Golf Course Homesites
see page 9 See Page 5
MANITOBA/SASKATCHEWAN JULY 27, 2007 – VOL. 3, NO. 15 NEWSSTAND $2
Beekeepers stung by high colony losses
A QUICK STUDY Industry struggles
with low prices,
By Laura Severs
ees are dropping like flies
as Canadian beekeepers
struggle to find out
what’s causing a collapse
in their $1.2-billion industry.
Losses across the country are
piling up and beekeepers are fac-
ing tough times, industry officials
say, especially in an economy
where honey is selling at prices
below actual production costs.
While early indications point to
unusual weather patterns and dis-
ease, there is no one common link
to the high levels of bee mortality.
In some cases, colonies weathered
the winter in one area while a
neighbouring beekeeper was hit
“We haven’t seen such high
losses before across the country,”
says Heather Clay, national co-
ordinator for the Calgary-based
Canadian Honey Council (CHC).
“We’ve seen it in pockets, but
nothing on this scale.”
Overall, the national average of
overwintering mortality has
almost doubled over last year to 29
per cent, with Ontario registering
28,379 dead colonies (or 37 per
cent); S a s k a t c h ew at 24,000
(24); Manitoba at 22,950 (27) and
British Columbia at 11,308 (23).
Daniel Alexander, Business Edge
See PLAN Page 4
Cellphone software maestro Prairie ISSN 1715-5967
QuickPlay Media CEO Wayne Purboo has led his company through a series of transformations, building it into a major
telecommunications industry player in three years by supplying the software that allows cellphone customers video
access to the major carriers. Purboo discusses his evolution into an entrepreneur in 20 Questions on Page 6.
Page 2 July 27, 2007
More Canadians adopting
SECOND WEEK BY
BUSINESS EDGE INC.
SUBSCRIBE ONLINE AT:
NATIONAL OFFICE The Canadian Press a vehicle to work, while Examining a carbon tax or
SUITE 500 PUBLISHER Victoria and Ottawa-Gatineau disincentives for purc h a s i n g
525 11TH AVE. S.W. ROB DRISCOLL A growing number of had the lowest proportion. gas-guzzling SUVs are
CALGARY T2R 0C9 Canadian householders are While it’s heartening to see possible options to encourage
1.866.216.3343 EDITOR-IN-CHIEF using energy-efficient lights m o re Canadian householders Canadians to become more
FAX 403.264.4439 and water-saving showerheads, boosting their use of compact environmentally active, Matt-
but they’re still far from being fluorescents and programmable haus said.
ADVERTISING INQUIRIES HEAD OF RESEARCH full-fledged environmentalists, thermostats, the predominance Since the survey was con-
ALEXIS D. SMOLENSK suggests a new Statistics Canada of single-occupant ve h i c l e s ducted, the city of Saskatoon
1.866.216.3343, EXT. 25
study. driven to work is a problem, revamped its transit system last
CIRCULATION MANAGER A survey of more than said Lisa Matthaus, campaigns Ju l y, and saw a 12-per-cent
ALEXIS D. SMOLENSK 28,000 households conducted director of the Sierra Club of i n c rease in ridership Ja n . 1
in early 2006 found that close Canada’s British Columbia d
c o m p a re to last ye a r, said
to six in 10 now use compact chapter. Mayor Don Atchison.
CANADA POST PM 40045817 fluorescent bulbs – triple the “To me, that points out vol- The city was the first in the
RETURN UNDELIVERABLE CANADIAN ADDRESSED MAIL TO: proportion since the mid-1990s untary measures can take us Prairies to have hybrid buses,
SUITE 500, – and more than four in 10 part of the way, and in some and they are trying to set up
525 - 11TH AVE. S.W. have a programmable thermo- cases, a good chunk of the way routes moving people fro m
CALGARY, ALBERTA. stat, compared to 16 per cent in to where we need to get to,” hubs and outer areas of the city
T2R OC9 1994. she said from Victoria. to the downtown core faster
Six in 10 households had a “But in the end, we really do than in the past, or to the north
SUBSCRIPTIONS@BUSINESSEDGE.CA wa t e r - s aving showerhead in need to look at government to end if needed, he said.
2006, compared to more than find ways of making sure every- “If it’s going to take you an
four in 10 in 1994.The propor- body is recognizing the real hour to get from one end of the
INSIDE EDGE tion using water-saving toilets costs of our actions.” city to the other (by bus) and
nearly tripled, and composting Having a good transit system you can (do it by car) in about
■ 20 QUESTIONS ■ EDGE@WORK also was on the rise. is a luxury for a lot of big cities 22, 23 minutes, I think a lot of
Software entrepreneur Wayne Companies are learning that But the survey found other with commuters wanting to people would still choose their
Purboo has enjoyed his retaining staff is as much of a aspects of household behaviour park the car at home, but that vehicle, so we’re trying to make
telecommunications challenge as finding them in have not changed much since doesn’t mean those living in it more beneficial time-wise to
rollercoaster ride. the first place. the mid-1990s. less populated areas don’t have take the bus for people.”
Page 6 Page 18 Chemical pesticide use was options, Matthaus said. Yet for many living in bed-
down only slightly to 29 per “Even smaller communities room communities near the
■ FINANCIAL EDGE ■ OPINIONS cent in 2006 from 31 per cent might have to start looking at city of 225,000, driving still
A strong stock market is Banks have taken the plunge in 1994, with the sole excep- prioritizing more investments remains their main way to get
making it tough for Fred into dangerous mortgage tion of Quebec, w h e re the in those kinds of areas, or for into Saskatoon, Atchison said.
Pynn of Bissett Investment territory with gimmicky deals, share of households applying individuals, making investments Pesticide use was highest in
Management to find bargains. says columnist D’Arcy Jenish. en
l aw n - a n d - g a rd pesticides in better technology that allows the Prairie provinces, led by
Page 12 Page 20 plunged by half to 15 per cent. you to either work at home Manitoba at 44 per cent and
Most Canadians also com- more often or carpooling with Saskatchewan close behind at
■ STREET LIFE ■ EXPORT ANALYSIS muted to work alone in a pri- neighbours.” 43 per cent.
Constellation Software’s star Strong sectors such as energy vate car or truck, with 57 per
is shining bright on the heels and metals are helping to keep cent of all people working out-
of an acquisition spree. the world economy rolling. side the home travelling solo to
Page 14 Page 20 their jobs during the warmer
months, growing to 64 per cent
■ REAL ESTATE EDGE ■ TECHNOLOGY EDGE in colder months.
Selling a ranch, like the Alexis As digital surveillance The survey found that of the
Creek spread near Williams improves, there’s the question country’s urban centres in sum-
Lake, B.C., can come down to of who’s watching the security mer, Saskatoon, A b b o t s f o rd ,
whether the buyer needs a camera staffers, says columnist B.C., and Windsor, Ont., had
private airport. Tom Keenan. the highest proportion of peo-
Page 16 Page 22 ple commuting on their own in
Use Someone Else’s Money
Equipment Leasing is Convenient and Fast
• Steel Buildings
• Commercial Equipment
• Office Equipment
• Materials & Handling Equipment
• Agriculture Equipment
• Plus Much More
Offices in Alberta, Saskatchewan and Ontario
July 27, 2007 Page 3
Workplace safety measures raise concerns
are particularly vulnerable to were killed and four others the legislated employment stan- allowed to stray outside that
Unions say abuse because of their depend- injured earlier this year while dards,” says Jackson. fence.”
ence on the employer,” says working at a Canadian Natural James Leland, business man- Under PNPs, employers must
foreign workers Andrew Jackson, chief econo- Resource Ltd. (CNRL) project ager for Ironworkers Local 97 prove that they have not been
mist for the Canadian Labour in the oilsands near Fort in Vancouver, says unions wel- able to hire Canadians for posi-
need freedom Congress (CLC). McMurray. Labour leaders say come temporary foreign work- tions filled by international
There were 171,844 tempo- the deaths defied the excellent ers and they should be allowed employees, and pay salaries on
of movement rary foreign workers living in safety standards of major oil and to change employers if they do par with locals.
Canada last year – a 122-per- gas producers such as Suncor, not find conditions satisfactory. But Leland says his union put
By Monte Stewart cent increase from a decade Syncrude and even CNRL. “If they were able to change in 100 applications for its mem-
Business Edge ago.Temporary foreign workers But the CLC’s Jackson says contractors, t h ey would go bers on the Golden Ears Bridge
entering Canada account for an provincial employment stan- where the work is safest, where project, a public-private part-
abour groups are calling for estimated 50 per cent of the dards often exclude temporary the pay is best and where the nership in the Greater
L looser restrictions on tem-
porary foreign workers in order
total, while the rest enter using
exemptions under NAFTA
foreign workers such as domes-
tics and farm workers. He crit-
conditions are best – according
to their ability,” says Leland.
Vancouver area, but “not one
guy got a call.”
to boost workplace safety. or other trade agreements, on icizes the Ontario government “Any other deal is just more “And yet (contractors) keep
Alberta has set out to provide student visas or as spouses. for resisting efforts by seasonal bureaucratic red tape.” saying they had to go overseas
more protections for workers The provincial nominee pro- foreign mushroom farmers to The fact that Ottawa and the to get ironwo r ke rs,” says
hired from other nations after gram (PNP) allows provinces unionize after a Supreme Court Alberta government would Leland.
signing a memorandum of and territories to fast-track of Canada decision ruled a have to introduce more protec- But Daniel Hirs c h ko rn, a
understanding (MOU) with applications for entry to provincial law prohibited their tions points to a problem, he Saskatoon-based consultant
Ottawa on a future agreement Canada to help offset skilled- right to do so. adds. who recruits foreign workers
that calls for closer scrutiny of labour shortages, which are “One thing (Ottawa) could Leland also contends foreign for Saskatchewan- and Alberta-
hiring and workplace-safety expected to become more do is not issue permits to temps constitute a “ c a p t iv e based companies, says Service
practices. Other provinces are acute as Baby Boomers retire. employers to hire temporary workforce” that is being used to Canada ensures that temporary
expected to follow suit. The programs have been cred- farm workers unless they’re sat- keep pay expectations down. f o reign workers re c e ive the
But labour groups say such ited with boosting labour sup- isfied that the provincial gov- “When they come in, t h ey same pay as their Canadian
pacts would not be necessary if ply in smaller markets, such as ernment is enforcing labour can only work for that compa- counterparts and no Canadians
temporary foreign workers Manitoba, that have difficulty standards,” says Jackson. ny,” he says. “For us to get them are available for jobs advertised.
could change employers if they attracting immigrants. But, he adds, the Ontario over to another company, it Once hired from overseas,
do not find the first job to their Ontario (44.7 per cent), B.C. government has increased its takes about two months – all wo r ke rs go through training
liking. Union leaders say cur- (21.7 per cent), Alberta (13.5 efforts recently to monitor kinds of paperwork. and orientation at the jobsite.
rent rules re q u i re temporary per cent) and Quebec (13.1) employers and make employees “If the guy is working there Companies will make sure
foreign workers to remain with employ the vast majority of more aware of standards. and they’re treating him shabby, English levels are high enough
the companies that bring them Canada’s foreign temps. “If workers are going to be and I have a contractor that will so that there are no miscom-
to Canada through provincial The federal-Alberta crack- effectively protected, the two treat him decently, he cannot go munication issues, he adds.
programs. down comes after two Chinese key lines of defence are union and work for him.The Chinese
“Temporary foreign workers temporary foreign workers representation or protection of wo r ker is not going to be See PACKAGE Page 5
CanAlaska Uranium Ltd.
. . . poised for discovery
• CanAlaska Uranium is exploring over 10,000 square km of projects in the
Athabasca Basin and surrounding districts.
• CanAlaska Uranium, with experienced exploration teams, has had three
successful years of target generation in the Athabasca Basin and Manitoba.
• CanAlaska Uranium is the only junior exploration company in the Athabasca
to gain worldwide investment interest, with Mitsubishi Development Corp,
Hanwha Corp, and Yellowcake Plc. among its partners in exploration.
• CanAlaska Uranium is poised for discovery in the most strategic and richest
uranium mining camp in the world.
• 70% interest in over 350 sq kilometres
• Acquisition located in renowned
• Property adjacent to: TSX.V: ELN
- Anvil Mining
www.canalaska.com - Tiger Resources
- BHP Billiton
Toll Free: 1 800 667 1870 2303 West 41st Avenue • Extensive experience in the DRC www.elninoventures.com
Email: firstname.lastname@example.org Vancouver B.C. V6M 2A3 • Market Cap $22 Million – Toll Free 1.800.667.1870
Ph 1 604 685 1870 $5 Million in treasury email@example.com
Page 4 July 27, 2007
PLAN from Page 1
Secondary illness proving fatal for colonies
The colonies appear to suffer prices due to a world honey wrench in trying to find out
first from a primary malady, shortage. what the problem was. We’re
such as poor nutrition, unusual- “The wholesale price was speculating the long winter we
ly cold weather, mite infesta- around $2 a pound then, now had – it came early and stayed
tion, bacteria or other non-life- it’s 75 cents a pound,” says late – plus a cool wet spring
t h reatening illness, says John Wa l ke r. “(To d ay) it costs us made it more difficult for the
Gibeau, president of the British $1.25 to produce a pound of bees to recover from the long
Columbia Honey Pro d u c e rs honey that we only get 75 cents winter.”
