The Vancouver Business Thread

[SpongeG]

Boeing gives $1.25 million to launch new tech institute

Vancouver Institute for Visual Analytics brings together industry, SFU, UBC

By Gillian Shaw, Vancouver Sun

The Vancouver Institute for Visual Analytics, bringing researchers from the University of B.C. and Simon Fraser University together in collaboration with industry partners, launched Monday with a $1.25-million investment from the Boeing Co.

The creation of the institute here helps propel Vancouver to the forefront of innovation in visual analytics, an area that combines visualization with analysis techniques to turn the massive and growing amounts of data being produced into knowledge that can be used to answer questions and solve problems.

"There is a great opportunity for bringing people together not only across universities but with companies," said Fred Popowich, director of the new institute that will be based at SFU but includes researchers from both universities. "We all know how much data is out there and it is growing quickly.

"People develop tools to deal with this data. It is also knowledge, you have to understand the data and understand the solution -there is data at the bottom and you want to get to solutions at the top -it can't just come from companies alone and it can't come from universities alone.

"The Institute is a good environment to bring the two together."

At the heart of the work is figuring out how to transform data into actionable knowledge; the Institute will provide a place for industry partners to collaborate with the academic world.

As an example, Popowich points to electronic financial transactions.

"How do you determine what is strange behaviour on your credit card," he said. "We need computer enhancement of the data so the computer can do some of that initial analysis and bring things to our attention."

Visual analytics can help create solutions in a number of areas, from banking to health care, transportation, public safety and others. People can use their computers to work visually with data, transforming it into something that can be understood and acted upon.

In 2008, Boeing made an initial investment of $1.4 million for visual analytics research and the current investment will provide a core sustainable base for the research institute, said Tracy London, director, Advancement Office of the Dean, Faculty of Applied Sciences at Simon Fraser University.

Popowich, who received his PhD in cognitive science from the University of Edinburgh, is a faculty member of the School of Computing Science at SFU and associate dean of the Faculty of Applied Sciences.

...

http://www.vancouversun.com/business...707/story.html

[SpongeG]

hopefully they don't let happen with what happenned to Petcetera

Bosley's will expand with new owner

B.C. pet food retailer adds financial muscle and promises to maintain focus on service, specialty brands

By Scott Simpson, Vancouver Sun

The former president of pet supply retailer Bosley's is promising a transition that will be invisible to both shoppers and their animal companions after the independent British Columbia company was sold this week.

Ontario-based Pet Valu Canada has acquired Bosley's and will maintain the 23-store chain's traditional focus on specialty pet food brands, related supplies and customer service.

Bosley's ex-president Ken Almond gave up his title this week, but anticipates staying on through the end of the year as general manager.

Employees have been notified, and reassured that their jobs are safe, Almond said.

He's giving customers a similar message.

"What's going to happen from this day forward is that Bosley's is going to run as a completely autonomous business unit," Almond said Friday in a telephone interview from company headquarters in Richmond.

"Yes, Pet Valu Canada will own us, but we are going to run as a separate company in British Columbia. We are going to retain the Bosley's name, of course, because we have very good branding and very high name recognition, and that's not going to change as well."

Pet Valu has 296 corporate and franchised stores in Ontario and Manitoba, and is preparing to open its first Alberta store in Calgary next month.

In a news release, Pet Valu CEO Tom McNeely said Bosley's shared his company's "commitment to providing its customers with the highest quality pet products and unmatched customer service."

Both companies are privately owned, and financial details are not available.

"The reason that I have chosen to do that is partly personal. I'm now 65, and my partners are all about the same age as I am," Almond said. "At some point you've got to go to the next phase in your lives."

Almond described the deal as mutually beneficial, giving Pet Valu a foothold in B.C. and giving his company the financial means to realize a longtime goal of expanding outside of the Lower Mainland-Vancouver Island area where all of its stores are located.

Almond and his partners believed they could expand provincewide, but didn't have the financial resources to carry through.

"It was me and a bunch of my friends. We acquired Bosley's eight years ago and have worked really hard over that time frame to bring it where it is today.

"But to go to the next step takes a lot more than we were prepared to risk, frankly."

He said Pet Value "had a great desire to expand their presence in Western Canada and I believed that we would be their best opportunity to establish a significant presence in the West and particularly in British Columbia.

"I hear from people all the time -- 'When are you coming to Kelowna?' or Prince George, or Courtenay, or wherever. This now gives Bosley's the opportunity to do that."

