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PHOTOGRAPHY: TOMASZ ADAMSKI

2006 GALA AWARDS

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The Centre for Family Business Gala Awards were held in Waterloo in June. Twenty-four businesses were honoured with Milestone Anniversary Awards, ranging from 10 to 155 years of business. Highlights of the evening included a presentation to Gary Parker as the 2006 Mark Hallman, Gary Parker Peter Hallman Mentor Award Recipient, and the message from President Barney Strassburger Jr.

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2006 GALA AWARDS RECIPIENTS

AWARD PHOTOGRAPHY: MARGARET MOTZ

Barney Strassburger Jr., centre, President of the Centre for Family Business, with Peter Benninger and Bonnie Benninger from Coldwell Banker-Peter Benninger Reality, celebrating their 20th Milestone Anniversary

Barney Strassburger Jr. with Murray and Orlan Martin, of Country Lane Builders (1981) Inc., celebrating their 25th Milestone Anniversary.

Barney Strassburger Jr. with Shanty, Kam and Charles Gopal of Gopal Investments Ltd., celebrating their 30th Milestone Anniversary. Gerrad, Brent, Judy, Brian, Trevor, and Geordie Kurtz, of Brian Kurtz Trucking, celebrating their 25th Milestone Anniversary. (right) Katie, Kelly, Sherry, Marty and Wes Hodgson, of Popeye’s Fitness and Gym, celebrating their 30th Milestone Anniversary.

Swan Dust Control celebrated their 60th Milestone Anniversary; from left, Chris, Jim, Jo-Ann, Vickie and Bryan Tank.

Heather, John, Terry, Kelly, Sheila and Ken Armstrong, of Armstrong & Quaile Associates, celebrating their 15th Milestone Anniversary. John Kraemer Jr., left, of Waterloo Manufacturing Company Ltd., celebrating its 155th Milestone Anniversary, with Barney Strassburger Jr.

(right) Barney Strassburger Jr., with Cheryl White and Phil Schiedel, of Schiedel Construction Ltd., celebrating their 55th Milestone Anniversary.

Barney Strassburger Jr., with Angie Bender and Amanda Brenneman of Amkad Metal Carrie, Ted, Kathy and Tom Drew-Smith of Reid Components Inc., celebrating their 10th Mile- Candy and Nut Shop, celebrating its 35th Milestone stone Anniversary. Anniversary.

Barney Strassburger Jr. with Marianne and Jim Erb of Edward R. Good Funeral Home, marking their 60th Milestone Anniversary.

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Centre for Family Business 2006 GALA AWARDS RECIPIENTS cont’d

Lisa, Marcus, Jenny Shantz and Bill Moolenbeek of Albert Street Development Corp, celebrating their 40th Milestone Anniversary.

Amelia, Byron, Erma and Ross Shantz, of Roma Meadows, celebrating its 25th Milestone Anniversary.

Rachel, John and Susan Seyler, Andrew and Nancy Yantzi, Erma and Ervin Steinmann, of Riverside Brass and Aluminum Foundry Ltd., celebrating their 40th Milestone Anniversary.

Dave, Cheryl, Sheryl and Aden Frey of Frey’s Hatchery Ltd., celebrating their 60th Anniversary. Heather, Brent, Mary and O’Derald Gingerich of peopleCare Inc., celebrating their 40th Anniversary.

David, Jason and Carolyn (r) Carnahan and Jodi Koberinski, of D&C Carnahan Management, celebrating their 55th Anniversary.

Photo at right, (back row) Brent and Mark Hallman, Kevin, Katelin Rempel, (front row) Susan Rempel, Brenda and John Hagey of Terraces by Hallman, celebrating its 10th Milestone Anniversary.

Absent were Delta Water Warmth Well Being (15 years); Beckett-Glaves Funeral Home Centre (135); Journeys by Jerry Van Dyke (25); Sapenaur Inc. (70); and Yantzi TIM-BR Mart (55).