Association. Then the colony for.” Laflamme hopes to have all
dies from a secondary illness N ew Bru n swick has an- the data analysed and a report
that attacks during the weak- nounced $100,000 as a first step by August, but adds he does not
ened state. to help beekeepers rebuild their know of any new funding in
“That secondary illness has colonies. the works.
not yet been discovered, and However, no additional fund- He notes beekeepers can turn
may be a simple pathogen, such ing has been set aside in to existing compensation pro-
as a new virus,” says Gibeau. Alberta, and that concerns vided by the Canada Alberta
The one bright spot is that Kevin Nixon, president of the Income Stabilization Program
c o l o ny collapse disord e r Philip Dobranski photo, Alberta Beekeepers Com- and the Alberta Financial
(CCD), prevalent in the United courtesy of British Columbia Honey Producers Association mission (ABC). Services Corp. But Nixon says
States, where a sudden large- The Canadian Honey Council has developed a 23-point action “We are seeing extre m e l y such programs are inadequate
scale die-off of adult bees high losses,” says Nixon.“We’ve for beekeepers who have been
plan to help beekeepers battle the high levels of bee losses.
occurs, is unlikely to be a cause had two years in a row of low hit with high colony losses.
for concern in Canada. CCD honey prices and beekeepers Saskatchewan Beeke e p e rs
has yet to be diagnosed in THE BUZZ being hit with a huge loss. We Association president Tim
Canada, says Gibeau. can’t just call up a supplier in Wendell says losses in the
New Brunswick has been Employing about 8,000 people, Canada’s beekeeping industry April and say,‘30 per cent of my province varied this year with
hardest hit by bee colony losses produced 93 million pounds of honey in 2006. Almost half the bees are dead and can we get some beekeepers losing 80 per
over winter, losing 59 per cent honey crop is exported, with 90 per cent sent to the U.S. new bees?’ cent of their colonies and oth-
But Canada has fallen out of the top 10 global honey
this past winter – the average “We can only get new bees ers just 10 per cent.
producers, with countries such as China, Turkey and Argentina
for overwintering losses of bee leading the way followed by other nations including Mexico,
f rom New Zealand and “It looks like it was a resistant
colonies in Canada is just 15 Ethiopia and Spain. Australia, and those usually mite, something that happens
per cent – or 4,990 dead bee According to 2006 figures, there were 631,252 colonies in have to be ordered in January after a time if you’re using a
colonies. In Alberta, home to Canada. to receive them by springtime.” specific mite treatment,” he
the largest number of bee ■ 435,000 colonies are located on the Prairies, producing 83 per With about 240,000 hives – says. “It’s my experience that
colonies in the country, the cent of the honey crop. or 40 per cent of Canada’s bee when you have winter losses, it
percentage is lower at 31 per ■ Some 80 per cent of beekeepers are hobbyists and operate colonies – and the largest generally points to some form
cent, but it registered the high- 20 per cent of all colonies. The average number of colonies per honey production, as well as the of management issue – mites
est actual number of dead bee commercial beekeeper is 2,000. largest pollination sector in grow resistant very rapidly.”
colonies at 77,500 during the ■ Bees are estimated to contribute, directly or indirectly, to one- Canada for canola, Alberta But while Wendell is con-
same period. third of our food supply. remains on the sidelines, says cerned about colony loss, he
To deal with the situation, ■ The annual value of honey, wax and hive products is about Nixon. says there’s an even bigger issue
the CHC has developed a 23- “Everything that has taken – cheap imported honey that is
■ The annual value of honey bees through direct effects of
point action plan. place so far has gone very slow- sold in this country under the
pollination is more than $1 billion. Pollination targets include
Clay says the plan calls for: hybrid canola, apples, blueberries and cranberries.
ly. They (the province) don’t Canada No. 1 brand, which is a
■ Improved monitoring of bee Source: Agriculture and seem to have any major con- grade name and doesn’t reflect
colonies. Agri-Food Canada cerns about it,” says Nixon. the honey’s origins.
■ The establishment of a Paul Laflamme, head of the “That Canada No. 1 honey
national bee lab for testing and honeybees are vital to the says Danny Walker, president pest management branch of may not have any Canadian
research. canola seed production indus- of the Ontario Beekeepers Alberta Agriculture and Food, honey in it,” he says.
■ Lobbying the federal gov- try – and for more research dol- Association. says the province is still But the CHC’s Clay says
ernment for at least one addi- lars. “We were lobbying before “But there’s still some guys analysing results from a provin- t h e re is good news on this
tional national apiculture (the bee colony losses) and are who could still use some help – cial survey about overwintering particular front after years of
research position with full tech- lobbying harder now,” she says. some of these guys will spend as losses. lobbying for change.
nical support. In Ontario and New much as they can to get back “One of the oddities that we “The current (federal) gov-
■ Expanding provincial inspec- Brunswick, provincial govern- on their feet. An equal match saw was that we could have a ernment is working with us on
tion programs to include both ments have stepped in with from the federal government is large producer with two yards, getting the changes,” she says,
fall and spring. financial assistance for the hard- well-warranted for us and the one would be devastated with adding in the future, the
■ Assistance/disaster relief pro- hit sector. ( b e e ke e p e rs in the) other an 80-per-cent loss, the other Canada No. 1 honey brand will
grams for beekeepers at both Ontario has set up the $2.4- provinces as well.” would be fine with normal only be used on 100-per-cent
the provincial and federal levels. million Special Beeke e p e rs Walker says he sold honey losses of about 10 per cent,” he Canadian honey.
■ A comprehensive profession- Fund to provide direct com- this winter for a third of what says. (Laura Severs can be reached at
al development program for pensation to beekeepers who he got in 2002, the best year for “That really threw a monkey firstname.lastname@example.org)
beekeepers that would consist s u f f e red higher than normal
of courses in business and live- hive losses this past winter.The
stock management, accredita-
tion, and good practices recog-
province is adding an addition-
al $600,000 for research, tech-
Housing market racks up another record
nition. nology transfer and the promo- The Canadian Press adjusted high of 31,300 – up first time in more than a year.
One of the first moves will be tion of Ontario honey. 0.3 per cent from May and 10.9 Bank of Montreal economist
an information bro c h u re for The Ontario Beeke e p e rs Canada’s housing market had per cent from a year ago. It was Doug Porter said one of the
beekeepers on the monitoring Association calls the funds a another record month in June the highest monthly sales level reasons the Bank of Canada is
and treatment of pests and par- good start, especially for bee- as the average price jumped on record and the third consec- hiking rates is due to the per-
asites. “Right now we need to keepers in the Niagara and the more than 10 per cent. utive month in which activity sistent power of the housing
get the information out and Haldimand-Norfolk areas – just The Canadian Real Estate scaled new heights, CREA said. market.
make sure that all beekeepers west of the Niagara – that were Association (CREA) said the Cities breaking re c o rds in Porter said with sales growing
get the same information,” says some of the hardest hit by hive average cost of a home was June we re Regina, Toronto, faster than new listings, there is
Clay. losses. $335,180 last month, compared Hamilton, Kitchener, Montreal still room for house prices to
Clay adds that more research “I think it’s fantastic that they to $303,472 in June last year, an and Saint John. increase further “including mar-
at the federal level is vital, and (the province of Ontario) increase of 10.4 per cent. The housing figures came a kets which were previously
the CHC is lobbying for a pol- d
k i c ke in their $3 million, Also in June, existing home day after the Bank of Canada m o re subdued, such as Toronto,
lination ecologist position – which will help out a lot,” sales rose to a new seasonally raised interest rates for the Montreal and Ottawa.”
July 27, 2007 Page 5
PACKAGE from Page 3
Report predicts global energy crunch
Companies being The Canadian Press
The International Energy
“Not only does oil look
extremely tight in five years
time, but this coincides with
The Paris-based agency fore-
casts escalating global growth
will cause spare capacity of the
advised to put Agency has warned of the
prospect of a global oil and
gas crunch due to higher
than expected demand and
the prospect of even tighter
natural gas markets at the turn
of the decade,” the energy secu-
rity watchdog for the 26-nation
OPEC to fall to “uncomfort-
ably low levels” – and non-
OPEC countries will not pick
up the slack.
worker safety first b e l ow-par supply from the
Organization of Pe t ro l e u m
Exporting Countries (OPEC)
and other suppliers.
Organization for Economic
Co-operation and Deve l o p-
ment said in an oil market
Supply increases from non-
OPEC oil producers will start
receding starting in 2009, the
“ S a s k a t c h ewan employers, near the top of workplace
the ones I’ve talked to, they death and accident totals,
have a whole package in place behind perennial frontrunner
when foreign workers come Ontario.
here,” says Hirschkorn. “They Christie says Alberta work-
make sure that communication place deaths have declined
is there (and) understanding is slightly to about 120 per year
there. from 155 two years ago.
“Unfortunately, people die at “It’s kind of a joke when we
job sites all the time.They hap- see what has been happening
pen to be foreign workers who for decades here,” he say s .
died (in the oilsands.) But I “Now, we bring in fore i g n
wonder if there’s more media workers who are really inden-
(attention) around (the inci- tured labour.”
dent) because they are foreign Citing federal figure s , the
workers.” Alberta Federation of Labour
Hirschkorn believes provin- reports the province welcomed
cial nominee programs are more temporary foreign work-
“visionary” and make sense, but ers than immigrants through
he also endorses the idea of a the mainline entrance program
national program designed to last year.
improve temporary fore i g n As of last Dec. 1, there were
worker safety. Businesses must 22,392 temporary fore i g n
bear most of the responsibility workers in Alberta, compared
for safety, because there’s “only to 20,717 immigrants granted
so much” that governments can permanent residence status.
do. It marks the first time that
“With this day and age of Alberta’s temps have outnum-
Internet, it’s a small world,” he bered traditional immigrants.
adds.“If people are hearing that There were 74,275 tempo-
f o reign wo r ke rs are coming rary foreign workers in Ontario
here and (Canada has) unsafe as of last December, compared
working conditions, people to 125,914 immigrants granted
will just quit coming. So it’s a permanent residence status.
good idea for eve ryone British Columbia re c o rd e d
involved to ensure that regula- 36,210 temps with 42,079 tra-
tions are in place and (there is) ditional immigrants. Saskat-
a safe work environment.” chewan welcomed 2,266 for-
The MOU between Alberta eign temp workers and 2,724
and Ottawa, announced July 9, n ew permanent immigrants,
calls for the two Tory govern- while Manitoba had 3,494
ments to share information on temporary workers with
workers hired from other 10,051 people granted perma-
countries to ensure temporary nent residence status.
employment programs meet Christie says a survey con-
the needs of workers and ducted by a Calgary coalition of
employers. unions found most of the city’s
Ottawa also plans to introduce temporary foreign worke rs are
tougher measures designed to employed in the food-service
monitor the hiring of tempo- industry and earn only $9-$10
r a ry foreign workers and curb per hour on average, while most
fraud. Potential penalties com- receive minimum wage.
panies could face include refusal “Absolutely, there have to be
of future requests for more (temporary foreign worker
international temps. protection) measures national-
But Gordon Christie, execu- ly,” he says. “Everything helps.”
tive secretary for the Calgary He says Alberta has had tem-
and District Labour Council, porary foreign worker pro-
p redicts the Albert a - O t t aw a grams for the past 40 years, but
deal will not make a difference. they are now used on a much
He says the governments must larger scale.
look at Canada’s safety record All workers should be treated
for all workers – not just with dignity and re s p e c t
foreign temps. re g a rdless of where they’re
Of all Organization for from, he adds.
Economic Co-operation and “We should all have the same
Development (OECD) coun- equal opportunities (and) ben-
tries, only Italy has a worse job efits,” says Christie. “Instead of
accident and death rate than temporary foreign workers, we
Canada and all the English- should be looking at immigra-
speaking industrialized coun- tion.”
tries, says Christie. (Monte Stewart can be reached
Alberta traditionally ranks at email@example.com)
Page 6 July 27, 2007
Entrepreneur enjoying rollercoaster ride
By Monte Stewart
ayne Purboo started
W out as a technologist,
but morphed into an
The founder, president and CEO of
Toronto-based QuickPlay Media Inc.
is now leading his company through a
series of transformations.
You may not recognize QuickPlay,
but it’s lurking behind the scenes of a
cellphone near you.
In layman’s terms, the company
provides software that enables
customers to watch short video clips
on their mobile devices. In three
short years, Purboo has taken a
company from scratch to revenues
approaching the $10-million market,
signed up major carriers Telus, Bell
Mobility and Rogers, and linked users
to major broadcasters such as CBC,
MTV, ESPN and CHUM Television.
“I love the rollercoaster,” says
Purboo, explaining how he evolved
into an entrepreneur. “It definitely is a
rollercoaster ride. Day to day is just
up and down. I play a lot of sports. I
played basketball for McMaster
(University) and it’s just replaced that
competitive need that’s in me, I
Suffice to say, he has come a long
way since he left his birthplace of St.
Thomas, Jamaica, at the age of two.
1. Do you actually remember
much about Jamaica? Daniel Alexander, Business Edge
“Only because I’ve vacationed
QuickPlay Media CEO Wayne Purboo has developed his company into a telecommunications industry player.
there, but not (from) while I was
there. My grandmother’s there. My was pretty easy to switch.” manageable right now. Some days, I me on what’s important and what’s
family are (banana) farmers. So there’s 5. Why did you decide to switch? probably should (use a cane.)” not. It’s the ‘what’s not’ that’s really
still the family farm and stuff.” “There were a couple things that 9. What would you say helped important when you’re a startup
2. Why did your family decide to were happening. I started playing you survive that serious injury company. Judy used to be on the
move to the Toronto area? around with computers more because and still pursue your goals? board of Fed Ex. I was very fortunate
“My dad was also a machinist and of the Genome Project. I kind of “Things changed. I got recruited to be just out of university and able
in the ’60s (companies) were looking figured that they’d need to store all out of university for a California- to work in that kind of environment.
for machinists in Canada, so they the data. It was a nice mix between based company and I just never It definitely made me appreciate the
moved. He was a welder and did a lot some of the natural science stuff I was looked back. I just kept doing way I think about technology and
of metal work, and turning a lathe doing on the biology side and the computers and computer science. startups.”
and stuff like that.They needed a lot computer side. I just found I liked Even through my injury, I actually 10. What was the important part?
of robotics and things like canning the computer side more. I had a car wrote a computer program. A friend “With a startup, you’ve got limited
machines. It was one of those com- accident there, too, and ended up of mine who had a headhunting resources.You’ve got to figure out
panies that got shut down because of spending a lot of time using a business wanted something to when to focus on what.That was the
free trade and moved to the U.S.They computer.” organize all these people that she was biggest lesson. I was about the 35th
did a lot of manufacturing – sort of 6. What happened in the car seeing. I wrote a software program for person hired at that company. It grew
spec manufacturing – on machines.” accident? her and that really motivated me to quite rapidly and (went public), so it
3. What did your dad do when “I broke my hip and I wasn’t able say:‘Hey, you know what? You could was a real education for me.”
the company shut down? to walk.” really make some money doing this.’ 11. What should and shouldn’t
“He moved to an extrusion com- 7. How long were you sidelined? I got the job with the California you focus on?
pany that did a lot of aluminum “I was in the hospital for about two company based here in Toronto, but “It depends on what stage you’re
extrusions and he just kept getting months.When I came out, I was on I spent a lot of time in California and at, and it changes over time. I think
into more machine work.” crutches and canes, probably about I learned what it meant to be an that a lot of people focus on the
4. When you were younger, what nine to 12 months. I was pretty active entrepreneur. I worked for a lot of wrong things early on. I have a whole
did you imagine you’d grow up with my cane.” great people, including Bill Carrico philosophy about startups and what
to be? 8. What was that time like for and (wife) Judy Estrin. Judy Estrin is should be done and what shouldn’t
“Culturally, there’s not a lot of push you? pretty significant down in Silicon be done. I’m still tweaking it and
to build your own business. It’s all “Of course, it was very frustrating, Valley (having been named three experimenting with it. But very
professions. Everybody wants to be an but it was good in that it gave me times to Fortune Magazine’s list quickly, with limited resources, you
accountant or a doctor or a lawyer. I time to think about what I really of the 50 most powerful women in can get a company started if you just
actually went to McMaster because wanted to do.This was 1990, so I American business).They’re kind of stop doing certain things and make
my parents wanted me to become a would have been 23. I would have the original Silicon Valley entrepre- sure that you do others that are more
doctor. I was in the natural science been in my third year (at McMaster). neurs. I got a thorough education on significant.”
program, but computer science is in I still have a lot of issues with it. I what it means to run a company.