...

http://www.vancouversun.com/business...550/story.html

[SpongeG]

Sugoi Sets Up in New Headquarters

BURNABY, B.C. (BRAIN)—Sugoi has moved into a new 70,000 square foot office outside Vancouver, British Columbia, that’s designed to accommodate the company’s planned growth in its custom apparel business.

The new headquarters is a substantial upgrade from the old bowling alley that Sugoi called home for the past 15 years, said Scott Parr, vice president of sales for Sugoi.

“It sounds cool and quaint and it was kind of fun for a while, but it was never meant to be a long-term plan for the company,” Parr said.

The new facility combines Sugoi’s offices and its Canadian warehouse. Plans for the upgrade were put into place in 2008 after Dorel Industries purchased the company and tapped Sugoi to serve as the headquarters for its apparel and footwear group.

Along with the move, Dorel also invested in new hardware to support Sugoi’s growing custom apparel business including new digital equipment and sublimation machines to replace three aging screen printing presses.

“Virtually all of the equipment used to produce all of the custom apparel is brand new,” Parr said.

Sugoi produces custom apparel under its brand, as well as for Cannondale, which is also owned by Dorel. In the future, it will take on production for Dorel brands Schwinn, GT, Mongoose and Iron Horse, said Aimee Taylor, Sugoi’s communications and marketing manager.

Dorel executives have said they’re aiming to triple Sugoi’s custom apparel business in the next five years.

...

http://www.bicycleretailer.com/news/...tail/4008.html

[LeftCoaster]

Cool, I didnt even know Sugoi was a vancouver company... always seemed french or italian or something to me.

Anyway the Lionsgate/Ichan saga continues, this time with the BCSEC getting its feet wet. This is one of the reasons Lionsgate wants to move its headquarters out of Canada, as Canadian regulations surrounding poison pills and other hostile takeover detriments are much more stringent.

Ichan has pledged to keep the company HQed in Vancouver for another 5 years, but regardless of who takes control it appears that its days as a canadian company are all but numbered.

B.C. Securities Commission panel blocks Lions Gate shareholder rights plan
By The Canadian Press

VANCOUVER, B.C. - A British Columbia Securities Commission panel granted an application by the Icahn Group on Tuesday to block a shareholder rights plan recently adopted by Lions Gate Entertainment Corp. to forestall a takeover bid by Icahn.

The panel granted an application by the Icahn Group to cease trade the shareholder rights plan, the provincial regulator said.

The reasons were not immediately available.

Lions Gate had recommended that shareholders approve the plan, which would prevent unsolicited takeovers unless the owners of more than 50 per cent of unaffiliated shares agree.

A vote was set for the plan at a special shareholders meeting May 4.

Requests for comment from Lions Gate, which is based in Santa Monica, Calif., and Vancouver, were not immediately returned.

Among other factors, the company said if billionaire investor Carl Icahn increases his holdings above 20 per cent it would trigger a change of control provision that could cause it to default on a line of credit.

Icahn said the commission agreed with his view that Lions Gate shareholders should have the right to decide for themselves whether they wish to tender their shares to his offer

"We commend the commission for its thoughtful consideration and resolution of this important issue," Icahn said in a statement.

Lions Gate shares were down 37 cents at US$6.62 on the New York Stock Exchange on Tuesday. The shares jumped nearly seven per cent in after-hours trading, suggesting investors believe a higher bid may emerge.

Last week, Lions Gate urged shareholders to reject Icahn's offer to buy up outstanding shares for US$7 each. The offer is open until Friday at 8 p.m. ET.

The board unanimously rejected the buyout offer and said in a statement it was "financially inadequate, opportunistic and coercive."

Icahn owns nearly 19 per cent of the company's shares and has been in a year-long battle to take control of Lions Gate.

The company has noted that Icahn's previous bid of $6 per share was below $8.67, analysts' average target price for the shares.

Icahn has attacked the company's overhead and acquisition plans, but Lions Gate said Icahn has limited experience in the entertainment industry and lacked a coherent plan to run the company.

Lions Gate, based in Canada but operated out of Santa Monica, Calif., was behind the Oscar-winning movie "Precious: Based on the Novel 'Push' By Sapphire." It also owns the TV Guide network and made the "Saw" horror movies and such television shows as "Weeds" and "Nurse Jackie."

In 2005, Lions Gate moved most of its operations out of Vancouver and sold its Canadian distribution rights to Maple Pictures. However, Lions Gate has maintained a presence in the country by shooting some of its films and TV series at domestic facilities.

