2015 WILLISTON BASIN CANPOTEX & THE BIG BUSINESS PETROLEUM CONFERENCE SASKATCHEWAN POTASH OF HOSTING EVENTS
SPRING 2015 VOLUME 4 ISSUE 1 Saskatchewan
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am Prairie proud! VOLUME 4 ISSUE 1 And I am especially Editors Erin Legg [email protected] proud to showcase Sherry Lee [email protected] a bunnyhug sent to Art Direction Ime by Cole Thorpe, founder Lisa Redden, Senior of Prairie Proud. Please find Design their great story inside about Candace Haiko bringing pride to this province Ghislaine Moffitt and charitably giving back at Staff Writers the same time. Melanie Furlong Tobie Hainstock In every edition we print, I am Tonya Lambert constantly impressed with the people, stories and motivation Cover Photography Ziqi Zhang Photography in this province. Business & Industry is pleased to showcase Photography Calvin Fehr, Cameco, Canpotex, Northern Strands in this spring Canadian Light Source, Evraz Place, edition. Owner Garry Clarke Prairie Proud, Regina Hotel Association, tells the inspiring story of this Saskatchewan Research Council, Tourism company’s rise. It is fascinating Saskatoon, Ziqi Zhang Photography to get a personal and intimate Contributing Writers Blythe Martin, Brook Thalgott, Bruce Harrison, view into one of Saskatchewan’s Canadian Light Source, Byron & Shannon Briske, most important sectors: mining. Gwynne Dyer, Jeanne Martinson, Paul Sinkewicz, We often forget the cultural Phil Symchych, Saskatchewan Research and historic significance of Council, Saskatchewan WCB this sector to the province, its Advertising Consultants long established roots and the Brooke Watson [email protected] Crystal Reich [email protected] impact the people involved have Jason Booker [email protected] made on Saskatchewan. Paul Huber [email protected] Sandy Zielinski [email protected] Be sure to read about the Williston Basin Petroleum Conference happening in Associate Publisher Regina at the end of April. Business & Industry is pleased to be an official media Paul Huber partner at the conference and we are excited to see all the great companies and [email protected] 306.551.6632 speakers being showcased. Despite the current downturn in oil, this conference Distribution & Subscriptions is a testament to the many companies willing to weather the storm and reap the [email protected] rewards this sector has to offer when times eventually improve. Business & Industry Sask is published four times a year. We reserve the right to edit any materials chosen for publication As always, please visit our website, www.businessandindustry.ca, to view all our including photographs. We reserve the right to reject or accept any article, photograph, image or advertisement. All contents online content. Feel free to send any and all feedback about the magazine and our of Business & Industry Sask is copyrighted 2015 with all rights content, and be sure to follow us on Facebook and Twitter. reserved, except for original articles submitted to Business & Industry Sask, where copyright resides with the author. No other part of this publication may be reproduced without the written permission of Business & Industry Sask or its writers. The name Business & Industry Sask, its logo and material Paul Huber cannot be reproduced without the written consent of the publishers. The views and opinions expressed in the expert advice columns herein are those of the authors and do not necessarily represent the views and opinions of Business & Industry Sask or the companies it represents. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
1 BUSINESSREGINA 4 BUSINESS AND INDUSTRY SASKATCHEWAN Workers_Comp.Cameco.qxp_Layout 1 2015-03-20 10:41 AM Page 1
www.worksafesask.ca www.safesask.com I BELIEVE IN MISSION: ZERO
Cameco President and CEO Tim Gitzel with an employee at Cigar Lake.
We’ve worked very hard over the past few years at Cameco to work safer. That’s what a strong safety culture does. We really want to live by our motto that no job is so important that we can’t take the time to do it safely. Tim Gitzel President and CEO “ Cameco Corporation
Join the Mission: Zero movement by signing the Saskatchewan Health & Safety Leadership Charter. Call 306.352.3810 or email [email protected] for more information. ” CONTENTS
SHOWCASING SASKATCHEWAN33 8 Safety Taking Safety Home 10 Management/HR Strategies for Leading Gen Y Employees 16 Saskatchewan Industry Canpotex, Taking Saskatchewan Potash to the World; Gwynne Dyer on Cheap Oil; Keystone XL Pipeline Update NORTHERN 28 Cover Story 45 Years & 5 Divisions Strong, Northern STRANDS Strands is Growing with Saskatchewan 45 YEARS & 33 Regional Economics The Big Business of Bringing Events to the Province 5 DIVISIONS 40 Marketing 2015: Year of the Mobile Site STRONG
42 Science & Technology Biomedicine, Worth its Weight in Nanogold; The Rise & Triumph of the Smartphone
48 Environment SRC’s Pipe Flow Technology Centre™ 28 Expansion Project 60 Philanthropy 62 Sask. Life 50 Legal Prairie Proud Gives Back Saskatchewan: Weather Delays: Using Force Majeure Live, Work and Play Clauses in Contracts 52 Finance Data Mining to Accelerate Mid-Market Business Growth
6 BUSINESS AND INDUSTRY SASKATCHEWAN Upcoming Conventions, EVENTTrade Shows, Workshops and Events CALENDAR APRIL - JUNE 2015
▶ APRIL 28 30 2015 Williston Basin Petroleum Conference Evraz Place, Regina
▶ MAY 7 8 Women Entrepreneurs of Saskatchewan – Celebrating 20 Years Business Conference & AGM MAY 7 8 TCU Place, Saskatoon
▶ MAY 14 SABEX Awards Gala 2015 Prairieland Park Trade & Convention Centre, Saskatoon
▶ MAY 26 Business Luncheon – Let’s Talk Exports 2015 STEP Saskatchewan Trade & Export Partnership Delta Hotel, Regina
▶ MAY 26 27 JUNE 3 4 Saskatchewan Forum 2015 Delta Bessborough, Saskatoon
▶ JUNE 3 4 Saskatchewan Oil and Gas Show Weyburn Exhibition Grounds, Weyburn
▶ JUNE 17 19 Canada’s Farm Progress Show Evraz Place, Regina
JUNE 17 19
BUSINESS AND INDUSTRY SASKATCHEWAN 7 [ SAFETY ]
Taking SAFETY HOME BY SASKATCHEWAN WORKERS’ COMPENSATION BOARD (WCB) PHOTOS COURTESY CAMECO It’s the call every supervisor dreads: “I’ve fallen hil Germain, vice president of Prevention and Employer Services at the Saskatchewan off a ladder at home. I’m not sure how long I’ll Workers’ Compensation Board says, “An be off work.” For the person hurt, in addition to injury affects you everywhere. An injury atP work affects you at home and vice versa. Achieving pain and potential disability, the weeks off work Mission: Zero is about zero injuries whether you can mean financial loss and inconvenience to are at home, on the highway, at work, at the cabin or on the boat.” family and friends. For the employer, it means scrambling to fill shifts, lost productivity and He explains that building a safety culture at work and investing in safety training is an investment into a whole possibly hiring a temporary replacement. community. “At work there is someone watching to
8 BUSINESS AND INDUSTRY SASKATCHEWAN make sure you wear your PPE because mine sites recognize employees who meet Over half the people surveyed reported of a policy. At home you have to do it criteria as safety leaders at an annual sharing their first aid training, fire safety on your own. It has to be your decision. award ceremony for safe workers. and safe equipment operation training Watching for hazards and dealing with with other people. They also encouraged them effectively has to become a habit.” In the survey, the Cameco employees other people to wear PPE and using identified the safety huddles as one proper equipment. A recent survey by Cameco at two of the most valuable ways to maintain the northern Saskatchewan mine sites shows safety culture. Two-thirds of respondents said they are workers are taking safety habits home with using their safety skills at home for the them, using their training to volunteer Training Makes a Difference benefit of their communities, in roles in their communities and talking about such as volunteer first responders. safety with family and friends. The majority of those surveyed said Germain says, “Safety at work has a ripple that training changed their attitude and Alice Wong, senior vice-president and effect into our home and communities. behaviour. After receiving workplace chief corporate officer at Cameco, says That’s why two of the principles of training, they pay more attention to this fulfills Cameco’s hope for their staff. the Health and Safety Leadership potential hazards and keep safety Being immersed in the company’s safety Charter directly address the importance culture begins on a person’s first day at foremost in their daily activities. They felt of leaders and employers bringing Cameco and continues throughout their they followed instructions better, didn’t safety to the wider community. Employers career, and they want those values to use shortcuts and worked more carefully. who invest in safety training and continue when the shift ends. “Our safety building a safety culture are investing in When asked if they use their workplace mantra is ‘No job is so important that we our communities.” safety skills at home, more than 80 per cannot take the time to do it safely.’ We cent of employees said yes. They said they expect all employees to consider safety in are more active in identifying dangers any activity they undertake as part of their or unsafe practices, more conscious of work, whether it’s walking up a staircase slowing down, keeping organized and in an office building or operating heavy planning activities. They said they are equipment. People take safety awareness more likely to use PPE such as safety home with them and we hope they apply glasses, harnesses and other protective it in everything they do.” gear. They also said they used what they Cameco uses a model of coaching — not had learned about the use of fire detectors enforcement — to teach safety. Every and extinguishers, safe lifting, power tool meeting begins with a safety moment safety, confined spaces, ladder safety and and each shift begins with a Tool Box talk electrical safety, first aid and WHMIS where safety is the first agenda item. Each training. They also became safer on the task is evaluated for hazards and those are road and on the water, reporting they then mitigated. They hold weekly safety used life jackets and seatbelts more, huddles so everyone has a voice. Some practiced safer boating and drove safer. OPPOSITE PAGE Cigar Lake mine emergency response team members ensure they are ready for any possible incident THIS PAGE TOP Employees at Cigar Lake mine meet to prepare for their shift BOTTOM Alice Wong
BUSINESS AND INDUSTRY SASKATCHEWAN 9 [ ENTREPRENEURSHIPHR/MANAGEMENT ] ]
tHree Key StrategIeS FOR LEADING “GENERATION Y” EMPLOYEES BY JEANNE MARTINSON, MA
aving challenges leading or managing your Generation Y employees? Even if you fall into this generational category yourself, you too may be surprised how diff erent Generation Y may Hbe compared to the three older sets of talent you have in your organization.
Generational diff erences are not so much about the age the person is but the age they were raised in. What were the social, economic and political factors of their youth? How were they infl uenced by their parents, educators and media?
You have no doubt heard a fair bit about this newest workforce generation, but all Gen Ys are not alike. Th e stereotypical Gen Y grew up as a single child or one of only two children, in an urban environment, by middle-class parents of western European descent who worked for others rather for themselves. (However, as soon as other factors come into play such as entrepreneurial parents, rural upbringing, larger family, or immigrant experience, the person who may be chronologically Gen Y is not a typically behaved one.)