tive advocacy agenda.” THE GREATER KITCHENER-WATERLOO CHAMBER Farwell says that as the Chamber looks to the OF COMMERCE is marking an historic milestone future, it is simply building on an incredibly strong this year – but when you talk to Chamber Chair history. “The Chamber has always been on the leadRoger Farwell, you don’t spend much time ing edge of issues.” dwelling on the past. But today, the board and Chamber President Todd This year is the 120th anniversary of the Letts are focused, says Farwell, on “creating the next founding of the local Chamber, an organization generation Chamber,” concerned with “economic, that has been a key economic and social force in 120 YEARS LATER, THE CHAMBER IS workforce, enterprise and membership development.” the community throughout those 12 decades. The Chair points to the Chamber’s leadership in The Chamber is proud of what they have accomLOOKING TO THE FUTURE health care recruitment, noting that the Chamber has plished – and celebrated it at a Gala earlier in the carried the issue beyond seeking family physicians to year – but Farwell is much more interested in looking at the entire spectrum of health care. The goal, talking about what is still to come. He’s a convinced believer in the organization. Farwell told Exchange, he says, is “to recruit and retain the best,” and in very practical terms, “to be “From my perspective, the Chamber is the best and most appropriate vehi- sure our employees have a doctor to go to.” He also points to the new program, the Waterloo Region Immigrant cle to assist in building this community.” He points to the “cross-section of membership,” which ranges from the smallest local business to corporate Employment Network (WRIEN), a broad giants. The Chamber is the right organization “to advance the prosperity agen- partnership that is hosted by the da,” says Farwell. The Greater Kitchener Waterloo Chamber of Commerce describes itself Chamber. This is a as “a business association of economic development champions... By work- program with wide ing together and focusing on initiatives that support growth, members use benefits, he says – the services of the Chamber as an important catalyst for their business suc- not only does it help new Canadians find cess.” And the Chamber is not shy in boasting about its accomplishments: employment, it also “Recognized as a leader in one of Canada’s most forward-thinking business is a key part of the communities, the Greater Kitchener Waterloo Chamber of Commerce strives solution to the growing problem that to be the best Chamber of Commerce in Canada.” John Tennant, CEO of Canada’s Technology Triangle, agrees: “The “we’re outstripping Chamber leaders include (left) Bruce Antonello, Greater Kitchener Waterloo Chamber is a leader on regional economic the supply of skilled Key health care issues, Chair Roger Farwell, and President issues, consistently far-sighted in developing a comprehensive and effec- labour.” Todd Letts.

Eyes Forward!

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“A driving force for all of Canada” Accelerator Centre opens in UW Research and Technology Park HERE’S PRIME MINISTER STEPHEN HARPER, on Waterloo’s new Accelerator Centre: “It will be a driving force in the growth of new business, for all of Canada.” In a message read at the Grand Opening of the Accelerator Centre, May 18, Harper added, “The economic strength and viability of Canada are dependent upon a strong entrepreneurial tradition,” and he commended the new facility for fostering that tradition. In a rare demonstration of non-partisan unity, the provincial Liberal government agreed with Harper’s praise. Tony Wong, Parliamentary Assistant to Ontario Premier Dalton McGuinty, was guest speaker at the event. He characterized Waterloo as “one of the hottest technology clusters in North America,” lauding the region for its “reach for the stars” culture. Premier McGuinty has retained the portfolio of Minister of Research and Innovation, and his spokesperson said, “Waterloo will continue to solidify Ontario’s reputation as a global technology leader.” Wong praised the Accelerator Centre for showing “a quality of leadership unique to this region,” and articulated the AC’s basic goal: “Getting the ideas from the lab to the marketplace.” The Grand Opening was an event well populated with political, academic and business leaders. It was estimated that more than 400 people attended the event, which saw speeches and congratulations from many officials, including Accelerator Centre CEO Gerry Sullivan, who said that “The Accelerator Centre is at the crossroads of technology, innovation, and community.” He joked that the AC is there to help fledgling businesses which have reached the “love-venture gap”... the point where funding from loved ones has been exhausted, but where the new company is not quite at the level to attract significant venture capital. By providing space for these young companies in a setting which also offers mentoring from an entrepreneurship council and on-site access to expertise and governmental agencies, young entrepreneurs can literally experience significant acceleration of their enterprise. The Accelerator Centre is designed to encourage the growth of high-tech firms

