Business Examiner Vancouver Island - November, 2018

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NOVEMBER 2018

NOVEMBER 2018

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Nuu-chah-nulth Earns Business Partnership Of The Year Honour

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10th Annual BC Indigenous Business Awards Celebrates Best In The Province BY MARK MACDONALD BUSINESS EXAMINER

CHEMAINUS After 130 Years, NFE Manufacturing Keeps Eyes on the Future

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INDEX News Update

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Nanaimo 9 Comox Valley Campbell River

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uu-chah-nulth Seafood Limited Partnership was named Business Partnership of the Year at the 10th Annual BC Indigenous Business Awards October 15 at the Fairmont Hotel Vancouver. Ucluelet First Nation is one of six nations involved in the partnership, based in Port Alberni, which is partners in the St. Jean’s Cannery & Smokehouse in Nanaimo. St. Jean’s has been in business for over 50 years on Vancouver Island, and started as a backyard canning operation in 1961. It is now the largest tuna and salmon cannery in Canada and the only full-service processor catering to the sport fishing enthusiast in BC.

SEE T’SOU-KE FIRST NATION |  PAGE 32

The Nuu-chah-nulth Seafood Limited Partnership was well represented as it picked up the Business Partnership of the Year at the BC Indigenous Business Awards

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ANAIMO - Graphic Office Interiors is offering clients nearly infinite possibilities when it comes to office furniture and design. Now over 50 years old, the company’s Victoria and Nanaimo locations offer design, installation & moving, warehousing, and flooring installation services to the whole Island. By using cutting edge software like AutoCad, CET, and Google Sketchup, the company’s

d e si g ners a re able to br i n g a cl ient’s v ision to l i fe w ith photo-realistic 3D interior renderings and 2D reference plans. “Our furniture design, order management, project management, installation, and closeout is all done internally,” says owner Steve Nagy. “Most of the manufacturing is done by Steelcase, with whom we are a premier partner.” T he company is Vancouver Island’s only Steelcase dealer,

which means they are able to offer some of the most customizable furniture to offices throughout the region. “Steelcase holds over 1,700 patents for their products, and invests a huge amount into research and developments,” says Nagy. “They aren’t just looking to capitalize on trends. They’re pushing the boundaries, coming up with useful, innovative products that benefit millions of customers.

“Steelcase is also one of the largest furniture manufacturers in the world, and is worth over $3 Billion. As part of their strategic partnerships, they have partnered with several large companies, including west elm and Mitchell Gold + Bob Williams.” Nearly 25 per cent of Steelcase shipments are custom-made furniture, and the company is frequently applying for new patents. SEE GRAPHIC OFFICE  |  PAGE 38

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Catalyst Paper Sold To Paper Excellence Catalyst Paper, which has mills in Crofton, Port Alberni and Powell River, has sold to Paper Excellence Canada (PEC). The acquisition which includes all of Catalysts assets is still subject to the approval of the Supreme Court of British Columbia as well as the approval of at least twothirds of the votes cast by Catalyst shareholders at a special meeting that has not yet been held. The sale is anticipated to close by the beginning of 2019 and details of the sale price have not been disclosed. PEC will assume all Catalyst’s obligations to their employees, which includes pension plans, as part of the deal. The purchase of Catalyst follows regulatory changes made by the provincial government in July to protect pensions of Catalyst retirees and workers in the event that only part of the company was sold. Catalyst employs roughly 1,500 forestry workers in

Crofton, Port Alberni, and Powell River and generates more than $2-billion in annual economic activity throughout the province. Paper E xcel lence is a BC-headquartered company with nearly two million tonnes of pulp production capacity through five operating mills in Canada and two mills in France.

PORT ALBERNI Coulson Aviation Gets Fed Funding Coulson Aviation received a $3.4-million repayable investment from the federal government for their work in the aerial firefighting industry. The investment was made through the Strategic Innovation Fund for work on Coulson’s FireLiner air tankers. The Alberni-based aviation company has been working on converting six Boeing 737 passenger airplanes into dual-purpose aerial firefighting tankers and passenger aircraft. T he Fi reL i ner’s have a 4,000-ga l lon capacity for water or retardant and 66 seats for moving fire personnel.

The new craft have completed all of their flight-testing in the United States and are now in Australia to begin a five-year contract. It will be the first 737 to ever be used in fire suppression. The company would like to eventually see the converted planes fighting fires in British Columbia. T he i nvestment w i l l create up to 15 jobs while maintaining 73 more in Port Alberni. Coulson Aviation is a Port Alberni-based family-owned aviation company. They also operate the famous Martin Mars air tankers – the largest water bombers in the world.

PARKSVILLE Morningstar Golf Club Up For Sale Morningstar Golf Club Ltd. in French Creek has gone up for sale by their court-appointed receiver-manager G. Powroznik Group Inc (GPG). GPG, which now owns the club has listed for sale (all together) the right, title and interest of the assets, undertakings and properties of the golf club. T he club was put into SEE NEWS UPDATE  |  PAGE 3

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NOVEMBER 2018

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receivership by the Supreme Court of British Columbia on June 1 after its former owners filed for bankruptcy last year. Since taking over the course, GPG has made improvements on the course operations, company assets and golf experience. The company obtained financial support from the first mortgage to bring the club operation back into full service. They have also identified real estate development options both on the property and on adjacent land. Morningstar is a Les Furber-designed 18-hole, par 72-golf course on the outskirts of Parksville. It has a clubhouse and bar, as well as other buildings and facilities including a banquet pavilion, maintenance building and yard, golf cart shed, clubhouse and bar. The course has been used for PGA qualifying schools in the past. Last year 20,000 rounds of golf were played on the course and in the last six years from its golf operations ($1,225,000) and food and beverage revenue ($275,000), has averaged $1.5-million annually. There is also 22.8 acres of available adjacent land to holes six and seven that are up for sale by a third party.

CAMPBELL RIVER NIC Launches Aquaculture Program

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orth Island College (NIC) is launching a new Aquaculture Technician certificate this January to provide students with technical skills to work with a variety of species in BC’s growing aquaculture industry. The four-month certificate is the first of two new aquaculture offerings at NIC, developed in response to an industry call for workers with broader field skills. “We heard from industry about the need for more advanced technician training and education to fill current and projected vacancies,” said Cheryl O’Connell, NIC’s dean of trades and technical

programs. “This new certificate prepares students for entry-level positions and provides an excellent foundation for further studies.” The $600,000 project is funded through the Sector Labour Market Partnerships program under the Canada-British Columbia Labour Market Development Agreement. NIC has offered Aquaculture Technician Training since 2014. The new certificate includes an updated curriculum, more occupational health and safety training and the unique ability to ladder into BC’s first advanced production-training program, the Aquaculture Technician diploma, scheduled to begin in fall, 2019. Dr. Jesse Ronquillo, a world-renowned aquaculture researcher and educator, developed the programs’ curriculum, which was informed by the BC Shellfish Growers Association, the BC Salmon Farmers Association and industry leaders. “There is a growing interest in aquaculture around the world, creating a need for technical training and education,” said Ronquillo. “These programs prepare students for a range of industry jobs, from hatchery to farm-site work. The certificate gives students training in a variety of aquaculture species including finfish, shellfish and algal production techniques.” According to the BC Agriculture and Seafood Statistics 2017, farmed salmon was BC’s top exported agrifood and seafood commodity, geoduck clam exports rose 50 per cent from 2016 to 2017 and oyster exports have increased annually since 2010. Both aquaculture programs will take place at NIC’s Campbell River campus, now undergoing a $17.6 million expansion and renovation.

organizational structure of the municipality and made recommendations, which are now being implemented. The new structure has a smaller senior leadership team comprised of four general managers who report directly to the chief administrative officer and manage newly-formed services divisions, each with three to five major departments. The service divisions include: development and engineering; financial and protective; community; and people and business. The divisions combine connected services to streamline services, reduce administrative delays and reduce costs. The structure is also expected to reduce costs long-term by roughly $150,000, by reducing senior leadership positions and

adjusting managerial classifications at points of natural attrition for retirements or voluntary resignations. Further long-term oppor­tunities for cost savings will be realized from improved productivity due to ongoing work to streamline service delivery within and across divisions. “This is the first time I can remember an organizational review being conducted at North Cowichan,” says Mayor Jon Lefebure. “It’s always positive to have a set of fresh eyes assess the organization.” The GM of Development and Engineering Services will be recruited externally. Former Director of Parks, Forestry and Recreation Ernie Mansueti has been appointed to the role of GM for Community

3 Services. Former Director of Financial Services Mark Frame takes the role of GM for financial and protective services, and former Director of Human Resources Sarah Nixon becomes GM of People and Business Services.

VANCOUVER ISLAND Housing Market Showing Signs of Stability Sales of single-family homes in October were 11 per cent higher than in September but dipped by 16 per cent from October 2017. SEE NEWS UPDATE  |  PAGE 4

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COWICHAN VALLEY Cowichan Municipality Restructures The Municipality of North Cowichan has introduced a new organizational structure to streamline productivity and reduce costs. The municipality hired Innova Strategy Group to review the

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Last month, 385 single-family homes sold on the Multiple Listing Service System compared to 347 in September and 458 one year ago. The number of apartments and townhouses changing hands last month dropped by eight and 21 per cent, respectively. This year’s housing market is behaving as expected, moderating after the record-setting pace set in 2016 and 2017. Government policy-side measures introduced to cool the market, such as the mortgage stress test (Guideline B-20) and higher interest rates, are taking their toll on housing sales throughout the country. The British Columbia Real Estate Association expects housing sales to make a modest recovery during the next couple of quarters. According to VIREB, Vancouver Island has so far been somewhat immune to the effects of Guideline B-20 because the broad demographic trend in our area includes baby boomers and retirees who do not typically need mortgages. However, the insulating effect seen on Vancouver Island could be reduced by the speculation tax. The tax currently only applies to Nanaimo and Lantzville, though it could discourage some potential buyers from relocating to Vancouver Island, particularly those who purchase a home well ahead of retirement. Despite lower demand, prices in the Vancouver Island Real Estate Board (VIREB) area are still rising year over year. However, the board-wide benchmark price of a single-family home did drop slightly from September, and modest month-overmonth price reductions on single-family homes, apartments, and townhouses did

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occur in several zones. The benchmark price of a single-family home board-wide was $508,200 in October, an 11 per cent increase from one year ago. In the apartment category, the benchmark price climbed to $313,500, up 16 per cent from last year. The benchmark price of a townhouse hit $411,800 last month, up 13 per cent over October 2017.

NANAIMO USDA Signs Off On Tilray Import The U.S. Drug Enforcement Administration has given signed approval to Tilray Inc. to import a cannaboid study drug into the United States from Canada in order to study its ability to treat those with Essential Tremor (ET). The drug will be studied at the University of California San Diego (UC San Diego) Centre for Medical Cannabis Research (CMCR) with Dr. Fatta Nahab serving as the principal investigator for the study. Dr. Nahab is a board-certified neurologist and director of the Functional Imaging of Neurodegenerative Disorders Lab at the UC San Diego Health’s Movement Disorder Centre. Tilray is providing a cannabinoid formulation for the trial in capsule form which will allow researchers to test an investigational drug product containing CBD and THC. The study is expected to begin in early 2019 with financial support coming from Tilray and the International Essential Tremor Foundation. Essential T remor is a neurological SEE NEWS UPDATE  |  PAGE 8


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NOVEMBER 2018

Jim’s Clothes Closet Celebrates 50 Years Men’s Clothing Store Chain Continues to Expand After Five Decades

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OR T A L B E R N I - Ji m’s Clothes Closet is celebrating its 50th Anniversary in

style. Founded in 1968 by Jim Harris, and later purchased by Don Ferster in 1983, the men’s clothing company has deep roots in the Alberni Valley. “We’ve talked to a lot of longtime customers, and they’re proud of us and have been very supportive through our expansion,” says Drew Bradley, general manager of Jim’s Clothes Closet. Bradley joined Ferster in 2003, and over the past seven years, the two have established thriving locations in Courtenay, Campbell River, and Prince George. They felt the time was right to expand the market. Practical buyers were returning to quality clothing, having learned that cheap, mass-produced clothes don’t last. “People are tired of disposable clothes,” Bradley remarks. “Over the past 7 years we have seen positive growth in all markets we are located in. This is due largely to developing new returning customers that enjoy our staff’s professional, honest approach to selling men’s clothing.”

“Over the past 7 years we have seen positive growth in all markets we are located in. This is due largely to developing new returning customers that enjoy our staff’s professional, honest approach to selling men’s clothing.”

Owner Don Ferster, left, shown with General Manager Drew Bradley

DREW BRADLEY

men’s clothing store for years to come.” The store’s tagline – Denim to Suits for the Quality Man – perfectly captures the company’s target market. Store-goers appreciate finding high-quality apparel locally without having to travel to Vancouver, Edmonton, or Calgary. In addition to business suits, c a su a l clot hes, den i m, a nd footwear, Jim’s Clothes Closet provides tuxedo rentals. They also offer custom-made suits, blazers, and vests. Buyers can

GENERAL MANAGER OF JIM’S CLOTHES CLOSET

Starting on November 13th, Jim’s is celebrating its 50th anniversary with a 10-day sale in all four of its locations. “For every item purchased, customers will get a second item 50 per cent off,” says Bradley. “This sale will apply to every item in the store, and is our way of saying thank you for the support we’ve received from our community over the past decades. We look forward to being BC’s go-to

get measured at their local store, guided by the expertise of store staff. The clothing is made by Jack Victor of TruMeasure and is delivered in 3 to 5 weeks. Ferster has watched the Island grow over the last 35 years, seeing businesses in smaller towns develop relationships with major economic centres like Vancouver. “When our clients go to a major centre, they want to look the part,” he says. “They want to be fashionable and up-to-date.” Likewise, when businessmen from major centres come to

Jim’s Clothes Closet, they are impressed with the company’s array of products, differentiating the store from more specialized clothing retailers in larger centres. While many retail owners want customers to spend lots of time browsing the store, Bradley is happy to accommodate whatever pace customers need. “We respect that life can be busy, so we respect whatever amount of time you have, and we’re here to help,” he says. “We’re a one-stop shop for guys because many men don’t like to shop. Men are typically replacement shoppers. They buy when they need to.” Part of this strategy involves carrying wide selection, so the buyer can swiftly find what he needs, whether it is footwear, dress wear, or workwear, in one trip. “One of the main reasons we’ve been successful is because none of our sales staff are on commission,” he continues. “They have no ulterior motives with clients, so they give honest opinions on every single product. We want people to feel good about what they’re wearing.” www.jimsclothescloset.ca

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SMALL BUSINESS MONTH EVENT A SMASHING SUCCESS

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SONJA NAGEL he Duncan Cowichan Chamber wrapped up Small Business Month with a sold out event on October 30. Small Business BIG DAY was a smashing success! The one-day symposium was held at the newly renovated Best Western Cowichan Valley Inn and featured a stellar line-up of speakers, professional development sessions and networking events. We were thrilled to have Small Business BC advisors onsite for the full day with their Small Business BC Pop-Up, offering free 20 minute private consultations to an eager group of business owners and

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individuals interested in starting a business or looking to grow their business. Right on the heels of the 12th Annual State of the Island Economic Summit, George Hanson, President V IEA, presented at the Monthly Luncheon with key insights from the Summit sessions including the success and next steps of VIEA’s Island Good campaign. The engaging afternoon sessions included a MNP Hosted Presentation and Panel on the timely topic of People Power: Employees Recruitment and Retention and an empowering session with Leapzone Strategies: Brand from the Inside Out. The day ended with a networking social hosted by the Downtown Duncan Business Improvement Area DDBIA. Our members love to connect and engage at these events! In celebration of entrepreneurs and the impact they have on our economy, we launched an agg re s s i v e s o c i a l m e d i a campaign for Small Business Month, engaging on social media using the hashtag

#iheartsmallbiz. Of course, every month at the Chamber is a celebration of small businesses and their contribution to local communities. ••• We l c o m e n e w m e mber businesses of all sizes: Sutton Group Tracey Torok-Both Realtor, Benson Seymour LLP, GLM Holdings, Organic Fair Farm, Start Line Health and Wellness Group, Island Home Forever and Merit Furniture, NAI Commercial Nick Brown and Ed Williams, Pacific Group Developments, Clarity Furnace Duct and Fireplace, Got Soul Marketing, Rogers Furniture and Mattress, Surespan Structures, LeapZone Strategies, Old Farm Market, The Italian Kitchen and Deli, Field and Vine Gift Company, Supas Mechanical, Beechwood Consulting a nd Xandu Estate. Sonja Nagel is Executive Director of the Duncan Cowichan Chamber of Commerce. She can be reached at 250-748-1111 or manager@duncancc.bc.ca

2018-10-24 1:40 PM

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NOVEMBER 2018

Nominations Sought For Vancouver Island Business Excellence Awards Gala Event Organizers Searching For Nominations For Successful Companies To Nominate Ahead Of December 1 Deadline

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ANAIMO – Organizers of the 19 th Annual Vancouver Island Business Excellence Awards a re looking forward to a large number of entries from award-worthy businesses this year as the December 1 nomination deadline is now around the corner on the calendar. “It’s been another good year for business on Vancouver Isla nd, a nd we ex pect that to b e ref le c te d i n t he nu m b er and quality of the entries this year for the Gala, which will be held in Nanaimo on January 2 4,” notes Mark MacDonald of Business Examiner, which coordinates the event. “These awards always bring out new, exciting ventures that make our judges’ job a little tougher each year as they decide who wins each award. Black Press i s a Pl a ti nu m Sponsor of the BE Awards this year, and RBC Royal Bank and Grant T hornton LLP a re the event’s Gold Sponsors. This year, winners of each of the 17 Categories will be invited to a special “Breakfast

For Champions” round-table the following morning, hosted by RBC Royal Bank, Grant T hornton LLP a nd Busi ness Examiner. Categories this year are: • Automotive (car and truck dealerships & fleet sales); • Constr uction / Development/Real Estate; • Entrepreneur; • Food & Food Production (a g r icu lt u re, sea food, food products); • Green & Technology; • Health Care; • Hospitality; • Industrial Manufacturer; • M a n u f a c t u r e d Wo o d Products; • Ocean Products; • Professional (legal, accounting, insurance, coaching); • Constr uction / Development/Real Estate; • Retail; • Small Business (under 20 employees & under $1 million in sales); • Tourism; • Trades (automotive repair, plumbing, electrical, roofing, etc.;

After two years of sell out crowds in Victoria, event has been moved to the Vancouver Island Conference Centre to accommodate a larger audience. • Business of the Year (over 50 employees & over $1 million in sales). “Each year, nominations are generally evenly split between companies south of the Malahat, and those from north of the Malahat,” says MacDonald. “That’s

not surprising, as the population of both areas are very close, but it also shows the strength of the economy on Vancouver Island is spread out.” The nomination deadline is December 1 this year, and companies can self-nominate. There

is no charge to participate. Nomination forms can be downloaded at www.businessexaminer.ca/ events. For more information on the event contact MacDonald at 1-866-758-2684 ext. 120 or email: mark@businessexaminer.ca

San Group Announces Plans To Build New Sawmill In Port Alberni San Group has purchased 25 acres of Catalyst Paper land on Stamp Alberni Valley News an Group Inc. has signed an agreement to purchase land on the Port Alberni Catalyst Paper mill site to build a new sawmill. The announcement came less than a week after San Group announced it will start a third shift at its Coulson Mill on the outskirts of Port Alberni, expanding its workforce. Under terms of the deal, San Group will purchase 25-acres of the Catalyst Paper mill site in Port Alberni, in the corner bordering Stamp Avenue and Roger Street.