For the purpose of this discussion, let us look at three specifi c ways to increase your leadership relationship with the typical Gen Ys you have on your team:
10 BUSINESS AND INDUSTRY SASKATCHEWAN Strategy One: interpret this to mean the organization too many unnecessary rules and there Hire Smart or Lead tough is open for a 11 a.m. to 7 p.m. work shift, is no leeway for negotiating those rules, when the interviewer only meant that they will be dissatisfied. Likewise, if If you don’t manage the interviewing instead of 8:30 a.m., employees can come they see there is little upward mobility process for Gen Y employees correctly, in as early as 7:30 a.m. or as late as 9 a.m. or opportunity to grow, learn or make you may be managing misunderstandings This lack of common work definitions a difference in their current work into the future. The common sense or requires increased communication from situation, they will be dissatisfied and understanding that exists within one all concerned. look for other job opportunities. Gen Ys generation has been thinly stretched are genuinely surprised when Boomers Also, be clear on the road to when it comes to the understanding who are extremely unhappy in their advancement. In a study discussed in the of work a Gen Y or a Boomer might work continue to hang in there, just Journal of Diversity Management, 5057 because retirement may be around the hold. This lack of “common” sense individuals from the four generational corner. On the other hand, Boomers between the generations can create groups were surveyed using the Rokeach are surprised that Gen Ys will change misunderstandings that lead to job Value Survey of 18 values. The third jobs if they don’t think the manager is change, conflict and poor productivity. top value for Boomers (after honest authentic. In the interviewing process, and responsible) was loyal. The fourth For example, Gen Ys were raised with discuss in concrete terms timing top value for Gen Xs (after honest, a negotiating mindset where they around advancement and the skills and responsible and capable) was loyal. The knowledge the employee would have to negotiated sleep times and privileges sixth top value for Gen Ys (after honest, acquire for the next several promotions. with their parents, and assignment topics responsible, loving, independent and and deadlines with their teachers and ambitious) was loyal. Strategy twO: professors. To some Gen Ys, everything Be authentic is negotiable. So when an interviewer Each generation values loyalty, but Gen suggests to a Gen Y candidate that the Ys have higher values for independence As discussed above, loyalty is a value for work hours are flexible, a Gen Y may and ambition. If they feel that there are all generations. However, loyalty and
BUSINESS AND INDUSTRY SASKATCHEWAN 11 [ HR/MANAGEMENT ]
years of commitment to an organization may be seen as an important symbol of dedication to the organization, consider something more encompassing to include Gen Ys.
Every generation wants feedback and they want it as clearly communicated as possible. But Gen Ys especially need clear feedback as they simply may not have the experience to understand vague summarizing directions.
Many managers have been trained with the “feedback sandwich” where you provide positive feedback followed by negative feedback and finish up with a dash of good feedback before you finish the conversation. This feedback strategy often fails due to the factor of “recency” where the employee most strongly remembers the last thing said to them and the “averaging” factor where an employee can tell themselves that overall they are doing a good job.
The good news/bad news/good news of the feedback sandwich does not work effectively with any of the generational groups and it is particularly risky with Gen Y employees. Many Gen Ys are not used to receiving negative feedback where they are held solely responsible for the consequences of their behaviour, so they may minimize the negative staying with the organization are not moment’s notice to be on a team they feedback and focus on the positive synonymous to a Gen Y. Traditionalists find more meaningful with a leader feedback at the beginning and end of the and Baby Boomers are loyal to an that they respect. Although this quick conversation. organization and stay there long-term willingness to move may be seen by Managers generally dislike giving if the employer-employee relationship previous generations as demonstrating negative feedback. That is only human continues. Gen Xs are loyal to their a lack of consistency, dependability nature. However by giving confusing team and manager, and as long as their or loyalty, it can be used in a leader’s feedback or no feedback at all, the manager is competent and creates favour. A transparent leader who manager is setting up the employee opportunities for a Gen X’s growth and demonstrates both skills and experience advancement, he or she will continue to and a willingness to be courageous and for failure and the organization for be loyal to their manager and are likely insightful can influence Gen Ys to join possible legal issues because they have to remain with the organization. their team and remain engaged. not given the employee an opportunity to truly learn how they could improve. But Gen Ys’ retention relates more to Strategy tHree: Throw out the sandwich, focus on the authenticity of their leaders than the give real, Frequent, specific behaviour and emphasize organization itself. Gen Ys value integrity effective Feedback consequence and impacts to the team and commit to those who display it. and organization. Behaviours such as doing what you As Gen Ys have less appreciation for say you will, honouring commitments, earning their stripes, climbing the shouldering blame and sharing success ropes or buttressing up egos, employee Jeanne Martinson, MA is a bestselling show consistent, predictable leadership recognition awards banquets will be met Canadian author on diversity and that appeals to Gen Ys. They are with cynicism and poor attendance by leadership. Her latest book, Generation Y willing to follow those who they find Gen Ys. While giving a Traditionalist or and the New Work Ethic, is available as an compelling and could change jobs at a Boomer a plaque commemorating their eBook and in print at www.martrain.org.
12 BUSINESS AND INDUSTRY SASKATCHEWAN
EXPERT MANAGEMENT AND
ADVICE
ADVICE HUMAN RESOURCES EXPERT
Mining for Talent
Businesses everywhere are seeking Dominance, In uence, Steadiness and better ways to secure the talent necessary Compliance. e results provide a clear for success. To achieve superior picture of the person’s behaviour style. performance, you must go mining for is information signi cantly enhances the right person. e rst step is to be the hiring process by revealing an crystal clear on the job requirements and individual’s strengths and the kind of job the results that need to be achieved. for which they are best suited. The Job Benchmarking e assessment tool should also identify the person’s motivators and values. Photo by Calvin Fehr Process: Let the Job Talk As a window through which we view Peter Neufeldt Only the job has the answer to what the world, values are the drivers of our is required to be done in an excellent behaviour. Our values drive and motivate President, Peak manner, so let the job “talk” and our actions. With the knowledge of the Performance Consulting listen carefully. You do this by using person’s values, you can further discern 201 - 2161 Scarth Street subject matter experts — people the right t for your job. Regina S4P 2H8 within the organization who have a 306.790.4570 direct connection to the job — and Compare Talent to the Job [email protected] exploring their expertise and knowledge Benchmark to Achieve the www.peakperformanceconsulting.ca of the results needed from the job. is will help you to create the job Right Fit benchmark. e benchmark will include e third step is to compare the results performance requirements of the job, of the behaviours and values assessment the position’s key accountabilities, or to the job benchmark to ensure the critical goals and key business successes right t, or to identify the gap between the job is accountable for. ere are well- the characteristics an individual will our people are your most researched and carefully designed “job bring to the job and the requirements of precious resource. Just as the benchmarking” processes that will be the job. earth is lled with natural very helpful in this crucial step. resources of minerals, oil Engaging in this benchmarking, andY precious stones, so is our business assessment and gap analysis process Assessing the Person world lled with precious human for the Job provides factual data for a solid resources! foundation for e ective hiring as well What kind of person would best t the as for future coaching and long-term e challenge is to nd, nurture and position you just benchmarked? What development and retention of the person retain the people who will ful ll your personality/ behaviour style is needed to you hire. needs in your industry and on your excel in the job you just benchmarked? team. We know that only your people What motivators are needed so the Peter Neufeldt is president of Peak can be made to appreciate in value. All incumbent will be inspired and love Performance Consulting and an expert other resources and corporate assets what he or she is doing? on leadership development and building depreciate over time. It is also true strong e ective teams. He is co-author many times we nd people, like ese fundamental questions can easily with Brian Tracy of the soon-to-be-released diamonds, in their rough state and be answered by the use of an assessment book, Success Today. For leadership don’t recognize the potential beauty and tool such as those based on the DISC training, coaching and more information value that will emerge with careful theory. In this assessment tool, behaviour regarding the use of assessments call cutting and polishing. is measured in four dimensions: 306.790.4570.
BUSINESS AND INDUSTRY SASKATCHEWAN 13 [ SAFETYHR/MANAGEMENT ] ]
14 BUSINESS AND INDUSTRY SASKATCHEWAN Creating a COMMON VISION for Your Team By Blythe Martin Photo Calvin Fehr
People are funny. they can frustrate us, amaze us, evoke powerful emotions at all ends of the spectrum, and make us do things we never thought we’d do. our day-to-day existence is shaped by the people we encounter around us.
his is the realization Chris McKee and Beattie are often asked, McKee asserts that answering some of McKee and Kelly Beattie “How do I get my employees to buy-in those questions is often all a team needs came to years ago, which to what I’m trying to do?” They suggest to get it functioning as a unit and start led to the founding of a few questions to ask yourself in pursuit achieving some of the organization’s big theirT consulting partnership, Beyond of an answer: Connections. The duo believe people are goals. “Developing a strong strategic plan the most valuable resource in which an “What am I trying to do?” Are you can be an excellent start to answering all organization or business can invest. It’s even sure of what it is you are working of those questions,” he suggests, “and why so much time, energy and money is towards? So often we try to communicate often that is where an outside consultant spent trying to figure them out. It leads a plan that we haven’t thought through can provide some expertise and insight us to wonder what they’re thinking, and entirely and don’t have a full vision of. we question their motives. into ways to best create that goal your “Have I told my employees what I’m team will want to belong to.” “Every business is looking to find an edge trying to do?” Sometimes, we assume a by maximizing an employee’s potential,” convoluted memo or a vague powerpoint Sometimes the temptation is to aim low says McKee, “and often, programs are presentation will do the trick, but our — carry on with what we are comfortable developed to cater to the many types of goals need to be communicated with with and don’t stretch the boundaries personalities an organization employs. details and passion. or overwhelm our team. But maybe Sometimes we talk about celebrating your team is asking for a bigger goal to people’s differences as a way to help them “Is what I’m trying to do achievable?” bring them together. Find that common work together.” The final result has to be something that your team can actually grab onto as a vision, and with the right planning and But there are other ways to get an possibility. It can’t be a goal that can only strategy, the sky’s the limit. organization to hum with success. “Not everything has to centre around be achieved 20 years after most of them have retired, or they won’t feel like it the differences in an organization. Beyond Connections Consulting belongs to them. Sometimes we need to focus on what 1030 Bogue Avenue makes us all the same,” says Beattie. “Do I have a realistic plan to achieve Moose Jaw, SK “The key is realizing everyone wants what I’m trying to do?” Can you lay out 306.631.3028 to be a part of something bigger than the steps you need to take to reach your 306.209.0021 themselves,” Beattie maintains. “We all target? Can you see ways you need to www.beyondconnections.ca want to feel like we belong and this is the change your processes and streamline @connectbeyond opportunity that is so often lost in some your operations? Are you creating a plan Beyond Connections Consulting of the work done with employees.” for your team to follow?
