An Interview with Nigel Neale - Consul and Senior Trade Commissioner at the Consulate General of Canada in New York

Recently, MAPLE New York Executive Director, John Costanzo, interviewed Nigel Neale, Consul, Senior Trade Commissioner and Director Trade and Investment at the Consulate General of Canada in New York on the work of the Trade Commissioner team and some of the programs they orchestrate to connect Canadian markets and the Greater New York region.

Mr. Neale is Consul and Senior Trade Commissioner at the Consulate General of Canada in New York since 2018, managing Canada’s trade and investment agenda in NY, NJ, PA, CT, DE and Bermuda. He previously served at Canada’s missions to Brasilia, Rio de Janeiro and Bogota. At headquarters, he worked in the NAFTA & Trade Agreements Secretariat leading on the development of trade and gender negotiations in addition to implementing Canada’s in-force FTAs, designed and delivered training programs for the Trade Commissioner Service, and served in the Offices of the Minister and Deputy Minister of International Trade. From 2017-18 he spent a year on interchange with the Office of International Relations & Protocol of the Government of Ontario. He studied at the Universities of Sydney (Master of International Studies), Ottawa (BComm).

Q1. As Head of the Canadian Trade Commissioner Service (TCS) in New York, Pennsylvania, New Jersey, Connecticut and Delaware, can you provide an overview of the work that your TCS team provides?

Thank you for the invitation, John. As Consul and Senior Trade Commissioner, my mandate is to create economic prosperity for Canada by helping Canadian clients scale up, grow and access new international markets. We are a team of 16 operating out of NYC, Buffalo, Pittsburgh and Philadelphia. 

Our work is focused along three vectors: helping innovative Canadian clients across the spectrum of sectors scale and grow via access to capital and sales channels, attracting and expanding investment to and in Canada, and supporting Canada’s creative industries – a sector that has been particularly hard-hit.

We do this by providing Canadian businesses with dedicated support to navigate the local market, unlock valuable business, innovation and investment opportunities by connecting local players to our Canadian clients, and resolving business problems. I want to reinforce the critical role that our partnerships with organizations such as MAPLE Business Council play in delivering value on both sides of the border.

We are part of Canada’s Trade Commissioner Service – 125 years old this year, a global network of over 1,000 trade professionals in 161 cities around the world located in Canadian Embassies or Consulates, with 16 offices across the USA alone - working seamlessly to grow bilateral business.

Q2. The tech industry is booming in NY and Canada. Some would say that the tech talent in the corridor between Waterloo and Quebec rivals that of the Silicon Valley. Why is this, and what are the benefits you can share with our NY-based membership about the tech sector in Canada?

Canada is a global tech leader. Last year, more tech jobs were created in the Toronto region than in Silicon Valley and NYC combined. Many NY tech companies have found great success in establishing operations in Canada. Some examples over the past year that illustrate our value proposition to tech companies:

• NYC’s Collective[i] created 30 AI-driven jobs in Montreal to expand its predictive technology footprint for the sales sector. 

• Mastercard announced a $500 million cybersecurity and tech innovation center in Vancouver, creating over 250 jobs. 

• Corning, with its focus on tech and advanced optics, opened an R&D center in Montreal that will serve as Corning's global center of software innovation to support emerging technologies such as AI, augmented reality, cloud computing, and data analytics.

 There are a number of factors that make Canada so compelling for tech companies:

 Canada has an exceptional tech talent pool. Canada has the OECD’s most highly educated workforce, with more than 2.8 million STEM graduates. Tech companies operating in Canada can also access top talent from around the world through the Global Skills Strategy, and bring in highly international skilled workers in as little as two weeks. This program has been a huge advantage for American companies impacted by restrictions to the H-1B visa. 

• Canada has a supportive tech innovation ecosystem. For example, the Scientific Research and Experimental Development Program offers tech companies tax credits that may allow them to recoup more than 40% of their eligible R&D expenditure.

• Canada makes sense for tech companies’ bottom lines. With universal health care, forex savings and lower labor costs, tech companies can grow their business for less – companies we have worked with have halved their operating costs by expanding into Canada. Canadian cities like Ottawa, Toronto, Montreal, Vancouver, and Calgary have the lowest tech costs among 50 North American cities.

• Unmatched quality of life. Canadians enjoy one of the highest standards of living in the G20. With its public funded healthcare, better work-life balance, high levels of safety, social connections, higher education opportunities and multiculturalism – diversity is our strength - Canada is a great place to live, work and prosper. This environment helps to attract and retain tech workers.

Q3. Does your team work with NY and local companies looking to make investments in Canada… for instance, in growth sectors like tech, AI and life sciences?

Absolutely.  Bringing job-creating foreign direct investment to Canada is a fundamental pillar of our work.  This spans F500s to AI-powered tech startups and everyone in between. If you are considering establishing operations in Canada, my team can help you every step of the way. Our Trade Commissioners work directly with local companies across a diverse range of sectors in tech and life sciences. We are your one-stop shop for your company for all things Canada and can provide you with a range of complimentary services including:

• Helping you develop a business case for investing in Canada

•  Referring you to tax, legal, employment, and immigration experts

• Working with you to access government incentives and tax credits

•  Introducing you to our Canadian provincial and municipal partners and the Canadian business community

• Assist in finding a site for your company’s Canadian operations

• Helping you build your Canadian workforce

 Please reach out through our LinkedIn page or email via CNGNYTD@international.gc.ca to see how we can help you.

Q4. You’ve shared with me that you run the Canadian Technology Accelerator program out of the Consulate. Can you tell me more about this, and what are your plans for the future?

The Canadian Technology Accelerator program, or CTA, really is the Government of Canada’s most visible and high-touch service for companies in emerging tech verticals. It provides innovative, high-growth and high-potential early-stage Canadian companies access to industry-leading mentoring along with curated direct introductions to strategic partners, investors and customers. It’s this scaling and capital raising that grows our client base to tackle other international markets. Since the program started in 2009, we have collectively helped over 600 companies, raised over half a billion dollars in capital and created over 2200 jobs. 

We just concluded three of these flagship programs that ran over the fall.

Our CTA cleantech program is in its ninth year and featured 13 new companies at the cutting edge of carbon-tech/CCUS (carbon capture, utilization and storage), energy efficiency, emissions reduction, solar and prop-tech.

In direct response to both the challenges and opportunities of digitalization brought about by COVID-19, this year we ran CTA programs dedicated to digital health (11 companies ranging from intelligent rehabilitation to digital surgical simulation technology to brain health), and to cybersecurity, privacy and compliance (7 companies in crypto, fraud detection, fintech security and data security). Our objective is to match next-generation solutions for global problems with the capital needed for growth. Check out our landing page here.

But it doesn’t stop there. We run a number of other market-immersion “bootcamps”. Our retail-tech cohort featured companies that develop 3D/AR e-commerce solutions, immersive digital content for empty storefronts and tools to help grocers reduce waste by selling surplus food.

Our cellular and gene therapy bootcamp, run out of Philadelphia given its status as “Cellicon Valley” and home to offices for 80% of the world’s leading pharmaceutical and biotech companies – it really is ground zero in the U.S. for development/commercialization of these therapies.

We have plans to run similar vehicles for seed-stage capital raising and women in cleantech in 2021. On top of that we continue to build relationships with the spectrum of investor entities that are the cornerstone of NYC, promote fintech and infrastructure capabilities, screen Canadian documentary films at DOCNYC, curate B2Bs for Canada’s music publishers in NYC and LA, help more SMEs enter the e-commerce marketplace…our work is varied.

 Q5. The Toronto Stock Exchange (TMX Group) is a member of MAPLE Business Council, and recently presented an excellent overview of their mission and market approach here in the US. I understand that you just held a joint event in Pittsburgh and Philadelphia with the TMX Group… what was the focus of this event, and what can you share with us about the type of businesses that participated?

The Toronto Stock Exchange is the third largest national exchange after China/Hong Kong and the US, and represents a valuable set of services for small firms to raise capital, specifically from the associated TSX Venture Exchange which has a lower threshold for listing.  In 2019 alone, companies on the TSX and TSXV raised $39 billion, for a total of $263 billion since 2015.

In addition, 40% of trading originates outside of Canada and 25% of member firms are headquartered outside of Canada. This means that out of a total of 221 non-Canadian firms,107 have their HQ in the US.  The TSX certainly offers an alternative funding vehicle worthy of consideration.

For our event in Pittsburgh, we partnered with the Pittsburgh Tech Council to recruit the best tech companies in order to present the TMX as a viable financing option for local companies looking to raise capital and grow internationally.  We set up a program featuring TMX’s George Khalife, including a presentation and B2Bs.

In Philadelphia, we partnered with Life Sciences PA to leverage the Life Sciences Future – Biopharm conference to pull together a targeted group of young companies developing new and emerging therapies that might not be aware of the opportunity to raise capital through a venture exchange.

This is an effective model and one that I’m already in conversation with you on to explore a session for the MAPLE NY tech community.

 Q6. What has your experience been over the course of 2020 – as we all know, it has been a year like no other – and what are your projections for 2021?

It’s been a tough year for our clients but nine months into the pandemic as we close out 2020 I can honestly say that we have quickly and nimbly adapted our services to help our Canadian businesses with even more intent to navigate and succeed in the virtual environment.

What we are obviously paying close attention to are the disruptive and lasting tech trends for the future coming out of the pandemic.  From e-commerce and digital payments, to telehealth, to remote work and virtual networking, to logistics and supply-chain, these speak to the notion of “building back better”.  NYC and region, known as Silicon Alley and coupled with such deep access to capital, is where we make valuable introductions to Canadian companies looking to grow.

The pandemic response has mobilized our business communities and our government’s top priority is to support Canadians while building back a more resilient economy: strengthening our supply chain for vaccines, pharmaceuticals, PPE and cold-chain logistics; securing additional foreign direct investment from leading Fortune 500s and manufacturers to build hemispheric supply chains; and building critical partnerships for vaccine production (we have signed significant agreements with Pfizer and J&J, both in our territory).

For Canada, the US is “the market of markets” and will always be our most important partner across the board. I always like to point out that Canada exports more to our 5-state territory than to the entire EU. With USMCA in force since July 1, we have promoted the business certainty, stability and predictability that flowed from the renegotiated NAFTA to key binational audiences in Buffalo, Plattsburgh, Rochester, Philadelphia, and Pittsburgh.  This is a “gold standard” free trade agreement that brings important benefits for our exporters on all three sides of the border between Canada, the US and Mexico.  Heading into 2021, understanding the agreement as a means to increase trade will be all the more important.

I want to speak to the importance of diverse and inclusive trade as a fundamental element of the work of the Trade Commissioner Service. One of the many unfortunate realities of the pandemic is that it has created even greater inequality and we are committed to doing as much as possible to support our under-represented businesses – those owned and run by Black, Indigenous and People of Colour, women, LGBTQ2+, the disabled and youth. Looking forward to 2021, we are going to be even more intentional and deliberate in our recruitment efforts to bring these companies to market, and we’ll be looking to engage meaningfully with VCs that are focused on investing in these companies.

If there’s one thing I’ve witnessed is that over the course of the pandemic, the shift to virtual engagement has resulted in increased client demand and the ability for us to do more. Cost as a barrier to entry has been virtually eliminated and we are maximizing our reach and efficiency with this model.

I do want to mention that another key to the success of these programs is the deep collaboration we have with our colleagues in other missions.  The Cleantech program is a cross-country undertaking with programming in San Francisco, Denver and Boston.  Our Digital Health CTA is run jointly with San Francisco.  We’re always looking at how to create more value and opportunity for our Canadian clients and that invariably means bringing them – virtually – to other tech hubs in the US.

Thank you Nigel for taking the time to provide our readers with a window on the work of the Canadian Trade Commissioner team at the Consulate General of Canada in New York. We look forward to future collaborations together as we work to bring economic growth and innovation to Canada and the New York Region.

John Costanzo
Executive Director
MAPLE New York Chapter

An Interview with U.S. Consul General in Vancouver Ambassador D. Brent Hardt

On behalf of Maple Business Council and the rest of the local business community welcome to Vancouver!  My first question would be what are your initial impressions of Vancouver and BC?

 Vancouver is a beautiful place to live.  My wife, Saskia, and I are thrilled to be here.  We feel fortunate to be here in these challenging times.  The people of British Columbia have done an outstanding job rising to the COVID challenge.

 It is still very early in my tour, but it’s already very clear to me that this is a dynamic region where the private sector, government, and academia are collaborating on cutting-edge solutions to some of society’s biggest challenges.  There is an innovative and creative spirit here that sets it apart from other regions  – a spirit that parallels the dynamism of California, Oregon, and Washington State.  I am also fortunate to have Yukon in my area of responsibility, and I’m looking forward to traveling north and learning more about this unique region and its people as soon as conditions permit.

 Here in British Columbia, I’m quickly learning about the interconnectedness of the region and how seamlessly communities and businesses share similar priorities and the same values, from Vancouver all the way down to southern California.  Businesses and government are pushing the boundaries in seeking innovative solutions to some of our greatest challenges in various sectors, from health sciences and cleantech, to cross-border transportation, infrastructure, and the environment.

 I have had very productive meetings so far with a wide range of people in government and in the private sector, and I am looking forward to meeting many more people from all walks of life in the coming weeks and months.

 For those who may not be familiar, what is the primary role of the U.S. Consulate General in Vancouver?  How do you work in coordination with the U.S. Embassy in Ottawa as well as the U.S. Department of Commerce?

 Consulate General Vancouver is one of seven consulates in the U.S. Mission to Canada.  All of our consulates work to build closer ties between the United States and Canada; strengthen trade and commercial ties; facilitate cross-border travel and exchanges; and ensure the safety and security of our citizens from global and domestic threats, among many other things.

 A core priority here is to strengthen trade and commercial ties.  Fortunately, we are building on a very formidable foundation.  But I believe there are many new opportunities for U.S. companies to do business in British Columbia and Yukon, and for Canadian companies to expand their trade and investment into the United States as well.  To strengthen those ties, we count on a range of cross-border partnerships in the private sector such as the Maple Business Council, and we welcome your feedback on both challenges and opportunities facing your businesses.

 At the Consulate in Vancouver, we work closely with our colleagues from the Department of Commerce, who can provide a specialized set of services to American businesses looking to export into Canada -- and to Canadian companies looking to invest in the United States.  SelectUSA, for example, is a flagship program that offers some of these services and is oriented toward businesses that seek to expand into the U.S. market, but perhaps may not know where to begin.  Some in BC may have attended or heard about our annual SelectUSA Investment summit in Washington, D.C., to which interested businesses from Canada and the rest of the world travel to meet with senior U.S. officials, economic-development corporations from all 50 U.S. states, and a range of others to explore investment opportunities.  It’s a one-stop shop for businesses eyeing expansion in the United States, and many BC businesses that have attended in recent years have not only found it useful in making new connections, but have also gone on to invest in the United States after connecting with new partners.  I’d be happy to connect you with our Commerce colleagues if anyone is interested.

 What Consulate General activities and initiatives are you most looking forward to renewing as our region comes out of the lockdown?

 Once conditions and BC health guidance permit, I am looking forward to resuming face-to-face meetings – the bread and butter of diplomacy.  I’m also looking forward to exploring all that British Columbia and Yukon have to offer in what is an extraordinarily beautiful part of the world.  In the meantime, thanks to the remarkable advances in technology that have allowed us to work remotely and stay in touch from a distance, we will continue to use our good offices to host virtual events and receptions to bring businesses on both sides of the border together.  If you have ideas on events that would be of use, please let us know.  

 With the recent coming-into-force of the USMCA trade agreement, there are many benefits for businesses in both Canada and the United States to compete more effectively in cross-border trade.  What business opportunities do you see having the most potential as a result of the revised NAFTA agreement?

 As you all know, USMCA went into effect on July 1, initiating a new chapter in North American trade that will serve as a model for the United States and others around the world.  USMCA sets new and higher standards for labor, the environment, digital trade, and more.  It will also create high-paying jobs for Americans, Canadians, and Mexicans, and raise economic prosperity for years to come.  And most important of all – and I want to underscore this point – USMCA will ensure that North America will remain the world’s economic powerhouse.

 Competition defines trade terms, and sometimes this competition is fierce.  We all need to remain vigilant in our drive to remain competitive as a region on the global stage.  USMCA does just that for the United States, Canada, and Mexico.

 How would you characterize the Consulate General’s relationship with the BC business community?  How do you see this relationship evolving and strengthening going forward?

 This is a vital link and, as I said, expanding cross-border trade and investment linkages is a top priority for us.  We see our relationship with the BC business community as a partnership.  Part of our job is to listen to you – both about your challenges as well as about shared opportunities.  If there are challenges we can help overcome – we’re here to help.  If there are opportunities that we can help you capitalize on – we’re also here to help, particularly for BC firms looking to expand into the United States.

 We are always willing and ready to convene business, government leaders, and others to promote cross-border trade and investment, particularly in the realms of tech, cleantech, mining, and telemedicine. 

 Going forward, I hope that we continue to work closely together to keep North America the powerful trading hub that it is.  Only by working together can we continue to ensure economic prosperity and security for the people of the United States and Canada.

 What should BC area executives know about doing business in the United States, and perhaps with our focus region California, that they might not already be aware of?

 Most of you already know that California is the fifth-largest economy in the world by GDP and home to over 500 Canadian-owned companies.  But what we want you to know is that we want you doing business in the United States and that we’re here to help.  Although the United States and Canada share many similarities, there are also sometimes unanticipated differences.  I’ve heard that some Canadian businesses are sometime caught off guard with these unexpected challenges – whether related to taxation or industry regulations -- when exploring opportunities in the United States.  This brings me back to our friends at the Department of Commerce.  They can help navigate such challenges and provide insight into industry and markets in all parts of the United States.

 The bottom line here is:  the opportunities to expand your operations in the United States, whether in California or any of our other states, are significant, and we encourage you to take your innovative ideas and solutions south of the border.

At the end of your tenure in Vancouver what would “good” look like in your mind?

  Well, we hope to do better than “good”!  But I hope that we will be able to contribute to strengthening cross-border trade and commercial ties and deepening the full range of personal and professional links between our countries and our people.  I hope that we will see even more Canadian companies from BC and Yukon invest in the United States.  I also hope that our trade and investment on both sides of the border will help spark economic recoveries in BC, Yukon and in the United States.

 Most importantly, I hope to be able to contribute to deepening the unique, long-lasting, and enduring friendship between our two countries.  

 In my 33 years in the United States Foreign Service, I have gained a profound appreciation for the importance and mutual value of alliances.  Canada has long been and remains one of our most important allies and friends.  If our team at the Consulate General contributes to reinforcing and invigorating this alliance and strengthening our partnership and friendship along the way, I would call that a job well done.  Thank you!

For more information on the Consulate General of the United States in Vancouver, British Columbia, please visit their website: https://ca.usembassy.gov/embassy-consulates/vancouver/

Breaking Down the World of SPACs (Special Purpose Acquisition Corporations)

By: George Khalife, Vice President Capital Formation - Midwest, TMX Group

By now, it’s likely that you’ve come across an article or headline with the word “SPAC” in it. From Bill Ackman, the American investor and hedge fund manager, who launched a $4 billion “blank check” company, to the owner of the Golden State Warriors, Chamath Palihapitiya, who just filed three new SPAC vehicles with the SEC in September of this year (TechCrunch). 