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It is anticipated construction of a new sawmill will create 50 new jobs in phase one, followed by an additional 85 jobs, once phases two and three are operational, according to a San Group press release. The deal also provides additional supply of wood chips to supplement production for Catalyst’s operations in BC, which will ensure greater viability and security for the company and its more than 1,500-person workforce, according to San Group. “Today’s ag reement

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demonstrates how two complementary industries can work together,” said San Group CEO Kamal Sanghera. “We have found a perfect synergy between two Canadian manufacturers and it’s the proverbial win-win for both the companies and the local workforce.” T he ag reement represents a total investment of between $60-$70 million dollars by the family-owned San Group Inc. for the construction of a new sawmill that will ensure smaller diameter logs can be utilized for

manufacturing in BC. It is anticipated construction will begin next spring. “Of primary importance to the San Group is the opportunity to take Canadian-owned resources, and create local jobs out of them,” said Sanghera. “We take great pride in maximizing every aspect of the wood product, from harvesting to processing and remanufacturing. The economic, environmental and societal impacts are an important aspect of this agreement.” T he greenbelt currently on

t h e c o r n e r of t h e p rop e r t y will remain, says AJ Cheema, vice-president of corporate affairs for San Group. “None of the trees are being removed. We’re going to be adding greenery.” San Group is a Canadian-based producer of forest products with its roots in the industry since 1979. The company has evolved from a small lumber remanufacturing facility to a multi-level forest products corporation with more than 30-years of exporting experience to a global community.


NEWS UPDATE

8 NEWS UPDATE CONTINUED FROM PAGE 4

movement d isorder cha racter i z ed by i nvolu nta r y a nd rhythmic shaking. Tilray is a Nanaimo-based global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients in eleven countries spanning five continents.

CAMPBELL RIVER Grieg Seafood Invests in Fish Farm Grieg Seafood completed the construction of two new $2-million feed barges at their Noola fish farm on the northwest of Vancouver Island in the Clio Channel. The barges include accommodations for workers and various industrial aquaculture facilities. The floating facility has a remote feeding system with underwater video cameras that allow technicians to observe fish behaviour and adjust the flow of flood accordingly. Microscopes connected to the internet are also fitted on the barge, so biologists can examine samples of materials such as plankton remotely. The state-of-the-art barges come as the company tries to position itself as a leader in more

precise fish farming practices that can predict ocean dynamics. The barges have bedrooms and a shared living space with an open-concept kitchen, big-screen tv and fireplace as employees spend eight days working onsite and return home for six days. Construction of the barge involved some 22 vendors from the Campbell River area whose involvement ranged from building contractors to high-tech firms to office services. The Grieg fish farming facilities in the Clio Channel are the result of a partnership that was established with Tlowitsis Nation, whose traditional territories include waters in the Georgia Strait from Telegraph Cove to just west of Sayward. Beginning in 2022, fish farm operators must have the consent of First Nations whose territories they are operating in. Grieg Seafood is based in Campbell River and is a subsidiary of the Norwegian multinational Grieg Group.

PORT HARDY Port Hardy Tenders Pool Project A multi-million-dollar pool replacement project in Port Hardy has gone to tender. The project will replace the deteriorating existing pool with a new one and use the existing

NOVEMBER 2018

facility for community activities. Construction on the new facility is set to begin in as early as January, 2019 and is expected to last at least a year and a half. T he District of Port Hardy estimates that cost of the replacement w i l l be a rou nd $12.6-million. $5-million of that will come through tax revenues and up to $6-million will be borrowed. The borrowing was approved after the city held a referendum in 2017 that saw a 77 per cent assent vote. The district will also receive a $50,000 per year aid grant for 20 years from the Regional District of Mt. Waddington (RMDW) to be used in debt repayments on the borrowing. The District of Port Hardy will have to reapply each subsequent year to receive the funding from the RDMW until their debt is officially repaid. Additionally, the RDMW will be invited to sit on the Port Hardy Parks and Recreation Committee to be involved with the multiplex project and ongoing programming once completed. The project is expected to generate local business growth, thus reducing the impact of the taxation. The district is also planning to apply for $5-million from Investing in Canada Infrastructure Program, which may also cover the costs of completing the rest of the recreation revitalization project. $6-million has already been received from the Federal

Gas Tax Fund – covering almost half of the total cost of the project and Marine Harvest donated $250,000 to jumpstart the project.

NORTH ISLAND Retrieved from: North Island Gazette Mining Project Begins Again in Pemberton Hills The North Island may see a revitalized mining industry soon. After starting the project back in 2011, NorthIsle Copper and Gold Inc. has begun drilling at the Pemberton Hills target site after reaching a “farm-out agreement” earlier this year. The company has evidence to suggest that Pemberton Hills, spanning 1,853 acres, has copper deposits after drilling a 200-metre deep hole for a prior geological survey. T h e f a r m-o u t a g r e e m e n t with Freeport-McMoRan Mineral Properties Canada Inc. (Freeport), which is a negotiated deal to obtain a percentage of ownership of a lease in exchange for providing a service, will allow NorthIsle to conduct further studies in the Pemberton Hills area. A farm-out agreement typically means the “farmer” or leaser receives a royalty payment once the land is developed and producing, in this case, copper and gold.

Freeport may spend nearly $24 million on exploration expenditures with 65 per cent interest in the property. Freeport was originally going to spend $4 million over 3 years to earn up to 49 per cent interest, according to NorthIsle’s April 2018 corporate presentation. The Pemberton Hills property will be divided between NorthIsle and Freeport. The company recently completed their initial geophysical survey with another follow-up survey planned in the same area. The initial diamond drilling program is also currently underway. The project has an estimated inferred 1.5 billion pounds of copper, an inferred 3.6 million ounces of gold and a total planned budget of $1 million. The survey area will extend west-northwest from the Island Copper Mine, which operated for nearly 25 years. Northisle will also retain a 100 per cent interest in its Hushamu a n d R e d D o g c o p p e r- g o l d deposits. The North Island Project covers nearly 99,000 acres of highly prospective copper deposits. The Hushamu deposit will have roughly 305 million tonnes of copper, gold and other minerals. The project will use the nearby deep-water loadout facility and is considered a brownfield development opportunity, which is the planned use of land that was previously developed by BHP Billiton’s Island Copper Mine.

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9

SLEEP COUNTRY OPENS NEW NANAIMO STORE Will Work For Me: The 8 Secrets of Small Business I Learned From Successful Friends” Oct. 26 at the Nanaimo Golf Club. Donna Hais of R.W. (Bob) Wall Contracting Ltd., Alex Dugan of Central Island Distributors, Doug

Johnston of Johnston Johnston & Associates and business coach Ron Berry all expounded on tips that are included in the book. Copies of the book are $20, and available through www.businessexaminer.ca

NANAIMO MARK MACDONALD

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leep Country has opened a new store in Nanaimo, in front of Country Club Centre at 3290 Island Highway. Sleep Country now has 43 stores throughout the province, and 262 across Canada. ••• Greg Tatic is pleased to announce that his Bulletproof Mechanic shop at 227 Terminal Avenue has signed on as a U-Haul neighbourhood dealer. It will offer U-Haul trucks, trailers, towing equipment, moving supplies, boxes, and in-store pick-up for boxes. ••• TD Collections and TD AutoFinance is preparing to move from its downtown location to Nanaimo North Town Centre. ••• Jolynn Green, Executive Director of Community Futures Central Island, is pleased to note that Brenda Boyd has joined their team at their 14-327 Prideaux Street office. Brenda worked for Black Press prior to taking the Office & Loans Administrator position at Community Futures. ••• Body Tempo Health and Fitness is opening a new location at 2330 McCullough Road. ••• The GAIN Group has put in an application for phase two of its race track in North Cowichan, just off Highway 18 on the way to Lake Cowichan. Chris Erb’s SupErb Construction will be building the facility. ••• Cedar Valley Memorial has a new director: Darryl Grossauer. ••• There is a Buy Low Foods sign draped across the top of the former Quality Foods location in University Town Centre shopping mall in Harewood. Quality Foods has moved to its brand new store on Bruce Avenue. Meanwhile, construction continues across from UTC, for a new Tim Horton’s and a bank, along with other commercial space. ••• R.W. (Bob) Wall Contracting Ltd. is busy making leasehold improvements at 3-5767 Turner Road, to make room for Avian Veterinary Clinic. ••• A new Papa John’s Pizza outlet will be opening on Rutherford Road in December. •••

Mike McClenaghan of West Coast Factory Direct Hot Tubs presents a $1,000 cheque to Big Cheese Charity Classic co-organizer Mark MacDonald ••• Kelowna-based Highstreet Ventures Inc. is proposing to build four apartment buildings with a total of 170 rental units near the Grand Hotel at 4800 Cedar Ridge Place, near Nanaimo North Town Centre. T he project w i l l be two three-storey buildings and one each of four-storey and two-storey. The company hopes to begin construction in February, with a completion date of 2020. ••• Nanaimo Floor Depot is now open at Norwell Drive and Departure Bay Road. ••• Marke Mark and John Nguyen have purchased Beachfires restaurant from Mitch Forrest. ••• W hen t he Western Hockey League was indicating its strong interest in locating a franchise in Nanaimo prior to the defeated referendum to build an Events Centre in Nanaimo in the spring of 2017, the Kootenay Ice was strongly rumored to be one of two teams that were named as potential clubs to relocate to the Island. T he Cra nbrook-based club stayed put under new ownership, but rumors indicate the Ice could be bound for Winnipeg, Manitoba as their next home. ••• More building for the Chase River area in South Nanaimo is coming. An application has been submitted to build two or three buildings and up to 200 units at 1300 Junction Avenue, by Tenth and Lawlor Streets. The area is already home to two major senior residences, as well as the popular shopping centres that are home to Country Grocer on one side of 10th, and on the other, Tim Horton’s and Smitty’s Restaurant. ••• The Big Cheese Charity Hockey Classic was another great success, and the fundraising aspect

received an extra shot in the arm from Mike McClenaghan of West Coast Factory Direct Hot Tubs, who chipped in $1,000 towards the three young families who will receive proceeds from this years’ event. The families tragically lost their fathers recently. ••• A special thanks to the panel that imparted wisdom to the large crowd that showed up for the launch of “It Worked For Them, It

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NOVEMBER 2018

AFTER 130 YEARS, NFE MANUFACTURING KEEPS EYES ON THE FUTURE NFE Manufacturing Invests in Cutting Edge Technology

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H E M A I N US - A s NFE Manufacturing Inc. celebrates a staggering 130 years in business, the company is staying future-focussed. NFE began as a steel foundry in 1888, but has grown to offer a diverse set of services including machining, fabrication, engineering, waterjet cutting, painting and sandblasting, and more. “A lot of people are still unaware of the diverse range of services our company is capable of,” says general manager Lee Miah. “There are two main things that set our company apart. Number one is our people, who bring decades of experience and expertise to the table. Number two, we are a one-stop shop. We don’t just weld things together and sell it to another contractor. We can design and engineer, build, paint, install, and provide after sales services on our installs.” Since 1999, the company has been operating out of a facility located on eight acres of land in Chemainus, employing certified engineers, machinists, fabricators, millwrights, and pipefitters to meet the diverse needs of their clients. In 2016, the growing diversity of services prompted the company to change its name from Nanaimo Foundry to NFE Manufacturing Inc. “Ultimately, we sell solutions,” says Miah. “We have some of the best engineers and designers in the industry, who aren’t afraid to step out of the textbook and get creative with their solutions.” “A sizeable percentage of our customers will send us nothing more than a rough idea of what they need and a few measurements. Our engineers and designers will conduct field trips and additional research to put together the best possible solutions. That’s why plants come to us: expertise, checks and

“That’s why plants come to us: expertise, checks and balances and better suggestions. We act as consultants, helping clients discover the most safe and cost-effective solutions for their needs.” Eric Jones welding at NFE’s Chemainus facility

LEE MIAH, GENERAL MANAGER AT NFE MANUFACTURING INC.

balances, and better suggestions. We act as consultants, helping clients discover the most safe and cost-effective solutions for their needs.” NFE offers these solutions to clients in a diverse range of industries, including oil and gas, mining, aerospace, hydro-electric, forestry, and marine industries, creating innovative solutions for each client’s unique need. Currently, the company is in a long-term partnership with Nicholson Manufacturing Limited, which builds machines for the forestry industry. NFE supplies many of the major components to Nicholson, designing, painting, and shipping them to the factory in Victoria, where the machines are assembled. “Nicholson has the utmost faith in our quality, and that’s why we have this contract,” says Miah. “It accounts for a great deal of the work we do in Chemainus.” Additionally, NFI, NFE’s field division, has been involved in a retrofitting project that will restart the Nyrstar Mine in Myra Falls, which primarily produces copper and zinc concentrate. Strikers Welding, a division of NFE, serves customers from Campbell River north, allowing the company to serve the whole Island. As the company grows, it endeavours to attract the highest quality tradespeople and engineers, maintaining high workplace standards.

Lee Miah is the new General Manager at NFE Manufacturing Inc. “The average tenure of an employee is about 10 years, which speaks volumes for an organization of this kind in our day and age,” comments Miah. I n Chema i nus, the sta ff is unionized through the Machinists, Fitters & Helpers Union, with many of the senior employees offering top-level expertise to new hires and apprentices. “Safety in the workplace is also one of our core values as a company,” continues Miah. “We just completed our 2018 COR Audit, and our result was about 94 per cent for the year, which is nearly unheard-of in our industry.” In the coming decades, NFE p l a n s to c o n t i n u e to m e e t needs in growing and emerging industries. “We’re currently investing in research and development for some of our own green product initiatives,” says Miah. “We have been involved in several related projects so far, and have been developing some cutting-edge environmentally-friendly products, such as a frack water recycling unit.” “I n the f utu re, we wa nt to continue to develop innovative solutions, attract more creative experts, and invest in the future. While we continue to excel in our industry, we have a strong long-term focus that involves investing in new technology.” www.nfe.ca

Chris Pilkey (NFE machinist apprentice) working on the line boring machine

An aluminum walkway currently in progress in NFE’s Fabrication shop. Jari Mielty (pictured) has been with the company 25 years.

A recent Research and Development project for green energy

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11

NOVEMBER 2018

INCORPORATION CONSIDERATION

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f you’re like most unincorporated small business owners or a professional whose regulatory body allows incorporation you’re likely considering whether or not to incorporate and, if so, when is the best time. While it’s true that incorporation does deliver terrific tax benefits. There are pros and cons to incorporation that might affect your decision. Let’s look at them.

If you’re like most unincorporated small business owners or a professional whose regulatory body allows incorporation you’re likely considering whether or not to incorporate and, if so, when is the best time. While it’s true that incorporation does deliver terrific tax benefits. There are pros and cons to incorporation that might affect your decision. Let’s look at them. Cons • Cash Flow: If you need all of the profits from your business to support your personal cash flow needs, incorporation may not be for you as the cost of setting up and maintaining the corporation could outweigh any tax benefits. • Taxing Questions: If you are just starting your business, incorporation should probably wait because losses incurred by an incorporated business can’t flow through to shareholders. In the early stages of your business, you’re likely better off using losses personally against other income. Pros • Income splitting by paying dividends on shares held by other family members can result in overall tax savings where

marginal tax rates within the family vary due to different levels of income. Recent amendments to the Income Tax Act make income splitting more difficult and in some cases is no longer possible so existing structures should be reviewed to ensure they are still compliant and new strategies should be mindful of these changes. Salaries that are not in excess of a reasonable amount continue to be an effective way to income split. • Deferring certain expenses. For example, you can deduct employee bonuses for tax purposes before year-end but are only required to actually pay out the bonus after year-end. • Leaving assets in the corporation where they will continue to grow on a tax-deferred basis until you choose to withdraw them. • Creating a registered pension plan and tax-deductible group health and life insurance plan for you and your employees. • Choosing a fiscal year spanning any 12-month period. Select a fiscal year that coincides with business or cash flow peaks or when corporate expenses are higher. • Structuring your corp o ra t i o n to c o n t i n u e a f te r your death for estate planning purposes. There are certainly potential benefits to incorporation but incorporating also comes with costs – from initial setup and legal costs to ongoing requirements for tax returns and corporate resolutions – and other legal requirements. Be sure to talk to your legal, tax and professional advisor before you do. Stephen J. Struthers, is a Senior Financial Consultant with IG Wealth Management and Leader of Struthers Wealth Management. Struthers Wealth Management, helps professionals, businesses and families build wealth, save tax, and receive retirement income for life. Email: stephen.struthers@ Investorsgroup.com.

