Exchange June 2005 01-10 2.5 MB
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Exchange June 2005 01-10 2.5 MB
JUNE 2005 – $4.95 l MAGAZINE FOR BUSINESS & ECONOMIC DEVELOPMENT 2005 ADVERTISING AWARDS WINNERS FEATURE INTERVIEW WITH LARRY SMITH: TUNING OUT, TURNING OFF, DROPPING OUT PLUS: • Going on Offense • Was it Worth it? • Charity for Charities 1 /25 INTRODUCING THE SPECIAL EDITION H2 SPORT UTILITY TRUCK. LIKE NOTHING ELSE™ ONLY 25 OF THESE LIMITED SUTs IN CANADA. ALL IN THE STANDOUT COLOUR VICTORY RED. THE SUT FEATURES A DVD INTEGRATED NAVIGATION SYSTEM AND LOTS OF CHROME, INCLUDING THE STEP BOARDS, BRUSH GUARD, WHEELS AND SPARE TIRE CAP. SEE SCHLUETER HUMMER FOR AVAILABILITY. 300 Weber Street North, Waterloo 519.884.9000 or toll free 1.800.465.8003 schlueterhummer.com 56 St. George’s Square Guelph 821-7982 80 King Street South Waterloo 888-9200 It’s as much fun as you imagined? So why imagine? K-W 300 Homer Watson BLVD., Kitchener (519) 571-2828 FOR MORE INFORMATION, PLEASE VISIT WWW.VESPAC ANADA.COM Vespa ® and Piaggio ® are U.S. and worldwide registered trademarks of the Piaggio Group of Companies. Ride Safely. Obey local traffic laws and always wear a helmet, appropriate eyewear and proper apparel. Exchange Volume 22, Number 6 JUNE 2005 Need to take control? SERVING BUSINESS IN WATERLOO REGION AND GUELPH P.O. Box 41030, Waterloo ON N2K 3K0 • Tel: (519) 886-2831 • Fax: (519) 886-6409 email: [email protected] CONTENTS D E PA RT M E N T S 7 PUBLISHER’S NOTE 8 BUSINESS MONITOR Motorola radios give you the power to control any situation... including your budget. XQuarterly ; Tourism Bankruptcy; Kitchener’s New Voice; Harper at RDM 25 WATERCOOLER F E AT U R E S 17 iCON ADVERTISING AWARD WINNERS C to C Productions, MarketForce Tie for Top iCON Honours Plus Best New Artist and 2005 iCON Award Winners On the cover: Some of the 2005 iCON Advertising Awards winners. 11 TUNING OUT, TURNING OFF, DROPPING OUT BY JON ROHR Radical solutions, diminishing effectiveness and refusal to invest in the future – a “tell it like it is” interview with edge 2-way radios give you unlimited talk time. So whether the radios are used just in emergency situations, or used to get your business operating at its peak, MRC Wireless Systems is here to supply your every communication need. Exchange Larry Smith 30 MAKING Publisher/Editor: Jon Rohr A DIFFERENCE BY PAUL KNOWLES “A Charity for Charities” The Kitchener and Waterloo Community Foundation is ready with a cheque and a helping hand COLUMNS 23 GUEST COLUMN BY ALLAN FOERSTER Was It Worth It? 24 GOOD GOVERNANCE BY JOHN T. DINNER Going on Offense Associate Editor: Paul Knowles Feature Writers: Paul Knowles, Jon Rohr Advertising Sales: Brian Lyon TMR (519) 886-1946 Creative Director: Diane Johnson Photography: Jon R. Group Ltd. 20 Alpine Court Kitchener, ON N2E 2M7 Tel. (519) 749-1763 Circulation/Office Administration: Leanne Rohr www.mrcwireless.com Art Direction: Laurie Martin EXCHANGE magazine is a regional business publication published by Exchange Business Communication Inc. President, Jon Rohr. Eight issues per year are distributed to each company in Kitchener, Waterloo, Cambridge, Guelph, and Fergus as determined by Canada Post Business Postal Walks. Subscriptions are available for $29.90. Send cheque or money order to Exchange, P.O. Box 41030, Waterloo, ON N2K 3K0. Attn: Circulation Department. Back issues are available for $8 per copy. Phone: (519) 886-9953. Fax: (519) 886-6409. ISSN 0824-457X Copyright, 2005. No part of this magazine may be reproduced without written permission from the publisher. "Motorola and the Stylized M logo are registered in the U.S. Patent and Trademark Office.† All other product or service names are the property of their respective owners."† JUNE 2005 l exchangemagazine.com l 5 Because everyday should be Father’s Day. The 2005 Infiniti G35 Coupe. Prepare to be noticed. Featuring: • 280-HP 3.5-litre DOHC V6 engine • 5-speed automatic transmission with manual shift mode and Downshift Rev Matching • 17-inch aluminum alloy wheels • Breakthrough zero-lift aerodynamics • Vehicle Dynamic Control • Traction Control System • Leather-appointed seating with heated front seats • Aluminum trim • Bose®-powered 225-watt audio system with 6-disc in-dash CD changer and MP3 playback • Available state-of-the-art Infiniti DVD Navigation System.† The Infiniti G35 Coupe. Guest Drive one today. Infiniti.ca Guelph Infiniti Serving you for 25 Years 805 Woodlawn Road, Guelph, ON Phone: (519) 822 9200 www.guelphinfinitinissan.com • [email protected] *LIMITED TIME LEASE OFFER on the 2005 G35 Coupe (G2TG75 AA00) available through Infiniti Financial Services only. Payments are $469/mth. for 39 months, O.A.C. Down payment or trade-in of $7,898 plus first monthly payment due at lease inception. Security deposit waived. Total lease obligation is $26,189 which includes destination and delivery charges $1,274. A.L.R. 4.50%. 