CEO Blog

Category Archives: Business

All blog posts by Kevin Dee, Chairman at Eagle — Canada’s premier staffing agency, related to business.

December Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for December 2016. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Decembers …

Five years ago, in December 2011 Ottawa’s March Networks was snapped up by Infinova Canada for $90 million, and Toronto based Rypple was acquired by Salesforce.com!  The BIG deal was SAP’s $3.4 billion purchase of SuccessFactors, who had also announced they were buying Jobs2Web for $110 milion.  It was IBM that was the most active acquirer of the month, paying $440 million for DemandTec, also picking up Emptoris in the procurement world and Irish company Curam Software in the government sector. Oracle logo a large software company originally noted for its databaseFour years ago, in December 2012 there was a fair amount of M&A activity with Oracle making two acquisitions, marketing automation company Eloqua ($871 million) and Dataraker which provides analytics for utilities companies.  The big deal of the month saw Sprint pay $2.2 Billion to take full control of cellular competitor Clearwire.   Montreal based Cogeco paid $635 million for Peer 1 Networks and NCR paid $635 million for retail software and services company Retalix.  In the BYOD space Citrix bought mobile device management company Zenprise for $355 million.  Finally, Redknee added 1200 employees and 130 new clients through the purchase of Nokia Siemens Business Support Network. December 2013 was a slow month, however Oracle pulled off a $1.5 billion buy of marketing software company Responsys; Akamai paid $370 million for cloud-based IBM logosecurity solutions provider Prolexic; JDS Uniphase paid $200 million for enterprise performance management company Network Instruments; IBM bought a “big data” file compression company Aspera and Hitachi expended its solutions capability with the purchase of Calgary based Ideaca.  In other company news Target, although not an IT company, had a major security breach involving details of 40 million debit and credit cards.  December 2014 was not such a slow news month, with the political and technical ramifications of “the Sony hack” causing uproar, some very positive economic indicators out of the US and some big names making acquisitions, albeit not huge deals.  Microsoft made two Microsoft logoacquisitions, the $200 million purchase of mobile email app startup Acompli and mobile development company HockeyApp (which has nothing to do with hockey).  SAP bought travel and expense management company Concur; Intel bought a Montreal based identity management company PasswordBox; Oracle bought digital marketing company Datalogix; Teradata bought data archiving company Rainstor; and MongoDB bought high-scale storage engine company WiredTiger. December 2015 was not a busy M&A month but there was some interesting activity.  The big deal saw Canadian telco Shaw make a big play into the cellular space with its proposed acquisition of Wind for $1.6 billion.  Meanwhile Rogers was also out shopping and growing its Maritimes presence through the acquisition of Internetworking Atlantic Inc.  Other deals in December were not large but did feature some of the big players.  Oracle bought Stackhouse a cloud company with a specialization in “containers”; IBM boosted its video in the cloud capabilities with the purchase of Clearleap; and Microsoft picked up a mobile communications company, Talko.  Other deals saw Ingram Micro buy the Odin Service Automation business from Parallels and in the storage world Carbonite bought Evault from Seagate.

Which brings us back to the present …

December 2016 saw Adecco sell its majority stake in Beeline VMS to GTRC, a private equity firm, for $100 million in cash plus a $30 million note; CRN solution provider SS&C purchased asset service firm Conifer for $88.5 million; solution provider QRX Technology Group acquired IT equipment provider Kerr Norton at the beginning of the month; networking solution provider, Juniper Networks acquired cloud operations management provider AppFormix; Uber bought start-up Geometric Intelligence Inc.; and Shopify acquired Tiny Hearts, a Toronto-based mobile product development studio.

In other news, Yahoo disclosed that one billion accounts were hacked in 2013 making it Yahoo logothe largest data breach recorded in history. To safeguard against hacking attempts on your devices, Check Point Software advises users to make sure they download the latest versions of software as they have discovered new malware that targets devices running outdated software. Cyber attacks and security breaches are also a major concern for IT and business professionals where, according to Symantec, 30% of business surveyed have experienced a hack over the last two years.   GoPro also announced layoffs of up to 15% of its workforce and Amazon delivered its first package by drone!

That’s my look at the tech news for December 2016.  Until next month, walk fast and smile!

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

2017 Resolutions Made Easy

Goals quote by NightingaleIt took me a while to understand the power of goals and the need to have them in my life.  I expect that the reasons I resisted were similar the reasons most people resist:

  • Goal setting seems like an academic exercise:
  • I wasn’t sure how to start:
  • I wasn’t sure how to set realistic goals;
  • It all feel like work, maybe I would do it tomorrow!