and act as a catalyst for the creation of new products and services. The facility is located at the University of Waterloo Research & Technology Park, at 295 Hagey Boulevard. Hagey Boulevard was one of four Shown at the Grand Opening of the Accelerator Centre elements of the R&T Park officially are, from left, retiring Chair Gerry Thompson, CEO Gerry Sullivan, and University of Waterloo President David named during the Accelerator Johnston. Centre ceremonies. Each honours an important innovator or academClients of the centre are paired with a ic who made a significant contribution to member of the centre's entrepreneurship the university: Gerald Hagey, Wes council, who will provide active mentorGraham, Frank Tompa, and Ira G. ship. The council consists of successful Needles. UW President David Johnston entrepreneurs with experience in various praised each of these men, noting that roles critical to growing an enterprise, “good things happen because of great including financial management, investpeople.” ment, research and development, product Also honoured during the event was development, marketing, sales, legal and retiring Chair of the Accelerator Centre human resources. Board, Gerry Thompson. Thompson is Clients normally occupy one of 20 succeeded by Ian McPhee. During the plug-and-play office suites in a 22,700proceedings, Thompson called the square-foot building. Suites range in size Accelerator Centre “a crucible for entre- from as small as 250 square feet to as large preneurship, which provides experience- as 800 square feet and include office furbased mentoring and support.” That sup- niture, Internet access and telephones. port includes such services as intellectual Suite fees include access to meeting property management consultation, rooms, reception, photocopying, light mentoring, access to professional service administrative support and a networking providers, community networking events kitchen. The building also has multiple and investor matchmaking with innova- environmental treatments and is covered tors. by Canada's second-largest extensive Overseeing the day-to-day operation of green roof. the centre are Sullivan, as CEO, and The not-for-profit Accelerator Centre is Bobbi Holte, who has focused on getting the result of a multi-stakeholder partnerthe Accelerator facility running since join- ship, with land and a portion of the initial ing the centre this past January. Sullivan operating funds provided by UW. The has been involved in the founding, devel- Government of Canada, Province of opment and management of several com- Ontario, Region of Waterloo and City of panies that use modelling and simulation Waterloo provided the primary capital software. Holte has held various senior funding. Other stakeholders include the finance positions at companies that University of Guelph, Wilfrid Laurier include Maplesoft and Dspfactory. University and Conestoga College.

XQuote “While Canada’s economy stood its ground in the face of great challenges in 2005, in today’s global economy, complacency is a killer. If the past few years have taught us anything, it is that, as a nation, we need to adopt a more aggressive, more focused and more disciplined approach to trade and competitiveness.” - Canada’s International Trade Minister,

DAVID L. EMERSON

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IT’S ALL GOOD AT COMMUNITECH Conferences and reports all point to growing success “THE BEST,” says Iain Klugman, “is yet to come.” Klugman is President of Communitech, and in that role, he has seen a lot of “best” in the last month or two. Communitech is the Waterloo Region high-tech organization which was founded by a group of local CEOs, nine years ago, “who said we believe we can build a very successful technology sector here, not just [individual] companies,” in the words of Klugman. He sees Communitech’s mandate as working to promote that goal, and points to recent events as prime examples of how well the mandate is being achieved. Communitech hosted two important events in May. First was Communitech’s 2006 Tech Leadership Conference, with keynote speaker Terry Matthews, “the most successful high tech entrepreneur in Canada”. Then, on May 25, Communitech hosted the Regional Innovation Networks’ conference, bringing together leaders from regional innovation networks across Canada and the United States. Also in May, Communitech released its important “State of the Industry Report 2006.” Concerning the May 11 conference with Matthews, Klugman says, “we were thrilled with the outcome of the conference. It really succeeded in bring together a great experience for people.” The conference focused on the brash theme: “Brat Politics and Guerrilla Logic: Winning the War for Talent, Markets and Money.” As Matthews and the other featured speakers shared their expertise with the entrepreneurs, Klugman says, “the message really was the need to build companies and not just technology.” The experts brought experience of both success and failure in the high tech industry, and Klugman says that is a key concept for Canadian businesses. He pointed to the need for “cultural change,” echoing Matthews and others as they Iain Klugman, President of Communitech said Canadians are too “averse to risk” and were critical of “the fact that we don’t tolerate failure well.” Other speakers and leaders at the conference included David Thomson, author of “Blueprint to a Billion”, Linda Hohol, of the TSX Venture Exchange; Brett Marchand, the person behind the I AM Canadian campaign; Dr. John Sullivan, Helen Handfield-Jones, Peter Suma, Fred Jaques of Dare Foods, Mark Evans, Elizabeth Walker, Osama Arafat, and Dave Caputo. The May 25 Innovation Network conference brought together 50 leaders of tech communities across North America, from centres including Ottawa, Toronto, Southwestern Ontario and from as far away as Connecticut. Their goal – which Klugman says was completely accomplished – was to share ideas, describe best practices and learn from one another. In conjunction with these conferences, Communitech released the “State of the Industry Report 2006.” Klugman noted a number of key findings in the report: • 80% of the tech companies in Waterloo Region are headquartered here. “This is the exact opposite of centres like Markham and Mississauga,” he said. • 50% of tech companies are headed by alumni of local educational institutions. • 30% are driven by serial entrepreneurs. “There is real diversity in this tech sector contrasted with other centres,” he told Exchange. “These are all incredible strengths.” He points out that the local tech sector has wide variety in terms of size, age and experience of companies. One thing most seem to have in common is a commitment to growth – the survey found that 80% of high tech companies are hiring, and most are investing heavily in research and development. Klugman points out with pride that Communitech has become “recognized as being one of the top innovation organizations in Canada.” This, he says, is why Communitech was chosen by the Ontario government to hose to Regional Innovation Networks conference. He also noted that Waterloo Region is top-of-mind at provincial and national political levels; this is the favourite example of leaders who are pointing to tech success in Canada, he says. And, in simplest terms, Communitech will continue to be “more strategic and focused” on its mandate, serving as “the rallying point of the tech industry in Waterloo Region.” 12