Icahn has said that if his takeover were successful, Lions Gate would remain a Canada corporate entity for at least five years and that several of his nominees to the company's new board would be Canadian citizens.

http://www.canadianbusiness.com/mark...ent=b272533222

[LeftCoaster]

2010 Olympics sealed $60 million worth of deals for Vancouver-area business
By Stephanie Levitz, The Canadian Press

VANCOUVER, B.C. - The 2010 Olympics sealed the deal on over $60 million worth of investment in the Vancouver-region, area mayors and business leaders said Wednesday.

While some of the eight deals announced had been in the works long before the Olympic flame was lit, Vancouver Mayor Gregor Robertson said the Games were the catalyst that turned handshakes into formal contracts.

"The Games were an excellent crucible for bringing business people together from around the world and introducing them to the local business community, building partnerships and relationships," he told a news conference.

"We're seeing significant results in only weeks following the Games."

The deals are being attributed directly to a $1.5 million program run by nine Metro Vancouver municipalities during the Games to attract investment.

Seventy-one companies were invited to the region for four days and introduced to local companies, politicians and other agencies.

Business leaders also received tickets to Olympics events, which upset some critics who had suggested the public shouldn't be funding elite access to the Games.

The chief executive officer of a U.S. technology start-up said he attended the gold medal women's hockey game and the energy there and in the rest of the city was part of why he decided to spend the $1 million to open his office in Vancouver and not San Franscisco.

"It's just so great to be welcomed to a city," said Anuj Singhal of Monetime Inc.

"So when we came during the Olympics, to just be welcomed like that and be introduced to so many people and just see the vitality of the city and see how many talented people and creative people there are, just to be part of the Games and the energy, that tipped it."

The other agreements announced include four additional international firms who will be setting up offices in Vancouver and a planned $15 million plant in the district of North Vancouver focused on hydrogen energy that is also expected to generate $10 million in spin-offs.

Executives from North Vancouver's H-Tec said they'd been working on the plant project with the French firm Air Liquide for the last two years.

"One of the things that the Olympic events did for us was first put a firm date in front of them where they needed to meet with us or allow this deal to waft for a long time," said H-Tec's Christopher Sacre.

While the company executives could have come for a meeting any time, Sacre said, a chance to attend the Games was major motivator.

"It was a lure, for sure," he said.

The largest agreement announced was a $27 million investment to keep 250 jobs at Cascade Aerospace in Abbotsford, B.C.

That Fraser valley city wasn't actually part of the Metro Vancouver program, though officials from there said they helped arrange meetings between the company and aerospace giant Lockheed Martin.

The program had initially set a target of securing $50 million worth of investment within two years and was funded in part by $800,000 by the federal government.

The federal government had its own program to leverage investment in Canada by using the Games, promoting the country abroad in a "2010 Reasons To Do Business With Canada" campaign and hosting a two-week global business leaders program during the Olympics.

Richmond, B.C. Mayor Malcolm Brodie said Wednesday's announcement was the first of others.

"The final results are far from in," he said.

"The real benefit is the relationships and the networks that have been created."

In the years immediately before and after Vancouver won the Games, reports estimated the economic spin-off could be as high as $10 billion, taking into account benefits like the new Vancouver Convention Centre and upgraded Sea-to-Sky highway and the money spent during the Olympics themselves.

One report by credit card company VISA said international visitors spent $115 million US on their credit cards in the 17 days of the Olympics.

A number of audits and studies of the economic impact of the Olympics are underway both by university researchers and auditing firms.

Results are expected this fall when the Olympic organizing committee releases its final financial statements.

http://www.canadianbusiness.com/mark...ent=b282791223

[LeftCoaster]

Catalyst Paper's sales down 25 per cent as demand, prices remain weak
By Sunny Freeman , The Canadian Press

VANCOUVER, B.C. - Catalyst Paper (TSX:CTL) cited continuing weakness in paper prices and demand Wednesday in reporting a big slide in first-quarter revenue and profit.

But the Vancouver-based pulp and paper producer said it was beginning to see glimmers of hope as the economy recovers.

"We saw some recovery in print advertising from the very low levels of a year ago and, as a consequence, paper demand is up slightly," CEO Richard Garneau said.

Price increases for the second quarter have already been announced.

Catalyst's sales during the first quarter fell to $273.3 million, down 25 per cent from $360.9 million in the prior-year quarter.