I’m sure you have heard all of the good reasons why you should have goals …

  • If you don’t know where you are going, how will you know when you get there;
  • Goals help to focus your efforts;
  • Goals are like a road map for life, they guide you in your decisions.

Well hopefully I can help you to get started, and to commit to giving it a try.

This is a great time of year for goal setting. Those people who set goals last year can develop a score card, and understand what they achieved and where they fell short. This will feed into their goals for 2017.

All good stuff … but goals are for other people, right?

  • Wrong … if you really want to take charge of your life then goals are for you! Why should you do it now, when you have procrastinated every year until now? Because I am going to make it easy for you … and if you try it you will see results!The following are the steps I took to get started …Step 1. I developed categories that worked for me …
  • Health and Fitness
  • Vacation
  • Career
  • Family
  • Training/Education

Step 2. I set at least one goal for each category, several goals in some categories. Here are some examples …

Under health and fitness you might want to lose 5lb by March 2017; you might want to add weights into your workout routine at least twice a week; you might plan to reduce coffee consumption to 2 per day. Etc.

Under Vacation you should really give some thought about where you would like to go this year. It could be to enjoy the cottage at least 12 weekends, or plan a weekend getaway without the kids; or take a 2 week vacation somewhere exotic etc.

Under Career you might set a goal of mastering certain aspects of your current role by the Fall; having a career planning meeting with your boss or HR; or developing a training plan to advance your career.

The goals that you pick need to be achievable and within your control. This way you will see progress and as you do progress you can always add more goals or increase the “intensity”.

Step 3. Plan into your calendar a monthly review. At that review you will check your progress against each goal and will create action items to address them … which will go onto your “to do” list (of course you have a “to do” list!).

This is a very basic, easily managed approach to goal setting. You can obviously get much more complicated and sophisticated but this works and the most important thing is to start somewhere.

Try it … this time next year you can be sitting and reviewing how you did in all of those categories and planning for 2018! Good luck!

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Finish the Year Strong!

There is no traffic jam along the extra mile For many salespeople December means slowing down, stopping pushing for sales and waiting for the New Year.  Some clients are winding down for the holidays.  Some are putting decisions off to the New Year.  The salespeople have a lot of personal things to get done, and might use this time to catch up on some paperwork.

If that is how you feel then you are in the majority of sales people … BUT the top performers, perhaps even your competition, are pressing right through to the final hour before the holidays.

“Continuous effort, not strength or intelligence, is the key to unlocking our potential.”  Winston Churchill

Ten Thoughts …

  1.  Just because some of your clients are slowing down, it does not mean that they all are.
  2. Some clients use this “slower period” to get decisions made.
  3. This can be the best time of the year to get meetings with clients who are typically difficult to meet.
  4. If you are reliant upon just a few key contacts then now would be a great time to meet new prospects.
  5. Dropping off cards and small gifts (where allowed) is a great way to get in the door.
  6. If all of your client conversations are about asking for business this time of year can be an opportunity to have different conversations.
  7. If you slow down now it will affect your new year sales … plant seeds now for the new year.
  8. There is less competition “out there” as we head into the holidays, because others are slowing down … take advantage of that!
  9. If you slow down and your competition doesn’t, then you might be losing business.
  10. Sales is all about momentum … if you lose momentum now, then re-establishing momentum in the New Year will be so much tougher.

Don’t fall into the trap … keep pushing right till the very end.

In life, as in running, don’t stop with time on the clock!

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

November Tech News

Technology Industry News - November 2016This is my 30,000 foot look at events in the ICT industry for November 2016. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Novembers …