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www.xquarterly.ca • According to Communitech’s State of the Industry Report), Waterloo Region is a Tier 1 Tech cluster. • 79% of firms surveyed place a high importance on R&D spending (CSIR). • 49% of firms report 1-10 employees (CSIR). • 40% of firms surveyed hold more than 1400 patents, with more pending (CSIR). • 86% of ICT firms have revenue-generating products in-market (CSIR). • 87% of Science, Technology and Engineering firms plan to expand their workforce over the next two years (CSIR). • 75% of Advanced Manufacturing firms are headed by Alumni of local institutes (CSIR). • 84% of Biotech, Life Science and the Environment firms employ R&D specialists (CSIR). • More than two-thirds of manufacturing plants were innovative between 2002 and 2004, according to data from the 2005 Canadian Survey of Innovation. An innovative plant is one that introduced a new or significantly improved product (good or service) onto the market and/or implemented a new or significantly improved production process. • According to The Canadian Alliance Against Software Theft and the Business Software Alliance, Canada's software piracy rate decreased three percentage points from 36% to 33% in 2005, falling below the worldwide piracy rate which remained stable at 35%. Losses to the Canadian economy due to software piracy were CDN $943 million. • 93% of Canadians want water services to remain public, according to a poll released by the Canadian Union of Public Employees. Canadians want the following services kept in public hands: street and bridge maintenance (87%), libraries (85%), public transit operation (84%), park and rink maintenance (83%), and garbage collection (82%). • Seasonally adjusted annual rate of housing starts was 216,800 units in May, down marginally from 217,900 units in April, according to Canada Mortgage and Housing Corporation. • New home prices rose sharply in April. The New Housing Price Index rose by 1.2% over the previous month to 138.2 (1997=100). This was the most significant month-over-month increase at the national level since April 1989. Compared to one year ago, contractors' selling prices are up 8.2%. • Prices advanced in 14 of the 21 metropolitan areas surveyed. Calgary led the way once again with a monthly increase of 4.7%. Windsor (-1.4%), Kitchener (-0.4%) and St. John's (-0.1%) posted the only decreases due to competitive pricing. • The share of foreign control in the Canadian corporate economy remained stable in 2004. Foreigncontrolled corporations accounted for 21.9% of assets held in Canada, and 30.0% of operating revenues. • Retail sales continued to climb in March after edging down in February, capping the strongest quarterly gain in four years. Retail sales increased by 1.5% in March from the previous month to reach a record high of $32.1 billion. March's advance boosted this year's first quarter results up 2.2% over those of the previous three-month period. • The automotive sector led all other sectors in sales growth in March. Sales at new car dealers rose 4.6%, making up for a 3.4% decline in February. • Travel from overseas nations into Canada rose for the second straight year, following three consecutive years of declines. The number of overnight trips to Canada from countries other than the United States increased 7.1% to more than 4.2 million. Overseas tourists spent $5.7 billion in Canada in 2005, up 6.5% from 2004.

