Business Examiner Peace Cariboo Skeena - June 2016 by Business Examiner Media Group

» MANUFACTURING

JUNE 2016

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FORT ST. JOHN Oil & Gas: Key Regional Industry

A Fresh Perspective on Business

Enduring Hard Times

Peace Cariboo Skeena WWW.BUSINESSEXAMINER.CA

Now in Terracee

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Winners Celebrated at Northern BC Commercial Building Awards

BRITISH COLUMBIA Company Uses

Dawson Creek’s Calvin Kruk Centre For The Arts named Best Overall Judges’ Choice winner at bi-annual event

Skills & Technology to Protect the Environment

BY MARK MACDONALD BUSINESS EXAMINER PEACE CARIBOO SKEENA

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INDEX News Update

Prince George

100 Mile House

Movers and Shakers 11 Opinion

Northern Building Awards

RINCE GEORGE – Calvin Kruk Centre For The Arts was na med the Judges’ Choice Award Winner for Best O vera l l E nt r y i n t he fou r t h ed it ion of t he Nor t her n BC Commercial Building Awards Thursday, June 2 at the Ramada Hotel in Prince George. The Calvin Kruk Centre For The Arts was also the Award of Excellence winner in the Community Renovation category. The bi-annual celebration of the best in commercial and industrial construction was for buildings completed between Jan. 1, 2014 and Dec. 31, 2015 from Fort St. John and Dawson Creek to Prince Rupert, and from 100 Mile House to Prince George. There were 23 finalists in this version of the event, and the process started with over 40 eligible projects.

Lisa Kemp of RE/MAX Commercial presents the Judges’ Choice award for best overall entry to Mark Rogers for the Calvin Kruk Centre For The Arts in Dawson Creek. Photo by Jayson Hencheroff, Focal Point Studios PHOTOS BY JAYSON HENCHEROFF OF FOCAL POINT STUDIOS

The Northern BC Commercial Building Awards were held in 2010, 2012 and 2014, and the Judges’ Choice Award for Best Overall Entry in the 2014 event went to 6534 Airport Road in Fort St. John. “The Calvin Kruk Centre For The Arts is a project that all of Dawson Creek should be very proud of,” says Mark MacDonald of Business Examiner Peace Cariboo Skeena newsmagazine, which stages the event. “It is one of those important gathering places that bring communities together, and everyone involved in this project has obviously done an outstanding job.” Gold Sponsors for the event were R E/ M A X Com mercia l, the Northern Regional Construction Association, the Independent Cont ractors a nd Businesses Association, and the SEE WINNERS CELEBRATED | PAGE 14

Royal LePage Prince George Always There For The Clients Canadian Publications Mail Acct.: 40069240

Local Franchise Has Always Been An Active Community Supporter

RINCE GEORGE – Royal LePage Prince George has one goal in mind: working with their clients to find the perfect fit, no exceptions. From a search for the perfect home or weekend getaway property to final signatures on the perfect commercial site or office, Royal LePage’s REALTORS® are there with you every step of the way.

The Prince George office is part of Canada’s largest Real Estate company with over 16,750 agents coast to coast. Prince George’s new Managing Broker David Black is passionate about what the future holds. “Royal LePage Prince George currently has 35 REALTORS® and that number is always growing,” he said. This number includes

four agents specializing in commercial real estate and there are additional administrative and support staff in the office. Black is adamant that in order to deliver superb client service, ongoing training is a must in their office. “All REALTORS® are required as a condition of their licensing to take three different training courses every two years.

But Royal LePage goes beyond that,” he explained. “They send out trainers twice a year (in the spring and in the fall) and each time the trainers come out they have a specific program that they’re doing and many of the agents from our office participate. The training is SEE ROYAL LEPAGE | PAGE 6

Vanhoutte Coffee Services Servicing the areas of Prince George, Terrace, Smithers, and Williams Lake Providing high quality coffee, brewers and service for every business environment.

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NEWS UPDATE

NORTHERN BC Northern Lights College Receives Training Funding Northern Lights College (NLC) will receive $150,000 to support training for workers affected by the temporary decreased production at the Chetwynd Mechanical Pulp Mill. The funding is also expected to provide additional training opportunities for students in other communities in the Northeast that may be experiencing an economic downturn. A Community Adjustment Team, whose purpose is to coordinate and integrate local support services, is working with NLC to determine what training will be most effective and to create programming that will best support future job opportunities for the affected workers. While the team members vary, depending on the situation of each community, they typically include local and provincial service providers and organizations with leadership from the Ministry of Jobs, Tourism and Skills Training. The funding aligns with B.C.’s Skills for Jobs Blueprint and supports communities in the region affected by the economic downturn, providing workers with the opportunity to retrain and upgrade their skills. B.C.’s Skills for Jobs Blueprint was launched two years ago to align funding and programs with in-demand occupations. B.C. expects almost one million job openings by 2024 and eight out of 10 of these openings will require post-secondary education or training.

NORTHERN BC Northern BC Benefits from Job Creation Partnership Five people in the Cariboo region will gain new job skills as they upgrade the Gold Rush Snowmobile Trail and other local recreation sites through a Job Creation Partnership with the British Columbia government. The New Pathways to Gold Society received nearly $400,000 from the Ministry of Social Development and Social I n novat ion’s Community and Employer Partnerships program for the Joint Cariboo Project, which will see participants install new amenities along the Gold Rush Snowmobile Trail, at the local ice caves and on Canim Lake Band territory. The program participants will be at work until December 2016 as they gain skills in general construction, log building, road work and trail building. They will also receive Level 1 first aid training, chain saw and power saw training, and training in off-road recreational vehicles, WorkPlace Hazardous Materials Information Systems (WHMIS) and Bear Aware programs. Along the area’s Gold Rush Snowmobile Trail, popular among snowmobilers, project participants will install four warming huts and nine information kiosks to make the trail more accessible for new users. At local recreation sites they will install 15 outhouses, 35 picnic tables, 12 pit toilets and steps, and 30 picnic table planks. On the Canim Lake Band territory, participants will build 12 log picnic tables, two outhouses and log tables, a pow-wow arbour and a baseball field dug-out. They will also build a trapper’s cabin, renovate another cabin and build a trail along Bob’s Lake. In the final stage, participants will overhaul the ice caves with similar amenities, as well as add a foot bridge, new railing and parking lot improvements. Job Creation Partnerships are part of the Employment Program of British Columbia’s Community and Employer Partnerships, which fund projects that increase

employability and share labour market information. T he Co m mu n i t y a n d E m p l oye r Par t nersh ips prog r a m is feat u red i n B.C.’s Skills for Jobs Blueprint and provides more support to people who are struggling to gain a foothold in the job market. It helps build stronger partnerships with industry and labour to connect British Columbians with classroom and on-the-job training, while making it easier for employers to hire the skilled workers they need – when and where they need them. To date, more than 1,000 job seekers benefited from work experience and more than 200 projects have been funded throughout the province.

BC New Website Touts Aboriginal Success Stories The B.C. Aboriginal Business and Investment Council (ABIC) has launched a new, updated website to make it easier to do business with First Nations companies and promote economic development among Aboriginal communities. The website - www.bcabic.ca - can be accessed by smartphones and other handheld devices, allowing it to reach a larger audience and attract a younger population. The website features an updated resource centre, a collection of online links and tools that support Aboriginal economic development throughout British Columbia. The updated site also includes the First Nations Economic Development Database (FNEDD), which has more than 1,200 businesses and potential business partners registered. The comprehensive database is the first of its kind, developed by ABIC in partnership with the Ministry of Jobs, Tourism and Skills Training to track a wide range of economic activities. As well, the new site includes videos and success stories highlighting the stories of First Nations businesses throughout the province. The website update comes on the heels of ABIC renewing its mandate. ABIC’s mandate, to help increase Aboriginal participation in the economy by encouraging economic growth among First Nations communities, was renewed for two more years until Jan. 31, 2018. Eleven board members have been reappointed, including Chief Councillor Ellis Ross of the Haisla First Nation, who is chair of the ABIC board. In addition, ABIC is welcoming two new board members: Obie Erickson and Willie Sellars. Erickson is president of Canadian operations for Britco, one of North America’s largest modular construction companies, which has several First Nations business partnerships. Sellars, a member of the Williams Lake Indian Band (WLIB) of the Secwepemc Nation, is also the special projects coordinator in the WLIB Economic Development Department.