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NOVEMBER 2018

SEA ROAMER MARINE RUNS ON INNOVATION “We’re the only ones installing mechanical

Courtenay Marine Company Refits Vessels to Meet Unique Coastal Needs

anchors in fish farms right now. We’ve continued

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OURTENAY - Sea Roamer Marine Services has the equipment and expertise to meet a diverse set of needs on BC’s coast. “We became known for our work in the aquaculture sector,” says owner Lloyd Muckle. “In recent years we have expanded and grown significantly in terms of what we can offer. The credo we try to follow in what we do is ‘Innovative solutions to complex problems.’” Currently, Sea Roamer specializes in aquaculture and marine construction, towing & transpor t, a nd Remote O perated Vehicle (ROV) services. As the company continues to improve and adapt, it adds further options to its already expansive list of services. “We are constantly buying and developing new equipment, and rebuilding and retrofitting existing equipment,” says Chuck Williams, general manager. “We are closely connected to aquaculture, doing over 80 per cent of our work with that industry. “We’re ver y dependent on them, and the industry is very

to develop our vessels to handle anchors and nets that are increasingly heavier, and we’re the only marine-based company that’s done that so far.” LLOYD MUCKLE, OWNER OF SEA ROAMER MARINE SERVICES

Left to right: Kevin Hieb (Maintenance Manager), Lloyd Muckle (Owner), Debra Muckle (Owner), and Chuck Williams (General Manager) on the Debra-Ann dependent on us. For that reason, we’re always innovating to stay on the cutting edge of the industry.” Williams and Muckle are the primary ‘research team’ at Sea Roamer. They come up with concepts for new equipment, and will occasionally travel abroad to research industry innovation in other regions. “We have visited places like the Netherlands, Norway, and Scotland to see how others are doing it,” says Williams. “After we had the concepts drawn on paper, we take them to engineers to help us put plans together, then implement these plans.” “For example, two years ago, we built a barge that we outfitted specifically to service fish farms. It was the first of its kind to be built in the province, and required some innovative thinking to outfit it with the right equipment. It’s proved to be so useful that we’ve been double-shifting

The company has been repurposing and modifying its old equipment from its beginnings in 2002 it since this past February.” Thanks to this approach, the company has seen significant growth over the past ten years, average 10 per cent revenue growth per year, and increasing

company assets by over 300 per cent. Muckle brings decades of industry experience to the business, completing the Malaspina College Mariculture course in

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1986 as a licensed diver with extensive skills in mechanical work. “I progressed from there, and worked for a small mom and pop fish farm before deciding to start an underwater net washing business,” he says. “I worked for these smaller operations until they started going bankrupt around 1990. “At that point, I lost everything - my house, my boat - all of it. I went into commercial dive fisheries and a few other ventures until I had built enough sea time to get my captain’s papers.” A fter gaining his accreditation as a skipper, Muckle began working for Stolt Sea Farms (now owned by Marine Harvest), eventually becoming full-time skipper of the Sea Roamer landing craft. “I worked with Stolt for about five years, until they decided to sell their marine assets off,” he says. “I was one of 10 people to bid on the Sea Roamer, and was the successful bidder.” With the new vessel, Sea Roamer Marine Services was officially launched in 2002 with a single SEE SEA ROAMER   |  PAGE 13

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NOVEMBER 2018

SEA ROAMER CONTINUED FROM PAGE 12

boat and two employees (including Muckle). “At that time, I was promised 900 hours of work with Stolt over the next three years, and the intention was for us to be displaced by their partners,” he says. “The reality was that we continued to work more and more until I put another shift on the boat.” From there, he purchased another company, Ladner Tug and Barge from Jim Hillman. Around the same time, he acquired the Straights 25 (now called the 201) from RivTow Industries, rebuilding the bow in 2003 and replacing the bottom in 2006, making it a viable working machine. This vessel is still in use by the company. “I hired a captain named Jim Webber to come aboard, and he ended up being the third generation to work on one of our tugs, the Comox Brave,” says Muckle. “Now his son works on it, marking the fourth generation to work on the same ship. It’s pretty incredible.” Today, the company has 28 employees (with over a century of combined experience) and is currently hiring/training another crew for a tug, the Squamish Warrior. “Ou r employees a re ou r strength,” says Muckle. “Everyone’s willingness to learn and grow in the industry has made us successful.” The size of the staff and fleet at Sea Roamer Marine allows them to serve a wide variety of needs on BC’s coast and adapt to new niches in the industry. “We’ve continued to develop our vessels to handle anchors and nets that are increasingly heavier, and we’re the only marine-based company that’s done that so far,” he says. For Muckle, adaptation has been the key to his company’s success. “We’ve been in rebuild mode, pretty much since I bought the business,” says he says. “We’ve been repurposing and modifying our old equipment ever since we started.” The Sea Roamer itself has had a

long history of modification since it began as the steel auto-ferry Catherine Graham in 1954. By the time Muckle acquired the vessel in 2002, it had passed through a number of hands, undergoing several face-lifts and expansions. In 2003, Muckle completed a rebuild of the bow to adapt to the craft’s new functions. This was followed by a total replacement of the hydraulic system in 2005,

Sea Roamer specializes in aquaculture and marine construction, towing & transport, and Remote Operated Vehicle (ROV) services

Over 80 per cent of Sea Roamer’s work is with the aquaculture industry

The company currently has 28 employees with over a century in combined marine industry experience

The company’s namesake, the Sea Roamer, has a long history of modification since it began as the steel auto-ferry Catherine Graham in 1954

Congratulations to Sea Roamer Marine on all your success! ~ from Jussi & Olivia Narhi

and the replacement of the two Hadley installed 235 horsepower GM 6V-71s, with a pair of John Deere 6081 AFM75 M2 diesels of 300 horsepower each in late 2006. This adjustment dramatically reduced the craft’s fuel consumption. The Sea Roamer along with the rest of the company’s growing fleet are customized to meet the various needs of its clients, especially those in the aquaculture industry. For example, the Squamish Warrior (tug) just received a 24 month complete re-fit. This also marks the last refit of the tugs which began in 2012 with the comox Brave, the first of three which took 30 months to complete. The Debra-Ann was bought as a hull and was outfitted to new condition which we completed in 2016. Muckle’s company has assembled fish farms, including pen systems, houses, feed sheds and other infrastructure elements for 50 fish farms on Vancouver Island and the BC coast. T hey i nsta l l a nd excha nge nets, easily pulling 45-ton nets out of the water with their crane barge. The Sea Roamer itself can carry fish-holding semi-trailers on board, delivering smolts to various remote clients. Additionally, the company is

capable of transporting equipment and material (including logging equipment), salvage work, anchor installation and inspection, oil spill containment, transporting homes and trailers, marine towing, dock building and repairs, and more. Sea Roamer Marine also fields three Remotely Operated Vehicles (ROV) with tracking and sonar capabilities. These ROVs are configurable for many underwater requirements and client third party hardware, and are used for environmental data collection, structural inspection, and surveillance/inspection services. “We’re a progressive company,” says Muckle. “And so far we’ve been able to keep half a step ahead of demands for our services.” In addition to staying at the forefront of its industry, Sea Roamer Marine pays close attention to the family concerns of the crew. Because of this, only half the crew is tending to a given task during a seven-day period, while the other half is at home with their families and friends. Muckle is optimistic about the future of his business. “I don’t believe aquaculture is going anywhere,” he says. “The fact that there are so many people to feed is significant, and the science is supporting what we’re doing,

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helping us progress.” Williams comments, “Marine Harvest is progressing toward a 100 per cent increase in production, and Grieg Seafood is amid a 50 per cent increase in production, and these are two of the three major players on the BC Coast.” Muckle concludes, “It’s nothing but increased growth for us. We’re looking for additional vessels and crews, training more people, and investing more in our company.” www.searoamermarine.com

Proud partner of the success of Sea Roamer Marine, Congratulations on all your accomplishments! ~ from Todd Prystupa

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14

NOVEMBER 2018

Skating And Donating: Big Cheese Charity Classic 10th Annual Fundraising Hockey Game A Winner For Business Leaders And Charities

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ANAIMO – For 10 years now, a group of Nanaimo area businessmen have skated and donated in the Big Cheese Charity Classic hockey game, raising close to $50,000 for a n u m b e r of c h a r it a bl e organizations. A “golf tournament” for hockey players, the October 26 game at Nanaimo Ice Centre featured a competitive, fun game, a variety of skill levels, as well as awards, prizes and a grand meal at the Nanaimo Golf Club. Organizers Grant McDonald of Church Pickard Certified Professional Accountants, Darren Hauca of The Communication Inc. and Mark MacDonald of Business Examiner Vancouver Island were pleased with the results and outcome of the event, with proceeds this year going to three young families whose fathers tragically, unexpectedly passed away. Recipients in the past have included the Child Development Centre, K idSport Na na imo, Vancouver Island Crisis Society, Loaves & Fishes, Haven Society and Vancouver Island Mental Health. Each player is required to be an owner or manager of a business,

thus the “Big Cheese” and this year contributed $325 to play. Tax receipts aren’t issued, but the entry fee as a business expense works much the same way tax-wise. Players have their equipment bags chauffeured to the dressing room, with food and drink before - in the middle of - and after the game. There are full sets of Big Cheese uniforms, a signature takeaway wardrobe addition complete with Big Cheese logo, and an official program listing players’ pictures, business bios and contact information, colour team photo supplied by Concept Photography, and equipment stickers for all the players from The Sign Zone. Six awards are handed out following the game: The Brie Award for the “softest” play went to Dave Dugan of Central Island Distributors, the Gouda Award for “goodest” play went to Michael Johnston of Johnston Johnston & Associates, the Limberger Award for “stinkiest” play to Mike Carson of The Sign Zone, the Blue Award for “saddest” play to Darren Brown of Security & Cellular Plus, the Cheez Whiz Award for rookie of the year to Kyla Hartnell of Long Lake

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Sports & Orthopaedic Physiotherapy and the Old Cheddar Award was a tie between Doug Johnston of Johnston Johnston & Associates and Alex Dugan of Central Island Distributors. The game? Team Red defeated Team White 6-3. Participants this year were: TEAM WHITE Jim Dickinson of Holland Creek Limited Partnership, Doug Johnston of Johnston Johnston & Asociates, Scott Lewis of Aplin & Martin Consultants Ltd., Michael Johnston of Johnston Johnston & Associates, Rick Bayko of DenMar Electric, Mike Carson of The Sign Zone, Grant Starko of IG Private Wealth Management, M i ke McGlenag ha n of West Coast Factory Direct Hot Tubs, Kent Cookman of BMO Nesbitt Burns, Dave Young of Parkland Fuel Corporation, Colin Jones of Nicol Street Pawnbrokers, Mike Klassen of The Whole Show Restorations, Dennis Campbell of Budget Brake & Muffler Auto Centres, Mark MacDonald of Business Examiner Vancouver Island and Dave Kirk of Cunningham Rivard Appraisals. TEAM RED Lee Pow of Mobalign Services Inc., Dawn Walton of Dawn

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Accountants, Darren Brown of Security & Cellular Plus, Rod Maley of Hornby’s Canopy City and Rob Fuller of Glacial Bay Organic Clay. “The event is always a big hit, and the after-game chat and interaction is tons of fun, and good network i ng, too, w it h other business owners and managers,” says MacDonald. “We had nine first-timers this year, which was great, as the event is good for business and charity.” For more information, contact Darren Hauca at darren@communicationconnection.ca

VANCOUVER ISLAND SYMPHONY PRESENTS: KEN LAVIGNE’S HOME FOR CHRISTMAS Tickets Now Available for Four December Shows

Celebrate the Season!

Participants in the 10th Annual Big Cheese Charity Classic October 26 at Nanaimo Ice Centre

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A NCOU V E R I SL A N D - T h e Va n c o u ve r I sland Symphony (VIS) is keeping the holiday spirit alive with Ken Lavigne’s HOME for Christmas. The Vancouver Island Symphony, under the direction of P ierre Si ma rd, is excited to bring a night of holiday magic to Nanaimo, Duncan, Campbell River and Victoria. The shows feature, the VI Symphony – and Vancouver Island’s favourite singer and founding a member of the Canadian Tenors, Ken Lavigne. They will be joined by special guest Nadya Blanchette. “I get wistful and nostalgic ever y ti me we approach the holiday season,” says Lavigne. “For so ma ny of us, there is a n i ncessa nt bu sy ness t h at comes as we try to get everything done so we can enjoy the holiday. This concert is a brief oppor tu n ity to step outside that busy life and bask in the nostalgic wave of Christmas feeling. “T here’s a lways a sense of

looking back on the year and through past years. It’s one of my favourite times of year and I’m not alone in that.” The performances will feature seasonal traditions, including stories told with humour and sentimentality. It will feature memories of Christmas’ past and the music that shapes a nd su rrou nds it, i nclud i ng songs like: White Christmas, O Holy Night, Angels We Have Heard on High, I’ll Be Home for Christmas, Sleigh Ride and m a ny more pieces t h at w i l l bring the Christmas spirit to life. “I’m especially excited about col l aborat i ng w it h Nadya,” says Lavigne. “She’s a wonderful soprano who recently reloc ated f rom Mont rea l to Na na i mo, a nd she’l l be performing some solos. “I’ve toured with her before, and welcome the opportunity to work with her again. She’s a wonderfu l performer w ith great stage presence and a tremendous voice.” Concert-goers can look forwa rd to aud ience pa rticipat ion t h rou g h si n g-a-lon g s, as well as the annual indoor snowball fight extravaganza. “O ne of my favou r ite pa r ts

of the even i ng is the i ndoor snowball fight, where we get the entire audience and a few members of the orchestra to throw snowballs around,” says Lavigne. “It’s usually a kind of controlled chaos - more on the chaos side than ‘control’. It’s a lot of fun, and if you’re not quite sure what that will look like, you’ll have to check it out.” The Vancouver Island Symphony presents Ken Lavigne’s HOME for Christmas on: • Saturday, December 1 – Nanaimo’s Port Theatre at 7:30 pm • Su nd ay, December 2 – Campbell R iver’s Tidemark Theatre at 2:30 pm • Monday, December 3 – Duncan’s Cowichan Performing Arts Centre at 7:30 pm T ickets for t hese events will go fast, so purchase your tickets soon at www.vancouverislandsymphony.com In Victoria, Ken Lavigne presents “Under the Mistletoe” on Tuesday, December 4 at Victoria’s The Royal Theatre. With t he Va ncouver Isl a nd Sy mphony and Nadya Blanchette. Tickets available at www.rmts. bc.ca.


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NOVEMBER 2018

CONSTRUCTION Kitimat, Continued Labour Shortages, Community Benefits Agreement BC Construction Industry Experiences Major Victories and Challenges Throughout 2018

BY ROBERT MACDONALD

T

he success of the construction sector has an enormous bearing on the welfare of the entire province. Contributing about 8.6 per cent of the province’s GDP and employing over 251,000 residents in over 24,000 companies, the industry has a ripple effect on almost every other sector in BC. Projections and statistics prov ided by BuildForce Canada indicate that BC’s construction growth has begun to slow, but will soon experience an almost unprecedented boom in early 2019 as several major projects get underway. This expected growth is largely thanks to proposed LNG facilities, pipelines, and infrastructure projects, especially the upcoming Kitimat export facility. This project will anchor the largest swell in engineering construction

The Kitimat LNG export facility is the largest private project in Canadian history and will greatly impact BC’s construction industry

SEE CONSTRUCTION |  PAGE 17

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CONSTRUCTION

NOVEMBER 2018

MAZZEI ELECTRIC CONTINUES TO SURGE “A majority of our Nanaimo-Based Company Seeks New Hires to Keep Up With Explosive Growth

managers have grown as the business has, working up from being

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ICTORIA - With a staff now approach i ng 200 e m p l o y e e s , f a m i l yowned Mazzei Electric Ltd. is continuing to break into new markets. Since it was founded nearly 25 years ago, the Nanaimo-based company has grown from a local start-up into a major electrical contracting business, impacting the whole province with key offices in Victoria and Fort St. John. “ We’ve got a prog ressive, young, energetic management team right now, which makes this company an exciting place to be,” says company president Ben Mazzei, a third-generation electrician. “ My fat her, Fra n k Ma zzei started the business in 1994, doing primarily commercial c ont ra c t s er v ic e s. We s t i l l work for many of his original customers.” When Ben took over the company about six years ago, there were approximately 25 employees. As the company has experienced explosive growth, many of the key employees have stayed on, evolving with the company and becoming key pillars in the business. “A majority of our managers have grown as the business has, working up from being journeymen out in the field,” he continues. “That means there’s a lot of mobility potential for new hires. We’re constantly evolving and new supervisory roles on-site and in the office are constantly coming up.” A ccord i n g to B en, M a zz ei Electric is cu rrently i n h i ri n g mo de, lo ok i n g for “a ny eager, enthusiastic trades person - early-term apprentice, journeyman, site supervisor, project manager - anybody interested in joining an exciting

journeymen out in the field. That means there’s a lot of mobility potential for new hires. We’re constantly evolving and new supervisory roles onsite and in the office are constantly coming up.” BEN MAZZEI PRESIDENT OF MAZZEI ELECTRIC

Ben Mazzei is the President of Mazzei Electric

Mazzei Electric was founded in 1994 and currently serves Vancouver Island and Northern BC team with lots of opportunity for growth. “We’re a little different from many of our industry peers, especially because of the age of the leaders. Of our entire ma nagement tea m, we have three who are over the age of 40.”

Mazzei is always working to ensure the safety of its workers, and is CORE Certified, which is Worksafe BC’s highest safety standard certification. The company is hoping to hire another 20-30 employees in its various regions over the next 3-4 months.

“We’ve been pretty aggressive about looking into new markets and new opportunities,” says Ben. “I think that’s part of why we’ve grown so quickly.” Additionally, Mazzei has been enjoying the benefits of strong relationships with other growing companies, who continue to provide the business with more diverse and more large-scale projects. “We’ve made sure that our team is capable of doing almost any job that’s brought to us, no matter how big or small,” he continues. “Our service department will do everything from changing a receptacle or a light fixture at your parents house, to maintenance and add-ons, to manufacturing and light industrial plants, to commercial tenant improvement in a mall. “Beyond that, we’ve got a team in our Projects Division that will do condos and apartments, institutional projects, commercial projects, light industrial projects, and more. It’s a pretty wide spectrum of capability.”

If there’s anything to thank for the company’s astronomical growth, Ben believes it’s this willingness to embrace the industry’s enormous diversity, coupled w it h con sta nt networking and reaching out to new clients. Recently, Ma zzei has been cont racted for a nu mb er of major projects across various sectors. They were involved in GAIN’s new Vancouver Island Motorsport Circuit in the Cowichan Valley and will be working on the company’s new Audi, Alfa Romeo, and Maserati dealership in Victoria. “Right now, we have about 25 low-to-mid-rise condominium projects either waiting to start or in a different stage of construction between Vancouver Island and Northern BC,” says Ben. “We’re doing the Northern Lights College Trades Training Facility in Dawson Creek right now, which is a really big job. About a year and a half ago, we worked on Malaspina Gardens, which is a 143-unit care home.” T hey are also working on a large number of multi-family projects in the Victoria area, and have been contracted by Axiom Builders to do electrical work for 207 units on Pandora Avenue. They’ve worked on new grocer y stores, pu mp stations, warehouses, and even the helicopter pads at the North Island Hospitals. “You name it, we do it,” Ben remarks. T he company’s growth and diversity of projects wouldn’t h ave been possible w it hout an investment in the proper infrastructure. “As we’ve grown, we’ve centralized all estimating, purchasing, administration, and accounting in Nanaimo, and we have the same core group as we continue to go into more markets,” he concludes. “We’ve i nvested i n strong systems, and our strong organizational structure allows us to sustain this growth.” www.mazzeielectric.com

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CONSTRUCTION

NOVEMBER 2018

CONSTRUCTION CONTINUED FROM PAGE 15

requirements in recent history, as several additional major projects are scheduled to start in 2019. The report showed a record year of construction employment growth throughout 2017, which has also contributed to the industry’s growing labour shortage. Statistics Canada data shows evidence of both record high job vacancy rates, coupled with low rates of unemployment in the industry. In the coming years, the report anticipates a decline in residential construction demands, following a declining rate of population growth and lower levels of new housing activities. During the same period, industrial, commercial, and institutional building construction is expected to experience continued growth. By the year 2021, the residential sector is expected to lose nearly 11,000 workers (nearly a 10 per cent decline from the record highs reported in 2017), while major mining, public transportation, LNG, and pipeline projects (slated to start in 2019 and 2020) are expected to add over 12,000 jobs, which will likely peak in 2021. According to the report, “While there is uncertainty around the timing of projects, the volume of other projects is significant if they proceed as scheduled. The

On October 7, LNG Canada announced that its joint venture participants, Shell, PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS, made the final investment decision to build the LNG Canada export facility in Kitimat

divergence between residential and non-residential labour markets may present some recruitment opportunities between sectors, but mobility may be impeded by specific skills and experience requirements.” In the coming five-to-ten years, BC’s construction industry is poised to experience some of the strongest growth in Western Canada.