Five years ago in November 2011 Mosaid was sold to Sterling partners for $590 million, ending a WiLan hostile takeover attempt.  Japanese company Rakuten paid $315 million for e-book company Kobo; Huawei technologies bought Symantec out of a storage and Yahoo logosecurity joint venture to the tune of $530 million; Yahoo paid $270 million for online advertising company Interclick; and Best Buy paid $167 million for internet technology company Mindshift.  In November 2012 Cisco made two significant “buys”, cloud infrastructure company Meraki ($1.2B) and cloud datacentre and software company Cloupia ($125M); Dell bought software tools company Gale Technologies; NCR bought retail software company Retalix ($650M); Cray bought software company Appro ($25M); Sprint Nextel bought a chunk of US Cellular ($480M); and Toronto based NexJ (headed by another ex-Andersen Consulting alumni) bought Broadstreet for $8.2 million.   Three years ago in Opentext logoNovember 2013 Opentext paid $1.1 Billion for cloud based integration services company GXS Group and another Canadian deal saw Mitel buy Aastra for close to $400 million.  Other deals this month included ebay’s $800 million purchase of global payments company Braintree; Apple’s $370 million purchase of 3D sensor company PrimeSense; and Akamai’s purchase of Velocius Networks.  November 2014 was an exceptionally quiet month on the M&A front with the largest deal being the merger of two semiconductor companies, Cypress Semiconductor and Spansion to form a $4 billion company; private equity company Carlyle Group paid $700 million for investment bank technology company Dealogic and Yahoo shelled out $640 million for video advertising company BrightRoll.  Last year, November 2015 saw a number of smaller M&A deals, but not much in the way of expediamega-deals.  The only billion-dollar deal saw expedia pay $3.9 billion for HomeAway as a vehicle to better compete with Airbnb.  Zayo Holding Group became the first foreign company to own a Canadian telco after paying $465 million for Allstream.  Other, smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in the latest Star Wars movie; and Lightspeed POS bought SEOshop, increasing its size as a competitor to Shopify.  Other deals saw Ingram Micro grow its Brazilian presence with the purchase of ACAO; PCM bought Edmonton based services firm Acrodex; Data centre company CentriLogic bought infrastructure company Advanced Knowledge Networks; solution provider Scalar Systems bought another Toronto company, professional services firm Eosensa; and Washington based New Signature bought Toronto based Microsoft Partner, Imason.

Which brings us back to the present …

November 2016 saw some M&A activity, although it was not too busy.  The big deal of the Oracle logo a large software company originally noted for its databasemonth saw Broadcom acquire Brocade Communication Systems in an all-cash transaction of $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited will acquire IT cloud consulting firm Appirio for $500 million; Oracle Corp. has announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.   In other news, hackers caused some problems for Casino Rama Resort, claiming to have both employee and client information going back a number of years; also Adultfriedfinder exposed 340 million users information.  A Harvey Nash Technology Survey suggests 94% of technology professionals across the world believe a significant part of their job will be automated within ten years, rendering their current skills redundant.

The economic indicators in the US were generally favorable and jobs numbers were quite positive.  Canada’s economy continues the same tepid trend we have seen for quite some time.  Sometimes up a little, sometimes down a little, with unemployment hovering around the 7% mark.

That is my update on tech news for November 2016 … until next month, stay positive, walk fast and smile!

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Avoid Unintended Consequences

Drucker quote about decision makingHow many times do we see a negative impact from seemingly harmless or well-intentioned actions?

We see it from governments who implement well-intentioned legislation only to cause negative affects in the “real world”.    As just one small example, attempts to help the “underdog” will often increase costs to business owners, and for small business owners the impact will be felt in lost jobs.

We see it from companies who will have a knee-jerk reaction to a “one off” situation and bring in rules that have negative consequences.  If you implement restrictive policies because of one bad experience then you create a less welcoming environment and that will be felt when trying to compete for talent with companies that are not so restrictive.

We all do it at a personal level.  We do or say things that inadvertently cause ripples.  It might be social niceties such as inviting some people to the party and inadvertently upsetting others, or by complimenting one friend and another takes offense.

If you want to avoid unintended consequences, then you need to think “bigger picture”, and you need to be sensitive to your actions.

Some things you might consider:

  1.  Don’t make knee jerk decisions.  Take the emotion out of your decisions and let some time pass before you “act”.
  2. Get input.  Consider other people’s perspectives.
  3. Think ahead.  Try to anticipate what else you should consider;  who else you should consider and how else your decision might have impact.
  4. Have a plan that includes (a) the objective you want to achieve, (b) a plan to get to that objective and (c) any possible outcomes from your plan.

It is possible that the decision is more important than any repercussions, but in that case the consequences are not unintended … they are just consequences!

“If you don’t know where you are going, you’ll end up someplace else.”  Yogi Berra

Obviously we can’t anticipate everything, but TOO often we don’t even try … make an effort, thoughtfulness is always appreciated!

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

#Social for the Small Business

Social media quote by David NailIn 2016 small businesses NEED to be on social media.

I went searching for a professional this week, and was given several names as potentials.  My first stop was LinkedIn … if they had no LinkedIn profile they came off my list.