natural science as well at McMaster. It have arthritis in my hip, but it’s Most importantly, they really educated See 20 QUESTIONS Page 8
July 27, 2007 Page 7
New fisheries program reels in support
He singled out the Fraser enforcement and provide new “more successful” fisheries than tunities are transferred to First
But groups say River salmon fishery, which has approaches to trace fish from salmon use. Nations as part of treaty nego-
been the scene of conflict the time they’re caught until “Under a quota-based sys- tiations.
more federal between Aboriginal and non- they’re bought by consumers. tem, instead of racing to catch The federal announcement
n a t ive fishermen, and con- Rob Morley, vice-president the fish and having them all came just days after Paul
funding required frontations by both groups with of human resources and corpo- land at the plant at once, you Kariya, president and CEO of
Fisheries enforcement officers. rate development for the would basically give every ves- the Pacific Salmon Foundation,
By Monte Stewart Doug Kelly, grand chief of Canadian Fishing Co. ( C a n- sel a fixed number to catch,” called on the fishing industry
Business Edge the Sto:lo First Nation based in fisco), says his Vancouver-based says Morley. “They would have and all British Columbians to
the Fraser Valley, says the feder- firm, the largest commerc i a l the whole week to catch it and change their approach to the
irst Nations and commercial al initiative is a clear departure operator on the West Coast, had you could spread out the land- d
a l m o s t - s a c re salmon in a
F fishers are praising a new
$175-million Pacific fisheries
from Prime Minister Stephen
Harper’s “ill-advised letter” to
anticipated a federal announce-
ment because there is pressure
ing so (packers) would have
fresh fish every day.They would
speech to the Vancouver Board
support program that is the Calgary Herald in which he to change the way B.C. fisheries take no more than the depart- The Pacific Salmon Found-
designed to re-integrate the pledged to end “racially divid- are managed. ment wanted taken in that time ation describes itself as an inde-
West Coast fishery. ed” fishing programs. “We’re hopeful that it’s a start period.” pendent, politically neutral
But spokesmen for both “I say ill-advised because that in the right dire c t i o n ,” s ay s Such a system would provide organization dedicated to
groups say more federal fund- letter was written primarily out Morley.“But it’s probably not a better control over manage- re building healthy, sustainable
ing is necessary for the program of ignorance,” says Kelly. big enough (financial) push to ment of the fishery and more and diverse Pacific salmon
to succeed. He adds B.C. already has one make a big difference.” opportunities to reduce costs stocks.
Fisheries Minister Loyola fishery, but the conflict sur- He estimates as much as $800 and provide higher-valued Kariya called on fishers to
Hearn says Ottawa will spend rounds the sharing of the catch. million in federal money could products, he adds. revise their practices through
the $175 million to fulfil the “I think it’s a small, bu t be necessary for buyouts over a But Eco-Trust Canada, a changes in the types of nets
Conserva t ive gove rnment’s important, first step to investing 10- to 15-year period, based on Vancouver-based sustainability they use and other techniques
commitment to establish one in Pacific fisheries,” says Kelly the possibility of First Nations group, argued in a 2004 study in order to conserve the fish for
fishery in British Columbia that of the federal program. seeking one-third of the $2.5- that a quota-based system future generations.
is environmentally and eco- But he is concerned that billion value of quota and would favour large cor- “A good part of their decline
nomically sustainable. Most of inflation in the cost of equip- licences. porations and hurt small West is because of human impacts,”
the money is expected to go ment could drive the buyout Morley says the B.C. industry Coast communities that rely says Kariya.
toward a buyout of commercial price up. He also wants First has to change the way it does on fishing for much of their Last year, he says, the Fraser
fishers that would transfer more Nations to be “actively involved business in order to remain livelihood. was predicted to have a sockeye
of the annual harvest to First and engaged in managing that competitive with its main rival, Morley notes the proposed run of 15-16 million, but the
Nations. buyout.” Alaska. He is hopeful the feder- buyout of commercial fisher- actual number was 11-11.5
Hearn says the challenges The new money will be al announcement will prompt men would give many who are million. This year’s pre-season
faced by Pacific commercial doled out over five years and Ottawa to grant the industry’s looking to retire an opportuni- sockeye forecast calls for six to
fisheries require all sectors to will be used to establ i s h long-standing request for a ty to leave the industry and seven million.
rise above the discords of the enhanced catch-monitoring quota-based system, which he help the sector prepare for the
past and work co-operatively. and re p o rting, s t re n g t h e n contends is what many other time when more fishing oppor- See HABITAT Page 9
Franchising your business? Call Retailink
en Purvis can spot a successful Western Canadian compete against all the other
candidate for franchising
a mile away. “ We specify ways franchisor.”
Purvis is equally happy to help
franchises for sale and then to
beat the competition,” Purvis says.
They share certain key existing franchises solve their “This is extremely important.
characteristics. They run small and means problems, developing specifically I spend an awful lot of time on
to mid-size businesses that are for this new designed programs to generate this aspect of the engagement.”
profitable. increased sales, cut losses, Purvis places particular
These businesses are
franchise to improve franchise relationships emphasis on the importance of
well-managed and unique. compete against and minimize legal exposure to creating franchises SAFELY, by
Moreover, they are eager to all the other lawsuits. But when it’s time to help the way.
expand but lack the time, funds a new franchise get off the “There can be legal pitfalls as
and people to make it happen. franchises ground, Purvis adheres to a we move down this road,” he
For these business leaders, a for sale and proven formula, helping each frankly warns. “To protect my
franchise plan represents a highly customer develop an effective clients, I work closely with them
then to beat business plan. through the entire process.”
Ken’s company, Retailink the competition. From that point forward, it’s a In addition, Purvis personally
International Inc., helps such three-pronged process. sells the first three or four
companies expand their horizons
– and build their profit margins –
” ■ First step: Making
arrangements for legal
franchises on his client’s behalf.
“By doing so, I actually train the
– Retailink’s Ken Purvis,
by going the franchise route. documentation, the franchise person my customer selects to
Just ask the proprietors of the franchise lawyer and coach agreement and the disclosure head up their franchise sales
health-food store for pets that is agreement. team,” he says.
now going gangbusters as a chain the possibilities of this potentially ■ Second step: Creation of With offices in Calgary and
of franchises. Or the owner of the lucrative and rewarding business operations, marketing and training Denver, Ken Purvis is thoroughly
mobile computer maintenance and strategy. manuals. conversant with franchise law on
repair business who travelled a “My personal belief is that a “Everything relating to the both sides of the border.
similar road. good coach can work wonders,” business must be documented, Interested? There’s much more
Both these ambitious business he explains. “I learned an awful lot from unlocking the door in the to learn. So drop by the Retailink
people benefited from the expert about the entire industry during morning to going to the bank at website (retailinkfranchise.com)
advice of Ken Purvis, a franchise my years as a franchise lawyer. night,” Purvis insists. and give Ken a toll-free call at
lawyer and “coach” with decades In fact, I’ve been a franchisee ■ Third step: Marketing the 1-800-567-9389 or, in Calgary,
of experience. Purvis has helped myself and spent four years franchise. “We specify ways and 403-543-1044 or e-mail
hundreds of companies explore working in house with a means for this new franchise to firstname.lastname@example.org.
Page 8 July 27, 2007
20 QUESTIONS from Page 6
Market direction crucial part of game plan
12. From scratch, what is
the most important thing WAYNE PURBOO QUICKPLAY MEDIA
“I think the biggest thing is ■ Born/raised/age: St. Thomas, ■ Brass: Wayne Purboo, co-founder, president and CEO; Raja
a lot of people get too caught Jamaica/Mississauga, Ont./40. Khanna, chief creative officer and co-founder.
■ Education: Studied computer ■ Profile: Founded in 2004, QuickPlay is a privately held firm
up in their ideas and try
science at McMaster University and that has approximately 80 employees and revenues under $10
to drive their idea down business administration at Ryerson. million per year. The firm’s OpenVideo service delivery platform
customers’ throats.This is my ■ Family: Wife Nigela, three sons: manages and delivers mobile TV and video services. Customers
own philosophy.You can have Cole, 7, Christian, 6, Camden, 5. include Rogers Wireless, Telus and Bell. QuickPlay also provides
an idea and you can bounce it ■ Career: After graduating from video content from major broadcasters, including CBC, ESPN,
off a customer, but then you’ve McMaster, Purboo joined California- The Score, MTV and CHUM Television, while the same media
got to spend a lot of time in based Network Computing Devices companies are customers that use QuickPlay technology to make
the first couple of years just (NCD), working out of Toronto. their content more easily available to several telecom carriers.
listening to your customers After leaving NCD, he became chief Last year, QuickPlay won the Canadian New Media Company
and delivering more custom technology officer of billing-system of the Year Award, after earning honours for the most promising
solutions than you’d probably provider Solect Technology Group, new firm in 2005.
which was acquired by Amdocs Wayne Purboo won Top ■ Corporate Structure: QuickPlay is a privately owned firm
like. A lot of peers might get
Ltd. for US$1.2 billion in 1998. funded by venture capital companies.
upset with me for saying that,
He remained with Amdocs as
40 Under 40 honours. ■ Website: www.quickplay.com
but I think in the very early
vice-president of strategy until he founded QuickPlay in 2004. ■ HQ: 43 Hanna Ave., Toronto, M6K 1X6
stage you have to deliver some ■ Awards: Purboo was named as one of Canada’s Top 40 Under ■ Phone/Fax: 416-916-7529/416-535-2415
custom solutions so you 40 by Caldwell Partners in 2006.
understand the space – you ■ Moonlighting: Sits on boards of private technology companies.
understand the problem – Volunteers for Pathways to Education, a program designed to important that entrepreneurs significant revenues, reference-
better.Then, over time, you keep kids in school, and Sheena’s Place, which helps people continue to create value.We able customers. It was very
have to start to look at the overcome eating disorders. Coaches minor hockey and soccer in created a lot of value.” easy to raise money. It’s a great
market direction and decide: Oakville, where he now lives. 16. What gave you the idea market. It’s the fastest-growing
How do we innovate beyond ■ Passions: Technology, sports. for QuickPlay? market in mobile content, so
the requirements that we’re “I was running strategy for it’s actually pretty easy to raise
seeing from our customer? sake. I actually get really (acquisition) deal in Canadian Amdocs and meeting with a money.”
And how do we build for excited about the implementa- history.” lot of carriers and the 3G 19. What intellectual
the future as opposed to just tion of technology and how 15. What was your role in (third-generation wireless) property issues come
building for our customer? So technology can be used to that takeover? licence had just happened in into play when you’re
the company’s got to morph better people’s lives and to “When we were acquired, I Europe. In talking to a lot of aggregating the content?
over time. A lot of people entertain people. I don’t get was running strategy for (telephone carrier executives), “Most of it, like with ESPN,
can’t get that either, in that so riled up on technology Amdocs, a huge telecom I recognized that they all MTV, CBC or any of these
they can’t cut off from the without there being some billing company. I did all the wanted to have the capability guys, they really want to con-
customer. So they continue to real benefit to it. So I think technology due diligence. It to deliver (content-rich) media trol their content.We support
deliver custom solutions or I’m more of an entrepreneur was pretty overwhelming (to to their customers, but they something called forward lock-
they just don’t look into the than a technologist. (This be involved in a deal that big). didn’t have the infrastructure. ing. So once it’s on the device,
future, because things are rosy view) is morphing over time. If We were still pretty young. So we built the infrastructure.” they can’t forward it. It’s
and they’re making money you’d asked me the question We had a great company 17. How did you get associated with that device.”
from the existing customers 10 years ago, I would have and it was growing.We had a through that first year? 20. If you couldn’t be at
that they have. So a foreign told you I was a technologist. number of companies from “A lot of funding.You’ve got the helm of QuickPlay
competitor comes in and But I’m becoming more around the world – some to keep winning customers so anymore, what would you
just stomps all over them. and more focused on very big companies, like BP that your investors see that it’s do?
A key thing is being able to how technology can be (British Petroleum) and Bell a good market to be in. But “I want to get to the point
recognize what you’re doing, consumed.” Canada. For me, it was a bit of you’re not going to recover where I can do more not-for-
and what stage you’re at, and 14. What was the first a shock that we were bought. your investment (right away.) profit work, because I see the
then being able to transition company that you We were about to IPO, and You’re going to invest for a same sort of issues – fund-
the company through the launched? this was a pre-emptive transac- number of years and build the raising and being able to solve
different stages as smoothly as “The first one that I didn’t tion. It was my first time being product up and then get to a problem and things like that.
possible. It’s not just one big launch, but was a principal in, that close to a transaction, so I some critical mass.” I really think by the time I get
exercise. It’s multi-stage.Your was Solect Technology Group. learned a lot – how it happens 18. How much did you to 45 and I’m a little bit older,
personnel – everything – is Right after I left NCD, which and what happens and all of raise when you started I can carve up my time and do
affected. It’s important to was the California company the different components. QuickPlay? not-for-profit work. I think
understand that.” (mentioned earlier), a friend of Obviously, it’s a huge feather “The initial raise was about there’s definitely a need to give
13. Do you see yourself mine who was running Solect in our caps for all of us that $300,000. It was mostly me. back. It’s one of the reasons I
as an entrepreneur first, asked me to join. I did a lot of worked on it. It was a very Actually, it was pretty much all coach, and I have three kids in
or a technology specialist jobs there, from engineering to successful deal. It pumped me. In the series A, we raised the system. At this (minor
first? sales, and ended up being the $330 million across our about $3 million. In series B, sports) level, it’s all volunteer. I
“That’s an interesting (chief technology officer.) We (350-400) employees in we raised $14 million.We feel a definite need to do more
question. I like applied sold the company in 1998 for Canada, so it was a lot of went on a roadshow and made for the community.”
technology, so I don’t like US$1.2 billion, which is still money that went into the a big pitch. By that time, we (Monte Stewart can be reached
technology for technology’s the largest private technology Canadian economy. It’s very had significant track records, at email@example.com)
Don’t miss your chance to advertise in the next Special Edition
Business Edge Special Reports, which examine important issues and personalities in selected industries, are Call or e-mail now
highly popular with readers and, as such, present great advertising opportunities. Advertising in conjunction for more information
with a special re p o rt gives your organization a presence in an edition that will be read closely and often kept
around the office for an extended period. Consistently high readership firstname.lastname@example.org
generated by editorial excellence and direct delivery to more than 180,000
Canadian businesses translates to maximum impact for your marketing message.