Previous Page Photo L-r Kelly Beattie and Chris McKee
BUSINESS AND INDUSTRY SASKATCHEWAN 15 [ SK INDUSTRY ]
CANPOTEX: TAKING SASKATCHEWAN POTASH AROUND THE WORLD
BY BUSINESS & INDUSTRY STAFF PHOTOS COURTESY CAMPOTEX
Canada is one of the world’s largest potash pro- lants need three nutrients: potash, phosphate and nitrogen. Th ese nutrients are used ducers, accounting for 30 per cent of current together for maximum eff ect as a fertilizer. global production, which in 2013 was worth Saskatchewan’s deposit of potassium chloride variesP in colour from red to white. It might be a surprise $5.8 billion. The Prairie Evaporite Deposit, a high that there are more than 20 grades of potash that come quality mineral, lies buried deep (at roughly 3,000 feet from Saskatchewan used for many diff erent things. More than 95 per cent of potash is used as fertilizer, but below the surface) beneath the plains of Saskatchewan. the other fi ve per cent is used in such things as glass, The deposits occur when ancient sea beds evaporate pharmaceuticals, road de-icer and in sports drinks. Potash does several things: it improves the resistance of and, luckily for us, we were once covered by water. The crops to pests, diseases, excess water, and high and low potash industry employs 5,000 Canadians and is Cana- temperatures. It also strengthens plant roots, helps with food transport, and improves crop taste and colour.1 da’s largest mineral export. Just last year, Canpotex cel- ebrated the shipment of more than 200 million tonnes A world of long-term potash reserves shows that Canada has 46 per cent, Russia 35 per cent, and Belarus of product since 1972. eight per cent. Israel, Brazil, the United States, China, 1 Mosaic pamphlet in the Leader Post
16 BUSINESS AND INDUSTRY SASKATCHEWAN TAKING SASKATCHEWAN POTASH AROUND THE WORLD
Jordan, Germany and Chile all have For this reason and others, Canpotex Canpotex invests in both Canada and small deposits. is important, both in Saskatchewan Saskatchewan. In 1999, Canpotex and internationally. Canpotex takes commissioned new railcars to meet It seems strange to suggest that the mineral Saskatchewan’s valuable mineral around certain specifi cations to ensure the is a strategic resource, but if one thinks of the world, to where it is needed. maximum effi ciency in shipping the its importance to individual farmers and product, whereas before potash had to the production of food worldwide for When a deal is signed to sell Saskatchewan been shipped in grain cars. Th ese new an increasing population, the assertion potash internationally, it is Canpotex railcars were built in Hamilton, ON by rings true. More importantly, production who signs it rather than the individual National Steel Car, approximately 5,400 is centred mainly in two areas: Canada producers. Canpotex is the short form for of which are dedicated to potash at any and Russia. With Russia increasingly Canadian Potash Exporters, the exporting given time. Th ey are actually shorter unpredictable, supplies of the resource and marketing fi rm that manages all than the previously used grain cars, from that area could be shaky. Th at of the Saskatchewan potash sales to but hold more potash due to better means demand for Canada’s potash could overseas countries, outside of Canada design. When trains are 170 railcars increase, especially when one considers and the United States. Canpotex is wholly long, this becomes more important. that demand for food is predicted to owned by its three member producers — increase more than 70 per cent by 2050. Agrium, Mosaic and PotashCorp — who Th ese specialty railcars help Canpotex Th us, potash is an essential part of the are all equal decision-making members. ensure that its high-quality potash is global food security equation. Th ey also share in transportation costs. carefully transported from mine site to
BUSINESS AND INDUSTRY SASKATCHEWAN 17 [ SK INDUSTRY ] Canpotex celebrated the MILLION shipment of more than 200 million tonnes of product 200TONNES since 1972.
port without contamination. Certain There are currently two main port shipments in the future through the grades of potash (such as the white- facilities utilized by Canpotex — the Northwest. In November, Canpotex’s coloured grades) are kept separate largest in North Vancouver, B.C. and continued support of the Indian potash from others, and Canpotex dedicates the other in Portland, Oregon. The market was celebrated with a multi-year certain railcars for those specialty Neptune facility in North Vancouver deal to ship potash to India. In January grades of potash that need to be handles approximately 75 percent of 2015, it announced a three-year deal handled differently. the potash shipped internationally, with Sinofert for at least 1.9 million while the Portland terminal handles the tonnes of Red Standard grade potash. In 2012, Canpotex built a railcar other 25 percent. There is a third At the end of March, Canpotex finalized maintenance facility just west of potential terminal location in Prince 2015 potash supply contracts with all Lanigan, SK. The facility is intended Rupert, B.C. but the final decision has yet of its major customers in China, which to keep its fleet in prime condition, with to be made. could potentially increase the amount of services such as all-weather inspection, Saskatchewan potash shipped to China Canpotex also has an extensive network of repair and maintenance, washing, from 1.6 million tonnes (2014) to 1.8 brokerage and vessel chartering and vast million tonnes (2015). wheel repair and on-site switching to experience with ocean transportation, ensure railcars are rotated in and out of which ensures the smooth delivery of Canpotex was created to ensure the long- service. The facility was a $60 million its product to its many customers around term viability of the Saskatchewan potash investment on the part of Canpotex, the world. industry. This province is blessed with showing commitment to increasing vast mineral resources. It is important railcar performance, managing its fleet In the past six months, Canpotex has organizations such as Canpotex are there and ensuring its product reliably and announced expansion of its terminal in to ensure the continued viability and efficiently gets to market. Portland, Oregon, as it sees increased success of our key resource sectors.
18 BUSINESS AND INDUSTRY SASKATCHEWAN SAVE THE DATE! Our next show will be June 3 & 4, 2015
BUILDING COMMUNITY THROUGH INDUSTRY SINCE 1985
Attendance to the Saskatchewan Oil and Gas Show is free. Online registration for attendees will be available on our website starting May 2015. SOLD OUT OF EXHIBITOR SPACE. All registered exhibitors are listed on our website. We are currently working on sponsorship opportunities. Anyone interested please contact Tanya Hulbert, Show Manager, [email protected]
Endorsed by:
www.oilshow.ca
Thank you to the following sponsors:
Platinum Sponsors Gold Sponsors Silver Sponsors Bronze Sponsors FineLifestyles WEYBURN/ESTEVAN [ SK INDUSTRY ]
How Long Will the Oil Stay CHeap?
By Gwynne Dyer
20 BUSINESS AND INDUSTRY SASKATCHEWAN I’m in Alberta, the province that pro- his hits jobs and government revenues hard in big oil-producing centres like Alberta, Texas and the duces most of Canada’s oil, and there’s British North Sea, but its effects reach farther than T that. “Clean” energy producers are seeing demand only one question on everybody’s lips. for their solar panels and windmills drop as oil gets more competitive. Electric cars, which were expected to make a major How long will the oil price stay down? It market breakthrough this year, are losing out to traditional gas- guzzlers that are now cheap to run again. has fallen by more than half in the past Countries that have become too dependent on oil revenues are in deep trouble, like Russia (where the rouble has lost half its nine months – west Texas Intermedi- value in six months) and Venezuela. Countries like India, which imports most of its oil, are getting a big economic boost from ate is $48 per barrel today (March 11) the lower oil price. So, how long this goes on matters to a great – and further falls are predicted for the many people. The answer may lie in two key numbers. Saudi Arabia has $900 coming weeks. billion in cash reserves, so it can afford to keep the oil price
BUSINESS AND INDUSTRY SASKATCHEWAN 21 [ SK INDUSTRY ] anguished pleas of some other OPEC members that need money now.
The Saudis are thinking strategically. OPEC only controls about 30 per cent of world oil production, which is a very low share for a cartel that seeks to control the price. If fracking continues to expand in the United States, then OPEC’s market share will fall even further. So it has to drive the frackers out of business now.
At first glance, the Saudis look like sure winners because they can live with low prices a lot longer than the deeply indebted frackers can. The banks that have lent the frackers so much money already won’t get it back if the industry implodes in a wave of bankruptcies, but they don’t want to throw good money after bad.
The real wild card here is the U.S. government, which wants the “energy independence” that only more domestic oil production through fracking can provide. Will it let the American fracking industry go under, or will it give it the loan guarantees and direct subsidies that would let it wait the Saudis out?
Stupid question. Of course it will do what is necessary to save the fracking industry. Ideology goes out the window in a case like this; you can get bipartisan support in Washington for protecting a key American industry from “unfair” foreign competition. That will certainly be enough to keep the frackers in the game for another two or three years. low for at least a couple of years. The dominated the global oil market for the “frackers” who have added four million past 50 years. Meanwhile, the OPEC members that barrels per day to U.S. oil production depend on oil income to keep large in the past five years (and effectively All oil exporters want to keep the price populations well fed and at least flooded the market) already owe an high, but Saudi Arabia was the one marginally content (e.g. Iran, Nigeria and estimated $160 billion to the banks. OPEC member that could and would cut Venezuela) will be facing massive public its production sharply for a while when protest, and possibly even the threat of They will have to borrow a lot more an over-supply of oil in the market was revolution. Their governments will be to stay in business while the oil price driving prices down. It could afford to putting huge pressure on Saudi Arabia is low, because almost none of them do that because it has a relatively small to save them by cutting production and can make a profit at the current price. population, very large savings, and a cost driving the price back up. Production costs in the oil world are of production so low that it can make deep, dark secrets, but nobody believes some profit on its oil at almost any price. It’s impossible to say how this game will that oil produced by hydraulic fracturing end, but it’s pretty easy to say when. Two (“fracking”) comes in at less than $60 to But even the Saudis cannot work years ought to do it. Once the outcome is $70 per barrel. miracles. They can aim for maximum clear, the price of oil will start going back production or maximum price; they up no matter which side wins, but it will The real struggle is between the cannot do both at the same time. go up relatively slowly. We are unlikely to frackers and Saudi Arabia, because Normally they would cut production see $100-a-barrel oil again before 2020 at the latter is the “swing producer” in temporarily to get the price back up. the earliest. OPEC (the Organisation of Petroleum- This time they refused to cut production Exporting Countries), the cartel that has and let the price collapse, despite the
22 BUSINESS AND INDUSTRY SASKATCHEWAN Report it!
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14SENE163_Bus & Ind_Odourant Ad.indd 1 2014-12-22 2:32 PM [ SK INDUSTRY ]
2015 Williston Basin Petroleum ConferenCe: One Basin Fuelling Two Nations
By Tobie HainsTock
The Petroleum Technol- t will be an exciting gathering Approximately 225 booths will be on of some of the most innovative display throughout the conference. It ogy Research Centre minds and businesses in the will be a prime opportunity to view industry. (PTRC) in partnership I exciting new products. The When and the Where with the Government of The WBPC is an annual event held Saskatchewan is pleased The event occurs April 28th to 30th alternately between Regina and Bismarck, at Evraz Place in Regina and offers North Dakota. This year’s schedule offers to host this year’s opportunities for members of the a series of speeches on topics including Williston Basin Petroleum petroleum industry to network Crude Oil Transportation, Remote with colleagues, gather information Capture Technologies and Regulatory and Conference (WBPC). and spend time at the trade show. Environmental Issues.