SPAC financings have recently experienced a resurgence over the past few years. To give you a glimpse of their popularity, there were 59 SPAC IPOs in 2019 raising a total of US$13.6 billion. Year to date, 2020, there have been 178 SPAC IPOs that raised an average of $365 million per SPAC for a record total of US$65 billion (according to spacresearch.com).

Why are they suddenly popping up again in the U.S.?

Given protection measures like the Sarbanes Oxley Act, it has been more difficult for companies to go public via a more traditional route such as an IPO. In addition, here are some examples of why SPACs could be a good alternative financing option for companies according to Echelon Wealth Partners:

-       The timeline to go public via a SPAC is typically quicker i.e. 3-4 months vs. a 6-9 month timeline via an IPO

-       Reporting requirements are more flexible for management teams and, in the U.S., the SEC review process can be deferred until after the acquisition of a target company

-       The direct and indirect expenses/costs associated with a SPAC tend to be lower than those incurred via the traditional listing process

A Different Story In Canada  

If we take a look up north, the Canadian markets have been more reserved in the space and situationally active. The first SPACs to list in Canada were in 2015 and since then, there were ten that went public which collectively raised ~ C$2.24 billion. Launching successful SPACs isn’t an easy feat; 

-       They often compete against large hedge funds or pension plans with deep pockets

-       SPAC investors don’t always align on the investments proposed

-       There are costs associated with not closing a deal

TSX SPAC 101 

But what exactly are SPACs, how are they formed, and what does the process look like? In this POV, we try to simplify the answers to (hopefully) some of the burning questions you may have around this hot space. 

Below, you’ll find a breakdown of the process / requirements that come with launching a SPAC on TSX. 

What does the acronym stand for?

Get ready for a tongue twister; Special Purpose Acquisition Corporation. 

What exactly is a SPAC?

A SPAC is a company that has no commercial operations which is formed solely for the purpose of raising capital through an initial public offering (or IPO) to acquire an existing company with actual operations. That’s why they’re known as “blank check companies”. 

It also gives the opportunity for individuals unable to buy into hedge funds or private equity funds the ability to participate in the acquisition of private companies traditionally targeted by those firms.

What’s the difference between an IPO and a SPAC?

The difference between an IPO and the SPAC program is that SPACs allow directors or officers to form a corporation that contains no commercial operations or assets other than cash. 

How does someone publicly list a SPAC?

There’s a roadshow that takes place between institutional investors (like hedge funds) and the management team of the SPAC to gauge interest in the offering. The SPAC is then listed on the Exchange via an IPO, raising a minimum of $30 million. 90% of the funds raised are placed in escrow (a hold account), and must then be used toward the acquisition of an operating company.

How large can the target company be in size?

There’s no maximum size of a target company. However, the target company (or qualifying transaction) has to be at least 80% of the value of funds held in escrow.

How long does a SPAC have to complete the process?

SPAC founders have up to three years to identify an appropriate business/asset as its target company. If the timeline isn’t met, the money goes back to shareholders. 

Can you break down the actual process?

Step 1) Creating the SPAC

-       A group of individuals with senior-management level business and public company experience incorporate the shell company (or SPAC)

-       Founders of the SPAC put up a small amount of seed capital and prepare the prospectus document, which is then filed with the securities regulator

Step 2) Selling the shares

-       The prospectus outlines the intention to raise a minimum of $30 million by selling shares of the SPAC 

-       At least 1 million shares are to be held by 300 public shareholders

-       Once the shares are distributed, the SPAC securities are listed for trading

-       Immediately after listing, the SPAC puts at least 90% of the gross processed raised from the IPO into escrow 

Step 3) Completing the acquisition

-       SPAC founders must identify the qualifying acquisition within 36 months

-       The target company has to be at least 80% of the value of funds in escrow

-       The SPAC files a document called information circular which has all of the details about the target company

-       A majority of the public holders of the SPAC have to approve the transaction before it goes through

-       Once the acquisition is approved and the business/asset is acquired, the resulting entity will trade a TSX-listed company

Any examples of recent SPACs in Canada?

1)    Bespoke Capital Acquisition Corp. is a US$360 million special purpose acquisition corp. listed on TSX pursuing a legalized cannabis focused investment strategy. To date, Bespoke has raised ~ $465M (as at July 31, 2020). 

2)    NextPoint Acquisition Corp. is a newly organized special purpose acquisition corporation listed on TSX with a focus on the financial services industry. NextPoint has a market cap of ~ $199M USD and has raised $267M USD to date, as at July 31, 2020.

Hopefully this short article provides you with a good overview of what SPACs are and some of the general details that come with it. If you want to dive deeper into the weeds, feel free to check out THIS link. Although SPACs are certainly an interesting backdrop to explore, it is always recommended to conduct thorough research.

--This article was co-authored by:

George Khalife, Vice President, U.S. Capital Formation (Midwest U.S.)

David Chelich, Sector Head, Business Development, Global Energy & Diversified Industries

 For more information on the TSX and TSX Venture Exchange, please visit https://www.tsx.com or contact TMX's MAPLE member contact, Delilah Panio, VP U.S. Capital Formation at delilah.panio@tmx.com.

Note: All numbers are quoted in U.S. dollars unless otherwise stated. 

This article is provided for information purposes only. This article is not an endorsement or recommendation of any securities or industry referenced herein. The content of this article does not constitute a solicitation or recommendation. US persons may not access the Canadian markets directly, and any questions about or interest in investing in the Canadian markets should be directed to a US broker. Neither listing on TSX nor TSX Venture Exchange guarantees the future performance of a security or an issuer. The information in this article contains historical information, and such historical information may not be indicative of future events. TMX Group Limited and its affiliated companies do not represent, warrant or guarantee the accuracy or the completeness of the information in this article. This article does not, nor should it be construed as, providing any trading, legal, accounting, tax, investment, business, financial or other advice, and you should not rely on it for such purposes. This article is not a substitute for professional advice and professional advisors should be consulted.

Working Future: The Significance of Place

By: Jeff Ball, Director of Corporate Marketing, Teknion

The daily routines of millions of workers changed swiftly and profoundly in 2020 as many workplaces closed or restricted access due to the COVID-19 Pandemic. For many people who could work remotely, home became the workplace. While not everyone’s experience of working from home has been the same, some commonalities emerged. Many people embraced new-found flexibility through technology-enabled connectivity. The notion that time spent in the traditional office environment is somehow superior to time spent working remotely is increasingly difficult to defend. Several studies have concluded that work productivity actually increases as a result of working remotely. Other research shows that, on average, remote employees worked 1.4 more days every month, or 16.8 more days every year, than those who worked in an office. 

Could we go on working this way? If we do, what does this mean for the future of the office? When things return to “normal” how can the office environment continue to provide value for companies who have traditionally invested in providing workplaces for their employees? We’re about to discover that the office will remain relevant, but for different reasons. Companies that understand and embrace these reasons will lead and inspire change. 

What and Where

Where workers have been able to return to the office, there have been changes to the way office spaces are utilized. Safety protocols promote physical distancing and reduced occupancy. According to a recent article in ‘The Economist,’ the average office can work with 25-60% of its staff while maintaining six feet of distance between workers. Workplace modifications may increase this occupancy threshold, but we’re likely to experience reduced workplace occupancy until health and safety guideline changes influence new behavior.  At least for now, the office feels different. In Teknion’s publication “The Way Back, solutions for healthy, safe and productive work,” we recognize the need for companies to instill trust and confidence in employees through visible defenses against disease—like less densification. Design thinking becomes integrated with physical distancing thinking.

The popular model for work that emerges post-pandemic is likely to be a hybrid, where work from home is integrated more broadly and office spaces evolve to do a better job of supporting specific elements of work, such as collaboration, learning, and creativity. These spaces will also have to work harder to be purposeful and effective. When the work ecosystem is extended beyond the office more permanently, the appropriately designed office becomes a more appealing destination sought out by workers for what it can do well. This represents a shift from a more holistic planning model where most workers are present five days a week and companies must prioritize broad needs within their floor plans. The role of the office in a hybrid work model will be different and companies that adopt a new occupancy mix are wise to re-examine their office space needs.

When it comes to using office space as pandemic related restrictions are lifted, Maria Martinico, Principal at SmithGroup says, “Any new workplace design endeavor will require companies to define their ‘why’ as it relates to in‐office work and navigate a whole new normal in how and where work‐related activities are accomplished.” Every organization’s ‘why’ will be different and there will be a discovery process. This will have broad implications.  Let’s look at a few possible scenarios and the ‘whys’ that could influence them.

Choice 

Recent office planning trends consider the need for people to move and work differently throughout the day. Square footage allocated to social spaces and collaborative areas has been increasing. A greater emphasis on health and wellbeing has contributed to architecture and furniture planning that provides choice for where work can be done throughout the day. With a hybrid work model where fewer people work in the office every day, the office becomes part of a larger space that provides broader choices. In this context, redundancy poses questions. Do people need the same kind of workspace at home and at the office? What are the motivations for spending time in these spaces? Companies will likely guide how much time they expect employees to be in the office and there is no perfect one size fits all solution. If the right workplace environment is envisioned and created, individual choice should optimize the balance.

Connections

It can be argued that the main benefit of working in offices is that they bring people together, both formally and informally. We’re social beings that need time with other people: to share ideas, learn, guide, create, express, inspire, laugh, the list goes on. While technology can bridge some of the gaps of not being physically present, Zoom calls can’t replace all the ways people interact in person. So what does this mean for physical spaces in a hybrid model? Are collaborative models that have evolved within holistic floor plans expanded to take up more space? That depends. How have these spaces been utilized in the past? How can they be improved? A hybrid model also introduces new considerations for equalizing connectivity to those working from home. Layouts need to consider not only those present but also those joining remotely.

Collaboration

Collaboration is a social buzz word associated with productivity. Wouldn’t it be great if we could all find better ways to collaborate? We’d get so much more done! Organizational structure establishes how teams are organized, setting expectations for how people interact and collaborate. Physical spaces enable collaboration. Workshop rooms, open areas where less structured gatherings can occur, or settings that encourage random encounters; these are a few ways spaces contribute to enhancing collaboration. A hybrid work model might transform the majority of office space into a collaborative space.  Does this mean random encounters occur only between a flurry of team meetings? Maybe, but space for other tasks that need to occur during a workday should be considered. This brings us to:

Privacy

Migration to the open-plan, for all its benefits, has faced some backlash in recent years due to distractions caused by the lack of acoustic and visual privacy. To some extent, encouraging movement by offering different places to work and interact with others across a floor plan has provided solutions for the privacy dilemma. In a hybrid workplace model that prioritizes such activities as collaboration, creating, and learning, the need for privacy doesn’t go away. Efficient places to retreat and focus or connect with others outside the office look different than meeting rooms. They have smaller footprints, perhaps shrinking from 10’x12’ to 10’x6’ with acoustical privacy. Some workers may even covet the office as a place where fewer distractions occur. A recent Gensler work from home survey indicates Millennial and Gen Z workers are finding it harder to avoid distractions and maintain work-life balance working at home than their older peers.

Creating, Learning and Mentoring

The activities of creating, learning and mentoring also require workplace environments that bring people together, yet recognize varied individual needs. 

Creativity is influenced by our environment and the stimulus (or lack of) it provides. Here, similar to collaboration, interaction with others and the sharing of ideas fosters innovation.  Creativity also needs quiet time; time and space to reflect and think. The home office without distractions can provide that. Similarly, workspaces that offer choice and provide the proper tools foster creativity. 

As workplaces evolved, there have been many assessments of how generational experiences impact optimal workplace planning. A Gensler study concluded Baby Boomers prefer offices that enable consensus and collaboration. Closed offices don’t appeal to Generation X, but they will find private spots when needed. Millennials indicate they can work in many places. There is also a difference in how a new generation of workers entering the workforce may experience forming networks and learning. And ongoing career development will continue to be important to most workers. What does this mean for hybrid office planning? It’s likely a reminder that offices need to continue acknowledging generational differences. The ‘whys’ for physical office space can be more focused in a hybrid model, but companies should recognize that accommodating a mix of work styles to bring people together will optimize connectivity.

Redefining Place

We’ve experienced a shock to office culture through a shared pandemic experience that forced many offices to shut down. As offices open up again, both employers and workers have broad perspectives about the meaning of “workplace.” And not lost is the recognition that redefining this space is important and that it will take some work. Guidance from traditional sources; Architect and Design Firms, Furniture Manufacturers, and others will enable discovery. The office is not going away. Companies that actively seek to redefine its renewed purpose will show us what the workplace will look like in the future.

For more information, please visit www.teknion.com. 

USD/CAD: The COVID-19 Currency Rollercoaster

By: Robert Bollé, Regional Manager - U.S. West Coast, AFEX

September 2020

2019 was a relatively calm year for currency markets. For the second half of the year, USD/CAD exchange rates bounced around in a tight range and struggled to break below 1.3000, or higher than 1.3350. All very serene and, dare I say from a currency trader’s perspective, dull. 

And then along came 2020. 

As more news started to filter out of China of a new and deadly strain of coronavirus in January of this year, and governments across the world realized that its spread was rapid and far-reaching, we found ourselves in an unprecedented lockdown. Markets panicked and plummeted, Central Banks slashed interest rates and commodity currencies such as the Canadian dollar were hammered, as oil prices briefly went negative. 

Volatility was back with a bang. Back to levels not seen in over a decade, since the Global Financial Crisis of 2008. Having sat in a trading range of around three percent, the loonie weakened against the greenback by a full ten percent in early March 2020 – spiking all the way up to 1.4660. 

USD/CAD trading chart, July 22 2019 through September 14 2020. 

With the United States reporting record job losses – millions upon millions of Initial Jobless Claims piling up each Thursday – and with the Federal Reserve taking no time in cutting benchmark interest rates from 2% to 0.25% (and thus diminishing the dollar’s investment appeal against most other major currencies), the US dollar would, in normal times, have weakened. But these are no normal times. When the markets are gripped with uncertainty, the US dollar strengthens as traders rush to ‘safe havens’.

By the end of August 2020, USD/CAD had settled back to the levels we saw in a COVID-19-free world. With the initial shock and awe subsiding, the Canadian dollar’s impressive recovery saw the interbank market rate retrace to just a few dozen ‘pips’ over 1.3000 again. 

While market traders traditionally look to economic data (GDP, inflation, unemployment figures, retail sales, consumer and business confidence, etc.) to determine the strength of an economy and, therefore, the strength of a currency, we’ve seen a big shift to general sentiment affecting currency rates. A prime example of this is the current sell-off of the US dollar, back to pre-COVID-19 levels. Federal Reserve Chairman Jerome Powell outlined an “accommodative policy change” that is believed could result in inflation moving slightly higher, and interest rates staying lower for longer. In short, the Fed’s shift in inflation policy should keep US rates near zero for the foreseeable future, keeping the US dollar relatively weaker, since they are in no rush whatsoever to raise interest rates regardless of the speed of recovery for the US economy. 

Members of MAPLE Business Council sit on both sides of the market. Members in the US, who buy their products or services from Canada, would have enjoyed enormous discounts – buying their Canadian dollars at the cheapest level seen since 2003. On the flip side, Canadian companies are typically more exposed to the value of the US dollar. Those of you who costed the USD/CAD exchange rate at, say, 1.3500 at the start of this year, would have found yourselves in a nasty offside position – with the cost of your US products or services increasing dramatically. 

It’s fair to suggest that AFEX is something of a barometer for global business trends. As a global company, we help clients across the world to buy or sell their currencies and, importantly, manage their risk with hedging strategies. The industries we serve are vast and varied. At the beginning of the COVID-19 lockdown, we saw our trading volumes in all regions decline. Unsurprisingly, one of the worst affected industries has been travel and related services – an industry that ought to bounce back strongly just as soon as a vaccine is approved for general release. Quite when that will be is anyone’s guess right now. But the drop in volume may also be attributed to companies the world over sitting on their invoices, holding their cash for more important matters, like making month-end payroll, while they tried to figure out how their business would navigate a complete shutdown of offices. 

Government programs rolled out in April to support small and medium sized businesses certainly boosted business confidence and as we all adapted to the work-from-home shift, it started to feel a lot more ‘business as usual’. So, while the volumes we traded troughed in March and April, there are promising signs that companies are adapting to the new normal. 

What does the future hold? 

In such uncertain times, it’s impossible to accurately predict what’s in store. Reported COVID-19 cases are on the rise again across the world, and so the light at the end of the tunnel is getting ever smaller for almost all major economies. What we can do is look to the Bank of Canada and the Federal Reserve as they meet in September and give their guidance. Market traders will closely scrutinize every word in their statements, and a bearish (negative) tone or sentiment will be pounced upon and likely soften the currency. 

In Canada, officials have made it clear that while the economy has somewhat reopened, the road to recovery will be long, bumpy and uneven. The Bank of Canada has warned of a highly uncertain outlook and that the unprecedented ambiguity makes the future all but impossible to predict. Recent data points to a confirmation that the economy bottomed out in April of this year (assuming we don’t see an uncontrolled second wave of cases) yet a recovery will require a considerable amount of monetary policy support and stimulus. An ‘accommodative policy’ will remain in place until the BOC’s 2 percent inflation target has been sustainably achieved. ‘Sustainably’ is the key word here. Consumer and business confidence has been crushed by the COVID-19 crisis and will only bounce back once sustainable growth is achieved. 

In an official statement, the Bank of Canada asserted that: “The pandemic will have largely run its course by the middle of 2022, because either a vaccine or an effective treatment is widely available by then. Our policy discussions were guided by this scenario, while recognizing the extreme uncertainty around these assumptions”. With this said, we could expect to see a burst of “exceptionally strong short-term growth” once the economy is gradually reopened, followed by a longer, slower period of consolidation and recuperation.

On Thursday September 10th, the Bank of Canada left its main interest rate unchanged at 0.25% - as universally expected - and maintained its quantitative easing program. Governor Tiff Macklem noted that while the Canadian economy has shown promising signs of growth, he expects the pace of recovery and improvement to slow. “Let me underline, it’s really very premature to start talking about exit. That’s some way off and that’s really reflected in our decision to continue our QE program at the current pace”. 

The Federal Reserve in the US is also likely to maintain their policy of stimulus and low interest rates until they’re confident that inflation can be sustained above 2 percent. 

With COVID-19 cases on the rise, it’s unlikely that the US dollar will weaken significantly any time soon. We have already seen the US dollar soften from its March/April peaks and so a period of consolidation could be expected. Remember – nervous markets rush to US assets in uncertain times (such as a fear of a second global wave of COVID-19), driving demand, and so we could see the greenback spike again. 

But there’s something big on the horizon in the US, and as it gets closer, and polls are released, as debates are analyzed in microscopic detail, the market’s focus is going to be firmly on one thing: it’s General Election year! 

We all have our opinions and, as a British expat with no right to vote, I will keep my opinions firmly to myself. What I will say is that markets tend to favor conservative governments. Polls pointing toward a Biden Democratic victory would, historically, weaken the dollar as traders fear for the strength of the economy – particularly now, as the world’s largest economy is in recovery mode. I can’t think of a time in living memory when elections were more difficult to call, or opinion polls as inaccurate as they have been, in recent times. And so until the exit polls are released on the evening of November 3rd, we should expect a bumpy ride for the greenback (followed by a sharp bounce one way or another, as the result becomes clear).  

If you, or your business, is exposed to the USD/CAD exchange rate then know that there are a number of large and long-established currency trading companies who offer free consultation and trading services. The client Relationship Management team at AFEX in the United States and Canada proactively serve our clients and offer risk management, hedging products and currency trading guidance. Please contact me and I’ll be happy to personally help, or to introduce you to an AFEX currency specialist in your region. 