Catalyst booked a first-quarter net loss of $44.1 million, or 12 cents per share, a significant decline from a profit of $20.1 million, or six cents per share, in 2009.

The company attributed the loss to declining specialty printing paper prices and additional production cuts, as well as higher restructuring, input and maintenance costs.

Catalyst booked $10.1 million in restructuring costs during the quarter due to severance pay for some 300 employees, most of whom had been laid off as a result of production cuts at its Elk Falls, B.C., mills. Another $5.9 million in bond financing-related costs were offset by a foreign exchange gain on long-term debt of $11.7 million.

Meanwhile, the price of pulp continued to rebound, driven in part by production interruptions in Chile and other regions.

"Pulp strengthened as various events combined to drive price recovery and we could see a more extended pulp up-cycle. Markets for all products going forward will be influenced by industry re-start decisions and operating rates," Garneau said.

The company announced in March that it would restart the second pulp line at Crofton, B.C., in the second quarter.

But many of the company's paper machines, at its Crofton and Elk Falls mills, remain closed.

Catalyst is the largest producer of specialty printing papers and newsprint in western North America. It also produces pulp and owns Western Canada's largest paper recycling plant.

Shares in the company were down eight cents or 21.8 per cent at 30.5 cents Wednesday afternoon on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ent=b282416721

[LeftCoaster]

Goldcorp reports Q1 loss of US$52.7 million on big foreign exchange charge
By The Canadian Press

VANCOUVER, B.C. - Goldcorp Inc. (TSX:G) reported a loss of US$52.7 million in its first quarter, weighed down by a $212.2-million charge related to foreign exchange.

The gold miner, which keeps its books in U.S. dollars, said Wednesday the loss amounted to seven cents per diluted share in its latest quarter compared with a profit of $291.2 million or 40 cents per diluted share a year ago.

The results a year ago included a $116.7-million gain on foreign exchange.

Revenue totalled $750.3 million, up from $624.8 million.

Goldcorp said excluding the foreign exchange charges its adjusted earnings in the quarter totalled $163.1 million or 22 cents per share, compared with $169.3 million or 23 cents per share in the first quarter of 2009.

The average analyst estimate had been for earnings of 25 cents, according to Thomson Reuters.

Production in the quarter totalled 625,000 ounces of gold, up from 616,500 ounces a year ago, while gold sales amounted to 569,100 ounces, down from 607,900 ounces.

The company's average realized gold price was $1,110 per ounce, up from $912 per ounce a year ago.

"A good start to the year at key operations, including Red Lake in Ontario and Los Filos in Mexico, contributed to increased gold production in the first quarter," Goldcorp president and chief executive Chuck Jeannes said in a statement.

"While revenues were negatively impacted by the timing of sales from Alumbrera and Red Lake, the delays are only temporary and we remain confident in our guidance for 2010 production and costs."

Goldcorp shares closed up C$1.32 at $42.99 on the Toronto Stock Exchange on Wednesday.

http://www.canadianbusiness.com/mark...ent=b281165216

[LeftCoaster]

Cant say I didnt see this one coming...

Lions Gate files to appeal British Columbia ruling that quashed poison pill
By The Associated Press

LOS ANGELES - Lions Gate Entertainment Corp. is appealing a decision by B.C. regulators to quash a shareholders rights plan that would have helped it fend off a takeover bid by Carl Icahn.

The company said Wednesday it applied to the B.C. Court of Appeal for leave to appeal the British Columbia Securities Commission ruling.

A hearing on the application is set for May 3.

Lions Gate also said it would push a special shareholders vote on its plan back to May 12. It had earlier planned to vote on its rights plan on Tuesday.

Icahn has offered US$7 per share to take over the movie studio, which is based in Vancouver but operates out of Santa Monica. The company has said the offer is too low.

http://www.canadianbusiness.com/mark...ent=b283014724

[LeftCoaster]

Following the good news coming out of Westfraser, more good news for forestry firms in BC.

Canfor Corp. reports Q1 profit of $32.5M compared to $69.9M loss for Q1 in 2009
By The Canadian Press

VANCOUVER, B.C. - Canfor Corporation (TSX:CFP), one of Canada's largest forestry companies, reported a profit of $32.5 million in the latest quarter, mainly due to higher lumber and pulp prices.

Vancouver-based Canfor reported late Wednesday that due to a new accounting standard in 2010, the company's net income available to its equity shareholders was $15.6 million, or $0.11 per share.

That is up $32 million from a comparable net loss of $17.0 million, or $0.12 per share, for the fourth quarter of 2009.