TERRACE Young Entrepreneurs Awarded $40,000 in Northwest BC Seven outstanding young and emerging business owners won their share of $40,000 to support their businesses at the second Annual ThriveNorth Business Challenge in Terrace on May 7th. The 2016 ThriveNorth Business Challenge winners and runners-up are: ■ Best New Business - Winner: Bobby Middleton, The Saw Shack, Terrace - $10,000 - Runner up: Jill Whitfield, Repose, Terrace - $2,500

JUNE 2016

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Best New Social Enterprise - Winner: Heather Bohn, Our Roots, Terrace - $10,000 - Runner up: Andrea Pollock, Island Sugar, Prince Rupert - $2,500 ■ Best Growth Opportunity - Winner: Kristine Ewald and Simone Crook, Transcend Fitness, Terrace - $10,000 - Runner up: Johanne Chaine, Peoples Pharmacy, Terrace - $2,500 Audience members voted on their favourite business pitch. Kristine Ewald and Simone Crook of Transcend Fitness won the Audience Award and received an additional $2,500. The event, which is hosted by Futurpreneur Canada and Prince Rupert LNG (the proposed LNG project on Ridley Island), is part of a fiveyear initiative that aims to inspire and support people aged 18-39 in the region to launch and grow their own businesses. More than 100 people came to the R.E.M. Lee Theatre in Terrace to watch the live pitching challenge, which was followed by the awards ceremony. Through the Business Challenge competition and other activities, ThriveNorth provides emerging business owners with training, financing, mentoring, resources and more to help them in the early stages of their business. Since 2014, the ThriveNorth initiative has funded 19 young entrepreneurs who have created nearly 60 jobs in their communities. ThriveNorth has also provided coaching, training and support to 77 people and helped engage 1,600 members of the community through entrepreneurshipfocused events.

One of Prince Rupert’s most picturesque places is the site of a major improvement project. With a $50,000 contribution from the Port of Prince Rupert’s Community Investment Fund, the Prince Rupert Garden Club was able to install electrical and irrigation services at the city’s Sunken Gardens. The enhancement project not only improves the vitality of the plant life, but enhances awareness of the site through new signage and extends the hours of enjoyment with new landscape and pathway lighting. Included in the project was the excavating and re-paving of the rear lane access, laying of electrical cables and irrigation channels, construction of aluminum electrical housing panels and the installation of numerous lighting fixtures throughout the gardens. Remaining funds were used to create and install signage at the two tunnel entrances. The Club was also able to purchase sandwich board signs and wayfinding signs to direct tourists to the gardens. The Prince Rupert Garden Club was formed in 1920. In 2003 the club created the Sunken Gardens Restoration Project after the provincial government ceased maintenance of the site. Today the club has over 50 volunteer members who participate in events like the planting of thousands of annual flowers in late May and the Garden Tour and Tea at the end of July. Funding from the Province of BC and club fundraising activities pay for the plants and maintain the Sunken Gardens.

CANADA

EI Eligibility Rules Need Improvement

CFIB Proposes Replacement for TFW Program

Improvements, not an overhaul, are needed for Employment Insurance (EI) eligibility, states a new report from the C.D. Howe Institute. In “Unequal Access: Making Sense of EI Eligibility Rules and How to Improve Them,” authors David Gray and Colin Busby find that the degree of alleged deterioration of the EI program as a social safety net over time is greatly misunderstood and exaggerated. However, the authors argue that claims of EI eligibility restrictions and benefit cutbacks eroding the safety net for workers who pay into the program are mostly untrue. According to Busby, “although we demonstrate that there are a significant number of unemployed Canadians that do not contribute to EI, eligibility is quite high for targeted recipients.” Nevertheless, the federal government can make important improvements. For example, the Employment Insurance Coverage Survey (EICS) looks at qualification rates for workers who pay EI premiums and are laid off from work. To increase EI eligibility, the authors support the Federal budget’s decision to drop the long-standing penalty applying to new entrants and re-entrants into the labour force This reform should result in a modest increase in the number of EI-eligible workers who are unexpectedly laid off. Another recommendation, for a broader and further-reaching eligibility increase, is the consideration of a lower, yet geographically more uniform, hours-based requirement. Eligibility rates for workers in regions with low unemployment rates, which currently require at least 700 hours of work, are significantly lower than eligibility rates for workers in regions with high unemployment rates that require only 420 hours of work, on average.

The Canadian dream shouldn’t require a PhD – it’s time to replace the Temporary Foreign Worker Program (TFWP). The Canadian Federation of Independent Business (CFIB) is proposing an Introduction to Canada Visa that provides a pathway to permanent residency for workers in entry-level categories. That was the central message delivered by CFIB senior vice president of national affairs and partnerships, Corinne Pohlmann, in a presentation this afternoon to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. CFIB welcomes the new government’s review of the TFW program after the program was gutted under the previous government. Pohlmann urged the committee to implement the following measures to help small businesses and temporary foreign workers: ■ Allow a pathway to permanent residency for all TFWs, including those in lowerskilled/entry-level categories, by creating an Introduction to Canada Visa or expanding the “Express Entry” system to include lower-skilled/entry level workers ■ Create a TFW Bill of Rights ■ Provide stricter enforcement instead of more rules ■ Take a more reasonable approach to fees ■ Review all federal government programs and policies related to workforce training For jobs that are truly short-term in nature, CFIB believes a small, targeted temporary stream may still be required.

PRINCE RUPERT Port Investment Helps Power Growth at Sunken Gardens

CANADA

JUNE 2016

MANUFACTURING Manufacturing Jobs Pay 15 Per Cent Higher Than National Average With more people leaving jobs in manufacturing industry leaders are looking for innovative ways to find new workers BETH HENDRY-YIM

C’s manufacturing sector comes in as the fourth largest in Canada generating nearly $14.3 billion in gross domestic product. The numbers, from the latest provincial report on manufacturing, show it as a key sector, employing a significant percentage of BC’s labour force with 161,000 workers. Manufactured goods make up the largest component of BC exports, at 63 per cent heading to a global marketplace that includes the United States, China, Japan and Europe. Although wood product manufacturing remains a leader in BC, other companies are commanding their market share by developing new products and innovative techniques and adding design and post-sale service to their process. The industry is made up of a diverse group of companies in areas such as apparel, food, amusement park equipment and biomedical manufacturing. U n i ve r s a l P a c k a g i n g i s a 31-year-old company located in the North Okanagan that provides screen printing for wine, beer and spirt bottles. Its process has made it the largest bottle printer in North America to these industries. “Manufacturing in general provides a fair amount of stability in jobs and in the companies,” said Steve Pelkey, CEO of Universal, “Manufacturing companies usually pay employees better than the retail or service industry and there are more opportunities for in-house training, career advancement and higher starting wages.” Manufacturing is a complex and multi-level industry with participation from a variety of sectors that supply raw materials, energy, equipment and human capital. According to the province’s profile it supports the creation of high paying jobs such as in engineering and consulting, software design, skilled trades as well as those in production plants. Stephen Peel, vice president Ironside Design Manufacturing Inc, and interim vice president for Canadian Manufacturers & Exporters (CME) BC’s Advisory Board and Chair of CME BC’s

Policy and Public Affairs Committee, said that there is a full spectrum of career opportunities outside traditional machinists and welders, and that youth and their parents should not disregard a career in a trade in manufacturing. “How many jobs are there where a student from high school can step into a well-paying position without any prior training? Many manufacturing jobs train on the job, pay for schooling and help build a career through apprenticeships.” He added that like other sectors, manufacturing faces a serious worker shortage over the next 10-15 years. “There are more people retiring from jobs than there are new workers,” he said. “With

manufacturing contributing a major portion of the tax base, it’s a big issue.” Pelkey said one solution leaders in the sector would like to see is government encouraging immigrants to move to outlying regions of the province. “Instead of settling in urban a r e a s , t h e y c o u l d c o m e to places like the North Okanagan and find great paying jobs and opportunities.” Pelkey said that his company’s senior plant management is also looking at internal ways to increase interest in jobs by creating new programming and enhancing benefits. Kevin Poole, economic development and tourism manager of Vernon said that to encourage

the growth of manufacturing in Vernon, Community Futures, with funding support from the National Research Council of Canada’s Industrial Research Assistance Program has created a new mentorship program. Designed to help local manufacturers increase efficiencies, stimulate innovation, improve profitability and enhance management skills, the project provides a forum for participants to discuss issues with like-minded and experienced mentors. “Twelve companies are participating in the program including: Kingfisher Boats, Universal Packaging, Piscine Energetics, tekmar, Chemach and newer companies like Armadillo Trailer Manufacturing,” he said.