Robert Bollé
Regional Manager – US West Coast
DD: 818-728-3846
Email: rbolle@afex.com

Saving Lives Through Simplicity: How the Internet of Medical Things is Disrupting Healthcare

By: Scott Lyon, Business Development Strategy, POWERSHiFTER 

The healthcare industry has been slow to transition to digital. A change-averse culture, legacy systems, cost, regulation, and institutionalized workflows have impeded modernization over the years. However, with recent pressure from COVID-19, the medical community has made great strides toward digital transformation. The global internet of things healthcare market is expected to reach a value of $332.67 billion by 2027, according to Allied Market Research. With no end in sight for the pandemic and already overburdened and burned-out medical staff, IoMT will provide critical support for the ongoing battle with COVID-19.
 
What is the Internet of Medical Things?
 
The Internet of Medical Things (IoMT) is not a new term—it gained traction in 2018—but has recently exploded with the onset of the pandemic. Health Tech defines IoMT as "a connected infrastructure of medical devices, software applications, and health systems and services." What sets IoMT apart from other IoT ecosystems, according to Deloitte, is the interconnectedness of the medical devices. Wearables—such as stress, heart rate, and sleep trackers—and other remote patient monitoring devices have the ability to generate, collect, analyze, and transmit data directly to healthcare provider networks. 
 
Recent innovations that are saving lives
 
Telehealth
 
Telehealth adoption in the US has grown about 3,000% since the start of the pandemic. While industry stalwarts like Teledoc have consistently maintained their reputation in the industry, recent funding announcements from telehealth startups 98.6 and Tytocare have signalled explosive growth and innovation in response to a sharp increase in customer need.
 
The Mayo Clinic defines telehealth as "the use of digital information and communication technologies, such as computers and mobile devices, to access health care services remotely." This includes everything from smartphone health tracking apps, remote patient monitoring, to online patient portals, medication ordering services, and virtual appointments. The benefits of telehealth are far-reaching, especially for individuals living in rural areas, and those with limited mobility, time, or transportation. 
 
Remote patient monitoring
 
With reduced physical access to doctors, remote patient monitoring (RPM) has made it easy to track symptoms and vital signs. Companies like UK-based Current Health use real-time insights to proactively monitor patient health and dispatch information directly to healthcare providers if intervention is needed. Physicians can view a patient's progress remotely and engage virtually to revise treatment plans. 
 
RPM differs from smartphone tracking applications in that apps often require some form of manual input from the user. Remote patient monitoring devices, such as sensors for body temperature, blood pressure, and blood oxygen levels, are non-invasive and automatically gather and send data. RPM has been especially useful in the fight against the coronavirus, as Seattle-based Optimize.health discovered. They quickly expanded their RPM portfolio to include COVID-19 screening tools to protect the community, namely healthcare workers.
 
The benefits of good design
 
The pandemic, and an increased reliance on IoMT and telehealth, shines a much-needed spotlight on the importance of patient-focused product design. If designed correctly, telehealth and remote patient monitoring devices can better equip physicians to understand and manage their patients' health through a constant stream of data that provides a clear and comprehensive picture, as indicated by Care Innovations. By helping patients understand and manage their own symptoms more clearly, individuals will receive more precise medical attention, reducing unnecessary visitors to doctors, thereby unburdening the medical system.
 
Disrupting healthcare with a digital product studio
 
COVID-19 expedited a much-needed change in the healthcare sector with the Canadian government announcing a $240 million investment in digital health, while health innovation funding for the first half of 2020 in the US reached $9.1 billion. Governments and investors are looking toward the tech community to provide solutions for long-term sustainable healthcare—and for a good reason.
 
Building digital products is a strategic, intentional, and resource-intensive process. It can be hard for governments or corporations to allocate the in-house time and talent and support the agile and iterative culture required to build the calibre of application needed—especially when people's lives are at stake. That's why so many businesses look to digital product design studios to develop their solutions.
 
Agencies that take a service design approach to digital product development are better poised to create solutions that serve everyone involved in healthcare. Patient-centricity marked a shift in digital healthcare, but focusing solely on the patient's experience excludes myriad other people and factors within the ecosystem that play a fundamental role in administering care. From an implementation perspective, change management is better served (especially in a post-COVID world) by applying a lean, iterative methodology that ties a closer relationship between recommendations, strategy roadmaps, and the maintenance of new initiatives.
 
Leveraging UX, service design, and technology allows for a more holistic approach to product development that includes healthcare professionals, administrative staff, friends, family, and business stakeholders. Rather than simply looking at the interaction between technology and the patient, which places a heavy burden on the individual to manage their care alone, they can map out the entire digital healthcare ecosystem. 

By conducting research, finding the right insights, then validating and seeing the product's value in the market, they make decisions based on data and a true understanding of every users' needs at each digital touchpoint.  
 
Simplifying the medical experience in times of COVID-19 and beyond
 
Every user of IoMT products and services is unique. Individuals are likely unwell, in pain, or experiencing a medical emergency. A confusing interface or complex navigation can add to a person's distress, or even prevent them from getting help. In a life or death situation, these outcomes are unacceptable. The simpler the experience for patients and physicians, the better. 
 
Companies like San Francisco-based telehealth services provider Hazel Health pivoted their product to meet the challenges presented by COVID-19, and also to better meet user needs, recently launching their at-home telemedicine program Hazel at Home. When considering their service and product design, Hazel Health CTO and co-founder Nick Woods said that they “recognized the many different backgrounds and access to technology of their patients, so their system allows families to receive care in the way that works best for them, whether a phone call, text message, or a video visit. Their home solution is designed to operate on most modern devices (phone/tablet/Chromebook/computer) and Hazel also provides printed materials to families as needed.”
 
Hans Hoffman, artist and teacher, said, "the ability to simplify means to eliminate the unnecessary, so that the necessary may speak." Getting to the heart of what is necessary requires substantial research. Asking questions like, how can we drive the best insights through user testing? Who are we designing for, and who might we be excluding? What will be statistically relevant for a specific use case? All can help to uncover the right data. Simplified products are invaluable in an industry where people's lives depend on a system (and supporting digital products and services) that work. 
 
Inclusive design is necessary for equal access to healthcare
 
Inclusive design is imperative to ensure telehealth products and services meet all users' needs. According to the 2010 Census, 19% of the US population disclosed having a physical and/or intellectual disability. The same report estimated that by 2050, people of color will make up 53% of the country. Biases within the design, ideation, and creative process must be addressed to guarantee that everyone has access to healthcare. That is where frameworks such as Designing for Diversity™ (D4D) come in. D4D is a methodology that gets overlaid on top of existing business processes and provides guideposts and best practices to design against the dominant culture. Creating products and services that are truly simple for everyone means ensuring all perspectives are taken into consideration, early and often.
 
How POWERSHiFTER helps
 
We're experts at creating solutions for two common needs in digital healthcare. Our design studio works with internal teams to develop a digital extension of a physical product, and we help with stress testing existing digital products.
 
Digital extension
 
We’ve helped hardware companies positively impact their bottom line by successfully adding a software component that drastically improves (and simplifies) the user experience. Regardless of industry, we rely on a design thinking approach to better understand users, challenge assumptions, reframe problems, and, ultimately, build innovative solutions for clients. Recently, Delta Controls, a leader in building automation systems, needed an application to connect their O3 Sensor Hubs. In 11 months, we launched an award-winning robust Google Cloud IoT platform that reduced configuration time threefold.
 
Stress testing
When building a product, teams aren't initially concerned about performance. In practical terms, optimizing for performance while designing and developing is considered a suboptimal process. Because of this, most teams wait to define what the normal operations are and at what point, under load, characteristics start to change. We help internal teams determine their product's boundaries and put in mitigations for stress to ensure the platform can scale with growth. We've saved companies like Energizer millions by helping stress test ideas that, upon further inspection, don't properly address real customer concerns or needs.
 
Choosing the right partner to build the future of IoMT
 
Traditional healthcare is undergoing a significant paradigm shift in North America. An industry that has been historically slow to transition to digital is teeming with opportunity and the capital to sustain the momentum. Yet, to save lives and affect change, products and services need to be simple. At POWERSHiFTER, simplicity is at the heart of what we do. Our passionate, empathetic, curious, and collaborative experts have a strong desire to pursue impactful work that changes people's lives. We're ready to partner with like-minded organizations to get the job done. 

To learn more about how we can help you improve patient experiences, get in touch.
 

An Interview with Khawar Nasim - Acting Consul General of Canada in New York

MAPLE New York Executive Director John T. Costanzo interviews Consul General Nasim.

My first question is how has the COVID-19 pandemic impacted trade between Canada and the New York region and the activity of your team over the past several months?
 
Let me begin by giving you some background on the Consulate General and what we do. Our Consulate General in NYC is now 101 years old.  Since 1919, we have been helping Canadian companies expand and do business in our territory and engaging NY’s excellent business community. 
 
Our primary office is located in midtown, New York City and covers New Jersey, Pennsylvania, Delaware, Connecticut, and New York as well as Bermuda. We also have teams in Buffalo, Pittsburgh, and Philadelphia, and our mission performs a variety of functions for the Government of Canada including immigration and consular services, and advocacy work in the areas of international business development, trade and investment, cultural promotion, and political outreach. We look forward to the next 100 years!
 
Throughout this pandemic, we at the Consulate General of Canada in NY have been actively assessing the situation on the ground across our five-state territory, to ensure the safety and well-being of our employees, their families, and Canadian citizens in need of assistance. Our Consular Team and Border Services colleagues have been extraordinary in responding to the needs of Canadians throughout this crisis.
 
Over the past several months, we have also been working to shore up and strengthen the critical business relationships that exist between Canada and our territory. We have engaged in multiple webinars, like this one today, with business organizations such as the NYS District Export Council, the World Trade Center Buffalo Niagara, and the New Jersey Economic Development Authority, among others, to promote the Canada – U.S. relationship and provide a resource to businesses during these uncertain times. 
 
I personally have been talking to federal, state, and local elected officials, such as Lieutenant Governor Kathy Hochul, many members of Congress across NY State, chambers of commerce, trade organizations, labour leaders and others to learn how their communities have been impacted, to hear how they see the road ahead, and to tell them about the Canadian experience and our priorities.
 
What we have learned from these conversations, particularly with border operators, is that while cross-border trade flows have decreased somewhat, overall the trade between Canada and the U.S., and New York State, has remained relatively stable and secure throughout this pandemic. I think that speaks not only to the high degree of integration between our two economies - we make things together - but also to the strength of our security partnership.
 
Even during this time of isolation, our shared border has remained open to commerce, preserving the vast network of supply chains that has been around for centuries, and ensuring that families and communities in both countries benefit from a predictable supply of food and consumer goods. Essential goods and business activities are still permitted to move across the border during this time. 
 
The flow of medical personnel and other essential workers continues uninterrupted. It has been amazing to hear the stories of Canadian nurses and doctors working on the frontlines in American hospitals along the border—they are a great demonstration of the profound friendship between our countries. And more recently, are the stories of Canadian transmission line workers who came to assist with the restoration of power following Tropical Storm Isaias.
 

What Consulate General activities and initiatives are you most looking forward to renewing as our region comes out of the lockdown?
 
I can easily say that I am most looking forward to reconnecting with my team in person. Seeing everyone day to day, and creating and strengthening those interpersonal relationships with my coworkers, is the highlight of my work in New York City. That said, I am also excited to watch New York City recover and rebound, there is really no place like it in the world and, as cliché as it may sound, I do love New York.
 
The Consulate General engages in so many different activities that it is hard to isolate one or two that I am looking forward to the most. I am a sports guy, so our developing sports diplomacy program is one in which I take great pride, like raising awareness in our territory of the pioneering efforts of folks like Canadian Willie O’Ree, the first Black player in the NHL.  I am also proud of our diversity, equity, and inclusion mandate that represents Canada’s commitment to creating opportunity for all. Among other things, we will continue to highlight Canada`s diversity, including the voices of our indigenous artists, at various cultural institutions around New York. We have long championed the importance of diversity in the corporate arena at our annual Women in Business conference, I look forward to continuing those discussions with corporate leaders.  
 
We also organize and host hundreds of events throughout the year, whether roundtables, receptions, panel discussions, art exhibits, and even music concerts. Like many other organizations, we are slowly getting used to doing events online, and have held virtual discussions on issues ranging from USMCA to energy issues, from technology accelerators to media freedom. Of course we miss being able to host guests and friends of the Consulate General in our wonderful new space in midtown. For now, we will continue in the virtual realm, with some exciting upcoming discussions on the “future of work”, diversity in media, and the promotion of Canadian film at NYCDocs.
 
The path forward lies in strengthening and expanding the integrated trading relationship between Canada and NY State. As New York seeks to build back better, Canada can play an outsized role in ensuring the integrity of our supply chains, especially in areas such as medical supplies and PPE, since we are your closest friend, ally and partner. Canada is also New York’s number one customer, and with a trading relationship that measures over $30 billion in two-way trade every year, we will seek to encourage those investment flows and keep building cross-border relationships to strengthen and expand this successful partnership.
 
I would be remiss if I did not mention the great relationships we have with our provincial partners. Specific to NY, we work closely with Ontario and Quebec on a number of initiatives to promote, advance, and strengthen Canada’s ties to this region. 
 

Even though we’re still in a virtual world, our work hasn’t stopped. If anything, it has given us more impetus to do even more. Examples of upcoming business development events include:

• Delivering three of our flagship Canadian Technology Accelerator programs in the fall – in cleantech, digital health, and cybersecurity;

• Speaking about Canada’s important talent advantage and liberal immigration policies to an investor audience on September 3;

• Recruiting the best Canadian fin-tech companies for the industry-leading Finovate conference September 14-18;

• Promoting Canada’s educational strengths at all levels at our digital education fair, called “EduCanada”, October 5-6;

• Promoting 10 Canadian music publishers directly to US music supervisors through virtual pitch sessions on September 25 and October 2;

• Hosting a “Spotlight on Canada” to showcase Canadian documentary film producers and distributors at DOCNYC, America’s largest annual documentary festival based in NYC starting September 15.

 
Having lived and worked as a leader of the NY Consulate General since 2017 how would you compare this assignment to your previous assignments in Rome, the Netherlands, Minneapolis, and Ottawa?
 
I have been honoured to represent Canada in many different facets throughout my career, and each posting brings with it unique opportunities and connections to be made with Canada. What stands out for me now is just how deep and connected our communities are between Canada and New York State. This is obvious especially along the Canada – NY border, but it’s also apparent downstate, in places like New York City, Westchester County or Long Island given the degree to which our people and economies are integrated.
 
I can’t tell you how many New Yorkers I have met over the last three years who have told me something along the lines of “oh, my wife is from Canada!” or “we summer in Canada” or “my daughter studies in Canada”!  This to me is what our relationship is really all about. Beyond the big trade agreements, the business partnerships, the security cooperation—this is a relationship that is defined by bonds of friendship and kinship that span generations and have united our people through the ages.  We see ourselves in each other. We share fundamental values of democracy, justice and freedom. The fates of our people are linked. And that’s why our partnership is so critical—families and communities on both sides of the border depend on it every day.
 
And the truth is, there is no city in the world quite like New York. It's the epicentre of the cultural world and affords an enormous stage for Canada. With the expansion of the Consulate’s cultural industries program, it has been inspiring to see Canadian artists shine in New York, whether at the Metropolitan Museum of Art, Lincoln Center, or on Broadway.
 

Your experience in Gold Mining industry is quite interesting & unique… how has this prepared you for your work as Deputy Consul General and now Acting Consul General here in the New York market?

My time spent at Yamana Gold provided me with the opportunity to see the overlap between the public and private sectors and to gain a deeper understanding of the cross section between the two. I was able to gain insight into how missions abroad can contribute to creating and fostering favorable prospects for Canadian businesses in multiple industries and through many different means. Primarily, I relied upon Canada’s Trade Commissioner Service to enhance these connections and build more opportunities for Canadian industry.


I noted that you earned your MBA at McGill University in Montreal… I understand that there are thousands of graduates of Canadian Universities living in the New York metropolitan area. How has this shaped the economic and cultural relationship between the New York & Canada?
 
The Canadian alumni community in NYC is extremely active and its members are very effective ambassadors for Canada. We estimate that there are between 400-500 thousand Canadians living in New York City. It is truly wonderful to be surrounded by so many ambassadors who project a strong, positive image of Canada, its people, and its education system.
 
The Consulate General hosts an event in partnership with CANY, the Canadian Association of NY, every fall that attracts alumni from universities across Canada. This event, which is sold out every year, is one of my favorites because it really highlights the extremely strong alumni connection and networks that exist between Canada and New York.
 
Canadian universities and their alumni networks help illuminate our past, but also the many opportunities that await us in the future.  Just look at how Canada is blazing new trails in virtual reality, fintech, engineering and artificial intelligence.
 
This is also due to the success of Canadian universities in attracting top talent, investing in world-class research, and cementing Canada’s position as a world leader in the industries of the future.  And much of this top-talent comes from right here in the United States. A growing number of American students are heading North to pursue their studies, and I strongly believe that this is one of the best ways to strengthen the people-to-people ties that ultimately serve as the foundation of the special friendship between our two countries.
 

With the recent coming-into-force of the USMCA trade agreement, there are many benefits for businesses in both Canada and the US to compete more effectively in cross-border trade… what business opportunities do you see having the most potential as a result of the revised NAFTA agreement?
 
Canada is a committed free-trading country, and recent successes with the CETA and CPTPP illustrate the benefits trade agreements can have for Canadians’ prosperity. The pinnacle of our achievements on trade, however, is the new NAFTA, CUSMA, or USMCA, which reinforces our most important trading relationship.
 
The USMCA is a modernized and progressive trade agreement of which we can all be proud. Over a two and a half year period, we worked tirelessly to get this agreement done. The coming into force of the USMCA was a significant moment in the Canada – U.S. trade relationship, which is truly a model for the rest of the world. The USMCA will help all three of our countries to compete globally and to achieve prosperity through an integrated North American economy.
 
The USMCA is the “gold standard” of agreements, and we are working overtime to help our Canadian firms, both large and small, succeed. USMCA provides the path to further integrate our supply chains, which in turn will only strengthen North America as an economic unit and position its businesses to compete globally. 
 
The USMCA gives us a framework that provides barrier-free access across our shared border, a feature that has become increasingly important in the new COVID reality. The pandemic has exposed our vulnerabilities in goods such as PPE, pharmaceuticals, and medical supplies, and as governments begin to seek a more domesticated and secure supply chain in these areas, the USMCA will provide further certainty and stability for our businesses.
 
The USMCA broadens the opportunity for North America to compete globally through twelve new chapters that modernize the 1990s-era NAFTA to include digital trade and e-commerce, and by leveling the playing field in terms of covering SMEs, customs & trade facilitation, North American competitiveness, labor, and the environment.
 
One outcome from the USMCA in particular that will significantly benefit SME’s is the raising of the de minimis level, which will encourage greater cross-border trade. SME’s often engage in lower value shipments across the border and the raising of this level will make it easier for small businesses to export and grow their business. 
 
Additionally, no tariffs are imposed on digital products, which includes e-books, video, music, software, and games. USMCA documentation has also been streamlined and can be submitted electronically, greatly improving the ease of doing business.
 
When looking at the Canada – NY relationship specifically, our two regions are perfectly aligned when it comes to priority sectors for investment. Both Canada and NY have a mutual focus on innovation, which is the foundation of our commercial relationship. 
 