24 BUSINESS AND INDUSTRY SASKATCHEWAN A special core workshop will consist gas supply opportunities. The forum scientific and technological advances of a wide selection of topics presented takes place Tuesday afternoon in the that are pertinent to hydrocarbon by the University of Saskatchewan, the exhibit hall at Evraz Place and will exploration and development. Ministry of the Economy, Crescent Point provide information for topics of interest Energy Corporation, the University of to industry. Norm Sacuta of the PTRC comments Regina and more. that with the decline in oil prices they According to Monique Lischynski are expecting slightly less activity at the Thursday’s keynote speaker is Patricia with the Ministry of the Economy, conference than usual, but they are still M. Mohr, vice president, economics Saskatchewan’s petroleum industry is very confident in the overall success of and commodity market specialist at one of the key drivers of the province’s the event. “Those of us in the industry Scotiabank’s executive offices in Toronto. economic growth, not just in terms of recognize oil prices are not going to Mohr works closely with corporate and direct development and investment, but be low forever and there is still a lot of investment banking groups including in terms of its related impact. A highly development and technology beneficial those in the oil and gas sector. Mohr’s diversified and competitive supply in the long term.” topic will be Outlook for International chain provides “made-in-Saskatchewan” Oil Prices 2015-16: Implications for the solutions to the oil and gas industry, Overall, the WBPC event presents a Williston Basin. and the supply chain session will add positive and proactive venue for those value to the entire conference for the within and affected by the petroleum supply chain Forum businesses and manufacturers involved industry. It provides opportunities for in this activity. participants to take in educational, New to the WBPC this year is the social and networking events. “We are supply chain session. This portion of Moving Forward looking forward to a great three days,” the conference focuses on offering the adds Sacuta. various manufacturers, construction The WBPC also presents opportunities companies, equipment and service to all sectors of the oil and gas industry www.wbpc.ca providers information regarding oil and to learn about new and developing geo- Top phoTo by Evraz placE
BUSINESS AND INDUSTRY SASKATCHEWAN 25 [ SK INDUSTRY ] UPDATE: KEYSTONE XL PIPELINE
26 BUSINESS AND INDUSTRY SASKATCHEWAN BY BUSINESS & INDUSTRY STAFF
UPDATE: he proposed Keystone XL the Athabasca Tar Sands deposit in pipeline is an approximately Alberta, which many environmentalists 1,200 mile long 36-inch have targeted, suggesting it is “dirty” pipeline from Hardisty, and has too great a carbon footprint to AlbertaT to Steele City, Nebraska, via extract without grave environmental KEYSTONE Baker, Montana. The Keystone pipeline consequences. Secondly, because the already exists, and the XL is a new project. project is international in that it crosses the Canadian border into the United States According to the proponent, and requires presidential approval, it was TransCanada, the pipeline would take a possible target for political action, even two years to construct once approval if the pipeline itself was only a symbol of is received, and would provide 13,000 XL PIPELINE the larger climate change struggle. construction jobs. Of the 1,200 miles, 329 miles is in Canada, from Hardisty to Michael Levi, senior fellow of the Monchy, Saskatchewan. The pipeline’s Council on Foreign Relations, suggests capacity will be 830,000 barrels per day. Keystone is a small player that has had a big effect, despite its size. “Things like Trans-Canada suggests the new the falling price of oil will have a larger project will augment current pipeline influence on whether the tar sands get infrastructure, and also support new mined than whether the Keystone XL production in the Bakken region, while gets built.” also improving access for Canadian and American producers. The Republican Speaker of the House, There are many pipelines running across John Boehner, said after the veto that the Canada and the United States. Some issue is far from dead. The Republicans statistics suggest there are more than could take the Bill up again, but would 2.5 million miles of gas, oil and other need a two-thirds majority to override pipelines in the U.S. In Canada, we the President’s veto, and it is unlikely to transport in excess of 3.3 million barrels find that. per day over 22,000 miles of pipeline. That said, the project is not dead. Until With rail transport of oil currently the State Department presents the exceeding 200,000 barrels a day, and President — or the next President — carried by seemingly endless trains with a final report on Keystone XL, there winding across Canada, the future of the will be no movement. President Obama Keystone seems to be more important, still says he is not against the project, but given the view pipelines are safer than is against the House and Senate trying transporting oil by rail. to override what he considers to be the traditional approval process. On February 25, President Barack Obama vetoed the bill that would have As this stalemate continues, rail traffic given approval for construction of the increases. Gary Doer, Canada’s current Keystone XL pipeline. It was only the third ambassador to the United States, says veto of his presidency, but it was a direct during the period Keystone has been challenge to the Republican majority in delayed, rail traffic carrying oil from both the House and the Senate. Canada to the U.S. has increased tenfold. Experts suggest rail traffic is safe 99 per How did this pipeline project become cent of the time, but the few derailments so political, even when it has limited that do occur are often catastrophic. environmental impact and limited economic impact over the long term? The political calculus is difficult, but First, the pipeline will service oil from politics is always about choices.
BUSINESS AND INDUSTRY SASKATCHEWAN 27 [ COVER STORY ]
45 Years & 5 Divisions Strong: Northern Strands is Growing with Saskatchewan By Paul Sinkewicz PhotoS ziqi zhang PhotograPhy
Mining and construction — two of the heavyweights of working the order desk in the Saskatoon and Regina offices. Clarke says he the Saskatchewan economy — rely on largely unseen, doesn’t want to just sell product, but critical systems to function properly. northern Strands is provide technical knowledge that will give his clients what they need to get a key supplier of those systems. their work done. “The motto is ‘exceed their expectations.’ ” ike the bones, sinew and industry since 1970, evolving into muscle of a body, wire rope, five major divisions that offer needed “When clients ask our sales staff for fittings and riggings are the tools and technical knowledge in mine a product, we are going to politely moving parts that make hoisting and attachments, general interrogate them to make sure they are industryL work. They keep underground getting what they need,” says Clarke. rigging, engineered fall protection, treasure like potash flowing to the surface, suspended access and training. “You might find out you are missing and help hoist construction materials something. Maybe it will be something skyward as buildings take shape. Owner Garry Clarke insists his team like not having the correct factor of safety members have a technical base of for a particular job. So for example, if With health and safety in mind, knowledge to properly assist their you are hauling workers, you need a 10:1 Northern Strands has been supplying customers, right down to the staff factor of safety. They will know that and
28 BUSINESS AND INDUSTRY SASKATCHEWAN help you get what you need. These are trained rigging people who could probably teach rigging courses themselves. They know the right questions to ask.”
That respect for technical knowledge permeates the culture of Northern Strands.
When owner Clarke speaks about the company’s co-founders, such as his long-time friend and mentor Larry Mote, it is with a tone of reverence. When that group banded together in 1970 to serve the needs of Saskatchewan’s burgeoning potash mining industry, each brought years of experience to the table. Right from the start, Northern Strands had secured the rights to distribute France’s Arcelor Mittal mining rope in North America.
Mote had done so well selling that by the mid-70s he was the sole owner of the firm. He began to expand the product line to include wire rope and rigging, and eventually the attachments used on the ends of the ropes.
Tracking the firm’s sales soon required a map of the world, not just Saskatchewan, as Northern Strands supplied mines and dams from Colorado to Yellowknife and Timmins to Mongolia. “He [Mote] really knew his customers and had good relationships with them,” Clarke says. By the early 1980s, Mote spotted new opportunities in areas related to hoisting, and set out to further diversify the product line and expand his customer base.
BUSINESS AND INDUSTRY SASKATCHEWAN 29 [ COVER STORY ]
That was instrumental in helping Clarke added his own extensive meeting those new needs. Whenever I Northern Strands weather a downturn knowledge to the small four-person went out to the mines, I would buy any in the economy. Things began to pick team, using it to bring new opportunities surplus gear I could find,” says Clarke. up and in the early 1990s they started to the firm. The company was soon Items such as mining attachments to sell a variety of warehouse products rehabilitating and refurbishing and small hoists gave him a chance to such as chains, rigging, slings and attachments and fittings to meet the rehabilitate and resell equipment, and it shackles. In 1998, Mote and his son demand of an expanding mining was a deep understanding of provincial and partner, Darrell, began to look industry. When that side of the business regulations that was the key. By diverting for someone to come on board to took off, it spurred an expansion of the equipment previously destined for the promote these warehouse products. office and the installation of a showroom garbage bin, Northern Strands was saving That’s when Clarke found his home in their original Millar Avenue location. money for its customers, who no longer at Northern Strands. He had been had to buy new or send items overseas working for mining service companies “We went great guns, because at the same for recertification. Today, Northern all over Saskatchewan, but was looking time all this was happening, the rules Strands is still a leader in supplying to settle into Saskatoon with his young governing mining were getting stricter,” major ropes and attachments to mines family. His career had already included says Clarke, “…rules about fall protection, around the world. installing and servicing Northern rules about mining attachments being Strands ropes in working mines, so he recertified. So we watched those new The years between 1998 and 2001 was well versed in their products. regulations and focused our energy on marked significant change at Northern
30 BUSINESS AND INDUSTRY SASKATCHEWAN Strands. Many new opportunities plans. Northern Strands even began need more focused expertise as it grew. presented themselves, and Mote and helping mines write up the procedures Clarke were quick to take advantage of that would guide their maintenance “When you’re first building something them. Clarke began buying into the firm programs into the future. like this, you need multi-skilled people,” at that time, believing there was a great says Clarke. “But you get to a point where your focus has to change and you go out opportunity at hand. “In the old days, there were no written procedures,” says Clarke. “Mining and get the people who can concentrate “We really knew what the rules were, requires them now. The great thing on the one area they really know well.” because of Larry, and we really dug about a lot of the people that work here Clarke began bringing in people to into things,” says Clarke. “We talked to is that we’ve been all over. We’ve worked specialize in swing stages, mining the mine inspectors; we went through in places like Ontario where modern attachments, warehouse operations and the Occupational Health and Safety operational and safety regulations came engineered fall protection. (OH&S) Act and we knew that stuff in earlier than Saskatchewan. So what inside and out.” we’ve done as a company is adopted the Another leap forward came when best of the rules and we use them.” Northern Strands began fabricating They started exchange programs for many of the products it used to buy from the mines, guiding them through By 2001, Northern Strands had started overseas to resell. By making them here the implementation of scheduled a successful branch in Regina, and it in Saskatchewan, Clarke could ensure replacement programs and work was becoming clear the company would they would meet customer needs. “We
BUSINESS AND INDUSTRY SASKATCHEWAN 31 [ COVER STORY ]
When suspended access rules changed so companies couldn’t just build their own suspended stages for working at height, Clarke recognized another opportunity, and Northern Strands began supplying suspended access companies with equipment.
“In the course of probably two years, I found the guys I needed, and bought all the right equipment, and we started to take those jobs. It just grew from there,” he says. The suspended access division now offers training, rentals and equipment installations. “We’re very likely the largest suspended access supplier in Western Canada, and are really well respected.”
With a commitment to safety already embedded in the culture of the company, it was logical for Northern Strands to parlay its expertise into a training division.
Its fully certified training staff know the latest OH&S regulations, and can educate workers in fall arrest, tugger safety, First Aid and CPR, wirelock socketing and rigging. The training seminars are offered either on-site or at Northern Strands’ facilities.
