Time to put on your thinking cap

Transcription

Time to put on
your thinking cap
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MARCH/APRIL 2015 • VOLUME 10 ISSUE 1
16 INTHISISSUE
Take off, eh
12
Toronto-based toque
brand Tuck Shop Trading
Co.’s success has been
more than the husband and
wife duo behind it could
have imagined.
Prairie fire
20
Bringing family back to the table
Winnipeg inventors create unique product, brilliant
brand strategy developed to reunite Canadian
families around the dinner table.
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I
nnovation. It’s a term that in the English language has been overused the past two
decades to the point that it has become cliché.
Innovation
let your senses
explore it
Jeff Brownlee is CME’s vice president
of public affairs and partnerships as
well as publisher of 20/20 magazine
[email protected]
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How many times have you read a specific company’s website extolling how
“innovative” it is? Or, how about this frequently used tagline: “Innovation is the
key to tomorrow.”
Sounds great. But what the heck does it really mean?
Googling the term provides more than 250 million different results, so that’s not
exactly precise. Like beauty, innovation is truly in the eye of the beholder.
If you try to break the definition down into simple components, innovation
really starts with an idea — as an idea to improve something existing, or an
entirely new concept from the depths of someone’s cerebral cortex.
In other words, imagination and creativity with a focus on improvement.
But innovation is more than a new idea. The true crux of innovation is
execution or in other words, making those ideas come to life.
Some argue that in business today, the whole “idea factory” is dead, that we’ve
depleted all of the great innovative ideas.
I completely disagree.
Innovation (in its rudimentary form) has been around since the dawn of time.
As humans, we have a natural tendency to strive to make things better; make our
lives easier.
We haven’t lost that desire throughout history and it’s not dead today. The
difference in this technological age is that the very core and scope of innovation
is changing, before our very eyes.
Instead of earth-shattering developments like the automobile, the computer, the
Internet, innovation today is focused on improving existing ideas and products
and trying to make them better. We haven’t had a huge invention in the past 20
years that has transformed the way we live.
Oh wait, I forgot about 3D printing.
Today, this quickly emerging industry is taking the world by storm and is a
game changer not just for manufacturing in general, but innovation as well.
The small industry that started a few years ago with somewhat neat and
funky applications — scanning your head and printing out a small, 3D model
of it — has evolved to making remarkable “innovations” in manufacturing and
specifically biomedical fields.
Today, neat and funky is printing usable auto and aerospace parts and giving
a baby a new lease on life by enabling surgeons to repair his heart from a
3D-printed model.
Regardless of how you define or view innovation, there’s one thing that you
must take into consideration — people.
“Innovation has nothing to do with how many R&D dollars you spend. It’s not
about money; it’s about the people you have, how you’re led and how much you
get it,” former Apple CEO, Steve Jobs was quoted as saying.
In fact, I would argue that innovation is only limited to the creativity, the
imagination and drive of those who dare push the limits and develop a vision that
many others aren’t able to see. People are the ideas factory.
It takes passion, drive and a willingness to accept failure. It means challenging
the status quo; moving out of our comfort zones and reaching beyond already
established borders.
Innovation is a lot of work and you likely won’t succeed, at first. That’s why
I believe that many are willing to throw in the towel and say innovation, for the
most part is dead — because they are afraid, afraid to fail.
Defining innovation is really subjective and can take on
many forms and meanings. It means change for the better
Toronto’s Lyndsay Borschke wasn’t
afraid to fail, despite being told that her
idea of creating a simple acrylic toque with
names of Canadian “neighbourhoods” on
it wasn’t a good idea.
More than 20,000 toques later, people
in Toronto’s Cabbagetown, Ottawa’s
Westboro and other locales in Montreal
and London are asking for more,
a lot more.
Borschke’s idea turned into overnight
success is innovative because she saw
what it could be and took a risk, which
paid off.
Same with Winnipeg’s Phil Poetker
and Wayne Belog who developed the
Nutrigrill, an Asian-influenced cooking
appliance. Belog, who spent a lot of
time in Asia, had an idea to upgrade the
popular cooking apparatus so it would
sell in the North American market.
By putting a new spin on an existing
product, the duo’s true innovative spirit
shone through in how Nutrigrill is
marketed. Resting solely on the viral
nature of Facebook, the tandem has sold
more than 5,000 units.
As a result, Poetker’s definition of
innovation revolves around change.
“To me, innovation is irrevocably tied
to the end result that you have in mind,”
Poetker shares. “We want to change the
way people think about food, buy it, cook
it. And so the design of the Nutrigrill and
the way it’s introduced to people have always
stemmed from that and always will.”
For Borschke, it’s about pride and
differentiation.
“A toque with a pompom and being
proud of where you are actually from
— that’s what this is in a nutshell,”
she says. “We want to ensure that the
quality, the Canadian quality, remains
in the product because that’s what
differentiates it from everything else.”
So defining innovation is really
subjective and can take on many forms
and meanings. It means change for the
better, getting rid of the old and in with
the new.
And while we think about the term
from the perspective of improvements in
processes and making businesses more
efficient, it’s really the personal aspect
that drives innovation.
We can eat it. We can feel it. We can wear
it. We can see it and yes even smell it.
Innovation for the senses from the
personal perspective. The 250 million
and first definition of innovation is pretty
simple: The exploration and exploitation
of new ideas or rearranging the old in a
new way. Believing. Seeing. Following
through.
Simply put, innovation is not
business as usual. So let your senses go
and explore.
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And the winners are…
A
student at the 600 pupil Erin District High School in Erin,
ON, Phoenix Vaithilingam, has developed a unique blend
of skills to draw on. Those skills helped Vaithilingam win
the 2014 Manufacturing Month student video prize of $2,000 for
demonstrating some of the capabilities of Canadian industry in
a motion picture under two minutes.
The production of From One’s Mind to Another’s Hands featured industrial design, machining and video production, skills
he was taught as part of Erin District’s design and manufacturing programing. His education also allowed Vaithilingam to turn
around his project in a very tight deadline, extremely pertinent
skills in today’s global industry.
“Creation is fun, it’s awesome. Making something from
nothing, bringing an idea into a physical object that you can
bring to people that you can show and say ‘hey, I made this,’”
Vaithilingam said.
The contest, a part of CME’s annual Manufacturing Month
asked students from grade 8–12 to demonstrate what makes
manufacturing cool. As a former Skills Ontario and Skills
Canada competition participant, and a student at a school such
as Erin District High, he had the benefit of education along with
the skills to make it happen.
“One of the benefits of the school is that we try to offer a
diverse program,” said Marc Filion, the teacher who submitted
Vaithilingam’s winning entry. “Phoenix has all the manufacturing
skills, but at the same time he can go and produce his own film
because of the skills he learned in communications.”
Filion, a former engineer with General Motors, has his
students participate in the Skills Ontario competition annually.
Vaithilingam had participated for two years previous, and
had participated in the National Skills Canada Competition in
Toronto in 2014 in the robotics category. That experience led
him to discover the video contest.
“I found the contest on the Skills Ontario Facebook page
and said ‘yeah, I really want to do this, there’s two weeks left, I
better get to work on this now.’”
More Than Machines by Taylor Gerus, Madeline Hubbard
and Ashley Snippe, grade 8 students at St. Michael’s Catholic
School in Kemptville, ON was submitted by their teacher
Madame O’Brien. That video won the other prize for students in
grade 8–12. The video featured everyday examples of manufactured products that impact their lives.
“When you hear the word manufacturing, what’s the first
thing that comes to mind,” read the screen as the winning entry
begins. “Factories and making stuff,” “machines and conveyor
belts,” and “making cars,” answered the girls before detailing
how deeply impactful manufacturing is on their lives.
By demonstrating that the clothing and shoes they wear, the
phones they communicate with, the food they eat and cars
that transport them around are all manufactured, the video
displayed the importance of industry in a unique way. It also
helped to prove that there is an appreciation of the importance
of industry and helped the girls win the Manufacturing Month prize.
The winning component of the video was cited as an appreciation of the importance of innovation in industry. Whereas the
video was able to point to the importance of manufactured
products that support their lives everyday, the Gerus, Hubbard
and Snippe team also managed to effectively illustrate that the
next innovative product will, very likely, be manufactured. “The cool
thing about manufacturing is it can be almost anything.”
Thank you, CME online partners:
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Calling all hosers
in the Great
White North:
Wearing Canadian pride,
passion and innovation
as business “takes off, eh”
BY JEFF BROWNLEE
Proudly made in the Great
White North. That’s how
Toronto’s Lyndsay Borschke
describes her “simple idea” of
manufacturing acrylic toques
with a local flavour that has
resulted in her business
literally taking off
12
WWW.2020MAGAZINE.CA
S
he’s no hoser, but Canada’s most famous brothers, Bob
and Doug McKenzie (no, not the Fords) would be proud
of the owner of Hogtown’s Tuck Shop Trading Post
Co. and its City of Neighbourhoods line of apparel. In fact,
much of Canada is catching on to this unique idea that was
developed on a napkin in a downtown Toronto coffee shop.
“City of Neighbourhoods was an afterthought,”
Borschke 35, admits. “I spent a lot more time developing our
cottage coats and cashmere accessories. When I came up
with the idea (of a toque with neighbourhood names on it) I
said let’s sample it and see what happens. When I brought the
idea home to my husband, he didn’t like it and said it wasn’t
going to work.”
More than 20,000 toques — which by the way originated
with the coureurs de bois, French and Metis fur traders, who
kept their woollen nightcaps on for warmth during cold winter
days — and two years later, both are pretty astounded by the
line’s surging popularity.
Describing Tuck Shop Trading Co.’s success story, you
could delve into the definition of new-age niche manufacturing
and find many linkages to successful marketing and
business development. However, as Canadians, this is more
of a story of our passion for the outdoors, our colourful
pioneering-inspired history, and most importantly, our made in
Canada pride.
As a young girl, Borschke spent her summers in the heart
of the Canadian Shield at Algonquin Park’s Canoe Lake (in
Ontario) first as a camper, then as an employee where she
managed business development and operations of the camp,
including procurement at the tuck shop. It may have been a
small part of the job, but one she really liked and one that led
her to a four-year stint at two different companies designing
clothing for kids’ summer camps.
It also enabled her to nurture and follow her passion.
Like any good Canadian tale, the idea for her new business
venture was created during a drive to the family cottage,
located on that very same lake.
“My mother-in-law had an old Woolrich coat that she had
worn when she was at camp,” Borschke says. “I thought how
cool would that be if we take it, modernize it and make it more
useful and stylish.”
That was the beginning of what would become Tuck Shop
Trading Co. — not just a business, but a strong brand —
that launched in the fall of 2013 and taps into as well as
promotes Canada’s history of the fur trade and epitomizes
a new spin on old products. According to the company’s
website, the company creates, “luxe yet cozy ready-to-wear
[items] and accessories for both men and women — inspired
by Borschke’s current lifestyle: one spent between the city
and cottage.”