Upcoming Special Reports:
SPECIAL REPORT Sept. 7: Travel & Aviation Oct. 19: Small Business
July 27, 2007 Page 9
HABITAT from Page 7
Ottawa moves to help farmers
Quota system may The Canadian Press Agricultural Income Stabiliz-
ation (CAIS) program, created
farmers have predictable pro-
provide incentive Farmers who suffere d
through drought and mad-cow
disease will begin re c e iv i n g
cheques this month as part of a
in 2004, left many producers in
bureaucratic limbo, filling out
complicated forms with no
guarantee they would qualify
Of the money, $400 million
will go directly to producers
who apply for the cost of
production aid, which covers
Kariya wants a more limited techniques), and the Pacific $1-billion program to stabilize for the funds. soaring fertilizer, fuel and
season opening, revisions to Salmon Foundation has a great the industry, the federal agri- “What has become clear is labour costs between 2000 and
fishing areas and reduced har- role to play in educating peo- culture minister says. that many farmers say the pro- 2004.
vests. He says the value, and ple,” says Armstrong. “I don’t The announcement by gramming was just so complex Strahl said those who applied
ultimately the market price, of think (Kariya) is chastising peo- Chuck Strahl backs up a com- and so difficult to administer under the old CAIS program
the fish should be increased in ple. He’s working with them to mitment from the spring budg- that they’ve almost given up,” will be eligible to receive the
the spirit of conservation and find new solutions.” et to change how producer he said. cheque. Those who didn’t par-
wants the industry to build in – with files from subsidies are delivered and to “We made a promise to ticipate in CAIS or began
the cost of habitat restoration. The Canadian Press create a new savings account change the programming and farming after 2004 can send in
Kelly, who has worked close- (Monte Stewart can be reached for future aid. we’re going to keep that prom- an application to receive the
ly with Kariya, calls limited at email@example.com) Strahl said the old Canadian ise – this is going to help many subsidy.
openings and revised fishing
areas “an excellent idea.”
He says the Salmon Table, a
group that includes the Sto:lo
and other lower Fraser River
First Nations, commercial fish-
ers, re c reational anglers and
environmentalists, has been dis-
cussing the idea of a smaller
opening that would limit the
number of boats that go out or
the time that those boats have
to harvest fish. The Sto:lo are
also seeking to protect the
Cultus Lake salmon.
“ ( P rotection of declining
species) requires a new way of
managing our fisheries,” says
Kelly.“It requires the regulators
– the Department of Fisheries
and Oceans – to step up to
the table and manage fisheries
Canfisco’s Morley says the
c o m m e rcial industry has
already changed many of its
The industry has re d u c e d
exploitation rates, which refer
to the catch of spawning fish
on the Fraser, to 40 to 50 per
cent for sockeye and 20 to 25
per cent for other species, from
as high as 70 per cent.
He adds a quota system could
provide incentives to fish more
selectively in return for a larger
allocation of fish.
operator Rocky Mountaineer
Vacations Inc. is providing the
Pacific Salmon Fo u n d a t i o n
with $400,000 over eight years
to find ways to enhance the
awareness of train passengers
about the salmon industry and
restore fish habitat.
Rocky Mountaineer pre s i-
dent and CEO Peter Arm-
strong says the company has an
obligation to “give something
back” because its trains roll
along rivers and serve wild
Armstrong also has a person-
al motive: He says he wants to
be able to take his grandson
fishing in the future. If all com-
panies fulfil their obligation to
look after the land and salmon,
he adds, the bounty that the
fish provide people will contin-
ue well into the future.
“Sometimes it’s just our
ignorance (that prevents the use
of new fishing technologies and
Page 10 July 27, 2007
Storied CP Rail’s doors are open for new owner
Icon rejected Canadian Pacific Railway has
become the latest buyout can-
Inc., a company formerly
known as Brascan.
provinces together to form a
own rail passenger cars, making
it second only on the continent
takeover bid, but didate and could soon join a
growing list of Canadian busi-
But CP Rail indicated the
doors remained open for future
As part of the deal, Nova
Scotia and New Bru n sw i c k
to the Pullman Co. of Chicago.
The Canadian Pacific con-
m o re expected ness icons taken over by foreign
companies or private investors.
discussions, which means it
could be only a matter of time
were promised a railway to link
them with the two central
glomerate was split up in late
2001 and CP Rail became an
An imminent takeover of the before the 120-year-old freight Canadian provinces – Quebec independent company widely
The Canadian Press operator of Canada’s second- hauler gets a new owner. If it’s and Ontario. owned by retail and institution-
largest railway isn’t in the cards, not Brookfield, it could be It was the promise that a al investors.
Created more than a century as the Calgary company con- other private investors, or one transcontinental railway would The rail operator was the last
ago with the mission of helping firmed it had rejected takeover of many U.S. rail companies be built within 10 years that of Canadian Pacific’s main
build a nation by uniting its discussions with Toronto-based looking to integrate their oper- brought British Columbia into operating companies that were
people from coast to coast, Brookfield Asset Management ations in a continental network. Confederation four years later. spun off – which included
If CP Rail is acquired by a On Oct. 21, 1880 a group of PanCanadian and Fo rd i n g
foreign buyer, it would join Scottish-Canadian businessmen Coal, CP Ships and CP Hotels
‘Narcissistic’ CEOs Inco, Dofasco, Falconbri d g e,
Alcan and Hudson’s Bay Co.
to be swallowed up by U.S.
finally formed a viable syndi-
cate to build a transcontinental
railway. The Canadian Pacific
– to remain independent.
CP Rail now operates in
Canada and the U.S. with a
like to roll the dice or overseas companies. Mean-
while, BCE Inc. is in a deal to
be acquired by the Ontario
Railway Co. was created on
Feb. 16, 1881.
The engineering feat was
22,500-km rail network that
serves the principal centres of
Canada, from Montreal to
CP/AP highest company official. Teachers pension fund. completed on Nov. 7, 1885 – Vancouver and the U.S. north-
They also looked at tran- While many of these compa- six years ahead of schedule – east and midwest re gions.
The bigger the ego, the scripts of interv i ews with nies have been business icons when the last spike was driven Alliances with other carriers
wilder the ride. CEOs to study how often a for decades, few have the sto- at Craigellachie, B.C. extend its market re a c h
Companies led by narcissistic first-person singular pronoun ried history of CP Rail, found- The Canadian Pacific Rail- throughout the U.S. and into
CEOs tend to make more fre- was used. ed in 1881 to link Canada’s way grew into Canada’s first Mexico.
quent strategy changes and Hambrick and Chatterjee populated centres in the East c o n g l o m e r a t e, to include The company employs about
larger acquisitions, according to developed an index, ranked the with the relatively unpopulated hotels, real estate, shipping, and 16,000 people and carries
a new study by Penn State CEOs according to their levels West. oil and gas businesses. everything from grain and coal
University researchers. of narcissism and analysed The idea first surfaced in July CP Rail built some of its to lumber, potash and manufac-
“More narcissistic CEOs company performance. Their 1867, when Canada’s Confed- own steam locomotives as early tured goods such as cars, appli-
gravitate to bold and highly study will be published in the eration brought four eastern as 1883. It would later build its ances and furniture.
v i s i ble choices,” writes Penn January 2008 edition of the
State management Pro f. journal Administra t i ve Science
Donald Hambrick and gradu- Quarterly.
ate lecturer Arijit Chatterjee.
“Thus, narcissism may be
Hambrick had consulted in
the computer sector before, so
Looking for top value for your
thought of as an ingredient that he focused on that business
stimulates distinctive, extreme
because he had a hunch there
might be a variation among
But the moves do not always executives’ egos, he said.
amount to success.
“The greater the narcissism,
the more extreme the com-
He credits former Chrysler
chairman Lee Iococca as being
the forefather for today’s flashy
Look no further!
panies’ performance will be. CEOs. With its editorial excellence and unrivalled distribution, Business Edge News Magazine
Big wins or big disasters,” The style has also been presents an affordable and highly effective vehicle through which your business can speak
Hambrick said. encouraged by factors includ- directly to a massive audience of high-income consumers and business decision makers.
While there might be more ing increasing emphasis on
ups and downs, companies led “pay-for-performance” stock Compelling editorial content has always been a foundation of our business, but
by more narcissistic CEOs options and a company’s will- the Edge’s distribution to 180,000+ Canadian companies truly sets us apart from
don’t do better or worse overall ingness to hire executives from
than companies with less nar- the outside, he said.
cissistic executives, the study Charles Elson, director of the Business Edge advertisers can target any or all of our four editions
found. “It’s just a wilder ride,” Weinberg Center for Corporate
Hambrick said. Governance at the University (Ontario, Man/Sask, Alberta and B.C.), reaching the majority of business addresses
Researchers measured the of Delaware, said he wasn’t sur- in the major centres. There is always comprehensive coverage of the downtown districts
n a rcissism of 111 CEOs of prised by the study’s findings. in Toronto, Vancouver, Calgary and Edmonton. Rotating distribution, meanwhile, ensures
computer software and hard- “This only emphasizes the that over the course of two issues advertisers can reach about 98 per cent of business
ware companies using indica- need for strong independent addresses through Canada Post in all of the cities below.
tors including the prominence boards to monitor these indi-
of a CEO’s photograph in a viduals,” Elson said.“This really Minimum number of businesses reached per edition*:
company annual report, the fre- makes the point for effective
quency of a CEO’s name in a corporate governance pro c e- Toronto 33,000 Winnipeg 9,300 Calgary 28,000 Vancouver 26,000
press release and the executive’s dures in publicly traded com- Mississauga 11,200 Saskatoon 3,100 Edmonton 14,500 Richmond 4,200
pay compared to the second- panies.” Markham 3,900 Regina 2,900 Red Deer 1,800 Surrey 4,300
Ottawa 10,700 Grand Prairie 1,300 Burnaby 2,300
London 5,250 Fort McMurray 1,250 New Westminster 1,600
Maple Leaf to close pork plant Banff
The Canadian Press Toronto-based food company Kelowna 2,500
says. Vernon 1,100
Maple Leaf Fo o d s Maple Leaf says it expects to
(TSX:MFI) says it will close its provide other positions for the * Individual city circulation numbers are all more than 50% of total business addresses per city based on Canada
Post unaddressed mail data as of Sept. 1, 2006.
Marion Street pork-processing salaried employees currently at
operation in Winnipeg in the Marion Street plant.
October and move the work to Some of the hourly workers Contact us now for more information
its plant in Brandon. will have a chance to work at on advertising in Business Edge
The Marion Street operation other Maple Leaf plants. Others
employs 145 people and will get financial support and 1.866.216.3343 ext 25
processes between 15,000 and outplacement and employment Ads@BusinessEdge.ca
20,000 hogs per week, the counselling services.
July 27, 2007 Page 11
Securities law enforcement seen as weak
The Canadian Press He also said it revealed that which promote, sell and then
QUOTE . . . police and prosecutors lack the manipulate stocks to rip off
Canada’s securities law specialized knowledge of capi- naive investors, are much easier
enforcement system has failed tal markets they need to deal to operate in Canada than in
in three years to bring any
major cases to trial – including
“In Canada, we are not doing our with white-collar crime.
“Shareholders are unhappy
the U.S., Lamoureux said.
The Cory-Pilkington report
that of Conrad Black – and part to crack down on white-collar about being unable to obtain was discussed at a conference
needs significant improvements crime.Very few people have been compensation for losses caused last month on securities law
before it will carry any weight, by wro n g d o i n g ,” Lamoureux enforcement at Osgoode Hall,
legal experts say.
In the past few years, Canada
convicted in Canada. ” wrote.
And Canadian legislators are
at which Jim Flaherty, the fed-
eral finance minister, called for
has poured $120 million into – Claude Lamoureux, apathetic about white-collar a national securities regulator.
an RCMP securities enforce- president and CEO of the crime, he said in an interview. Meanwhile, more suggestions
ment project with nine teams Ontario Teachers’ Pension Plan “In Canada, we are not doing for improvement are expected
across the country. our part to crack down on soon from Nicholas LePan, a
But it won’t be successful, capacity and could not take on In a recent art i c l e, Lam- white-collar crime. Very few former superintendent of
critics say, unless it follows five another important case,” she oureux heaped praise on the people have been convicted in financial institutions, who is
recommendations from a wide- said. “There isn’t capacity else- Cory-Pilkington report, noting Canada,” said Lamoureux, who studying the effectiveness of the
ly cited recent re p o rt co- where in the system to take on it found many high-pro f i l e argues the solution lies with RCMP teams.
authored by former Supreme these cases. Most municipal and cases in Canada have gone Parliament. Meanwhile, pensioners have
Court justice Peter Cory, now p rovincial police forces are unprosecuted, there are few real “Our laws need to be formed a new group to lobby
chancellor of York University, focused on other issues.” deterrents to insider trading, changed to make it easier. for better enforc e m e n t . The
and Marilyn Pilkington, a pro- Meanwhile, Claude Lam- investigations are not managed Somehow we don’t think this is Common Front for Retire-
fessor at York’s Osgoode Hall oureux, the president and CEO effectively and “securities com- important. Everyone’s blaming ment Security, announced last
Law School. of the Ontario Teachers’ missions as both regulator and the other guy and in the end week, is an umbrella organiza-
Cory and Pilkington said the Pension Plan, said the problem adjudicator have the appear- nothing gets done.” tion of seniors’ and re t a i l
RCMP integrated market is systemic. ance of bias.” For example, boiler rooms, investor associations.
enforcement teams (IMETs),
which also include civ i l i a n
financial experts, have so far not
accomplished much for several
■ Commercial crime isn’t seen
as an urgent priority and
RCMP officers tend to be
seconded to other units and
projects, draining resources.
■ RMCP officers who seek
promotions for career reasons
must leave the unit to move up
to a higher rank, disrupting
■ The units need an independ-
ent senior supervisor, such as a
former pro s e c u t o r, to ke e p
cases tightly focused and mov-
■ The teams need more civilian
financial experts to bolster their
■ T h e re has been a high
turnover at the senior com-
mand level; each new com-
mander needs to be educated
about the unit and its impor-
“What they have done has
not engendered confidence,”
Pilkington said in an interview.
“They haven’t established they
are effective. One of the key
things is to have accountability
and discipline in the investiga-
tion. There has to be someone
who can exe rcise tight ac-
countability. Nail it down and
get moving. The investigations
can’t drag on and on.”
So far, there is no independ-
ent person, from outside the
RCMP, doing that, she said.
Long investigations are unfair
to suspects and are ineffective
deterrents, Pilkington said.
“The establishment of inde-
pendent market enforc e m e n t
teams created the expectation
that important capital markets
frauds would be investigated,
but when they had taken on
nine or so cases, they then
advised that they we re at
FRANCHISE Page 12 July 27, 2007 EARN 14% AFTER TAX PAID
See page 7
★ 1: THOMSON CORP. ★ 2: TSX GROUP INC. ★ 3: NUVISTA ENERGY LTD.
Pynn struggles to pick out bargain stocks
stock could be range-bound with the TSX to lower their THIRD STAR
Sees financial PRO’S 3 STARS and there are going to be a fees.We think there could be ■ NuVista Energy Ltd.
lot of approvals that they’re some reduction in their (TSX:NVA)
services sector interest rates, while other going to need to put the profitability going forward, but ■ Recent Price: $13.95.
groups in the market have two companies together. we also think that they will ■ 52-Week Range:
as ‘place to hide’ continued to move up. I think The stock has been a little bit still remain very profitable and $11.14-$16.47.
that (the financial services sec- sloppy since the announce- continue to grow. Starting in ■ Snapshot: NuVista is
(Business Edge writer Sasha tor) is a good place to hide.” ment of the acquisition, so 2009, they will be able to get an independent oil and
Konotopetz regularly profiles the we think it’s a good time to into derivatives – they have a natural gas exploration
top stock picks of some of FIRST STAR buy.” deal with the Montreal and production company
Canada’s most accomplished ■ Thomson Corp. ■ Risk Rating: Moderate. Exchange that prevents them with properties located in
investment pros.) (TSX:TOC) ■ Web Watch: from competing with that east-central Alberta and
■ Recent Price: $45.80. www.thomson.com exchange – so they have some west-central Saskatchewan.