LNG CANADA INVESTMENT

By far, the non-residential

project with the biggest impact is the upcoming liquefied natural gas (LNG) export facility. On October 1, LNG Canada announced that its joint venture participants, Shell, PETRONAS, PetroChina, Mitsubishi Corporation,and KOGAS, made the final investment decision to build the LNG Canada export facility in Kitimat. A report from the British Columbia Construction Association (BCCA) described the project as “a great milestone” for both the province and the nation. “BC has been given the opportunity of a generation with the announcement of LNG Canada’s project in the Northwest, specifically in Kitimat,” says Chris Atchison, president of the BCCA. “This project has significant implications throughout the entire provincial construction workforce.” “The investment decision presents a tremendous opportunity for BC’s skilled tradespeople, from safety training and apprenticeship to sustainable employment and career development. Even if you’re not working in the north, the draw to the north will open opportunities in other regions. All the industry is excited, and we’re excited.” This is the single largest private sector construction project in Canadian history, at $40 billion: in one announcement, the SEE CONSTRUCTION |  PAGE 19

17

Business owners like Mary-Anne Bowcott of Westcom Plumbing and Gas, are working to encourage more women to join the construction labour force

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FALL 2018 If you’re an employer or skilled tradesperson working in BC’s industrial, commercial, or institutional construction industry, you are well aware that there are many opportunities and challenges in front of you right now. The BC Construction Association and the four Regional Construction Associations are here representing you provincially and locally. We are non-partisan and non-profit, and we’re working on behalf of union and open shop employers to ensure a productive and resilient construction industry that works for everyone in BC.

Make sure your government and industry leaders know the real story: we want to hear from you. WORRIED ABOUT FORCED UNIONIZATION?

TELL US WHAT YOU THINK:

VOICES.BCCASSN.COM

BIT.LY/BCCA2018

WORKFORCE TRENDS

5 YEAR TREND

24,347 251,707 $57,647 11,700 1 in 45 95% 13% #1 $254B

Number of construction companies in BC (92% have less than 20 employees)

12%

Number of employees in BC’s construction sector

12%

Average yearly wage of BC construction employees ($14.5B cumulative yearly wage)

Number of construction jobs in BC that will be unfilled due to labour shortages by 2027*

53%

BC high school grads enter construction trades programs within 1 year of graduation

89%

Percentage of the construction workforce in BC that is male

Percentage of the construction workforce in BC that is unionized (10 year trend)

Construction’s Rank as an Employer in BC’s Goods Sector

4%

Value of Proposed Construction Projects in British Columbia

$115B

Value of Current Construction Projects in British Columbia

Get up to speed on key issues...

0% 33%

8.6%

BC Construction Industry Contribution to BC’s GDP

BCCASSN.COM/ADVOCACY


CONSTRUCTION

NOVEMBER 2018

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value of projects underway in BC jumped 53 per cent, from $75 billion to $115 billion. “Though there are some nervous pangs as the industry faces the workforce development challenges that come along with the LNG Canada project, the overall benefits and long-term economic impact cannot be overstated. BCCA has been collaborating with LNG Canada for several years on workforce development strategies: they are a great partner and have proven their long term to commitment to the people of BC.” Current stats indicate the facility will need about 10,000 skilled tradespeople at the peak of construction, and LNG Canada is aiming for a workforce comprised of 25 per cent apprentices (2,500). The BCCA is currently administering a $1.5 million LNG Canada Trades Training fund, which is designed to support industry and apprenticeship training for construction and related trades in BC. So far, over 1,200 apprentices have been funded, and $130,000 rem a i n s i n t he f u nd. T hese funds are available to small and medium-sized employers, who can apply online through www. bccasn.com.

LABOUR SHORTAGE BuildForce Canada’s annual report included the following summary of BC’s construction industry: “British Columbia’s near-term growth outlook is strong relative to other Western provinces, but much of the available surplus workforce released from Alberta when the oil price fell in 2015 and major project activity declined, has already been

absorbed in British Columbia or by other provinces. Relying on the supply of out-of-province workers may become increasingly difficult going forward. Meeting ongoing labour demands will be contingent on the industry’s ability to continue attracting and training workers from outside construction or from outside the province as many of the province’s major projects reach peak demand requirements.“ This report showed that the next decade will likely see the exit of nearly 41,000 skilled workers to due retirement or mortality (about 22 per cent of the current labour force). This is contrasted with an estimated 33,000 firsttime new entrants expected to be drawn from the local 30 and younger population. “Construction in BC is undoubtedly facing a skilled worker shortage, even though we’re making tremendous strides in appealing to youth, women, Indigenous populations, and new Ca nad ia ns,” says Atch ison. “We must stay committed to a progressive culture shift in construction and embrace necessary changes. This includes ensuring a safe and productive workplace for everyone.” “In essence, we’re reaching out to non-traditional sources of labour and construction, especially targeting youth. The aging construction workforce, where two-thirds are 45 or older, simply won’t be able to fill all of the job opportunities. We want to embrace all labour sources, and need to ensure that the safety standards and measures of productivity endure no matter how the face of construction changes.” In the coming decade, the province’s population growth is expected to average about 1 per cent

per year, and migration is poised to become the key driver of BC’s aging population. With the gap between births and deaths continuing to narrow, the recruitment of non-traditional sources of labour and construction is crucial to ensure the well-being and continued growth of the industry. For this reason, many industry professionals are campaigning to create more inclusive workplaces to accommodate a growing number of female tradespeople. Information compiled by the federal government suggests that women comprise approximately 54 per cent of the nation’s workforce, but represent less than 10 per cent of Canadian construction industry employees – a statistic that may actually inflate a more disheartening percentage. “I believe the statistics include women who work in the office and in administrative capacities in those numbers, and essentially lump all ticketed trades not just construction trades under the overall umbrella of construction. This would include persons such as hairdressers, which are certainly not part of construction,” explained Katy Fairley, a Director with the Canadian Construction Association (CAA). “If we were to drill down into those numbers, and from what I know through personal experience, the actual percentage of women directly working in the industry in an active role would likely be closer to five to seven per cent, so obviously there’s lots of room for improvement.” In its recently released National Summary covering the years 2018 to 2027, BuildForce projected that the present skilled labour

19

Chris Atchison is president of the British Columbia Construction Association

“Our number one priority is safety, and we are unwavering in our recommitment to the wellbeing of the workforce, both physically and mentally. It’s clear to us that personnel are our most valuable resource. Our goal is to ensure that safety remains a priority on site so workers can return home happy and return to a safe work site the next day.” CHRIS ATCHISON PRESIDENT OF THE BCCA

SEE CONSTRUCTION |  PAGE 21

MANDATORY UNIONIZATION THREATENS BC CONSTRUCTION PROJECTS “We’re a formidable BCCA Speaks Out Against New Provincial Government Policy

BC

- “This is easily one of the biggest issues to f a c e t h e c onstruction industry in decades.” Ch ris Atch ison, pre sid ent of the British Columbia Construction Association (BCCA) is referring to the mandatory union requirement inside the Community Benefits Agreement (CBA), a new BC government policy with consequences that are worrying a majority of construction professionals. The CBA creates a new Crown Corporation, called “BC Infrastructure Benefits Inc.” (BCIB), that will hire only union workers from a designated union for construction of major public projects. This new Crown will replace contractors as the employer of all tradespeople

industry, and to put such an onerous condition on construction employers sends the wrong message about the provincial government’s priorities. Skilled tradespeople are a contractor’s most valuable asset: limiting their ability to manage their own workers introduces risk. And contractors don’t like risk.” CHRIS ATCHISON PRESIDENT OF THE BRITISH COLUMBIA CONSTRUCTION ASSOCIATION (BCCA)

working under the scope of the CBA. Open-shop companies can still bid on projects, but if they are successful their employees will be required to join a designated union. “The BC construction industry employs over 251,000 workers, and contributes about 8.6 per cent of the province’s GDP,” remarks Atchison. “We’re a formidable industry, and to put such an onerous condition on construction employers send s t he w rong message about the provincial government’s priorities. Skilled tradespeople are a contractor’s most valuable asset: limiting their ability to manage their own workers introduces risk. And contractors don’t like risk.” According to recent data, there are over 24,000 construction companies in the province, and 92 per cent of these have under 20 employees. Of the industry’s 251,000 plus workforce, only 13 per cent of industry employees are unionized.

The BCCA believes that there was inadequate industry consu ltation prior to the introduction of the policy, and has conducted live polls at a series of town hall discussions attended by leading representatives from BC’s leading industrial, commercial, and institutional construction employers. Of those polled, which included a representative mix of union and open shop contractors, 94 per cent said the negative financial impacts of the CBA on project costs will be extremely significant, and 96 per cent said they are less likely to bid on a public project that falls under a CBA with required unionization. At one of these discussions, a contractor commented “The CBA union requirement makes government an owner to avoid, not an owner of choice.” T he BCCA i s a non-pa r t isan, mixed-membership (both u n i o n i z e d a n d o p e n s h o p) organization. “Our organization and the vast majority of the professionals

we represent believe this policy isn’t good for our industry, communities, or economy,” says Atch ison. “We have recommendations for Minister Trevena and the Premier that can productively achieve the local hiring goals without the need for conscription into a specific union. We are looking for a productive platform where our voices can be heard before the CBA negatively affects public project procurement.” Construction employers and tradespeople are invited to participate in a letter writing campaign to express their concerns about mandatory unionization. “We encourage people to engage with their MLAs and let them know: this policy is not only bad for the industry and for the future of infrastructure projects, it is a breach of the constitutional rights of construction workers to freedom of thought and assembly,” he continues. To participate in the BCCA letter writing campaign, visit voices.bccassn.com


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CONSTRUCTION

NOVEMBER 2018

5th Generation Owner Leads E.B. Horsman Into the Future E.B. Horsman & Son One of Canada’s Largest Independently Owned Electrical Distributors

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ANCOUVER ISLAND - After over a century in business, E.B. Horsman & Son boasts the largest branch network in the province for an electrical distributor. The family-owned enterprise was founded in 1900 in Moosomin, Saskatchewan by Edward B. Horsman and his son, George. After visiting British Columbia in 1907, Edward and George decided to move its operation to Vancouver, where the business began to grow and flourish. E.B. Horsman & Son ran as a hardware store in the Lower Mainland until 1923, when they started focusing on electrical products. The business is now exclusively a full line electrical distributor, with over 50,000 electrical products to choose from and supported by the staff’s technical expertise. “The company has remained family-owned to this day, and our current president and CEO Tim Horsman is a fifth generation owner,” says Wayne Zabel, branch manager for E.B. Horsman Victoria. “We’re currently one of the largest independently owned electrical distributors in Canada and have been designated one of Canada’s Best Managed Companies for nine consecutive years.”

“The company has remained family-owned to this day, and our current president and CEO Tim Horsman is a fifth generation owner. We’re currently one of E.B. Horsman & Son achieved Platinum Club status with the Canada’s Best Managed Companies program by retaining its Best Managed designation for nine consecutive years​ With 21 branches across BC, Alberta, and Saskatchewan, the company has the resources to meet a wide range of needs in the industry. The 21 branches, five of which are on Vancouver Island, serve industrial, commercial, institutional, and residential markets. The primary distribution center in South Surrey manages about 20,000 SKU’s using one of the latest technologies in warehouse

the largest independently owned electrical distributors in Canada and have been designated one of Canada’s Best Managed Companies for nine consecutive years.” WAYNE ZABEL, BRANCH MANAGER FOR E.B. HORSMAN VICTORIA

management systems to ensure customers receive the right products on time. “One of our greatest strengths is our operational excellence and logistics expertise,” says Zabel. “Our distribution centre sends shipments every single day to every single branch. That means that all branches essentially share inventory and have access to an enormous selection of products that can be shipped overnight for most branches. Additionally, we have several specialty divisions within the organization that support the branches and customers with technical applications. We are the only full line electrical supplier to have Process Instrumentation, Automation, and Controls (PAC) divisions in Western Canada.” According to Zabel, PAC, Data Communications, Lighting and Project Management specialty divisions provide the technical support and expertise required for industrial and commercial applications, bringing in knowledge to supplement the day-to-day operations as well as large projects. Its Vancouver Island branches include Victoria, Duncan, Parksville, Courtenay, and Campbell River.

“The Victoria branch is the Island’s newest full-line electrical branch as of February of 2018,” says Zabel. “Because of the way our locations are spread out, we can serve the entire Island from top to bottom.” From the branches, the company has been providing electrical supplies to the best electrical contractors, industrial integrators, large industrial companies, schools, hospitals and utilities that make up the fabric of our Vancouver Island communities. As a company that’s deeply rooted in communities around the province, E.B. Horsman & Son prioritizes generosity, especially when it comes to the BC Children’s Hospital and proud of its staff engagement. “The Children’s Hospital is the main beneficiary of our donations,” says Zabel. “It’s on the radar at every single event we put on, including golf tournaments, hockey pools, and barbeques. “Giving back to our community is part of the company’s core values and culture. We also help support some important scholarship programs that will ensure the next generation is equipped to enter the workforce.” www.ebhorsman.com

Unsafe asbestos abatement: It’s not worth the risk Asbestos exposure remains the leading cause of occupational disease in the province; those with the highest risk of exposure are maintenance, custodial, and contract workers hired for repairs or renovations in and around commercial buildings. Under the Workers Compensation Act, commercial property owners are required to maintain any land “being used as a workplace in a manner that ensures the health and safety of persons at or near the workplace.” If your work disturbs asbestos-containing materials (ACMs), you and your workers face a risk of exposure to asbestos. That’s why WorkSafeBC’s prevention officers are conducting planned inspections of commercial demolition and renovation worksites to ensure prime contractors, hazardous-materials consultants, abatement contractors, and demolition contractors are properly informed and equipped to safely remove ACMs. The officers are ensuring that the whole process, from start to finish, is done in compliance with the Occupational Health and Safety Regulation. What are the risks? From a professional standpoint, the consequences of

improper handling and disposal of asbestos are serious. Not dealing with asbestos properly can result in WorkSafeBC fines or Stop Work Orders, which will harm your business through lost hours, blown deadlines, and cancelled projects. And if word gets out that you cut corners and don’t take asbestos seriously, it could harm your professional reputation. Professional reputation aside, what about the health of you and your workers? Exposure to asbestos is the number one cause of death for workers in the construction industry. It can lead to devastating health complications later in life including: mesothelioma, asbestosis, lung cancer, and more. If you’re an employer, you’re responsible for your workers’ health and safety, and that includes protecting them from asbestos exposure. Follow the protocols to identify asbestos properly and remove it safely, and comply with required work procedures. You have a responsibility to do your job, do it right and protect everyone from the dangers of asbestos. We’re here to help You can find the Occupational Health and Safety Regulation and Guideline and a variety of resources to help you learn more about how to prevent occupational asbestos exposure at worksafebc.com/asbestos.


CONSTRUCTION

NOVEMBER 2018

21

ARE YOU READY TO INCREASE YOUR PROFIT MARGINS? We help general and trade contractors across Vancouver Island, providing consulting services that give them effective strategies to The Council of Construction Associations (COCA) represents all major construction associations in BC, acting as a liaison with WorkSafeBC

CONSTRUCTION CONTINUED FROM PAGE 19

shortage that is impacting companies across the nation will continue to worsen. In the summary of the BuildForce Canada report, Bill Ferreira, the group’s Executive Director said the industry has to take steps to head off a potential labour crisis. “This decade, Canada needs as many as 277,000 construction workers to meet labour demands and counter rising retirements,” he said. “With these challenges in mind, the industry will need to step up recruitment efforts and do all it can

to encourage far more new Canadians, women, and Indigenous people to join Canada’s construction workforce.” For Fairley, while progress has been made, the present small percentage of female involvement is an obvious sign that there’s still plenty of room for improvement. “There’s no escaping the fact that the older segment of our industry is leaving which creates a real potential for women,” she concludes. We’re now acutely feeling what a labour shortage does to construction and it’s not a problem you’re going to

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Construction Advisory Services

SEE CONSTRUCTION |  PAGE 22

Do you own a rental property? Legislation regarding property management in BC changes frequently, here's a few things you need to know: The vacant possession clause has been abolished - all tenancies go month-to-month after the lease ends. The annual rental rate increase is 2.5% for 2019. The damage deposit may not exceed 1/2 of one month's rent. The pet deposit (if applicable) may not exceed 1/2 of one month's rent. Tenants must be given two full months' notice if the landlord or a close family member intend to occupy the unit. Tenants must be given four full months' notice if the landlord intends to displace them to renovate the unit.

Rather have a professional management company keep up with the changing legislation for you?

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michelleb@thepropertymanagers.ca

Offering full service property management in Nanaimo 503 Comox Road

Nanaimo, BC.

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NOVEMBER 2018

WorkSafeBC and the Council of Construction Associations area always working to ensure construction workers are as safe as possible

CONSTRUCTION CONTINUED FROM PAGE 21

fix by looking at only 50 per cent of the population, you simply have to put it on the table for the other 50 per cent as well, make it an option and women will recognize it and take it.”

WORKPLACE SAFETY In order to ensure that the industry remains an attractive field to new hires, construction associations and government bodies

are always working to ensure the work site is as safe as possible. ““There’s so much going on in the realm of workplace safety, including questions regarding COR requirements and the legalization of recreational cannabis,” comments Atchison. “With these issues and more, we have tremendous resources in WorkSafeBC, the BC Construction Safety Alliance, and COCA to make sure the needs of construction owners and employees are met.” The Council of Construction

Associations (COCA) represents all major construction associations in BC, acting as a liaison between the sector and WorkSafeBC on all workplace safety matters. Currently, the industry contributes about $240 million in assessments to WorkSafeBC, which comprises about 20 per cent of the organization’s total assessment revenue. The primary role of COCA is SEE CONSTRUCTION |  PAGE 24

While residential construction is projected to decline over the next decade, non-residential construction is poised for rapid growth

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24 CONSTRUCTION CONTINUED FROM PAGE 22

focused in three main areas: developing consensus on construction policy positions; addressing legislative, regulatory policy and practice issues within the workers’ compensation system in BC; and assisting individual employers, contractors and associations with their WorkSafeBC concerns. COCA is governed by an independent Board of Directors, drawn from member/partner associations, which are comprised of construction and trade associations operating in BC. The BC Construction Association provides administrative support and acts in capacity of secretariat. “Our number one priority is safety, and we are unwavering in our commitment to the wellbeing of the workforce, both physically and mentally,” Atchison continues. “It’s clear to us that personnel are the most valuable asset. Our goal is to ensure that safety remains a priority on site so workers can return home

CONSTRUCTION

NOVEMBER 2018

Currently, the industry contributes about $5V6 million in assessments to WorkSafeBC, which comprises about 56 per cent of the organization’s total assessment revenue

The construction industry contributes about 8.6 per cent of BC’s GDP happy and return to a safe work site the next day.”