Tuck Shop Trading Co. — not just a business, but a
strong brand — that launched in the fall of 2013 and
taps into as well as promotes Canada’s history of the
fur trade and epitomizes a new spin on old products
The first product of the new business venture had Borschke
focusing on a line of high-end cottage coats, using her
mother-in-law’s as a base, with a few modern twists. She also
focused on making cashmere accessories jackets, a foray that
forced her to make an important business decision early on.
“I did source offshore and there are a lot of options as it is
much cheaper; there are not many mills that knit cashmere
in North America. I really wanted to focus on made in North
America however,” Borschke explains. “I did end up finding a
mill in Texas that knits all of our cashmere. Everything else in
the line is made here in Toronto.”
And geography has played an integral role in the company’s
overall success.
Promoting specific communities like Danforth, the Glebe
and Longueil on hats with pompoms has not only generated
hundreds of emails, but spawned new product lines with
requests for many more.
13
Sales this past fall were buoyed during
the Toronto International Film Festival
(TIFF) when some A-listers — Method
Man, Cara Delevigne, Lena Dunham
and Hilary Duff — were sporting the
company’s toques on the red carpet
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“I get a lot of feedback from people who are not
necessarily customers, but ones who want to be because
they would like to see their own neighbourhood on their
toques,” adds Borschke. “I get a lot of emails saying I love
what you are doing but don’t see this neighbourhood. And
then I get two paragraphs on why this neighbourhood should
get a toque. It’s really great to get that type of feedback
from people.”
Sales this past fall were buoyed during the Toronto
International Film Festival (TIFF) when some A-listers —
Method Man, Cara Delevigne, Lena Dunham and Hilary Duff
— were sporting the company’s toques on the red carpet.
But the biggest surprise for the company so far is the
success the garments have had in her hometown of London,
ON selling out of stock in just a week.
“London is pretty proud to wear their neighbourhoods on
their heads. We were really surprised at just how popular
they are there,” she says. “It’s the whole concept of city of
neighbourhoods. I think that has really resonated with our
customers and Canadians in general.”
With two new full-time employees, Borschke has plans to
expand the business south of the border to New York and
Los Angeles.
The growth strategy in the near future includes further
export development in the US because it “makes sense and
is easy.” But expanding into other new markets is also on the
table and the company already ships world-wide; to many
ex-pats who want to showcase their Canadian pride while
living in foreign lands.
Recently, showrooms in Japan that want to sell Toronto
neighbourhood toques have approached the company.
“I found that kind of strange,” Borschke says, with
a chuckle.
Developing a niche, customized product, puts the
company on a good foundation, as that’s critical to future
success in any manufacturing endeavour in Canada. So is a
little innovation and creativity.
This has led to the creation of a “City of
SKIBOURHOODS” line focusing on North America’s
top ski destinations in addition to a spin-off
company, City Knits that will focus on more
custom partnerships.
However, Borschke admits that not all Canadians are eager
just yet to accept the $38 price tag that accompanies the
Canadian-made innovation.
“We do get a little push back now as an acrylic-knit toque is
a less expensive option than other kinds,” she adds. “But our
labour costs are higher. We are not getting these toques made
for a buck in Asia so we have to account for that.
“I read some of the comments on social media about our
products and some are interesting while others are a little
ridiculous. Some people just don’t quite understand the
industry and how much time and energy goes into developing
and producing a product.”
And that’s a message Borschke and company will continue
to push in the future — that the value of something as
simple as a toque can be used as a model to showcase our
Canadian pride.
“A toque with a pompom and being proud of where you are
actually from — that’s what this is in a nutshell,” she says. “I
think we tend to focus on American brands and there are less
and less Canadian businesses in the market. Our toques give
people a little item they can be proud of; something that shows
they’re proud to be Canadian, and proud of whatever city they
come from.”
The value of something as simple as a toque can be
used as a model to showcase our Canadian pride
“In the future, we just hope we grow steadily and that
we are successful. We want to ensure that the quality, the
Canadian quality, remains in the product because that’s what
differentiates it from everything else.”
15
Canadian
Innovation
Sizzles
Good old Canuck
inventiveness brings
us the Nutrigrill, an
easy and fun way to
change how we eat
for the better
BY TREENA HEIN
S
tep aside George Foreman, and make
way for the Nutrigrill. This elegant appliance, with a design that inherently makes
it easy for families and friends to cook nutritious
food together, is the brainchild of Winnipeg
inventors Phil Poetker and Barry Belog. As with
any child, there’s a lot of each ‘parent’ in the
Nutrigrill, and sufficed to say that both Phil and
Barry are very proud of it, and are hoping for
great things in its future.
Before we get to what each inventor brought
to the table, let’s take a close look at the
brainchild itself. At its most basic, the Nutrigrill
is an electric appliance with two main parts. In
the centre, there’s a raised area for grilling meat
or tasty meat alternatives. Surrounding this
is a circular moat where a succulent broth of
your choice simmers tons of colourful veggies.
Everything cooks at the same time, and the
juices from the grill flow down into the moat,
adding extra flavour.
This physical design concept is, of course,
tied to the underlying and highly inventive intent
of the Nutrigrill – to do nothing short of change
the way we eat. As Poetker says, “It’s not just
about the cooking, but about an emotional
connection to our fellow human beings.”
To understand this properly, let’s picture a
family before dinner time on a busy weeknight
or weekend. Instead of Mom or Dad cooking
over a hot stove and then calling everyone when
the food is ready (after which each person might
head off to a different room to eat), the Nutrigrill
brings the family together for preparation,
cooking and eating. The kids can easily join
in the prep of food and broth. Then the family
— or you and your guests — gather around
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Canadian Innovation
the Nutrigrill, cooking, eating and socializing together for a
sustained period of time.
As you take food from the Nutrigrill, it can be dipped in
sauces and/or eaten with a little rice, noodles or another side
dish. “Human beings love to eat together, and this device gives
us the opportunity to do it easily and conveniently,” Poetker
explains. “In Asia, this is a common way to eat, and we knew
that if we took the concept of how they do this and designed
it properly for North America, people would be very excited.”
Preparation and clean-up is very quick and easy, and the
appliance can be used to cook a wide variety of foods from
many cultures. The Nutrigrill also uses very little electricity.
But the benefits of the Nutrigrill don’t stop there. Its design
also promotes healthy eating and weight control because
those gathered around it eat differently than they otherwise
would. “It’s human nature that we’ll eat what is presented
to us, and many repeated tests have shown that using the
Nutrigrill boosts vegetable consumption way above
the average for an evening meal and cuts
meat consumption by two-thirds,”
notes Poetker. “Simply put,
it changes the proportion
of meat to veggies,
cuts down on carb
consumption and cuts
calories consumed.”
For how the
Nutrigrill came about,
let’s circle back to
its creators. It was
Belog who had the
original idea after living
for several years in Asia.
In the large amount of time
he’s spent overseas, Belog
has come to fully understand the
Asian businessperson’s mindset and its
extremely strong focus on relationships. This, in
their view, has been critical to the Nutrigrill’s success.
It was about five years ago that Belog teamed up with
Poetker to make the idea a reality. For his part, Poetker is
a very experienced inventor and product developer who
has commercialized everything from medical devices and
consumer goods, to games and toys. The partners got to work,
doing all the prototyping in Poetker’s garage. “To have the
design we felt was the right one, we had to stick to our guns,”
Poetker remembers. “We figure it took an extra year and a half
for that. We certainly could have tried to market it before that
point, but we wanted it to reach its full potential.” Three years
later, the Nutrigrill was born.
Over that time, the central grill was switched from steel to
stainless steel for greater durability. The pedestal base was
lowered to provide more stability (incidentally allowing for huge
packaging savings) and the team created accessories like chop
sticks, tongs, food-cutting scissors and cookbooks. Poetker
and Belog are now creating other options to promote greater
creativity in cooking different types of food, options that also
enable users to cook more food at one time. These include a
ring steamer, a large round pot and a flat grilling surface that
can each be placed on top of the middle grill element.
Marketing genius
If the story of Nutrigrill innovation stopped here, it would be
impressive enough, but it goes farther. Beyond a truly unique
product lies a truly inventive marketing strategy. Poetker
explained their goal: “We didn’t want to approach larger chain
retailers because it’s very important to us that the Nutrigrill is
presented as a way to change how people consume food for
the better,” he says. “That isn’t their focus, and we know the
delivery of the message has a proven record
in the hands of smaller independent
stores. Of course, sales to
big box retailers are quite
lucrative, mostly due to
the huge distribution
potential, but there’s
also an inevitable
reduction in the
retail price. These
realities made
larger retailers
a less desirable
first stop for the
Nutrigrill.”
The first sales
avenue Poetker and
Belog tried involved
‘associates’ doing in-home
demonstration parties. (By that time,
Poetker and Belog had built up a repertoire
of recipes from different cultures and had presented at the
Red River Exhibition in Winnipeg, among other venues.) Not
much innovation there, and using associates was expensive
and time-intensive to boot. The pair then turned to Facebook,
which changed everything. “We have a large network of friends
all over the world, and we shipped some Nutrigrills to them,”
Poetker explains. “They then shared pictures and opinions
with their ‘Facebook friends,’ and it spread from there. That
was very, very inexpensive. We also used Facebook ads
farther along in the process, because you can determine the
demographic you want to target.”
Sales began during the spring of 2014, and Poetker and Belog
were very pleasantly surprised. “People just didn’t want to buy
one, they wanted to buy 6, or 250 of them to resell, and we now
17
Canadian Innovation
have over 5,000 sold,” Poetker says. Another surprise came a few
months into their booming sales — a call from Kevin Harrington.
They didn’t know who he was — and if you don’t either, sufficed to
say he’s the inventor of the infomercial. His company has launched
and sold more than $4 billion worth of products.
After some meetings, Belog and Poetker agreed to work with
him. Harrington suggested a celebrity endorsement strategy,
and Donatella Arpaia (a judge on the TV show ‘Iron Chef’ and
a celebrity New York restaurateur) and Brett Hoebel (a fitness
training star on ‘The Biggest Loser’ TV show) were approached
to lead the infomercial charge. “It’s a great product for TV
because it’s so demonstrable,” Poetker says. “And Kevin
can get us deals with celebrities that we could never achieve
otherwise, making arrangements where they take only a little
up front and share in long-term profits. He’s really opened
doors for us.” Both a 30-minute and a 2-minute infomercial
are being tested now, with a full rollout to come. Also expect
to see the Nutrigrill on talk shows this year, such as ‘Good
Morning America’ and ‘The View.’ Belog and Poetker are
also happy to report they have an order for 2,000 units from
Yagoozon, Amazon.com’s fastest-growing retail partner.
The creative duo shared some tips on how innovation works
and how it can be nurtured. “To me, innovation is irrevocably
tied to the end result that you have in mind,” Poetker shares.