“The industry did lots of wrong things with rigging in the old days. There is no excuse for that in this day and age,” says Clarke. “Nowadays, you have a critical lift plan, a rigging plan. We didn’t have it back then.” The company is a member of the COR (Certificate of Recognition) program, which provides Northern Strands with an effective safety and seriously try to listen to our customers this was quite a common thing, so we health management system. Safety has and find out what they are looking for. did some research and got our suppliers always been the cornerstone of Northern When you watch them and realize to come over here and train us. That was Strands. It was important for Northern something is a real pain for them, it’s an one of our major expansions, into fall Strands to become a COR member and opportunity for us.” protection and life lines.” It was around show that they not only talk the talk — this time that provincial regulations they walk the walk. In 2006, the firm bought its new 18,000 became more robust to keep workers sq. ft. building on Millar Avenue, and safe when working at height. As a mature company, Northern Strands expanded its manufacturing ability, has a strong sense of corporate social including bringing in more highly “When we started into all this, you could responsibility and has been supporting talented staff. “It really helped us a lot,” hook onto anything you could find, but children’s wish charities over the years Clarke says. “It gave us the room we then OH&S started questioning industry as well as local 4-H programs. When the needed for manufacturing, storage and, methods and requiring certification of company makes a donation, Clarke insists of course, better customer access.” anchor points, regular inspections and it be one of the other team members that pull testing.” Northern Strands started make the presentation because they are In 2007, Northern Strands started the providing the anchoring products and all integral to the donation. “I want them engineered fall protection division, services other companies didn’t want to to know it’s not just me as the owner; it’s recognizing an industry need for be burdened with from both a technical the company. We did this. We are making working safely on roof tops. “Overseas and liability point of view. this province a better place.”
32 BUSINESS AND INDUSTRY SASKATCHEWAN
[ REGIONAL ECONOMICS ]
SHOWCASING SASKATCHEWAN The Big Business of Bringing Events to the Province
BY TONYA LAMBERT PHOTOS COURTESY TOURISM SASKATOON AND REGINA HOTEL ASSOCIATION
34 BUSINESS AND INDUSTRY SASKATCHEWAN Over the course of a year, hundreds of regional, “ here is a growing thought that hosting business national and international business, cultural events is an industry unto and sporting events are held within the prov- itself,” says John Lee, CEOT of Regina Regional Opportunities ince of Saskatchewan, the majority in Saska- Commission (RROC) and Tourism toon and Regina. These events play a key role Regina. “Business events contribute in excess of $30 billion annually to Canada’s in helping to stimulate economic growth through GDP. They’re big business — part increased employment, participant spending, tourism and part industry growth.” Brad Peters, director of International Sales new trade and investment opportunities and the and Development, Tourism Saskatoon, potential for return visits to the province. Both explains, “Conventions are not as well profiled in the media as sporting events, the direct and indirect economic impact of these so people often don’t realize just how events are huge. many are held in the province.”
Traditionally, when people refer to business events they mean conventions, conferences, meetings and consumer/ trade shows. However, Hugh Vassos, who has worked for many years with Saskatoon Sports Tourism, argues sporting and cultural events need to be included in the definition. “Sporting and cultural events are very important,” notes Vassos. “They make a large economic impact and tend to involve more members of the community than industry-specific business events. They need to be treated as business events because of the huge economic development they create.” For example, the 101st Grey Cup Festival in 2013 impacted the provincial economy to the tune of $93 million, while the Junos held in Regina and Moose Jaw that same year infused another $10 million into the economy.
Of the many benefits that accrue to the province and its residents from hosting various business events, some are easier to gauge than others. The most obvious is the money which delegates, fans, volunteers and media personnel spend while attending an event. This includes paying for hotel rooms, meals and transportation costs, such as taxi and bus fares and airport fees. Items forgotten at home need to be replaced. Additional funds are spent purchasing souvenirs and visiting local attractions. “The provincial sales tax captured from purchases is invested back into the province by the government,” notes Tracy Fahlman, chair of Conventions Regina.
Peters says it is impossible to know exactly how much money is spent by any individual but states formulas
BUSINESS AND INDUSTRY SASKATCHEWAN 35 have been developed to estimate these expenditures. “People attending a national conference spend an average of $300 per day, while those attending an international conference will spend more, approximately $500 per day. International conferences also generally last longer, making them even more lucrative to host.”
In addition to the direct economic impact of hosting these events, there are other less quantifiable benefits. Alex Fallon, CEO of Saskatoon Regional Economic Development Association (SREDA), explains, “Business that results from an event in terms of buying, selling and partnerships are economic benefits which are difficult to measure.” Peters adds, “It is hard to judge the economic impact of an event because it can take many years to develop.”
According to Steve McLellan, CEO of Saskatchewan Chamber of Commerce, the primary intangible benefit to hosting business events is showcasing the community, which attracts people
36 BUSINESS AND INDUSTRY SASKATCHEWAN of the best volunteers in the world with a tremendous work ethic,” states Vassos. “This is combined with lots of corporate sponsorship and great event organizers.”
This community support encourages local industries and businesses to host events here, such as Agribition and Canada’s Farm Progress Show, while also serving as an incentive to non- local organizations. “We have to market our strengths and uniqueness,” stresses Fahlman. This is all done through a combination of creative and targeted to visit or move to the province, as well heard of Saskatchewan,” explains Peters. promotional campaigns in print, online as to do business and attend school When Peters is trying to attract an and in market both within and outside here. “Many conference delegates are international event to Saskatoon, he the province. first time visitors,” notes Fallon. “When begins by promoting Canada and our they return home, they tell other people reputation as a friendly, progressive Conferences, conventions and consumer about their experiences here, potentially country. From there, he increasingly shows, as well as sporting and cultural inducing them to visit as well.” Lee adds, narrows the focus to the province and events, are becoming increasingly “Conventions are especially important then the city. “Many people are unaware big business, drawing immediate and for markets that aren’t traditional tourist of what Saskatchewan has to offer and it potential future economic growth to destinations. Industry development and is my job to show them,” he says. the locations where they are held. It is tourism are closely integrated.” especially important for smaller markets “The strength of the Saskatchewan such as Saskatchewan to attract such How businesses and organizations go economy and the growing population events. A large number of businesses, about attracting different events to are both factors which help to bring organizations and individuals across the province depends on the type of events to the province,” states Fallon. the province are working hard to do event. Whether the event is national “Saskatchewan has a lot of key sectors and just that with dozens of bids being made or international is a key factor. “All this diversity is attractive.” Community every year. Saskatchewan’s economy will Canadians know something about involvement is another area in which the continue to thrive as more events are the province, but few foreigners have province excels. “Saskatchewan has some brought to the province.
BUSINESS AND INDUSTRY SASKATCHEWAN 37 .
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2015: Year of the Mobile Website
Google is also pushing the trend. established website, or one with a very Starting back in January, Google started custom layout, responsive can be time- promoting websites that are mobile- consuming and costly. In this case, it’s friendly above those built for desktops. better to go with an Adaptive Website ink about this: Google’s products are Design (AWD). your websites. eir clients (who are also your clients), are those searching on Adaptive Website Design is where we their network. Google wants to deliver build a separate set of templates for your a great experience to their customers. mobile site. is is best if you have a lot of So, if a customer with a mobile device content, an intricately designed website is using their search network, they want or if you have an ecommerce website to deliver a proper mobile experience to with a lot of products. With an AWD, we those customers. It makes sense right? can build a completely di erent template ey will slowly start lowering search and load that in place of the desktop rankings for websites if they are searched version. It can have its own look and you on a mobile device and aren’t mobile- can customize the content a bit more to Jason Orban friendly. suit your mobile users’ needs. Think Big Studios Of course, we want to keep our search Updating both Responsive and Adaptive 1651 – 11th Avenue placement, and we want to make a good website designs can be done through Regina impression on our customers, so we your CMS, and in most cases it can 306.205.5048 or need to be mobile-friendly. It’s simple. use the same content, saving you from 1.877.505.2835 managing two separate installations. What to Ask For. [email protected] Mobile websites are now a requirement www.thinkbigstudios.ca ere are two ways of getting mobile. when developing your online advertising. ey’re not going away, and e rst is with a Responsive Website as smart phone usage increases, mobile Design (RWD). is is a website built so websites will be a requirement your the content and graphics ex and shi customers will expect. to suit the device on which it’s being displayed. is is usually easier to do For more information on mobile f you’re building a website this when rst building a website or if you websites and how you can get Mobile, year or already have a website, have a simple website layout. Making an visit www.thinkbigstudios.ca/Mobile. it’s a safe bet you’re going to want it to be mobile-friendly. Let me tellI you why.
Last year, 40 per cent of online purchases and 80 per cent of pre-purchase research were conducted on a mobile device. at’s a huge number to being missing out on. With some of our clients, we’ve seen mobile website tra c increase up to 50 per cent of their total visitors. Of course, this depends on their industry and their market, but it’s not uncommon to see that 20 to 25 per cent of visitors coming from mobile devices.
40 BUSINESS AND INDUSTRY SASKATCHEWAN
[ SCIENCE & TECHNOLOGY ]
Biomedicine Worth its Weight in Nanogold
Article And Photos courtesy cAnAdiAn light source Peng Zhang is excited about gold, and you should be too.
n particular, he’s excited about can even drink gold, and you can even nanogold, structures of a handful find certain alcohols with gold in them.” of atoms measuring only a few nanometers in diameter. Zhang, It’s also incredibly stable. It doesn’t rust, I since its oxidized or rusted form is less a researcher at Dalhousie University, and Canadian Light Source synchrotron stable than unadulterated gold. Decaying bridge joints and the green Lady Liberty user, has a unique understanding of the speak to just how rare a stable metal potential nanogolds have in biomedicine is. Combining those two properties and beyond. For one thing, gold is in biomedicine means that you could essentially non-toxic. Unlike other use gold without worrying about the metals, people can and do eat it on treatment losing its effectiveness or chocolate, and as Zhang points out, “You hurting the patient.
42 BUSINESS AND INDUSTRY SASKATCHEWAN % 99 per cent purity for 99 the gold clusters. caused by shift s of one or two atoms. Th at such minuscule variations actually caused changes in the electronic behaviour of gold was something of a surprise. For one thing, researchers have only recently been able to reliably produce gold nanoclusters with specifi c numbers of atoms, making specifi c observations infuriatingly hard to come by. For another, most nano tech applications would treat variations of a couple of atoms in a cluster as a negligible variance.
Not so for gold clusters with a few tens of atoms. A cluster of 36 gold atoms has a completely diff erent structure than a cluster of 38 atoms, with vastly diff erent electron densities, making each appropriate for diff erent types of catalytic reactions. “It was a very big surprise to us, and it’s useful, because if you tailor the composition, you can very effi ciently control the properties,” Zhang says.
