Diversification From The Ground Up

Diversification – Evolution not Revolution Intro – McSweeney associate – career in Economic Development & Business Diversification Art Lawson - 007 Agent of Change

Change Can be Disruptive Traditionally Big Fish eat the small ones – consolidation Now it’s fast and adaptable fish who eat the big ones

Mega Projects – Hard to Influence At a macro level – Alberta is trying to add value to oil and Ag. Products Big projects like Redwater - multi-billion $ - lucky if you get one but little or no ability to influence

Medicinal/ Recreational Marijuana Almost every community is chasing Marihuana Grow Ops – concern is market size and risk. Many will fail or get eaten in consolidation

Not that size matters….. Big projects are great but smaller communities can benefit from small or mid-sized companies adding a few jobs – important in smaller economies

Strategies For Success…. Diversification comes in 5 possible ways -products Locations New clients New markets / exporting - More clients in more markets

Royal Elk – New Products & Markets Started in 80’s - exported antlers to China – meat products in Canada Stopped by import bans – bio-security reasons Less emphasis on meat products – more profit in medicinal products Now locally processing and marketing a variety of traditional Chinese medicine products in North America - Both retail relationships and direct / on-line sales

Two Sergeants Brewery New Markets & Customers Keven & Keith – Army buddies – Kevin wanted a brewery – Keith wanted a pub Original pub proved marginally profitable - Market beer across Alberta – market swag in Europe – glasses, t-Shirts etc.

Sangudo Opportunities Co-Op Sangudo Meats – New Customers Started by coo- investment in abattoir – fresh meat - Purchased the business and expanded into value-added products - smoked meat, sausages, ethnic meat products

Academy Fabricators New Locations & Services 2016 – joint venture – added locations 2017 – added installation business and expanded markets into BC and Sask.

Alberta Newsprint New Products / New Customers - Champions of diversification – export most output, high value paper, added trans-loading facility and power plant production bio-based by-products

Three Stones Exploration New Markets – More Clients

Value of Local Roots Focus on businesses you have – small local ownership – not-likely to leave

75% of Your Community’s Growth Will Come From Existing Businesses Value of BR&E strategy to help identify opportunities – companies expanding and / or diversifying

Evolution is Normal Support a culture of adapting to change – change will take place with or without you. Your value as an EDO is to support change – help it happen faster – better- maybe bigger

Your Role As EDO – Ready For Change As a EDO you should have a toolkit ready for whatever comes

Key Sector Profiles Focus on key sectors – if growth is coming from existing businesses then you can anticipate much of it will occur for your leading sectors - Understand the dynamics – what’s driving change - challenges

Networking – Build Connections You need networks – local businesses – regional partners – provincial and federal contacts for programs, regulations – technical assistance

Communicate Successes Celebrate success – be known for being involved – the go-to person – profile local leaders – give credit – more likely to be part of a business-friendly environment if not just regulator or gate-keeper.

Thanks for your time – may