78,000 km allowance, additional kilometres at $0.15. $0.10/km if arranged at lease inception. Zero down payment plans are also available. Taxes, licence, PPSA or RPMRR registration and insurance are extra. MSRP for the 2005 G35 Coupe (G2TG75 AA00) is $46,100. Freight and PDE, taxes, licence and insurance are extra. Dealerships are free to set individual prices. See your Infiniti Dealership for more information. † Available in certain option packages. See your Infiniti Dealership for details. G35 Coupe shown with optional Performance Package. PUBLISHER’S NOTE Let’s Be Clear Healthy business should fund a healthy society BY JON ROHR S ay what you mean, mean what you say. Actions speak volumes. Prosperity is an overused word, but that shouldn’t demean its significance. I don’t believe I’m speaking only for myself when I say “We want a prosperous community, one that is successful, flourishing and promising.” A steady push to prosperity also provides a cornucopia of humanitarian benefits, benefits I believe most people have come to take for granted. Humanitarian benefits can be as simple as improving a frequently traveled path by building a highway. Or as complicated as creating a vaccine that wipes out a damaging virus reeking havoc on large groups of people, such as Polio. By pursuing prosperity we create a society with opportunity – individually, spiritually, socially, intellectually, and culturally. We build a healthy community. Prosperity has a price – you have to work for it. And to the benefit of society and every member of its population – businesses do. Focused on wealth creation, business is the only group contributing the means to run the machine. Those who think businesses is bad need to be reminded that without healthy businesses returning healthy profits, there won’t be healthy tax revenues for governments to redistribute and thus fund society’s programs, including muchneeded services. What many governments and socially minded individuals fail to recognize is that business is changing. It’s gone global, and it’s not going back. So business has to work twice as hard, in the short term, for less. During this time of non-campaigning, politicians need to be reminded that businesses – big businesses, medium-sized businesses, and small businesses – and their many employees are the wealth generators that elected representatives, in fact, represent. The last federal election failed to address the challenges facing business. The fact remains that more businesses everywhere are competing with other businesses in countries our parents used to call “the Third World”. Times have changed; for most employers it’s challenging – and for most it offers new opportunity along with significant challenges. Thankfully, businesses operating in Waterloo Region and Wellington County are in one of the most prosperous and industrious areas of North America, and we’re working hard to keep it that way. Studies have shown that we provide close to a billion dollars of JON ROHR IS revenue for the rest of Canada, something PUBLISHER OF we can be proud of. This also gives us a EXCHANGE MAGAZINE voice to demand that it is spent wisely. FOR BUSINESS Regardless of their party affiliation, e-mail: jrohr@ exchangemagazine.com politicians everywhere must first recognize the value that business provides communities. They must acknowledge that businesses enable society to offer humanitarian programs and must encourage a climate to allow business to continue to strive for prosperity. As employers and employees working towards prosperity, and members of a healthy society, we all share but one objective – to keep the machines running. When I look at the the likely situation – where our hardearned tax dollars may have been working against society’s interest, and were used only for the interest of a certain group – my mind boggles. But I recover sufficiently to realize how loudly this speaks to the need for political retooling. JUNE 2005 l exchangemagazine.com l 7 BUSINESS MONITOR SOTO Gone: Tourism Organization Declares Bankruptcy THE SOUTHERN ONTARIO TOURISM ORGANIZATION is bankrupt. The organization, which stated that it represented about 500 tourism partners from Niagara to Windsor to Tobermory, declared bankruptcy effective April 22, 2005. But the bad news may not end there. SOTO Chair Bob Usher, who is CEO of the Covent Garden Market Group in London, Ontario, told Exchange that the demise of SOTO may be the first of half a dozen such failures among similar tourism marketing organizations in Ontario over the next three to six months. A statement to SOTO members, from Usher and Peter McFadden, President and CEO of SOTO, said in part: “After struggling for the past few years and working through the ReVisioning process during the last 10 months it became evident that SOTO could not develop a sustainable business plan that would provide appropriate value to its members and partners. The process was frustrated by SOTO’s inability to form a meaningful partnership with the Ministry of Tourism and Recreation and the Ontario Tourism Marketing Partnership. ... As a result, the Board ... determined that SOTO was insolvent and the bankruptcy assignment was approved by resolution.” KPMG Inc. is the trustee in bankruptcy. Usher