Only by harnessing new techniques to produce incredibly uniform samples of single-size gold clusters and observing their individual properties and structures was Zhang’s lab able to start cataloguing the variety of properties of PreVious PAge Peng Zhang, canadian light source. ABoVe schematic illustration of synchrotron X-ray this nano wonder. In this regard, Zhang’s spectroscopy studies of gold-thiolate nanoclusters. Figure courtesy of the Journal of Physical chemistry. collaborators, such as Rongchao Jin from Carnegie Mellon University, can achieve Zhang’s team believes nanogold could XAS (X-ray Absorption Spectroscopy) higher than 99 per cent purity for the be a good fi t as a catalyzing agent, and XPS (X-ray Photoelectron gold clusters. something that speeds up other reactions Spectroscopy), techniques available on without getting used up itself. Due to several CLS beamlines and its partner As the team continues to explore how the extremely small size of nanogolds, beamlines in the United States. they can tailor and refi ne gold nano they were recently found to be effi cient structures, they’re also looking into catalysts for converting toxic gases Zhang has been using the CLS for ways to harness other noble metals into nontoxic ones. Plus, nanogold’s his research since he was a student in combination with gold. Silver and incredible stability gives it an advantage himself, under founding CLS researcher platinum, both valuable metals and over other metal-based catalysts, which TK Sham. Since then, the facility has with interesting medical and catalytic tend to have shorter lifetimes. become a go-to for him both for the potential in their own right, could relationships he’s built and the excellence reveal new potential using the analytic To harness nanogold’s potential, of its available techniques. “When we techniques used by Zhang’s team. researchers have to make sense of its need low energy X-rays, we always come structures and behaviours, which are in to the CLS. Th e Canadian synchrotron Next up, Zhang plans to look into gold many ways completely diff erent from is particularly good in low energy X-ray and metal composites, to understand those of typical chunks of gold. Th is techniques,” Zhang explains. how these structures work. Th e team brings up another way in which gold is also remains committed to examining unique: you can’t use the same techniques Using these synchrotron techniques, potential biomedical applications you would to study it as you would other Zhang’s research team is able to fi nely for their work, in collaboration common elements such as carbon or model the electronic structure of the with biomedical researchers from nitrogen. Instead, researchers rely on nanoclusters, noting variations in Dalhousie University and Halifax X-ray based spectroscopy, specifi cally structure and properties of the clusters Infi rmary Hospital.
BUSINESS AND INDUSTRY SASKATCHEWAN 43 [ SCIENCE + TECHNOLOGY ]
The Rise — and TRiumph — of The smaRTphone
44 BUSINESS AND INDUSTRY SASKATCHEWAN The Rise — and TRiumph — of The
smaRTphoneby brook ThalgoTT Less than 20 years ago, a mobile phone was just a phone. Enter the “personal digital assistant age” in the late 1990s where phones started to become more than just phones. rIM ran with the idea a phone and PDa could become one, and in 2003, the blackberry took off: a phone and camera with email and web built right in.
martphones were on their cent while commuting. And, these aren’t “let’s way to taking over the mobile kill time” searches either — they are intent- phone market when iPhone hit driven, product-related searches happening S in 2007. Today, smartphones in locations businesses may not consider are in the hands of more than half of all relevant. As technology marches forward, Canadians, permanently changing the way customers demand even more timely and we communicate, work, play and shop. This relevant communication. Businesses have to shift to constant connectivity has totally be there when customers demand it. overhauled the way we do business. Whether it’s marketing or IT or human resources, every With the web accessible from almost business has been touched by this device. everywhere, businesses need to be online with the information customers need. Canadians turn to their smartphones every Customers are reading reviews and day to conduct their work, home and social checking prices while shopping; 70 per cent lives, using them for the weather forecast, have used their smartphone to search for headlines, sports scores, social media, staying product information while in a store. While connected to friends, family and work — and customers are actively seeking product vitally important to business — researching information, they aren’t always thrilled purchases and shopping online. with the results. Catalyst/GroupM Next finds that when it comes to searches, 33 per According to 2014 research by Catalyst and cent of smartphone users aren’t happy with GroupM Next, 65 per cent of Canadian results for product prices, 30 per cent aren’t smartphone users have used their devices to satisfied with product reviews, 29 per cent are search for product information while standing unsatisfied with local business information in line, 65 per cent while eating, and 60 per and 25 per cent come up wanting on searches
© Manaemedia | Dreamstime.com - Apple Space Gray IPhone 6 Plus Photo
BUSINESS AND INDUSTRY SASKATCHEWAN 45 65% of Canadian smartphone users have used their devices to search for product information while standing in line, 65 per cent while eating, and 60 per cent while commuting.
for product features. Compare this to The smartphone has also paved the only nine per cent of customers who way for the app. Sixty-nine per cent 58 per cent use an app to check stock quotes; say searching for news and weather of smartphone users use an app 70 per cent use apps to check bank accounts information is unsatisfying. Making rather than a web browser to read a great web experience better can pay emails; 58 per cent use an app to off; 58 per cent of consumers say they check stock quotes; 70 per cent use recognize search ads they see on their apps to check bank accounts and 86 smartphone, and of those, 50 per cent per cent use the app for Facebook. say a search ad has helped them find Apps can provide customers with the information they needed. a better mobile experience, if the app is user-friendly and provides Knowing customers are doing relevant, timely information. research on their smartphones is the first step to meet their demands. Businesses have to consider the user 86% If a customer is researching your experience behind using an app or a business, the experience has to be web browser before wading into app use the app for Facebook a good one. Catalyst and GroupM development. Ease of navigation, Next found smartphone users can availability in the app store and good become very frustrated with their word-of-mouth are important to mobile experiences. Top frustrations customers before they install an app. include load times, bad mobile sites Apps have to be functional, useful and too much typing; these three and easy to find before customers will things add up to 70 per cent of the commit; half of smartphone users pain points for customer browsing. uninstall apps because they don’t use Plus, savvier users — those who have it, followed by 18 per cent indicating owned a smartphone for two or more poor functionality. Apps have their years — are 50 per cent more likely place in the mobile marketplace if to be frustrated by a bad mobile they meet customer demands. website than people who have owned a smartphone for less than two years. Customers are in charge now more Since today’s smartphone rookie is than ever, and businesses and brands tomorrow’s veteran, it’s important have to provide a relevant, seamless, to take these frustrations seriously. pain-free experience to compete. Do 1/2 Not only do you have to be on the that, and customers will come, stay of smartphone users uninstall apps web and searchable to connect with and recommend. because they don’t use it, followed by customers, you also need a seamless Source: catalyst.ca/2014-canadian- 18 per cent indicating poor functionality. mobile web experience. smartphone-market/
46 BUSINESS AND INDUSTRY SASKATCHEWAN Workers_Comp.Athabasca.Catering.qxp_Layout 1 2015-03-20 10:42 AM Page 1
www.worksafesask.ca www.safesask.com I BELIEVE IN MISSION: ZERO
There are financial benefits for having a good safety record, but that’s not why we invest in safety. You can’t put a price on a person getting hurt or on the cost of living with an injury. Our goal is a safety culture where everyone from our newest frontline workers to the most senior management are all truly living and bre athing safety and putting safety first in every task – at work or home. When we all consistently eliminate the little hazards, we prevent the big injuries. That’s how we achieve Mission: Zero. Ray Edwards, Chief Operations Officer “ Athabasca Catering Limited Partnership
Join the Mission: Zero movement by signing the Saskatchewan Health & Safety Leadership Charter. Call 306.352.3810 or email [email protected] for more information. ” [ ENVIRONMENT ] Testing at temperatures up to 250°C, allows the system to simulate SAGD 250°C field conditions.
SRC PIPE FLOW TECHNOLOGY CENTRE EXPANSION PROJECT COURTESY SASKATCHEWAN RESEARCH COUNCIL
he oil and gas industry is a key sector of both the mining-based extraction. All these fl uids are transported by Saskatchewan and the Canadian economies. In fact, pipeline at some point in the process, but reliable data that could Canada now has the third largest reserves in the be used to design these pipeline systems has been lacking. world thanks to various leading-edge technologies developedT over the past couple decades. Piti Srisukvatananan, research engineer at the Saskatchewan Research Council, says this dilemma created a need for a test With the conventional oil pools in both Saskatchewan and loop that can handle hazardous and explosive materials such Alberta becoming mature, this has led to the application of as heavy crude oil and bitumen. “Canada has huge heavy oil diff erent enhanced oil recovery (EOR) methods which use solvent reserves and oil sands deep underground where surface mining and steam to achieve higher oil recoveries from mature fi elds. In is not a viable option. Industry is interested in improving their addition, the growth in steam-assisted gravity drainage (SAGD) understanding of pipeline fl ows involving complex mixtures technology — an EOR method that uses steam to separate oil of heavy oil or bitumen combined with steam, solvent or both, from the sand in the well — in the oil sands is poised to outstrip which are encountered during in-situ production methods.”
48 BUSINESS AND INDUSTRY SASKATCHEWAN The Saskatchewan Research Council’s (SRC) Pipe Flow Technology Centre™ expanded its facilities to include these capabilities at the new Shook-Gillies HPHT Test Facility. This Class 1, Division 1 building is capable of handling volatile materials and is equipped with a four-inch diameter Class 600 ANSI flow loop. The system is designed to test industrial conditions, including multiphase flows from enhanced oil recovery projects involving solvent or steam.
SRC has more than 55 years’ experience in research, development and demonstration in the area of transportation of complex mixtures. SRC’s Pipe Flow Technology Centre™ is acknowledged as an international leader in its field and has collaborated with Canadian and international clients on a range of ground- breaking pipeline and fluid mechanics applications. Serving the oil, gas and mining industries, the Centre helps resource industries expand the horizon of how and when they operate.
Srisukvatananan says SRC was really well-equipped to handle this expansion: “We have the facilities needed, but more importantly, we have experienced staff who have been involved in slurry transport for many years, both with testing and modelling. With the right tools and the right people, we believe we can help industry and community push the envelope and scientific boundaries.”
The expansion complements and builds on SRC’s growing expertise and capabilities in slurry transport and enables SRC to support the oil and gas industry with a broader range of services including: • Testing at temperatures up to 250 C, which will allow the system to simulate SAGD field conditions • Testing at pressures of up to 1,400 psig, to reproduce conditions that may be seen in sales pipelines • Testing mixtures that include volatile materials, including light crude oil and solvents, to mimic flows involving produced fluids from enhanced oil recovery projects • Testing of complex mixtures that involve slurries with volatile components, such as the complex mixtures involved in oil sand solvent extraction projects
“These capabilities will allow the oil and gas industry to do large-scale testing at elevated temperatures and pressures, where available data is limited, as well as testing of volatile materials,” says Srisukvatananan.
The new capabilities of this facility will allow SRC to continue to break ground in slurry pipeline research and, at the same time, support the continued development of Canada’s oil, gas and oil sands industries.
The $3.19 million expansion was funded through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA) and by SRC.
BUSINESS AND INDUSTRY SASKATCHEWAN 49 [ LEGAL ]
Weather Delays Using Force Majeure Clauses in Contracts By Bruce Harrison researcH By DaviD J. ukrainetz, stuDent at Law
uthor Kim Hubbard once factors through the cumbersome concept Force majeure clauses can be drafted quipped, “Don’t knock of force majeure. Force majeure (meaning with significant variations, but almost the weather. If it didn’t “superior force”) is a French legal doctrine invariably focus on events which are A change once in a while, that arose out of the shipping industry “unforeseeable” and “beyond the nine out of 10 people couldn’t start a to address delays caused by heavy seas, reasonable control of the parties.” This is conversation.” Despite the countless shipwrecks, war or other uncontrollable typically clarified by a list of events such number of observations made each events. Force majeure is commonly as acts of war, riot, terrorism, strikes, day, we are still somehow surprised by used in contract law because the parties floods and more. Parties claiming relief weather changes. This is of particular can simply suspend obligations for the due to force majeure are often required to significance in project development and duration of the force majeure event, give immediate notice of the condition at supply contacts, where delays can cause rather than terminating the agreement its outset to avoid a party from claiming thousands of dollars’ worth of downtime and missed opportunities. or holding a contractor absolutely it in retrospect to account for their responsible for its performance, which performance delays. If the parties agree In trying to allocate scheduling risks, would no doubt require a risk premium the event constitutes force majeure, the parties typically account for external to be factored into the contract price. project schedule is extended by the length
50 BUSINESS AND INDUSTRY SASKATCHEWAN an objective standard for weather at the location of the work. Environment Canada maintains a database of historic measures for temperature, rain, snow and wind over hourly, daily and monthly intervals at various locations across Canada. The statistical analysis of this data is used to determine the likely recurrence of certain weather phenomena, which is where we get terms such as “50 year weather event.” Parties that account for weather in this manner must still negotiate a reasonable level — such as a 25, 50 or 100 year event — but using an objective measure minimizes the element of uncertainty.