COMMUNITY BENEFITS AGREEMENT In the midst of the excitement surrounding new projects in Northern BC and elsewhere, the industry is facing a major challenge, brought on by a provincial government legislation. The government’s new Commu n ity Benefits Ag reement includes a clause that is worrying a vast majority of industry professionals. This portion of the agreement creates a new Crown Corporation, called “BC Infrastructure Benefits Inc.” (BCIB), that will hire only union

workers from a designated union for construction of major public projects. “This is easily one of the biggest issues to face the construction industry in decades,” says Atchison. Open-shop companies can still bid on projects, but if they are successful their employees will be required to join a designated union. Of the sector’s 251,000 plus workforce, only 13 per cent of industry employees are currently unionized. The BCCA believes that there was inadequate industry consultation prior to the introduction SEE CONSTRUCTION |  PAGE 25

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CONSTRUCTION

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CONSTRUCTION CONTINUED FROM PAGE 24

of the policy, and has conducted live polls at a series of town hall discussions attended by leading representatives from BC’s leading industrial, commercial, and institutional construction employers. According to Atchison, the vast majority of professionals represented by the BCCA oppose this forced unionization policy. On behalf of industry stakeholders, the organization has put together recommendations for Minister Trevena and the Premier that will contribute to the goal of achieving local hiring goals without the need for conscription to a specific

union. “We are looking for a productive platform where our voices can be heard before the CBA negatively affects public project procurement,” he says. “We encourage people to engage with their MLAs and let them know: this policy is not only bad for the industry and for the future of infrastructure projects, it is a breach of the constitutional rights of construction workers to freedom of thought and assembly.” Construction employers and tradespeople are invited to participate in a letter writing campaign to express their concerns about mandatory unionization. To participate in the campaign, visit voices.bccassn.com

25

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ADVANTAGE STEEL FABRICATING & WELDING

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Pat Hoskins

1345 Fisher Road, Cobble Hill, BC V0R 1L0

Tel: 250 250--743 743--8981 Of the industry’s 251,000 plus workforce, about 13 per cent of employees are currently unionized

THE TRUSTED LOCAL CHOICE Your relationship with NAI Commercial Central Vancouver Island doesn’t have to end at finding the right piece of commercial real estate. Our expert property management team manages office, retail and industrial properties, as well as government and institutional facilities.

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Fax: 250-743-8962 Cell: 250 250--715 715--895 8951 1

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WHAT WE DO: Planning and budgeting based on owner objectives and market analysis The full range of physical management including 24-7 response Complete financial management and trust accounting Regular operational and financial reporting Lease renewals and documentation Mortgage financing and refinancing Corporate administration

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NOVEMBER 2018

Kinetic Construction Lean Focus Reaps Dividends BY MARK MACDONALD BUSINESS EXAMINER

V

ICTORIA – An evolutionary cultural change within Kinetic Construction is starting to pay big dividends inside and outside the company. When majority shareholder Tom Plumb became President and CEO three years ago, he brought in a new way of doing business: Lean Construction methodology which was adapted for the construction sector in 1997. The concepts were originally introduced decades ago by Toyota Japan. “Lean is a system of targeting and delivering value through constant improvement while eliminating waste in our processes,” he states. “Waste, in all its forms, is the largest component of any process and it applies to every aspect or a business from office to site. “Lean is primarily a culture of continuous improvement, collaborative problem solving, and the application of management tools designed to deliver better experiences and outcomes.” It can really be boiled down to helping people find their passion, and it’s resulting in increases in employee efficiency within Kinetic, and across the industry. Started in 1984, Kinetic Construction is an award winning, fully employee owned organization that has built hundreds of institutional, commercial, civil, and multi-unit residential projects on Vancouver Island and the lower mainland. Kinetic now has over 150 employees throughout its three branches: head office in Victoria, Courtenay and Richmond. They are currently involved in 39 projects, including 18 in Victoria, 14 in the Vancouver area, and 7 based in the Comox Valley. Kinetic is working on the $200 million Fleet Maintenance Facility Cape Breton in Esquimalt, and the largest project ever built at the University of Victoria, a $135 million, 780 unit student housing and food services building. “We’re trying to make a better working environment, and Lean is helping us do that,” he says. “It’s like saying the customer doesn’t come first - employees do. When you take this approach the customers’ experience is better from

Camosun College in Victoria is a Kinetic Construction project

“Lean is primarily a culture of continuous improvement, collaborative problem solving, and the application of management tools designed to deliver better experiences and Tom Plumb is President and CEO of Kinetic Construction, which has offices in Victoria, Richmond and Courtenay interacting with engaged people who care. “We’re creating a healthy culture by empowering people. That is our purpose as an organization and mine as CEO,” he says. “We want purpose-driven problem solvers, not just mechanical processors.” Health and Safety Manager Matt Goffinett has been tasked with implementing a culture of safety in the company, and the statement “See It, Say It, Fix It” has been emblazoned on company t-shirts and hard hats. “We’re investing in people to teach them to think differently,” he notes. “Here’s the basic rule for every management person here. ‘Your employees don’t work for you. . .your job is to take care of them’. That’s the arrangement.” The response has been overwhelmingly positive, Plumb says, noting that employees have seen

first-hand they can actually play a hands-on role in improving the way things are done, and giving them a whole new lease on their career. It’s also helped Kinetic Construction in recruiting new employees, even with the lack of skilled workers challenging the entire industry. “I’m actually trying a different angle now, and I’m two for two so far,” Plumb notes. “I’m trying to convince young people with university degrees that have not been able to connect into a job, that construction and what we’re doing is going to be an exciting place for them to be. “I’m basically telling them ‘If you have a university degree and are working in a coffee shop, come and see me’,” Plumb says, invitingly. “Very few people have found out what their purpose in life is, and I ask them that question directly,” he adds. “It’s really good to

outcomes.” TOM PLUMB PRESIDENT AND CEO OF KINETIC CONSTRUCTION

connect with people that way. It makes them ask the question: ‘Am I a part of something bigger than just this job?’ That’s what we want our employees to see when they work with us.” Plumb says Kinetic Construction will be offering budgeting advice to employees so they can take advantage of the company’s RRSP contribution plan to help them handle their finances and prepare for the future. By doing so, the company is demonstrating its concern for the whole person, not just the employee who shows up on the job site from 9 to 5, 5 days a week. Plumb was working in the forest industry as a faller when he had three close calls in a three week stretch that caused him to go back

We use our leadership position, passion for innovation and collaboration to help build a strong industry. Construction Manager • General Contractor • Design Builder Victoria | Richmond | Courtenay Toll Free: (877) 205-8473 | www.kineticconstruction.com

Recent project: Yello on Yates, Rental Residential Building

to school to earn drafting and Building Technologist Diplomas from BCIT, and he later obtained his Red Seal trade certificate in carpentry. He has done virtually every job in the company, which he believes has helped him immensely as CEO. “My time in the field, in the wind and the snow and the rain and the hot sun helped me as CEO, because I understand what our employees are doing,” he says. “It also gave me a great deal of empathy for our staff, because I know what they do is not easy.” It has helped prepare him to manage people the Lean way. “The old construction way was you used a hammer to get your way, and if you had a hard job, you used a bigger hammer,” he says. “I think a paint brush is a better tool, because working with humans is an art form. People respond better that way. “Amazingly, people do appreciate that you actually do care about them.” The result? Not just better ways to deliver projects including IPD (Integrated Project Delivery) and TVD (Target Value Design), which requires Lean thinking and methods where the entire construction team is created early in the process to collaboratively design, plan, cost, and deliver the project with the trifecta of Cost/Quality/and Time. But happier, more fulfilled employees who do their jobs with a true sense of purpose, and are encouraged to think of better ways to better serve the company’s clients and deliver more value. www.kineticconstruction.com


CONSTRUCTION

NOVEMBER 2018

J.R.E Hardware Breaks Industry Norms Locally Architectural hardware producer sees big opportunity

J.R.E. Hardware’s head office was built last year at 1870 Dufferin Crescent in Nanaimo PHOTO CREDIT: J.R.E. HARDWARE

N

ANAIMO – Since 2013 J.R.E. Hardware has been making waves in the Island construction community; working on large care facility projects, residential renovations and opening its first public storefront at 1870 Dufferin Crescent. Since its inception the company has been breaking through the industry-norm by producing stainless steel architectural hardware products – a longer lasting, stronger alternative to aluminum and other mixed metal material. The product line includes component-based railing systems, grab bars & accessibility hardware, bathroom finishing accessories, door pulls, handrail brackets, glass shower hardware and top of the line barn door slider systems. Founder Rob Turgeon worked as licensed contractor building custom homes and several other projects that required specialized hardware; however he found it challenging to source these products locally. “Back in 2012, I realized that the Island didn’t have much to offer other than standard, regular hardware, and saw a gap in the market,” he says. “I started manufacturing hardware in high-quality, stainless steel and people started noticing. Next thing you know, trusted names like Slegg, Windsor Plywood and Dick’s Lumber started distributing my products.” J.R.E. started off exclusively selling wholesale to lumber yards and specialty hardware stores in Victoria, Vancouver and various Island communities. “As we grew, we decided to build our current location, which opened in the last year,” says Turgeon. “Now our doors are open

An example of the company’s ability to provide premium stainless steel architectural hardware products PHOTO CREDIT: J.R.E. HARDWARE

to building professionals and to the public directly. We sell on all levels now, which was a big step forward for the business.” At any given day, new projects are hatching in the showroom. Couples are dreaming up their perfect custom stairway railing, or a contractor is discovering the perfect piece of hardware. J.R.E’s small company feel creates a welcoming environment for customers, but don’t let it fool you – they are capable of projects of any size. So far the reception has been extremely positive, as consumers have quick access to a catalogue of new, in stock products from a local, Vancouver Island producer. “Everyone we’ve worked with thus far have appreciated that they can get a part when they want it, instead of waiting for it to be shipped in,” says Turgeon. “We do all of our business with a personal approach, so customers are talking directly to one of our team members. When you consider our service quality with the product

line we’re carrying, there’s nothing else like it in the province.” Turgeon and his team have started making headway in large project procurement, providing hardware to care facilities in Nanaimo, Langford and Burnaby. They are currently supplying accessibility hardware at a 320-bed care facility project in Victoria. “So far, the large project procurement side of our business has been really successful,” he says. “We’re leaning into that side of the business right now, looking at supplying large condo developments and other facilities with all their hardware needs.” J.R.E. Hardware competes for large tender and are actively seeking out more projects and developers within the B.C. market. In the coming years, Turgeon is looking to expand, with a new store location in Victoria and at least one in the Lower Mainland. A genuine, local company ready to compete in the big industry markets. www.jrehardware.com

27


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NOVEMBER 2018

ROCKY POINT ENGINEERING BRINGS CREATIVITY AND INNOVATION TO A WIDE RANGE OF PROJECTS Engineering Firm Serves BC For Over 20 Years

N Vancouver • Langley • Victoria • Nanaimo • Kelowna • Kamloops • Nelson

Rocky Point Engineering is a leader in the building engineering industry. • Performance Based Mechanical Design • Whole Building Energy Modeling • 3D BIM Design/Drafting • Mechanical Consulting & Advisory Services

• Mechanical System Audits • Dust Collection Systems • Commissioning Services • Celebrating 21 Years!

Mechanical Room Revit Model

102 - 3721 Shenton Road Nanaimo, BC V9T 2H1

P: 250.585.0222 E: info@rpeng.ca

www.rpeng.ca

ANAIMO - For over 20 years Rocky Point Engineering Ltd. has been offering creative and innovative design solutions for projects all over the province. In operation since 1997, Rocky Point is a growing building services mechanical engineering company. The privately owned firm has 70 staff members working out of offices situated in Vancouver, Langley, Victoria, Nanaimo, Kelowna, Kamloops and Nelson. This staff includes 13 Professional Engineers, 13 registered EITs and 16 LEED® accredited professionals. The company has provided a wide variety of detail-oriented engineering services including heating, ventilation, air-conditioning, plumbing and fire protection to its diversified clients within the education, healthcare, civic/government, recreation, commercial, residential, data centres, wood & metal workshops and hospitality markets. “We work on a wide range and scale of projects, from jobs that take a few hours to jobs that take several years,” says Principal and

Marcielo, 77 Chapel Street, Nanaimo, BC, Starting 2019

Nanaimo Office Manager Aaron Mullaley. “We’re trying to provide a service to our local communities, and that means being flexible and open to a diverse range of project opportunities and industries to work in.” “With offices all over the province, we are rooted in the communities where we work, which means we are usually close enough to a project to be available whenever we’re needed,” says Darcy Pederson, an Associate and Project Manager working out of the Nanaimo branch. By constantly innovating and utilizing the latest technology, Rocky Point is able to bring cutting edge consulting services to each community it serves. “We work with energy modeling and 3-D building models,” says Pederson. “Conventional design has been in 2-D, but we have a 3-D scanner that we utilize in retrofit work. It helps us elevate the level of quality to provide a highly coordinated and accurate drawing package that translates to better value for the client during construction.” The branch has been hired for many major Vancouver Island projects, including Uplands Walk Supportive Housing in Nanaimo, which obtained LEED® Gold NC 2009 Certification, and the Comox

Valley Regional District Office Building in Courtenay, which was designed to LEED® Gold Standards and is currently in construction. The firm is currently consulting for Townley Place in Victoria, which is a three-storey, 54-unit apartment building as well as 10 new family townhomes. This project has been designed to follow Passivhaus design principles, incorporating methods to reduce energy and operational costs and increase resident comfort. Occupancy is expected in May 2020. They are also involved with the Nanaimo Airport Expansion, a $15-million project that will expand Nanaimo Airport’s (YCD) Air Terminal Building, creating business and investment opportunities at one of the country’s fastest growing airports. “All the Principals of the company are very involved in the projects we take on, from initial concepts, schematic design and final design continuing through to tender and to the end of construction,” says Pederson. Throughout the province, Rocky Point is known for its creative solutions and hands-on approach with clients. The company fosters growth, encouraging wholeteam contribution on designs for its projects. www.rpeng.ca

6540 Metral Drive, Nanaimo, BC, In Progress

From Concept to Completion ... Quality of design and service excellence on every project. Residential, Commercial and Institutional. Serving the Mid-Island Region from our Nanaimo office.

de Hoog & Kierulf architects Victoria 977 Fort Street V8V3K3 +1 (250) 658-3367 Nanaimo 102-5190 Dublin Way V9T2K8 +1 (250) 585-5810 www.dhk.ca mail@dhk.ca

91 Chapel Street, Nanaimo, BC, Completion 2019


CONSTRUCTION

NOVEMBER 2018

29

SAYWELL ATTRACTS RISING STARS TO GROWING TEAM New Hires Attracted By Company’s Philosophy, Work-Life Balance

N

ANAIMO - Saywell Contracting is continuing to add to its talented team, attracting enthusiastic, skilled employees from across Western Canada. Now in its 20th year, the company’s emphasis on teamwork, work-life balance, and relationship-based business is attracting some of the brightest stars in the industry. Travys Nieviadomy joined the company a few months ago, moving from his home in central Alberta where he worked as a land developer. “When I was applying for jobs out here, I hit it off with the Operations Manager, Karl Binder, right away,” he says. “They have a great philosophy regarding transparency and honesty with clients, and it’s an amazing team. “I’ve never been part of this type of atmosphere, where they promote a strong work-life balance. It’s hard to come by these days. When I interviewed with Karl, he took me to Sheldon Saywell, and it was so refreshing to see that there’s a like-minded

The Magno a townhome pro ect near Country C ub Centre s one of Saywe s more recent deve opments Coordinator who joined Saywell three years ago. “Finding manpower is tough right now, but we’re still managing to get some really talented people.” According to Turch, Saywell Contracting has been an exemplary employer, especially when incorporating millennials into the workplace. “As a millennial, I’ve1 been imeB pressed with howpagthey’ve ap– S pealed to my demographic,” she 1 Rd B a e aW continues. “Everyone agket is enthusiB p Re S– Bucilling VI F do here and Rdthey astic about ic at what Wa d a clin t W Btheir work. l takeCpride in ke o e c a R Bu lling IR ic ustry c Fi ed inhave tV Rd d ini “The team emphasis mwe Co da n s o i i W t Re l cly l. t c wel a u c » hereCRois phenomena l as r c t di e r s j n o ust Rd pr the co s me nto ind ask There’s so ndmuchstfreedom Co in t i ctio sla e Re I n » questions er ec tru ew wome osuggestions, or’ nmake uv r j cons r co

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and nobody will treat you with disdain or judge you. Everybody is encouraged to speak up, and you don’t feel like you need to censor yourself.” Founded in 1998, Saywell Contracting began as a leaky condo remediation company, but has since evolved to become a leading provider of energy efficient construction and exceptional project management services for clients across Vancouver Island. “We are still the ‘go to guys’ when it comes to remediating condominiums, but since Karl Binder has joined the company, first as the Special Project Manager and now as the new Operations Manager, we have really

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focussed on new builds,” says Sheldon Saywell. Headquartered in Nanaimo, Saywell Contracting has a staff count of about 20, but will see its ranks swell dramatically with sub trades, depending on the size and scale of the project. “In some of our literature we have used the phrase ‘People Before Profit’, which is something we believe wholeheartedly,” says Saywell. “Our success and our future have been built on developing a relationship over financial gain. When it comes down to it, we’re building relationships every bit as much as we’re building structures.” www.saywellcontracting.com

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(778) 441-3123 www.rainbowintl.com/vancouver-island


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NOVEMBER 2018

GRAF EXCAVATING PLOTS 25 YEAR COURSE TO SUCCESS Nanaimo-Based Company Brings Expertise, Right Equipment to Job

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ANAIMO - Graf Excavating Company Ltd. is a professional civil contractor with 30 years of experience in the industry. W it h it s te a m of t a lente d trades people and reputation for innovative solutions, the company has grown into one of the regions most sought-after civil contractors, and has been called across Western Canada to offer expertise in civil earthwork. Celebrating the company’s 25th anniversary of incorporation was a big milestone for owners Mike and Traci Graf. “It was an opportunity to reflect on how far our company has come, the family it has created, and the relationships we have built with our customers. Our knowledge, diversity, and efficiency has provided us with a large scope of work completed all over Vancouver Island, Gulf Islands, the Alaska Highway, and as far as the Yukon Territory and Alberta,” says Traci, the company’s Office Manager. The high demand for the company’s services is a result of a reputation built by Mike Graf. He started Graf Contracting in the 80’s, as the sole employee with a single truck and bobcat. At the time, Mike was primarily working in the residential market until a general contractor witnessed him in action, hiring him to collaborate on industrial projects on the west coast of the Island in pulp and saw mills. T his was a springboard for larger capital projects, hydro & telephone duct installations, confined space excavations, environmental restorations, and concrete demolitions. “With industrial and commercial work taking up a majority of our time, Mike took on residential work to fill in the gaps, and we’ve been growing ever since,”

Graf Excavating has a wide range of machines on hand, allowing them to complete a variety of tasks, with innovative and creative solutions

The company recently celebrated its 25th anniversary

Owner Mike Graf (pictured) is known for always running to get the job done

says Traci. Graf Excavating was incorporated in 1992, shortly after Mike and Traci were married. Now over 25 years later, Traci reflects, “with a couple of decades of experience, good habits, and a timeline of milestones we have grown in ways we only dreamed of.” One of the company’s most unique distinguishing factors is work ethic.

the first time,” she continues. Several years ago, while worki ng on a job-site, M i ke was approached by a respected industry leader. During their conversation, the man called Graf Excavating “Civil Earthwork Specialists,” a title that has since been incorporated into the Graf Brand. This designation has now become one of the core identity markers of the company. “M i ke is a l l about cr it ica l

Over the years, Mike has become known as the guy that always runs and never walks,” says Traci. “Anyone who knows him, knows how hard he works no matter the size of the project.” When approaching a job, Mike and his team always work with the desired outcome and the end in mind. “Mike and the crew are known for exceeding our customer’s expectations and doing the job right

thinking and a step-by-step process, keeping the job on task and keeping his employees safe,” says Traci. “We’ve been COR accredited since 2011, and that’s no small feat. That recognition represents a process of evolving our policies and practices and putting our occupational health and safety manual into practice every day. “We want to make sure our employees and every individual

Proud partner of Graf Excavating, Congratulations on all your success! Congratulations to Graf Excavating, Wishing you continued success and growth!