But it is not only a commitment to innovation that Canada and NY, and the United States, share. We share a common language, similar environmental and labour standards, and many unions such as the steelworkers who boast membership on both sides of the border. Our common values, our shared history and culture, and familial connections, are what make our relationship so rich and inform the unprecedented nature of the USMCA.  
 

Canada is not only the largest source of imports and foreign direct investment for New York, it is also the largest market for NY exports. But could you tell us more about why Canada is an attractive investment opportunity for NY companies looking to expand globally?

Investment is a two-way street. Canadian successes in NY include Lion Electric, a Quebec-based all-electric truck and bus manufacturer with a recently launched Experience Centre in Albany, FlyBits, a leading Toronto-based AI/fintech company the develops contextual customer experiences for the financial sector that opened an office in NYC, and some of our biggest banks like TD (Toronto Dominion, not Touch Down), National Bank of Canada and RBC Capital Markets. 

To give you an idea of Canada’s value proposition for investment, just look to Corning and its Montreal Technology Centre of over 100, NYC’s Collective[i], which last year created 30 AI-driven jobs in Montreal to expand its predictive technology footprint for the sales sector. Another great example is Mastercard’s decision to build a $500 million cybersecurity and tech innovation centre in Vancouver, creating over 250 jobs. There are many more.

Promoting Canada’s significant value proposition for investment to American and multinational companies is another pillar of our work at the Consulate General; I will try to summarize them all for your audience today. To begin, Canada’s global market access is unparalleled. Canada gives investors preferential market access through 14 trade agreements to 51 countries, with nearly 1.5 billion consumers and a combined GDP of US$49.3 trillion.
 
In addition to the USMCA, Canada has preferential access in two of the most important trading blocs that the U.S. does not, the CETA and the CPTPP.
 
Canada’s talent pool is unmatched. Canada is the OECD’s most highly educated workforce, with nearly 58 percent of Canadians aged 25-64 having graduated from post-secondary institutions, and our successful Global Skills Strategy brings in top international talent quickly.
 
Canada’s tax rate on new business investment is the lowest in the G7, and Canada is only second to Japan among G7 countries in terms of political stability. Investment in Canada costs less and is less risky than in other countries. Our marginal effective tax rate is 13.7 percent, the lowest in the G7 and below the OECD average. Additionally, Canada’s banking system is sound, ranking sixth in the world and the strongest amongst the G7 countries, due to extremely low levels of corruption.
 
Canada is a leader in innovation and technology, with an ecosystyem that connects investors with initiatives, incentives, and programs across the board. This is done through several programs including the Scientific Research and Experimental Development Program (SR&ED), the Strategic Innovation Fund, the Innovation Superclusters Initiative, and the Pan-Canadian Artificial Intelligence Strategy.
 
Finally, the quality of life in Canada is unmatched. Canada offers some of the world’s most impressive scenery as well as vibrant cities, making it the perfect space to live, work, and play.
 
 
What should NY area executives know about doing business with Canada that they might not already be aware of?
 
Thank you for this opportunity to extoll the virtues of my country, one of my favorite things to do. First, Canada is incredibly diverse. Toronto, our largest city, is the world’s most multicultural. This enriches all aspects of our society and is an incredible advantage for business.
 
We are a bilingual country. It’s not just the province of Quebec where French is spoken. This will have business implications you need to be aware of in terms of translation and labelling.
 
The World Bank ranked us #3 (out of 190) for ease of starting a business, and the Canadian government’s response to COVID-19 has had a positive effect in terms of supporting businesses and buttressing our economy from the worst.
 
We are a tech-forward nation. Last year, more tech jobs were created in the Toronto region than in Silicon Valley and NYC combined. The global Collision tech conference moved from Las Vegas and New Orleans to Toronto last year for a four-year stint. 
 
We have seen important year-on-year increases in venture capital funding, which fuels innovation, job creation and our pipeline of talent available for investors. On talent, in addition to what I mentioned previously, Canada is home to many internationally renowned academic institutions and our liberal immigration policy allows many international graduates to stay in Canada in the long-term.
 
The pipeline between Canada and NY is strong, and we at the Consulate General are here to encourage and promote these relationships. Canada’s diaspora in the NY region is widespread and has a vast reach, which helps to amplify our work in many ways. I like to say that Canadians add a shine to the Big Apple. We are always discovering amazing Canadians, and uncovering truly commendable work they are doing, as lawyers, teachers, doctors, entrepreneurs, activists, artists and volunteers.
 
I have a team of 17 who work tirelessly to deepen our trade and investment relationship across our territory. In addition to our NYC-based team, we have officers in Buffalo, Philadelphia and Buffalo. 

With a mandate to help Canadian companies grow in our territory, all of us prioritize relationship building across the spectrum, from the CEOs of the most influential Fortune 500s in the area, to the most innovative tech startups and everyone in between, including incubators, accelerators, financial sector leaders, Chambers, trade associations, thought leaders, City and State officials and the like.  

Check out our LinkedIn page: https://www.linkedin.com/company/canada-s-trade-commissioner-service-new-york/ 
 

As one of NY’s closest neighbors and largest customer, what message would you like to share with greater NY community?
 
The relationship between Canada and NY, and the United States, is the closest in the world. Our defence partnership is unmatched globally, Canadians work side by side with Americans on a daily basis to keep our borders and our skies safe. Just look at the joint Canada-US command operating out of the Eastern Air Defence Sector in Rome, NY.

Canada is also a stable and secure supplier of energy to NY and will be a strong partner as both NY State and NYC seek to achieve their ambitious climate goals. The Champlain Hudson Power Express, which would carry Canadian hydropower to New York City, has the support of both Governor Cuomo and Mayor de Blasio, and is a prime example of the bilateral energy relationship between NY and Canada.

Our economic partnership is truly profound, and we make things together. That is why the recent announcement that the U.S. will impose section 232 tariffs on aluminum imports from Canada into the U.S. is so nonsensical to us. These tariffs are nothing but a tax that harm workers, industry and manufacturers on both sides of the border.
 
These tariffs will have a particular impact in New York State; the top export for both Canada and NY State to each other is in aluminum and aluminum products. Canada is forced to respond with dollar for dollar countermeasures, which will stay in effect until the United States eliminates its tariffs against Canada. This is a time when we should be working together toward revitalizing our economies, not erecting further barriers that will only raise costs for consumers and impede cross-border trade.
 
Canada will continue to make the case for removing these tariffs, and I hope you will all make your voices heard on the matter as well.
 
Our shared future will inevitably bring new and more complex challenges. It will only become more important for Canada and the United States to work together in close cooperation to ensure that our North American neighborhood stays safe and secure. And we can do better than having unnecessary tensions cloud our relationship.
 
 
On a personal level, what do you enjoy most about living and working in NY?
 
There are countless reasons to love New York, but for me the number one reason is its incredible diversity, which contributes so much to its buzzing energy and endless parade of unique experiences.
 
Having witnessed New York go from one of the worst hit places in the world to a shining example of how COVID-19 can be curbed and controlled, I am also in awe of New Yorkers incredible determination, solidarity and unity. These are the qualities that New Yorkers are famous for—and which have pulled them through crises time and time again. It will be no different this time.
 
Thank you, Acting Consul General. The MAPLE Business Council’s New York Chapter looks forward to working together with you and your team in advancing the interests of both Canada and the greater metropolitan area of NY, LI, NJ and Connecticut.
 

Risky Business: How companies need to adapt to the new remote work landscape

Jesse David Thé, CEO of TAURIA

When it comes to banks, healthcare institutions, law offices, and software companies, data and trade secrets become some of the biggest assets.  And even for small and medium businesses, these intangible assets have proven to be the most valuable and vulnerable. 

Unfortunately, you can bet that most of our MAPLE Business Council members are unknowingly exposing their treasure trove of confidential and essential information.  We currently live in a “I have nothing to hide” syndrome of careless disregard to information and while this might be a decent motto to live by in your personal life, thinking this way can spell disaster for your business.  Remember that we all must protect our bank account pin numbers, trade secrets, financial information, and confidential discussions with lawyers and psychologists- so why would your online data and trade secrets be any different?

 As COVID-19 forced most businesses towards more digital operations, more businesses have been put in a cyber fragile and unsecure architecture.  The list of issues, which the public in general is not aware, are enormous.  Transferring large files by e-mail does not work.  Many remote workers then place files in “trusted” storage services like Dropbox and send links to colleagues.  Did you know that Dropbox can legally scan and sell all information placed on their storage?  Did you know that even claiming to be encrypted Zoom canceled paid accounts in the USA “because the Chinese government heard users were talking about Tiananmen Square”?  How could they know that if Zoom was really “encrypted”?  

 The fact of the matter is, smart business managers need to start moving away from relying so heavily on email and Zoom and start securing their digital assets.  

 Yes, email continues to be an essential tool for communication, but they are also the #1 way most small and medium companies get breached.  There’s simply no beating around the bush, you must not use emails to share any regulated or confidential data.  With more prying eyes looking to take advantage of unsecured communication lines than ever before, you need to store and share sensitive files on platforms equipped for any and all cyber-attacks. 

 As for Zoom, all it takes is a Google search to reveal its checkered and questionable history.  Zoom has already been caught injecting spy tools that the United Kingdom’s The Guardian explicitly called “malware” while Apple had to issue an operating system update to extract the spy tools Zoom installed into computers without owners' awareness. 

 Consequences of cyber-attacks can be as devastating as physical fire.  Lawyers and Doctors are legally entrusted with “unbreakable secrets”, yet they discuss confidential matters on Zoom and emails.  Large companies lose billions of dollars in market cap while small and medium enterprise can go bankrupt from hacking attacks.  Ask yourself, “Why do we pay insurance for something like a fire, but we aren’t willing to spend a few dollars a month for cyber security?” 

 Zoom might be good enough for video catch-up with friends and family, but you should never be use it as your business’ video conferencing platform.  Corporate communications deserve a better tool that takes security seriously, won’t sell your data to 3rd parties, and employs certified end-to-end encryption.  This means that only the users have access to the encryption keys, not the supplier, which is not the case for commonly used platforms from Google, Microsoft and Zoom. 

 The good news is that you have plenty of reasonable options to start protecting yourself online.  One example is the use of VPN (Virtual Privacy Network).  VPNs hide your IP address and encrypt all the data you send and receive from that internet session.  VPNs allow you to work safely even on public WiFi connections, making it an easy, convenient, and affordable way to ensure that your business uses an extra layer of protection.  However, even the best VPNs are powerless when it comes to protecting weak links like your e-mail, cloud storage, or video calls.

 Another practice that you can start employing in your company is the use of password managers. Password managers are a service that stores, manages, and even creates your passwords.  Password managers automate unique and strong passwords for each separate account and will automatically fill those passwords in whenever you need to log in. 

 If you want to take your security even further, then Tauria could be the all-in-one solution for your company.  Tauria was built to be the ultimate collaborative tool for businesses and combines secured video conferencing, messaging, file sharing and storing, and calendar, while maintaining total user privacy and security.  Tauria does not sacrifice usability to attain extreme security- it’s even easier to use than Zoom and Teams.

 What makes Tauria safer than other platforms?  Tauria employs true end-to-end encryption in a zero knowledge environment, which means that every message you send or receive, every file you share, every meeting you set, and every call you take is completely private and fully encrypted.  You won’t ever need to worry about hackers, scams, or even the platform accessing and selling your data to 3rd party companies, because Tauria’s protocols ensure that no one, not even Tauria, can access your data. 

 In a work landscape that’s proven to be unpredictable and constantly changing, your data is a treasure chest that companies and hackers would do anything to open.  Make sure that only you have the keys.

For more information on TAURIA, please visit www.tauria.com.

Seeking Opportunities in Uncertain Times

By Glenn Yonemitsu, Managing Director, High-Impact Firms, BDC Advisory Services

We are living in a time of incredible uncertainty. Few business leaders have ever faced a future with “rules of the game” that are so unclear.  In the past, the rules of the game have always been known.  

How do you set corporate strategy when you don’t know if you can do business in the same manner that you have been doing for the past 20 or 30 years.  How do you allocate scarce resources when you don’t know the possible returns from each of your business growth strategy options?  What if the rules of the game change tomorrow?

For the majority of companies, they are “market takers”.  They agree with the basis for competition, prices set by industry competition, and they fight for market share, based on traditional rules of engagement.  Large companies, industry organizations, industry competition, and/or Government regulators set the rules and standards for their industry.  When a challenge like Covid presents itself, the vast majority of companies all become subservient to the restrictions imposed and “accept” the slowdown and down curve.

But, there are always a scant few companies who take the road less travelled. They zig, when all of the others, zag. If everyone expects a downturn of 20%, they look for flat line growth. When everyone else flat lines, they look for 20% positive growth. They look at every situation from a different perspective. They try to seek opportunity, in times of uncertainty, and they try to create a market, when others do not act.  They take on the role of “market makers”.

Think about the wine industry in Italy. Wines from Chianti have been produced since the early 1700’s.  But, as Chianti wines became popular over the next 250 years, wineries from a broader and broader region started describing their wines as from Chianti.  Not satisfied with this wine fraud, the leading wine producers from Tuscany wanted to protect, promote, and develop their wines.  They took matters into their own hands, and set out specific geographic territory, wine making rules, and adopted standards on what can be called “Chianti Classico”, “Riserva” or “Gran Selezione”, and only those wines that adhered to these guidelines, are allowed to use these terms, and have the logo of Chianti’s black rooster on their bottles. I would suggest these leading wineries, took the bull by the horns and became market makers.

This article suggests that market makers are the ones who take initiative, and are able to find opportunities in uncertain times.  On the converse, market takers are the companies who don’t do anything and accept a similar pain as the majority of the other competition.

So, how can your company become a market maker?

In 25 years dealing with high-impact companies, I’ve found the best companies – the market makers - focus on just a few simple things, and this differentiates them from the crowd:

1.     Ensure your employees feel safe so they can focus on making a difference.

2.     Live the right attitude so you can see opportunity.

Ensure your employees feel safe so they can focus on achievement

The best companies focus on this all of the time, but during this Covid-19 crisis, this point is even more important. This is a foundational issue and must be addressed first…before a company even has a chance to become a market maker.  Take care of your employees.  No great company will be able to do anything if they don’t have committed, dedicated and passionate employees. In order to have dedicated employees, as a leader, you have to ensure your employees feel safe and secure.  

Source: SimplyPsychology.org

Remember Maslow’s hierarchy of needs, from our Psychology 101 course in College?  It applies here.  Before you can expect your employees to focus on achievement, you have to take care of the basic (physiological needs) and safety needs. If you can help satisfy your employees’ basic and safety needs, then they can focus on, and address their higher-level needs through their work, and your company will be the beneficiary of their need to succeed.  

With Covid, this foundational issue becomes even more important.  Can you do this quickly?  It might be tough, as it requires trust, and how you have treated employees in the past, may limit how fast you can help your employees move up Maslow’s pyramid.

8 steps to having the right attitude

The ability to seek opportunity during uncertain times starts and ends with your attitude as a leader…and this will rub off on the attitude of the rest of the team. It sounds so simple and many people will brush this off.  But, without the right attitude, you won’t be able to see opportunity – all you will see is obstacles, restrictions, and the odds stacked against you.  With the right attitude, one can see through these challenges, and one can see the cracks in the opposition, where the rays of sunshine are breaking through.

It is hard for pessimists to see opportunities.  Here are 8 techniques to remember, that will help ensure that you live the right attitude:

1.     Believe there is always a way out – if you don’t believe there is opportunity, then no one else will.  If you think you are doomed, you will be.

2.     Keep an open mind – being willing to adapt to new demands and needs – being willing to consider all options, even if you tried something before, being open to brainstorming and building upon ideas, as opposed to shooting ideas down.

3.     Resolve to take control of your future – rather than be an acceptor of your situation, take control and own your situation. If you ingrain it in your head that you are in control, then you will be able to take responsibility for your future, and be the master of your own destiny.

4.     Know your core competencies – know what you are truly good at. Think of these capabilities as transferrable skills…and this will help you envision how you can leverage these skills in a different situation and application.

5.     Consider what big levers have changed in the world – think about the impacts of the changes on supply chain, what your customers need/want, how your customer’s work/living habits have changed, and ultimately, how these big levers have impacted your range of opportunity.

6.     Look at the situation from various perspectives – if you look at the situation from the same perspective as everyone else, chances are that you will see what they see. If you look at the situation from your customer’s perspective, or from your suppliers’ perspective, you might be able to see something different, and maybe, an opportunity.

7.     Don’t be afraid to be a contrarian – if everyone else zigs, then you can zag. If everyone is exiting a product/service, then maybe opportunity comes to those who stay.  If you want different results than others, then don’t do the same thing. 

8.     Be courageous – reward comes to those who are willing to take on risk. The easy route rarely provides big returns, because the majority of people will follow the easy route.

How a few companies found opportunity

Last week, I had a regularly scheduled appointment with my family doctor. Given the Covid lockdown, I wasn’t sure I would even have an appointment.  Two weeks before the appointment, I was informed that instead of an in-person appointment, it would be a held via video conference. My doctor had an application specific video service. He asked me the normal questions, and I was able to provide feedback on my health, using some of the recent health technology offered by my Apple watch (pulse), a sleep ring (oxygen saturation), my blood glucose monitor, and a home blood pressure unit. In fact, my stats were better than normal, as I was able to provide these stats over a period of time, as opposed to a one-off measurement in the doctor’s office. We had a great chat about my health, my exercise and my prescriptions.  My doctor issued a blood requisition, that I took to a medical lab that day, and in only 2 days, when he received the results, he sent me an email with his recommendations. In many ways, this may have been the most effective appointment, with the best communication that I’ve ever had with my doctor.

Mad Paws is an online pet care community in Australia whose business model generated revenues by matching services (dog walking, pet sitter services, dog grooming and training services) with dog owners. Due to Covid, the demand for these services dropped and revenue from the web-site collapsed. Instead of being destroyed, the leaders of Mad Paws realized that people’s sensitivity for healthcare peace-of-mind would be heightened during this health crisis. They seized this opportunity to launch a new service offering pet insurance (similar to medicare), and they have opened up a whole new revenue stream.

Price Industries is a heating, ventilation and air conditioning manufacturer, with 1,400 employees, based in Winnipeg, MB. When Covid and the resulting lockdown hit, the company could have easily shut down and waited for the all clear.  Instead, the company used its knowledge and capabilities to develop a new fan filter unit, that pulls air out of an enclosed environment, creating a negative pressure environment, then filters the air through a HEPA filter, before re-using the cleaned air.  This ingenuity and new product allowed them to keep all 1,400 employees employed through the crisis, and they have a whole new business opportunity with this clean air unit.

Be a market maker

Each of these companies refused to lie back and take the market restrictions. Instead, they kept an open mind, they resolved to stay in control of their future, they used their creative knowledge, thought about the big levers that moved, applied their core competencies, looked at the world from the opposite perspective, and they had the courage to do things differently…and because of that, they found opportunity, even in these uncertain times.

More information on BDC Advisory Services is available here.

Thinking about International Expansion?

By Mo Ahmad / Debra Lewis-Mahon, Westmark Tax 

Is it really the right time to seek out new opportunities by expanding to a new country?  With all the travel restrictions and drastic changes to immigration policies, you might think its crazy to consider that international expansion right now.  Or maybe it’s just being courageous.  With the proper perspective it might be just what you need to succeed right now.   