“We want to change the way people think about food, buy it
and cook it. And so the design of the Nutrigrill and the way
it’s introduced to people has always stemmed from that and
always will.”
Concerning his experience with the entire innovation
process, Poetker stresses the collaborative aspect. “We have
many great friends and colleagues in Asia whom we trust implicitly
with the design and manufacturing of the Nutrigrill,” he explains.
“They possess great aptitude for innovation as is seen in
the quality of the Nutrigrill products, but they lack a depth of
understanding into the North American consumer mindset.
The combination of our inventive nature, and the Chinese
manufacturing prowess coupled with a unique relational form
of doing business, creates a very powerful and successful
working dynamic.”
The combination of our inventive
nature, and the Chinese manufacturing
prowess coupled with a unique
relational form of doing business,
creates a very powerful and successful
working dynamic
Poetker and Belog are pleased to confirm that EDC (Export
Development Canada) has just approved Nutrigrill for export
insurance. “It enables us to offer this new Canadian innovation to
the world markets without the high risk that usually accompanies
foreign sales,” Poetker explains. “This is very important in that it
allows us to make this product available to the world markets
much earlier than otherwise. This helps Nutrigrill to access new
markets, effectively preventing and discouraging copies and
competitors from coming into the marketplace.”
For more information visit: www.nutrigrill.com
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BY BRAD FOUGERE
Canadian manufacturing depends on leaders
with vision, innovative solutions for customers
and the entrepreneurial drive to build and grow
a business. Those leaders who carve out a niche
with a product, service or solution are the heart of
Canada’s most important business sector
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E
ach year, Manitoba’s Canadian Manufacturers & Exporters division
hosts a conference for those manufacturing businesses who have
helped create jobs, grow their local economy and helped solidify
the made in Canada and made in Manitoba brands with their ingenuity
and willingness to step up to the starting line. Increasingly, however,
companies are finding that global competition and a notoriously shifty
global economy means that simply entering the race is not enough.
To capture the spirit of those challenges, Manitoba’s Manufacturing
Week marquee event has taken a different spin. The Dare to Compete
Conference has run in Manitoba for more than ten years, bringing
together CME’s leadership team, and a host of internationally and
locally renowned speakers to provide tools and wisdom to help
Manitoba manufacturing firms to compete in the local, national, North
American and global marketplace.
Manitoba, as a leader in LEAN implementation, has been treated to
some of the top thought leaders and community developers in LEAN
thinking and Consortium development. The province will show that once
again as it hosts the Association for Manufacturing Excellence/Canadian
Manufacturers & Exporters’ Canadian LEAN Conference this June.
However, with a renewed focus on the importance of manufacturing
and exporting and with Manitoba and Canada’s economy on the
road to recovery from the 2008 economic meltdown, it is no longer
possible to conduct business as usual. It is no longer enough to simply
compete. So, the 2015 Dare to Compete Conference, March 24 has
taken a decidedly more direct approach to the message that Manitoba
and Canadian manufacturing and exporting firms need to hear this
year. The 2015 Manitoba Manufacturing Week conference has been
designated Dare to Win.
“Anyone can compete,” says Ron
Koslowsky, CME Manitoba’s divison vice
president. “It’s finishing the race that counts.
Nobody wants to compete and lose.”
“Anyone can compete,” says Ron Koslowsky, CME Manitoba’s
division vice president. “It’s finishing the race that counts. Nobody
wants to compete and lose.”
For Manitoba, manufacturing is vital to the province’s economy and
its manufacturing businesses provide above average wages, in largely
full-time positions for Manitobans.
21
Manufacturing companies accounted
for 10 per cent of the province’s GDP
with more than $15.4 billion in sales
and manufacturing exports made up
60 per cent of the $12.7 billion in
exports that year
While our recent Manufacturing Issues Survey reported
that nearly half of Manitoba firms are facing a skilled labour
shortage, firms still paid wages totaling $3.3 billion dollars
in 2013. Manufacturing companies accounted for 10 per
cent of the province’s GDP with more than $15.4 billion in
sales and manufacturing exports made up to 60 per cent of
the $12.7 billion in exports that year. With export figures for
2014 having just shown that last year was a record year for
Canadian exports, and a new focus on creating export markets
in Korea, Europe and Latin America by the government,
those numbers are on the rise. So, there is no better time for
companies to Dare to Win.
In addition to the conference, Manitoba Manufacturing Week
convenes a gala, the Manitoba Manufacturing Awards Dinner,
to honour the best and brightest firms and business leaders
in Manitoba industry. The awards range from community
contribution to emerging exporter awards and will also honour
one manufacturer who will be inducted into the Manitoba
Manufacturing Hall of Fame.
The Emerging Award honours relatively new manufacturing
firms who have the growth, impact and innovation potential
to become future leaders in Manitoba’s manufacturing and
exporting sectors. Past winners have included current CME
Chairman Craig McIntosh’s Acrylon Plastics.
The Export Award honours an exemplary corporate citizen
who has achieved a level of revenue growth and product line
Check us out at fxrracing.com and follow us and our athletes on facebook, twitter and Instagram
FXR is a premium Canadian snowmobile apparel company designing, developing and producing
highly functional gear for every possible application. FXR designs gear for all forms of racing, extreme
mountain riding, recreational trail riding. It also boasts an expanding search and rescue collection and
incorporates integrated floatation assistance in many styles for maximum safety.
Snowmobiling is arguably the harshest and most demanding environment for clothing on earth.
Constant redevelopment and testing new products and concepts, pushing the limits of functionality,
durability and design is a key R&D component. As well, testing and developing products during all
seasons and is crucial to the success of FXR. While working with race teams, development riders and
scores of ambassador athletes worldwide who push their limits every day with the same passion FXR
creates its products are vital to maintain its position as the most innovative brand in snowmobiling.
FXR has grown into the largest snowmobile apparel brand in the world with dealer direct sales in
over 17 countries and the most extensive collection of high performance products. Going forward,
developing and producing industry-specific products to the search and rescue market, developing new concepts for extreme cold weather and
adding tactical law enforcement specific products are vital developments and planned additions to current product lines.
FXR produces products with more than 30 different vendors in 40 different factories in 11 different countries and manages the logistics of over
300 containers shipping products to multiple warehouses all over the globe.
Growth, innovation, diversification and continuous improvement strategies define the FXR philosophy and push the company to continue to be an
industry leader. That drive is directly related to, in part, the dedication and loyalty of our employees, the partnership and support of the RBC and,
most importantly, the critical support from Export Development Canada.
22
WWW.2020MAGAZINE.CA
development that has seen their sales markets expand to drive
significant and sustained export sales. Renowned Manitoba
transportation OEM New Flyer Industries is a past winner.
The Community Contribution Award rewards a manufacturer
who has built a reputation for improving not only the economic
environment but has shown exemplary social initiative in
Manitoba. This will be the first year for this award.
The Pioneer Award recognizes a company founder of a
Manitoba firm that has been successfully passed on to others
but is viably operating because of the nurture and care of its
founder. The award honours key home-grown builders and has
been given in the past to David W. (D.W.) Friesen, founding
father of the Friesens Corporation.
A visionary leader who revolutionized manufacturing
through innovation of product, process or system is more
vital than ever in the new Dare to Win environment of global
manufacturing supply chains. Our Hall of Fame recipients
have always had the drive to not only compete, but to win out
in the face of adversity and competition. Past winners have
been visionaries such as Lawrence Pollard (Pollard Banknote),
Black Cat Blades, a worldwide leader in the global wear parts industry
In late 2014, Edmonton-based Black Cat Blades, a worldwide leader in the global wear parts industry, purchased AMSCO Industries a
well established foundry in Selkirk. The company that started in 1968 as a division of Delta Blades out of Edmonton, AB, had become
a family-owned operation there in the late 80s and made a name for itself as a manufacturer of wear edges for earth moving and road
maintenance equipment.
By the early 90s increased demand for renowned Black Cat products made expanding operations closer to its main steel supplier in
Selkirk, Manitoba a logical decision. Within a few years, expansion plans saw the company build another facility, this time alongside
their rolling mill supplier. The original facility in Edmonton remained true to the company’s mining and construction roots, while their
Selkirk location focused on road maintenance products.
Black Cat’s quality, structure and capacity positioned them as a production and services provider to global OEM’s such as John Deere
and Case New Holland. And again in 2005 the company expanded, leasing an Edmonton warehouse to keep their inventory of cast
wear parts such as bucket teeth and adapters and other ground engagement tools. With new global market opportunities, the company
expanded overseas opening facilities and a foundry in China. Around the same time, the company purchased a facility in DeWitt, IA with
warehouse and manufacturing capabilities to serve its Midwest US OEM customers.
From humble beginnings and after 47 years of continued growth, Black Cat Blades
now has a total of 807 employees world-wide.
The Black Cat brand has adapted through the various economic times, has
weathered the storm and continues to grow and prosper through it all. Black
Cat Blades attributes its success to its ownership, its employees, its culture, its
customers and its ability to adapt and change with the times.
www.blackcatblades.com
23
J. Robert Lavery (Winpak) and Paul Soubry (New Flyer) as well
as Paul M. Soubry (Ford New Holland), the only father-son duo
in Hall history.
This year’s winners include:
2015 Award Recipients
Hall of Fame Award
Garry Leach, MRM Steel Ltd.
Pioneer Award
Ernest Harry Price, Price Industries (awarded posthumously)
Export Award
Black Cat Blades
Emerging Award
FXR Factory Racing
Community Contribution Award
Boeing Canada Operations Ltd.
The evening will also see awards presented to Manitoba
secondary students who participated in the finals of the
Discovery Program hovercraft building competition during
the Dare to Compete conference. The finalists in last year’s
competition were:
2013-2014 Discovery Program Top 3 Finalists
Gold
Elmwood High School
Silver
Linden Christian School
Bronze
Landmark Collegiate
Helping your community master efficiency
Design with community in mind
24
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stantec.com
THANKYOU
MANITOBAC
E
TO OUR MANUFACTURING WEEK SUPPORTERS
2015 CME
AWARDS
HONOURING
VISIONARY
LEADERS AND
INNOVATORS
A tribute to remarkable individuals and
companies that have made significant and
lasting contributions to the manufacturing
and exporting sector in Manitoba and to
the community, both locally and globally.
®
EMERGING AWARD
FXR Factory Racing
After serving 10 years in the dealer industry with a Honda
and Polaris dealer, in the small town of Morris, MB Milt
Reimer, 27, decided to purchase the company. For the
next 6 years Milt was determined to design and produce
high performance snow rider wear. The first beginnings
were operated in the basement of his house near Sanford,
MB. Since then Milt grew FXR into a $45-million-a-year
snowmobile and motocross clothing empire.
CELEBRATES
EXCELLENCE
CONGRATULATIONS TO THE 2015 AWARD RECIPIENTS
PIONEER AWARD
HALL OF FAME AWARD
(awarded posthumously)
Garry Leach
MRM Steel Ltd.