965 Loftus Rd, Cassidy • P: 250-245-7625 E: scale@islandagg.com • www.islandagg.com

750-C Jackson Road, Nanaimo P: 250.722.0303 | www.abcrecycling.com SCRAP METAL BROKERAGE | BIN SERVICES | DEMOLITION | DERAILMENT


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NOVEMBER 2018

Graf Excavating was contracted to help prepare Whistler for the 2010 Winter Olympics

Graf Excavating has grown into one of the regions most soughtafter civil contractors, and has been called across Western Canada to offer expertise in civil earthwork on the job site are safe. In many cases, we run lead with on-site safety because of our dedication to our crew.” In addition to a strong emphasis on work ethics, Graf Excavating is unique in its capability to customise solutions based on its clients’ needs by owning specialized equipment, which ultimately provide cost savings to the customer. “We have the right people, right equipment, which means the job is done right,” says Traci. “Many of our clients aren’t aware of the equipment we have until we provide them as a solution to a problem onsite.” The company maintains a large fleet of excavators, tandem dump trucks, backhoes, skidsteers, rollers, breakers, boulder buster rock systems, hole hogs (which bore under roads or driveways), screening plants, trailer mounted hydro vacuum, sweepers, brush rakes and mowers. It has concrete crushing buckets, which processes rock or concrete demolition with or without steel into reusable structural fills. This saves costs for clients, and products that can be reused on site. “Many other companies have to rent these specialized pieces of equipment which adds costs, and time onto each project,” says Traci. Graf Excavating fields two Slinger trucks, which offer the most efficient way to place processed granular fills, uniform

backfilling, and controlled lifts, providing proper thickness for compaction equipment to obtain required densities on fill materials. Sl i nger tr ucks prov ide the most efficient and cost-effective method of placing any granular fills, aggregates, bedding sand, driveway chips and screened rock up to three inches in diameter. Topsoil or mulch can be placed by a slinger truck with no additional equipment required. “It’s a wonderful piece of equipment,” says Traci. “With a dump truck delivery, additional labour and machinery costs are required to spread the materials. When a slinger truck delivers, there is usually minimal, or no additional

The team working at Swy-A-Lana Lagoon in Nanaimo labour and machinery required. “Our Slinger truck trademark expression is ‘Don’t sweat it, Sling it!’ The Slinger truck can transport product and place or can be loaded with materials brought to a job site when large fills are required. Slinger trucks have the ability of getting product over obstacles and placing as needed, where needed, saving time and producing zero waste of product. All this is done with one single piece of equipment.” With the company’s extensive selection of specialized equipment, Mike is able to think outside the box to find the most efficient way to complete a job. “We offer a full lineup of reliable, high-performing machines and attachments that get the job done with efficiency, accuracy,

and power,” says Traci. “Coupled with a team of skilled tradesmen we deliver projects that meet our accredited quality, safety and environmental standards.” Over the years, Graf Excavating has worked with a wide variety of companies and pride themselves on the collaborative longterm relationships that they have built with residential builders Dogwood Mountain Homes and Pheasant Hill Homes. “Both companies are builders that have integrity, knowledge & build quality custom dream homes for their clients,” Traci comments. “We are honoured to have relationships with these companies to collaborate for the best outcome for their clients.” Graf Excavating specializes in acreage development that

includes building driveways, excavating building sites, ASTTBC accredited ROWP Installation of onsite wastewater systems, storm water management, and utility installations. Additionally, the company has worked at Harmac, installing high-voltage direct burial cable at Whistler/ Blackcomb in preparation for the 2010 Olympics, worked with BC Hydro on various substations as underground raceway installers, worked for Yukon Energy, and much more. Mike and his team are currently working on the first phase of the Nanaimo Airport Terminal Expansion. The company also values supporting its community, and since 2012, Graf Excavating has been the primary sponsor for the Nanaimo Nitros, a local adult wheelchair soccer team. “They are an amazing group of athletes that enjoy the challenge, and competitive spirit of their chosen sport. They inspire us, and we are privileged to support these athletes,” says Traci. Moving forward, Mike and the team plan on continuing to do what they do best, offering high quality service with skilled trades and top-of-the-line equipment. “Mike and I love what we do,” Traci concludes. “We just want to keep doing what we love and meeting each challenge as it comes.” www.grafexcavating.com

Bedrock Redi-Mix would like to congratulate Graf Excavating on all your success!

Congratulations on all your success!

Nanaimo Plant 250-754-0126

Parksville Plant 250-951-2344


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OFF THE COVER

NOVEMBER 2018

10th Annual BC Indigenous Business Awards Celebrates Best In The Province T’SOU-KE FIRST NATION CONTINUED FROM PAGE 1

A large contingent of people attended the event, including Partnership President Larry Johnson, who thanked partner nations Huu-ay-aht First Nations, Ditidaht First Nation, Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations, Uchucklesaht Tribe, Yuułuʔiłʔath ̣ Government and Mowachaht/Muchalaht First Nation. “This is your award,” Johnson said. “The NSLP business model is based on your vision of separating politics from business, and honoring the Nuu-chah-nulth three sacred principles: Hish-uk ts’a-walk – everything is one, Iisaak – A greater respect with caring, and Uu-a-thluk – taking care with a modern approach. “Staying true to our vision and our guiding principles does not mean we are going backwards to the past – it means we are carrying our past with us into the future – finding success in building a Principles Based Economy and telling our story,” he adds. Johnson also acknowledged Nuu-chah-nulth Seafoods board of directors, staff and legal and financial team as well as the partnerships with fishermen and women, other aboriginal commercial fishing enterprises,

Nuu-chah-nulth Seafood Limited Partnership President Larry Johnson Fisheries and Oceans Canada and Pacific Integrated Commercial Fishing Initiative, financial institutions, processing companies and educational institutions. YG President Les Doiron attended the event and said “It is a great honour to have our partnership recognized at such a prestigious event. Being part of this long-standing business is good for our citizens, and will provide income streams and employment

opportunities for our people as we move forward together.” Va ncouver Isla nd was well represented at the Awards, attended by over 650 people from across the province. “The BC Indigenous Business Awards’ program has elevated over 170 outstanding businesses from throughout the province for the past 10 years,” said Scott McIntyre, Foundation Chair. “As we mark this important decade of

excellence and look to the future, the 2018 cohort of awardees lead the way as examples of entrepreneurship, commitment and extraordinary vision, all of which play a key role in the strength of our provincial economy.” Mathew Morfitt of Van-Isle Auto Brokers was named Young Entrepreneur of the Year. Chief Gordon Planes of the T’Sou-ke First Nation received the evening’s final presentation, the Individual Achievement Award. Business of the Year (1-2 person enterprise) went to Ay Lelum – The Good House of Design clothing designers from Nanaimo. At age 17, Morfitt bought a Mercedes-Benz vehicle with an $8,000 loan and sold it a month later for $2,000 more – and an entrepreneur was born. It was 13 years later, in 2015, that he opened Van-Isle Auto Brokers at 510 Gorge Road East. The operation now has 60 cars in its inventory, employs four staff, and generates up to $5 million in annual sales. Chief Planes has been the Chief of the T’Sou-ke First Nation (Sooke) since 2007. He boldly embarked on a 100year process to build a new community vision, one that fosters a healthy Indigenous population with a focus on four pillars: Autonomy, Food Security, Cultural

R en a i ssa nce a nd E conom ic Development. Under Chief Planes’ leadership the T’Sou-ke Nation is emerging as a leader in renewable and green energy. In the last few years they have launched a solar micro-grid demonstration project that includes 440 rooftop photovoltaic solar panels, along with solar hot water panels on many of its homes. On wasteland near the nation’s Ladybug garden and nursery, three 35-by-150-foot greenhouses are being built to grow wasabi, a plant best known as a spicy condiment for sushi. The Nation has also signed a $750 million wind power partnership, and they operate oyster farms. Chief Planes recently told a group of politicians at a gathering in their community hall that “We are setting the table for future generations.” “There is an appetite for change and I really believe that the next generation is the one that is going to make positive changes. The Creator provided the resources for us to take care of ourselves. We are doing that a lot. . .I see huge opportunity for all of us and I encourage others to get in the canoe with us to build a stronger, sustainable economy. All of us can prosper together.”

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NOVEMBER 2018

We’ll be celebrating the very best in 2018 business on Vancouver Island in January

And we’re now receiving nominations! Self-nominations encouraged!

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NOVEMBER 2018

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COMOX VALLEY CHAMBER DIANNE HAWKINS

T

he Comox Valley Chamber works in many ways to engage Chamber members and the community. The Chamber is the Comox Valley’s largest and most influential business association with three full time staff members whose job it is to know what members need. What the Chamber hears from its members is they want more exposure, highly-focused networking, professional learning opportunities, business leadership, and solid connections.

Throughout the month of October, the Chamber celebrated small business. T here was a mixer at the I-Hos Gallery, a business walk with MP Gord Johns in downtown Courtenay, the Chamber had a table at the Job Shop Job Fair, hosted an All Candidates Meeting for Courtenay Councillors, held a workshop with Constant Contact about the lasting power of newsletters and another workshop on human resources, and capped it all with the Chamber’s Small Business Expo. November is the month when t he Comox Va l ley Ch a mber finalizes nominations for its annual Chamber Awards celebrating community achievements in fourteen categories. Each year the chamber receives up to 100 entries for a wide-variety of nominees. Finalists for the awards are announced beginning of December and the celebration Gala is held January 26, 2019. The Chamber welcomed new members this past month: John

Howard Society of North Island, Lighthouse Business Services, PropertyGuys Comox Valley, Cumberland Village Works, Fully Alive EFT & Coaching, Realty Executives Bayview, Revelry Photo Booth, Sylvan Vale Nursery, and Dr. Health Solutions. For more new members visit the Chamber Directory with over 500 members listed. The Chamber wishes to acknowledge our long-term members who have been with the chamber for twenty-five years: IG Wealth Management (formerly Investors Group), Comox Valley Kayaks, Comox Valley Farmers Market, All in One Party Shop, Comox Valley Funeral Home, Hot Chocolates, St. Johns Ambulance, Art Knapp Plantland, Expedia Cruiseship Centres, Islander Pizza & Pasta, Jim’s Clothes Closet, and Glacierview Financial. Dianne Hawkins is president and CEO of the Comox Valley Chamber of Commerce.

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t the ‘sold out’ Campbell River Chamber Business Awards of Distinction event, congratulations go to local business Poseidon Ocean Systems – Engineers for the Marine Environment, took home awards for both New Business of the Year, which is open to operations that have been in business for under three years. Later in the evening, the business also won in the Excellence in Innovation and Technology category. We’re really trying to put Campbell River on the global map,” Poseidon’s Heather Clarke said. “Aquaculture really is a global industry.” The Chamber took the opportunity to launch our community spirit video as part of the awards events, showcasing Campbell River business and community leaders and how together, with the Chamber, we are growing the people powering Campbell River. The video can be viewed on the Campbell River Chamber Facebook page or online at www. campbellriverchamber.ca. Meeting face to face with our members and business community, to find out what they need to thrive and prosper in Campbell River took place at the Chamber’s Business Walk on October 18. Early survey indications show that a very high percentage of busi nesses i n Campbell River indicated their business compared to same time

Bee Hive Café owners last year is doing better than the previous year. Great news with full survey results to be posted in December. According to statistics provided in the recent Destination Campbell River report, Campbell River had the highest hotel occupancy rate anywhere in the province – 97 per cent. It’s exciting to see the City achieving this high level of interest, but we are also pleased that new accommodation amenities are under development to meet these growing needs. Development activity in our community continues to increase month over month and the City’s new Development Guide was created to help cut red tape and provide information to move the process along. It’s a welcome resource. Congratulations to the newly elected City Council members including Mayor Andy Adams (acclaimed) and incumbents Michele Babchuk, Charlie Cornfield, Colleen Evans and Ron Kerr w ith newcomer Kermit Dahl and past Councillor, Claire Moglove forming Council for the next four years. Colleen Evans is President and Executive Director of the Campbell River Chamber of Commerce


35

NOVEMBER 2018

Co-CEOs Will Lead Port Of Nanaimo

N

ANAIMO - Two longti me ma nagers at the Port of Nanaimo w i l l share the Chief Executive Officer duties on an interim basis for the foreseeable future. Ian Marr, Senior Vice President of Finance & Administration, and Mike Davidson, Vice President of Real Estate, will co-manage the position. Ewan Moir left his position as President and CEO October 19 as reported in the Times Colonist newspaper recently. Moir became CEO after the retirement of former CEO Bernie Dumas a year ago. “We are very pleased to have two quality individuals who have served the Port so well for many years who are willing, capable and able to help steer the path for the foreseeable future,” says NPA Chair Michelle Corfield. “Both Ian and Mike have excellent reputations and are well-liked and respected within the NPA organization, and in the community.” Originally from Scotland, Marr started working for the Nanaimo Harbour Commission, as it was then called, in 1987, in property leasing. A Certified General Accountant and Chartered Professional Accountant, he has been in his current position for five years. Davidson was raised in Nanaimo, and is well known in local basketball circles, starting with being a member

was the popular waterfront walkway, which extends over both Port and City of Nanaimo property from downtown Nanaimo to the Brechin Point boat launch. “The NPA Board would like to

Ian Marr

Mike Davidson

of the 1978 provincial high school basketball champions from Nanaimo District Senior Secondary School. After graduating from Malaspina College (now Vancouver Island University), he joined the Port in 1985 and has been in managing Port properties since 1992. “The Port of Nanaimo has a lot of good things going right now,” Davidson says, pointing to the recently announced $18 million Vehicle Processing Centre, and the $10 million Western Canada Marine Response Corporation operation, as well as the expected arrival of the

Island Ferry Service from downtown Nanaimo to downtown Vancouver foot passenger ferry that is anticipated to start next year following the completion of negotiations for a terminal site in Vancouver. “The combination of skills and background from Mike and Ian puts us in very capable hands during this transition time,” says NPA Vice Chair Donna Hais. “The decision to let them share the CEO position has been well received by our staff and clients.” One of the major projects Davidson and Marr worked together on

thank Mr. Moir for his service over the past year,” says Corfield. “He made some strong contributions to our operations, and we wish him the best in his future endeavours.” www.npa.ca

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NOVEMBER 2018

CARMAC DIESEL KEEPS NORTH ISLAND RUNNING Family-Owned Business Specialize In International And Mack Trucks

C

AMPBELL RIVER Family-owned Carmac Diesel Ltd. has been building a reputation of excellence for over 40 years. The company specializes in highway trucks & trailers; sales, parts & service; providing warranty service on International and Mack brand vehicles. At the same time, Carmac continues with its roots of diesel engine repairs. The shop’s technicians are trained using the most current tools and troubleshooting methods available to troubleshoot, repair and maintain clients’ equipment. “We work on a wide variety of equipment, including commercial transport, logging, mining, and marine,” says co-owner Scott Beaudin, who runs the company with his wife Cori. “We work to support most of the industries in Campbell River and the North Island in both parts and service.” Carmac Diesel was established in 1975 by Cori’s father, John McKinnon. “He and his business partner were working as technicians in the Lower Mainland and decided that opening a shop on the Island would allow for a better lifestyle,” says Scott. Though it began as an exclusive Detroit Diesel engine repair facility, the company gradually expanded its products and services to include Cummins and Perkins diesel engines, Allison Transmissions and Twin Disc marine gears. In 1990, McKinnon purchased his partner’s assets in the company and became the sole owner. That same year, Cori came to work for her father and started an apprenticeship in the parts department. In 1996, Scott, a ticketed Commercial Transport Mechanic, began working there as well. Due to a decline in the economy and some tough times in

The team at Carmac Diesel the logging industry, Scott approached John with the idea of starting to work on trucks. Over the following years, Carmac created a relationship with International, and today is a full parts, service and warranty repair facility for the International brand. “We’ve proud ly been w ith International for about 14 years, and it’s this relationship that made the largest changes in our business; it’s when we started to become known as a truck facility, not just an engine facility,” says Scott. “In August 2015, we linked up with Nanaimo-based Vancouver Island Mack to start supporting the Mack product. Vancouver Island Mack has been an incredible ally of ours, and we are the primary North Island repair facility for both of these brands.” In 2008, Scott and Cori re-organized the business to allow for John’s retirement and have been running the business ever since. During this time the business has quadrupled in size, and a little over four years ago, Carmac moved to its current location, where 17 employees work in a 14,000 square foot building on 16 acres of property. From this location, the company serves as: a certified commercial vehicle inspection facility,

“We work on a wide variety of equipment, including commercial transport, logging, mining, and marine. We work to support most of the industries in Campbell River and the North Island in both parts and service.” SCOTT BEAUDIN OWNER OF CARMAC DIESEL LTD.