Even with the uncertainty, we are continuing to assist clients that see global expansion as a viable growth strategy.  Especially between the US, UK and Canadian markets.  For some, it becomes a necessity if a product or service becomes popular in a new market or opportunities dry up in the existing market.  The ease of doing business globally through the internet has continued to spur global activity even in the current environment.  

Based on our firsthand experience helping Canadians expand into the US (and Americans expand into Canada), the biggest piece of advice we would provide is to do your homework ahead of time: Pre-planning is crucial!  Even between the US and Canada, the various legal, tax, accounting and regulatory requirements are so very different that it is sometimes hard to figure out where to start.  

We’ve outlined below some of the fundamental decisions that you need to consider.  These are the ‘boring’ items that you need to review - in addition to your sales/marketing strategies.  We are just outlining the questions here and you need to do your homework to figure out the right answers for your situation.  This will require a balancing act of various items like tax, risk mitigation and operational efficiency.  

Please note that the below list is not meant to be exhaustive and its only a partial list of the things you’ll need to think about.  Talk to people that have done it and make sure you get professional advice to help you determine the appropriate questions and answers for your situation.  

Corporate Entity:  First question will be to decide what form of business entity to establish.  Most likely you will need to set up a new business entity in the US although in certain circumstances you may be able to operate in the US using your Canadian entity.  You should definitely get professional help on this question as there are various entity types (with impact on tax issues) and various jurisdictions (with various Federal and State issues to consider).  

The most common form for a Canadian business operating in the US will be a C corporation which is typically incorporated in Delaware.  The primary reason to incorporate in Delaware is that the Delaware courts and laws are well-proven for corporate law disputes.  However, this is definitely not the right solution for everyone! There are other alternatives such as the sole proprietorship, partnership and the Limited Liability Company (LLC) which is a business structure allowed by state statute.  The LLC is a popular form of business entity in the US because of its liability protection and flexibility however it may not be appropriate for a Canadian business operating in the US.  

There will be various legal and tax considerations in selecting a business structure and it is a very important decision as the entity type will drive a number of other considerations.  You will need to balance the pros/cons of the various choices and decide on the appropriate entity type and jurisdiction for you.  Once you’ve chosen an entity type then you’ll need to decide on a name and obtain the appropriate tax identification number.  You will register your initial business entity in a particular state and then may need to qualify or register the business to operate in other states, if necessary.  

Tax/Accounting Issues:  You will need to take some time to really understand the tax issues – there will be Federal and State tax issues to consider.  You will want to undertake income tax planning for Federal and State (and maybe City/County) tax purposes to determine what will be left over after paying the various levels of tax.  There may also be some tax incentive programs so you’ll want to investigate this.  For example, the State of California Research and Development Tax Credit allows companies to receive a 15% tax credit for qualified in-house research expenses made in California. There will be various requirements to be met however it may be worthwhile to explore these opportunities up front to determine if the business could qualify. 

Once you’ve understood the tax rates then you need to consider how do you repatriate the funds back to the parent company or to shareholders.  There are various strategies here and will depend on how the US company is related to the parent company and whether capitalization of the US company was by way of equity or debt.  Also, you may need to consider transfer pricing rules to determine appropriate strategy here and implement intercompany agreements.  

There is a very comprehensive Tax Treaty between the US and Canada which will be helpful to avoid double taxation.  Be careful though if you’re doing business in California as the Tax Treaty may not apply to State tax issues.  Again, need to have a good understanding of the Tax Treaty and your tax plan to avoid double taxation pitfalls.

You will also want to understand some of the tax reporting requirements for the US company and review how to keep track of the accounting/bookkeeping.  Usually, this can be managed from the parent company however there will be differences in payroll, banking, currency issues, etc. so you need to educate yourself on the various differences.  You will want to understand if you need to register for and charge sales taxes.  Each state has their own sets of rules for sales tax.  

Finally, there are various information and foreign disclosure requirements that need to be considered for US companies owned by foreign owners.  It is very important to keep track of related party activities and transactions.  Your accounting/bookkeeping process needs to able to keep track of the details for reporting at year end.  For example, corporations file Form 5472 to provide information required \ when reportable transactions occur with a foreign or domestic related party.  There are steep penalties for failure to comply with these requirements.  Also, there are Foreign Bank Account Reports (FinCEN Form 114) to disclose non-US bank accounts.  Steep penalties if you don’t get this reporting accurate and timely.

Other Legal and Regulatory Requirements: 

There are a host of other legal and regulatory rules to consider.  Some of the common items are outlined below however there will be other issues for your specific situation.  Also, remember that there are Federal rules and then State rules to consider.  Especially in a market like California you really need to understand both sets of rules to operate a business. 

Employee Considerations:  You will need to consider your strategy on whether you will hire local employees or will you move current employees from the parent company.  Usually, the senior employees will move from the parent company.  In this case, you need to consider the immigration requirements.  In the current environment, it may take a lot longer to get an employee relocated to the new location.  

Also, you’ll need to review employment agreements for the new jurisdiction and update existing provisions for confidentiality, non-compete, termination or severance and for bonus or equity compensation.  If you have a stock option plan, you’ll need to review it to ensure compliance with US securities rules and draft appropriate US documents.  You may also review whether there are any tax favoured compensation programs available for key employees.  Finally, you’ll need to consider benefits packages and obtain health insurance coverage which can be very different in the US.  

Next, you’ll need to establish a payroll system so that you can pay the US employees and register for the various workers compensation and employment insurance programs in the applicable jurisdiction.  You may want to review your Canadian employee handbook or create a US equivalent to establish protocols for human resource issues.  

Industry Specific Regulatory Requirements:  For various industries, you’ll need to identify whether there is industry specific regulation required in the US and, if so, you’ll need to consider how you can register.  In some cases, you’ll need to have the entity set up before you can register and may need a US Social Security Number to license individuals.  So, if you do need to register or comply with licensing requirements make sure you consider the process for non-residents and how long it will take to get compliant.  You may not be able to start the business without this.  

Risk Management:  This is an important consideration for the US business environment.  You will need to review coverage for generally liability protection – consider if your current policy will cover the US business.  Most likely, you’ll need to get separate coverage for the US business.  Also, consider if you need product liability insurance and/or liability protection for officers & directors.

Intellectual Property:  Assess the need for copyright or trademark registration, patent filings or anything else to protect intellectual property.  

Product:  If you are selling a product then you will need to develop a US import strategy and initiate a products review to ensure that you can legally sell the product in the US.  As part of this review, you will consider labelling requirements, any quotas or duties and review of any US trademark or patent right held by third parties.  You will also need to review the terms and conditions of sale/purchase and ‘Americanize’ any commercial agreements.  Finally, you may need to review the product warranties for compliance with US rules.  

 Real Property: If you will be setting up a physical office then you will need to do your due diligence with respect to potential locations and negotiate appropriate leases.  Also, lots of additional things to consider if you’re looking to purchase real property. 

 Conclusion:

There are certainly lots of opportunities to explore internationally.  However, making the decision to expand into a new country requires a careful evaluation of a maze of rules and regulations.  It can be a daunting process at the best of times so these days it can be even more challenging!  

The number one takeaway – make sure that you plan ahead of time to avoid costly errors down the road.  If you’re willing to invest the required time and resources upfront, then you’ll avoid surprises down the road!  Set your expectations and become aware of the complexity and the bureaucracy that you’ll face so that you can easily overcome obstacles when they arise.  

For more information, please visit Westmark Tax at www.westmarktax.com.

_________________________

This article is for information purposes only and does not provide tax or legal advice.  Due to the complexity of the tax rules for cross-border situations, it is imperative that you obtain professional advice from a qualified tax or legal advisor specializing in cross-border planning before you act on any of the information provided.

An Interview with MAPLE New York Chapter Executive Director John T. Costanzo

We are pleased to speak with John Costanzo, the Executive Director of the New York Chapter of MAPLE Business Council to learn more about the MAPLE organization and the opportunities for the New York region to grow its economic ties with Canada.
 
Q. John – thank you for taking the time to share some of your background and perspectives with our readers. Would you tell us about how you first got interested in cross-border business between Canada and the U.S. or perhaps with New York in particular?
 
My first experience in supporting NY Area companies’ cross border business goes way back to when, as a young representative of Emery Air Freight in Manhattan, I would help my clients ship documents and product to and from Canada. As part of my service, I recall picking up blank Canadian Commercial Invoices at a local Wall Street based stationary and helping bankers, media executives, accountants and other professional services employees to fill one out for items valued at more than $20 Canadian - the same free duty limit as today as far back as then. Fortunately, under the new USMCA,  the maximum duty threshold (referred to as the deminimus rate) has finally been raised to CAD $150 and the taxable value will be raised to $40.
 
Later as the Northeast Regional VP for Purolator U.S. in the 80’s, I opened a regional air hub at Stewart Air Force base to provide overnight service throughout the northeast, serving markets from Maine to Virginia and western NY. While our operation was the main customer of Stewart at the time, when observing the first night of our operations from the control tower, I noticed two aircraft on the ground that were not ours. One was the Commandant’s of nearby West Point, and the other operated by a small company called “Canadex” that was using Stewart to provide overnight delivery between the U.S. and Canada, serving Ontario, Quebec and the NY Metropolitan area. This was the impetus for a successful extension of that overnight operation to connect with Purolator’s national Air Hub at Mount Hope Airport in Hamilton, Ontario…. serving all of Canada overnight from the Northeastern U.S. 
 
Q. How significant a role has trade and investment between Canada and the U.S. played in your career?
 
Over the past 17 years leading Purolator’s U.S. cross-border business it’s been everything. 100% of our focus in the U.S. has been on helping U.S. and Canadian companies to launch their business in Canada. I have also led the national and international divisions of four other logistics companies over the past 35 years, and I have found that the “northeast quadrant” of North America, which I define as including Ontario and Quebec and stretches down into the States from Minnesota to Maine and south to Tennessee, has always represented about 65% of our business. 
 
From an economic and cultural perspective, I’ve noticed this quadrant has more in common economically and culturally than with other parts of each country. If it were a separate country, the GDP generated in this quadrant would rank it as one of the largest economies in the world - perhaps 3rd or 4th after the US, China, Japan and the EU countries as a whole. It was always an area of focus for me as result, and particularly the NY tri-state region.  
 
Approx. 10/20% of the revenues generated by Transportation & Logistics companies is generated from Canadian/U.S. cross-border trade. It was also the most profitable part of their business, as most companies entering the cross-border market for the first time needed help to navigate the complexities associated with moving shipments to/from Canada and the U.S. and were willing to pay a fair price for that help.
 
Like UPS and FedEx, the fastest growing part of Purolator’s US business over the past 7-10 years was our ecommerce business, as new entrants like Amazon, eBay and similar platforms as well as bricks & mortar retailers like Walmart, Abercrombie, Williams Sonoma formed ecommerce divisions to compete. Canada was typically the first or second market they launched outside of the U.S. due to the harmonization of regulatory matters, favorable duty rates through NAFTA and soon the USMCA, and sharing a common language for doing business with most of the provinces. So, Canada has played an important role in my career of helping U.S. based businesses prosper from trade.

Q. You most recently spent 17 years leading Purolator International based in Jericho, NY where, as CEO, you oversaw a ten-fold increase in sales and an expansion from 3 to 32 markets. As a company dedicated to helping American businesses ship to Canada to penetrate the Canadian market, what were some of the most common issues or challenges your clients faced?

There were many. Some examples are: 

- Where to fulfill orders from… whether to setup a US or Canadian Distribution Center to fulfill orders. We helped many companies to fulfill orders more efficiently and cost effectively from existing US or Canadian DC’s rather than opening new and expensive DC’s in the US or Canada.

- How to register to do business in each country… i.e., as a Non-Resident Importer (NRI), or registered company.

- What was the Customer Experience they wanted to offer? Overnight, 2 day or longer?

- How to clear Canadian and U.S. customs?

- How to handle return shipments… much different when a border exists, as you must clear these shipments twice… once entering and then exiting Canada or the U.S. 

- Offer a Duty paid or Unpaid option to customers?

We always advised our clients to consider these factors carefully before entering the market. Ecommerce companies do a great job “generating” orders through their online platforms. Whether they are profitable or not; however, depends on setting up operations properly from the outset. 

Q. What are some of the key trends you’ve seen emerge in recent years with respect to Canada-U.S. trade and investment?

- The lowering and harmonization of duty rates for items sold between each country has been a huge boon to business. After the recession in 2008/2010, duties on about 1,100 items were lowered or eliminated, and trade between the U.S. and Canada boomed. 

- This growth, and Canadian/U.S. customers’ expectations for 1-2 day delivery has vastly increased investment by the U.S. and Canada in border infrastructure, and by commercial businesses in distribution and order fulfillment operations across each country. 

- The U.S. has led the ecommerce revolution, but Canadian consumers have quickly adopted this as a preferred means of delivery. Given most ecommerce orders in Canada are purchased from U.S. companies, Canadians expect their experience on delivery to be the same as it would be when ordering product in Canada… i.e., no surprises at their front door by logistics companies attempting to collect duty. A survey we conducted at Purolator showed that the majority of Canadian consumers ordering frequently online would not order from a company charging them for delivery or duty. This is a big change in expectations from just a few years ago. 

Q. With the USMCA Trade Agreement being activated on July 1st, which as you know is Canada’s national day, what are some of the opportunities that the new agreement presents for businesses in the New York region?

- Some of the better-known benefits are raising the deminimus (max value for duty free entry to Canada) to CAD $150 as well as increasing the taxable value to $40. However, what’s missed is that the advantage is still stronger for Canadian companies entering the US, which has a USD $800 deminimus… over $1,000 Canadian.

- Dairy companies can export nearly four times the value of product to Canada, which is a major boon to NY dairy producers. 

 - Changes to intellectual property rights and copyrights. 

- Finally, perhaps the biggest, yet perhaps the least understood change, is the elimination of Chapter 11 in NAFTA. This clause allowed U.S. or Canadian companies to sue in a local court or a private international tribunal for what they viewed as unfair trade practices by a participating country. This clause was meant to protect U.S. and Canadian companies from unfair court decisions in a developing country. The reality, however, is that major corporations used it to sue a country for unfair trade. For instance, major US corporations sued Canada 41 times since NAFTA was signed, costing Canadian taxpayers nearly $100 million in legal costs and $200 million in fines and there are still more than half these claims yet to be settled. Under the USMCA, companies will need to present their case in a Canadian or U.S. court, and subject to local law correcting this anomaly. It will; however, mean that companies trading in both countries will need to do more due diligence up front to ensure they are complying, but in the end it’s a healthier way of conducting trade. 

Q. For those who are not familiar with MAPLE Business Council, what is the mission of the organization and what benefits or opportunities does it offer to businesses? 

The pandemic has shown us we can conduct business virtually, and for disseminating information, but it’s also showed us how valuable in-person networking is in business. In-person presentations, storytelling, face-to-face meetings to discuss trade and investment are more effective communication elements than voice or video communication can achieve, and MAPLE will bring this element to the NY area. 

Other opportunities include:

 - Expanding contact between like-minded people and companies conducting U.S./Canadian trade

 - Providing a forum for dissemination of knowledge, information, market research, sources of capital, understanding regulations, the impact of the new USMCA, and more.

Q. Can you talk more about building the New York ‘brand’ so to speak to attract interest from Canadian businesses? 

First, learning from MAPLE’s success in establishing a strong brand the Southern California market and leaning on the social media tools already built by the organization for the NY chapter.

My personal experience in building a strong brand is to have a clear message around three things:

 o   Who we are?

o   What we do?

o   And who we do it for?

I will work hard with the founders of MAPLE to build strong awareness of the opportunities for growth in our region, and thereby investment by Canadian organizations in the New York market. 

Q. We understand the organization began in Southern California which continues as its base of operations. How long have you been involved with MAPLE Business Council, or MAPLE as it is referred to, and what motivated you to launch the organization in the NYC region?

I first became aware of MAPLE Business Council through the west coast District team at Purolator International, who joined MAPLE early on. They invited me to attend a networking event in San Diego, which I found to be very professionally run and well-attended by companies in the area. 

I subsequently reached out to MAPLE co-founders, Stephen Armstrong and Robert Kelle, to discuss whether they had any plans or interest in expanding here in the New York area, and to my pleasant surprise they had been contemplating opening a new chapter here. The rest is history.

There is a strong expat association here in New York called CANY that I belong to which is focused on social and philanthropic programs. I hope to develop a strong relationship with CANY and to fill a need for an organization in NY focused on U.S./Canada trade, investment and entrepreneurship.

Q.  As we look ahead to economic recovery, what role do you see the MAPLE community playing in terms of regional economic development and how does it relate to the work of the Canadian government’s presence in New York in the form of the Consulate General?

As a member of NY’s Regional Economic Development Council (REDC), I became aware that most trade with Canada is conducted by larger companies, but that small companies make up the majority of businesses in New York which don’t have the bandwidth to research and launch a trade initiative in Canada. Hopefully, MAPLE will help to fill that void, making it easier for small businesses as well as larger companies to compete under USMCA. 

Q. As a membership-based organization, from what types of companies are you looking to attract interest? 

New York is well known for its Finance, Insurance and Real Estate Industry (FIRE)… one of its largest, and a key focus for the Consulate and will also be for MAPLE. Also other professional services firms such as accounting, trade, & logistics companies based in the area. 

 -  Media is a huge sector in NY

- IT services and ecommerce sector, also a fast growth sector for NY

- Life Sciences and Bio Tech:  New York/NJ’s fastest growing sector over the past few years

-  Energy, and NY’s need for hydro power from Québec

- Aerospace is still one of NY’s largest sectors and will also be an area of focus

Q. John – would you share a little about other initiatives you are involved with in the community be it economic development-based or other?

I am proud to serve as a member of the Governor’s Regional Economic Council for Long Island reviewing and recommending grants through the governor’s economic development program. 

I am on the board and Executive Committee of the Long Island Association (LIA)… Long Island’s largest and most influential business association. I also Chair the LIA’s International Trade Committee. 

I am the Co-Chair of the Empire State Development Agency’s Tradeable Sectors committee and a board member of the United Way of Long Island.

Q. Thank you for your time today, John. How can people who are interested in learning more about MAPLE, find more information? 

The MAPLE Business Council website is a great resource and provides an overview of our work.  www.maplecouncil.org.

Those interested in more information on joining our New York Chapter may contact me at:

 -        Email: john@maplecouncil.org

-        Twitter: @johntcostanzo

-        Phone: (516) 588-9165

Avoid Hefty Penalties: ‘SECTION 216’ Non-resident Rental Canadian Tax

Author: Ruby Chouhan, Business Development and Client Services, Realty Division, Trowbridge Tax.

UPDATE:

In response to the COVID-19 pandemic, the Canada Revenue Agency has recently extended the filing deadline for Section 216 'T1159' Non-Resident Rental Returns from June 30th, 2020 to September 1st, 2020.

CRA Reference: (Please see “Section 216(4) – Deadlines”): https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-filing-payment-dates.html

While various Canadian tax filing deadlines have been extended due to COVID-19, the tax filing deadline of June 30th, 2020 for non-resident rental property owners remains the same. This deadline is fast approaching and it is critical to file on time to avoid hefty non-resident tax assessments on rental income.

For most non-resident rental property owners, the T1159 Income Tax Returns for Electing Under Section 216 (Section 216 Non-Resident Return) for the 2019 tax year are due to the Canada Revenue Agency (CRA) by June 30th, 2020. The (CRA) has two different tax filing deadlines for non-resident rental property owners – June 30th, 2020 and December 31st, 2021.