Ernest Harry Price
Price Industries
Ernest H. Price, Professional
Engineer, purchased the assets
and rights to an agency business
operated by Frank Chester, and
named it Chester & Price in 1946.
On June 24, 1949 it was officially
incorporated as E.H. Price Limited. The company was
originally conceived as a consulting/engineering firm.
The Winnipeg plant was built in 1961, the 20,400 square
foot plant has had over 20 expansion equaling 250,000
square feet of production space.
Ernie had retired, but was still Chairman of the Board when
Ernie’s son Gerry, with a completed PhD in Mechanical
Engineering & Applied Mathematics was recruited to
become the new President.
Garry Leach has had an incredible
career; with wife Carol and two
sons by his side, he has truly been
an industry leader. Leach started
building his career, initially in the
scrap recycling industry in Selkirk,
Manitoba. He has been the owner of
Belcher Island Smelting and Refining Corporation Ltd., his
family investment company, since 1974.
From 1988 to 1995, he served as President and Chief
Executive Officer of MRM Steel Ltd. (formerly Manitoba
Rolling Mills, division of AMCA).
He has shown his continuous dedication to Manitoba
industry by serving as a member of the Premier’s Economic
Innovation and Technology Council. He is a founding
member and former board member of The Business
Council of Manitoba. He currently serves as a director of
Pollard Banknote Ltd, several private corporations and
recently retired as a longtime director of Manitoba Hydro
Electric Board.
EXPORT AWARD
COMMUNITY CONTRIBUTION AWARD
Black Cat Blades
Boeing Canada Operations Ltd.
“Our culture is driven by the rewards of honesty, integrity,
trust and high achievement with respect for each other,
our assets and our environment. These values will not be
compromised for profit.”- Black Cat Blades
Boeing Canada Operations Ltd is a leader in the community
in which they work and live. Boeing expanded in the 1990’s
by 520, 000 square feet at the Winnipeg site. Today, it has
expanded to approximately 800,000 square feet of realestate in Winnipeg.
Black Cat Blades Ltd. has multiple locations dedicated
to production, distribution and warehousing located in
Edmonton, Selkirk, Su Zhou, China and DeWitt, IA. Black
Cat has export experience with over 70 different countries,
states, and provinces around the world, and are actively
pursuing over 200 new export opportunities.
“Building a better world.” Stated in the Boeings Community
Mission Statement. Everyone deserves a helping hand
and Boeing has had a big hand in helping the Winnipeg
community for many years. Boeing invested more than
$173 million and thousands of volunteer man hours just in
2013 alone.
CMEHALLOFFAME.CA
Air traffic control —
Drones are coming
BY JONATHAN HILTZ
Drones are constantly in the news these days. Whether they’re
thwarting terrorists in faraway lands or delivering pizza, we are
fascinated by these robotic wonders that make us feel like we’re on
the edge of a new technological age. Flying above us in everyday
settings, they look as out of place as a DeLorean in the 1950’s and yet
here they are, bridging the gap between yesterday and tomorrow
A
eryon Labs is one of the companies proudly at
the forefront of this new technological marvel
of unmanned aircraft and has been since 2007.
Based in Waterloo, ON, the company works with the
military and a variety of commercial corporations to
design and build drones for uses all over the world.
Some of these included helping the Libyan rebels
fighting to free their country back in 2011, helping
energy giant BP with reconnaissance when they were
cleaning up the infamous oil spill in the Gulf of Mexico
and delivering fuel to Nome, Alaska after their tanker
couldn’t get through because the Bering Sea froze early.
Dave Kroetsch is one of the founders of the company
as well as its president and CEO. Over the years he
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has overseen a number of different drone projects and
continues to be at the cutting edge of the growing
industry. He and his co-founders started out by entering
in academic competitions back when they were going
to the University of Waterloo, which later lead them to
realize the commercial potential of unmanned aerial
systems (UAS’s), as they call them. “We had seen
through the media, the proliferation of drones especially
in the military space and we said there has got to be a
way to bring this technology to the commercial market.”
One way the engineers at Aeryon felt they could be
successful was to make the operating systems as easy
as possible to use, so you didn’t have to be an expert
to run them. They also needed to operate in all weather
conditions. “If we’re in Canada and someone is wearing gloves
you can’t be fiddling with little screwdrivers, you need to be
able to put it together in the field and you then need to be able
to operate it easily.”
When Aeryon first began building UAS’s, there was a certain
amount of prognostication on their part about drones and if
they would even be in demand in a few years. “[We saw] a nascent
need. The crystal ball said this is going to happen and we wanted
to be ready and be there first. Eight years ago nobody knew what
a drone was and now TV shows are being filmed with drones, they
are regularly being used by the Ontario Provincial Police for traffic
accident reconstruction and much more.”
Although drones are being used more in everyday applications, there are still strict aviation rules in Canada and even in
some cases it’s borderline illegal to fly them in the US. This is
obviously to prevent any potential sinister motives, but it has
also slowed the process of drones being used commercially.
For example, a few months ago a hobby drone accidentally
landed on the White House lawn, which brought into question
the safety and security of the president and incidents of the like
are not going to help speed up acceptance of drones as a safe
everyday technology.
In terms of where we are now and where we’re going, Kroetsch
and his team see drones becoming much more of a necessity
in the future to make important and dangerous tasks easier.
“Right now with technology like ours we’ve been able to replace
most of the short-range, manned aerial data gathering that you
would otherwise be doing with a helicopter or other aircraft.
That’s everything from traffic reconstruction to agriculture to
military use. [Drones] have the ability to keep people out of
harm’s way, whether you’re deep in the ocean or in the air.”
A few months ago a hobby drone
accidentally landed on the White House
lawn, which brought into question the
safety and security of the president and
incidents of the like are not going to help
speed up acceptance of drones as a
safe everyday technology
Kroetsch also sees many applications in the future for everyday commercial use as well, such as real estate agents who
want an aerial photo of the house they’re selling. “You’re not
going to hire a helicopter at a few thousand dollars an hour to take
a picture, but if you can buy a drone for a few thousand dollars and
spread that cost over multiple houses, that’s what you’re going to
do. So across all these markets there are a ton of applications and
you’re going to see them on a more regular basis.”
Time will tell if we’re all eventually going to open our front
doors and see a flying robot delivering our pizza or Amazon
purchases. Until then, drones are clearly helping save lives and
preventing injury as we use them for more important applications. Looks like the future is now and we didn’t even need a
Flux Capacitor to get there.
29
Productvity on autopilot
BY JONATHAN HILTZ
It’s been reported that the earliest record of an automated mechanism
was from Edmund Lee back in 1745, when he patented a device that
could automatically tent the sails of windmills. Automation has come a
long way since those days, embedding its usefulness and necessity in
the fabric of humankind over the last two centuries
S
o what is the current state of automation around the
world? Where is the cutting edge technology and new
discoveries to make things faster, lighter and more
efficient for years to come? 20/20 magazine asked three prominent players in the industry these questions to get their take.
Konrad Konnerth is the owner of Konnexio, which is a
London, ON based company that builds custom assembly
automation. Konnerth entered the industry in 1988, working
for a German machine builder that was assembling highend, fast robots who were incredibly efficient but also very
rigid and not adaptable to new tasks. He eventually moved
to Canada and started building machines for a variety of
purposes. “My goal was always to build a different type of
machine, one that was more modular and more flexible.”
When asked about the future of production and
manufacturing Konnerth was quick to point out how
essential automation is. “I definitely believe that it is the only
way we can go. We cannot compete here [in Canada] on
labour costs,” he said. “Automation in my opinion is the only
way to keep jobs here.”
Konnerth is constantly debating the benefits of automation
with colleagues who argue that it is much easier to train
a person to adapt to specific tasks then it is to adapt
machines, which is why he has dedicated much of his career
thus far to making machines more flexible and adaptable.
One way he says to do that is to put more emphasis on
changes in programming to give the machines a ‘bigger
brain’ so to speak. “I want to, in the future, be able to make
30
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programming changes to a system as opposed to hard tool
changes. It’s much faster and easier to do that.” Konnerth
also sees the future of automation to be smaller, lighter and
more portable. He believes we have made great progress
with machines in the last fifteen years but feels we still have
a ways to go.
Christian Sterner started his own venture called Sterner
Automation back in 1990 shortly after he graduated from
systems design engineering at the University of Waterloo.
He has done many build and design projects over the years
and now is the president of all Canadian operations for M&R
Automation, whose head office is in Austria. They mainly
focus on automotive parts assembly equipment.
Looking back, Sterner notes the significant changes that
have happened in his time. “I’ve been in the business for
twenty five years and back in the nineties we were trying to
automate everything in order to eliminate the person 100 per
cent from all operations.” he said. “A number of issues arose.
For example you then had all this automated equipment that
is fairly sophisticated and needs people with quite high skills
to maintain it. So you end up with engineers in the shop, which
replaces one kind of labour with a higher priced kind of labour.”
He goes on to explain some of the other, very costly issues
as well, including creating automation for products such
as vehicles that sometimes don’t meet their sales targets,
but still cost a lot, in terms of designing and building the
machines that put them together. “[The industry] soon
realized that we couldn’t go and put that much money into
automating everything and it would be better to put people
in some roles, because with people we can scale it.”
As for where automation is going, Sterner notes a marriage
between cutting edge technology and human necessity that
is propelling his part of the industry forward. “A big driver for
our business has been the reduction of fuel consumption on
cars. Almost all the projects I have been involved with for the
last five years have been about improving fuel consumption.”
Sterner believes that one of the many roads which will
pave the future of automation is getting robots and humans
to work more closely together. “There are [industrial] robots
that can now interact safely with people.” He sees this as
a way to create a balance between placing appropriate
needs on the human workforce, while taking advantage of
automated efficiency.
Ron Ford is the president of AGiiLE Inc., which is a full
service bar code integrator. They install bar code hardware
and software into industrial plants or warehouses in order
to help the company track their inventory. “Automation is at
the core of our business as we help companies automate
their processes. If a company is tracking their inventory
with a clipboard, we can replace that clipboard with a bar
code scanner.”
Ford sees bar codes and other organizational and tracking
technology to be a big factor in the future of logistics and
automation. He thinks that the technology will continue to
One of the many roads which will
pave the future of automation
is getting robots and humans to
work more closely together
be more adaptable and easier to implement, which will mean
“companies will be quicker to adopt these tools to make
their jobs more efficient and productive.”
Time marches on and so do necessity, invention and
innovation. As programming and machines become more
sophisticated, lighter, more adaptable and even portable,
the nature of automation and productivity will no doubt
change. But whether it’s a mechanism designed to simply
tilt the sails of a windmill or as complicated as a factory
that assembles products using a balance of advanced
robots and an educated workforce, it’s clear that automation
is here to stay — and will continue to transform industry to
our benefit.