JUNE 2016

SMALL BUSINESS AND THE TRIPLE BOTTOM LINE

PRINCE GEORGE CHRISTIE RAY

t has been said that companies who prioritize a triple bottom line far outperform those who don’t. How can a business be involved and benefit in social good, while also bu i ld i ng thei r bra nd? It is a delicate and often frustrating balance for many businesses that are constantly approached by clubs, school groups, and sports teams with requests for employee ti me, fi na ncia l or donor support in the form of product or services. We often hear from our members that they feel guilty saying ‘no’ to some requests but that they a l so c a n’t g ive to ever yone who asks. By overcommitting to their community, they risk jeopardizing the health of their business.

The reality is that many businesses do not have a plan for social good; a strategy and set of internal filters that help them align the ways they give with their strategic business goals. Developing a plan takes time and focus but, once in place, such a strategy can transform the effectiveness and stress of ‘business giving’. A plan can leave entrepreneurs and managers feeling more in control of the donation process and happy to give their resources to community causes that resonate with both their brand and also their hearts. We are happy to provide the Prince George business commu n ity w ith some g u ida nce on how to become more strategic in their attempts to create social good. T his month we will host ‘Social Good for Busi ness Impact’, a Speaker Series Luncheon with keynote speaker Shauna Harper from Live Work Communications. The event will take place at the Sandman Signature on June 7 th from 11:30AM – 1PM. Shauna Harper is recognized as a com mu n ity bu i lder a nd entrepreneur having won our B u s i n e s s E xc e l l e n c e M ic ro Business of the Year Award in 2015 and also Business Person of the Year in 2013. Her company,

The reality is that many businesses do not have a plan for social good; a strategy and set of internal filters that help them align the ways they give with their strategic business goals Live Work Communications, uses their expertise in video production, marketing strategy and group process facilitation to lead com mu n ity bu i ld i ng in Prince George (such as the recent Innovation Central Society’s Hubspace Community), throughout the province (BC Economic Forum in Vancouver and Nation2Nation Forum in Terrace), and nationally (Startup Canada movement). Lu ncheon attendees w i l l benefit from hearing the stories of Shauna’s experience and lessons learned around social cause, com mu n ity bu i ld i ng and business growth. By registering for this event, they will also learn why social good is

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important from a business perspective, how to get involved in social good whether they are an entrepreneur or a larger organization, and how to build strategy around this for their busi ness wh i le not d i luti ng their brand. A n y o n e i n t e r e s t e d i n a ttending this luncheon event on June 7 th may purchase tickets online at www.pgchamber. bc.ca or may contact ou r

Chamber d irectly by phone: 250-562-2454. The ticket value for Chamber members is $26 per person and for future members is $36. This luncheon is generously sponsored by Integris Credit Union. Christie Ray is the CEO of the Prince George Chamber of Commerce. She can be reached at christie.ray@ pgchamber.bc.ca.

UPDATE ON COMMERCE IN THE SOUTH CARIBOO

100 MILE HOUSE SHELLY MORTON

uring the Cariboo Chilcotin Beetle Action Coalition (CCBAC) Board of Directors meeting on Monday, May 16, the Board approved a request for funding for a collaborative economic diversification and community prosperity initiative headed up by the Cariboo Regional District (CRD). CCBAC will provide $80,000 towards the initiative. ■■■ Earlier this year, the CRD formalized a partnership with the Community Development Institute (CDI) from the University of Northern British Columbia (UNBC) to create a more vibrant and prosperous region. The goal of the project will be to achieve true prosperity, defined as having a strong, diverse and resilient economy with a vibrant cultural and environmental context that offers a lifestyle that attracts and retains residents. The project will support economic & community development strategies for the Central, North and South Cariboo sub-regions, as well as an overarching regional strategy. ■■■ The South Cariboo is grateful and welcoming to all the travelers and tourists that come to experience the area. Last year visitors to the South Cariboo Visitors Centre increase by 36 per cent and the trend is continuing with continuous steady growth for 2016 with almost 200 visitors to the centre on May 23rd alone. ■■■ The South Cariboo Chamber of

“Last year visitors to the South Cariboo Visitors Centre increased by 36 per cent and the trend is continuing with continuous steady growth for 2016 with almost 200 visitors to the centre on May 23rd alone.” Commerce hosted a very successful 22 nd Annual Business Excellence Awards Dinner On April 15th. For businesses to be nominated by their peers and customers is a great honour. Congratulations to all the winners. The Citizen of the Year Award was awarded to Ingrid Meyer whose work in the community has touched many. The Chamber’s Annual General Meeting was held May 16th. All board members with terms expiring were reinstated by acclamation. We would like to welcome a new board member, Chad Swanson, the Woodlands Manager of West Fraser – 100 Mile House. Board members will meet to review and discuss the coming year’s strategic plan in early June. ■■■ It is a great time to become a South Cariboo Chamber of Commerce Member with Norbord Inc. proudly announcing, through their new Safety Initiative Program, the offering of Chamber Bucks to employees participating in safety activities during their daily tasks. Norbord could be offering up to $40,000 annually in Chamber Bucks to their employees to spend in Chamber Member local businesses! Visit our website business directory for a list of members. www.southcariboochamber.org. Shelly Morton is the Executive Director of the South Cariboo Chamber of Commerce. She can be reached at 250395-6124, or manager@ southcariboochamber.org.

ICBA’s new regional ofﬁce is proud to support northern British Columbia with business services such as training, insurance, health beneﬁts and advocacy. Training Highlights

October 19 Change Order Management November 23 Introduction to Blueprint Reading December 15 to December 16 Construction Project Management

For more information and to register, visit www.icba.ca. All courses take place at our ofﬁce. Find us at: #203 – 2666 Queensway Prince George, BC V2L 1N2 250-596-8118

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CONSTRUCTION INDUSTRY TRAINING NETWORK

JUNE 2016

ROYAL LEPAGE CONTINUED FROM PAGE 1

continuous through the Royal LePage website which is available for our agents 24/7. On this proprietary website they can participate in webinars in everything from sales and marketing to locating listings. The training helps develop many of the skills a REALTOR® will need to succeed.” Another key to the success of the Royal LePage office is the experience of its team. A comfortable mix of veteran REALTORS® (many with more than 20 years’ experience) and new arrivals to the profession, the mentoring opportunity this demographic spread provides is extremely helpful for those new to the field. As Black explains, “Mentoring is v ita l. T he ex perience ou r veteran agents can share with the new members is invaluable. They’ve been there, they’ve done it, they’ve learned through experience. That is the kind of education a new REALTOR® simply cannot get any other way.” Their desire to give their clients the best customer service goes hand in hand with wanting to be an excellent community citizen as well. Management, staff and the REALTORS® give their time to the initiatives they support and REALTORS® also contribute to a monthly fund that is distributed to different organizations throughout the year.

Home to 35 sales professionals, Royal LePage Prince George’s office is located at 1625 4th Avenue David Black is the Managing Broker of Royal LePage’s office in Prince George

“The experience our veteran agents can share with the new members is invaluable.”

The largest real estate sales franchise in Canada Royal LePage currently has agents all across the country

DAVID BLACK MANAGING BROKER, ROYAL LEPAGE PRINCE GEORGE

A proud community supporter, the franchises’ most recent Shelter Foundation Garage Sale raised $3,500 At the end of May, Royal LePage held their annual Shelter Foundation Garage Sale in Prince George with all of the proceeds that were raised being donated to the Phoenix Transition House for Women and Children. This year’s Garage Sale was the best to date, raising

$3,500 for the Society! Royal LePage Prince George also recently presented a $3,000 cheque to the Prince George Hospice Society in memory of fellow REALTOR® Sid Doucette. Black said “Sid was a fixture in the Prince George Real Estate

community for decades. The lessons, guidance and example that he provided will live on in REALTORS® from every office in Prince George and beyond and because of that impact, we wanted to honour him with this donation.”