The first deadline of June 30th, 2020 is strictly imposed by the CRA for taxpayers who were approved to remit non-resident tax withholdings on their estimated net rental income. If Form NR6 was approved by the CRA for 2019, allowing you to remit reduced non-resident tax at a rate of 25% of your estimated net income, then you must file the Section 216 Tax Return by June 30th, 2020. Failing to submit the Section 216 return by the June 30th deadline results in a hefty assessment of 25% of your gross rental income being issued to your ‘Canadian Agent’ for tax purposes– even if you file the tax return late by only one day. Ultimately, your ‘Canadian Agent’ for tax withholding purposes would receive a penalty due to your non-compliance with the return filing requirements and then you’d be obligated to pay the penalty as well as associated arrears interest.

If non-resident tax withholdings were remitted to the CRA at a rate of 25% of your gross rental income then the CRA allows up to 2 years from the end of the tax year in which you earned rental income to submit your final Section 216 Tax Return, for example: for rental income earned in 2019 where 25% of gross rental income was withheld as tax you have until December 31st, 2021 to file your return.

If you are left unsure as to whether an expense is deductible on your Section 216 Tax Return, you can simply include receipts for these expenses when uploading your documents to Trowbridge’s secure portal. Upon preparation of your return, we will review to determine if this expense is allowed as a deductible item on your Section 216 return. We can then include these expenses to help reduce your overall taxable income.

Following these guidelines and adhering to the tax filing deadlines that apply to your specific situation will ensure a seamless return process and will help you avoid unexpected penalties.

If you need solutions to your more complex questions on Section 216 Non-Resident Tax Returns, contact the Trowbridge team at info@trowbridge.ca.

An Interview with Air Canada - Vincent Gauthier-Doré, Senior Director USA Sales

We are pleased to sit down with Vincent Gauthier-Doré, Senior Director USA Sales at Air Canada based in NewYork City, for an update on Air Canada.

Q. Please describe your role at Air Canada and the work of your team in the U.S.
 
In a few words, I am responsible, with my team, for developing the US market for Air Canada. Our main focus is to maintain our leadership position on the transborder market (US to Canada) and develop Vancouver, Toronto and Montréal as international hubs, connecting US customers to our international network via Canada. To achieve that, we have a multidisciplinary team in the US interacting with corporate customers, travel agencies and the business community.
 
I must add that we have a very competitive connecting product for our US customers. We call it ACTransit. When traveling from the US to our international destinations, the transit process at Vancouver, Toronto or Montréal is seamless: everything is in one terminal, checked bags do not need to be picked up and there is the benefit of pre-clearing US CBP on the returning trip, while connecting in Canada. As a Canadian, I am very proud to see thousands of Americans choosing Air Canada for their international journeys. It gives US customers more choice and allows Canadian communities to be connected by air to more international cities. Finally, I would like to remind everyone that, despite the current border restrictions in Canada, same day connections from the US to our international destinations is still permitted.
 
 
Q. Air Canada has pivoted to support cargo needs using aircraft originally designed for passenger travel? Can you talk to the scope of cargo work that has been supported this way?
 
Correct – at the onset of the pandemic in North America, passenger travel demand plummeted while demand for moving cargo goods was growing. Air Canada is a large company, but still very entrepreneurial. We’ve always moved cargo in the belly of the aircrafts. So, AC Cargo got creative and we are now able to use the passenger space of some aircraft by converting them to “all cargo” aircraft. This was very innovative. With the help of our maintenance partner in Mirabel Québec, Avianor, we converted some Boeing 777 and Airbus A330 for new cargo missions. We now have all cargo aircraft flying every day to Los Angeles, Asia and Europe. We are open to review any special demand for customized cargo flights. We even converted Bombardier Dash 8-400 aircraft to carry small packages.  This whole initiative allowed Air Canada to be an active participant in providing life-saving PPE to many communities in Canada and around the world.

 
Q. What strengths has Air Canada drawn upon to navigate the current economic situation and the impact on your industry and your company?
 
Our executive team has worked diligently over the past decade to ensure we have a solid balance sheet and enough liquidity. I think this is key for any airline to weather the current storm. We had some flexibility with our fleet with fully unencumbered assets which allowed us to adapt our fleet. Specifically retiring the Embraer 190 and Boeing 767 from the fleet in the past few weeks.
 
Our people and partners in the travel industry are working tirelessly at informing our customers about our growing schedule, new route map and all the industry leading measures we are taking to make travel safer than ever. This will be instrumental in our recovery.
 
 
Q. What changes will passengers see when they fly their next Air Canada flight?
 
I think the biggest change will definitely be the health and biosafety protocol measures that have been put in place to support a safe experience for our employees and passengers.  You’ll see initiatives such as passenger temperature checks and a requirement for everyone to wear face coverings.  Air Canada was the first airline in North America to recommend a face covering and that will likely look and feel very different the first time you travel. And I’d like to add that before every flight each aircraft undergoes a stringent cleaning process. We named this entire process Air Canada CleanCare+ and really feel it will make customers feel comfortable to start travelling again. 
 
 
Q. What do you want to say to a business or leisure traveler about returning to air travel again?
 
We understand that not everyone will be ready to travel at the same time. When you’re ready, we will be waiting. But as for me, travel is so much a way of life. It’s a testament to the airline industry when you see how many years many of us have working in this space. It’s a testament of our passion to explore and visit with friends and relatives around the globe. It’s no secret my bag has been packed for 2 months and I’m ready for takeoff.  

Q. The USMCA Trade Agreement will be activated on July 1st, which is Canada’s birthday as a nation. What impact do you foresee on commercial air travel based on having the updated trade agreement being implemented?
 
I think the USMCA Trade Agreement will be great for air travel.  Air travel is an export. And speaking to the demographics of this publication it’s no secret how strong the trade relationship is between Southern California (SoCal) and Canada. We want to find unique ways to support that business niche. We can have a joint celebration to honour the signing of the USMCA and Canada Day. It’s time to travel. 

 
Q. MAPLE is launching a chapter in New York and has been active for 5 years in Southern California since our founding. Can you comment on Air Canada’s commitment to these markets and what travelers in these regions might expect in the coming months?
 
I’d like to start by saying I’m now located in New York.  We now have an office in the city which we officially took possession of in January 2020. I think that shows how strong our commitment is to the market and how important our involvement is. We are looking to further engage the business community in unique ways to support trade. We will be proud members of the New York chapter. I look forward to finding ways to support. New York and the Greater Los Angeles area are the cities with the largest Canadian Expat communities, and I look forward to further leveraging ways to support each other as we all begin to reopen in this new environment. 
 
 
Q. On a personal note, what does “Fly the Flag” mean to you as an Air Canada executive?
 
To me, as a Canadian living in the US, it means connecting both our countries and supporting trade. It means cultural connections in our communities. It means bringing people with the class and care Canadians are known for together towards a common goal. Nothing makes me prouder than seeing the maple leaf in airports in the US and around the world.
 
Thank you.

The Acceleration of Change in Commercial Real Estate

Arlyn Stoik, Principal, Avison Young

This month, we hear from leading commercial real estate firm, Avison Young, on the state of the market across Southern California. In The Acceleration of Change in Commercial Real Estate, Arlyn Stoik, principal at Avison Young with 26 years of experience advising owners and occupiers of commercial real estate throughout Canada and the southwest U.S., provides an overview of what is happening in the office, retail and industrial sectors with trended data for the Inland Empire, Los Angeles, Orange and San Diego counties.

In the commercial real estate advisory business, our job is not to predict the future. No one can. Rather we try to interpret and understand the most current data, follow social and economic trends, keep pace with new technology, underwrite the risk in real estate decisions, and help create and execute strategies that provide our clients with the most stable and profitable long-term outcomes.

Well, the first quarter of 2020 was progressing nicely and according to plan with clients experiencing strong business growth, real estate values at all-time highs, and a market where capital was plentiful and inexpensive.

Things were great… until they weren’t. Most of us did not see this coming. As I said before, no one can predict the future… except maybe Bill Gates.

When we talk about the effects of COVID-19 on our society, both short term and long term, it is nearly impossible for us to accurately predict what it will mean for our lives going forward. Without question it is easy and fashionable to overstate the long-term impacts with broad statements like “things will never be the same again” and the ongoing narrative that the sky is falling. Then again, we have to ask ourselves will the challenges we face in the near term radically change where and how we live, work, shop and congregate in the future. Will they completely disrupt how we interact with physical space? 

The commercial real estate market is fluid and incredibly resilient. Both owners and occupiers are now being forced to reconsider this relationship in all asset classes. How will these different asset classes be reshaped, if at all, by this current crisis? Some change is inevitable but to contemplate the emptying out of central business districts and the death of the dine-in restaurant experience is likely exaggeration.

Commercial real estate is a broad class of asset types from shopping centers to office buildings, warehouse and manufacturing facilities to data centers, and multi-family residential to hotels. It is an industry of creativity and change, of old traditions and rapidly evolving technology. COVID-19 is having a profound impact on all aspects of society and the commercial real estate market is no different. But not every segment will be impacted in the same way. Below we have provided a quick look at the recent state of the southern California marketplace and a few key changes affecting the office, retail, and industrial market sectors.

Office 

During the start of the new year, southern California’s office market experienced overall gains and carried forward momentum from 2019. Leasing activity was robust, employment numbers strong, vacancy rates relatively low, and significant new development activity underway to meet the market demand. 

Over the past several years, the office environment has been moving toward higher density, collaboration spaces, open work settings, co-working, and amenity space such on site dining and fitness. While the push has been to create efficiency in occupancy, most organizations now understand that your office environment reflects company culture and is a vital tool to recruit and keep top talent.

Over the past few months, as we have been required to work from home and embrace sometimes foreign technology, the forced acceleration of how companies use of this new technology has opened many organizations’ eyes to how productive their workforce can be working from home. Will this trend continue after the current pandemic ends? Will office space requirements decrease? Will driving to the office in horrible rush hour traffic or riding within packed subway cars be the exception? These questions are still yet to be answered but need to be contemplated.

As we begin to re-open the workplace, new rules and procedures for the re-opening of the traditional office completely fly in the face of the previous trends of densification and in-person collaboration. As social distancing continues to impact behavior in the short term, many believe we will see the density of office space decrease. Ultimately requiring more space per employee and offsetting the decreased demand caused by work from home. Some believe that the demand for office space will actually increase in the long term because of this. And where will those offices be located? In many urban centers, a bigger concern is how employees travel to and from work, which in many parts of the world require the use of public transportation. Will the suburban office movement reverse the trend of the growth of central business districts? 

One thing is certain. All organizations will need to show flexibility with their employees as we find our way through this crisis. This flexibility may also create structural changes in real estate ownership as tenants demand increased flexibility. Are long term leases a thing of the past? Will flexibility ultimately rule the day? And how does that affect the value of these assets if long term leases with stable credit worthy tenants are no longer the norm? The future of the workplace seemingly has many more questions than answers.

 Retail

 Retail in southern California, like most regions, has been relatively flat with negative absorption in most submarkets, nominal rental growth, and limited net new development. The saving grace for the region is southern California being a prime tourist destination pouring billions of dollars into the economy. California is also a state of progress and change. It is where new retail formats and concepts will incubate and grow, ultimately reshaping the shopping and entertainment experience of the future. 

Retail has been one of the sectors most impacted by COVID-19. With recent reports that over 20 million U.S. workers have lost their jobs in the past month, consumer spending has been dealt a devastating blow that will take significant time to recover. In March alone, brick and mortar stores saw their sales decline 8.7% from the previous month, based upon information from the US Department of Commerce, with apparel being the most severely impacted, seeing sales drop over 50%.

What the current crisis has done is accelerate the headwinds and trends that have already been impacting the retail sector with the growth of online shopping. During the pandemic, with most retail stores being unable to operate and restaurants being forced to survive on take-out and delivery, e-commerce, along with grocery stores and pharmacies, have supplied consumers with their basic needs. This trend will now continue at an accelerated pace as acceptance has been forced on the population.

Beyond consumer trends, as the economy struggles and unemployment increases, the result has been the significant reduction in the purchasing of non-essential discretionary items. The devastation cannot be underestimate. It will have long term implications on retail and the retail real estate marketplace – a sector that has been struggling to find its footing.  The news is full of stories detailing the fall of many fashion and soft good retailers, department stores, and restaurants across the country that in many cases had been struggling mightily prior to Covid-19.  We expect a number of additional retailers with unhealthy balance sheets, an inferior service offering, and/or those without a strong omnichannel presence will ultimately close for good. Others will rationalize their footprint and rid themselves of underperforming locations. But good retailers with the right concept, story and value proposition will always thrive and we will see incredible new concepts rise from the ashes. We will also see existing brands and shopping centers re-emerge better than ever.

Industrial

Southern California’s industrial market is one of the most important in the country. Los Angeles is the primary point of entry of goods coming from Asia for further distribution throughout the country. In addition to distribution and logistics, the market is incredibly diverse including manufacturing, aerospace, apparel, food processing and packaging amongst many other categories. It has also been one of the tightest in country seeing strong rental growth over the past several years. Part of southern California’s challenge is simply the lack of available land for new industrial development.

Industrial has traditionally been one of the better sectors to weather economic challenges compared to other property types. The logistics sector in particular has been very resilient during this pandemic as e-commerce continues to expand at a rapid pace. We have all witnessed the Amazon or Fed Ex trucks whizzing by our homes daily. We have also witnessed disruption to global supply chains which will force many to re-evaluate near sourcing of products and manufacturing thereby strengthening the domestic supply chain.  The acceleration of this reshoring combined with an increasing drive for efficiencies via implementation of automation and technology will drive change and adaptation in the industrial marketplace.

A NEW NORMAL

As noted in the Avison Young report “Evaluating the New Normal for Commercial Real Estate” organizations need to plan ahead, starting with short term-priorities and considering potential longer-term solutions. But claims of a “new normal” that is radically different from the old appear at the very least premature and in many cases misplaced; for now, they should be treated with caution.”

Arlyn Stoik
Principal
Avison Young
www.avisonyoung.com
arlyn.stoik@avisonyoung.com
U.S. Tel 949.416.9927
Canada Tel 780.908.4227

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises thousands of real estate professionals in more than 100 offices around the world including eleven offices throughout California. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.

Investing in the Unknown with COVID-19

Matt Carvalho, Chief Investment Officer, Cardinal Point Wealth Management

If you’re anything like me, there have probably been a few instances over the last few months when you woke up thinking, “This must be a dream, right?” School closures, severe travel restrictions, working from home full time and wearing a mask anytime in public were dystopian concepts as recently as the start of the year.

 Financial markets have responded likewise, recording the fastest plunge from previous market highs to a bear market with losses on the S&P 500 passing 20% in a record 16 trading sessions. A typical peak to bear market normally takes somewhere closer to six to 12 months to develop. And those losses cascaded quickly, trading down to -34% from the previous high on February 19th to bottom for the quarter on March 23rd. Canadian securities represented by the S&P/TSX Composite followed a similar path, plummeting 37% from February levels. 

 Along the way, we saw a variety of reactions in different areas of the market. Smaller companies meaningfully underperformed as investors worried about their ability to weather a financial storm that may last months. Bonds with any type of credit risk also dramatically underperformed Government Treasury Bonds, which proved to be the only pristine area of the market. And finally, energy related stocks took a one two punch, not only due to falling demand as many individuals around the world curtailed their travel plans for work or vacation, but also as OPEC discussions crumbled and production quotas were sidelined. Increasing supply plus reduced demand led to a crash in the price of oil. 

 States and Provinces across North America have differed in their timing of travel restrictions and social distancing requirements, but their actions have started to create an unemployment impact order of magnitudes different than we have ever seen. Many individuals previously employed in areas like hotels, restaurants, or entertainment are now out of work as businesses are forced to shutter under this economic pandemic. In a best-case scenario, those individuals can be immediately hired back as economic activity begins to resume. However, there is no recent case study or historical example to draw from to determine just how probable or likely it is that an economy can flip the switch back to on. 

 The actions taken in terms of monetary and fiscal policy have occurred more aggressively than during the Global Financial Crisis in 2008 and certainly in a far more positive direction than in the Great Depression, when most government policies (such as trying to balance the budget) acted to worsen the economic situation.  

 Seemingly the stock market has started to look past the current situation and well into the future. As many countries were able to just initially start bending the curve of COVID-19, and governments across the world really started to ramp up their stimulus plans, the market overall realized that we may just yet get through this ordeal. Between March 24th and May 9th, stocks markets rallied dramatically, with the S&P/TSX Composite rocketing 34% and the S&P 500 rising 31%, both making up around 2/3 of the previous decline.

 This volatility both up and down has been shocking. Through April this year on the S&P 500 we’ve already seen 31 days of greater than a plus or minus 2% return day. That 31 days over four months is about the same number we saw over the previous four full years, including zero such days in all of 2017. This period of volatility is unlikely to subside in the near future. News of massive unemployment claims, drug trials that succeed or fail, and the latest projections for how soon economies will be able to resume some typical activities will all have meaningful impacts on trying to value securities. 

What Can You Do?

So, what can investors do in the meantime? One benefit of markets having recovered much of their recent losses is that it’s a great opportunity to reevaluate the overall asset allocation in your portfolio to ensure that it’s still in alignment with your timeline, goals, and aspirations. Perhaps after many years of positive market returns you’re ahead of schedule on your long-term goals and can afford to take a little bit of risk off the table. Or maybe you’ve had cash on the sidelines from a previous job or house sale that you’re looking to invest for the long-term. Whatever the case, we know markets are going to be volatile but can also provide opportunities for long-term growth. 

With our health at top of mind and a bit more time around the house, it is also a good opportunity to make sure your financial plans and estate planning are in order. Investors with business or assets on both sides of the U.S./Canada border face an extra level of complexity in normal times, and recently both Governments have passed several changes to previous systems which may impact you.

Below are some of the larger financial planning changes brought about by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the U.S. and Canada’s COVID019 Economic Response Plan:

·       Suspension of 2020 Required Minimum Distributions from U.S. retirement accounts and a 25% reduction in mandatory distributions from Canadian Registered Retirement Income Funds (RRIF)

·       Delay of tax filing requirements, with the initial date set by the IRS for July 15th and by the CRA of June 1st. In most cases, no interest or penalties will be imposed for tax due from 2019 filings. Any additional tax that might be due with your U.S. tax return will need to be paid at the same time as your U.S. return is due – July 15, 2020.  In Canada, although the return will need to be filed by June 1, 2020, any additional tax due can be deferred and will be required to be paid by September 1, 2020. 

·       Additional benefits for those on unemployment, needing mortgage relief, or small business assistance

 For all of the above, please consult with a financial advisor to help determine any impact to your own financial situation. 

What’s Next?

In the midst of any downturn, it’s hard sometimes to look beyond the valley we are currently in and see the eventual things that will lead us out. While the exact cause of each market decline is often meaningfully different, the feelings of fear, anxiety, and capitulation during big downturns are common. We can take some solace that those same feelings occurred in each of the previous downturns as shown on the chart below. As painful as each case was at the time, the market did recover and ended up hitting new highs at some point. 