I am a baby Boomer and even I look to social media for answers.  Younger generations are even more demanding.

How do people find you?  If you believe the quote here, and I do, then you MUST have a #Social presence.

Millenials expect to see your online presence.

Today there are more millenials in the work place than Boomers !  That is not a market you can afford to miss!

“Social media is here. It’s not going away; not a passing fad. Be where your customers are: in social media.”   Lori Ruff

Interesting thought … the target of this article will not see it!  Do them a favor and share it with them.

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

October Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for October 2016. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Octobers …

Five years ago in October 2011 an industry icon, Steve Jobs passed away and IBM announced Virginia Rometty as their first female CEO.  On the M&A front Oracle made a couple of buys, including RightNow Technologies ($1.5 Billion) and Endeca Technologies; Sony bought Ericsson out of their Sony Ericsson joint venture ($1.5 Billion); Red Hat bought storage company Gluster ($136 million); and Cisco bought BNI Video ($99 million).  The October 2012 news was dominated by Hurricane Sandy and the US presidential election.   The big deal of the month was a $1.5 billion merger of two US cell EMC logocarriers, T-Mobile and MetroPCS.  There were also a number of smaller deals, with EMC beefing up in the security area (Silver Tail), Telus expanding its medical solutions portfolio (Kinlogix Medical) and Avnet improving its IBM capabilities (BrightStar and BSP).  In the social networking world Yelp bought its European competitor Qype in a $50 million deal.  Three years ago, October 2013 was not a dynamic M&A month, although there was certainly some activity.  Oracle announced two acquisitions, both “cloud based companies: Big Machines provides pricing and quote date for sales and orders; and Compendium is a content marketing company.  Other “names” out shopping included Avaya buying the software division of ITNavigator for its call centre and social media monitoring software; Rackspace bought ZeroVM a tech company with a software solution for the cloud; Intuit bought consulting company Level Up Analytics, primarily to acquire its talent; VMWare bought “desktop as a service” company Desktone; Netsuite bought human capital software company TribeHR; and Telus enhanced its mobile offering with the HP logopurchase of Public Mobile.  In October 2014 we saw a new trend, with two public companies both choosing to split into smaller entities.  HP announced it was creating a business service focused Hewlett-Packard Enterprise and personal computing & printer company HP Inc.  Symantec also chose to split into two independent public companies, one focused on business and consumer security products, the other on its information management portfolio.  Other interesting news saw IBM pay $1.5 Billion to GlobalFoundries so it would take away its money losing semiconductor manufacturing business.  NEST bought out competitor Revolv; EMC bought three cloud companies, The Cloudscaling Group, Maginatics and Spanning Cloud Apps; and in Korea, Kakao and Daum merged to form a $2.9 billion dell logointernet entity.  Last year October 2015 brought some big deals with the biggest seeing Dell offer $26 billion to buy storage company EMC.  Interestingly an EMC subsidiary, VMWare was also out shopping, picking up a small email startup, Boxer.  In another deal involving “big bucks”, Western Digital paid $19 billion for storage competitor Sandisk.  IBM were also writing a big cheque, paying $2 billion in a big data/internet of things play for The Weather Network (minus the TV operations), and IBM also picked up a storage company, Cleversafe.  Cisco paid $522.5 million for cybersecurity firm Lancope; LogMeIn paid $110 million for LastPass; Trend Micro paid $350 million for next generation intrusion prevention systems company HP Tippingpoint; Red Hat picked up deployment task execution and automation company Ansible; Vasco Data Security paid $85 million for solution provider Silanis; and Apple bought a speech processing startup, VocalIQ.  As industries converged it was interesting to see Securitas pay $350 million for Diebold’s US Electronic Security business.

Which brings us back to the present …

Just like four years ago October 2016 news has been dominated by the US Presidential election … and of course the upset happened!  Maybe the election is why the M&A market was slow this month?  Not much in the way of deals, with one BIG deal seeing Qualcomm Google signpay $47 Billion for NXP Semiconductor.  The only other sizable deal saw Wipro pay $500 million for IT cloud consulting company Appirio.  Google picked up Toronto based video marketing startup FameBit and Pivot Technology Solutions picked up Ottawa based Teramach … and that was about it for October.

Other news saw Google step into the smartphone world with the release of Pixel, at a time Twitter logowhen wireless use in Canada is more than 50% of telecom revenues, however that is a crowded and hyper-competitive space so it will be interesting to watch.  Twitter announced layoffs plus the fact it will be shutting down the video service Vine.  Lastly HP Inc. also announced layoffs in its plans.