Quarterly sales were $577.9, up from $ 549.6 in the year earlier period.

The ongoing downturn in the U.S. housing market continues to have significant impact on Canfor's financial performance.

However, the company said the first quarter's results reflected the positive impact from higher lumber and pulp prices both on sales and inventory values and a continued tight control over costs.

[LeftCoaster]

Ballard Power Systems Inc. reports US$10M net loss in first quarter
By The Canadian Press

VANCOUVER, B.C. - Fuel cell developer Ballard Power Systems Inc. (TSX:BLD) cut its net loss nearly in half in the latest quarter as the company generated higher sales.

Ballard said early Thursday its first quarter loss narrowed to US$10 million or 12 cents per share, compared with a loss of US$19.1 million or 23 cents per share in the first quarter of 2009.

The Vancouver-area company said quarterly revenue rose to US$11.9 million from $8.1 million.

The company said that in its core fuel cell products business segment, first quarter revenues increased 28 per cent to US$5 million.

Fuel cells produce no emissions because they combine hydrogen and oxygen to create electricity without combustion. The Ballard products are used to power forklifts and other industrial vehicles.

In its financial release, the company also said it benefited from the January acquisition of Dantherm Power, which added to its bottom line.

Ballard's president and CEO John Sheridan said in a news release that the company was well-positioned to meet financial targets for full year revenue growth in excess of 35 per cent.

On the Toronto Stock Exchange Wednesday, Ballard closed down six cents to 2.48 The stock has traded between a low of $2.44 and high of $2.60 during the past 52 weeks.

http://www.canadianbusiness.com/mark...ent=b282054220

[LeftCoaster]

B.C. Olympics boost payroll employment in February, especially service industries
By The Canadian Press

OTTAWA - Boosted by the Vancouver Winter Olympics, British Columbia led the way as non-farm payroll employment increased nationally by 0.1 per cent, or 8,300 jobs, in February.

Statistics Canada reports notable job gains in accommodation and food services; investigation and security services; and employment services - all largely associated with the Olympic Games.

In manufacturing, payroll employment rose by 11,200 in February, the largest increase for this sector since January 2008.

The agency says a number of manufacturing industries were on the rise in February, most notably plastic product manufacturing; motor vehicle assembly; bakeries and tortilla manufacturing; agricultural, construction and mining machinery manufacturing; and motor vehicle parts.

Other industries with notable job gains in February were employment services; support activities for mining, quarrying, oil and gas extraction; investigation and security services; and business support services.

These gains were partly offset by declines in retail trade, mainly in grocery stores and gasoline stations, along with declines in educational services.

Average weekly earnings, including overtime, of non-farm payroll employees was $843.91, up 2.8 per cent from February 2009.

http://www.canadianbusiness.com/mark...ent=b293015023

[raggedy13]

Thanks for continuing to post so many articles, LeftCoaster. Keep up the good work!

[Yume-sama]

Yes, don't take the lack of comments as lack of interest. I read them all!

[Locked In]

^ Same here - lots of views on this thread from the looks of it.
----------

Vancouver Sun essay about B.C.'s economic present and future:

A post-Olympic dawn, with a bit of a hangover

B.C.'s economy has much going for it, but a coherent strategy for the future is still missing

By Miro Cernetig, Vancouver Sun - April 30, 2010


The morning sun hits the middle of the Olympic rings moored on a raft in Vancouver's Coal Harbour during the Winter Games in February.
Photograph by: Bill Keay, PNG files

What's next?

Now that the Olympic Games are a memory, that's the biggest question hanging over British Columbia's economy, its politics and broader society.

What do we do from here out? What will be the catalyst to take Vancouver and the province to the next level of economic and social development?

Big questions. Surprisingly, there's no consensus on what that catalyst will be, other than it's not going to be another mega-event like the Olympics. What we need is a slate of public policy ideas and a vision, if you will, that will reshape the economic engine over a generation.

Despite the success of the Olympics, we're not in as great a shape as you might think here in Canada's westernmost province. Here are some of the facts, taken out of the Business Council of B.C.'s recent paper, Outlook 2020: Shaping B.C.'s Economic Future:
# - We rank fifth in Canada and 51st in North America, in GDP created per capita.
# - We are sixth in Canada in terms of productivity.
# - We rank fifth in Canada in research and development spending.
# - In terms of capital investment per worker, we're at $9,057 annually as of 2007. That's dramatically below the national average of $11,209 and well behind the U.S. average of more than $12,000. It means we're not innovating and renewing our economic base nearly fast enough.
# - We're one of Canada's weakest exporters and over the last three decades, our trade deficit has ballooned. It was $14 billion in 2008.