31
Air France makes travel to the world smooth and
comfortable for Canadian Business travelers
With service from 22 cities in Canada (1), the Delta, KLM, Air France, Alitalia
Joint Venture provides nonstop or one-stop service to major business cities
in North America and Europe. Our global network offers business travellers
convenient access and more schedule options to virtually any city where you
do business. Our four carriers are also members of the SkyTeam® alliance,
offering access to more than 1,000 destinations
T
he four joint venture partners’ flights and
fares are combinable to offer business
travelers even more options and flexibility.
Air France operates up to three daily flights
between Montreal and Paris, and once daily out
of Toronto to Paris. An Air France and KLM shuttle
coach bus service connects Ottawa travellers to
and from Montreal’s airport.
And as of March 29, Air France will be
introducing a Vancouver-Paris direct flight, up to 5
times weekly.
Be our guest, at the airport and on board!
As a business traveler, you are at the core of
everything we do. We greet you efficiently and
courteously, and put at your disposal a wide range
of services that ensure you experience a smooth
and enjoyable trip every step of the way. In flight,
we serve genuine champagne in all travel classes.
All of our fares allow for a free stopover in Paris.
It offers 40% more personal space in comparison
to economy cabin, with a seat that reclines in its
hard shell ensuring more privacy. Gourmet meals
are specifically adapted for Premium Economy.
SkyPriority
A special service rolled out on all our Canadian
gateways, SkyPriority addresses SkyTeam Elite
Plus members as well as clients who fly Business
and Premium Economy Class.
It is an exclusive ‘priority’ lane which makes
journey through the airport seamless and easy:
priority check-in areas, baggage drop off, service at
ticket/transfer desks and more.
Lounges
Eligible passengers will find AIR FRANCE KLM
lounges in Montreal and Toronto, and access to lounge
facilities in Vancouver and Calgary, as well as more
than 500 SkyTeam lounges around the world.
Air France Business Class: a cocoon in the sky
We offer privileged and exclusive travel experience
both on ground and onboard.
Extra attention is given to gastronomy and a
French-style dining experience: every ten days
menus are renewed on the Paris flights to allow
also for the frequent traveller pleasure in their dining
experience. Business class meals are designed by
Michelin starred chefs, a new one every eight months
for our clients’ renewed pleasure.
Apps to simplify your travel experience
With Air France Connect, we show we care by
informing you pro-actively of changes and irregularities concerning your trip via SMS or email.
Also, the Air France mobile apps a free app
compatible with all mobile devices that will enable
you to book or modify your seat selection, check
in, receive an electronic boarding pass, check flight
schedules in real time and even contact our airline
directly if needed.
Premium Economy, in a class of its own
Totally in a class by itself, Premium Economy
features numerous benefits for travellers wanting to
fly comfortably at prices suited to their needs. The
Premium Economy product is deployed on all Air
France routes departing Canada
Do you and your colleagues often travel to the
US and other parts of the world on business?
We make the world more accessible. Invite your
travel manager company to visit jv-corporate-travel-solutions.ca and see how we can answer your
company needs with exclusive advantages.
(1)
32
WWW.2020MAGAZINE.CA
Thanks to our codeshare agreement with WestJet
Berlin
Casablanca
Athens
Istanbul
Bucharest
Barcelona
Tel Aviv
Rome
Geneva
Tunis
Nice
Moscow
Paris
RENDEZ-VOUS IN PARIS
Or in more than 1000 destinations thanks to one of the largest
networks in the world with KLM and our SkyTeam partners.
AIRFRANCE.CA
AUTO21 creates Canadian
powerhouse in automotive R&D
BY DEBBIE LAWES
Automobile research isn’t only about making more and better vehicles
for less. As the AUTO21 Network of Centres of Excellence (NCE) has
discovered, it’s also about saving more young children from death and
disability, reducing crime and reducing our reliance on oil
S
omething unprecedented happened at the turn of the
last millennium.
Universities, government, automakers and their suppliers
came up with a plan for a pan-Canadian research network to
improve the safety and sustainability of automobiles and the
competitiveness of Canada’s $85-billion-a-year auto industry.
Launched in 2001, AUTO21 was the largest NCE ever
funded and probably the broadest. This wasn’t just engineers
talking to engineers. It involved professionals of all stripes,
from medical doctors and nurses to scientists, sociologist,
lawyers, psychologists, geographers, human kinetics people
and artists.
Prior to AUTO21, there were relatively few automotive
researchers in Canada. Today, as the network nears the end of
its 14-year mandate, more than 200 researchers and 400 highly
trained graduate and post-doctoral students from across the
country are collaborating with some 120 companies and other
external partners on 38 research projects. In total, the network
has trained more than 2,500 students.
The $140 million invested in AUTO21 from its public and
private sector partners has generated more than $1.1 billion in
34
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estimated economic and social benefits, a recent independent
economic impact study found. These investments have changed
the industry and society in ways no one could have imagined.
Just ask residents in Winnipeg, MB, where car thefts have
dropped an astounding 90 per cent and vehicle insurance premiums have been cut by over $30 million. Manitoba’s Attorney
General credited this success to AUTO21 research.
Saving more children from dying or being injured in car
crashes is another priority at AUTO21. One project with Magna
International led to the development of a safer booster seat
that is easy for parents to install and appealing to children.
That commercial product is now being distributed to 16 First
Nations communities as part of a larger research project aimed
at reducing the risk of injury and death of Aboriginal children.
Dr. Peter Frise, AUTO21’s CEO and scientific director, says
results from several projects are already moving into production. “You can buy a car right now that’s made in Canada that
has AUTO21 bio-based plastics it in. And, if you drive a Toyota
that has aluminum wheels on it, those wheels come out of
a plant in Burnaby, BC that uses a mold design and release
technology that was developed by AUTO21.”
Good driving habits
cut carbon emissions
A University of Toronto student has
proven it’s possible to use less fuel
and cut carbon emissions simply by
changing how you drive.
Turuna Seecharan won the top
$7,000 prize in the 2014 AUTO21
TestDRIVE competition for research showing how a
simulator-based eco-driving training program can
reduce fuel consumption by at least 10 per cent.
The project also won the 2014 Canadian Association of
Municipal Administrators Willis Award for Innovation.
Dave Pascoe, Magna’s vice president of engineering and
R&D, says the network’s greatest legacy has been its ability
to bridge the gap between universities and industry. “By
working with an industry partner, you’re assured of working on
topics that are relevant to industry and have a direct route to
commercialization. It turns all that time, effort and money into
a bigger return for the Canadian economy.”
Saving more children from dying or being
injured in car crashes is another priority
at AUTO21. One project with Magna
International led to the development of a
safer booster seat that is easy for parents
to install and appealing to children
AUTO21 will continue its tech transfer activities for another
two years to deploy the knowledge created in the research
program, solidify connections and foster the placement of
network trainees in Canada’s industry. A final networking
conference is scheduled for May 26-27, 2015 in Ottawa.
“These collaborations are about creating the knowledge
base that our industry needs to compete,” says Blake Smith,
director of environment energy and vehicle safety at Ford
Motor Company of Canada and chair of AUTO21. “We’re not
going to compete with low-cost countries on low-tech, easyto-do things. It’s the knowledge that drives the value-added
that will make our manufacturing competitive.”
TestDRIVE was held Dec. 2 at the annual all-member
meeting of the Ontario Council of Manufacturing
Executives at Queen’s Park in Toronto in partnership
with the Canadian Manufacturers & Exporters.
The second place prize went to Kinga Eliasz at
McMaster University for her research on an in-car
recording device that quantifies changes in actual onroad driving behaviour in older drivers. Alicia Figueira
at the University of British Columbia won third place
for her work on energy absorbing aluminum foam that
mitigates whiplash injuries.
“TestDRIVE is a leading competition in addressing the
demands of global competition on Canada’s automotive
sector,” said CME president and CEO Jayson Myers.
“The rigours of the competition ensure that innovations
and technological advancements can be quantifiable,
leading to development and commercialization of
adoptable, practical solutions which help to maintain
Canada’s vital leadership role in the automotive sector.”
35
Printable electronics
Why printable electronics matters
to Canadian product companies
The challenge for manufacturers
and product companies
Consider the following:
According to market research firm IDTechEx, the global market
for printed and potentially printable electronics, including
organics, inorganics and composites, will rise from about US$24
billion in 2014 to $70.4 billion in 2024, with a compound annual
growth rate of 40 per cent.
•
Windows that can block wi-fi signals, or harvest solar
energy to produce electricity.
•
Intelligent packaging that can wirelessly communicate
product information to consumers, update its own shipping
status, and monitor environmental conditions.
•
Aircraft and automobiles that no longer require traditional
silicon-based electronics and bulky cabling for their
subsystems.
•
Fabrics with embedded flexible components that can
monitor vital signs, or even provide battery power for mobile
devices.
PE lies at the convergence of several industries in which
Canada has a strong track record – advanced materials, microelectronics, information and communications technologies,
printing and advanced manufacturing.
But key challenges remain to develop new materials,
microcircuits, manufacturing equipment and processes, and
information systems that connect PE-enabled devices or objects,
to realize the full potential of PE.
All of this and more is possible with printable electronics, or PE.
PE gives manufacturers and product companies the means
to increase their competitive edge and reduce costs, with
new applications and alternatives to traditional electronic
components. It includes organic, flexible and wearable
electronics.
What is printable electronics?
PE combines new materials with cost-effective, large area
production processes. Conventional printing processes, such as
screen-printing, offset lithography and inkjet, are used to deposit
conductive inks onto a variety of flexible substrates, such as
plastics, papers and fabrics.
The result is a whole new world of electronics that are low
cost and consume little power. They can be disposable,
biodegradable and even stretchable – attributes that defy the
limitations of traditional rigid components.
PE-enabled products are already around us. These include the
biosensors in the disposable glucose test strips used by diabetes
patients, the embedded antennas in mobile devices, and the
touch displays on the consumer appliances and devices we use
every day.
To learn more about PE and its applications, please download
our free whitepaper, Printable Electronics: Canada’s
Opportunity, at www.cpeia-acei.ca/whitepaper
The role of Canada’s printable
electronics association
“The global market opportunity for Canada in PE today is much
like the photonics industry in the 1990s,” said Peter Kallai,
Executive Director of the Canadian Printable Electronics
Industry Association (CPEIA). “Canada can stake a commanding
claim in this new growth industry, but the participation of our
manufacturing sector and product companies is key.”
The CPEIA launched last fall with the support of the National
Research Council of Canada and other PE stakeholders. It
already has almost 40 members.
The CPEIA’s mandate is to serve as the hub and catalyst for
cooperation and collaboration, between the creators and end
users of technology, and other stakeholder groups that can
support R&D and commercialization, to build a strong and
globally competitive Canadian PE sector.
A world of possibilities
Sharpen your competitive edge.