told Exchange that the Ontario govnerment put SOTO in an impossible situation. He said, “If you look at the whole set-up of SOTO,” compared to similar organizations in other provinces, SOTO should have been receiving annual provincial funding between “$800,000 and $1 million.” In fact, he said, no provincial money was forthcoming, despite frequent indications that this would take place. Usher claims that there were consistent problems related to the province. In addition to a lack of funding, “SOTO was led to believe... they were going to play an integral part in the Ontario Tourism Marketing Partnership,” which he says did not take place, despite apparent commitments from the province. He claims the commitment was withdrawn at exactly the same time SOTO officially came into existence. Usher believes that the bankruptcy will have the most negative impact on small communities. While larger centres will have marketing and funding options, “I think there’s going to be a tremendous void, especially with small communities,” he says. The volunteer board Chair says SOTO closed its doors while trying to be fair to all staff, stakeholders and clients. A staff of ten – now out of work – were paid up to date. Usher says that “our payables were low ... perhaps $3,000.” The SOTO website now directs enquirers to a provincial toll-free number. However, it is understood that some SOTO members have paid for marketing programs that may not be delivered, or delivered in full. As noted above, Usher believes several more shoes are going to drop. “We believe there are other organizations in Ontario ... in the same situation.” He thinks five or six other bodies may fold in the next three to six months, and he also told Exchange that he understands the provincial ministry of tourism will suffer a funding cut of between 5% and 15% in the next year. According to the SOTO website – which, unlike the organization’s Brantford offices, is still functioning – the organization came into existence April 1, 2000, “as the result of a merger of three former tourism organizations: the Southwestern Ontario Travel Association (SWOTA), the Festival Country Travel Association (Festival Country) and the Grey-Bruce Tourist Association (GBTA).” Usher points out that SOTO was governed by an 18-member Board of Directors, all people from the tourism industry in south-western Ontario. He suggests, therefore, that it is actually the industry that made the decision to fold SOTO, although when he allocates the blame, he clearly looks east, directly to Queen’s Park. Dave Glofcheski is Advertising Manager of Visitor Magazine (www.visitor.on.ca), an independent publication that is a sister product to Exchange Magazine. Glofcheski says that, upon learning of the demise of SOTO, Visitor immediately began contacting stakeholders in the tourism industry to explore solutions to the issues facing former SOTO members, including marketing, promotion and distribution challenges. - PAUL KNOWLES www.xquarterly.ca • The Canadian economy rose by 0.3% in February after increasing 0.2% in January. Growth came retail and the demand for machinery and equipment. • Industrial production (factories, mines and utilities) decreased by 0.2% as an increase in manufacturing output (+0.2) was overshadowed by declines in the mining, oil and gas extraction sector (-1.3%) and by utilities (-0.8%). • Construction activity edged down by 0.1% in February. Residential construction declined for a third month in a row (-0.6%). • Output in the manufacturing sector rose by 0.2% in February, pushed by durable goods production (+0.6%). Only 9 of 21 major groups, accounting for 38% of manufacturing’s value added, reported gains. • Demand for heavy-duty trucks fuelled output of motor vehicles (+0.6%). • In April, manufacturers stating they would increase production over the next three months stood at 18%, up 5 points from January. Manufacturers planning to decrease production in the second quarter rose 4 points to17%. • Just over 7 out of 10 innovative biotechnology firms in Canada that attempted to raise financing capital in 2001 were successful in raising $980 million, according to new data from the Biotechnology Use and Development Survey. In 1999, successful firms raised $2.2 billion in capital. • Prices for manufactured goods at the factory gate rose in March for a fourth Important message to all Audi, BMW, Mercedes, Porsche, VW & Volvo owners. “The Canadian automotive service industry changes on a daily basis. This is also true for how the consumer expects to be treated. You should expect more.” – Uli Furtmair. Our objectives: Our benefits: • To maintain your Original Factory Warranty • To maintain your car’s authenticity using Bosch OEM parts • A written International Warranty • Reasonable service rates • Customer-focused service Our features: • International Award-winning expertise • Top-notch servicing using the latest diagnostic equipment • Helpful advice from professionals with the most up-to-date skills and training 8 l exchangemagazine.com l JUNE 2005 FURTMAIR AUTO SERVICES INC. In Business