1. Diversification From The Ground Up

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

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

4. 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

5. 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

6. 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

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

8. 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

9. 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.

10. 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

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

12. 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

13. Three Stones Exploration New Markets – More Clients

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

15. 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

16. 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

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

18. 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

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

20. 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.

21. Thanks for your time – may