Accelerate time to market.
Cut costs.
The 2015 Canadian Printable
Electronics Symposium
The CPEIA has taken the reins of Canada’s only dedicated PE
industry event. The 2015 Canadian Printable Electronics Symposium
(CPES2015) will take place April 21-22 in Montreal.
Over two information-packed days, 120+ attendees will have
the opportunity to learn, network and develop partnerships for
collaboration and business development.
The agenda includes five keynote presentations, 30 in-depth
presentations by industry experts and leading Canadian
researchers, two panel sessions with representatives from
Canadian industry and funding organizations, and 15 academic
posters from leading Canadian principal investigators and their
teams.
“This is the place for Canadian manufacturers and product
companies to find out how they can harness the power of PE to
open up new markets and drive new revenue,” said Kallai. “It’s not
only an opportunity to learn, but also make business happen.”
To learn more about CPES2015 or to register, please visit
www.cpeia-acei.ca/symposium
70+ public and private sector
organizations in Canada are already
engaged with printable electronics,
to bring new products and
applications to market.
The Canadian Printable Electronics
Industry Association (CPEIA) is your
point of entry into this exciting new
technology area.
Learn more at www.cpeia-acei.ca
Engage with Canada’s PE industry at CPES2015 in Montreal, April 21-22.
Visit www.cpeia-acei.ca/symposium to learn more.
CME’s SMART Program
boosts 1,100 Ontario
companies with grants
BY JAMES CARELESS
S
ince 2008, the CME’s SMART Advanced Technologies
for Global Growth Program (www.cme-smart.ca) has
helped some 1,100 eligible small- and medium-sized
Ontario manufacturers (15–1000 employees) improve their
productivity through the adoption/adaptation of new or
upgraded advanced technologies, materials or processes.
It’s a two-for-one grant system: The company seeking the
grant covers 65 per cent of the proposed project cost, and
SMART covers the other 35 per cent, up to $100,000.
“CME’s SMART Program is designed to help Ontario
companies’ strategic investments to modernize their
processes, improve their productivity and extend their
international reach,” said Ian Howcroft, vice president of CME
Ontario. “SMART is designed to make a real difference.”
SMART was originally funded by the Ontario government,
though the federal government’s FedDev Ontario agency
took over funding SMART in 2009. To date, FedDev has
provided CME with more than $38 million to deliver SMART
grants, with another $20 million in new funding approved
as of this past December. They have so far supported
more than 730 projects, created more than 5,400 jobs and
maintained more than 11,000 positions.
Fort Erie-based aerospace subcontractor Fleet Canada
received a SMART grant for $75,000 in 2013. “We needed
the money to help buy a new five-axis CNC machine,” said
Marika Kozachenko, Fleet Canada’s business development
manager. Obtaining the new CNC machine was critical to
Fleet Canada successfully bidding for a share of the US Air
Force KC-46 aerial refueling tanker program. Based on the
Boeing 767 aircraft, the KC-46 is replacing a portion of the
US military’s aging KC-135 tankers, which use the obsolete
Boeing 707 platform.
“Without this CNC machine, we would not have won a
KC-46 contract,” Kozachenko. The stakes are high: With
up to 179 KC-46s scheduled to be built, this contact “will
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provide Fleet Canada with a steady revenue source into
2029,” she said.
Plitron Manufacturing of Toronto has received two
SMART grants totalling $150,000 to date, and is applying
for its third grant under the program. Plitron makes toroidal
transformers that are used in its Torus Power Conditioners
to provide ‘clean’ low-noise electricity to sensitive
electronic devices.
SMART was originally funded by the
Ontario government, though the
federal government’s FedDev Ontario
agency took over funding SMART in
2009. To date, FedDev has provided
CME with more than $38 million to
deliver SMART grants, with another
$20 million in new funding approved
as of this past December
“Our SMART grants have helped us update our toroidal
transformer winding machines – which were no longer
supported by their German manufacturer – and to install an
overhead hoist system to improve our production flow, and
rationalize our transformer production process to reduce
steps,” said Steve Nolan, Plitron’s vice president of sales
and operations. “These improvements have significantly
improved the efficiency and cost-effectiveness of our plant
operation.”
On a tastier note, Toronto’s Tradition Fine Foods Ltd.
used its $57,000 SMART grant to help pay for a new flour
delivery system in its pastry-making bakery. “This system
takes the flour from our silos directly to our industrial
mixing bowls,” said Catherine Glowczewski, Tradition’s vice
president. “This has allowed us to boost our pastry exports
by 50 per cent, and raised the percentage of our baked goods
sold internationally to an all-time high of 90 per cent.”
All three of these companies speak very highly of the CME’s
SMART Program, and the people who run it. “CME SMART
Director Louise Rubletz and her associate Emiliano Introcaso
have been extremely helpful and knowledgeable in guiding
us through the process,” said Kozachenko. “These SMART
people are very smart people.”
The SMART process is also straightforward, said Nolan.
“You make your application, they go over it, and that’s it.
There’s no going back-and-forth, being asked for more details
and paperwork.”
Steps are taken to ensure applicants focus their
proposals to meet the program’s guidelines. “Our people
are happy to provide applicants with expert advice and
support,” said Rubletz. For businesses that need assistance
in identifying potential SMART
projects, one option is to hire
a professional consultant to
assess the business for such
possibilities. In these cases,
the SMART Program will pay up
to 50 per cent of the consultant’s
cost, up to a ceiling of $15,000.
“SMART really delivers for
Ontario business,” concluded
Catherine Glowczewski. “If only
Catherine Glowczewski
all grant programs were this
effective and well-run.”
To apply for a SMART
grant online, go to www.cme-smart.ca. All the details
are there to help your Ontario business get the financial
boost it needs to improve its competitiveness, processes
and productivity.
Shop Metalworking Technology
Canada’s best info source for metal products manufacturing in print and online
Read comprehensive editorial content and gain insights into:
ü New manufacturing technologies
ü Productivity solutions
ü New tooling, machinery and equipment
FREE subscriptions are available to qualified personnel within Canadian companies doing metalworking operations.
www.shopmetaltech.com • Email: [email protected] • Call: 905-729-1288
39
Canada Makes is Canadian Manufacturers & Exporters
additive manufacturing network. Its mandate is to
encourage and enable the adoption of 3D printing through
its partnerships with industry, educational institutions and
additive manufacturing firms.
“Canada Makes provides the thought leadership
surrounding adoption and commercialization of additive
manufacturing in Canada through CME’s vast networking
clout and by partnering with leading edge companies and
institutions,” said Martin Lavoie, CME’s director of policy.
Since the launch in September 2014, Canada Makes
has forged partnerships with various academic and
commercial institutions to develop a network capable of
demonstrating and supporting the benefits and potential of
3D printing in all its forms.
Partner organizations include: Sheridan College, Niagara
College, Saskatchewan Polytechnic, the University
of Windsor, Queen’s University Sparq Lab, Emily Carr
University of Art + Design, University of Ontario Institute
of Technology, Prince Edward/Lennox & Addington
Community Futures Development Corporation (PELA
CFDC), WEtech Alliance, Machine Tool Systems Inc.,
Proto3000, Javelin Technologies, Cimetrix, and Canadian
Printable Electronics Industry Association (CPEIA).
In addition, Canada Makes has partnered with the National
Research Council to connect 10 SMEs with a program
designed to enable demonstration projects using metal,
laser additive technology.
“For companies who are prepared to complete a
prototype but have not yet adopted laser additive
technology into their manufacturing process, the NRC
program is an invaluable opportunity,” said Frank Defalco,
communications specialist for Canada Makes.
For a complete list of Canada Makes partners, to find a
Canada Makes demonstration event in your region or for
information on becoming a member of Canada’s premier
additive manufacturing network visit www.canadamakes.
ca or contact Martin Lavoie, director of policy, Canadian
Manufacturers & Exporters [email protected]
40
WWW.2020MAGAZINE.CA
Optimize your design for
additive manufacturing
BY ARIAN RAYEGANI
Additive manufacturing is one of the most
versatile methods of manufacturing and it can
be used to create complex parts with great
accuracy. However, it is important for designs to
be optimized specifically for 3D printing to obtain
the most benefits. There are a few key ways to
improve your CAD model so that your parts will
be created in a time and cost effective manner
F
irst of all, when sending in your design to be printed, the
cost is based on how long the printer needs to run in
order to finish the part. The largest factor in print time is
the extent to which the support and model material are used
together. As such, reducing the use of support material should
be a key factor when designing your CAD model, especially
once you get into very large parts. This way, as there will be
less support material, less time will be consumed.
Furthermore, model material and support material cannot
be used at the same time because their respective extrusion
tips operate at different temperatures. Once the printer has
deposited the model material, its extrusion tip must cool down
while the support material’s extrusion tip warms up - this way
the support material can be deposited. Since only a small fan
is used to cool the tips down from roughly 315 C to 210 C the
process takes several minutes. The printer must wait until the
tips have reached their appropriate temperatures before starting the next layer. This process of cooling the tips has to be
performed every time support and model material are on the
same layer. As designs sometimes require a couple hundred
layers to build, your total print time can quickly add up.
To save significant time, design your part to minimize the use of
support material, especially on the same layer as the model material.
Canadian Manufacturers & Exporters additive manufacturing network
Of course this is not always possible, but there are some
strategies to help save time.
When designing your part consider what orientation would
result in the highest quality printed part. The orientation of your
part significantly affects its strength, surface finish and required
build time.
Consider the simple example in figure 1(a). If the part is
oriented on its long edge as shown in figure 1(b), the part
would be strong and would use a moderate amount of support
material, however it would have a poor surface finish because
of the minimum step size from layer to layer. With this setup
it would take about 3.5 hours to build the part. If positioned
on its short side as shown in figure 1(c), there would be a
better surface finish but it would take much longer to print
because support material would be necessary for almost
all the layers. Additionally, the part would be slightly weaker
because stresses are not supported as well between the
layers. With this setup it would take about 10 hours to build.
The best option is to orient the part on its side (figure 1(d)). In
this orientation very little support material is needed and both
surface finish and strength properties are excellent. This setup
would require one hour to build.
In the figures below the support material is shaded yellow
and the model material is shaded red. Although the example
used here is simple and in practice it is not always so clear,
keep in mind that all parts should be designed with the final
print orientation in mind.
Figure 2(c)
Displays the part oriented on
its “short” edge
Figure 3(d)
Displays part oriented on its side
Once the orientation has been decided, try to minimize the
use of features that overhang at an angle of 45 degrees or less
to the horizontal plane. If a feature has a slope of 45 degrees
or less, support material will be needed so that the model
material can be supported. An example of this is changing a
hole feature as shown in figure 2 (a) to a diamond cut extrude
feature. In figure 2(b) the angles are at 45 degrees, so no support material is needed. Another approach is to drill the hole
once the part has been printed. Drilling the hole after it has
been printed will save you printing costs, but at an expense of
extra labor after printing. Of course this is not always possible
or necessary, but if reducing build time and saving cost is a
priority, these are great tools to incorporate into your CAD
model. The example below displays a small part and holes on
the same level. It would take 2.7 hours to print with holes and
only 2.1 hours with the diamond cut extrude. Once again the
support material is shaded in yellow.