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In the Company of Giants PART II BUSINESS IN EXCHANGE’S READERSHIP area has been going like crazy. But the economic factors are complex, working both for and against growth, so we have much further to go. Over the last half decade, leaders have been transforming the economic basis of our regions, province, even of our country. No greater change has occurred than here in in our own communities. In fact, change is occurring all around the world. Why? Because of all the reasons you already know: free trade, global markets, the technological revolution. They all continue to drive change, and, says David Crombie, “The rest of us will be driven by Waterloo.” Crombie says that the trick to succeeding “is to figure out what we can keep of the old economy, such as the automobile business, and how much we can get of the new economy.” Crombie suggests that the very first thing we should do is retool, and we need to understand what we must do in retooling our own Public Realm (see Exchange Magazine, June 2006). In the last 30 years, we have seen an attempt to reestablish our understanding of our relationship with nature. And that is going to have a strong impact on the way

Ontario Premier Dalton McGuinty

that we proceed in the regeneration of the new economy. The basic relationship, in the 18th, 19th, and the early part of the 20th century, was that “if it’s nature, our job was to get rid of it, our job was to bury it, or burn it, or cut it, to get it out of the road.” The rationale saw protecting nature as being anti-progressive. Progressive places were those places that subdued nature. “We thought creeks were so important we decided to bury them in little boxes.

And today people are out trying to dynamite these places and find those creeks for good and sufficient reasons.” Crombie reflects on the basic law of ecology: “Everything is connected to everything else; therefore, the idea that you can move in and use up and move on is no longer acceptable.” Communities can no longer treat ecology as separate. In truth, “ecology, economy and community are a trio, and we have to find some balance and methodology in moving the trio forward.” “Accountability is the mother’s milk of a democratic system”; we want to hold leaders accountable. But is it applicable in today’s structure? “You can’t [hold politicians accountable] today because life is complicated,” says Crombie, “life requires that all governments do certain things.” And not all governments are equal, since one may do more than the other. “Does economic development belong to one government, does environmental stewardship, education, belong to one – it’s not possible to do.” Crombie points out that we have to find ways in which people can work together, in order to accomplish the things that matter to communities. Crombie suggests a process that adopts the attitude: “we don’t care if you’re the provincial government, the federal government or the local government, when it comes to local matters we need to find the mechanism to get together the appropriate mechanisms in order to rebuild the public realm, in order to regenerate the economy.” And no place, he says, does it better than in Waterloo Region. Crombie suggests a refocus on our federalism, providing more civic grounding in Ottawa, in Queens Park and local municipalities, all with a focus toward making democracy work. The first step is to defend local democracy, so everyone can contribute, and those that have small voices can be heard. On June 12, The Ontario Government passed Bill 53, “The Stronger City of Toronto for a Stronger Ontario Act”. The Act recognizes Toronto as Ontario’s economic engine, and provides Toronto’s city council with more autonomy, authority and accountability. Toronto Mayor David Miller says the legislation will give the city the ability to create policies that boost economic growth and improve the quality of life for residents, and it will reduce reliance on property taxes and user fees for funding. The act, says Judith Andrew, Vice-President, Ontario, of the Canadian Federation of Independent Business, in a letter to Dalton McGuinty “extends broad, permissive

Judith Andrew, Vice-President, Ontario , of the Canadian Federation of Independent Business.

taxing and regulatory powers to the City of Toronto.” Crombie says the act was brought on by the province and agreed to by Toronto. “They’re going to say the mayor appoints the chairs of the committees, the mayor appoints the chief bureaucrat, the mayor appoints the presidents of the local regional councils, and it’s almost like they’re going to have Mayor Miller say ‘Stop’ on the signs.” Crombie is very critical of the lack of democracy in the Act. “It’s top down. They think it’s reform, but all that reform means that the council is diminished, and the citizenry have less involvement.” Former Toronto Mayor Crombie, who spent 18 years in government – nine years locally and nine years federally – says “the day when you decide that you’re going to give more power to the centre and less to the sides, that’s the day you begin to lose local democracy; you will begin to lose the democratic spirit.” Further, he says, “You have to find ways in which to make democracy work. More power to the centre will diminish the ability of people to push their way into the political framework.” Andrews comments on the investment loss that will undoubtedly hit Toronto. She says, “Sadly, business and investment will flee Toronto in direct proportion to the City’s use of its new powers, thereby making Canada’s largest city an even less attractive place to do business. Already, the flight of businesses and jobs to the 905 surrounds is evident in any data comparing job growth, office space construction or the inventory of industrial buildings. Currently, the municipal portion of 2005 business property tax rates are double that of the surrounding regions.” This may bode well for surrounding areas, making them more financially attractive. However, given Dalton McGuinty’s June 15 introduction of new legislation to strength Ontario municipalities, by reforming the Municipal Act, casualties may be limited to just businesses.

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