Despite all of the hype and vitriol of the presidential campaign, most indicators that were based on numbers were reasonably positive.  A couple of subjective indices (measuring confidence) were down, but nothing crazy.  There were also numerous reports from IDC and Gartner this month with predictions of growth in many tech sectors including total IT spend, cloud spending, security spending etc.  About the only areas that are trending down are PC sales which is no surprise and smartwatches, which is a surprise.

I would be remiss in my husbandly duties if I did not point out Janis Grantham’s inclusion in the 2016 Global Power 100 — Women in Staffing list.

I also found it surprising that it is five years since Steve Jobs passed away, it just doesn’t seem that long ago.

That is my update on tech news for October 2016 … until next month, stay positive, walk fast and smile!

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Hard Work and Success … the Link!

Hard work quote by edisonWe know that successful people work hard.

We also know that lots of people work hard and are not particularly successful.

It is probably fair to say that lots of people think they work hard and struggle to understand why they are not successful.

It is probably also fair to say that a very few people don’t work very hard at all, but they are successful.

So … what is going on?

Here are just a few truths …

  1.  Life is not fair … get over it.
  2. There are things you can control and things you can’t control … you CAN control your work ethic.
  3. If you are working hard and not getting where you want to go, then something has to change … but it should not be your work ethic, unless you just THINK you are working hard!
  4. Most successful people also work smart!
  5. There are very few free lunches!

What could you think about?

  1.  Perhaps you are working hard, but on the wrong things?
  2.  Perhaps you are not working as hard as you could be?
  3.  Perhaps you are in the wrong job?
  4.  Can you emulate someone who is successful in your profession?
  5.  Maybe it is just a matter of time?

Work quote maya angelouSome thoughts on work ethic …

  1.  How many productive hours are you working?
  2.  How much time do you waste in a day?  Personal stuff, non-productive tasks or distractions.
  3.  Do you consider being available through email/smartphone as working hard?
  4.  Productivity should be your goal … whatever that takes.
  5.  You should work hard for yourself, not for anyone else.
  6.  Don’t kid yourself about your work ethic.

Don’t expect success if you are not willing to do the work.

Doing the work does not guarantee success.

Not doing the work all but guarantees you won’t be successful.

Not everyone is focused on career success.  Many people just want to earn a living and in that case, all that is required is to do is a fair day’s work to earn an income.  Of course it is still called work, and if you have to do it then why not do it well?

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

 

Canada’s Job Market. A review of Q3 2016

Canadian Job MarketGeneral Observations:

The third quarter of 2016 continued the “new normal” for Canada’s economy, which was not a positive thing!  Until oil prices get up into the $70+ range, consistently, we are unlikely to see a recovery in the very important oil sector.  Interest rates remain low but need to edge up in anticipation of the next recession, but the mere suggestion of interest rate increases causes a weakening in the markets.  The US economy continues to improve, but we are not seeing the expected “pull through” that we have seen in the past.  The Canadian dollar hovers around the 75c US mark which makes it more expensive for imports and Canada imports more than it exports.

The unemployment rate at the end of the third quarter was 7% which was a 0.2% worse than the 6.8% of Q2, but slightly better than the Q1 rate of 7.1%.  During the previous 12 months Canada added 139,000 jobs which was 21,000 more than the 12 months up to last quarter.  In a sign of our changing times, the majority of these were part time jobs.

TSXThe stock market continues to be volatile, and is one of the sources of concern for the Bank of Canada.  For the purposes of this report I focus on the TSX and it has enjoyed a reasonable period of growth, currently at around 15,000 points as opposed to 14,100 points at the end of the 2nd quarter.

oil rigsAs already mentioned the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018.  With oil starting to settle at around $50 a barrel we are not likely to see the start of any major projects.  The reality is that many companies in the oil patch are considering even more cost saving initiatives including layoffs.  Many companies are looking at divesting Canadian assets and investing in other geographies with less opposition and more government support.  Many workers who migrated to the oil patch during the boom have left, which will make things even tougher when a recovery happens because it will be difficult to entice them back.

Canadian dollar the LoonieThe Canadian dollar in comparison to the US dollar is a long way from the days when we flirted with, and passed parity.  At time of writing the dollar is hovering between 75c US and 76c US, which is just a couple of cents weaker than the end of Q2.  The good news is that this helps the oil patch because they sell in US dollars and most costs are in Canadian dollars.  It is also helpful to our manufacturing sector, but that sector has been severely depleted over the years and Canada is a net importer meaning that overall a weak Canadian dollar is not good for Canada.