Staying competitive

The report's conclusion is sobering: "If B.C. were a country rather than a sub-national jurisdiction that is part of a much larger national economy, one would have to question whether such capital inflows could continue indefinitely to finance an ever-widening trade deficit."

We could go on with those mediocre numbers. But it's obvious. Despite our sky-high rankings as a great place to live, we're sort of a middling economy, lagging in productivity, export prowess and capital investment. These numbers suggest we are in some serious trouble if we hope to remain competitive in the global marketplace, never mind improve the standard of living of the 4.4 million people who live here.

So what is the basis of the future economic blueprint?

Part of the answer comes from our other mega-event: Expo 86, the World Exposition on Transportation and Communication, which proved a catalyst for change more than two decades ago. Expo 86, which was as controversial at the time as the Olympics, ushered in a new era for British Columbia: The province's tourism industry (now stalling) boomed, becoming one of our major generators of capital inflows. After promoting ourselves to the world, our resource economy diversified, both in its staples but also in its markets. China - a hit at the fair, with its pavilion showing bricks from the Great Wall - became a greater focus, too. Finally, the redevelopment of the Expo 86 lands on False Creek jump-started a long-term real estate boom that transformed Vancouver.

After the Olympics, British Columbia finds itself at a similar juncture with the possibility of developing a similar set of growth engines. Here's a taste of what may be next.

Commodities rebound

On the real estate front, there are projects that add $5 billion to $10 billion in new building in the City of Vancouver alone. Those include a proposed downtown casino complex, a re-roofed BC Place, the construction of new office towers, the last phase of residential development on False Creek and a push to build a transportation hub in downtown Vancouver, situated around the SeaBus terminal, that would include a third phase of the convention centre.

On the exports front, we are about to see a renaissance in commodity exports. For the first time in a decade, new mines are on the verge of opening, fuelled by demand from Asia. The forestry industry, devastated by the pine beetle and the downturn in the U.S. housing market, is expected to begin coming back in the next 18 to 24 months as demand for homes in the U.S., pushed by population growth, returns.

Another potential bright spot is the rise of a more robust energy export sector. The B.C. government's revamp of BC Hydro, its push to green energy and its moves to build the $6.6-billion Site C dam open up the chance of an industry based on green-electricity exports.

The booming natural gas industry, as well as the construction of a new pipeline to the coast, also suggest a new export to market that may, if we're shrewd, also be sold as a way of offsetting other fossil fuels such as coal and petroleum.

Other areas that offer such hope are an expansion of educational services for foreign students; marketing some aspects of British Columbia's health care services to the world; and, finally, using Vancouver's international banking status to use preferential tax treatments to build an international trade in banking, digital media, environmental technology and even carbon trading.

But there's something missing. Namely, a clearly articulated strategy to knit all the elements together.

As it stands, the province's primary economic hub - Metro Vancouver - is a mishmash of competing municipalities.

The region's various mayors have no integrated voice on anything other than their desire to retain individual autonomy. That has long defeated attempts for a regional strategy on economic development with respect to real estate, attracting head offices or building high-tech clusters. On the coming real estate development surge, for example, there is no broad approach to identifying what public amenities should be extracted from future development, what the mix of commercial space will be to try to attract head offices back to the West Coast or what changes to building heights are necessary to accomplish that.

Looking for markets

On the provincial government front, there is still no clear approach to exporting green energy. While efforts are underway to create new green power sources, there appears to be no progress in convincing our largest market, California, to consider those projects green. If that doesn't happen, there will be no green power premium.

There is also no clear view on what the primary markets will be for the natural gas now being developed in the province, though it may be possible to use them to replace more carbon intensive fuels. Are we aiming for Asian markets in the future, necessitating new infrastructure at our ports, for example, or are we going to be competing with U.S. natural gas producers?

Where is the strategy to export our educational services, which means attracting foreign students to both public and private institutions? Should B.C. be part of a Canada-wide program to do this, given that what we're doing now on a provincial level often means competing with other provinces?

Productivity problems

Most importantly, however, there has been no coordinated move by government to goose our anemic productivity, perhaps the essential tool to making British Columbia competitive in the decades ahead. In fact, there's been no effective campaign to explain to British Columbians why increased productivity numbers are essential to protecting future growth and their lifestyles.