FEATURED PRO: Fred ■ 52-Week Range: longer-term growth potential. The company produced
Pynn is president, chief $42.50-$51.95. SECOND STAR The company has no debt, 11,692 barrel of oil equivalents
investment officer and a ■ Snapshot: Thomson is a ■ TSX Group Inc. (TSX:X) very strong cashflow, a large per day of oil and natural gas
portfolio manager with global provider of integrated ■ Recent Price: $42.57. cash balance and you get a combined in 2006.
Calgary-based Bissett information solutions to ■ 52-Week Range: 3.5-per-cent dividend yield ■ CEO: Alex Verge.
Investment Management businesses and professional $40-$53.47. while you wait.” ■ Head Office: Calgary.
(www.bissett.ca). customers in the fields of ■ Snapshot: TSX group ■ Risk Rating: Moderate.
Fund Form: The tax, law, accounting, financial operates Canada’s two national ■ Web Watch: www.tsx.com See 3 STARS Page 17
Bissett Canadian services, scientific stock exchanges:Toronto Stock
Equity-A Fund research and health Exchange, serving the senior
has a one-year care. equity market, and Toronto
return of 19.1 per ■ CEO: Richard Venture Exchange, serving the
cent compared to Harrington. public venture equity markets.
the group average ■ Head Office: The company also operates
of 19.5 per cent Toronto. Natural Gas Exchange, a lead-
(through June 30, ■ Vital Stats: ing North American exchange
2007).The fund has Price/Earnings for the trading and clearing of
an annualized return Ratio, 29.9; natural gas and electricity
of 8.8 per cent since Revenue (last 12 contracts, and Shorkan Brokers
its inception in mos), $6.5 billion; Ltd., which is the country’s
March of 1983. Fred Pynn 5-Yr Revenue first fixed-income inter-dealer
Management Growth, -1.7 per broker.
Expense Ratio: 2.6 per cent. cent; Earnings (last 12 mos), ■ CEO: Richard Nesbitt.
Pynn’s Strategy: “It’s been $990.4 million; 5-Yr Earnings ■ Head Office: Toronto.
harder to find stocks (recently) Growth, 12.7 per cent; Market ■ Vital Stats: Price/Earnings
and this is mostly because the Cap, $29.3 billion; Shares Ratio, 22.1; Revenue (last 12
market is so strong.The Outstanding, 640.3 million; mos), $366 million; 5-Yr
(S&P/TSX Composite Index) Dividend Yield, 2.23 per cent. Revenue Growth, 14.4 per
hits new highs almost every ■ Pynn’s View: “Thomson cent; Earnings (last 12 mos),
day.The stock market is going has sold virtually all of their $133.2 million; 5-Yr Earnings
up faster than earnings, so businesses that distribute on Growth, 34.3 per cent; Market
valuations are increasing, and paper, so their (distribution) is Cap, $2.92 billion; Shares
this is occurring against the almost completely electronic. Outstanding, 68.6 million;
backdrop of higher interest In the short run, the issue that Dividend Yield, 3.57 per cent.
rates, so it’s getting much more could hold back the stock a bit ■ Pynn’s View: “This stock
difficult to find stocks to buy is their acquisition of (Reuters has been punished because the
at this point in time. Group). Basically,Thomson banks are talking about setting
“This year, financial services and Bloomberg will be the up an alternative trading plat-
stocks are approximately flat main (information solutions) form for equities in Canada.
against a market that is up providers to the financial The stock has been under
quite substantially year to date. services sector, globally.The pressure because of potential
I think the financial services fit between Thomson and competition, but we think that
sector has already felt some of Reuters makes a lot of sense, the competitive threat is quite
the pain from the higher but because the deal is a com- small.This could turn out to
Canadian dollar and higher bination of cash and shares, the be just a way of negotiating
July 27, 2007 Page 13
Page 14 July 27, 2007
Constellation basks in glow of a lucky star
(Street Life is a regular feature heading into a curve.Tech-
that profiles what’s playing in the CONSTELLATION SOFTWARE ROYAL LASER CORP. nology like that can make for a
stock market.) sweet ride; especially for share-
holders, who must be loving
By Nicole Strandlund the stock’s new 52-week highs.
Business Edge Act IV: Trouble for
Act I: Dancing ■ The player: Teknion
with the stars Corp. (TSX:TKN)
■ The player: Constellation ■ Action: Down 24 per
Software Inc. (TSX:CSU) cent or $0.70 in a month
■ Action: Up 17 per cent (from $2.90 June 13)
or $4.01 in a month (from ■ Recent Price: $2.20
$23.98 June 13) ■ 52-week high/low:
■ Recent Price: $27.99 $4.80/2.20
■ 52-week high/low: Weakening industry growth
$27.99/19.50 and the negative effect of
A constellation’s star count INTERMAP TECHNOLOGIES TEKNION CORP. exchange rates resulted in an
may grow as astronomers ugly quarterly financial release
make new discoveries in the for Toronto’s Teknion Corp.,
sky, but Toronto’s Constellation an office systems and related
Software may be setting a office furniture company.
record for growth-by- For the quarter ending May
absorption. 31, 2007, sales were $166
At the end of May, the million, fairly close to the
vertical market software com- $164 million in the same quar-
pany completed (through a ter in 2006. But the net earn-
subsidiary) its fifth acquisition ings tell the story; $150,000
in 2007, and the 11th since for the 2007 quarter, com-
Constellation went public in pared to $5.8 million in the
May 2006. Granted, some of same quarter the previous year.
those acquisitions have been As if that wasn’t enough
small – but not all stars are the posted a net loss of $3.9 when you stepped on a floor trouble for Teknion, the com-
STREET LIFE: million for the fiscal year. switch to turn your brights pany also announced a financial
The purchase in May in- ANALYSIS In March 2007, Royal Laser on? Times have changed. And restatement. An inventory
volved the business assets of also chose to turf plans to they’re changing still. valuation error in Teknion’s
AEK Computers , a small ■ Action: Down 16 per acquire the creditor-protected Denver-based Intermap Malaysian subsidiary resulted in
Illinois-based software firm cent or $0.11 in a month assets of Hamilton Specialty Technologies, which has offices a $6.1-million inve n t o ryover-
focused on the recreation (from $0.67 June 13) Bar Corp., as a result of failed in Calgary and Ottawa, has statement at Nov. 30, 2006, and
industry and government agen- ■ Recent Price: $0.56 negotiations with its labour been humming along building overstated net earnings of
cies. In mid-June, Constellation ■ 52-week high/low: union, United Steelworkers a database of digital geometric $260,000 for Q2 2006 and
shelled out again, this time $1.39/0.56 Local 4752. maps that include elevation $239,000 for the six months
making a US$4-million invest- “Challenging” rarely means Royal Laser’s stock recently data. And a few days ago, the ending May 31, 2006. (2006
ment in Atlanta-based VCG positive news in a financial hit a new 52-week low at company announced a deal to sales and net earnings nu m b e rs
Inc., a supplier of staffing and release. But how else could $0.56. Getting back up? That’s supply 3D elevation data and above are as restated.)
recruiting software. Royal Laser describe its past the real challenge. geometries for the entire The stock is down 24 per
But why stop at 12? Con- fiscal year? Act III: Bright future country of Germany to Visteon cent in a month, and has lost
stellation acquired lucky 13 in During the twelve months ■ The player: Intermap Corp., an international auto- more than half its value in less
July, buying Maryland-based ending March 31, the Toronto- Technologies (TSX:IMP) motive technology developer. than four months (from $4.55
Mainstreet Software Corp. based custom metal and ■ Action: Up six per cent No, this won’t turn into March 21, 2007).
As a result, shareholders must wood products manufacturer or $0.37 in a month (from another dash-mounted route NOTE: The above is not
be thanking their lucky stars – acquired Venture Steel Inc., $6.23 June 13) planner. Instead, the initial intended as investment advice
the stock is up 17 per cent in which brought increased ■ Recent Price: $6.60 focus of the joint project is for to buy or sell any mentioned
the last month, and 53 per revenue (pushing the 12- ■ 52-week high/low: predictive adaptive front-light- securities. Investors should do
cent since going public (from month result to $240 million), $6.50/4.20 ing systems.That’s right – the due diligence before investing.
$18.30 on May 19, 2006). but was affected by a weak Remember the days when car of the future will anticipate Quotes are based on results
Act II: Limping Laser North American auto industry, you had to turn your driving the road ahead and direct its through July 16, 2007.
■ The player: Royal Laser resulting in lower-than- lights on manually? Or, heaven headlights to afford the driver (Nicole Strandlund can be
Corp. (TSX:RLC) anticipated sales. The company forbid, the really olden days better visibility, even before reached at firstname.lastname@example.org)
July 27, 2007 Page 15
Oh stop, we’re blushing!
We at Business Edge News Magazine would like to say THANK YOU to the companies
that have been bold enough to advertise in a relatively young publication
with edgy, highly relevant editorial and unrivalled distribution to Canadian businesses.
We would also like to say YOU’RE WELCOME . . .
“Marketing through Business Edge has always been very successful for us. thinkprofits.com began advertising in your paper, our business has
I have been using it now going on two years and find it directs mostly grown exponentially, attracting new clients from all over Canada. This has
qualified leads to us. Ninety per cent of our business over the past two years confirmed to us that our decision to participate in your product was a sound
has come from our Business Edge advertising.” one. I look forward to a long and happy relationship.”
– Ken Purvis, – Shawn Moore, President/CEO,
Retailink International ThinkProfits.com
“Everyone here is amazed with the amount of leads that come out of our “Business Edge News Magazine has increased our company’s exposure
Business Edge advertising. You seem to have found an excellent formula significantly. Business Edge’s feature on investing in clean & sustainable
(strong business coverage combined with your unique distribution) to reach geothermal energy and our trade show exposure resulted in considerable
that highly sought-after SME decision maker.” buying into our company.”
– Paul Emond, – Gary Thompson, President & CEO,
Versature Corp. Sierra Geothermal Power Corp.
“Targeted distribution, coupled with factual and appealing editorial, has “We have never had better response to an ad than from our 1/3-page ad in
positioned Business Edge as a reputable publication and the perfect vehicle Business Edge News Magazine. Not in the Globe & Mail, not in Western
for us to reach the corporate industry. The publication has consistently acted Standard, not in National Post. It shows the quality of the readership and the
as a results-driving tool for us.” effective ad-creation team.”
– Sheenah Rogers, – Thomas Beyer, President,
Three Sisters Mountain Village Ltd. Prestigious Properties Group
“The quality of The Business Edge is reflected in the quality of readers “I originally contacted Business Edge because of its reputation as the leading
that call us every time they read about League in its pages. League is very business publication in Alberta and was pleasantly surprised to learn that it
selective about the investors we invite to join us in our private REIT and we was launching a localized version in B.C. I have advertised two projects in
couldn’t be happier with the results we’ve achieved thanks to this fine news the Edge and both campaigns delivered excellent returns on investment,
magazine. Every ad brings an excellent return on our investment. The value consistently delivering qualified leads from all over the western provinces.”
we receive is tremendous.” – Mia Crouch,
– Emanuel F. Arruda, Chairman & COO, Real Estate Project Sales and Marketing Specialist, Victoria
League Assets Corp.
“We are trying to build a premium brand. To do that we need to select media
“We couldn’t be happier about our decision to advertise with Business Edge. and programming that supports and shares our positioning. Business Edge
As a growing company, we need measurable results from our advertising delivers on editorial content, readership and reproduction, which puts our
dollar. We advertise in a wide variety of business publications, but we brand in the right environment.”
continue to receive more qualified leads from our Business Edge ads than – Bob Anderson,
from any other source. Additionally, no other publication has offered more Okanagan Hills Development Corporation
creative input into our advertising campaigns than Business Edge . . . and
more importantly, they work. For Wardell, advertising with Business Edge “As a reader, Business Edge provides me with the current and critical
has proved to be a sound investment, one that we plan to continue well into information I need to help make successful business decisions. As an
the future.” advertiser, Business Edge provides a successful forum for us to promote our
– Mark E. Wardell, President, projects to critical thinkers and key decision makers throughout Alberta,
Wardell Professional Development Inc. B.C. and Ontario.”
– Christopher J. Wein, Vice President,
“Business Edge has given us access to markets that no other publication has Sales, Marketing & Product Design, Assured Developments Ltd.
been able to deliver to us. We have had many calls from qualified people and
continue to do so. I would recommend this publication for those businesses “As a Canadian-based developer of luxury resort properties in The Mayan
that want good results.” Riviera, Mexico, advertising in Business Edge continues to provide us with a
– Ron Aitkens, wealth of inquiries regarding our various projects from astute investors and
Harvest Capital Management Inc. those considering a second home in North America’s fastest-growing resort
community. The inquiries from Business Edge, on a dollar-for-dollar basis,
“I just wanted to send you a note to say thanks for publishing a high-quality far exceed any other media that Royal Oasis Resorts utilizes.”
publication. It’s challenging for entrepreneurs to make all the right choices in – J. Chris Boehm, President,
allocating their advertising dollars these days. We have print/websites/ Royal Oasis Developments Inc.
search-engine optimization/pay per click/ radio/TV and so much more to
choose from. The simple fact is that we need to advertise in all media to “We have found Business Edge to be an extremely successful marketing
maximize our business growth. The question remains, which ones do we vehicle for our company. A large number of our leads are generated through
choose and for how much of our advertising budget? When choosing which placing ads in this highly respected publication. It has been a great use of
Canadian national business publication to run with, we decided to go with our marketing dollars and we will continue to use Business Edge to market
Business Edge and I must say that I am very happy with the results we have all of our current and upcoming projects.”
achieved. Your writers provide great editorial content and the circulation – Jen Swanton, Vice President of Marketing,
ensures it is well read, right across Canada. Since my company Bridgecreek Development Corporation
Contact us now for more information on how to get the
best value for your marketing and advertising dollars
1.866.216.3343 ext. 25
Page 16 July 27, 2007
Cows, views . . . and room to park the jet
B.C. ranch on
the block for
By Monte Stewart
ome pro p e rty deals
S depend on how many
cars a place can accom-
modate.This one hinges
on room for a plane or two.
The Alexis Creek ranch, near
Williams Lake in the Chilcotin
district of British Columbia,
features a seven-bedroom home
with nine bathrooms, sweeping
rive r f ront views, access to
several lakes and a free herd of
cattle with a few bulls.