D u r i ng t he last fou r yea rs alone Royal LePage has donated $28,000 to Hospice. Roya l L ePage’s passionate team, proven client service, and continuous training and mentorship programs have put them directly in the forefront of the Prince George market. To learn more please visit the compa ny’s website at w w w. royallepageprincegeorge.com

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JUNE 2016

Oil & Gas: Key Regional Industry Enduring Hard Times Sector Slowdown Has Had Serious Impact All Across The North

The slowdown in the oil and gas sector has hit the region hard, especially in Fort Nelson and Fort St. John BY DAVID HOLMES

ORT ST. JOHN – The oil and gas sectors in British Columbia are vital and powerful contributors to the province’s economic health and future wellbeing. W hile having a profound province-wide influence the oil and gas producing region of the province is essentially limited to a narrow section in northeastern BC in direct contact with the Alberta border. Centered on the communities of Fort Nelson and Fort St. John, direct oil and gas extraction coupled with servicing all sectors of the industry have for decades been one of the region’s main economic drivers. But exactly how big an industry is it? According to information compiled by the Canadian Association of Petroleum Producers (CAPP) British Columbia is the number two producer of natural gas in Canada producing 4.3 billion cubic feet of gas per day, while 20,900 barrels of crude oil were produced in the province each day in 2015 (the province estimates

that it has the capacity to refine as much as 67,000 barrels per day). According to the provincial government BC has oil reserves of approximately 115 million barrels of oil and as much as 78 trillion cubic feet of natural gas that could potentially be developed. There are an estimated 8,300 producing natural gas and crude oil wells in the province, with enough natural gas being produced annually to heat more than 3.5 million Canadian homes. The sector employs tens of thousands of people in either a direct or support capacity while the industry investment in the province has climbed from $1.8 billion in 2000 to more than $7 billion in 2010. Natural gas revenues in BC reached a peak in 2006 when it hit $2.6 billion but have receded in the past decade as demand and prices have declined. That apparent slump has had a direct and immediate impact on northeastern British Columbia and on the lives of its residents. Based in Fort St. John, Energy Services BC (ESBC) is a non-profit organization

that is the voice of the oil and gas service sector. The group, which is marking its 40th anniversary this year, lobbies government on behalf of its membership and actively campaigns to producers (primarily Alberta-based) to hire local workers when operating in the region. Currently the ESBC has more than 140 companies on its membership list, from oil field supply companies to financial institutions.

Art Jarvis the group’s Executive Director says one of the biggest challenges faced by its membership is an ongoing inequality in terms of industry employment, especially in relation to out of province companies. “One of the biggest issues that we are fighting for is to make sure we level the playing field between all SEE OIL & GAS | PAGE 8

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OIL & OILFIELD SERVICES

JUNE 2016

OIL & GAS CONTINUED FROM PAGE 7

contractors. W hen I say that there are out of province contractors that are coming in and some of them don’t pay PST on their equipment, they don’t pay ICBC insurance, they don’t pay BC ta xes and they don’t pay WorkSafe BC,” he explained. “T he whole d i fference ca n add up to 20 percent quite easily, which is a real advantage for these contractors. This isn’t a new problem but one that’s been going on for decades.” T he ESBC as an industry champion has seen firsthand how the current slump in the sector has directly impacted the industry. The organization’s website currently has just over 140 companies listed, dow n from a peak of 340. The group had operated a satellite office in Fort Nelson, but has since elected to close it, focusing on serving its membership from its main Fort St. John office. “One of the problems is that the BC government has laws in place to deal with this problem, they’ve had them for decades but they are just neglecting to enforce them,” Jarvis said. “The key to the success of our membership is recognizing the value of having a united voice. Our members include trucking compa n ies, sa fety compa nies, fabricators, suppliers and of course companies directly

By some estimates if LNG were approved immediately it might take four or five years to construct the infrastructure involved in the oil field itself.” As someone who works with the industry daily Jarvis has seen how the current downturn can have a dramatic impact. “Fort Nelson for example has been suffering for many years, but in the last two years they’ve lost 58 percent of their businesses. They’re hurting. Even here in Fort St. John things are tough. Up until two Novembers ago things were good but then we started on the downslide. People are losing their houses here and companies have been forced to close their doors,” he said. “If one word were to categorize the industry I’d have to say that word would be peril. The whole industry is in peril. The industry is in a valley not a peak, but I’d like to think that we’re at the bottom of the valley, the question is how long will we be there?”

For Bill Streeper, the Mayor of Fort Nelson, the slump in the oil and gas sector has hit his community very hard. “I can tell you that industrial rentals for buildings and real estate is down 58 percent. We’ve had major oil field companies that had been located in Fort Nelson for more than 50 years that are now gone,” he said. “There used to be a time when our children could go out, go to university and come back and get a job in town, that’s not the way anymore. The oil companies have shut their doors, they’re not hiring anybody. So now when they go out and they get an education they don’t come back. The local family structure up here has never seen this before and it’s causing a lot of problems.” Streeper said his community’s population has dropped during the past two years from 6,800

The primary oil and natural producing areas of BC are centered in the northeastern corner of the province residents to approx i m ately 5,200. “This decrease has happened since we started seeing this slowdown in the oil industry,” Streeper said. “How can we recover from a drop like that?” The resilient, community-focused nature of northern British

Columbia has helped it to endure where other parts of the province might have given up. The one certainty of the situation is that oil and gas prices will eventually rise and with it the SEE OIL & GAS | PAGE 9

COMPANY USES SKILLS & TECHNOLOGY TO PROTECT THE ENVIRONMENT SPOTLIGHT

Titan Environmental Containment: Industry Leader In Industrial Site Preparation

Titan Environmental Containment enters its second decade proud of its past, confident in its present and anticipating the future

INNIPEG – Industry and commerce powers the modern world, but industry unchecked can (and tragically has) wrought untold environmental damage. Keeping the engines of commerce running smoothly while minimizing environmental risks generated by modern day infrastructure development is at the heart of everything that Titan Environmental Containment does. Founded a decade ago by Brett Burkard, Kelly Sitarz and Ron Skrobutan this enterprise is a leader in the selection, supply and installation of state-of-theart products designed to help protect the environment and support critical infrastructure worldwide. Wit h a M a n itoba head office and locations throughout Canada, from British Columbia across the Prairies to Ontario, the Titan team has become the acknowledged experts in the selection and installation of a wide range of geosynthetic materials

as well as a host of other civil construction products. These include such industry leading technologies as geomembrane liners to prevent wastewater lagoon and landfill seepage; geotextiles for soil stabilization and filtration; geogrids for road, slope and soil reinforcement; erosion and sediment control products that protect soil structure and waterways; water drainage products; secondary containment systems to help protect t he g rou nd f rom h a za rdous leaks or spill and storage tanks for liquid and dry bulk product containment. Launched in 2006 to service the agricultural sector, Titan’s system s a nd sk i l l s a re now routinely called upon to work within a broad spectrum of industries ranging from mining to

Titan Environmental Containment’s owners: (l to r) Brett Burkard, Ron Skrobutan and Kelly Sitarz municipal water and wastewater management and road building. Right from the start the company was founded on a business philosophy that stressed unparalleled safety standards and stringent environmental awareness. An ISNetworld Registered Contractor, Titan is also a fully COR™ (Certificate of Recognition) Safety Certified company, while its team of experienced welding technicians are all certified through the Association of Geosynthetic Installers (IAGI). Having a proven track record of success, an understanding of the needs of industry that can only come from its extensive experience and a finger on the pulse

Installing a tank liner is a regular assignment for Titan Environmental, a system designed to prevent seepage of emerging technologies, it’s no wonder Titan Environmental Containment numbers some of North America’s industry leaders among its list of satisfied customers. The catalog of business giants that can attest to Titan’s foresight and skills include: the Canadian National Railway (CN Rail), Alta Gas Ltd., Suncor Energy, TransCanada Corporation (TransCanada pipeline), Graham Industrial, Lafarge, and many others. Having worked on projects a c ro s s N o r t h A m e r i c a a n d

beyond, Titan has the technical skills, experienced and qualified staff, industry awareness and technological savvy to embrace and fulfill any environmental containment challenge wherever it is found. Never swaying from its founding goal of providing Trust, Quality and Value – Titan Environmental Containment enters its second decade proud of its past, confident in its present and anticipating the future. To learn more please visit the company’s website at: www.titanenviro.ca

OIL & OILFIELD SERVICES

JUNE 2016

International studies have projected an increased, long term demand for oil and natural gas

OIL & GAS CONTINUED FROM PAGE 8

industry as a whole will improve. As a further bonus if large scale projects such as Liquefied Natural Gas (LNG) are eventually approved and if a rising global demand for oil and gas sparks an increase in prices the area could return to the boom days that helped open the region in the first place. One key, according to Jarvis is for the government to take the necessary steps to allow the province’s oil and gas sector to compete fairly against out of province competitors.

TIMBER FALLING

“ It’s a lw a y s m a d d e n i n g to k n o w that you ow n a busi ness a nd you look out your back window and see a similar business doing the work and k now it isn’t pay i ng its fa i r sha re,” he sa id. “I’d like to make people aware of the work we’re doing (at Energy Services BC) and to make it crystal clear that we’re not intending to keep Albertans out. We welcome competition, but it has to be on a level playing field and that’s what we’re fighting for.” To learn more please visit the firm’s website at: www.energyservicesbc.org

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MOVERS & SHAKERS

JUNE 2016

Downie was the recipient of a province-wide community service award at a ceremony in Victoria on May 26. The award was sponsored by the BC Achievement Foundation.