Just where the standard ought to be will take some time, but government and insurance standards for new infrastructure may lead the way. Drainage systems, bridges, haul roads and power lines are all designed with certain metrics to withstand extreme weather without affecting performance. It is a good bet if the infrastructure cannot keep up with a particular weather event, contractors will not either. As we have also seen, where government and insurance go, industry often follows.
This article presents a summary of information and does not constitute legal advice.
of the event. In some contracts, a force in characterizing weather-related force majeure event that causes excessive delay majeure as an “event,” since moderate (90 days or longer) can be cause for either precipitation any one day is not an issue, party to terminate without penalty. whereas moderate precipitation every day for a month likely is. Weather delays often create disputes because opinions differ on what severity These issues are compounded, for lawyers of weather is foreseeable. Furthermore, a at least, by a lack of judicial guidance. Bruce Harrison is an associate in Saskatoon party may be able to mitigate abnormally Most major project agreements include where he practices all areas of corporate hot, cold, wet or windy weather over the arbitration clauses, which require and commercial law. David Ukrainetz is short term, but in periods of extended the parties to resolve their disputes a student at law in the Saskatoon office extremes, the parties may not realize through arbitrators who do not publish of McKercher LLP. His interests include conditions are insurmountable until they their decisions. One approach gaining business and corporate law. are. In this case, the immediate notice acceptance among contract drafters obligation has been missed. The latter is to reference historical weather data Bruce Harrison scenario also illustrates the difficulty and statistical distributions to establish Associate, McKercher LLP
BUSINESS AND INDUSTRY SASKATCHEWAN 51 [ FINANCE ]
DATA MINING TO ACCELERATE MID-MARKET BUSINESS GROWTH AND REDUCE BUSINESS FUNDING REQUIREMENTS
BY PHIL SYMCHYCH
In mining, valuable commodities are found in veins beneath the surface. The same applies to your business data. Your most profi table information is found in areas hidden beneath the level of your fi nancial statements. In fact, analyzing product/service lines and individual transactions will show you where the gold is buried.
ne of the most common on your internal monthly nancial product or service line. is will show mistakes accountants statements to show product/service line you which parts of your business are the make in preparing year- detail including sales, costs of sales and big contributors of pro ts and which O end nancial statements gross pro ts. What do your nancial aren’t. What are your most pro table statements tell you about your business? is lumping all revenues onto one line. product and service lines? Do you External users have di culty evaluating At a minimum, your nancial statements have any losers chewing up resources your business performance. You need should show the gross pro t dollars and cash? What if you allocated those much more power and exibility and gross margin percentage by major resources to the stars?
52 BUSINESS AND INDUSTRY SASKATCHEWAN activity. What are the daily hours worked fuel your business growth internally. vs. billed percentage? How e ciently Ultimately, your best growth strategy (and ruthlessly) are you charging for all is to proactively help your customers time and materials? increase their success; just be sure to measure it. In manufacturing companies, measure daily productivity and shipped on time. How are you mining your data to create What is your daily production volume gold for your customers, accelerate and daily shipped on time percentage? your business growth and reduce your How can you improve them? business funding requirements?
Mining your data daily will accelerate your business growth and pro t improvement. An integrated management information system that tracks daily activities and costs is critical to business growth.
e nal level of mining your data is to assess and quantify the economic results you create for your customers. In other e next level of detail — the transaction words, it’s about your business strategy. analysis — is even more important. One company that repaired equipment Unfortunately, some accounting for its customers that consisted of departments may be too busy to create Fortune 500 companies determined their this information. Or, the managers aren’t optimal economic value wasn’t in xing asking for it because they don’t know broken equipment. it’s available. Measuring transactions depends on your industry. eir unique, powerful economic value was understanding, quantifying and Phil Symchych CPA, MBA is the president In construction with xed price proactively recommending how their of Symco & Co., author of Phil’s Pro t contracts, measure the daily project customers could maximize equipment Points, co-author of the upcoming book activity transactions. Are you receiving uptime, increase revenues and enhance called e Business Wealth Builder daily project job costing comparing ROI. e customers loved the strategic and an expert in maximizing business hours budgeted vs. expended and against value at higher rates for the company and valuation and wealth for closely-held milestones? higher ROIs for their customers. businesses. For more information, go to www.symcoandco.com. In service companies that charge time Mining this data will reduce your business 306.992.6177 and materials, measure daily project funding requirements because you will [email protected]
BUSINESS AND INDUSTRY SASKATCHEWAN 53 [ FINANCE ]
Why Travel Insurance? id you know that treating a and protecting yourself. An informative Most people look at travel insurance as case of swimmer’s ear in a website to refer to when preparing an option when it should be viewed as foreign country can cost $600 yourself for travel outside of Canada is a necessity, like your passport. Just like to $700? Or that a hard fall D travel.gc.ca. There are checklists and getting your shots to protect against while skiing could cost $1,400 in care? diseases in foreign countries, insurance tips to ensure your vacation is what it is Or if you require surgery or have a stroke should be a priority. With comprehensive meant to be, stress-free and fun! There while travelling out of country it could run travel insurance you are covered 24/7 is even a free registration service to give you over $100,000? from the high cost of medical care in you easy connection back home in case other countries. Most travel insurance As a Canadian traveller we are told to be of emergency. pays directly to the hospital or clinic so well-prepared from your valid passport to you don’t have to worry about paying your up-to-date inoculations. Whether Nothing compares to relaxing and these expenses out of your pocket. you are a first timer or a seasoned unwinding during vacation. But what This saves you from a financial burden snowbird, there is a wealth of information happens if you are not properly prepared when returning home from an already online in regards to travelling abroad and you get sick or injured? stressful situation.
The Briske Financial Group, Assante Financial Management Ltd. www.thebriskefinancialgroup.com Never rely solely on your provincial financial situation please contact us, plan to cover you as coverage is limited. Byron or Shannon, to review your needs Supplemental travel insurance ranges in and recommend a product to fit your cost depending what it is covering, your circumstances. As financial advisors it is age and the benefits you choose. There our job to look beyond your investments are several companies that offer travel and protect your wealth from the insurance with variations in the plan unexpected. From travel insurance to structure and costs. These options can be life insurance, critical illness to disability confusing. Make sure you ask questions insurance, we are here to help you Shannon and Byron Briske of to ensure you know what you are protect the wealth you have worked so Assante Financial Management covered for. Pre-existing conditions may hard to accumulate. Ltd. continue to host regular be covered if the condition is stable and Travel safe! business luncheon seminars at controlled. It is essential to review your CUT restaurant. For upcoming policy in detail and understand how the Byron and Shannon Briske are senior dates and seminar topics, clauses will affect you and your pocket financial advisors with Assante book. It is important to carry details of Financial Management Ltd. Please please contact the office at your medical insurance with you when contact them at 306.665.3244 or visit 306.665.3244. This series focuses you travel as well as leaving a copy with a www.thebriskefinancialgroup.com to on many aspects of the business friend or family member at home. discuss your particular circumstances but especially business ownership prior to acting on the information above. and the potential challenges and Let us help protect you. If you would like Insurance products and services are opportunities that are present in to discuss your travel insurance needs provided through Assante Estate and today’s marketplace. or anything else regarding your personal Insurance Services Inc.
301 - 500 Spadina Crescent, Saskatoon | 306.665.3244 Main Street, Kindersley | The Forestry Centre, Prince Albert
EXPERT
ADVICE
ADVICE BARTERING EXPERT
How Bartering Improves Business Cash Flow
e estimated cost of the renovation spend your cash dollars, they are gone. is $30,000. Gi cards can be sold to You have no guarantee the person or the trade exchange in return for barter business you gave them to will support currency, or TRADEdollars. is your business in return. Barter solves actually costs the business nothing to that problem by forcing reciprocal do (currently) because the restaurant business back in your door. Every time isn’t yet open. is is a $30,000 cash you spend money with another member, equivalent injection into the business’ you are guaranteed an equal amount of cash ow. Now, the barter credits can business in return. be spent before spending cash on things such as stacking stone, blinds, plumbing, If you have any questions, I’m here to help. electrical, ooring, duct cleaning, Dan, the Trading Man: 306.596.8502. drywall, painting and cabinets. When the restaurant re-opens, recipients of the Dan Benesh gi cards start coming in. When they do, there is a food cost (cost of goods Tradebank Regina sold), but any overspend or breakage [email protected] (gi cards unredeemed) is recouped. It 306.596.8502 takes usually six to 12 months for full redemption.
Example 2: Sunk Costs
When a retail store has already purchased items, this is referred to as sunk costs. Bartering can help recover sunk costs on remaining stock to put cash back into new stock that will turnover faster. Here’s how: Let’s say a tness store has many oor models and in-stock units that have already been paid for. Cash ow is being a ected with money going out for advertising, printing and typical misconception of delivery/shipping of items. Joining a barter is that it hurts your barter network allows for shipping to cash ow because you don’t be paid for using TRADEdollar credits. get cash in return for your For every 2,000 credits spent, the trade productsA or services. ere are many is a unit that is worth $2,000 retail, but creative ways to use a barter network’s costs much less from the supplier (cost services to improve cash ow. of goods).
Example 1: Renovation In both of these examples, barter is used smartly to improve cash ow, make new A restaurant is going through a connections in your city, and drive more renovation and needs to close for sales back to your business. More o en three weeks to make improvements. than not in the cash world, once you
56 BUSINESS AND INDUSTRY SASKATCHEWAN
EXPERT
ADVICE
ADVICE RECRUITMENT EXPERT
What type of leader are you hiring?