Nothing highlights this more than Victoria's abysmal attempt to introduce the harmonized sales tax - widely viewed as essential to the B.C. economy. Instead of communicating a cogent argument, backed by the facts, it has allowed the important policy to be hijacked by Bill Vander Zalm, the former Socred premier who is a right-wing, anti-Liberal populist.

Vancouver is on the world's radar after the Olympics. British Columbia has the resources to prosper in the next decade. But the blueprint to harness that future still needs to be written.

mcernetig@vancouversun.com
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun

[Canadian Mind]

Locked in, good article.

[giallo]

Vancouver's digital and lumber industries seem to be firing on all cylinders. Exciting developments all around.

[Locked In]

Investors keen on Vancouver's commercial property

Geographic constraints, strong immigration cited

By Brian Morton, Vancouver Sun - May 4, 2010 10:02 PM


Vancouver and Montreal tied for second place, behind Toronto, as two of the best cities to invest in commercial real estate, according to a survey.
Photograph by: Bill Keay, Vancouver Sun files

Vancouver's commercial real-estate sector is considered a great bet for investment, according to a survey released Tuesday by Colliers International.

The survey, which focuses on office, industrial and retail properties, also found that while Canadian institutional and private real-estate investors believe the market hasn't yet reached its lowest point, they're cautiously optimistic that a fast recovery will soon take shape.

While Colliers International's 2010 Global Investor Sentiment Survey found that Canadian real-estate investors favour Toronto as the top property investment city in the country, Vancouver and Montreal came in second.

"It's due to the fact that this market, largely because of geographic constraints, has always been able to maintain a reasonable balance between demand and supply of space," Kirk Kuester, managing director of Colliers International in Vancouver, said in an interview. "That translates into cash-flow security, which is what investors want.

"Vancouver is challenged by the ALR, the border, the mountains and the ocean, so it's challenged in terms of adding supply of real estate. [Investors] are not at risk of a market becoming oversupplied very quickly."

The survey found that 85 per cent of Canadian respondents who plan to acquire properties favour the domestic market, with Toronto coming in first at 27.8 per cent and Vancouver and Montreal tied for second at 16.7 per cent each. For Edmonton and Calgary it was 14.8 and 11.1 per cent respectively.

Kuester, who said Toronto came out on top because of its size, cited immigration as another reason for Vancouver's popularity with investors. "We have an amazing amount of immigrat-ion to this market, both domestic and international. That adds to the population and demand.

"And if [investors] need to divest, there will be a lineup of people in most instances."

The survey of more than 240 major real-estate investors around the world, including 26 large Canadian institutional property investors, also found that two-thirds of investors plan to expand acquisitions over the next year with a strong appetite for domestic properties.

Cameron Muir, director of the centre for urban economics and real estate at the University of B.C.'s Sauder School of Business, said in an interview that the survey bodes well for Vancouver.

"It says Vancouver, not surprisingly, is a strong investment market in Canada.

"But the most interesting thing is that Calgary isn't in the top three. In the commercial markets, there's a lot of concern for the vacancy market in Calgary."

Milton Lamb, chair, national investment team, with Colliers International in Canada, said in a statement: "On a risk adjusted basis, Canadian investors still see Canada as a preferred investment destination that offers a higher return on investment compared to the U.S., in part because of the turmoil that still lingers south of the border."

The survey concluded that Canadian investors are not just interested in buying opportunities, with 54 per cent looking to sell under-performing or non-core assets.

The survey found that 73 per cent of Canadian investors feel access to capital became easier over the past year, with most expecting that to continue but with higher borrowing costs; 50 per cent of Canadian investors would pay a premium for sustainable buildings; and rents are expected to decline and hit bottom at the beginning of 2011.

bmorton@vancouversun.com
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun

[Blake]

Originally Posted by Locked In

Source: Vancouver Sun

Cameron Muir, director of the centre for urban economics and real estate at the University of B.C.'s Sauder School of Business, said in an interview that the survey bodes well for Vancouver.

Off topic: Anyone know when Cameron Muir joined UBC? Did he leave his post at the BC Real Estate Association?

Interesting, as I am a currently UBC urban land economics student and never heard anything about Muir coming.

[LeftCoaster]

Thanks for the comments guys, sorry for the absence, just started a new job and things have been really hectic.

Nice article about commerical property in Vancouver, its been struggling relative to residential (and will continue to do so) but it seems to be somewhat stronger as of late. I'm not surprised investors are looking at getting involved, the same fundamentals that push up residential should be pushing up commerical but they havent kept pace, I guess some people are betting that the siparity is not justified.