Dawson Creek Jason Lajeunesse, Dawson Creek’s lone garbage collector, has been recognized as Western Canada’s driver of the year.

Sheila Pretto is retiring this month from the Terrace Child Development Centre after working there for 38 years.

The team at South Peace Animal Hospital are welcoming Dr. Jaleena Neufeld to their practice. They are located at 1500-101 Ave. Rip’s Shoe Re-nu welcomes Tom Brogan as their new cobbler. They are located at the Dawson Co-op Mall, and can be reached at 250-782-8283.

Kitimat TransCanada has received the final provincial permits for the construction of their Coastal GasLink natural gas pipeline. They will begin work on the pipeline in 2017. Rob Austin, Skeena NDP MLA, is retiring after next May’s election. He has been representing the area since his nomination in 2004. LNG Canada and the BC Construction Association (BCCA) have worked together to create the Skilled Trades Employment Program (STEP), which resulted in the placement of 50 trades workers in the Terrace and Kitimat region. The Kitimat Multicultural Society celebrated their 40th Anniversary this May. The Haisla Lands Advisory Committee has sworn in their new members. The committee is comprised of Elizabeth Robinson, Brent Robinson, Sherry Smith, Marilyn Furlan, Fred Ringham and Cyril Grant. Ledcor and the Haisla Nation have formed a new partnership where Haisla members will have new opportunities for employment and training. Kitimat DisABILITY has partnered with Dairy Queen, Mr. Mikes, Rosario’s, and Constant Cravings. They have supplied Trip Trapp chairs to each of these establishments. Kitimat Valley Institute has promoted Sherrie Little to to rank of President and CEO. Sherrie has been working with the organization for 4 years, spending the last 14 months as interim President and CEO.

Quesnel West Fraser has announced that MDF at WestPine will open and resume manufacturing by October of this year. The mill shut down in March due to a fire, and is undergoing reengineering to prevent any further incidents. Gloria Jackson, trustee for the Quesnel Board of Education, has been elected to the Board of Directors of the British Columbia

School Trustees Association (BCSTA). Better at Home, owned by Brenda Gardiner, is celebrating their third anniversary of operation. Dr. Andrew Eberding has joined the team at Green Tree Health and Wellness. Eberding is a Naturopathic Doctor and Prolotherapist. The Quesnel Primary Care Clinic is now officially open for service at their Front Street location. Barkerville Historic Town & Park has hired Kiley Sales as their new Commerce, Partnerships and Giving Officer. This May marked the 10th anniversary of the Quesnel Youth Soccer Association’s Indoor Sports Center. Longtime Quesnel resident, Pam Devereaux, is the newest realtor at Remax Quesnel Realty. On May 30th, Hub Insurance Brokers held the grand opening for their location at #700 855 Rita Road. Active Rent-All has a new location, and can be found at 1905 Hwy 97. Literacy Quesnel held their grand opening of their used book store on June 1st. They are in the Child Development Centre Building at Suite 206, 488 Mclean Street. The North Cariboo chapter of B.C. Hydro Power Pioneers recognized Quesnel resident Lee Verge with a Power Pioneer Community Service Award. The Quesnel Lake fish tagging program, lead by biologist Lee Williston, won the Habitat Conservation Trust Fund’s Silver Award.

100 Mile House Ruth Peterson, president of the 100 Mile House Mural Society, has won a BC Community Achievement Award from the BC Achievement Foundation. The award recipients were recognized at a formal presentation in Victoria on May 25. Jeremy Hannaford has joined the editorial staff at the 100 Mile House Free Press. The 100 Mile House RCMP Detachment on Alder Avenue held

a grand opening celebration on May 7 for their new building. The 841 Alder Avenue building is nearly three times larger than the old detachment. The Lac la Hache Tomahawks will not be participating in the CIHL’s (Central Interior Hockey League) 2016/17 season. This year marks the 50th anniversary for the Little Britches Rodeo, which took place on May 21-22. United Floors at #2 345 Birch Avenue are closing down their business. The Corral Western Wear and Tack celebrated their grand opening on May 7. They are located at 120 Airport Road. The Hanger, a restaurant at the 108 Resort, is now open. They are located between the 108 Airport and the Mail Kiosk. Royal LePage 100 Mile Realty welcomes Sean Dirkson, Ali Williamson, and Tamara VanLoon to their sales team. Find out more at www.100milerealty.com. The 100 Mile House Lions House Club celebrated their 60th anniversary at the end of April. Located outside Loon Bay Resort, the Saturday Farmer’s Market is celebrating their 20th anniversary. Vendors are referred to Joan Rezansoff at 250-593-2353. 100 Mile House Free Press editor Ken Alexander was awarded second place in the British Columbia & Yukon Community Newspapers Association annual editorial writing competition. The 100 Mile & District General Hospital Ladies Auxiliary celebrated 50 years on June 1st. The South Cariboo Health Foundation (SCHF) is saying farewell to vice chair Mary Shennum. She will be replaced by Chris Nickless. The South Cariboo Regional Airport has received a donation of two runway sweepers from the Kamloops Airport. This gift was made possible by the Federal Government’s Airports Canada Assistance Program. RE/MAX Country Lakes Realty is opening their new location at 811 Alder Avenue.

The Ag Centre Society moved from their 98 Cecil Place location into Agriplex. Kamloops Truss Ltd., located at 7251 Levick Rd., welcome Sue Connaty to their team of Engineered Wood Specialists.

Fort St. John Dan Kazymyrskiy is the new finance director for the City of Fort St. John. Kazymyrskiy has previously worked in the finance sector in both Nunavut and Toronto. Fort St. John’s new elementary school was recently named by School District 60 trustees. They voted to name the school the Margaret ‘Ma’ Murray Community School, after the co-founder of the Alaska Highway News. The City of Fort St. John recognized Frank Thomas for his 10 years of service. Northern Lights College has been granted $150,000 from the BC Government to fund training for workers at the Chetwynd Mechanical Pulp Mill. The training will help employees maintain financial stability in the midst of the economic downturn. NLC has also added classroom courses to their Early Childhood Education and Care Diploma. BC Hydro has opened a health clinic at the Site C dam to provide care during the construction period. Fort St. John’s City Council has approved a 50/50 cost share for the construction project on 91st Avenue.

Terrace Futurpreneur Canada and Prince Rupert LNG presented awards to several young entrepreneurs at their event in May. The winners were: for Best New Business, Bobby Middleton for The Saw Shack, and the runner-up in the same category was Jill Whitfield. Heather Bohn, owner of Our Roots, took home first place in Best New Social Enterprise. Kristine Ewald and Simone Crook, founders of Transcend Fitness were honoured as the Best Growth Opportunity. Transcend Fitness also won the Audience Award, and Johanne Chaine of Peoples Pharmacy took home the runner up prize. A Terrace city councillor Brian

Do Your Part Recycling Co. is celebrating their 10th anniversary, located at 3467 Hwy 16 East. The local company is available to pick up business and residential recycled materials. The Terrace Kinsmen’s Kin Kamp was recently demolished to make way for a children’s camp. The new camp will have a number of stand-alone cabins, possibly six to eight that can sleep about 60 people, a concrete washroom building with a utility room attached and a cookhouse. Northern Native Broadcasting, the parent company of CFNR, has applied to expand with two radio stations in Vancouver. Art Erasmus received the Service Above Self Award for his service to the community as a part of the Terrace Rotary Club. The award is rotary’s highest honour and recognizes up to 150 rotarians each year who demonstrate their commitment to helping others by volunteering their time and talents. Tamara Berg will be stepping in as the new principal of Veritas Catholic School as Dave Crawley is retiring his post.

Prince Rupert Andrea Pollock recently won $2,500 for her business, Island Sugar in the Thrive North Business Challenge earlier this month. Hans Seidemann and Aaliyah Mahboubi won $1,000 each at the Third Annual 2016 Skeena-Nass Centre for Innovation in Resource Economics Northwest Innovation Challenge. Redesign Rupert is ramping up activity as part of its public engagement progress. The organization, a partnership between the City of Prince Rupert, Community Futures and UNBC’s Community Development Institute (CDI), launched its Community Mapping Project recently at Javadotcup. Carl Kafka, Registered Denturist is celebrating the 20th anniversary of his practice in Prince Rupert. Richard and John Evans hosted an information gathering May 4 to note the 25th anniversary of their Re/ Max franchise in Terrace. Using that city as a base, John Evans has now expanded to become the principal broker of the Re/Max franchise in Prince Rupert.