But the main dealmaker is
likely a 1,500-m paved landing
strip, complete with heated
hangar, which qualifies as a
federally approved commercial
It’s probably the least that
you’d expect when you consid- Photo courtesy of Cascadia Pacific Realty Ltd.
er the property’s list price is a The asking price for the Alexis Creek spread, near Williams Lake, ranks among the highest for ranches in B.C.’s history.
cool US$23.5 million.
The asking price ranks to American entrepreneur Stan shore before it’s local,” s ay s “I facetiously say that we’ve “Ranchers can’t afford to buy
among the highest for ranches Kroenke, who owns the NFL’s Ridd. got a DOT Class Two airstrip ranches anymore – in a lot
in B.C. history. But the Alexis St. Louis Rams, the NBA ’s The current owner is due for that happens to be surrounded of areas,” says Ridd. “If you
Creek ranch’s listing agent does Denver Nuggets, the NHL’s a nice windfall. He picked up by a ranch,” says Ridd. “It’ll be want to make money and
not sound overly worried about Colorado Avalanche and many the property for less than $5 a destination for (the new own a ranch, you’ve gotta go
a lack of potential buyers. other sports properties. million from German Prince owner) to go and enjoy the to Saskatchewan, Manitoba,
“Some of them take over a But the Alexis Creek price Richard Wittgenstein in 1992. lifestyle of his property.” northern B. C. or northern
year (to sell),” says Irv Ridd, is downright lofty compared “But (the current owner) has The ranch also contains 331 Alberta – somewhere the land
president and CEO of Cascadia to the $5.7 million that added millions of dollars worth acres of housing subdiv i s i o n is more reasonable on a price-
Pacific Realty. “Sometimes, we the famed 4,000-acre (1,600- of infrastru c t u re,” says Ridd. land, about 10 acres of com- per-acre basis.”
get surprised.” hectare) King ranch in south- “He’s added a seven-bedroom mercial business development Ridd says he has not calculat-
He says the likelihood of the ern Alberta sold for in 1997. and nine-bathroom house, a property in the centre of the ed the land cost at Alexis Creek
successful buyer owning a plane Bill Bateman and his son five-bedroom guest house and neighbouring town of Alexis – which has 10,000 deeded
is quite high. Cody, of Cochrane, bought that apartments for his staff, 10 pivot Creek and a substantial bu t a c res and 250,000 acres of
The current owner, a Seattle- place, which was owned by the irrigators and a paved 5,000-ft. unestimated value of timber Crown grazing land, of which
based electronics firm magnate, late reclusive King brothers. But DOT- a p p roved (Department in a region hit hard by the the ranch has exclusive use –
parks his plane there every two Ridd, who has been peddling of Transportation) Class Two mountain pine-beetle epidem- because the price per acre
weeks. But the 70-something c o m m e rcial and “ s u b j e c t ive” airstrip and hangar.” ic. won’t matter to the new owner.
owner has decided to sell in sites for about 27 years, expects Cascadia Pacific Realty is an Ridd says it’s unusual to The buyer will simply want
order to spend more time with the buyer for the rural B.C. exclusive affiliate of Christie’s include cattle in the list price, proximity to a major centre.
his grandchildren. ranch will likely come from Great Estates and will market because cattle have differe n t “It’s only 30 minutes by air-
The $23.5-million list price outside Canada. the ranch, first developed in prices depending on the time craft” f rom the Lower
seems paltry in comparison to “Considering who’s been 1887, through the international of year. Mainland, he adds.
the record $93-million sale of buying ranches the last few firm’s publications and net- But the cows will be, no pun (Monte Stewart can be reached at
the Douglas Lake ranch in 2003 years, my bet is it will be off- work. intended, a moot point. email@example.com)
July 27, 2007 Page 17
Mining companies catch eye of private equity funds
The Canadian Press Last August, Texas Pacific would work for private equity With consolidation, price quicker than commercial banks
G roup bought Aleris Inter- in certain circumstances in cycles are likely to be less in providing funding. It would
Private equity funds are national for US$1.7 billion. industrial and base metals, but volatile and remain at higher allow managers to focus on
poised to move into the boun- And in April, Apollo less so for gold and uranium. levels, allowing for more debt longer-term strategies rather
tiful world of base metals, says a Management bought Xstrata That’s because gold and to be assumed,Topping said. than the quarter-to-quarter
re p o rt from international Aluminum for $1.15 billion. uranium are more expensive. “The re g u l a t o ry env i ro n- basis presently.”
accounting firm Ernst and Slater said he doesn’t know of “You need a low cashflow- ment for mining companies is The pre s s u re to pro d u c e
Young. any private-equity mining deals to-debt ratio for private equity severe and expensive, particu- quarterly profits is clearly pay-
The so-called “barbarians at that have taken place in Canada as they tend to use high lever- larly for startup situations. ing off for metal company
the gate” may have steered clear yet, but said they have already age,”Topping said. Private equity tends to operate shareholders.
of mining in the past by factors begun sniffing around. There
such as the cyclical nature are, however, many candidates.
of the industry, political risks Globally, there is BHP
and the specialist knowledge Billiton, Anglo American, Rio
required, but current cashflows Tinto, Slater said, all of which
in base-metals companies are so have colossal cashflows.
rich they have begun to attract The ideal mining company
interest among equity funds. would have assets in areas with
“If they can buy BCE low political risk, Slater said.
(TSX:BCE), t h ey can bu y “You could see a competing
BHP,” said Ian Slater, who is offer for Alcan (TSX:AL) or
Ernst and Young’s Canadian Alcoa. Inmet Mining Corp.
mining leader, based in (TSX:IMN) is a perfect oppor-
Vancouver. tunity.You also have smaller sin-
“The mining companies have gle-mine companies in Canada
massive cashflows. They’re just such as Taseko Mines Ltd.
churning out cash. They’d be (TSX:TKO) or Northgate
very attractive for private equi- Minerals Corp. (TSX:NGX) in
ty,” Slater said. B.C.,” Slater said.
According to the report, big “Teck Cominco Ltd.
mining companies are now (TSX:TCK.B) would also be
s o u rces of pre d i c t a ble and perfect,” though having two
secure cashflows. classes of shares means chair-
“Major mining companies man Norman Keevil’s agree-
are running out of capital proj- ment to sell would be needed,
ects and are aggressively return- he said.
ing cash to shareholders,” the Since mining companies are
report states. “Several of these already subject to an enormous
organizations have unu s e d amount of environmental and
credit capacity, are consciously other regulations, re m oving
unhedged and are aggressively some of the financial reporting
consolidating . . . If metals requirements of being a pub-
prices remain high, we expect licly traded company could ease
that these characteristics will some pressure on the compli-
only become more pro- ance side.
nounced.” George Topping, senior base-
Two global deals have taken metals analyst with Blackmont
place in the last year, both in Capital, said he broadly agrees
the aluminum sector. that some mining companies
3 STARS from Page 12
NuVista proving to be
energy sector survivor
■ Vital Stats: Price/Earnings opportunistic acquisitions.”
Ratio, 22.4; Revenue (last 12 ■ Risk Rating: High.
mos), $148.8 million; Earnings ■ Web Watch:
(last 12 mos), $30.7 million; www.nuvistaenergy.com
Market Cap, $728.3 million;
Shares Outstanding, 52.2 ■ Pynn’s Edge Record (last
million. 12 mos): -0.4 per cent.
■ Pynn’s View: “(NuVista) is Best Pick: Alliance
a very low-cost producer, with Atlantis Communications
excellent management and (TSX:AAC.B) +37.4 per
offers steady growth, but the cent. Worst Pick: Kingsway
reason I would look at buying Financial Services Inc.
the stock today would be the (TSX:KFS) -22.6 per cent.
fact that natural gas prices are
all beaten up.This company is Disclosure: Pynn owns
a survivor. In fact, if natural gas shares in the Bissett funds in
prices go even lower, that which the featured stocks are
could cause financial distress in held.
the industry, and with the (This feature is provided for
strong finances and manage- informational purposes. Investors
ment team that NuVista has, are advised to do their own
that will just provide them research or consult a qualified
with opportunities to grow investment professional before
their business by making making investment decisions.)
Use Someone Page 18 July 27, 2007
See Page 2
Employee engagement a hot-button issue perspective of what it returns to
Companies face daunting task QUOTE . . . the business.”
The re t u rn on investment
to keep workforce productive (ROI) from staff training is sig-
By Rene Mauthe The remaining 20 per cent of
“If you can win the nificant; studies in Australia and
Ireland across a wide range of
Business Edge employees who aren’t engaged war for retention, enterprises found ROIs for
are the ones that truly test an training ranging from 38 per
the war for talent is
n today’s hyper-competi- organization’s leadership, she cent to more than 100 per cent,
tive employment market,
finding the right employ-
The effects of improving
immaterial. If you the Connecting the Dots study
ees is a big challenge. employee engagement are tan- don’t have too many Bailey notes that staff training
But keeping an existing gible, Goman notes. has to be directed toward busi-
wo r k f o rce pro d u c t ively en- “Engaged employees stay. empty spaces to fill, ness goals, and that senior man-
gaged in their work, while They’re more likely to speak agers shouldn’t worry about
making sure staff have the most highly of the company. They’re
you don’t have to – Sean Slater, their staff taking flight once
current training and skills, is
also a daunting task for many
more likely to refer their
friends for jobs.
compete for talent. ” national practice
director with Ceridian
Canada, a national
t h ey re c e ive extra training.
Giving an employee the oppor-
Canadian companies. “When you add all of this tunity for extra training and
Experts agree that this together, it becomes a very big employee benefits enrichment typically bu i l d s
involves different but comple- piece of the productivity and and human loyalty, he adds.
mentary strategies that will help p rofit picture. Engagement resources firm However, many small to medi-
boost productivity and a com- leads to higher performance, um-sized enterprises lack the
pany’s bottom line. which leads to higher produc- ing only now that a lot of our have combined to push staff managerial or human resources
“If you can win the war for tivity and profits.” pro d u c t ivity pro blems are training to the lower echelons expertise to develop proper
retention, the war for talent is Productivity and profits are traced to a lack of emphasis on of many organizations’ long- training systems, Bailey notes.
immaterial,” says Sean Slater, also tied to increased training, training,” he says. term agendas. Ceridian Canada’s Slater says
national practice director with s ays Allan Bailey, CEO of “More and more these days, “Typically, historically, train- a focused staff-training system
Ceridian Canada, an employee Learning Designs Online, a you need employees who are ing has been seen as a soft ben- can become an integral part of
benefits and human resources training firm based in able to compete in the knowl- efit to an organization. It has an employee assistance program
firm. “If you don’t have too Mississauga. edge economy. been, until relatively recently, (EAP).
many empty spaces to fill, you Bailey recently completed a “In Canada, something like very difficult to imagine how The presence of a compre-
don’t have to compete for tal- study for the Canadian Council 40 per cent of the Canadian to measure the value of your hensive EAP can also help deal
ent. on Learning’s Work and workforce has not (achieved) investment in training. with the personal issues that
“It’s about what you can do Learning Knowledge Centre the level of skills needed to “In company accounting, it’s can sap an employee’s morale
to add to the employee experi- called Connecting The Dots . . . compete effectively in the kind of counted as a hidden and productivity, he adds.
ence so employees are more Linking Training Investment to knowledge economy.” cost, a discretionary cost. It’s
likely to stay with you. Part of it Business Outcomes and the B a i l ey says several factors never been looked at from the See @WORK Page 19
is creating an environment they Economy.
want to work in.” One of the study’s key find-
With re c ruitment and ings was that Canada’s econom-
replacement costs ranging any- ic growth has been lagging pre-
where from three-quarters to cariously behind that of its
1.5 times an annual salary per major competitors, such as the
employee, companies have to U.S. “It seems clear that this
make sure their employees per- downslide is rooted in a chron-
form at their best, he adds. ic national blindspot – a lack of
“You’ve spent all this time to awareness that investing in the
get these employees. What are human capacity of Canada’s
you going to do to wrap your workforce is paramount to suc-
arms around them?” he says. cess,” the study says.
E m p l oyee engagement – Bailey notes that even a basic
making sure that staff care comparison highlights the
deeply about their work and training shortfall.
their organization – has “Less than 30 per cent of all
become a hot-button issue for Canadian working people ever
many firms, says Carol Kinsey receive training,” he says. “In
Goman, a California-based this economy, this puts us in a
change management consult- rather invidious situation vis-à-
ant. vis our competitors. In the
“Engagement levels are going U.S., about 45 per cent of
down in every industry. That’s workers receive training.
because the economy is going “It dovetails with other wor-
up and job opportunities are rying statistics that have been
out there.” floating through the ether over
The percentage of the work- the last number of years. One of
force that is engaged and high- them is Canada’s productivity
ly committed to making their growth, which is about a quar-
organization succeed is only ter that of the U.S. and has been
about 29 per cent, Goman says. for the last decade.”
Another 50 per cent are not Canada’s competitive n e s s
engaged, but they’re not disen- slipped from sixth place in the
gaged, either. “They don’t real- late 1900s to 15th place as of
ly give a lot of effort to what 2004, Bailey notes.
they’re doing.” “In Canada, we’re recogniz-
July 27, 2007 Page 19
Entrepreneur takes charity to new heights
Shamba Space, aside from the
Corporate HQ indirect benefits of raising its
corporate profile in the business
features special community.
The first Shamba Night Patio
‘Shamba’ space Party will take place on July 31
with an event for Little Geeks,
for local events a new Toronto-based charity
that collects, refurbishes and
By Eli Schuster redistri butes donated home
Business Edge computers to disadvantaged
n t h o ny Lacavera Andy Walker, founder of
doesn’t just believe Little Geeks, said that “Shamba
in donating his time came along at a perfect time”
and money to for his organization, which is in
worthwhile charities. He is the process of raising money for
incorporating philanthro py its long-term future.
into the operating culture of his Since Little Geeks is looking
business and into the daily lives to partner with local high-tech
of his employees. companies,“downtown space is
Lacavera, 33, is the founder critical” for fundraisers.
and CEO of nine-year-old He estimated that his group
G l o b a l ive Communications would have to spend between
Corp. $3,000 and $5,000 for a typical
With 175 employees in venue in downtown Toronto to
Toronto and another 50 in hold a comparable fundraiser.
sales offices across the country, Catherine Farquharson photo courtesy of Globalive Communications “This is magic for us,” said
Globalive operates under two Walker, adding his group is
Globalive founder and CEO Anthony Lacavera takes a break in the space set aside for charities.
main brands: YAK Commun- “trying to fill our coffers and
ications, which handles a full f u n d r a i s e r, L a c avera noticed word for “farm,” the Shamba points because “downtown is get on our feet.”
array of long-distance calling that many of his own employ- Space offers charities a heated, key.” Little Geeks can raise an
cards and cellular long-distance ees wanted to help out. This environmentally friendly cedar, It is a five-minute walk for impressive $200,000 by selling
services to residential cus- incident gave him an idea that bamboo and traventino stone tens of thousands of com- two hundred $100 tickets –
tomers; and One Connect, would make charitable work “urban farm” overlooking Lake mu t e rs, and it could easily enough to make a long-
which offers hosted VoIP serv- fun and easy for them, and Ontario and the lights of attract wealthy, upwa rd l y term rent commitment and
ices to 5,000 small businesses make philanthropy a part of downtown Toronto. mobile professionals looking become established.
across Canada. Globalive’s daily routine. Shamba Space provides char- for an after-work destination. Wa l ker said his group is
Lacavera founded Globalive Globalive ’s new corporate ities with a first-class venue, As the head of a private com- thinking of branching out into
one year after finishing a cor- headquarters at Yonge and including catering, a full pany, Lacavera did not want to the Niagara region, and has
porate engineering degree at Wellington – in the heart of kitchen, 14-ft. glass bar, three discuss numbers. spoken to individuals in Los
the University of Toronto. Toronto’s financial district – meeting rooms, security card Asked about the amount of Angeles, Oklahoma City and
Globalive and Lacavera have a includes a 2,500-sq.-ft. outdoor access and a state-of-the-art money Globalive invested in Florida who are interested in
history of philanthropy. patio “Shamba Space” on its audio-visual system featuring Shamba, Lacavera described it developing similar projects.