Since 1987 To Serve YOU 576-9972 51 Bridge Street East, Kitchener 519 WEBSITE: www.furtmair.com E-MAIL: [email protected] * Accredited Test & Repair Facility *An official mark of the Province of Ontario used under licence. At Furtmair Auto Services we are the service professionals. We meet the highest customer service standards. Our company won the Bosch-Jetronic-Cup, finishing first among all service centers in North America. This demonstrates our ability to satisfy our customers. This is what you can expect from us: BUSINESS MONITOR Diverse ... and on the verge of something big Harper at RDM a new publication highlighting Kitchener’s diverse economic structure and raising Kitchener’s profile as a community “on the verge of something big”. The magazine, titled “diverse-city: Kitchener edition,” is published by Exchange Business Communications Inc. under an agreement with the City of Kitchener. Exchange Business Communications is also publisher of Exchange Magazine for Business.The agreement “is an example of a successful public private partnership (P3) with the city of Kitchener,” says Jon Rohr, Publisher of Exchange Magazine and diverse-city: Kitchener edition. “I am very aware of the challenges Kitchener has faced over the last decade, especially with the downtown and ICI expansion,” says Rohr. “The city of Kitchener is on the upside of change, and editorial content in diverse-city: Kitchener edition will reflect that positive shift in momentum that is so crucial to economic success and prosperity. It can be seen in the urban landscape of the downtown core, in the attitude of city staff concerning the efforts to attract new business, and in the way Kitchener is dealing with challenges.” Thirty thousand magazines were distributed, in early May, to Kitchener businesses and selected areas of industrial, commercial and institutional businesses located west of the GTA, 30 minutes from the city. The targeted audience is business owners looking to grow their operation through expansion opportunities, and looking for a diverse community in which to grow. A second issue is scheduled to be published in October, followed by two more in 2006.The premier issue profiles Kitchener native Liza Fromer, morning anchor of CityTV’s Breakfast Television. Liza’s great-grandfather, grandfather and father operated Fromers Bakery on the east side of Kitchener up to 1970. To find out more about diverse-city: Kitchener edition, go to diverse-city.org. KITCHENER BUSINESSES HAVE LAUNCHED consecutive month, but at a slower pace than February. Raw materials prices were up for a third month in a row as crude oil registered its largest increase since December 2002. • Average weekly earnings of payroll employees increased by $3.89 in February to $713 (seasonally adjusted). Industries showing the strongest yearover-year growth rates were: accommodation and food services (+6.2%), mining, oil and gas (+6.0%) and retail trade (+3.9%). • Between 1989 and 2003, services employment grew faster than goods employment in all but four of 27 urban centres. The share of workers in services employment rose fastest in Hamilton, Oshawa, St. Catharines, Niagara and Kitchener. Economic activity rises Federal Conservative Leader Stephen Harper (left) visited RDM Corp in Waterloo in mid-April. He is shown with RDM President and CEO Douglas Newman (centre) and Edward Twardus, President of Energetex of Waterloo. GDP billions of chained $ (1997) XQuote 1,070 1,060 “The prime minister has just cut a $4.5 billion deal to buy votes to deal with allegations of vote-buying. So to deal with Liberal corruption we get an NDP budget. The way this Parliament is supposed to work I guess is that what the Liberals don't steal, the NDP gets to spend.“ 1,050 All industries 1,040 1,030 1,020 1,010 1,000 – Stephen Harper, Federal Conservative Leader (Toronto Star, April 28) 2003 2004 2005 SOURCE STATISTICS CANADA BUSINESS EXCELLENCE Who Wins Your Nomination? Waterloo Region Business Achievement Awards Nominations are being accepted for the 21st Annual Waterloo Region Business Achievement Awards where local companies that have excelled or made outstanding contributions will receive awards in six categories: • • • • • • CIBC BUSINESS OF THE YEAR KPMG EXCELLENCE IN TECHNOLOGY THE RECORD SMALL BUSINESS ROYAL BANK RETAILER OF THE YEAR UNION GAS CORPORATE CITIZENSHIP GOWLINGS NEW BUSINESS Don't hesitate to nominate your own company! All companies must be based within Waterloo Region. The Award Ceremony and Dinner will be held Thursday November 3, 2005 at 7:00 pm at Bingemans. Tickets are $150 each, with a group rate (table of eight) of $1150. The nominations deadline is July 29, 2005. To nominate a company, to order tickets, or for more information, contact Junior Achievement at: 603 Kumpf Drive, Waterloo, ON, N2V 1K3 P: (519) 576-6610 / F: (519) 576-3210 www.jawaterlooregion.org JUNE 2005 l exchangemagazine.com l 9 The all new 2006 Jetta has arrived. Crosby Volkswagen www.crosbyvw.com 1175 Weber Street East, Kitchener (519) 894-9300
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