The folly of trying to time the top or bottom of any market cycle has been well documented. This pandemic is unlikely to change those odds. The headline of a Bloomberg article summed up the sentiment of the early days of the second quarter thus far: Rallying Market Makes a Mockery of Every Effort to Forecast It. One expert is quoted as saying, “I don’t think there is any edge anybody can have in predicting… I have no model, I have no insight in what could turn the market from here. Forecasts are just all over the place—it’s just throwing a dart” 

 Change is going to occur, but it’s impossible at the moment to clearly see what it will look like. The new normal of social distancing may be around for a while, and that’s likely to have a ripple effect across the economy. What if better hand washing and more working from home lead to less flu and traffic fatalities in future years? Will companies discover they need less office space, and workers discover they want bigger houses in case events occur like this again? What if some portion of students find they are able to learn through online courses just as well as in person classes? Do they pursue online degrees, which may leave them with less debt upon graduation? Will working remotely make it harder to develop relationships and networks that can help careers? What if more people who were quickly laid off decide they want more control over their financial situation and start their own companies as a result? Will we see a rise in small businesses to replace those that didn’t make it? When will I feel safe to bring my kids back to Disneyland? 

 It’s difficult to predict how the economy will be shaped by this pandemic, but one thing we remain confident in is that companies will continue to innovate and look to supply the goods and services that people demand. And they will look for capital to help do so. 

 In the meantime, try to stay healthy.

Matthew Carvalho, CFA, CFP®

Chief Investment Officer

Cardinal Point Wealth Management, a Cross Border Financial Advisory Firm

Sources:  Bureau of Economic Analysis, Bureau of Labor Statistics, Bank of Canada, Capital Economics, Bloomberg Economic Calendar, U.S. Department of the Treasury, Morningstar Direct 2020, “Rallying Market Makes a Mockery of Every Effort to Forecast It” Bloomberg April 7, 2020, Dimensional Fund Advisors provided Bull & Bear Market chart.

 Indexes used: Canadian Stocks- S&P/TSX Composite TR, U.S. Stocks S&P 500 TR. Indexes are unmanaged baskets of securities that are not available for direct investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes, and different methods of accounting and financial reporting. Emerging markets involve additional risks, including, but not limited to, currency fluctuation, political instability, foreign taxes, and different methods of accounting and financial reporting. All investments involve risk, including the loss of principal and cannot be guaranteed against loss by a bank, custodian, or any other financial institution.

Managing a Canadian Workforce in a Pandemic

By Shane Todd and Justin P’ng

The COVID-19 pandemic continues to proliferate in Canada and around the world since its initial outbreak in late 2019. Its impact on economies and societies has been tremendous and unprecedented. While employers face serious legal challenges in managing their workforces during these disruptive times, such challenges are not necessarily insurmountable. With careful planning and execution, employers can navigate the legal risks posed by the pandemic and maintain a stable workforce to ensure the continuity of their business operations.  

These legal risks arise as a result of both the pandemic and the government response. Statistics Canada has calculated that the Canadian economy shrank by 9% and shed over one million jobs in March 2020. The Government of Canada has responded with billions of dollars in significant new financial relief programs to keep employers and employees afloat. Provincial governments have introduced their own financial relief measures and implemented new statutory leaves of absence and other legislative reforms to address new challenges in workforce planning. 

Public health measures have been similarly stark. Many provincial governments have ordered vast swathes of their economies to shutter physical workplaces and are actively enforcing social distancing requirements. The Government of Canada has enacted strict border controls and continues to impose quarantine measures on returning travellers. The world’s longest undefended border is now closed for all non-essential travel as Canada and the U.S. batten the hatches.

This article outlines the legal issues that Canadian employers should generally be prepared to deal with as part of their response plan. Employers with unionized workforces will also need to be mindful of specific obligations in their collective agreements, including any obligation to consult with union representatives. Statutory obligations to work with health and safety committees on certain health and safety initiatives may also apply.

The Risk to Canadian Workplaces

As with many common illnesses, the workplace is susceptible to the spread of COVID-19 because of the proximity between workers, and the frequency of contact with shared surfaces and objects. According to the Public Health Agency of Canada (PHAC), COVID-19 spreads through infected respiratory droplets being deposited on surfaces and objects, which another person may touch and then touch their mouth, eyes or nose before washing their hands. Someone can also catch the virus by being in close, prolonged personal contact with an infected person.[1] 

Employers should keep themselves informed by monitoring the daily situation reports from the World Health Organization and relying on the PHAC and their local or provincial public health agency for workplace health and safety guidance, the latest travel advisories, and current assessments on the public health risk for Canadians. 

Establishing a Communicable Illness Policy

Employers should develop a written policy setting out clear guidelines on how the employer handles communicable illnesses like COVID-19. A written policy that is communicated to the workforce and uniformly enforced will provide legitimacy to employer actions, guidance to employees and managers, and ensure consistency. This can help mitigate legal risks and assist in the defence of legal challenges to employer decisions. 

A communicable illness policy may include some of the following elements:

·               A requirement that employees who have or suspect that they have a communicable illness will seek appropriate medical treatment and follow the recommendations of their treating healthcare professional and any public health official;

·               A requirement that employees remain out of the workplace for the period of time recommended by healthcare or public health professionals, and a related right of the employer to enforce that requirement for ill employees and those who have been exposed to a communicable illness where such restriction is necessary to protect other employees;

·               An overview of the paid and unpaid leave entitlement available to employees affected by a communicable illness;

·               A confirmation that the employer may restrict business travel to areas subject to a Government of Canada Level 3 or 4 travel health notice (Level 3 warns Canadians to avoid non-essential travel, and Level 4 warns Canadians to avoid all travel), and a requirement for employees to notify their manager if they or someone with whom they reside plans to or has recently travelled to/from an area subject to such a notice;

·               A confirmation of the employer's commitment to take reasonable precautions and other specifically prescribed steps required by health and safety or other legislation to protect employees; and

·               A confirmation that the employer's decision about employees affected by a communicable illness will be based on the most current available medical or public health information, including information about transmission risk, and prognosis for recovery, among other things.

Some specific issues covered in a communicable illness policy are discussed in more detail below.

Employee Leave of Absence

Employers should reserve the right to restrict employees from attending work to prevent the spread of communicable illnesses. This may include requiring ill employees, or employees who have been exposed to certain communicable illnesses, to remain at home. These decisions should be made based on the most current available public health and medical information.

Employees who are ill with a communicable illness and unable to work should have access to paid sick leave benefits generally available to other employees. In many provinces, they now have access to unpaid, job protected leaves under employment standards legislation. If no paid sick leave entitlements are provided by the employer, sick time may be unpaid by the employer. Employees should be reminded of the possible availability of Employment Insurance sickness benefits or other government benefits -- including the new Canada Emergency Response Benefit.

Employees who have been exposed, but who are not ill, should be allowed to work remotely where possible. Where remote work is not possible, employers should obtain specific advice about whether leaves should be paid or unpaid to mitigate possible liability.

Employers should be mindful of employee privacy issues when communicating leave of absence decisions to other employees in the workplace. Information should be limited to confirming that an employee is out of the workplace and their expected return to work date, unless the employee expressly consents to sharing additional information. It may be appropriate in some cases to seek that consent and develop a message that the employee is comfortable sharing with coworkers and that is carefully vetted by the employer to ensure compliance with their legal obligations.

Medical Clearance

It is not likely reasonable to require confirmation that an employee tested negative for COVID-19 before returning them to the workplace whether from illness, leave or travel. The availability of testing through public health authorities for COVID-19 is generally limited, varies between provinces, and is currently restricted to cases meeting certain criteria. 

It is generally advisable that individuals with suspected or confirmed exposure to COVID-19, or who is otherwise experiencing symptoms, self-isolate for the 14-day incubation period as recognized by PHAC,[2], or longer as directed by a healthcare professional or public health official. Depending on the circumstances, and subject to healthcare or public health directions, if an employee is not experiencing symptoms after 14 days of self-isolation, it may be reasonable to return the employee to the workplace without a medical certificate. 

Business Continuity

In addition to a communicable illness policy, employers should develop a plan and procedures in case their community becomes seriously affected by COVID-19. The plan should include measures to keep the business running even if employees cannot come into the workplace. Indeed, many provinces have already ordered closures of non-essential businesses. 

Businesses should ensure that information technology systems are functioning to enable seamless working from home. This may require arranging for additional IT support staff to assist with employees experiencing any difficulty with remote access systems. A business continuity plan should also identify key employee groups and individuals that are necessary to keep the day-to-day business operating. Employers can then consider whether some of these key functions can be done by employees remotely and make arrangements accordingly. 

Businesses should also take advantage of new government programs to stabilize their financial situation and to assist employee who are not working. The Government of Canada has established the temporary Canada Emergency Wage Subsidy to help employers keep employees on payroll by covering 75% of their eligible remuneration paid up to $847 for up to 12 weeks retroactive to March 15, 2020. Workers who ceased working or are working reduced hours due to COVID-19 may be eligible to receive the Canada Emergency Response Benefit, a $2,000 monthly payment. Businesses can also shore up their finances with new loan and credit options under the Business Credit Availability Program, a $65-billion initiative that provides financial support options on generous terms to eligible enterprises. 

In summary

Fasken continues to monitor the pandemic and will provide timely updates at our COVID-19 Knowledge Centre. 

The assistance of Jessica Nolan in preparing this article is gratefully acknowledged.

Shane Todd is a partner with the Fasken Toronto office who advises employers on workplace issues and represents them in legal proceedings. He has won cases at trial and on motions, negotiated and enforced agreements and achieved great settlements for clients. Frequently retained in high-stakes litigation, Shane was recognized as a “Rising Star: Leading Lawyer under 40” by Lexpert in 2019.

Justin P’ng is an associate with the Fasken Toronto office who practices in the areas of labour, employment, and human rights law. He advises and represents unionized and non-unionized employers in the provincial and federal sector on matters related to employment standards and related litigation, grievance arbitration, labour relations and human rights.

[1] Public Health Agency of Canada. “Coronavirus disease (COVID-19): Prevention and risks” (9 April 2020), online.

[2] Public Health Agency of Canada. " Coronavirus disease (COVID-19): Symptoms and treatment” (7 April 2020), online

The Greater Good; Finding Light & Grace During Crisis

By: DeLinda Forsythe, founder and CEO, Innovative Commercial Environments 

We are navigating uncharted waters – that much is clear. During this crisis I’d like to offer some words of hope and suggest we shift our attention from the negative, frightening barrage of information that is enveloping us every moment of the day by considering the following:

·      This is not a permanent condition, it will pass.

·      After this passes, we will have learned A LOT. 

·      Our precious children appear to be the safest demographic; as a mother and grandmother this gives me incredible relief.

·      Companies need to take a hard look at every facet of their business to increase efficiency without losing their humanity in the process.

·      If furloughs, lay-offs or terminations are needed to save the company, do them swiftly to save the organization and always with the largest dose of compassion possible.

·      Fear and panic beget fear and panic – don’t be ‘that person’ that spreads hate at this time, please reconsider the effect of your words on social media, just for a bit of time. Ask yourself as you’re writing yet another unhelpful message, “does this serve humanity right now in a positive way?”

·      Display compassion, patience, understanding, especially if you are in disagreement with someone else’s opinion. Be a calming presence – LISTEN without having to be right. Just let that go for this brief snapshot in time.

·      Opportunities for growth, increased knowledge, more efficient supply chains shifted to US ally nations and back to the US will emerge – these are positive changes that have highlighted national vulnerabilities. 

·      Seek the good in this crisis, it’s there even if not immediately transparent.

·      Maslow’s hierarchy of needs will become more prevalent than ever as we fight disempowerment, ‘cave man brain’ and automatically switch to self-preservation. Be aware of this normal behavioral response and battle against it, allowing our greater angels to emerge.

·      Maintaining a sense of normalcy, positivity and calm is critical. Be the light, share your light.

·      Focusing on the needs of others has never been more significant, especially the most impacted. People are losing income, childcare resources, jobs and in many cases their lives or the lives of their loved ones. Many have a heightened mortality risk.

·      There is so much fear right now, avoid jumping on that bandwagon.

·      BE PRESENT which is going to become ever more difficult as many of the systems we have in place break down. Good will ultimately come from this shift as it historically always has.

·      Maintain, develop or seek faith in whatever Higher Power you embrace. Nothing is more helpful than having faith, meditation, mindfulness, spirituality, reading scripture. Whatever path your faith journey takes you on, lean in on that during this moment of crisis.

·      Watch Mr. Rogers – what a pitch perfect movie to enjoy during this time! Mr. Rogers offered us a universal message to constructively channel our anger and seek ways to lift each other up.

·      Start your COVID-19 daily journal, you’ll learn so much about your character as you read your journal when this has passed, probably not all positive. Crisis often reveals character flaws, providing an opportunity for growth.

·      Every single American will be universally affected by this pandemic: how do we each individually lift each other up? If your finances can sustain this, perhaps you can pre-pay for future services provided by a service provider you regularly utilize such as your house keeper, childcare provider, masseuse, hair stylist, chiropractor, etc. and continue to provide them a much-needed income stream today.

·      Stay in touch with your elderly neighbors and if you have an extra serving for a meal you’re already preparing, be their Door Dasher and leave it for them at their front door! (Use gloves.)

When you think of others, it helps take the focus off of you and trust me, there are probably a lot of people suffering and impacted much more than you are.

The COVID-19 pandemic has created an unprecedented moment for our company to align, foster and promote generational leadership which I am capturing in my first book detailing how we are developing generational leaders. We are capturing this present moment in time from a business perspective. Chapter 7: Live the Entrepreneurial Spirit asks our team to espouse an entrepreneurial mindset which includes the following values:

·      Care about each other. Care to the point of loving each other and always with the perspective that we want to see everyone reach their full potential.

·      Realize the importance of striving for excellence consistently both in our personal and business lives. Set high standards for yourself and each other.

·      We face challenges, mistakes, opportunities, with the same passion. We face them all head on, not shirking responsibility.

·      We take full ownership of our lives and our decisions. We seek reasons to increase our understanding not to provide excuses.

·      We are dreamers, we have our eyes on the future so we seek to find better solutions, processes, procedures, ways of thinking, working - always with the idea of improving our business and personal lives. 

·      We embrace everyone’s ideas, realizing that discord often leads to more wholistic, thoughtful and mutually beneficial resolutions.

·      We know each other as people. We know what brings each other happiness, sadness, what evokes fear, what opens each other up or shuts someone down. We know our own and each other’s limitations and talents and at the end of the day, we strive to either encourage change if needed, embrace people for who they are or separate.

·      We have honest conversations and ask lots of open-ended questions, request reflection, seek clarity. All for the personal and continual growth of ourselves and each other.

·      We ask that our co-workers be passionately committed to the success of others and passionately desire to share their success with each other in word, deed and action. Lifting each other up as much as possible especially at this time.

·      Most significantly, we are our ‘brother’s keeper’, we each will do whatever we can to keep everyone employed. This owner mindset is what needs to be everyone’s mindset; we are all equally responsible to keep each other employed as we strive for a collective goal of zero lay-offs.

Every single American will be universally affected by this pandemic: how do we each individually lift each other up? Stay in close contact with each other, especially those you lead by starting a one-on-one text conversation with them so they know how valuable they are to the organization and how important their personal journey is to you as their leader.

I hope this offers perspective as well as actionable steps as we all endeavor to navigate this crisis together, as a unified, family-centric community. 

COVID-19 Online Resources

Certainly nothing is more important currently than understanding how to navigate through the pandemic as safely and effectively as possible. With this in mind, we reached out to our corporate and executive members to ask about information they are publishing and highlighting for their clients.

This issue is a compilation of various articles, videos, content links, online knowledge centers and even a special webinar expressly for our community. The diversity of content is a reflection of our cross-sector community. We wish to thank our members who were able to respond for sharing these resources with our readers. 

AVISON YOUNG COMMERCIAL REAL ESTATE
www.avisonyoung.us
Resource: Commentary and Resource Links

What happens if I am unable to pay my rent? How do I deal with tenants who miss their rent payment? We have mortgage payments due. What are our options? What have others been able to negotiate? These are the questions we are being asked daily as many organizations try to navigate the impacts of  Covid-19.
 
Commercial real estate directly or indirectly affects all of our lives. It is the place where we go to work, where we buy goods and services, where we obtain medical care, and the list goes on and on. It is based upon people coming physically together which is the exact opposite of what we all need to do today. This separation has had a traumatic effect on almost all owners and occupiers of commercial real estate.
 
As a result, commercial tenants throughout the country are going out of business, temporarily closing, limiting operations, laying-off employees and suffering declining revenues. Even “essential” companies that are largely exempt from governmental restrictions are experiencing declines in business.  

So far, politicians have instituted some moratoriums on evictions related to the COVID-19 pandemic, but at some time in the future, the money will be due following weeks or months with reduced or no revenue.
 
There is help available in the form of loans, grants and other benefits available to both large and small businesses for working capital, rent and mortgage payments, payroll and other qualified purposes under recently approved federal, state and local laws, including The Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

At Avison Young, we have been advising all parties to exercise patience and restraint as we work with commercial landlords, lenders and tenants evaluate their options and come up with real solutions.  In the long term, the changed behaviors will have likely changed the way consumers and businesses use and interact with real estate. It is time to plan for your future needs and adapt.
 
While the landscape is changing daily, it is important to distill and understand both the impacts and resources available to your business as you navigate this uncertain market. We are available help and strongly encourage you to reach out to Avison Young or your trusted advisor.
  
Arlyn Stoik
Principal
arlyn.stoik@avisonyoung.com

Chris Cooper
Principal & Managing Director Southern California
chris.cooper@avisonyoung.com
 
 
Avison Young

Avison Young RESOURCE CENTRE - Covid-19
 
US Small Business Administration 
 

COVID-19 SBA Guidance & Loan Resources
https://www.sba.gov/funding-programs/loans/covid-19-relief-options
 
COVID-19 Economic Injury Disaster Loan Application
https://covid19relief.sba.gov/#/
 
 
US Department of the Treasury
 
CARES Act Information
https://home.treasury.gov/policy-issues/top-priorities/cares-act
 
Paycheck Protection Program Information
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
 
 
US Department of Labor Occupational Safety and Health Administration
 
Guidelines for Preparing the Workplace for COVID-19
https://www.osha.gov/Publications/OSHA3990.pdf

BUSINESS STRATEGIES GROUP OF SOUTHERN CALIFORNIA
http://www.bsg-advisors.com
Resource: Resource guides

The Business Strategies Group of Southern California has prepared reference documents on the Coronavirus Aid, Relief and Economic Security (CARES) Act to help businesses understand what kinds of assistance are available. These include a summary of key provisions within the CARES Act and a FAQ for small business owners. These documents are available free of charge upon request.  

We believe it is important you are aware of the potential sources of economic relief as you make critical decisions that may impact your retirement future, as well as your employees.

While dipping into retirement accounts may seem to be the path of least resistance to “make ends meet,” there are other resources available that can ease the financial burdens of today so current retirement savings you and your employees have worked so diligently to accumulate can be preserved for their intended purpose — a dignified retirement. We certainly don’t have all the answers, but we are here to provide you with timely and relevant information.

Please contact The Business Strategies Group of Southern California.

M. Michael Rooney, CFP®, ChFC, CLU
Founder and Managing Partner (Orange County)
michael.rooney@axa-advisors.com

Jamie Smith, JD 
Managing Partner (San Diego)
jamie.smith@axa-advisors.com

CARDINAL POINT WEALTH MANAGEMENT
www.cardinalpointwealth.com
Resource: Articles

Rallying Market Makes a Mockery of Every Effort to Forecast It
https://www.bloomberg.com/news/articles/2020-04-07/wall-street-s-more-divided-than-ever-as-forecasts-run-the-gamut

DFA - Perspective on Recent Market Volatility 
https://www.mydimensional.com/video/26997/perspective-on-recent-market-volatility
 
What happens to the stock market after a recession?
https://www.forbes.com/sites/kristinmckenna/2020/04/03/what-happens-to-the-stock-market-after-a-recession/#2345d99f2afb
 
How many recessions you’ve actually lived through and what happened in every one
https://www.cnbc.com/2020/04/09/what-happened-in-every-us-recession-since-the-great-depression.html
 
Contains a lot of helpful info including financial and economic relief
https://www.canada.ca/en/public-health/services/diseases/coronavirus-disease-covid-19.html
 
Contains a lot of helpful info including financial and economic relief
https://www.usa.gov/coronavirus

EDWARDS GLOBAL SERVICES
www.edwardsglobal.com
Resource: Newsletter

In these times, while we are all rightfully focused on our family, employees, franchisees and licensees, for those of us who normally work internationally it is also important to keep up to date on the world today.   