O n c e, while serving as a 12th floor that can be used by an LCD pro j e c t o r, DVDs, as “sizable” and reluctantly put The Shamba Space has also
sponsor for the Art Gallery of local charities at no cost. Internet display options, a 60- it “well into the hundreds of been booked for fund-
Ontario’s “ M a s s ive Party” Named after the Swahili in. plasma screen TV and 10 thousands of dollars,” adding raisers for Habitat for Hum-
smaller television sets. that it would likely cost “tens of anity and POGO, a children’s
@WORK from Page 18 The space can be used for a thousands of dollars” to rent cancer charity.
sit-down dinner of 80 to 100 out a similar ve nue for an Interested charities can call
‘Soft stuff’ helps improve people, or a cocktail party for
Lacavera thinks the location
Lacavera said that Globalive
re c e ives “no direct financial
1-877-SHAMBA-1 or visit
(Eli Schuster can be reached at
company’s bottom line is one of the biggest selling benefit” from establishing the firstname.lastname@example.org)
“Every day, 30 per cent of
an employee’s effort at work is
discretionary. It’s really contin-
Slater says. “It really comes
down to helping
managers. A good full-service
Paper appoints interim publisher
gent on the level of engage- EAP is providing as many Business Edge McDonald Dickson as
ment if the employer’s going to services to managers as it is MOVING ON project officer.
get that 30 per cent or not,” to their employees and their FP Newspapers Income McDonald Dickson comes
Slater says. families. Fund (TSX:FP.UN) says and CEO of its mutual fund with extensive agricultural
“Presenteeism – showing up “Ultimately, that is going to Winnipeg Free Press publisher dealer subsidiary Rice experience including recent
at work and not really being drive the business results the Andrew Ritchie has resigned, Financial Group Inc. Velan- employment with the
there – is a huge expense and employers are searching for.” effective immediately.The off has held various senior Manitoba Pork Council.
huge risk to any company.” Carol Kinsey Goman agrees fund said Ritchie “will now be positions over the last 30 years McDonald Dickson succeeds
M a ny factors can pull an that astute managers and pursuing other interests.” with a number of mutual fund Kristin Yaworski-Lowden,
employee’s attention away, organizations need to focus on Bob Cox, the newspaper’s dealers, investment dealers and who takes the new position of
including illness, c h i l d - c a re the “soft stuff ” to help boost editor, has been appointed insurance providers. value chain co-ordinator.
issues, financial pressures, drug productivity and the bottom interim publisher. Jovian is a management and MRAC is a private, not-
and alcohol abuse, and family line. The Winnipeg Free Press, holding company with inter- for-profit organization that
concerns, he says. “When you show people owned by FP Canadian ests in a variety of financial provides funding for sustain-
We l l - d eveloped EAPs can they’re not just cogs in a Newspapers Limited service firms specializing in able projects to advance the
become a powerful tool for machine, that they’re individu- Partnership, publishes seven wealth and asset management. agriculture and agri-food
managers and supervisors as als with lives outside the organ- days a week, with an average Its head office is in Winnipeg industry in Manitoba. Its head
t h ey work to retain and ization, you’re going to find seven-day circulation of about and its executive office in office is in Winnipeg.
d evelop their wo r k f o rc e, he your engagement scores zoom- 124,000 copies. Toronto. – with files from
adds. ing and your productivity and ■ ■ ■ ■ ■ ■ The Canadian Press.
“The ‘bumper sticker’ around profits going up.” Jovian Capital Corp. The Manitoba Rural (E-mail notices and photos at
that is people don’t quit their (Rene Mauthe can be reached at (TSXV:JVN) has named Adaptation Council least two weeks before publication
jobs, they quit their managers,” email@example.com) David Velanoff as president (MRAC) has hired Lindsay date to firstname.lastname@example.org)
Page 20 July 27, 2007
Banks looking to increase ‘share of wallet’
anada’s chartered ratio for individuals now stands
banks haven’t quite Mortgage deals wandering into low-rent district at 120 per cent in part because
sunk to the level of so many people are carrying
those shrill, high- banking industry. For the past share of wallet. One way for a quarter of one per cent to 4.50 large mortgages.
volume vendors of discount 15 years or so, since the end of bank to get its hands further per cent and the chartered Homeowners who have paid
furniture and cheap electronics the last major recession in into your wallet is to offer banks immediately raised their down their mortgages in many
who are constantly bombard- other words, the banks have easier terms of credit than the prime lending rates. cases have then turned around
ing us with ads touting zero been making it easier for competition. Another way is to Many observers believe that and borrowed against the
down, zero interest, zero homebuyers to obtain credit. pay the interest penalty for the central bank may boost the equity in their homes to pay
payments for 18 months. Where they once demanded homeowners who are willing cost of money by a similar for household improvements
But when it comes to their 25 per cent upfront before to move their mortgages across amount once more and and other things. Indeed,Tal
mortgage-lending granting a mort- the street before the term has maybe twice by the end of the says home-equity loans have
practices, they’ve banks
OPINION gage, theloweredhave expired. year in order to keep a lid on become so popular that they
wandered into steadily that The banks have greased the inflationary pressures caused have helped keep consumer
the same low-rent bar, the result being wheels of a booming market largely by the overheated spending healthy in recent
district. that downpayments in both new homes and economies of the western years.
In the past year or currently average resales. Coming out of the provinces. But some experts Canadians have been
so, most have begun about 15 per recession in the early 1990s, contend that the bank’s ability binging on credit since the
offering zero-down cent, according to housing starts dipped to to raise rates in order to fight last recession, thanks in no
mortgages, in which industry experts. 110,933 in 1995 and then rose inflation is severely limited small part to the loose lending
the prospective To some extent, annually for nine years to a because the level of personal practices of the chartered
borrower doesn’t the bankers are peak of 233,431 in 2004, indebtedness in Canada is so banks, but this party has the
have to put a nickel merely responding according to Canada Mortgage high. potential to end badly.
on the line in order to changes in the and Housing Corp. “A moderate increase by If inflation begins to rise,
to make what is real estate market. Last year, they stood at a historical standards of one to older people living on fixed
generally the largest D’Arcy Jenish Housing prices have very healthy 227,395.The 1.5 per cent would be very incomes and Baby Boomers
and most important Business Edge risen so sharply in resale market has been equally powerful in terms of its impact heading for their golden years
investment in the recent years – from robust, growing from 260,993 on consumers,” says Benjamin will demand action from the
average person’s life.The a national average of $150,720 transactions in 1995 to Tal, an economist with CIBC Bank of Canada. Otherwise,
banks have also begun allow- in 1995 to $314,258 in May 483,700 last year. World Markets and the author the value of their savings and
ing borrowers to stretch the 2007 – that not many first- The housing boom has of a widely quoted report on the quality of their lives will
amortization period from the time buyers, and even many occurred despite rising prices personal bankruptcies issued in decline.
old maximum of 25 years to a who are moving up to bigger because interest rates have early July.“The savings rate is But a sharp spike in interest
new one of 40 years, and homes, can come up with a been low and stable, the job close to zero, which means rates could be a knockout
mortgagees who take up 25-per-cent downpayment. market has been strong and people don’t have a cushion blow for all those homeown-
that offer will find themselves But competition between easy credit has been available at against economic shocks.” ers, many of them younger
paying next to no principal for the banks has also played a the banks. Tal points out that the use of couples, who bought homes
years and years to come. role.They are all furiously But now there are signs that credit has been rising by about with next to nothing down
These newfangled gimmicks, chasing the mortgage market. one part of that equation may 10 per cent a year while and are already struggling to
which have been borrowed They are all trying to grow be changing. In mid-July, the incomes have only been grow- pay their sky-high mortgages.
from the U.S. market, are part their business and, to use an Bank of Canada raised its ing by half that amount. As a (D’Arcy Jenish can be reached
of a long-term change in our industry phrase, increase their trend-setting rates by one- result, the debt-to-income at email@example.com)
Strong sectors driving economic growth
Prominent among these is the price overall rise in the index, the dollar could trade down
It may take months of oil. Political and other supply therefore, means that the EXPORT toward the mid-80s. However,
for global slowdown
tensions notwithstanding, it is clear strong sectors are simply ANALYSIS were oil prices to approach the
that demand remains strong and that outweighing the soft $90 level, the dollar could inch
excess capacity is building only very ones. up towards parity with the U.S.
to become apparent gradually, as prices are up over $20 in It is likely to be several dollar.
six months. more months before These changes to the outlook
ast spring, EDC Economics On top of this, EDC’s latest survey of evidence of slower global mean that Canada’s export
was forecasting no growth in
Canada’s exports for 2007.
Recent developments are
leading us to upgrade this outlook
Canadian exporting companies shows
that trade confidence has actually
improved during the last six months.
The trade confidence index has risen
to 72.9, up from 71.4 six months ago
growth becomes truly
Meanwhile, the world’s
central banks need a
slowdown to reduce the
revenues are likely to grow by
two to three per cent this year.
Even so, the export upgrade is
almost all due to higher prices
for energy, metals, petrochemi-
At the heart of the story is a forecast and 70.7 last year. risk of future inflation, cals and fertilizers. Excluding
moderation in global economic The survey indicates that companies and that means some those categories, other export
growth, led by an abrupt slowdown in have become slightly more bullish on upward pressure on Stephen Poloz sectors will be in decline.
the U.S. economy. both foreign and domestic economic interest rates and some Export Development The bottom line? A slightly
Evidence of a global moderation conditions. currencies. Canada stronger global outlook means
is accumulating – the U.S. consumer Of course, this positive sentiment This includes the an upgrade for Canada’s export
is retrenching, leading economic is far from universal, as the sectoral Canadian dollar, which has been revenues. But the upgrade is mainly
indicators have rolled over, Asian breakdown of trade confidence pushed higher by speculation that both due to higher prices, which means that
exports are easing and financial continues to show a two-track interest rates and oil prices will contin- the risks associated with the outlook
markets are being driven increasingly economy. ue to move higher. are increasing, not falling.
by speculation. Confidence is up in energy, metals, Assuming the anticipated synchro- (Stephen Poloz is a senior vice-president
Yet, there is no denying the signals technology and transportation, while nized global moderation emerges in and chief economist for Export Development
indicating that the world economy light manufacturing is stagnant and the second half of the year and oil Canada. He can be reached at
remains strong. forestry has deteriorated further.The prices ease toward the $60 level, then firstname.lastname@example.org)
July 27, 2007 Page 21
Environment plays big part in ad’s effectiveness
Industry veteran FEEDBACK consumers associate advertisers
with the channel.
in a racy magazine, even if
the reader is exactly who I am
order to cover the cost.
Illuminating all outdoor
not big mobile working with marketers such
I would consider recom-
mending the mobile billboards
trying to reach. I believe that
environment plays a big part in
locations would definitely
result in more commuters
billboard fan as Visa Canada, Coca-Cola and
to my clients if the media
company can prove to me that
adve rtising effectiveness. I don’t
think throwing my clients’ ad
seeing the ads . . . but I
strongly believe that there is a
Re: Advertisers hit the road Today, I work with Calgary the trucks are reaching my on the side of a truck elevates bigger issue that should be
with mobile message, by Laura ad agencies and marketers, clients’ target with minimal the brand. But, like all advertis- addressed when it comes to
Severs, Business Edge, June 29, helping them invest their waste. ing media, there can be a fit. outdoor advertising.That is the
2007, and online at media budgets effectively. Today, clients are looking for But it has to be the right creative (design).Too many
www.businessedge.ca. I have never been a big fan advertising and media options adve rtiser with the right mes- clients and agencies ignore the
of mobile billboards. My first that tightly target their current sage to be effective trying to need for distance testing. I see
just read through the article exposure to them was when I customers and prospects in reach the right target. too many posters, superboards
I on mobile billboards. I
have been in the advertising
was developing a media strate-
gy for Visa, promoting their
order to maximize effective-
ness and minimize wasted
Your article also touched on
transit shelter advertising and
and transit shelter ads that are
packed full of copy, logos and
business, specifically media sponsorship of the Toronto exposures against folks that the new illumination technol- pictures. Outdoor is intended
planning and buying, for 15 International Film Festival. My they are not trying to build a ogy being developed. I think for people in transit and the
years, having spent most of challenges with the advertising relationship with. If I am that Carmanah Technologies creative should be developed
that time with some of the channel are that there is a lack targeting everyone, then great! Corp. may be before its time. with this in mind. If the ad
country’s largest ad agencies of targeting and how But if I want to reach business While going green is definitely can’t be read, it won’t be
people who decide what a strategy and concern for effective.
courier company or technolo- some marketers, I doubt that The problem with a poster
It’s home, sweet home gy company they should part-
ner with, I would definitely
consider a different strategy.
the demand will be significant
enough to persuade the
outdoor companies to make
that is image heavy and uses
reverse white type that is not
legible from the street isn’t the
for Canadian SMBs I believe that marketers are
judged by consumers on how
they communicate with them,
the capital investment. I can
imagine that such a change
would be quite pricey and
printing, it’s the design.
The problem with a poster
that uses a small font size that
The results also show 65 per but also where. I would never doubt that advertisers, for is not legible from the street
Entrepreneurs cent of importing SMBs and 56 consider adve rtising a food the most part, will be isn’t the poster location, it’s the
per cent of exporting SMBs product in a restaurant wa s h- willing to pay the increase design.
say domestic view globalization positively, room, even if my target was in media costs that would – Stacey McIntyre,
while a little more than half of there. Or a conservative brand be passed on to them in Calgary
market suff i c i e n t their non-importing, non-
exporting counterparts are
Business Edge undecided.