• ey lose their very best team provides a comprehensive candidate members due to lack of growth pro le and enables our consultants to opportunities. provide concrete data on a variety of • eir team loses trust in them. skills and capabilities, including: • e leader is not able to adapt to urgent and real business pressures. • Managerial and leadership style • Level of defensiveness Ultimately these realization can • Emotional intelligence and lead to company failure. Ensuring self-awareness defensive people do not make it into an • Competitiveness organization starts by si ing them out • Decision making skills during the hiring process. • Drive and determination
Key questions to identify a defensive Finally, you wouldn’t buy a house without leader in an interview process are: an inspection, so why hire an employee without a reference check? Reference Jacqueline Gallagher • Where and what type of mistakes do checking is a critical component of the you make? VICE PRESIDENT assessment and selection process. Many • What are the moments when you have past employers will only provide basic David Aplin Group been less than proud of your results, information about their ex-employees, Saskatchewan and why? such as con rming job title and dates of 306.665.1382 • What decisions have not worked for employment. Here are some guidelines [email protected] you previously, and why? for soliciting useful information: www.aplin.com • What is the worst trait I will nd out about you when I thoroughly check 1. Provide general background your references? information about the job the candidate is being considered for If the candidate does not have any without using the words “reference,” feedback that would be construed as “strengths” or “weaknesses” which can constructive or negative they are either generate reluctance. lying or actually believe what they are 2. Keep the tone conversational, not saying to you. It is critical to identify interrogative. these individuals before they become a 3. Start with questions that solicit “yes” ociety has become rather part of your team. and “no” answers. en probe with adept at the “blame game.” open-ended inquiries. Are you identifying leaders David Aplin Group utilizes the 4. Use information provided by the who will admit their psychometric instrument called TAIS candidate. For example, read verbatim Smistakes? Admitting mistakes is not a ( e Attentional and Interpersonal Style the description of duties from the sign of weakness; in fact, it is quite the Inventory) developed by Dr. Robert candidate’s résumé and ask if it’s opposite. Admitting one’s mistakes takes Nide er, one of the top 10 psychologists accurate. self-insight, awareness, courage, rational in the world. TAIS is not a test of skill 5. Don’t ask questions that require intelligence and sound judgment. or intelligence but rather a tool designed blatantly subjective answers. to measure abilities believed to be 6. Avoid legally sensitive topics. A defensive leader can result in important determinants of performance disastrous consequences for a business: across a wide variety of competitive rough our rigorous assessment and and interpersonal situations. When interview process, David Aplin Group • Personal growth is stunted for the consensually validated and integrated ensures you bring onboard only those who leader and those reporting into them. with interview and reference data, it will positively impact your business.
BUSINESS AND INDUSTRY SASKATCHEWAN 57
EXPERT
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ADVICE FINANCE EXPERT
Income & Growth: Two Sides to Your Portfolio
and mortgage backed securities. e owners of the company. As the company second type of income is derived grows, pro ts are reinvested in the through ownership of common and company, which can cause the shares to preferred shares and income trust units increase in value. that distribute company pro ts in the form of dividends. ere are two primary risks to consider with common shares. e rst is With income investments, there are market risk. e market price of your income tax consequences to bear in investment will tend to uctuate with mind, as well as two types of risk. e the stock market as a whole, even if there rst is interest rate risk. Once you are have been no material changes in the locked into a rate of interest for a certain company whose shares you own. term, you risk the chance that market Sheldon Gray, CIM, CFP rates might rise and the rate you are e second type of risk is speci c to Director, Portfolio Manager earning may no longer be competitive. the company itself. If your investment e longer the term of your investment, portfolio consists of only stocks that are Scotia MacLeod dependent on the petroleum industry, 305-3303 Hillsdale Street, Regina the greater the interest rate risk. 306.761.6512 for example, any decline in oil prices will www.thegrayteam.ca e second risk is credit risk: the a ect the value of your entire portfolio. possibility your principal will not be repaid or the issuer will default on All of the above risks can be minimized interest or dividend payments. e risk by diversifying you investment dollars can be minimalized by investing in high among income and growth, among a quality instruments from secure issuers. number of di erent securities and even a variety of markets around the world. Growth Can Build Wealth e Gray Team at ScotiaMcLeod has our investments can provide Investing for capital growth is vital not the knowledge, resources and team of returns in the form of either only to build wealth, but to protect your experts to help you determine the right income or capital growth. capital from taxes and in ation. mix of income and growth for your e decision to opt for one portfolio and to implement a diversi ed Ysource of return over the other normally e most popular growth investment strategy that carefully balances the risks stems from your tax situation, your is common stock. Investors purchase and rewards. immediate requirements for cash and shares in a corporation and become part your long-term objectives. Here are some of the unique risks and rewards associated with investing for income and capital growth. Regular Income Can Provide Stability
ere are two primary ways to earn income: lend your funds to a borrower in return for interest (and eventual return of your principal) or own shares that produce dividends. e rst type of security is o en referred to as “ xed income” and includes bonds, debentures
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100 – 2723 Faithfull Ave, Saskatoon | Mon-Fri: 8 am to 5 pm | 306.244.6705 | www.wirelesscityinc.com [ PHILANTHROPY ] PRAIRIE PROUD
GIVESBY MELANIE FURLONG BACK PHOTOS COURTESY OF PRAIRIE PROUD
60 BUSINESS AND INDUSTRY SASKATCHEWAN CLOCKWISE PGA golfer, Graham DeLaet, sports a Prairie Proud cap; Country music stars, Doc Walker, wearing Prairie Proud; Owner Cole Thorpe presenting charitable donation
ust before his June 2014 The clothing line carries hoodies, One of those was PGA golfer Graham graduation from the Edwards t-shirts, crew sweaters, toques and tank DeLaet, of Weyburn, SK. “When I asked School of Business at the tops, each with a Prairie-themed motif him [to model the clothing], he said ‘yes, J University of Saskatchewan, Cole such as a bundle of wheat, pumpjack or I’m the definition of Prairie Proud.’ ” Thorpe launched Prairie Proud Apparel, buffalo. It has been a great success across a clothing line that celebrates his passion the region and beyond with online sales Thorpe relies heavily on social media for the Prairies and allows him to give from every province in Canada and to market the business and uses photos back to a region he says has been very many customers outside the country. of Prairie Proud wearers in his social good to him. media channels to tell their stories. “There’s a lot to be proud of in coming At the time of interview, Thorpe was Thorpe’s goal is to combine regional pride from the Prairies,” says Thorpe, who preparing to launch his first storefront with corporate social responsibility. comes from the tiny village of Spy for Prairie Proud next to Saskatoon’s The concept is an extension of his Hill, SK, pop. 150. “We have a unique Farmers’ Market, initially to open personal value set, which focuses on culture and our farming, oil and Saturdays and Sundays. He hopes to passion, community and quality. With mining industries all make important eventually capitalize on interest from each purchase, a charitable donation contributions to the country’s economy. approximately 30 different retailers in is allocated to an organization in the Wearing Prairie Proud allows individuals the Prairie provinces. Prairie provinces — either to the to show their passion for the area while province where the purchase was made, investing back into it.” Right now, Thorpe receives weekly or if purchased online, to the province emails from businesses interested in of the buyer’s choice. Since Prairie Throughout his university years, Thorpe potential partnerships. “That was part of Proud launched, 24-year-old Thorpe has developed a wide variety of contacts the plan, but not this early on,” he says. already made donations to the Children’s across western Canada. “I reached out “Down the line, I am hoping Prairie Hospital Foundation of Saskatchewan to individuals I thought would buy into Proud’s partner businesses will want to and the Alberta Cancer Foundation. the concept and who were proud of make a matching donation to a charity He hopes to make a third donation to their Prairie roots. Some were people of their choice, tying into that passion, the Children’s Hospital Foundation of who grew up in the Prairies and who’d community, quality piece that’s at the Manitoba in coming months. become successful in different areas.” heart of Prairie Proud.”
BUSINESS AND INDUSTRY SASKATCHEWAN 61 GIVING YOU Your Time Back
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1600–8th Avenue, Regina | 306.525.9125 www.parklandcarpetoneregina.com Welcome to Executive York Properties For your short or extended stays in Saskatoon, York Executive Properties offers a leading alternative to hotels. Whether temporarily assigned on business, or relocating and need a place to stay, you can feel at home away from home in a beautiful, contemporary suite in the heart of the city.
York Executive Properties offers fully-furnished, spacious one or two bedroom suites featuring several amenities to ensure a comfortable stay, including: • fully equipped kitchen • in-suite washer and dryer • housekeeping services • workspace with free Internet access and cable TV • surface or underground parking • fitness club access Please contact us at 306.229.9098 for reservations or for more information on how York Executive Properties can help make your stay in Saskatoon an effortless and hassle-free experience.
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Decks • Balconies • Patios • Stairways CElEBRATiNG 20 YEARS Of SuCCESS: May 7 & 8 TCu Place, Saskatoon Honouring the Past & Celebrating the Future
Women Entrepreneurs of Saskatchewan is proud to announce our 2015 Annual Business Conference: “Honouring the Past & Celebrating the future”. This dynamic event will empower and educate with inspiring keynotes, practical tools, offer tips for innovation and success, while providing valuable networking and mentorship opportunities. 2015 KeYnote SpeaKeRS:
Rachel Mielke Greg Yuel Christine Hrudka CEO of Hillberg & Berk President & CEO of PIC Investment Group Inc. Owner of Pharmacy First “life Through the Kaleidoscope” “Building Your legacy – “Roadmap of an Entrepreneur – Through Your Business” What is Your Next Opportunity?”
Gems of Saskatchewan – Panel Discussion Moderated by Trish Cheveldayoff, Owner of Trish Cheveldayoff Communications & Consulting ConfeRenCe at a GlanCe: thursday, May 7 friday, May 8
6:30 p.m. Networking & Cocktail Reception (Appetizer & Cash Bar) 8:00 a.m. Breakfast & Networking 7:30 p.m. Welcome & Opening Remarks 8:20 a.m. Opening Remarks 7:35 p.m. Greetings on behalf of Western Economic 8:30 a.m. Keynote Speaker – Greg Yuel, President & CEO – Diversification Canada PiC investment Group inc. 7:45 p.m. Greetings on behalf of our Platinum Sponsor 9:50 a.m. Keynote Speaker – Christine Hrudka, Owner – 7:50 p.m. Keynote Speaker – Honourable Jennifer Campeau, Pharmacy first Minister of Central Services 11:00 a.m. Annual General Meeting 8:20 p.m. 20th Anniversary Toast 12:15 p.m. luncheon & Panel Discussion “Gems of Saskatchewan” 8:30 p.m. Closing Remarks 2:30 p.m. Keynote Speaker – Rachel Mielke, CEO, Hillberg & Berk 3:30 p.m. Closing Remarks Don’t miss out! Register now to reserve your spot. Attendance is limited. Please visit www.womenentrepreneurs.sk.ca. Conference Presented in partnership with:
Women Entrepreneurs of Saskatchewan inc. is a non-profit membership organization supported by Western Economic Diversification Canada that works with women who are considering starting a business, purchasing a business, or who are operating an existing business. Gary belongs to two communities. We’re proud to be one of them.
Gary Lerat grew up in a community he loves — the Cowessess First Nation in Saskatchewan. Today, he’s also a member of the PotashCorp community. Thanks to a unique outreach program, we’re tapping into the talents of First Nations and Métis people like Gary. We offered him a career path at our Rocanville mine, and he’s making the most of it. “It’s got that community feel,” says Gary about PotashCorp. “Everyone there is almost like family.” Visit PotashCorp.com to see how we continue to nourish human potential.
@PotashCorpSask
15-102-004 – Lerat Ad Business & Industry Magazine Full Page with Bleed, 4C, (8.25” x 10.75”)