EGS is monitoring 22 countries, 25 daily international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our Team on the ground covers 43 countries and provides us with updates about what is happening in their countries.

This newsletter will be published every other Monday. Our goal is to briefly keep the reader up to date on the economic and business situation in key trading countries. Please do not hesitate to send us your input and perspectives so that we can publish a balanced view about the world every other Monday.

While we have never have we seen a disruption like the one caused by the Coronavirus, I am encouraged to hear from companies that are already planning for reopening their businesses worldwide.

For those interested in subscribing to the new Edwards Global Services newsletter on global trends, please email William (Bill) Edwards, CEO at bedwards@edwardsglobal.com.

FINEMAN WEST & COMPANY
www.fwllp.com
Resource: Articles

Dear Clients and Friends,
 
We all know and recognize that our Country is currently in crisis-mode, and the impact of this crisis is devastating, especially on small businesses.  In their effort to mitigate the collapse of our economy, the US Congress passed the CARES Act and the President signed it into law on March 27, 2020.  Summarized below are helpful articles for individual taxpayers and small business owners: 
 
News & Tips for Individual Taxpayers
Below is a helpful summary of some of the key elements of the tax changes for individuals due to COVID-19.  https://fwllp.com/updates-for-individual-taxpayers/
 
Increase Cash Flow Now Despite COVID-19
At Fineman West, we understand that “cash is king” because even if you had a record-breaking year in net profits with a healthy balance sheet at year end, it all means nothing if you do not have the cashflow today to pay your suppliers, compensate your employees, and maintain credibility with your lenders. Learn more of The Cares Act and how can you increase your cash flow at https://fwllp.com/increase-cash-flow-now-despite-covid-19/
 
Important Update on the Paycheck Protection Program Loan
CARES Act has many items, but there are some very specific programs designed to stop small businesses from failing, read more at https://fwllp.com/important-update-on-the-paycheck-protection-program-loan/
 
Sincerely, 
The Fineman West & Company Team 
 

PROVINCE OF ONTARIO
www.ontario.ca/page/how-your-organization-can-help-fight-coronavirus
Resource: Online Resource Center

Businesses interested in contributing solutions to the Ontario government response to COVID-19 can submit a proposal on the Ontario Together website. The website identifies the province’s supply challenges, and also solicits ideas and advice from the business community for innovative ideas/solutions on how the government and business can work together. Companies can submit a proposal for the government to procure required goods and services, and share creative solutions quickly. The link to the Ontario Together portal is here.

QA CONSULTANTS
www.qaconsultants.com
Resource: e-Guide 

QA Consultant’s Free e-Guide:
https://info.qaconsultants.com/en/qac_free_security_guide_wfh

Expanding Corporate Security to Work from Home
Now that everyone is working from home, you have to ask yourself, is your home network safe? Are your devices safe to access your work platforms? 

QA Consultant’s security expert, Steve McGeown, narrates this excellent e-Guide to securing your work-from-home technology environment. 

We've all been doing this "Work at Home" thing for several weeks now. Some may have thrived on it; many others are just trying to survive on a sudden shift to a new way of working. It is a new reality that came upon many of us very fast, often with little or no notice or training.

Now that we have gotten ourselves barely up and functional, it is now time for us to look inward. The infrastructure we are on is not corporate, it is fragile and support can be fleeting. Applications such as videoconferencing and filesharing are being regularly misconfigured and this misuse can lead to serious personal and organizational exposures. Advanced spear-phishing will have plenty of ill-prepared targets if the users are not properly prepared for it.

This video is designed with the general Work at Home user in mind as the audience. By focusing on just 4 simple concepts, the user is directed into taking corrective and meaningful action on an 80/20 rule basis, that is, what minimal actions should we take, what minimal learnings should we acquire so that Work at Home continues to Work for them and their organizations.  This PSA covers everything from: Zoom bombing, Zoom security, COVID-19 security, home network security, attack surface, and more security guidance.  

RSM US LLP
www.rsm.us
Resource: Online Resource Center

COVID-19 is impacting all of us. As individuals, communities, governments and businesses act quickly to reduce the spread of the disease, we find ourselves operating in a new world.
 
Our COVID-19 resource center was established to provide insights and information on business continuity planning, tax and regulatory guidance, industry impact and the overall economy. We also launched a weekly webcast series last week to help address important business topics. You can register for upcoming webcasts here and also listen to recordings of past sessions.
 
In addition to these resources, RSM offers a wide array of timely content, insights and resources designed to guide and inform middle market business leaders. You can customize the RSM content that comes to your inbox so you can stay up to date on the topics that matter most to you and your business. 
 
Here are some links where you can access information and set your preferences:
 
RSM preference center
Tell us what topics and industries matter to you, and we’ll recommend valuable insights that align with your interests and business goals.
 
Manage your subscriptions
Gain timely insights on your industry and business issues. Check the box to subscribe to the publications that interest you.
 
Middle market economic insights
·       The Real Economy – A monthly publication for middle market business leaders
·       The Real Economy blog – Real-time updates and insights from our industry experts and economists
·       RSM US Middle Market Business Index (MMBI) - To increase our ability to track the impact of COVID-19 on the real economy, we will be increasing the frequency of the MMBI from quarterly to monthly for the next several months

SNELL & WILMER LLP
www.swlaw.com
Resource: Articles

New Federal Reserve Main Street Loans for Businesses:  https://www.swlaw.com/publications/legal-alerts/2746
 
Global Tax Implications of COVID-19 on Stranded Cross-Border Workers and Multinational Companies  https://www.swlaw.com/publications/legal-alerts/2745

TROWBRIDGE PROFESSIONAL CORPORATION
www.trowbridge.ca
Resource: Articles

Trowbridge Professional Corporation is a Canadian accounting firm that specializes in international tax services. We provide a wide range of corporate and expatriate tax services to Canadian and foreign-based individuals and corporations in a variety of industries. All of our professionals have in-depth tax experience and stay informed on current developments in tax legislation and the potential impact on our clients. Our corporate accounting, bookkeeping and payroll services team has many years of industry experience, helping global companies expand into new markets in Canada and helping companies in Canada grow with financial confidence.

 https://www.trowbridge.ca/articles

UNSTOPPABLE CONVERSATIONS 
www.unstoppableconversations.com
Resource: Webinar

This Is Not Your Every-Day Average Free Webinar For Business Leaders. 
 
LEADING IN UNCERTAINTY: A BREAKTHROUGH MODEL  
 
There are a lot of free webinars out there right now to support you in dealing with the current challenges of your organization, all with specific solutions and advice. This is not that.  This webinar gives you a distinct way of approaching the unknown so that even in the face of the uncertainty you will be able to take effective action.  
 
In this 2-hour breakthrough-thinking workshop, you will:
 
·      Discover a unique way of seeing your current business challenges and leave with new and effective options for navigating them. 
 
This webinar is by invitation only and requires registering in advance. 
 
Wednesday, April 22, 2020 
 
11:00AM - 1:00PM Pacific Time (US and Canada) 
https://zoom.us/meeting/register/tZQqf-GuqD8tta2ZzfB-MkF31zBwiqP79Q   
 
After registering, you will receive a confirmation email containing information about joining the meeting.

WILMINGTON TRUST
www.wilmingtontrust.com
Resource: Online Library

Dear MAPLE members and friends,
 
Wilmington Trust Company was established in 1903 by members of the duPont family to provide quality banking and trust services in a new age of prosperity. Today, we offer more than a century of experience assisting some of the world’s most successful families to achieve their strategic objectives, address their issues and create a legacy.
 
In light of the current pandemic, we are focused on offering clients, prospects and other advisors the latest thought leadership and guidance around the impact of the Coronavirus. It is imperative that we support those who are looking for us for ideas and updates in what is a rapidly moving landscape. Our online library is the ideal place to access all this pertinent and important information.

https://library.wilmingtontrust.com/wealth-planning
 
Please feel free to reach out to me with comments or questions and I wish each of you continued health and steadfast resolve in the coming days.

Roberta E. Ruddy, TEP
Senior Wealth Advisor
rruddy@wilmingtontrust.com

Share the Vision: Creating a Bright Future in Downtown Los Angeles with The California Market Center

Visualize the Future
Envision a vibrant business landscape in downtown Los Angeles where technology, entertainment, and fashion industries converge as a destination for commerce, creativity and community within the perimeter of one full, city block.

The future California Market Center (CMC) is DTLA’s iconic 1.8 million square foot complex currently being renovated by Brookfield Properties. Relaunching the summer of 2021 as an elevated, mixed-use creative campus, CMC is being reinvented to appeal to the rising influx of influential companies migrating downtown.
 
Work, Thrive & Play
Today’s DTLA is more than just a 9-to-5 place to work. It is a globally influential Los Angeles hotspot with touchpoints in the entertainment, arts, and culinary worlds, attracting over 500,000 visitors daily. From Lakers games and superstar headliners at the Orpheum to exclusive openings at the Museum of Contemporary Art, downtown commuters, residents, and visitors have their choice of highly anticipated L.A. events to attend on any given day.

CMC’s neighborhood is studded with best of LA restaurants, ideal for lunch and dinner meet-ups with clients to impress. Helmed by celebrity chefs and industry-esteemed newcomers, current spots at the top of everyone’s lists include Pilot, Sibling Rival, Bottega Louie, Faith & Flower, Preux & Proper, Broken Spanish, Best Girl, and Terroni, to name a few.

LA’s most buzzed-about boutique hotels are walking distance from CMC, or just a brief Uber ride away. In addition to the famed Ace Hotel and the globally-distinguished Hoxton, stays at the influencer-favored Tuck Hotel, the landmark Hotel Figueroa, or the sophisticated Hotel Indigo are a must. Exclusive partnerships with these hotels offer CMC visitors significant discounts to boot.

Surrounding CMC are some of downtown’s newest places to live. With over 58,000 residents living in DTLA, the concentration of locals living in and visiting the fashion district and its businesses creates a dynamic community of professionals, entrepreneurs, and creatives in a compact urban radius.

The new CMC will be a stimulating microcosm of modern downtown LA, flourishing at ground-level with acclaimed restaurants and bars, top-tier retailers, boutique fitness studios, and arts & cultural events curated for the rich tapestry of Angelenos and DTLA visitors.

It will be an uncommon place to work, thrive and play.
 
Evolution
At one end of the campus, CMC’s enduring fashion heritage takes center stage in its newly renovated Building C. The sleek, contemporary environment is the exclusive new home for a carefully curated selection of fashion showrooms and events. Currently, the building hosts many of the top brands representing the cross-section of fashion’s diverse markets, including Puma, Paige Denim, Pantone, FILA, Timex, Ella Moss, esSkateboarding, Jessica Simpson, and Nine West, to name just a few.

In 2021, CMC’s revitalized campus will contain 1.2 million square feet of Class A creative office space in Buildings A & B. These new, creative office buildings have been designed to appeal to innovative companies leading the technology, entertainment, media, food and beverage industries.

Buildings A & B will featuring:

• 12-foot high ceilings

• 24/7 building access & security

• Multiple elevator banks for stacking vertically & horizontally

• Secure underground parking

• Concrete flooring

• Indoor/outdoor space, including sky bridges and rooftop terrace

Legacy

CMC has a proud history in the global fashion industry and has been the pulse of the DTLA fashion intersection for more than 50 years. Built in 1962 to house the first wholesale fashion marketplace west of the Mississippi, CMC quickly became the primary center for fashion business in Los Angeles.

Over the years, CMC has drawn thousands of notable brands and retailers from around the globe, and has helped propel the success of well-known designers and manufacturers with the myriad networks, programs, resources, and events CMC and its community are known for. Today, CMC stands as the heartbeat of the L.A.’s renowned fashion industry, as well as a growing center for a wide range of creative businesses.

The new CMC will build on this incredible legacy of passion and collaboration as it welcomes the next century’s creative visionaries and new industries.
 
Join Us in Creating This Bright New Future  
CMC is where history meets innovation. This icon of the West Coast fashion industry is evolving into L.A.’s new hub for visionary leaders and forward-thinking entrepreneurs influencing the global business and creative communities.

Imagine an aesthetically elevated and creative business environment that inspires ingenuity…a place where diverse industries intersect, cross-pollinate, and spring forth unexpected opportunities…a stimulating and experiential place where the convergence of commerce, creativity and events enable serendipitous connections and nurturing of relationships.  

CMC will be the place where this vision manifests reality and ideas take space. Learn more about the new CMC by visiting:  www.cmcdtla.com

Winning with Content

Winning with Content 

Author: Chris Grubisa, President and CEO, Chrilleks

Chrilleks is a sport branding media agency. We make content better for every athletic brand and athlete so they can focus on what they do best: Winning. Chrilleks was co-founded by myself, Chris Grubisa, and Aleksandra Lason in 2011. The name Chrilleks originated from our names “Chri” for Chris and “lleks” for Aleks. Chrilleks currently operates from Canada in the Greater Toronto area and in Long Beach, California.

Finding our home in SoCal

When we first arrived in Los Angeles in 2016 our very first office was at the co-working space, WeWork, in the Gas Tower. We quickly ended up moving from Gas Tower to the WeWork in Culver City also known as Silicon Beach. It was an incredible fit and we truly enjoyed the area and talent, but it was time to move on from co-working and into our own space as the company began to grow. We found a space in Huntington Beach for 2 years, but kept missing the city element.

When we began exploring other options, Long Beach made sense, it’s the middle marker for LA County and Orange County, it has its own airport (a bonus for us who travel a ton!), and a downtown that reminded us of a Vancouver and Toronto hybrid - two places we hold close to our hearts. Not to mention how much easier it has been to grow our internal team; now receiving talent from both LA and the Orange County networks.

We’ve been operating out of Long Beach now for a year and absolutely love it. The city has been extremely supportive of our business from day one and offers numerous complimentary programs through the Downtown Long Beach Alliance, such as the P.A.C.E Program and educational workshops such as “How To Survive: Assembly Bill 5 and Independent Contractors”.

It’s the first time that Chrilleks has been so heavily involved with the city it’s growing in because the city itself makes it accessible, easy and valuable in many opportunities. From April 2019 to December 2019, we’ve tripled our business and we strongly believe that has a lot to do with our new home.

Our mission

Chrilleks’ mission is to uplift and share the amazing stories behind each athlete and brand to help amplify their message through unique creative executions.

Athletes are remarkable human beings who continuously put themselves on the line for the world to watch. Their ability to perform in movement is just as important as their mental capabilities when striving for gold. Performance and mental strength together, as well as the community around them, also matters.

Many factors have to align. The late night practices with coaching staff, families who sacrifice their schedules - we believe all those efforts compound over time for everyone to win that gold. The amount of work invested behind the medal fascinates us and we are here to share that. There is much more to it than game night. When the stage lights get turned on - that’s when you see who’s invested the true work.

We believe that our team at Chrilleks are athletes in our own way. Our team constantly thinks strategy; we practice daily and take action. The projects we work on are our game nights. Our support staff in legal, our accounting teams, our crews, and internal teams, allow us to perform to the best of our ability for all of us to win. It’s a unique way of operating, and the energy is just right.

We’re focusing our content expertise on major league sports from the NBA, NFL, MLB, and, of course, the NHL with our Canadian roots. Additionally, we’re expanding into other sports such as running, boxing, tennis, and racing.

Ryan Garcia and Gymshark

We are about shaking things up at Chrilleks. Our approach is different. A campaign video Chrilleks produced for Gymshark’s boxing athlete, Ryan Garcia, has 4.1 Million views on Instagram, and 400K views on YouTube. You can view the video here: https://www.youtube.com/watch?v=1_b6YHfQssA

The reason Gymshark x Ryan Garcia video performed with positive outreach has a lot to do with Ryan’s authentic influence. The title of the video is “The Fastest Hands in Boxing” and that couldn't be more true. His success on social media targeted a proper generation, Generation Z. He’s leveraged his social influence to promote his boxing career along with brand partnerships.

An environment uniquely captured also plays into the heavy hitting numbers. A lot of structured thinking is devoted to these powerhouse videos. This is the first time Ryan’s content was at the professional caliber. It made it very clear that Ryan is now in the professional league.

Sharing an athlete's story - it's personal

Athletes perform to the best of their ability in and around their game. Our team looks at that as motivation to perform at their level.

How athletes lead their personal life reflect how they perform and all of it accounts for their success. What happens off the court is just as special. Showcasing that side through content opens the opportunity to make a deeper impact.

The way people consume content has changed. Fans want to be related to, not be sold to. Having that backstory showcased in a proper way develops more core fans and allows fans to invest more into the player, team, and city. Their story resonates deeper. Working with athletes comes branding, on the personal side, as well as sponsorship.

Take for example Under Armour’s Jordan Speith. Jordan’s talents along with his personality provided the opportunity to merge athlete + brand making it a very unique experience. Fellow athletes can learn from this and implicate into their career. https://www.chrilleks.com/under-armour-golf 

This is a great case study in that Jordan Speith, a 26 year old American professional golfer on the PGA Tour and former world number one in the Official World Golf Ranking, has a sponsor like Under Armour who supports him only through brand and athlete content but doesn’t support his personal channels.

Jordan Spieth barely uses his social media to leverage his own brand/personality. His popularity and growth is only based off his sponsors and his game performance. But what’s his game plan?

This is why Chrilleks is investing a ton of time to educate and work with athletes directly so they don’t fall short in places like social media. Right now, Jordan is allowing his sponsors to build him and his career outlook, but we want to know who Jordan Spieth is off the golf course. That Jordan is more valuable to any brand but more importantly, to his followers/supporters.

Since 2016, Chrilleks has been working with world-class brands. To name a few, RedBull, Gymshark, Under Armour, Canadian Tire, DC Shoes, and Mountain Dew. It’s been fascinating to watch how brands can indirectly share their message with their athlete, making a bigger splash.

Gymshark, a global fitness brand recognized our perspective in 2018. Since then Chrilleks has been building content for their athletes and expanding into campaigns and product releases impacting millions of fans on both the brand and athlete spectrum.

Working in Canada and the U.S. 

Managing a business between Canada and the US has its challenges. Both markets are very different and we continue to do appropriate research to see if we can find a common ground.

Although the traction that we pick up in the US has become the perfect case study for our Canadian clients, it does seem however that in the last year the Canadian market has been picking up on trends much ahead of the US.

It’s a very unique experience when pivoting our company to sport. Toronto is well known for the NHL network and Los Angeles more on the basketball / lifestyle side. With the Toronto Raptors recent win in the championships the two worlds begin to blend. There are situations like that where we often see similarities. We hope that the pivot into sports content will blur these lines as sport is its own international language.

This is why MAPLE Business Council is the perfect community for an organization like us. MAPLE is a collective of our two best assets: Canada and USA, and more specifically Toronto and Los Angeles.

For more information on Chrilleks, please visit www.chrilleks.com.