Figure 2(a)
The hole feature
and the support
material required
Figure 1(a)
Displays the CAD design to be printed
Figure 1(b)
Displays the part oriented
on its long edge
Figure 2(b)
The diamond
feature requires
no support
41
Canadian Manufacturers & Exporters additive manufacturing network
Lastly, determine whether or not it would be ideal to split
your design into an assembly rather than one part with
multiple features.
This should be considered when a design has two or more
features with significant strength and/or surface finish requirements and a common print orientation cannot be achieved.
The part in figure 3(a) has two important features. The main
‘arm’ and the mounting feature at the end of the arm. Both
are required for good strength characteristics, however their
ideal print orientation is perpendicular to each other. If these
two features are to be printed as one part as shown in the
orientation in figure 3(b), then the arm would meet the strength
requirement. However, the mounting feature might not.
In addition, the build time would be increased because
added support is needed. The design in figure 3(b) will require
about 2.6 hours to build. On the other hand, if the same part is
designed for assembly after printing (figure 3(c)), both features
will have their ideal orientation required to produce the highest
Figure 3(a)
Displays the two features as one part
quality part. In this example, if the design is split up into the
two parts it would take a combined total time of 1.6 hours to
print, saving one hour, while producing a better part. Once
again, these parts are small and time savings are more drastic
on larger parts.
As examples illustrate, there are multiple techniques worth
considering when designing a product to be manufactured
using 3D printing. These techniques can be applied to save
time, cost and maximize the quality of the part. It is important
to consider the final print orientation while designing a CAD
model, and to remember the benefits of eliminating support
material, as per the hole and diamond example. Finally, it may
also be wise to split up key features into separate parts and
assemble them after printing. These are only a few of the most
effective techniques that can be applied to optimize the 3D
printing experience. Additive manufacturing truly is one of the
most versatile methods of manufacturing and the field is rife
with strategies for an optimal production experience.
Figure 3(b)
Displays how the part would be printed as one part.
Notice the extensive use of support material
Figure 3(c)
Displays the arm and the mount designed
as two separate parts
Reach out to industry by publishing your release via Canada’s
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in Canada supplemented with direct email, social media and online publishing.
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to learn how Canadian Manufacturers & Exporters
can help you reach your audience with Industry Wire.
42
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Sheridan and CME launch Canada Makes:
Canada’s premier additive manufacturing network
Additive manufacturing has
the potential to revolutionize
manufacturing in Canada.
Shifting from prototypes and testing to
viable (and profitable) manufacturing
processes, 3D printing technology has
seemingly limitless possibilities.
With its presence steadily increasing,
the time has never been better for
companies to explore how 3D printing
can boost their operations in a
cost‑effective way.
But even with so much buzz, local
manufacturers need more than talk to
change how they do business.
With the creation of Canada Makes,
local manufacturers can now see
the benefits of 3D printing for
themselves, and learn how to make
a smooth transition in adopting this
transformative technology.
44
WWW.2020MAGAZINE.CA
L
aunched last fall, Canada Makes is a national network of excellence
designed to help Canadian companies understand how additive
manufacturing could improve their operations.
Created by Canadian Manufacturers & Exporters, Canada Makes
partnered with Sheridan College’s Centre for Advanced Manufacturing
and Design Technologies (CAMDT), to bring together knowledgeable
business professionals, academic institutions and leaders of industry, all
of whom are dedicated to expanding the use of additive manufacturing
and 3D printing in Canada.
“Our capacity to partner with academic institutions such as
Sheridan College’s CAMDT and leverage their advanced manufacturing
equipment and expertise is a key determinant of success for the
manufacturing industry, especially SMEs,” said Martin Lavoie,
CME’s director of policy. “These partnerships are becoming extremely
important to achieving our objective to increase manufacturing
production in Canada.”
“You can manufacture products in a different way,” said
Dr. Farzad Rayegani, the director of CAMDT and associate dean of
mechanical and electrical engineering at Sheridan. “And we want to help
manufacturers learn how this new technology can help them.”
The network covers a broad range of additive manufacturing
technologies including 3D printing; reverse engineering 3D imaging;
medical implants and replacement human tissue; metallic 3D printing; 3D
printing with electronics embedded, and other applications.
“When it’s used to create the tools needed for mass production, 3D
printing can accelerate a company’s product development cycle. It
allows the molds to be built and refined quickly and cost effectively,” said
Rayegani, adding that this technology is ideal for industries like medical
and aerospace where projects are low volume and complex.
But while the potential is enormous, Rayegani understands
manufacturers will want proof of the benefits before making any kind of
investment in new equipment.
“Whenever there is a new technology, there is always
hesitation,” said Rayegani. “And I understand with any change
to operations there are risks, and it’s difficult to disrupt day-today business to invest in and adopt new technology,” he said.
To minimize this risk, a key element of Canada Makes are
planned demonstration sessions and training workshops
across the country throughout the year.
Some of these workshops are hosted at the CAMDT facility
in Brampton, ON, which is considered one of the country’s
most sophisticated applied research labs for commercial
3D production. CAMDT’s 40,000-square-foot manufacturing
facilities include state-of-the-art labs and a flexible automation
and fabrication centre. Thanks to the ongoing partnership with
3D printing industry leader Cimetrix Solutions, the Cimetrix
Additive Manufacturing Centre was established, equipping
CAMDT with the latest in 3D Printing technology and an
ongoing network of expertise.
“Manufacturers can work with our expertise, learn about
this technology, try it and if they like it, then they can go and
implement it,” said Rayegani. “There’s no need to take a leap
of faith. Work with us and see if it’s a good fit.”
Industry needs engineers that understand
additive manufacturing technologies and are
able to design for additive manufacturing
The facility also includes an energy systems lab where
students conduct applied research in energy systems, ondemand renewable electricity production, and distributed
energy generation, and a robotics centre that features robots
with welding; picking, packing and palletizing; machine
tending; material handling and product assembly capabilities.
For the Canada Makes workshops, companies get a handson opportunity to see CAMDT’s state-of-the-art additive
manufacturing equipment produce advanced prototypes,
manufacturing tools and even final end-use parts.
Another added bonus — companies can also meet with
Sheridan’s engineering students who could one day become
new employees, trained in the latest additive manufacturing
applications. Sheridan routinely partners engineering students
with local businesses in need of 3D printing work, giving them
valuable client experience before they graduate.
“Industry needs engineers that understand additive
manufacturing technologies and are able to design for additive
manufacturing,” said Rayegani. “We’re doing our part in
developing both the next generation of engineers, as well as
engineering technologies.”
To learn more about Canada Makes, visit www.canadamakes.ca.
45
Exports help an Ontario
drone maker fly high
Fast growth based on overseas sales helped earn eight-year-old
Aeryon Labs the province’s Exporter of the Year award
S
mall drones made by Aeryon Labs are used in some parts
of the world to count sea lions, all the better to gauge the
health of the ecosystems the creatures inhabit.
Elsewhere, the drones, also known as small unmanned
aerial systems or sUAS, fly into jungle hideouts in advance of
drug enforcement officers. Drones built by the Waterloo, ON,
company have mapped mountaintop glaciers and evaluated
traffic accidents on expressways.
With customers all over the globe, potential applications for
Aeryon’s drones seem limitless. “We see our product used in
new and weird and wonderful ways,” says Dave Kroetsch, the
company’s president.
Strong export practices are one of the reasons why getting
started in exporting can be intimidating, but ultimately
rewarding. Eight years after launching, Aeryon Labs has
exports to thank for the bulk of its success.
The company has expanded from a three-person operation
to more than 70 employees. Year-over-year revenue has grown
100 per cent every year since its launch. Exports drive about
80 per cent of sales.
For those achievements, Aeryon Labs was recently
recognized as the 2014 Ontario Exporter of the Year, an honor
co-sponsored by the Canadian Manufacturers & Exporters,
Canada’s largest trade and industry association, and Glacier
Media’s Ontario Export Awards.
Aeryon leveraged the power of exports to super-charge its
business, a lesson other Canadian businesses can learn from.
Identify export opportunities
When Aeryon was just starting out, one of the first things
the company did was identify the potential for drone sales
overseas. The company knew the market for commercial
46
WWW.2020MAGAZINE.CA
drones would be stronger in countries with airspaces that
were less regulated than in Canada, which meant a key
portion of their potential market would certainly exist abroad.
In addition, government and military uses for sUAS drones
made them ideal products to market to foreign governments.
“From the very early days, we had a lot of international pull for
our products,” Kroetsch says.
Unlike drones on the market at the time, Aeryon didn’t
develop its sUAS drones for entertainment or hobbyist
markets, opting instead to target heavy-duty commercial
applications. That uniqueness made them a potentially
powerful export.
“If we were trying to compete in the toy drone industry, we
wouldn’t have such a strong market,” Kroetsch says. “We
want to focus on what Canadians do well, which is high-tech,
high-capacity product, which is where we play well.”
Seek domestic resources
Garnering foreign interest in the product was the first step
in setting up export operations. Next, Aeryon had to learn to
navigate Canadian regulations governing selling domestic
products overseas, no easy task to learn on one’s own.
“The group of us [company founders] had seen it done,
but it’s like watching brain surgery on TV,” Kroetsch says
of exporting. “It’s not like watching it means you can do it
yourself.”
For hands-on training in the process, Aeryon worked and
continues to work with the Canadian Trade Commissioner
Service and Department of Foreign Affairs.
“When the phone rings from a strange country code, one of
the first things we do is reach out to these guys, who have a
fantastic network,” Kroetsch says.
The help has been invaluable. In its first year exporting,
Aeryon Labs sold drones to four or five international
clients. Today, the company works with customers
in about 30 countries. International customers not
only account for foreign sales, but also refer potential
customers to Aeryon.
Acclimate to each culture
On top of learning about exporting in general, the Aeryon
team also faced a learning curve in each country they
wanted to sell into. The culture and business practices
of each country can expedite, slow or otherwise impact
the nuances of a sale. In one nation, for example,
Aeryon learned that it’s expected to negotiate an asking
price down 5 per cent. Understanding that custom in
advance helped the company know where to begin their
negotiations so they wouldn’t lose revenue.
Research and the advice and expertise of government
agency contacts at the Canadian Trade Commissioner
Service and Department of Foreign Affairs helped the
company acclimate to each new culture as their global
customer base grew.
Be persistent
For Aeryon, getting export operations up and running
wasn’t quick or easy. Not only was navigating the
export process a challenge, but making progress
with customers in each new country took time.
Negotiating a deal with one new client took 36 months.
