only the sustainability and superiority of LNG as an energy source, but also the increased advantages it has over dirtier fossil fuels which the SCT&E LNG development can deliver globally. Strong partnerships will support the delivery and key outcomes, which in turn will effectively support countries in utilizing greener fuel alternatives to provide benefits for the future.
w w w. s c t e l n g . c o m
99
SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM development of a $6.9 billion natural gas liquefaction facility located in Southwest Louisiana for the export of LNG globally. As Chairman and CEO of SCT&E LNG, he has spoken on LNG issues internationally and is a published author. At the age of 26, Mr. Michaels founded Wholesale Airtime, Inc., now Southern California Telephone Company, one of the few privately-held
Greg Michaels CEO
telecommunications companies to successfully navigate the Telecom Act of 1996 that deregulated the telecom industry in the United States. Early
A lifelong entrepreneur, Greg Michaels
in his career, Mr. Michaels wrote his
completed the highly selective and well
company’s first brief petitioning the
respected Entrepreneurship Program
California Public Utility Commission
at the University of Southern California
(CPUC), who subsequently granted
(USC) Marshall School of Business.
his company’s Certificate of Public
Mr. Michaels majored in Business
Convenience and Necessity, creating one
Administration and completed an
of the first privately-held public utilities
additional pre-medical curriculum. During in the State of California. As a pioneer his four years at USC, he competed of the telecom industry, he developed as a student-athlete on the acclaimed
the process and platforms that allowed
USC Men’s Varsity Tennis Team. After
Competitive Local Exchange Carriers
his time at USC, Mr. Michaels pursued
to interconnect their networks via
a career as a professional tennis player.
incumbent communications providers
Mr. Michaels is a national champion
and contributed to the success of number
and still competes currently. Today,
portability that all Americans enjoy today.
Mr. Michaels is a successful business
Mr. Michaels has capitalized on his ability
leader and is the developer, owner, and
to build successful teams by identifying
operator of a number of businesses
personal strengths in individuals
encompassing telecommunications,
and further developing them. He has
real estate development, energy, and
employed thousands of people and
oil and gas. In 2014, Mr. Michaels
is well respected by his management
established a LNG company for the
teams and personnel. He has bought,
Greg Michaels, CEO
GREG MICHAELS
ENERGY
sold, and started over two dozen
LNG, a company he founded to help fill
companies. A recent acquisition gained
the growing global demand for natural
him a controlling interest in North Energy
gas. Focused on the energy revolution
Central (NEC) www.northenergycentral.
taking place in North America, Mr.
com. The principals of NEC have
Michaels seeks to become an exporter
developed over $5 billion in power
of U.S. natural gas while simultaneously
generation facilities worldwide which
helping the United States become a
include bio fuel, nuclear, and natural gas-
net exporter of its energy. In March
fired power plants fueled
2014, Mr. Michaels led SCT&E LNG, via
by LNG.
the LLC, to acquire approximately 246
Upon acquisition of the controlling
acres of land via a 99+ year (including
interest in NEC, Mr. Michaels took over
the option terms) Option-to-Lease
stalled negotiations with the Dominican
agreement in Southwest Louisiana
Republic government to build a 300
for the development of an LNG export
megawatt gas-fired power plant. Within
terminal. The project is modeled as a 12
months of the purchase of NEC, and
mtpa natural gas liquefaction facility.
leading new negotiations with the state-
In addition to his business interests, Mr.
owned electric utility, Corporación
Michaels’ passion for his community
Dominicana de Empresas Eléctricas
and sense of civic responsibility led
Estatales (CDEEE), Mr. Michaels
him to coach youth soccer and tennis
increased the scale of the project and
for over fifteen years where he parlayed
signed a Memorandum of Understanding
his strengths in talent development
(MOU) with the CDEEE for the
and team building. Mr. Michaels
development of a 400 megawatt gas-fired
successfully led his soccer teams to
power plant and LNG receiving terminal.
earn fifteen division championships and
The total project costs were estimated at
over thirty tournament championships.
approximately $850 million. Mr. Michaels
Mr. Michaels believes, “Success is
negotiated additional terms that included
achieved by helping people accomplish
provisions which allowed NEC to provide
what they never thought possible.” Mr.
the Dominican government with its
Michaels runs all areas of his life by this
foreseeable natural gas requirements.
philosophy. He is a dedicated family
Mr. Michaels and his wife founded
man, husband of 24 years, and father
and 100% own Southern California
of three adult children, one who is a
Telephone Company, a United States
graduate of Cornell University, another
public utility. Mr. Michaels’ latest
currently attending Cornell, and one
endeavor is the development of SCT&E
who attends Pepperdine University.
SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM positions designing, building, and commissioning LNG liquefaction facilities globally, and has engineered and commissioned five LNG trains and seven cryogenic storage tanks to date. Mr. Ray’s engineering career began at MW Kellogg, now Kellogg Brown and Root (KBR), in a program designed to develop young engineers. MW Kellogg was recognized as an international leader in the field of LNG facility
Scott Ray, Vice President of Engineering for SCT&E LNG
design. After completing the MW Kellogg engineering program, Mr. Ray joined a startup team from MIT, Aspen Technology, to develop software for
Raised in an entrepreneurial family
chemical engineering companies. While
in a small town near Pittsburgh,
at Aspen Technology, Mr. Ray was part
Pennsylvania, Scott Ray grew up working
of a team that successfully took the
on farms and developing real estate with
company public. During the time Mr.
his father. His father instilled in him the
Ray worked at Aspen Technology, the
importance and value of hard work and
stock price increased over 400%. He
dedication, and this work ethic propelled
was recognized at Aspen Technology
him to strive for excellence which landed
for making the company’s single largest
him in one of the most prestigious
sale to Fluor, a highly recognized
engineering colleges in the world,
global engineering company. As part
Carnegie Mellon University. Mr. Ray
of the sale, Mr. Ray spent roughly
covered much of the cost of his college
one year at Fluor implementing a
tuition from the proceeds of his real
training program with its employees.
estate transactions. After completing his
Upon the completion of his
Chemical Engineering degree at Carnegie
responsibilities at Fluor, Mr. Ray
Mellon’s College of Engineering, Mr. Ray
rejoined KBR to pursue his passion for
has had a successful 26-year career
LNG development. At KBR, Mr. Ray
in the EPC business. With a focus on
was part of a world-class engineering
world scale LNG projects, Mr. Ray has
and design team that developed LNG
served in a wide variety of leadership
facilities globally, which included
S C O T T R AY
ENERGY
Qatar Gas LNG Liquefaction, Malaysia
of Maryland in the United States. His
LNG Liquefaction, Nigeria LNG
Aker Kvaerner team served as the EPC
Liquefaction, Australia Northwest Shelf
contractor for Cameron LNG, Adriatic
LNG Liquefaction, Sonatrach LNG
LNG, Gulf LNG, and also completed
Liquefaction at Skikda and Arzew, Arco
a number of projects for Chevron and
Tangguh LNG Liquefaction, and others.
ConocoPhillips, among others.
He also led several different studies
During his time at KBR, Mr. Ray worked
and analyses for companies, such as
for eight years with the world’s best team
Trinidad LNG Liquefaction, Angola LNG
for engineering, design, and construction
Liquefaction, and a number of other
of the Air Products and Chemicals,
very significant projects. As a Senior
Inc. (APCI) Propane Pre-Cooled LNG
Process Engineer for KBR, Mr. Ray
liquefaction process. APCI is the number
gained valuable EPC experience and
one liquefaction technology provider
led the process engineering through
globally and is the process selected by
design, commissioning, and startup
SCT&E LNG for its project on Monkey
for several multi-billion dollar LNG
Island. Mr. Ray is currently serving as
facilities, including Nigeria Bonny
the Vice President of Engineering for
Island LNG Trains 2 & 4, Australia
SCT&E LNG and is primarily responsible
Northwest Shelf LNG Train 4, and
for the engineering, procurement,
two trains for Malaysia LNG Tiga.
planning, development, and construction
Because of his work at KBR, Mr. Ray
efforts for the company’s natural gas
was hired by Aker Kvaerner where
liquefaction and LNG export project.
he was effective as first the Business
In addition to his involvement with
Manager, and later the Project Manager,
the engineering and construction
for the EPC of several multi-billion dollar
industry, Mr. Ray is committed to
LNG facilities, such as Cameron LNG,
serving his community. He volunteers
Gulf LNG, and Adriatic LNG. Mr. Ray’s
his time weekly leading a mentoring
valuable contributions were recognized
group for men and rebuilds homes for
at Aker Kvaerner and he was promoted
disadvantaged and elderly people in
to the Director of Business Development.
the Houston, Texas, area. Mr. Ray is
In that leadership role, Mr. Ray’s team
a dedicated family man to his wife of
won the Pre-FEED and FEED contracts
23 years and the proud father of five
that led to the successful EPC bid of
children, three of whom are currently
Dominion’s Cove Point LNG $4 billion
studying at Texas A&M University, and
liquefaction facility off the east coast
two of whom are in high school.
SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM years, Mr. Smith has focused his career in the EPC sector of the energy industry concentrating on large scale energy and petrochemical projects. While developing commercial strategies to pursue and win EPC projects, Mr. Smith gained valuable experience in logistics, proposals, contracts, subcontracts, procurement, and construction. While serving in the United States Air
Eric Smith, Executive Director of Business Development Eric Smith is a motivated and effective energy executive with stellar accomplishments in the Engineering, Procurement, and Construction (EPC) and LNG industries. Growing up in an entrepreneurial family in a small town in Oklahoma, he spent his high school years working for the family furniture business his grandfather founded at the end of the Korean War. After graduating from high school, Mr. Smith joined the United States Air Force working as an intelligence analyst where he served proudly for nine years. Four years into his military service, he was recruited to join the National Security Agency (NSA) to manage multiple intelligence gathering teams supporting Operation Enduring Freedom (Afghanistan and Iraq). His contributions were recognized by the Director of the NSA and the Deputy Commander of the United States European Command. For the last eight
Force, Mr. Smith completed his Bachelor of Science Degree in Marketing and began studies toward a Master of Business Administration (MBA) from the University of Maryland. After honorably completing his military service, he finished his MBA and subsequently began working for the global engineering and construction company, Fluor. Due to his success at Fluor, Mr. Smith was later recruited by Mammoet USA for the commercial role of North American Business Development Manager where he developed and sold project logistics strategies that provided solutions for lifting, transporting, installing, and decommissioning large and heavy structures to EPC contractors and project owners. In this position, he leveraged his entrepreneurial upbringing to create business opportunities previously lacking for the company. Recognized for his contributions at Mammoet USA, Mr. Smith was recruited in 2011 by Foster Wheeler, a well-respected international EPC
ERIC SMITH
ENERGY
firm in Houston, Texas, where he began
13,000 employees. He was promoted
working as a Project Subcontracts
to the role of Senior Account Executive
Manager. His strong work ethic and
in 2014, placing him in an elite group
high-level capabilities were quickly
of energy industry executives who
noticed by senior executives, earning
excel in developing business and
him a promotion and assignment in
commercial strategies to advance their
the business development department
respective company goals. In his last
where he was challenged by the CEO to
year at Foster Wheeler, Mr. Smith led
develop a business plan to penetrate the
a team that supported an early stage
midstream markets. Within 12 months,
LNG developer successfully raise over
Mr. Smith identified and negotiated
$100 million for their LNG project.
multiple master service agreements,
Mr. Smith is currently serving as
generated sole source business
the Executive Director of Business
opportunities, and created strong long-
Development for SCT&E LNG and is
term business relationships for Foster
primarily responsible for the commercial
Wheeler in the midstream market.
development of the company’s
Because of his immediate success
Monkey Island LNG project. Mr. Smith
at Foster Wheeler, Mr. Smith’s
is responsible for identifying and
responsibilities quickly grew to
negotiating LNG offtake sales contracts,
include work in the petrochemical,
raising capital, and developing the EPC
gas monetization, and LNG industries,
strategies for the company. He works
and he was challenged with the
directly with and is a key advisor to both
task of increasing the company’s
the CEO of SCT&E LNG and its Board of
commercial exposure to the North
Directors. His professional experience
American petrochemical and LNG
in the energy industry combined with
markets. Ultimately this business
his ability to quickly build relationships
line became the largest revenue
and develop trust and rapport with
generating division in the company.
colleagues has made him a successful
In 2013, Mr. Smith led an 11-month
member of the SCT&E LNG team and
proposal effort that resulted in Foster
a well-respected player in the LNG
Wheeler winning a $2.4 billion EPC
industry. Outside of his career, Eric is a
project in the U.S. Gulf Coast, the largest
loving husband of eight years and proud
project in the company’s 100+ years of
father of three children. He resides in
business. With this accomplishment, he
Houston, Texas, and spends his free
achieved recognition as the #1 global
time with his family and playing golf.
sales person in a company of over
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 1 1 0 1 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1
0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 1 0 0 0 1 1 1