Despite this outlook,
It appears that comfort Canadian SMBs are optimistic
trumps growth for Canadian for success, b e l i eving the
businesses. Canadian economy is more
Small and medium-sized likely to grow than that of
businesses (SMBs) say they are rapidly expanding markets such
hesitant to expand their busi- as India.
ness beyond Canadian borders, In fact, two-thirds of those
according to the UPS 2007 surveyed expect to see Canada
Canada Business Monitor. growing over the next three
The study on SMB trends years second only to China in
shows 37 per cent of Canadian terms of economic growth.
entrepreneurs surveyed believe Furthermore, 24 per cent and
they have enough business to e
22 per cent, re s p e c t iv ly, of
deal with in Canada, while an SMBs see the Middle East
additional 17 per cent say glob- and the U.S. declining eco-
al trade is out of the question nomically over the next three
until they expand their business years.
domestically. “Most Canadian businesses
“This is disconcerting when are positive about globalization;
one considers that SMBs make however, many feel challenged
up 98 per cent of Canadian on how to begin international
businesses,” says Mike Tierney, trade,” said Tierney.
president of UPS Canada. The Canada Business Monitor
“Canada runs the risk of results identified sourcing with
being left behind in the trustwort hy suppliers and
increasingly competitive global understanding complex trade
market unless there is a shift in practices as major barriers to
the practices of our entrepre- SMBs expanding globally.
neurs to capitalize on the inter- Though they are reluctant to
national trade opportunities dive into global commerce, the
available to them.” vast majority of SMBs in
The study indicates those Canada believe globalization to
SMBs that have chosen to con- be positive or neutral, with
duct cross-border and inter- only 15 per cent viewing it
national trade see the benefits negatively.
of doing so and intend to con- The favourable view of glob-
tinue the practice. alization is similar to data from
Canada Business Monitor the Europe Business Monitor, in
results show that almost half of which businesses overwhelm-
SMBs trading internationally ingly said the shrinking of
plan to expand their workforce global commerce is a positive
in the coming 12 months ver- development – a direct contrast
sus 26 per cent of the SMBs to Latin America, where SMBs
that do not participate in inter- are split down the middle on
national trade. the benefits of globalization.
Page 22 July 27, 2007
New Life Capital
Helps You Profit
See Page 12
Security camera misuse no laughing matter
names with location informa- their system, saying that each
Technology tion, eliminating the need for project is a little different.
operators to cross-reference While they acknowledge that
changing digital video feeds with facility maps. it’s probably not economical
Using closed-circuit TV for a mom ’n’ pop store to buy
surveillance (CCTV) cameras for video a VDI system, Godfrey insists
surveillance apparently dates that costs are coming down
practices back to the Second World War, quite dramatically,“and some-
when the Germans used them times you can do things with
ver wonder what’s on to record V2 rocket test flights. this technology that would just
the other side of one The technology got a huge, not have been possible before.”
of those shiny security if unwanted, boost in the The social implications of
camera domes? 1970s and 1980s when Irish surveillance technology have
Who’s watching you? Who’s Republican Army bombings not been overlooked.Techno-
watching the watchers? If you drove British officials to launch critics like University of
had the bad judgment to run widespread surveillance, which Toronto electrical and com-
naked past a camera at age 19, they are now crediting with puter engineering professor
could that digital trail haunt the recent arrest of terrorists. Steve Mann constantly remind
you when you went Security cameras people of the freedom that we
for a job at age 25? FUTURE/ are getting dirt Tom Keenan, Business Edge give up when we put cameras
The answer to all PRESENT cheap. I recently University of Toronto professor Steve Mann checks out a everywhere.
the questions, is, of saw a wireless cam- conference bag outfitted with a security camera. Mann often appears in
course, “it depends.” era for sale in public with his own video
Depends on where (of all places) them, and the DVR (digital some risk. After all, you can camera, practising what he
you are, what you’re Winners for video recorder) that’s best for find thousands of security calls “sous-veillance” (viewing
doing, and to some $139.99.There it them, and to tie them all cameras online if you know from below) to counter Big
extent, even who was, sitting between together to work as one how to search. (Hint: Check Brother’s surveillance (viewing
you are. the clearance-priced solution.” out Google Hacking, which from above.)
Some folks get underwear and the Moir also speaks of systems allows you to even target a As for the question of
watched on video tacky wall decora- convergence, which she defines particular brand of camera.) whether or not your teenage
more than others. tions. Hang it out- as pulling together information My students have uncovered streaking adventure might
And technology is side your front door from CCTV systems, access cameras in bank vaults, a pet haunt you, most companies do
emerging that will Tom Keenan and you can have control, fire alarms and video wash and behind the reserva- eventually destroy security
automate and sys- Business Edge your own reality TV analytics into one system tions desk of a major hotel. videos. Universities typically
tematize the use of starring the mail- that makes it very easy for But according to VDI chief cycled their VHS tapes on a
digital surveillance in whole man, paper carrier, and perhaps operators to respond. technology officer Michael 30-day circle, and that practice
new ways. Companies with the younguns drinking out on While security is often Godfrey, you won’t find the has often been carried forward
important assets to protect the front porch. viewed as a cost, she suggests Pearson airport cameras on the into the digital world.
need to take notice. And what Meanwhile, Richmond Hill, that video information could web. But as it gets cheaper to buy
could be more important than Ont.-based Visual Defence Inc. also serve marketing and legal “Most of these systems are storage media than to pay
the safety of the travelling (LSE:VDI) aims to provide purposes, and be turned into a closed systems. As you put any somebody to erase it or
public? “security convergence” by profit centre. IP device on a network, you destroy it, this could change.
Consider the still rather- knitting together security Air Canada’s Pearson Airport have to think about how So you just might want to
newish Terminal One at systems, even if they come system is one of VDI’s show- secure it is,” he says.“That is keep on your shorts, or cover
Pearson International Airport. from different vendors. piece installations and Moir an issue because you’re going your face, if you plan a
You’d have to be blind not to “We’ve got software plat- notes that the airline is able to from a purpose-built network drunken rampage past a
notice the security cameras forms that help our clients use other people’s cameras to to a large network. One of the camera anytime soon.
everywhere. Some belong to move from the analogue world “ensure that catering trucks main things we do is to look Web Watch:
the Greater Toronto Airports (of videotapes) to the digital are getting loaded at the right at the security and firewall and www.visualdefence.com
Authority (GTAA). Others are world,” says VDI marketing time” and for other operational IT issues.” http://wearcam.org/
part of an Air Canada system manager Bethany Moir. “We functions. He adds he has a camera at mann.htm
called the station operation also talk about convergence in Like most modern applica- his cottage and “your students (Tom Keenan is a professor at
centre (STOC). Nobody terms of vendor convergence; tions, Internet protocol plays might be able to hack into the University of Calgary and an
wants to say exactly how many being able to give our clients a part in bringing together that.” expert on technology and its social
cameras are out there, but Air the freedom to use the camera these networks of security Moir and Godfrey are implications. He can be reached at
Canada watches them on an manufacturer that’s best for appliances. And not without circumspect about the cost of email@example.com)
18-screen “command and
control video wall” inside the
“The new STOC video
Legitimate e-mail marketers struggle with perception
system, with its increased The Canadian Press annoying electronic junk mail to attempts “With all the reports we provide, with all
functionality, enhances Air to steal personal information. the technology we provide, with all of the
Canada’s ability to manage and Try for a moment, as you empty the “It’s not only security but it also has to services provided, it continues to grow.”
monitor operational video bulging recycle bin on your e-mail desk- do with just an inconve n i e n c e,” s ay s But where does that attitude leave legiti-
from multiple sources around top, to spare a kind thought for the e-mail Danielle Fo u rnier, general manager for mate e-mail marketers?
the airport,” says Thor Hoff, marketer. McAfee Canada, a leading Internet securi- Treading carefully, says Paula Skaper, past
Air Canada’s manager for IT If that seems hard as you banish another ty firm. “Quite honestly it’s more bother- president of the Vancouver-based Inter-
infrastructure projects for the batch of come-ons for faux Rolex watches some because once you open up one, there national Internet Marketers Association.
Toronto hub. and male-enhancement products to cyber- tends to be many more following.” Skaper, whose firm Kinetics Media spe-
So instead of having dupli- oblivion, then you see part of the problem While they bemoan the rising number of cializes in e-mail marketing campaigns, says
cate cameras, they can pull up that purveyors of legitimate products face. spam e-mails filling their inboxes, many her industry works hard to distance itself
relevant video feeds, even if The Internet may be the cheapest, most Canadians probably can’t help opening from anonymous mass-mailings designed
they belong to a different versatile marketing tool retailers have ever some of them. to evade spam filters.
owner. Hoff says they’ve also devised, but those very attributes have “I believe there’s just more of a curiosi-
gone to simplified camera clogged it with spam – everything from ty,” says Fournier. See CONSENSUS Page 23
July 27, 2007 Page 23
System keeps critters from shocking fate mu
of external co m n i c a t i o n s .
Power lineman “Greenjacket protects the most
sensitive areas in the substation
came up with and prevents birds or wildlife
from touching those energized
bright idea portions.”
The birds can also benefit.
By Laura Severs “They can now come and go,
Business Edge they’re not going to be harmed
and they’re not going to short-
ower outages triggered circuit the equipment, so there’s
P by squirrels or bird s
can be a costly annoy-
ance to power pro-
viders and consumers.
But a Canadian-built solu-
an env i ro nmental aspect as
well,” Gourley says.
The solution harkens back to
Niles’ day as a power lineman,
tion, the brainchild of a power “Marty was being called out
lineman, is sparking intere s t in the middle of the night to do
from one of the largest high- repairs and seeing the costs that
tech companies in the world. were being incurred and they
Greenjacket is a tight-fitting were really just doing patch-
insulated material tailored for work solutions – there weren’t
specific energized equipment. protective devices to prevent
Special prefabricated dielectric this from happening again.”
polymer covers are designed to Photo courtesy of Cantega Technologies The lineman initially came
eliminate the 20 per cent of Cantega’s Greenjackets cover the vulnerable points in this power transmission substation. up with a plan to spray a pro-
power outages that are attrib- tective polymer onto the power
uted to wildlife coming into come up with a pretty unique And while there are competi- market globally and there’s a equipment onsite.That idea was
contact with electricity trans- solution. Together we can tors, the company says its prod- huge market beyond sub- subsequently revised into the
mission systems. expand across Canada.” ucts are customized to fit stations that we really can’t die-cast product after spraying
Marty Niles, a former senior Boyce notes 3M has been the power devices – equipment quantify yet.” proved too complicated and
power lineman from Lac La involved in the electrical mar- size can vary at each substation Cantega has also been costly.
Biche, Alta., is now president ket since the 1950s. 3M Canada – while its competition gener- working with Calgary-based “With wind there would be
of Edmonton-based Cantega will start marketing the product ally uses a one-size-fits-all AltaLink – responsible for the overspray and there was a need
Te c h n o l ogies, a two-year-old in the West and then move east. formula. maintenance and operation of to do a lot of masking. Also,
company that he created after Cantega CEO Al Gourley Ravens and other birds use approximately 11,600 kilome- you couldn’t do it if the
seeing an opening in the power says power outages cost the power transmission substations tres of transmission lines and weather was too cold or too
market for such a device. U.S. economy $75 billion a as perch points and can trigger 260 substations in Alberta – to hot,” says Gourley.
And now 3M Canada – one year. Of that, about 20 per cent, a power outage in addition to re t rofit substations that have Now Cantega makes an ini-
of the largest international sub- or $15 billion, can be attributed frying themselves. Squirre l s , high histories of bird-caused tial visit to the site, takes meas-
sidiaries of St. Paul, Minn.- to wildlife-caused outages. raccoons and other wildlife can power outages. urements and later returns with
based 3M, a $22-billion diversi- “It’s turning out to be a very also inadvertently cause power More than 15 AltaLink sub- the customized Gre e n j a c ke t
fied technology company – has good fit for them and for us,” outages by coming in contact stations now have the components.
obtained exclusive rights to sell s ays Gourley. “ G re e n j a c ke t with exposed electrical equip- Greenjacket system in place – “This way, we’re able to
and market Greenjacket within needed distribution and mar- ment. the pre-measured pieces can be reduce the installation time,”
Canada keting, and they needed a prod- Gourley says Cantega was snapped off and then snapped s ays Gourley, adding while
“We are always looking for uct like this. It happened very, a l ready working with Sask- back on should AltaLink need m a nu facturing custom-sized
ways to expand our portfolio very quickly and they’re a ter- Power and Manitoba Hydro to work on the equipment – parts may be more expensive,
and working with small busi- rific company with a global when it was approached by and there has only been one costs are less as the installation
nesses is a great opportunity for brand and global recognition.” 3M. incident of a bird-related power time is dramatically lower.
that,” says Bill Boyce, Alberta Cantega is targeting trans- “Our target is the global outage at those locations. And that’s not just for the
re gional director for 3M mission substations where it market, frankly, starting out “In our experience, its been a birds.
Canada, which is based in believes the product is most from Western Canada – it’s a great solution,” says Scott (Laura Severs can be reached at
London. “We think they ’ve needed. several hundred million-dollar Schreiner, AltaLink’s manager firstname.lastname@example.org)
CONSENSUS from Page 22
Educating clients just part of job for e-marketer
There’s no formal industry consensus Skaper says her firm uses a double rented e-mail lists through a reliable Skaper’s clients, which range from
on rules for e-mail solicitation, but there opt-in process for client e-mail lists. broker or “deployment vendor” who real estate firms to banks and travel
is an agreed-upon set of best practices, Recipients who’ve registered to receive retains control of it through strict usage companies, like the speed and accuracy
she says. e-mails get an e-mail asking them to rules. of e-mail marketing.
“We only do permission marketing,” confirm their permission. She counsels clients against dealing “I can send something out instanta-
Skaper says of companies like hers. “If you’re practising proper permis- with companies willing to hand over neously on behalf of a company and
“There must be a clear opt-in to receive sion-based e-mail marketing, whenever their lists unconditionally. within 48 hours they know if it’s work-
the kind of information that we’re you collect information from your cus- There’s a reason for Skaper’s pru- ing,” says Skaper.
sending.” tomers and they opt in, you’re immedi- dence. “And I’m doing that without incur-
That means you need to have signed ately confirming that with an e-mail Despite the scourge of spam, e-mail ring any printing costs or any mailing
up with a company – perhaps through address,” says Skaper. marketing is a mushrooming, lucrative costs.”
its website or while registering a product “You restate what they’ve just signed business. Feedback from recipients reinforces e-
you bought – to get its e-mails. up for, and you do that immediately. Kinetics Media, which Skaper says has mail’s effectiveness as a marketing tool.
Skaper says part of her job is to And you encourage them to add your tripled in size in the last two years, sees “When (companies) ask ‘How do you
educate clients that what they’re doing sender e-mail address to their . . . safe list a 34-per-cent opening rate to its want us to talk to you?’ the customer’s
is not the electronic equivalent of old- so the messages get through. permission-based e-mails. saying, ‘Well, e-mail me because I’d
fashioned junk mail. “You let them know it’s always going “About a third of people open the rather get stuff in my inbox than have it
“We don’t want to annoy people,” she to come from this address. It’s a matter of messages, and somewhere between four piled up on my front step.’
says. “Otherwise we’re just wasting our communication.” and 12 per cent in general will click “It makes life easier, even with all the
client’s money.” Skaper’s firm sometimes works from through (to the information),” she says. spam.”
Page 24 July 27, 2007