But each test of patience was worth the time and effort,
Kroetsch says.
“Start by dipping your toe, and ultimately, it’s about
being persistent,” he suggests. “If you don’t find the
right partner the first time, or the right geography, take
something from that and go at it again.”
Aeryon Labs’s success makes it clear that with the right
product, resources and persistence, exporting can be a
great opportunity for a business to expand.
47
IRG
INDUSTRY RESOURCE GUIDE
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Canadian Manufacturing Coalition
The Canadian Manufacturing Coalition (CMC)
is comprised of roughly 50 major industry
associations, united by a common vision
for a world-class manufacturing sector in
Canada. The coalition speaks with one voice
on priority issues affecting manufacturers, and what must be done to
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48
WWW.2020MAGAZINE.CA
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Interview with top 3D printing CEO:
How 3D printing will change manufacturing
We interviewed the CEO at one of the world’s most dominant 3D printing companies:
Avi Reichental of 3D Systems
BY JAKOB SAND, PARTNER, BDO GLOBAL TMT M&A LEADER
Innovation and startup activity is growing with amazing speed, and major tech
companies — such as HP and Autodesk — are entering the market. Read on to
learn about 3D Systems’ business strategies, and why Avi Reichental thinks 3D
printing will change the way we manufacture physical things
BDO: 3D Systems has been an incredibly active
buyer in the 3D printing industry in recent
years. What have been the main strategies
behind the many transactions?
We have directed much of our time and resources
over the last few years in positioning ourselves favorably
within the areas in which we see the most value in 3D
printing over the long term, what we refer to as our 4
M’s: Materials, Metals, Medical and Manufacturing.
BDO: Major IT companies — such as HP — are
poised to move into the 3D printing market.
What will this mean to the 3D giants of
today, such as 3D Systems and Stratasys?
As the founders and pioneers of 3D printing
technology, it is tremendously validating to have a
company like Hewlett Packard enter this space. We view
their announcement as a net positive for our industry.
However, having spent more than 30 years growing our
company and advancing this technology, we’ve learned
that there is no one-size-fits-all approach. With a full
range of print engines, print materials, cloud printing
services and an integrated content-to-print workflow, we
believe we are well positioned for growth, and intend to
remain innovators and leaders in the industry.
50
WWW.2020MAGAZINE.CA
BDO: Startups all over the world are
creating new, affordable 3D printing
technologies at a high pace. Will 3D
Systems keep buying innovation in the
way you have done so far?
There has certainly been an influx of talent and
creativity into the 3D printing space in the past
few years. With every new industry, I expect to
see consolidation as we move forward. We’ve
benefitted from this rising interest in 3D printing,
both in the technologies and in the talent we’ve
been able to acquire, combining that talent with a
lot of R&D to develop many of our own technologies
in house. Our strategy has always been about
positioning ourselves favorably in the areas where
we see the most long-term potential: on the factory
floor, in medical labs and offices, on the engineer’s
desktop and in homes and schools. We’ve not only
developed cutting edge 3D printers and materials,
but the supporting technologies necessary to provide
a seamless, integrated workflow from the virtual
to the actual and back again. We are now entering
a phase where we intend to fine-tune and scale our
acquisitions and leverage our unrivalled portfolio of
products and services.
INDUSTRYCONNECTED
People who know Manufacturing, know BDO.
Assurance | Accounting | Tax | Advisory | www.bdo.ca/manufacturing
BDO: What are the most promising new
trends in 3D printing right now?
There are so many amazing things going on in 3D
printing today, it is hard to single out only one.
Applications for healthcare are certainly high on
that list. Already, we are able to use CT/CBCT scan
data from individual patients to create patient specific
dental and anatomical models, custom surgical
guides, implantable devices, exoskeletons, hearing
aids, prosthetics, and braces for scoliosis and other
applications. And that’s just to name a few. Using the
same patient specific data can also provide surgeons
with accurate planning models and virtual training and
operating platforms for use in preparing some of the
most complex surgeries performed today.
I would also point to how 3D printing offers
‘free complexity’, providing incredible opportunities
for manufacturers. A 3D printer doesn’t care if it
produces the most rudimentary shape or the most
complex. Removing this barrier enables manufacturers
to design for performance, which translates
directly into improved functionality, reduced weight
and greater strength for parts. The implications
in industries like aerospace and automotive are
staggering. With no tooling or setup needed to create
a part, we’re now seeing the dawn of the age of
mass-customization — every part tailored to user
specifications. This has obvious applications for
businesses in fashion, footwear and accessories but
also in healthcare. Invisalign, for example, 3D prints
millions of clear aligners each year, made to measure for
each individual patient. And when you apply the idea of
mass customization to the food printer we announced
earlier this year, you start to see the possibilities of
personalized nutrition just around the corner
BDO: When will access to and/or ownership
of 3D printers become mainstream?
3D printers are already mainstream in industrial uses.
Almost every company who manufactures products
uses 3D printing at some phase of their development
cycle. Falling prices and rising usability are making
this technology accessible to everyone from garage
entrepreneurs to blue chip industrial giants. Our goal is
to expand and enhance access by providing a digital
thread that integrates every step of the workflow, from
design to modelling to manufacturing to inspection to
data collection. This end-to-end connectivity enables
push-button manufacturing systems with uptime
reliability and repeatability that really represent a
paradigm shift in manufacturing as we know it.
3D printers are already mainstream in industrial uses.
Almost every company who manufactures products
uses 3D printing at some phase of their development
cycle. Falling prices and rising usability are making
this technology accessible to everyone
We’re also reimagining what the engineer’s desktop
of the future looks like, providing tools that combine
utility, functionality, simplicity and cost effectiveness.
That includes desktop 3D printers, desktop scanning
and inspection devices and new devices like our Touch
haptic device, which provides a physical experience for
designers, as if they are working with digital clay.
Finally, we’re seeing a mainstreaming of 3D printing in
the home and in schools by simplifying and gamifying
content creation, creating a social experience around 3D
content, and—most important—providing a plug-andplay 3D printer at a consumer price point lets everyone
bring their ideas to life.
To learn more about BDO’s perspective on 3D printing, visit BDO’s Tech and Media Watch blog:
http://bit.ly/15clXT6 or contact Scott Rodie, BDO Canada Technology & Life Sciences Leader, at [email protected].
51
Why
are Canada’s manufacturers far more
cybersecurity exposed than they think?
BY DOUG BLAKEY
The Cyber Business Problem
On January 29, 2014, James Clapper, the director of national
intelligence for the United States, reported in his annual
Worldwide Threat Assessment of the United States Intelligence
Community that cyber is now considered the number one
risk facing the US and its allies, ahead of risks like terrorism
and weapons of mass destruction. That’s a sobering thought.
How could cyber, something the global economy now highly
depends on, rise so quickly to the top of the list?
More to the point, PwC in its recently published annual cyber risk
report Managing Cyber Risks in an Interconnected World stated:
“As incidents continue to proliferate across the globe, it’s becoming clear
that cyber risks will never be completely eliminated.Today’s interconnected business ecosystem requires a shift from security that focuses
on prevention and controls to a risk-based approach that prioritizes an
organization’s most valuable assets and its most relevant threats.”
In other words, the question has changed from if to when
a cyber breach occurs. The entire business problem has now
shifted to managing the risk rather than just applying technical
solutions. The risk must be monitored by the board of directors
and managed by C-level executives, not delegated to the information technology department. And business leaders must
start asking and addressing the right cyber risk questions.
Should Canadian CEO’s be concerned?
If you are the CEO of a large Canadian manufacturer, chances
are you do not have the true picture of how well all of your
business partners/suppliers are handling cyber risk. Do you
require them to regularly report progress? Do they have ongoing third-party oversight or do they simply self-report? Do they
address the human element of cyber risk? Even the smallest
suppliers require oversight since everyone connected to the
Internet is now a cyber target.
The CEO of Target, who lost his job after the well publicized
breach that hit his company a year ago certainly wishes he had
ensured that Target business partners were doing their cyber
risk management more effectively. Target was not breached
directly. Target was breached through a business partner of
fewer than 150 employees that simply dropped the ball.
Taking the supplier discussion a step further, how many
small business CEO’s know when their company last verified
their cyber security posture? Do they even have a formal
program? Does it address the human factor? Is it done on an
ongoing basis? And can they report an overall status of their
cyber risk management efforts to their larger business partners
and clients if so requested? CEO’s of small businesses need
to be thinking about these issues. Waiting until they are under
duress defending against a cyber induced front page media
report is not the way to operate any business.
Are large and small Canadian businesses asking and
addressing the right questions?
Probably not. In 2014 IBM Security Services published its
annual Cyber Security Intelligence Index, which was based on
a client sample of roughly 1,000 world-wide cyber-attacks IBM
investigated in 2013. It states:
“What is fascinating — and disheartening — is that over 95 per cent of
all incidents investigated recognize “human error” as a contributing factor. The most commonly recorded form of human errors include system
misconfiguration, poor patch management, use of default user names
and passwords or easy-to-guess passwords, lost laptops or mobile
devices, and disclosure of regulated information via use of an incorrect
email address. The most prevalent contributing human error? Double
clicking on an infected attachment or unsafe URL.”
There is a strong misperception, especially from leaders of
smaller companies, that the cyber problems they face require
complex and expensive technical solutions. Technology alone
will never be the silver bullet that many hope for. This approach
ignores the human factor present in the large majority of
breaches. The better approach is to think people-processtechnology. This means managing cyber risk systematically
through education, policy and ongoing reviews of the processes people follow combined with the technology in use.
Conclusion and Next Steps
The global cyber security problem is far more acute than
many businesses realize, and Canadian businesses are no
exception. Large businesses are at risk through supplier
exposures, and small businesses are at risk of losing their
largest accounts. Many businesses are not addressing the
human factor in the risk equation, nor are they ensuring
proper oversight of their IT function. The entire business
problem has now shifted to managing the risk rather than
just applying technical solutions. When companies view the
problem in more holistic cyber risk management terms (i.e.
people-process-technology), businesses both large and small
will be better equipped to manage cyber risk more effectively
and possibly at lower cost. The result could very well mean
avoiding disaster when sooner or later that dreaded cyber
breach hits home.
Doug Blakey — President, Watsec Cyber Risk Management, [email protected],
and Director, Canadian Centre for Cyber Risk Management, [email protected].
52
WWW.2020MAGAZINE.CA
“Turns out we’d been under-forecasting.”
People who know Manufacturing and Distribution, know BDO.
The Manufacturing and Distribution Practice at BDO
BDO’s Manufacturing and Distribution practice combines accounting, tax, and business advisory
with industry prowess. Whether you’re looking to leverage international operations, grow through
acquisition, or optimize inventory management systems, BDO stands ready with proactive
information and guidance wherever in the world you do business.
Assurance | Accounting | Tax | Advisory
www.bdo.ca/manufacturing

Time to put on your thinking cap

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