Anyway some more lumber industry news:

Canfor sees future in lumber shipments to China, not tepid U.S. market
By Sunny Freeman , The Canadian Press

The deep economic downturn that cut U.S. demand for Canadian lumber significantly for several years has had an upside for Canfor Corp., which turned its focus to Asia and discovered "exponential growth" during the first quarter.

"There so many opportunities in China, it's really a stretch of the imagination," Canfor's president and chief executive Jim Shepard said Friday.

The Vancouver-based lumber producer (TSX:CFP) shipped about 25 per cent of its products offshore during the first quarter - about half of that going to China - while 20 per cent was used domestically and the rest bound for the U.S.

It reported $15.6 million of net income attributable to shareholders, or 11 cents per share, in the first quarter. In the first quarter of 2009, the net loss attributable to shareholders was $58.8 million or 41 cents per share.

Quarterly sales were $577.9 million in the first quarter of 2010, up from $474.7 million in the year earlier period, which marked the low point of the 2008-9 recession for Canada.

Shepard said there is a "growing Asian appetite" for higher grades of lumber, adding that as China develops its urban centres, it will emerge as a dominant market for lumber in the next ten years.

"We continue to focus on what the most opportunistic ways will be for shipping our product there," Shepard said.

"And while we're doing that, the net effect is that we're taking a considerable amount of volume off the North American market and that's certainly having a positive impact on lumber prices."

Canadian forestry companies are beginning to re-open mills and recall workers who were laid off during the downturn, when producers cut costs to cope with a drop in demand in the U.S. house construction market.

The shutdowns, along with problems faced by international competitors - from an earthquake in Chile to a port strike in Finland - have constrained the supply of wood products, resulting in a global shortage that drove lumber prices up 30 per cent in the first quarter.

Lumber prices in March were so high that export duty rates on shipments from Canada to the United States will drop from 15 per cent to 10 per cent on May 1-marking the first time prices reached the threshold since the Softwood Lumber Agreement between the U.S. and Canada came into effect in 2006.

"I'd like to say we are at the beginning of the end, but that remains to be seen. I do, however, genuinely feel that we are past the worst of it and we came through in one piece and in good shape," Shepard said.

He added that it's still unclear whether the current spike will be permanent because it is driven by temporary supply constraints rather than sustained demand.

Shepard said he remains cautious about the immediate future because the ongoing downturn in the U.S. housing market continues to take a toll on Canfor's financial performance.

Housing starts in the U.S. remain under 600,000, well below a peak of two million in 2005 and a more normalized annual range of 1.2 million to 1.6 million starts a year.

"There may be rays of sunlight shining right now, but there are still some clouds in the horizon, particularly in the United States, like the expected continuation of home mortgage foreclosures and the constraining high unemployment numbers," he said.

"For these reasons we continue to be focused on growing our offshore markets"

Shepard said the company emerged from the downturn with a strong balance sheet that will enable it to modernize its facilities and take advantage of growth opportunities.

The company operated at 60 per cent capacity in the first quarter and said it will bring on new capacity if and when demand warrants it.

Earlier this week, the company announced it was adding a third shift at its Polar division planer mill in the north-central B.C. community of Bear Lake.

Canfor also added a second shift at a sawmill in Mackenzie in February and also has plans to re-open its Chetwynd sawmill next month. Both are located in northeastern B.C.

Shares in Canfor gained 33 cents, or three per cent, trading at $10.43 apiece Friday afternoon on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...tent=b30723214

[LeftCoaster]

Apparently Vancouver has an aerospace industry... well I'll be damned.

Avcorp seeking $18 million in compensation after Bombardier cancels contract
By The Canadian Press

VANCOUVER, B.C. - Avcorp Industries Inc. (TSX:AVP) said Monday it was seeking more then $18 million in compensation for unrecovered costs in connection with a contract for Bombardier's (TSX:BBD.B) CRJ700 program that was cancelled.

Avcorp said it has filed a "motion to institute proceedings" in Quebec Superior Court on Monday.

The contract with Avcorp was terminated by Bombardier in 2007.

"In the discussions we conducted with Bombardier over the last few months we were not able to reach an acceptable settlement," Avcorp chief executive Mark van Rooij said in a statement.

"We are confident that we will receive a fair decision through this process.'

Avcorp designs and builds airframe structures for aircraft companies.

http://www.canadianbusiness.com/mark...ent=b033285524