Scott and Cori Beaudin are second-generation owners of Carmac, fully taking over in 2008 upon the retirement of Cori’s father, John McKinnon

a warranty repair center for International and Mack trucks, a warranty repair center for Cummins and Detroit Diesel engines, and a 24/7 roadside assistance provider. Their teams of qualified truck and engine technicians provides maintenance and repairs to all makes and models of trucks, and are capable of performing complete engine overhauls within the facility. The shop also offers power generation sales, installs,

and repairs. T he parts department specializes in International parts, Mack parts, truck and trailer allmake parts, and engine parts. With decades of combined experience, the parts department staffs’ motto is “if we don’t have the answer, we will find someone who does.” The variety of jobs taken on by Carmac is one of its main distinguishing factors. Offering sales and service for logging, mining,

Proud partner of Carmac Diesel, Congratulations on all your success! Vancouver Island's source for Mack Trucks and genuine Mack parts Nanaimo: 250.758.0185 | Cassidy: 250.585.9220 | Langford: 778.426.0185 www.vitrucks.com

commercial transport and marine vehicles, the company is able to extend an array of services unparalleled in the area. “Though our main focus will continue to be in the commercial transport industry, we’re proud of the fact that we can meet so many needs in our area,” says Scott. “I think the biggest factor we strive for is to build a business that is always trying harder,” says Parts Manager Jeff Doyle. “We’re always trying to give the


37

NOVEMBER 2018

Carmac operates out of a 14,000 square foot facility on 16 acres of land

The shop’s technicians are trained using the most current tools and troubleshooting methods available to troubleshoot, repair and maintain clients’ equipment

“We’re always trying to give the best customer service possible, and that comes through working as a team and striving to always do better and be better. We want to give the best customer service; treating customers the same way you or I would want to be treated if in the same situation.” JEFF DOYLE PARTS MANAGER AT CARMAC DIESEL

The parts room at Carmac Diesel best customer service possible, and that comes through working as a team and striving to always do better and be better. We want to give the best customer service; treating customers the same way you or I would want to be treated if in the same situation. Scott and Cori are building a great business,

Proud supporter of Carmac Diesel, Congratulations on all your success! #100 – 663 Sumas Way, Abbotsford

Right to Left: Scott Beaudin (Owner), Jeff Doyle (Parts Manager), and Bryan (Service Manager)

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leading by example, and as their company continues to grow, top quality work will continue to be at the heart of everything we do.” Ca rmac is a lso focused on giving back to the community, supporting various community events including Logger’s Sports at the Campbell River Salmon

Festival and providing financial support to youth sports within the community. “Our children grew up here and we have deep roots in this community; a community that has supported us for decades,” says Scott. “We appreciate giving back any way we can.” www.carmacdiesel.com


38

OFF THE COVER

NOVEMBER 2018

Expansive Warehouse, World-Class Supplier Help Graphic Office Stay On Top GRAPHIC OFFICE CONTINUED FROM PAGE 1

Nagy describes an example of a new Steelcase product: “In the office design industry, we’re starting to see an increased use of modular walls, which are notorious for their mediocre acoustics. Steelcase has recently patented a brand new wall system, which is a four inch wall that can go up to STC 53, the level of sound protection you see in most condos.” Steelcase is also one of the industry’s more environmentally conscious manufacturers and is one of only 30 large-scale US manufacturers that uses 100 per cent green power. Graphic Office was started in 1966 by John Varrelman, an interior designer who immigrated from England. The company grew steadily over the next 20 years, and in 1988, started selling systems furniture. Nagy has been working with the Graphic Office since 1980, becoming part owner in 1989, and eventually acquiring full ownership of the business. In 1994, the company opened its Nanaimo branch, and about three years ago, the Victoria branch moved into its new, state-of-theart 32,000 square foot building. “We use a unique storage system, composed of binning systems,” says Nagy. “We use a lift that takes employees up with the box into the system. The warehouse has a 40-foot high ceiling, and this lift goes about 30 feet in the air. Of the 32,000 square feet, about a third is dedicated to prep and logistics so each piece of furniture goes to the site ready to install.” In recent years, the company has been hired for some of the biggest office projects on the Island, including the North Island Hospital project in Comox and Campbell River. “We were up there on a regular basis for at least three months,” says Nagy. “For projects like these, we get called in in the implementation phase, and construction plans are typically already established. “We will design-draw our furniture, so we work with customers to come up with solutions that work for a large number of individuals. Through Steelcase, the drawings we produce become our bill of materials. If we put finishes in, it will come through on the whole quotation and order cycle. We take the info from the drawings into our financial ordering system, then to the factory, then from the factory to us, all the way through to the final invoice.” As the company continues to invest in the Vancouver Island market, Nagy is keeping track of some design trends coming up from California. “The biggest trend we’re seeing, especially in office spaces

The warehouse at Graphic Office Interiors features 40-foot ceilings, and utilizes an innovative storage system to stay organized

“We will design-draw our furniture, so we work with customers to come up with solutions that work for a large number of individuals. Through Steelcase, the drawings we produce become our bill of materials. If we put finishes in, it will come through on the whole quotation and order cycle.” STEVE NAGY OWNER OF GRAPHIC OFFICE

in San Francisco, is a mix between workstations and soft seating with a lounge-like feel and low tables,” says Nagy. “This combination of residential and commercial (‘resi-commercial’) allows employees to take advantage of the mobility afforded by laptops and personal devices. “This helps create more collaborative zones and a team-based agile approach to the workplace. I think we’ll start seeing this trend hit BC more in the next three to four years, and we’re already seeing it implemented in some tech companies, or even at a government level.” www.graphicoffice.com

The expansive Victoria location features a vast showroom, exposing clients to the many design possibilities for their office space

Graphic Office is Vancouver Island’s only Steelcase dealer


39

NOVEMBER 2018

Family-Owned Jowsey’s Furniture Stands the Test of Time Port Alberni Establishment Thrives in Same Location for Over 70 Years

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ORT ALBERNI - Shortly after the Second World War, a family-run furniture store popped up in Port Alberni. Now under the third-generation ow nership of Jennifer Norn, Jowsey’s Furniture & Beds is operating in the same location on 4957 Johnston Road. The company was founded in 1947 by Jack and Aili Jowsey, who called the establishment Jowsey’s Home Varieties and Electric. “They sold everything from furniture to wringer washers to irons after the war,” says Norn. “My grandfather liked working with cameras and any gizmos that came out during that time, so the store always had the latest technology.” After over 30 years of running the company, Jack and Alli passed the business along to Brian and Frances Dodsworth, who ran it for 25 years before it was taken over by Norn and her husband. “We’ve always been in the same location,” says Norn. “We’ve expanded several times, knocking down some walls at one point and adding a second floor in the 1970s.” Since its beginning over 70 years ago, the store has slowly been focussing its product line, and now focuses almost exclusively

“We set everything up. If you need stuff moved we’ll move it, or if something is damaged or dirty, we fix, clean or replace it. One of our slogans is ‘Great prices and amazing service,’ and that’s one of the reasons we stand out in this Jennifer Norn has been running Jowsey’s furniture as a thirdgeneration owner since 1996 on furniture and mattress sales. “When the economy melted down in 2008, we did some soul searching to figure out what made our business unique,” Norn reflects. “I think the main distinguishing factor is that we provide outstanding service.” “We don’t cha rge a lot for delivery, and we help with service after the sale, working with the manufacturer if the furniture is under warranty, or doing what we can to fix it if it’s not under warranty.” At Jowsey’s, furniture delivery is more than just store-to-driveway

low rent and its involvement in the Cantrex Nationwide buying group. Cantrex is a conglomeration of independent businesses like Jowsey’s t h roug hout Nor t h America that helps its businesses purchase with the buying power of a big box store. “We belong to a subgroup of Cantrex called Mattress World, which features Simmons, Serta, and Spring Air brands,” says Norn. “Mattress World w i l l choose a brand for its special of the month, and we sell it.”

The store features a variety of major brands, including LaZ-Boy and Ashley Furniture, wh ich a re of ten sold b elow suggested retail price thanks to the establishment’s low rent. “Our focus on outstanding service is helped by the fact that none of us work on commission,” Norn concludes. “ We’re not ter r itor i a l, a nd that helps us work together to ensure the customer’s needs are met.” www.jowseys.ca

business.” JENNIFER NORN, OWNER OF JOWSEY’S FURNITURE

service. “ We s e t e v e r y t h i n g u p,” she conti nues. “I f you need stuff moved we’ll move it, or if something is damaged or dirty, we fix, clean or replace it. One of our slogans is ‘Great prices and amazing service,’ and that’s one of the reasons we stand out in this business.” Jowsey’s is able to keep its prices down thanks to the company’s

Proud partner of Jowsey’s Furniture & Mattresses, Congratulations on all your success!

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BUILDING LINKS

40

NOVEMBER 2018

BUILDING LINKS CELEBRATES 25 YEARS AND NEW OWNERSHIP

BUILDING LINKS CLARICE COTY

T

he North Island’s weekly construction industry newsletter marked this occasion with a

celebration on October 11 and the introduction of a new publisher. Building Links recently announced that founding publisher Clarice Coty has sold the business to Pam Beynonbrown, who will continue the tradition of publishing Building Links on a weekly basis. Coty, who started the business from her home in 1993, originally photocopying and stapling pages and delivering weekly copies, has over the years, built Building Links into an online hub of information that businesses, organizations and municipalities have come to rely on. The www.buildinglinks.ca website was launched in 2005 to distribute

Building Links electronically. “Subscribers depend on Building Links,” Beynonbrown said. “Our publication has been recognized as a valued resource to receive weekly up-to-date news for new construction and real estate projects for the Comox Valley, Campbell River, North Island, Port Alberni, the West Coast and Powell River. “We will continue to research and publish up-to-date information and insights that will assist our clients to make connections, stay informed and be apprised of industry news,” continues Beynonbrown. Coty has worked with the new owner over several months to ensure

a successful transition, and will continue to stay on as part of the research and editing team. “I am confident that Pam will carry the Building Links banner successfully into the future and offer new services as the business continues to grow and thrive,” Coty said to the group gathered to celebrate the 25th anniversary.” “It has been my privilege to have you as clients, to dig up the scoops informing you of the latest construction news over the past 25 years,” Coty recently told her readers. With more than 1,275 editions published, Building Links will continue

to build on its long history of serving the North Island’s construction industry, reporting on upcoming projects, industry trends and statistics, new tenders and building permits. Coty and Beynonbrown would like to thank their team of researchers, tech and admin staff as well as the planning staff in the municipal offices and to the architects, consultants, developers, realtors, engineers and others, who take the time to share information on the projects Building Links reports on. Clarice Coty is the founder of Building Links.

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WHO IS SUING WHOM

NOVEMBER 2018

WHO IS SUING WHOM

1626 Garnet Rd, Victoria, BC PLAINTIFF Campbell Construction Ltd CLAIM $373,705

Abbotsford, BC PLAINTIFF Raappana, Jennifer CLAIM $ 17,630

The contents of Who’s Suing Whom is provided by a thirdparty resource and is accurate according to public court documents. Some of these cases may have been resolved by publication date.

DEFENDANT Axe Music Inc 12116 67th St, Edmonton, AB PLAINTIFF Morin, Matthew CLAIM $ 34,579

DEFENDANT 1090580 BC Ltd PO Box 636, Errington, BC PLAINTIFF Oliwa, Mike CLAIM $34,854

DEFENDANT Black Sky Developers 600-303 Twin Dolphin Dr, Redwood City, CA CBRE Limited CLAIM $9,545

DEFENDANT Gorge Ous Coffee Ltd 303-1111 Blanshard St, Victoria, BC PLAINTIFF Knight Leasing Ltd CLAIM $ 9,403

DEFENDANT 1123983 BC Limited 1500 Fairfield Rd, Victoria, BC PLAINTIFF First Island Financial Services Ltd CLAIM $711,642

DEFENDANT Earthwise Contracting Ltd 7038 Grant Rd, Sooke, BC PLAINTIFF Catteral, Cathy CLAIM $ 5,254

DEFENDANT Abstract Construction Inc 1626 Garnet Rd, Victoria, BC Campbell Construction Ltd CLAIM $373,705 DEFENDANT Abstract Ventures Inc

DEFENDANT Fluent Home Ltd 7319 104th St NW, Edmonton, AB PLAINTIFF Nagra Holdings Ltd CLAIM $ 15,820 DEFENDANT Fraser Valley Plumbing Services Inc 308-33695 South Fraser Way,

DEFENDANT House Of Boateng Food Inc 406 Gamble Pl, Colwood, BC PLAINTIFF Charles, Maxwell Owusu CLAIM $ 33,026 DEFENDANT Kgl Freight Services Ltd 326-198 East Island Hwy, Parksville, BC PLAINTIFF Walker, Cliff CLAIM $ 11,580 DEFENDANT Made To Last Custom Homes Ltd 2-177 4th St, Duncan, BC PLAINTIFF Krikke, Thomas Gary CLAIM $ 9,360

DEFENDANT Malaspina Enterprises Ltd 4766 Michigan Ave, Powell River, BC PLAINTIFF Inlet Navigation (1985) Ltd CLAIM $ 27,086 DEFENDANT Mr Rooter Plumbing Of Victoria BC 308-33695 South Fraser Way, Abbotsford, BC PLAINTIFF Raappana, Jennifer CLAIM $ 17,630 DEFENDANT Potlatch Properties Ltd 30 Front St, Nanaimo, BC PLAINTIFF Telus Communications Inc CLAIM $ 12,268 DEFENDANT PW Mccallum Roofing 2116 Renfrew Rd, Shawnigan Lake, BC PLAINTIFF Oliwa, Mike CLAIM $ 29,512 DEFENDANT Rayn Properties Ltd 1500 Fairfield Rd, Victoria, BC First Island Financial Services Ltd

CLAIM $ 711,642 DEFENDANT Rona Inc 1800-510 West Georgia St, Vancouver, BC PLAINTIFF Brown, Peter Thomas CLAIM $ 34,806 DEFENDANT Southpaw Standards Ltd 2510b Kenworth Rd, Nanaimo, BC PLAINTIFF Zwynenburg, Derek CLAIM $ 35,176 DEFENDANT Toronto Dominion Bank 2900-550 Burrard St, Vancouver, BC PLAINTIFF Fandsen, John CLAIM $ 30,756 DEFENDANT Vietnam Canada Trading Ltd 6460 Fraser St, Vancouver, BC PLAINTIFF Admiralty Leasing Inc CLAIM $ 35,177 DEFENDANT Wawanesa Mutual Insurance Company

41 400-1985 West Broadway, Vancouver, BC PLAINTIFF Mccormick, Jennifer Eileen CLAIM $ 18,709 DEFENDANT Western Turf Farms Ltd 201-20353 64th Ave, Langley, BC PLAINTIFF Crown Isle Homes Ltd CLAIM $ 6,307 DEFENDANT WOM Mastercraft Construction Ltd 201-19 Dallas Rd, Victoria, BC PLAINTIFF RCS CLAIM $ 23,844


MOVERS AND SHAKERS

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NOVEMBER 2018

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New bu si nesses h ave opened their doors in the renewed North Island Mall including Evolve Fitness, Port Hardy Dental Center (Blue Ocean), and Northern Bliss Day Spa. Other stores m ay be open i ng in the mall in the future i n c lu d i n g h e a lt h fo o d store – Evolve Nutrition and Stellar Jay Organics (pending a licensing approval from council).

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Campbell R iver’s own Dr. Diane Morrison is the new managing director for Marine Harvest Canada West – replacing the outgoing Vincent Erenst. Dr. Morrison is a Doctor of Veterinary Medicine and has 25 years of experience in salmon production. She has led Marine Harvest Canada’s Fish Health and Food Safety Department in Western Canada for 18 years. Dogwood Pet Mart celebrated their 35 th anniversary at their location on the corner of 2 nd Avenue and Dogwood. Kayla Greenwood, Justin Lynn and Ryan Howich are tied for top salespeople of the month for Bill Howich

C h r ysler RV a n d M a rine at 2777 North Island Highway. Ashcroft & Associates is now open for business at 9 – 1105 Ironwood Street. Willow Point Supportive Living Society, which provides affordable housing to low-income seniors, celebrated its 25 th anniversary at #100 – 142 Larwood Road. T he City of Campbell R iver h a s received t he Distinguished Business Presentation Award for the third year in a row by the Government Financial Officers Association of the United States and Canada. The award represents the h ig hest form of recognition in governmental budgeting and recognizes exemplary practices in the City’s 2018-27 Financial Plan. T h e Ca mpb el l R iver G olf and Country Club has opened the Velocity Lounge and Driving Range at the head of the course’s practice range. The facility is a semi-private a rea that opens to the driving range complete with touch screen televisions, lounge-style couches, bar/restaurant service and much more. The Campbell River Golf and Country Club is at 700 Petersen Road. The board of education for Campbell River School District 72 has appointed Jeremy Morrow as the district’s new superintendent of schools and chief executive officer. Morrow holds a Doctor in Education from Simon Fraser University, a Master of A rts in Education from the University of Phoenix, and has 13 years of experience in K-12 education

leadership roles.

COMOX VALLEY Cu mb erla nd Brew i ng Co. has completed renovations on their space at 2732 Dunsmuir Avenue. The renovations include doubled production capacity, added bar and table space, more seating inside and four new washrooms. The brewery can now have 29 persons inside and 65 on t he pat io, br i n g i n g their total number of allowable occupants to 94. Heaters have a lso been installed on the already covered patio wh ich is open year-round. Seaside Salon (formerly Anna’s) celebrates their grand opening on November 3 rd at 1836 Comox Avenue in Comox. Building Links’ founding publisher Clarice Coty recently sold her business to Pam Beynonbrown and is celebrating its 25 th anniversary. Building Links is a publication that prov ides up-to-date news for new construction and real estate projects for the Comox Valley, Campbell River, North Island, Port Alberni, West Coast and Powell River. VisionWorks Optometry welcomes Dr. Shannon Moore to thei r tea m of professionals at #4 - 2225 Guthrie Road in Comox. RE/MAX Ocean Pacific Realty welcomes Francine Legault to their team of real estate professionals at 282 Anderton Road in Comox. A llen & Company h a s SEE MOVER’S AND SHAKERS   |  PAGE 43


MOVERS AND SHAKERS

NOVEMBER 2018

MOVERS AND SHAKERS CONTINUED FROM PAGE 42

added Kaan D. Alkin as a new associate to their firm at 480 – 10th Street in Courtenay. Two Comox Valley wineries were recognized at the 38th annual Fall Okanagan Wine Festival. 40 Knots Vineyard and Estate Winery won two gold medals for their 2017 Pinot Gris and 2014 Soleil Rose. They also received two silver medals for their 2017 Ziggy and 2017 Rose. Beau for t Vi neya rd & Estate Winery received a gold for their 2016 CA Beautage and a silver for their 2017 Rose. Today ‘N’ Tomorrow Learning

Society (TNTLS) appoints Rebecca K leinman as ch i ld ca re manager for both Teddies ‘N’ Toddlers Child Care Centre and Little Friends Early Learning Centre. Rebecca has 18 years of experience caring for children and 11 years teaching early childhood education in a childcare setting. Jeanie’s Vitamin Centre marks its 20 th anniversary in the Comox Centre Mall. Rick Sharples is the top salesperson of the month for Sunwest RV Centre at 2800 Cliffe Avenue in Courtenay. Larry Epp is the top sa lesperson of the month for Arbutus

like no other.

RV in Courtenay at 2603 Sackville Road. T he K i ng f isher O cea nside Resort & Spa received the Innovator of the Year Award at the recently held Tourism Vancouver Island Gala Dinner and Awards Ceremony held in Port Hardy. The Kingfisher was recognized for the extensive renovations done at the resort. The awards were part of the TVI 55th Annual Conference. The Strathcona Symphony Orchestra appoints Helena Jung as their new music director/ conductor. Jung brings more than 25 years of experience as a musician and teacher to the role and replaces Jim Montgomery,

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who held the dual positions for the previous three years before retiring. Brian McLean Chevrolet Buick GMC announces that Ryan Sykes is their top sales person of the month for their dealership at 2145 Cliffe Avenue in Courtenay.