SEE MOVERS & SHAKERS | PAGE 12

MOVERS & SHAKERS

MOVERS & SHAKERS CONTINUED FROM PAGE 11

Pacific Northwest LNG has a new president at the helm. Petronas, the Malaysian-based leader of the LNG consortium, which proposes to build an $11.4 billion LNG export facility on Lelu Island off of Port Edward, named Adnan Zainal Abidin the new president of the project. Replacing Michael Culbert, who returned to Progress Energy Canada Ltd. as fulltime president and CEO, Abidin now moves from his role as vicepresident of global LNG projects to Pacific NorthWest (PNW) LNG president. Royal LePage Prince Rupert is pleased to introduce their newest realtor Gina Do. Sherwin-Williams celebrated their grand opening on May 14th; they are located at 701 3rd Avenue West.

has retired. She will be replaced by Melany de Weerdt, who will officially take over the position on January 1, 2017. Glacier Toyota welcomes Bryan Henry to their team. The Interior News Senior Reporter Alicia Bridges has moved to Saskatoon, SK to work as a reporter for the CBC.

Ltd. They are located at 180C N 3rd Avenue.

Rita Meadows and Christianne Ouellet have joined the team at Esquire Barber Shop. They are located at 60 Oliver Street.

Cariboo Memorial Hospital recently purchased a new digital mammography unit.

May 15 marked the 25th anniversary for Smithers and District Transit. New Hazelton’s Laurie Gallant and Bill Cross took home the commercialization prize from Thrive North at the Northwest Innovation Challenge.

United Concrete and Gravel Ltd., owned by Paul and Sue Zacharias, is still open for business after a fire on their facilities. They can be found at 245 Hodgson Road.

Houston

There’s a new registered massage therapist in town. Diana Watt, R.M.T., B.Ed. has opened a practice at Chiropractic Associates & Health Clinic, 72 South First Avenue.

Smithers The 204 Babine Royal Canadian Sea Cadets celebrated their 50th anniversary.

On June 25, Houston’s only supermarket, Super Valu, will shut down operations.

Local businessman Christopher Howard has been appointed to the Bulkley Valley Economic Development Association’s board of directors.

Williams Lake

After 27 years with the Regional District of Bulkley-Nechako (RDBN), current CAO Gail Chapman

90th anniversary. The event is to take place from June 30-July 3.

As of May 15, the McLeese Lake Farmers Market is now opened for its third year in business. The market was started by Jan and Bill Borgen, and can be found between the Oasis Pub and the McLeese Lake Tourism Information Centre.

There was a fire at the Houston Pellet plant on May 14. The company is currently conducting an investigation of the incident.

Dr. Kate Dalrymple has opened Williams Lake Optometry at 360B Proctor Street. This year, the Williams Lake Stampede will be celebrating their

JUNE 2016

Dave Dickson was awarded the Medal of Good Citizenship at Williams Lake City Hall on May 24. The initiative was launched by Premier Clark in July of last year. The Williams Lake & District Chamber of Commerce welcomes new members: Central Chiropractic, go2HR and Whispering Willows Campsite. Ryan Jensen is the newest member of the team at Williams Lake’s Raymond James Financial Planning

The Williams Lake Tourism Discovery Centre has been selected as one of RVwest’s top four tourist information centres for 2016. The list was selected by votes from RVwest magazine readers. Local city councillor Laurie Walters has been chosen as second vicepresident for the North Central Local Government Association. FYI Doctors Williams Lake, led by Dr. Andrew Roy, is celebrating their 20th year in business. Roy took over leadership of the practice in February following the retirement of founder Dr. Dan Derksen.

Prince George Samantha Wright Allen, reporter for the Prince George Citizen, won the John Collison Memorial Award for Investigative Journalism for her Living With Brain Injury series. The Prince George Natural Resource District celebrated the planting of their billionth tree since 1959. Dave Eddy and Jody Tindill, owners of Belledune Homes, were recognized at FortisBC’s Efficiency in Action awards in the single family

builder category. The Emergency Dental Outreach Clinic at the Prince George Native Friendship Centre celebrated their 10th anniversary this May. The Best Life Network has begun hosting Connected Conversations events. The next event will occur at June 8 at Books & Co., 1685 Third Ave. The rezoning of a 12-hectare land parcel at 6161 Otway Road has been approved by Prince George City Council. Prince George will be getting a new Marriott Courtyard hotel. It will be located next to the Prince George Public Library, and is being developed by PEG Development. The Prince George Cougars have announced that Richard Matvichuk will be the team’s new head coach. Matvichuk was coaching the Missouri Mavericks (ECHL) in Kansas City, MO for the past two years. UNBC celebrated their 26th convocation this month. During the ceremony, they installed former MP James Moore as the University’s chancellor. Marilyn Marquis-Forster is School District 57’s (Prince George) new superintendent. She has previously served as superintendent for the Swan Valley school division in Manitoba.

OPINION

JUNE 2016 A division of Invest Northwest Publishing Ltd. Prince George Office 2871 Wildwood Cres Prince George, BC V2K3J4 Toll free: 1.866.758.2684 Fax: 778.441.3373 Email: info@businessexaminer.ca Website: www.businessexaminer.ca

PUBLISHER/EDITOR | Lise MacDonald, lise@businessexaminer.ca SALES | Shawn Bishop, shawn@businessvi.ca; Josh Higgins josh@businessvi.ca; Joanne Iormetti, Joanne@businessexaminer.ca WRITERS | Goody Niosi, Beth Hendry-Yim, John MacDonald WEBSITE | John MacDonald, john@businessexaminer.ca

RAISING THE MINIMUM WAGE: WHO DOES IT REALLY HELP? It really only helps entry level employees minimally, for a short period of time, until inflation eats away the increase MARK MACDONALD

u r prov i ncia l government re c ent ly a nnounced it will raise the m i n i mu m wage from $10.45 an hour to $10.55 an hour this September. It’s only 10 cents and should be an hour, which sounds fairly insignificant. No doubt this is in response to labour’s call to hike it to $15 per hour, and proponents of the $15 fig ure – which is also being f loated i n t he Un ite d S t ate s – w i l l undoubtedly complain it isn’t nearly enough. Some questions to ask: Who really benefits from a rise in the minimum wage? And why just $15? W hy not $25. . .$35 per hour? Why not $70,000 per year, each? In April, 2015, Dan Price announced that his Seattle-based e-commerce company, Gravity Payments, was going to pay all of its employees $70,000 per year by 2017. Price received innumerable favourable articles about his bold decision to pay everyone from receptionists to the high tech experts exactly the same.

Many wonder aloud: Is this the new standard for all companies? Is it a publicity stunt? A social experiment?

The jury is still out. W hat we do know is that Price, who cut his own $1.1 million per year sa la ry to move towards the $70,000 rate, announced he was going to mortgage properties and emptied his retirement savings to pour it into the company to help with the changeover. One problem: Financial institutions wouldn’t allow him to mortgage his properties, due to a law suit launched against P rice by h is brother, Lucas. A 30 per cent shareholder in G ra v i t y, L u c a s a p p a re n t l y didn’t appreciate finding out how many zeroes Dan was putting on his own paycheque. Looking ahead, the value of t he compa ny i s deter m i ned by its profitability, and while Gravity is still profitable, the profit percentage has slipped significantly. T hat also puts L u c a s’ i n v e s t m e n t a t r i s k . There are now serious concerns that the company may not have enough profits i n reserve to cover the cost of any possible settlement between the brothers. That could put the entire company at risk. Several highly skilled members of the Gravity staff have left, reportedly feeling resentful because the work and investment they’ve put into their own development no longer rewarded them. One comment was that the move “shackles high performers to less motivated team members.” It will be most interesting to see how this story ends. To t h e j a d e d , r a i s i n g t h e

minimum wage is a populist move employed by politicians to gain votes with the masses. Which employee/voter won’t appreciate getting paid more for doing the same job? But one must scratch below the surface to see what really happens when the minimum wage rises. In very real terms, all it presents to workers is a six-month-give-or-take pay advantage – until the results of these i ncreased costs a re absorbed in the marketplace. Not to mention the eventual complaints from other workers who were making just over minimum wage, who now want their pay hiked to reflect their training, i.e. Gravity. They can’t work for minimum wage any longer, can they? So really, a minimum wage hike likely means increases for other staff for the business owner to absorb. It usually takes a matter of months before consumer costs rise to cover the increased expense for the minimum wage paying small business owner. It always results in the price of food going up to cover those costs, and increased prices in any number of goods and /or services. W hen t he m i n i mu m wa ge goes up, companies have their choice of one or two th ings: Raise their own prices to cover their newly increased costs, or reduce staff hours. If they find that the marketplace can’t or won’t support the new pricing, then their only other choice is to cut back on either the number of staff, or how many hours