PORT ALBERNI Enex Fuels congratulates their staff accountant Elisa Haase on successfully completing her CPA designation. Enex Fuels has locations up and down the island and their Alberni office is at 5035 Dunbar Street.

Elisa Haase Earth Land & Sea has moved to 4716 Tebo Avenue. The Alberni District Co-op has been serving the Alberni Valley SEE MOVER’S AND SHAKERS   |  PAGE 44


44 MOVERS AND SHAKERS CONTINUED FROM PAGE 43

for 90 years now. Started in 1928 as a feed store on Johnston Road, the company now has three locations in the area including a hardware store on Gertrude Street. Bear Lind and April McCarthy

MOVERS AND SHAKERS have opened an art co-op called the Bear Arts Club in a building on Bute Street. The duo’s landlord has given them two months of free rent for the club after which they are hoping memberships will sustain the studio. The club is designed to be a space for people to be creative in art, drama and music. B o s l e y’s P e t Fo o d P l u s i s

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adding to their space at Pacific Rim Centre by expanding into the vacant space behind their store. The expansion will allow Bosley’s to carry more products and offer more services to pets and pet owners. Amanda Walton has started Home to Stay Home Care, which provides non-medical home care services. Walton provides a variety of at-home services including bathing, meal preparation, personal care, appointments, shopping, exercise, after-surgery care and companionship.

NOVEMBER 2018

to replace their aging Visitor Cent re on t he Paci f ic R i m Highway by Cox Bay. The new building is designed to have a w e l c o m i n g i n te r i o r w i t h 3,600-squ a re-feet of space containing artistic displays, a community meeting room, energy efficient public washrooms and Tourism Tofino’s marketing offices.

The Flooring Depot is in their 20th year of business at 2936 3 rd Avenue.

Uc l u e l e t F i re C h i e f Te d Eef tink i s ret i r i ng f rom h i s post on December 30 th after 9 years in the role and 25 years of service. The Ucluelet Volunteer Fire Brigade is losing Juliet Van Vliet and Robert Costley this year and are on the lookout for new recruits.

P o r t A l b e r n i ’s R i c k D o r e earned the distinction of working at Alberni Pacific Division (APD) sawmill for 50 years. Over the years Dore has worked under compa n ies i nclud i ng M&B, Weyerhaeuser, Cascadia and now Western Forest Products.

Castaways, a thrift store off Campbell Street and Fourth in Tofino, closed down after 14 years in business on October 28th . Shop owners John Wynne and Lise Saurette are looking for a new space to open up a shop in the area.

Alberni-Clayoquot SPCA has appointed Kaley Pugh as their new branch manager, replacing Irene Towell who ret i red i n August.

Ucluelet’s Floathouse Patio and Grill held their last open day of the season on October 20th and donated all of the day’s $3,365 wor th of sa les to the loca l foodba n k. T he restaurant also donated the proceeds from this year’s opening day to the food bank and plans to do so again when the restaurant opens in March.

TOFINOUCLUELET Tourism Tofino is preparing

Adam Walker

PARKSVILLEQUALICUM BEACH X2 Lewis Modern Home Renovations of Qualicum Beach in Home Improvement and M&N Mattress Shop Ltd. of Parksville in Sales and Service were announced as 2018 Torch Award Winners at the Better Business Bureau of Vancouver Island’s gala November 2 at the Union Club in Victoria. The two companies were the only firms north of Victoria to earn Torch Awards this year. E.B. Horsman & Son, an independently owned electrical distributor with locations across Western Canada, has opened their doors for business in Parksville at 1023 Herring Gull Way. SEE MOVER’S AND SHAKERS   |  PAGE 45


MOVERS AND SHAKERS

NOVEMBER 2018

MOVERS AND SHAKERS CONTINUED FROM PAGE 44

Adam Walker of CGM Marketing has been elected a city councilor in Qualicum Beach. The Quality Foods Oceanside Generals appointed former Genera ls player Dan Lemmon as their new head coach. Lemmon replaces Jesse Hammill, who has been released from his coaching and managerial commitments. Lemmon has experience including coaching the VIJHL both in Oceanside and Nanaimo. He was named VIJHL coach of the year in 2016-17 while with the Nanaimo Buccaneers. The Old School House Arts Centre is preparing a 30th anniversary celebration in January that will see the organization’s members showcase the work they are most proud of. The organization is accepting submissions from their more than 550 members to be displayed at the celebration until December 15th. Members can each submit one piece only, but it can be anything from a sculpture, textile, painting, photo, drawing, etc. T he Mea ls on W heels program offered through the SOS Community Service Centre in Parksville celebrated their 45 th anniversary. The services centre is at 245 West Hirst Avenue. After 24 years in business, Errington’s Buckshot Books closed dow n for busi ness on October 20 th . Owner Carol Purkis is closing the shop in order to semi-retire.

NANAIMO Brother and sister team Durlabh and Harsangeet Sandhu have entered into a partnership with the Dragon’s Den for their app Affichi. The app lets users take a photo with a smart phone and print posters into slices on a home printer to create large image posters. The two made a deal with Lane Merrifield who offered $125,000 for 25 per cent of the company; $25,000 more than they had originally asked. Affichi is free, though the company sells additional accessories and offers special printing papers with adhesive strips that allow users to stick the papers together to create poster-sized images. B. Clotheswise Uniforms has celebrated their 3rd year at 3-321 Wesley Street. They are Central Islands shop for nursing/medical scrubs & chef wear. They are open Tuesday to Saturday. RE/MAX of Nanaimo welcomes Sue Roe to their team of real estate professionals at 1-5140 Metral Drive. Ay Lelum - The Good House

of Design received the Business of the Year award in the on-to-two-person category at the British Columbia Achievement Foundation’s 2018 BC Indigenous Business Awards. The business is a second-generation family owned and operated clothing, garment and apparel maker that features Coast Salish inspired designs. Uptown Jewellery has opened for business in Nanaimo North Town Centre. Jane Fisher is the top salesperson of the month for Nanaimo Toyota at 2555 Bowen Road. The BC Liquor and Cannabis Regulation bra nch has f i led applications with the City of Nanaimo to open BC Cannabis Stores at Country Club Centre and Woodgrove Crossing shopping plaza on Mary Ellen Drive. The Country Club store if approved, would be a new standalone building on the Island Highway side of the parking lot next to Urban Barn. The Woodgrove Crossing site is an existing building which would be repurposed as a cannabis store and would likely open before the Country Club site. Sean Krepps is the top salesperson of the month for Harbourview Volkswagen at 4921 Wellington Road.

LADYSMITHCHEMAINUS

is making its best effort to minimize the plant’s downtime and replenish their inventories as soon as possible.

COWICHAN VALLEY

T he new Vancouver Island Reg iona l Libra r y bra nch i n Chemainus was tendered for bids from contractors until October 31st. VIRL is reviewing the submissions and will select a firm to begin the project which is supposed to have shovels in the ground this year. The project experienced a longer-than-expected design phase and has seen its total budget increase from $2.25-million to of $2.7-million as a result of increases in various construction costs.

Duncan’s own Kate Lindsay, t he v ice-president for su stainability and environmental partnerships with the Forest Products Association of Canada, has been included in Canadian Forest Magazine’s Top 10 under 40. Lindsay was selected for her commitment to excellence and for the leadership role she has in supporting and protecting the forest.

awards at the 2018 Construction Achievements and Renovations of Excellence Awards of Vancouver Island recently held in Victoria. The company alongside their development partner Terry Johal Developments took home top honors in the Best Condominium Unit, Best Contemporary Kitchen 175-275 square foot, and Best Contemporary Kitchen 276-325 square feet categories. The awards are hosted by the Victoria Residential Builders Association and highlight the finest work in West Coast homes and the craftsmen behind them.

South Shore Cabinetry was the recipient of a number of

SEE MOVER’S AND SHAKERS   |  PAGE 46

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Ladysmith Maritime Society Community Marina welcomes Richard Wiefelspuett to their organization as the new executive director. Richard has over 20 years of domestic and international experience in the marine industry and took over the role on November 1st.

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Oyster Bay Liquor Store opened their doors for business at 101 – 12590 TransCanada Highway. Rollins Machinery celebrated an open house on November 1st for their new service, parts and sales department in Chemainus at 3306 Smiley Road. The company is a multi-industry dealer that sells equipment to municipalities, farms, golf courses and private contractors in markets that include sports turf, sewer and maintenance, roadside maintenance and refuse. 49th Parallel Grocery Store in Chemainus celebrated their 5 th anniversary recently at 3055 Oak Street. We s t e r n Fo r e s t P r o d u c t s Ladysmith sawmill division has closed until further notice due to a log shortage resulting from this summer’s wildfires. A ll other WFP facilities are operating as usual and the company

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We s tc o a s t te e s h a s opened a new storefront at 277 Government Street. T he shop wh ich pr i nts and designs all of their own t-shirts in the Cowichan Valley also has a location at Unit #5 – 6961 TransCanada Highway, j u s t nor t h of D u nc a n , and another in Campbell R iver. T he new shop is designed to be easier for customers to find and offer more parking. The Chesterfield Sports Society, a non-profit organization that oversees t he Cow ich a n Sp or tsplex has entered i nto a partnership with PacificSport Vancouver Island to take over day-to-day operations of the Cowich a n Sp or tsplex. T he partnership between the two orga n izations w i l l allow the Sportsplex to i mprove thei r con nection with the Cowichan Va l ley com mu n ity a nd expand the available onsite activities. PacificSport VI General Manager Drew Cooper, w i l l fill the role of executive director for the Cowichan Sportsplex operations. PacificSport VI is a notfor-profit regional sport

NOVEMBER 2018

and athletic organization that has branches and affiliates throughout the province. BC Ale Trail launched two d i f ferent Va ncouver Island Trails featuring 14 craft breweries, a few of wh ich ha i l from t h e C o w i c h a n Va l l e y. T he f i rst t ra i l w i l l see v isitors cr u ise eig ht breweries from farm to sea in the Cowichan Valley to Nanaimo. Among t h e b re w e r i e s a re Re d A r row Brew i ng, Sm a l l Block Brewing, Riot Brewing and Craig Street Brew Pub. BC A le T rail promotes over 150 craft breweries a nd featu res 17 different regional Ale T ra i l s i n t he prov i nc e wh ich prov ide resou rces including itineraries, maps and videos for touri sts to pl a n t hei r cra f t beer excursions. R e n e e D e s a u te l s h a s been in business in Duncan for over 15 years, and recently moved Peacock Copy and Restoration from Canada Avenue to 231 Jubilee Street. A grand opening celebration was held for the new Dr.’s Jagdis K. and Sarjit K. Siddoo Park, an

Kate Lindsay 8.4-hectare riverside park in the Cowichan Valley that was donated to the Cowichan Valley Regional District by TimberWest a nd the Siddoo fa m i ly. T i m b e r We s t r e c e n t l y a n nou nced t hei r commitment to pursue carbon neutrality over the next 10 years and has already made steps to do so. The company has begun by measuring their total carbon footprint, going beyond operations to include supply chain energy use, forest carbon and its d i s t r i b ut ion n e t work . This method of measuring end-to-end environmental impact is believed to be the first of its kind for a forest company.

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OPINION

NOVEMBER 2018

A division of Invest Northwest Publishing Ltd. Vancouver Island Office 25 Cavan Street,Nanaimo, BC V9R 2T9 Toll free: 1.866.758.2684  Fax: 1.778.441.3373 Email: info@businessexaminer.ca Website: www.businessexaminer.ca

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PUBLISHER/EDITOR |  Lise MacDonald SALES |  John MacDonald – john@businessexaminer.ca, Josh Higgins – josh@businessexaminer.ca, Alex Muir – Alex@businessexaminer.ca WRITERS |  Julia MacDonald, Beth Hendry-Yim, David Holmes, Kristin Van Vloten, Val Lennox, Robert MacDonald WEBSITE |  John MacDonald – john@businessexaminer.ca

AMERICAN SYSTEM NOT THE ONLY ANSWER TO CANADIAN HEALTH CARE PROBLEMS

MARK MACDONLD

“W

e don’t want American health care.” That refrain is repeated ad infinitum whenever a suggestion is made to tweak – and improve – Canada’s universal health care. Clearly, the system is creaking and groaning and in dire need of efficiency improvements, as wait times continue to increase and expenditures climb. We have been warned that within a few short years, if health care spending isn’t reined in, it could technically consume 100 per cent of the provincial finance budget. Change is necessary, like most every where. But nowhere is change more vehemently opposed than health care. It’s not

just the powerful unions that thunder against adjustments, it is the average Canadian who cries out to maintain the status quo. Somehow Canadians believe our health care is free. It is not. Far from it. The Fraser Institute released studies earlier this year that the average Canadian pays over $6,000 a year for health care, and the average family of four over $13,000 per annum. That’s over $1,100 a month. We don’t realize the pain in the pocketbook because it’s hidden in our taxes. Emergency care in Canada is arguably without peer. If you need urgent medical attention, you’re ushered in and taken care of in exemplary fashion. Flash your health care card and you’re in. It’s everything else that needs to be adjusted. Wait times for selective, non-threatening surgeries are obscene, causing some people to head elsewhere – including the United States – for procedures that give them back their quality of life. Want a family doctor? Take a number and wait in line. The blame for the scarcity of doctors can be partly laid at the

feet of the College of Physicians and Surgeons for crimping the pipeline and making it so difficult for doctors in other countries to gain accreditation here. I have a nephew who is in his early 20’s who is already a doctor and practicing in England after taking his medical education in the U.K., which allowed him to skip the undergraduate degree process required in the process to be licensed in Canada. Need to jump the queue? Forget it. This is Canada, after all. If you can somehow stand the pain, wait your turn. Even if you have the wherewithal to pay for quicker, pain relieving measures. Still, it’s almost impossible to start an intelligent conversation regarding fixing Canada’s obvious health care crisis because those determined to keep the status quo quickly run up the red flag: “We don’t want American health care!” As if that’s the only alternative, and it’s not. There are, in fact, 27 other countries in the world that offer some form of universal health care, and many of those vastly outperform our Canadian system.

Out of those 27 nations, Canada spends the 11th most on health care as a percentage of GDP. We have the 4th least amount of physicians, and are 8th in terms of MRI units per million. In terms of hospital activity per hundred thousand, Canada is dead last. We have the worst wait times in the emergency department of all of them. W h i le the Fraser I nstitute points out that the Canadian system is financially unsustainable, clearly the answer is not simply putting more money in the system. The point is, there are other countries that spend similarly but have much faster treatment times. Australia, for example, is doing a better job and spending less than Canada. Take Holland, for example. Germany. Switzerland. New Zealand. They all have universal health care systems that perform much better than Canada’s. Canadian health care could receive a much-needed shot in the arm if it were ever subjected to a competitive environment. That’s why when Westbank First Nation in West Kelowna floated

their idea for building a health care facility on their territory in a partnership with renowned Johns Hopkins University held such intrigue. Because it would be on First Nations land, it technically could circumvent the Canadian Health Act. While providing economic stimulus and employment for the Nation, it would also offer an alternative to the Canadian system. Waiting in line for a knee replacement? Go there, instead of to Arizona, or. . . The competition would undoubtedly snap those running our public system to attention, as they would surely recognize their need to change and keep up. Westbank hasn’t established their centre yet, but other First Nations are now talking about the possibilities their own system would mean from not just a health perspective, but financially. Yes, there are alternatives to our clunky, costly Canadian health care system if we really want to look, and stop using the perception of the U.S. system as the bogeyman to scare Canadians away from the precipice of necessary change.

RUNAWAY TRAINS OF DEFICITS AND DEMOGRAPHICS PUT ECONOMY IN PERIL Growing Federal Deficits And Aging Population Put Extraordinary Pressure On Canada’s Growth Potential BY JASON CLEMENS, MILAGROS PALACIOS AND JAKE FUSS THE FRASER INSTITUTE

T

wo fiscal freight trains are hurtling towards the finances of the federal government, threatening the country’s economic well-being and thus the economic prospects of average Canadians. One of these freight trains deficits - was purposeful. The other - demographics - has been known for decades with little action. The consequences of both will a ffect Ca nad ia ns across the country. As has been well-documented, the Liberal Party ran on a platform of purposefully spending more than it planned to collect in revenues for three years from 2016-17 to 2018-19, before

returning to budget balance. The intent was to spend more to improve the economy. After winning the fall election in 2015, the new government immediately increased program spending before the fiscal year even ended. The former Conservative government originally budgeted to spend $263.2 billion in 2015-16, but spending actually reached $270.9 billion due largely

to changes introduced after the Liberal election win. The spring 2016 budget, the first of the new government, showed a deficit in 2015-16 rather than a small surplus (as originally planned), along with projected deficits for the next five years that cumulatively totalled more than $110 billion. In addition, that budget showed no path or goal for returning to a balanced budget. The federal government’s latest annual report pegged last year’s deficit at $19 billion. The 2018 budget, like its predecessors, has no plan to return to a balanced budget, and indeed the most recent long-term projection from the federal Department of Finance (released in December 2017) doesn’t show the federal government returning to a balanced budget until 2045. The freight train of this fiscal policy is that the federal govern ment is ru n n i ng deficits purposefully during a time of economic expansion, albeit weak expansion. When the inevitable recession arrives, revenues will decline and certain spending such as Employment Insurance will automatically increase as the economy slows.

A recent analysis examined past recessions and concluded that the annual deficit from a recession, depending on how severe and how the government responds, could easily increase from the current level of $19 billion to almost $50 billion. (A deep recession like 2008, coupled with similar government responses, would bring the annual deficit to $120.5 billion.) The second freight train relates to changing demographics. We’re at the front end of a demographic shift that industrialized countries haven’t experienced before. More of our citizens will retire, drawing on government resources, while less of a share of the population will work to provide the resources for those programs and transfers. A plethora of reports, including by noted McGill economist Christopher Ragan, the Department of Finance, the Parliamentary Budget Office and our own work, all indicate that the aging of the population will lead to a structural imbalance between spending and revenues. Our estimate based on what we know today about the future, including a likely slowdown in revenues and increased

spending on transfers to seniors and health care, indicates that the deficit in 2045 will reach $107 billion in 2016 dollars due to demographics. These two freight trains combine to pose significant fiscal risks for the federal government and thus on our economy and well-being. But these results are not unavoidable. The sound policies of what we coined the Chretien Consensus, which dominated Canada throughout the mid-1990s to the mid-2000s, are exactly the prescription. Balanced budgets and declining debts based on reduced but better focused spending, coupled with incentive-based tax relief, served Canada well. And it’s telling that such policies were the standard for parties of all political stripes across the country. Introducing such policies now would position the country to withstand the fiscal strains of demographics and halt the deficit freight train before it collides into the Canadian economy with full force. Jason Clemens, Jake Fuss and Milagros Palacios are economists with the Fraser Institute

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