are made available to workers. Fo r b u s i n e s s e s to re m a i n open, they must be profitable. P rofit is not a d i rty word to the business owner: It is the reward for hard work and necessary for survival. It is payback for hard work, and a pool of resources for possible rainy days ahead. M i n i m u m w a ge p o s i t i o n s are never meant to be family s u p p o r t i n g , “ l i v i n g w a ge” jobs, despite l abou r cl a i m s to the contrary. Neither can t hey b e. T hey ty pic a l ly require a m inimum amount of t ra i n i n g a n d s k i l l , a n d t h e government-mandated minimum gives businesses some certainty in regards to fixed c o s t s. M i n i m u m w a ge job s a re a lso t remendous i ncentive for employees to obtain more training. So again we ask: Who benefits from a hike in the minimum wage? It really only helps entry level employees m i n i m a l ly, for a short period of time, until inflation eats away the increase. Who it really helps most is the politician or labour leader who can it use as a demonstration of what they’ve advocated for on their behalf. I n rea l ity, however, it h a s done little, if anything to help those for whom it is intended. P rog ra m s l i ke t he Ca n ad aBC Job Grants are much more beneficial, as they help raise skill levels so people can obtain better, highly skilled and higher paying jobs – so they can truly get ahead.

CANADA’S SMALL BUSINESS OWNERS ARE FOUR TIMES MORE LIKELY TO BE LOW INCOME THAN RICH The profile also shows that small business owners are much more likely to work longer hours than employees

CFIB RICHARD TRUSCOTT

ust like Canadian workers, the vast majority of Ca nada’s small business owners are firmly entrenched in the middle class, according to the latest small business profile from the Canadian Federation

of Independent Business (CFIB). Data from Statistics Canada show that two-thirds of Canadian small business owners are earning less than $73,000,

a nd employers ea r n i ng less than $40,000 outnumber those earning more than $250,000 by four to one. T he findings refute the notion that a large percentage of small business owners are the wealthy using small businesses to dodge taxes, and make the case to reinstate the promised small businesses tax rate reduction eliminated in March’s federal budget. “The notion that most small business owners are rich, or part of the ‘one per cent’, is pure fiction,” said CFIB president Dan Kelly. “The simple truth is Canada’s small business owners a re over whel m i ng ly m idd le class. They are your mechanic, accountant, hair dresser and landscaper, just trying to earn a living doing something they

love.” The profile also shows that s m a l l b u s i n e s s o w n e rs a re much more l i kely to work longer hours than employees. More than 40 per cent of small business owners work 50-plus hours a week. Only six per cent of employees are in the same category. “Part of the reason small business owners don’t take home huge salaries or dividends is because they reinvest any profits back into their business and their employees through training programs, salary increases, new hires, or equipment purch a ses. H av i ng a low sm a l l business tax rate helps them to do just that,” added Ted Mallett, CFIB chief economist. “It helps them grow and keep Canada’s

economic engine running.” Despite popular misconceptions, the small business tax rate does not encourage businesses to stay small. Very few businesses earn even close to the $500,000 threshold - that would introduce them to a higher business tax bracket. In fact, 85 per cent of small businesses could double their net earnings and still not be exposed to the higher rate. The profile was generated from the latest data from Statistics Canada’s National Household Survey, the Survey of Labour and Income Dynamics and other sources. Richard Truscott is the Vice President of BC and Alberta for CFIB

SUBCRIPTIONS | $45 PER YEAR (12 ISSUES), $80 FOR 2 YEARS (24 ISSUES), SUBSCRIBE ONLINE: WWW.BUSINESSEX AMINER.C A . DISTRIBUTION: FOURTH WEEK OF EACH MONTH VIA C ANADA POST AD MAIL. The publisher accepts no responsibility for unsolicited submissions. The views and opinions expressed in this publication are not necessarily those of the publisher. Produced and published in British Columbia. All contents copyright Business Examiner Peace Cariboo Skeena, 2016. Canadian Publications Mail Acct.: 40069240

NORTHERN BUILDING AWARDS

JUNE 2016

WINNERS CELEBRATED CONTINUED FROM PAGE 1

BC Northern Real Estate Board Commercial Council. MNP LLP, the Business Development Bank of Canada also sponsored the event. Radio personality Carol Gass of Cou nt r y 97F M i n P r i nce G eorge emceed t he event, which drew a large, enthusiastic crowd. The Award of Excellence winners in each category were:

Calvin Kruk Centre For The Arts of Dawson Creek was the Best Overall Judges’ Choice winner at the Northern BC Commercial Building Awards

Sandra Rose of the Business Development Bank of Canada presented the awards in the Industrial category of the Northern BC Commercial Building Awards June 2 at the Ramada Hotel in Prince George

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Com mu n ity I nst itut iona l: Lakes District Hospital of Burns Lake. O f f ice Renovat ion: T r iton Environmental Consultants of Terrace. Retail Renovation: RBC Royal Bank of Prince George. Com mu n ity Recreat ion a l: Lakeside Multiplex of Burns Lake. Industrial: Macro Industries of Fort St. John. Hospitality: Microtel Inn & Suites of Kitimat. Retail/Shopping Centre: Prosperity Ridge Shopping Centre of Williams Lake. Retail: Northland Dodge of Prince George. Green Award: Passive House of Fort St. John. Awards of Merit went to: Com mu n ity I nst itut iona l: Chet w y nd D i s t r ict Cent re, Chetwynd. Office Renovation: Century 21 Energy Realty of Fort St. John. SEE WINNERS CELEBRATED | PAGE 15

JUNE 2016

NORTHERN BUILDING AWARDS

15 WINNERS CELEBRATED CONTINUED FROM PAGE 14

The Award of Excellence in Community Institutional went to Lakes District Hospital of Burns Lake. Surrounding Zoe Nunes of ICBA are Paul Rudecki and Travis Prystal

Andrew Adams, centre, of MNP LLP, presents the Award of Excellence in the Retail category to Dealer Principal Kyle Bachman, left, and Jim Meier, right, of Northland Dodge in Prince George

Retail Renovation: Integris Credit Union of Prince George. Industrial: The Rogers building of Fort St. John. R e t a i l : A l l-We s t G l a s s o f Prince George. Finalists were, by city: Prince George: Learning and Development Centre-University of Northern BC University Hospital and River Point Landing Shopping Centre. Fort St. John: NENAS (North East Native Advancing Society) building addition, and Recon Ventures. Wi l l i a m s L a ke: Ch i ld D evelopment Centre for Autism. 100 M i le Hou se: RCM P Station. The Calvin Kruk Centre For The Arts, built by Hegge Construction, was the revitalization of a historical building in the downtown core of Dawson Creek, converting an institutional building into an inspirational building. The multi-use community centre provides space for theatre, dance, pottery, child care, meeting spaces, music rooms, a café and much more. This revitalization of a historical building in the downtown core is versatile and unique, and was adapted for re-use to minimize its footprint. It is LEED Gold Certified. SEE WINNERS CELEBRATED | PAGE 16

WE’RE STANDING UP TO CREATE JOBS FOR B.C. FAMILIES

A Measure of Your Success As a sponsor of the Northern B.C. Commercial Building Awards, MNP celebrates the accomplishment of this year’s nominees. Committed to supporting and growing the commercial construction industry, we know your achievements are the result of hard work and dedication to building a brighter future for Northern B.C. A true measure of your success. Contact Andrew Adams, CPA, CA, CFP, (Prince George) at 250.596.8311

JOIN US AND HELP GET PROJECTS TO YES AT ICBA.CA INDEPENDENT CONTRACTORS AND BUSINESSES ASSOCIATION

NORTHERN BUILDING AWARDS

JUNE 2016

David Black of the B.C. North Real Estate Board Commercial Council with Master of Ceremonies Carol Gass at Northern BC Commercial Building Awards event

Josh Higgins, left, of Business Examiner Peace Cariboo Skeena, presents the Green Award to Moira Green, Director of Strategic Services for the City of Fort St. John for the cityâ&#x20AC;&#x2122;s Passive House

David Black, left, of the BC Northern Real Estate Board Commercial Council, presents the Award of Excellence in Retail/Shopping Centres to Adam Khong of Platform Properties for Prosperity Ridge Shopping Centre in Williams Lake

Zoe Nunes, left, of the Independent Contractors and Businesses Association, presents the Community Recreational Award of Excellence to Sheryl Worthing, CAO of the Village of Burns Lake

WINNERS CELEBRATED CONTINUED FROM PAGE 15

Burns Lake had two entries

and two Excellence Winners. Lakeside Multiplex combined two separate older structures consisting of an ice arena on

one side and a curling rink on the other. T he result was an additional 5,000 square foot str uctu re w ith a com mon

entrance to both, and added multiple sport facilities. Lakes District Hospital, b u i lt b y P C L Con s t r u c to rs

Westcoast I nc. i n the Community Institutional Category, SEE WINNERS CELEBRATED | PAGE 17

NORTHERN BUILDING AWARDS

JUNE 2016

Betty Barton, right, of Betty Barton Construction Ltd. receives the Award of Excellence for Triton Environmental Consultants in Terrace from Lisa Kemp of RE/MAX Commercial

Scott Bone, left, of the Northern Regional Construction Association, presented the Award of Excellence to RBC Royal Bank of Prince George

WINNERS CELEBRATED

finish material. Triton Environmental Consultants, built by Betty Barton Con st r uct ion Ltd., won t he Office Renovation category, and was lauded for the dramatc

CONTINUED FROM PAGE 16

was situated and designed to capitalize on views of Burns L a ke a nd t he su r rou nd i ng

area. T he use of curtainwall at lobbies, combi ned w ith a central atrium, maximize natural light within the facility. It features the creative use of wood both as a structural and

impact the building has had on the R iverside area of Terrace. Even during construction, nearby residents began pa i nti ng thei r homes, tidying their yards and repairing

17 long-neg lected fences. T he remarkable transformation of th is derelict property into a sleek functional office building has had implications for the ongoi ng renewa l of th is area of the city, which is now a landmark. IDL Projects Ltd. built both Award of Excellence projects in Prince George. Retail Renovation winner RBC Royal Bank in Prince George, was feted as the façade renovation was the first of its kind in North America utilizing a unitized curtain wall (triple pane) integrating stone veneer panels into the curtain wall system. The Royal Bank has always been a landmark building in Prince G eorge a nd now has a modern, fresh new look that is very energy efficient. Northland Dodge was the Excellence Award winner in the Retail category, and is the largest car dealership in Northern BC at approximately 63,000 square feet. It is a very modern facility in all aspects, with special attention to details for customer satisfaction and quality of working environment for all Northlands staff. T he facility was constructed with 90 per cent of the trades local to Prince George. T he Official Book of the awards, featuring photo and descriptions of all finalists, is available online at: https:// issuu.com/markmacdonald36/ docs/2016_nbccba_pagesa

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All West Glass Northland Dodge Integris Credit Union River Point Landing Prosperity Ridge Lakes District Hospital

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The Northern Regional Construction Association (NRCA) is dedicated to the promotion of construction investment, standard practices and high standards in the construction industry. The association speaks on behalf of all sectors of the industry on concerns with the government, design and tendering authorities and the public.

The NRCA is committed to the principle that industry participants share a common interest and believes that united action will provide benefits to the construction industry and the economy as a whole.

The Northern Regional Construction Association has been a trusted provider of construction information – our core member service – for over 50 years. The NRCA team is focused on reporting on all type of construction opportunities in Northern BC, advocating on behalf of its members, providing training courses for all levels within the construction industry, and hosting networking events with key players in the construction industry.

For more information on NRCA membership, email: info@nrca.ca

JUNE 2016

BDC is pleased to be associated with the 2016 Building Awards. We congratulate all the nominees and winners for their oustanding contributions and achievements.

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Entrepreneurs need more than financing. They also need specialized advice, adapted to their unique needs. This is why we offer consulting services to help business owners accelerate growth, improve productivity and build organizational capabilities purchase commercial real estate, buy new or used equipment, invest in technology and a variety of other business needs. We do this by complementing the role played by private-sector financial institutions and we work in partnership with them to find the best solution for each business. T h rough ou r subsid ia r y—B D C C a p i t a l , w e offer a full spectrum of specialized financing, including venture capital, equity as well as growth and business transition capital. Entrepreneu rs need more t ha n f i na nci ng. They also need specialized advice, adapted to

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JUNE 2016

Northern BC Real Estate Market Increasingly Active Out of Region Buyers Becoming Significant Part Of The Marketplace BY DAVID HOLMES

UESNEL – Covering a v a s t a re a , N o r t h e r n British Columbia is l a rger t h a n m a ny Eu ropea n cou nt r ies. Across such a n ex pa nsive a rea it’s not su rprise that variations in market trends can be experienced – that’s certainly the case when the d iscussion tu rns to rea l estate sales activity. “Overall I’d have to say that we’re looking at a positive year so far in terms of real estate s a l e s ,” e x p l a i n e d W i l l i a m Lacy, P resident of t he British Columbia Northern Real Estate Board (BCNREB) Board of Directors. “T he southern areas of the nor th, P ri nce G eorge a nd sout h to Q uesnel, Wi l l ia m s Lake and 100 Mile House have a l l been qu ite act ive so fa r. This is due in large part to an early spring that has helped to bring house hunters out earlier than normal.” A REALTOR® with RE/MAX Q uesnel Rea lty for t he pa st five years, Lacy assumed t he role of pre sid ent at t he

beg i n n i ng of the yea r, a f ter having served as the board’s President Elect for a year. For h i m t here i s a d ef i n ite d i fference between t he nor t hern and southern portions of his Board’s coverage area, with what he describes as the “ n o r t h n o r t h” b e i n g t ra dit ion a l ly slower i n ter m s of sales. Lacy has noticed that thanks to there being a large invento r y o f p ro p e r t i e s fo r s a l e i n t he reg ion (nea rly 4,000 homes are listed in the BCNR EB’s Mu ltiple L isti ng Serv i c e ® ( M L S®) d a t a b a s e), homes t h at a re att ract ively priced as compared to those in the Lower Mainland, there is increased interest from out of region buyers. “There’s definitely some ripple coming up from the Lower Mainland, especially into the southern regions such as 100 Mile House and increasingly into the Williams Lake area,” he explained. “Buyers are coming up from the south, retirees who have had it with big city life and are cash i ng out t hei r pensions.

But we’re also seeing younger people who have recognized that it will be harder or downright impossible for them to afford a home in Vancouver or Victoria. “ Aside from excellent properties va lues a nd a ffordable prices, lifestyle considerations are another component of the southern region’s attraction for new arrivals. “We’ve had a lot of people looking for places to raise their families. T hey are looking for that nice small community and this area has a lot to offer them. The Cariboo in general has really become attractive to many, thanks to the uniqueness of the terrain, there are so many zones it’s a kind of natural wonderland.” The more northern parts of the BCNREB’s coverage area, e s p e c i a l ly i n n o r t h e a s te r n British Columbia are experiencing a slowing in real estate sales activity linked in large part to the current downturn in the province’s oil and gas sector, a major regional employer. For L a cy t here’s no quick or easy fix for the situation. “T hey’ve been hit hard

because of the oil and gas indu s t r y b ut R E A LT OR S® up there have seen some positive sig ns, the fi rst for a wh i le,” he said. “T he sa les have sta r ted to creep up, so they are g uarded ly opt i m i st ic t h at t h i ngs will improve. There are whispers in the region that some of the big players i n the i ndustry w i l l be ma k i ng some announcements this year and if that comes to pass we could see some noticeable improvement in the marketplace.” For L a cy t he re si l ienc e of the residents of northern BC, their strong community links and loyalty, are a big part of the explanation for their ongoi ng success. For L acy it’s the region’s history of enduring Boom and Bust cycles that have helped to equip the region to better endure market f luctu at ions. “It’s boomed, it’s busted and they know it’s going to boom again. It’s just going to be a matter of time,” he said. “T hey’ve a l l been th roug h it before so they know how to hunker down and they realize

it will be booming again once things come back online.” D i s t i nc t ive, re si l ient, pio n e e r i n g a n d c o m m u n i t yfocused the residents of Nor t her n Br it i sh Colu mbi a a re faci ng the f utu re w ith a guarded view that things will b e get t i n g b et ter. For L a cy a nd t he reg iona l rea l estate sales market, the area’s unique natural location, the range of services, amenities and available properties – coupled with exceptional prices – will mean continual but gradual real estate sales growth in all areas of the north. “ We’re look i ng at a not her exciti ng yea r for rea l estate sales in the north, regardless of the econom ic d i fficu lties that we’re seeing,” Lacy said. “It’s clearly more active than it was at this point last year a nd I t h i n k we c a n see t h at trend continue right through into the fall. It’s been steady, it’s b een act ive a nd I t h i n k with new out of region buyers things will get even busier.” To learn more please visit the real estate board’s website at: www.bcnreb.bc.ca

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