The banking sector, while a big user of talent and one of the largest employers in Canada, is also very careful.  The banks continue to be very careful with their hiring and are being careful to control their staffing levels.  Toronto and Montreal continue to demand talent, just perhaps a little more restrained than in other times.

cell towerThe telecommunications companies are other big employers in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they too, are also careful about keeping employment costs under control.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

US GovernmentThe US economy continues to add jobs, but at a reduced rate of about 150,000 per month.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.  What has not happened, and is different from previous economic times, is that Canada’s economy has not improved along with our neighbours, which is one of the indicators of a “new normal”.

ConstructionThe construction industry seems to be forever busy, to which anyone trying to get work done will attest.  Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?).

The Liberal government has been in place for about a year and are continuing to both spend and raise taxes.  One example is their forced carbon tax, which is really just a money grab (does anyone really think this money won’t go into regular government coffers?) and is going to cost Canada jobs and hurt Canada’s economy at a time when it can ill afford it.  There are some expected government projects and infrastructure spending initiatives that should benefit the private sector.  In addition, spending in some ministries will be reduced as others benefit from the new agenda.  Some opportunities will be seen in sectors such as health, environment and education.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score for the Index was 108 in September, which was up 2 basis points from the end of Q2.

Here at Eagle the big impact on our business continues to be the oil patch, but other clients are taking advantage of a tough economy to look at their cost base.  This has led to layoffs and slower hiring patterns.  Year-over-year the number of people applying for jobs has increased by about 11.75%.  Demand from our clients was down more than 8% year-over-year.  This suggests to us that the people affected by the layoffs are now active in their job searches.  We also believe that demand is very patchy, with no sectors booming in demand for professionals.

 More Specifically:
cn towerToronto is one of the largest cities in North America with a population exceeding 6 million and the GTA (Greater Toronto Area) is home to the most head offices (almost 700) and most head office staff (around 75,000) in Canada.  Consequently it is also the hottest job market in Canada and generates about 60% of Eagle’s business.  While it remains a busy market we have seen some impact from downsizing in large companies that has increased the availability of senior people in the market.  Having said all that, if I were looking for work this is where I would like to be.  The sectors that are always looking for people include the financial, insurance, government and telecommunications sectors in addition to the retail sector and the construction industry.  There is also a fair amount of demand in the engineering and manufacturing space.

The Saddledome in CalgaryWestern Canada and more specifically Calgary as the “oil capital” of Canada, has taken the brunt of the hit from the drop in oil prices.  There have been multiple rounds of layoffs, and more are projected, with the possibility that it may be 2018 before we see a recovery.  When the big oil companies are hurting there is a trickle-down effect to all of the services companies that serve them and the local economy is affected in retail and housing specifically.  The NDP government has done nothing to help boost confidence in Alberta for investors.  It should not be forgotten that both Saskatchewan and British Columbia have an oil sector too, and while they have been equally hit, those provinces seem to be doing better because their economies are less dependent on one sector and certainly Saskatchewan is a better managed province.  We have seen reasonable, but not strong, demand for talent in Vancouver, Regina, Winnipeg and Edmonton but remain cautious about the longer term impact of the loss of oil revenues.  This could affect everyone as provincial tax coffers suffer and the ancillary businesses are hit.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. There is a better mood in Ottawa and within the Federal Government (other than the morale issues caused by a non-functioning pay system) but that has not translated into a bunch of work, as we know the contracting process is long and arduous.   There is an expectation that the Liberal government will get some projects back on the books, and there is optimism that a new agenda will lead to more business in the National Capital Region specifically.  Montreal is relatively unchanged, not booming but a steady demand for resources, particularly in the financial and telecommunications sectors.  The Maritime Provinces have traditionally had higher rates of unemployment and this continues to be the case.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts  always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

 Summary:

 Canada’s economy continues to languish, and since the last recession we have been caught in a continual low interest rate, stimulus focused cycle that has never quite taken off.  The more recent “oil recession” has hit Canada hard, given that we are a resource rich country and there is no near end in sight.  Statistics show there are jobs being added in Canada, but the numbers are not impressive particularly when you see how the US is doing and most of those jobs are part time.

Federal and provincial governments are talking about stimulus spending and infrastructure projects, so there is an expectation this will create some boost to the economy, although I have not seen it.  If interest rates remain low, as expected, and the dollar remains fairly low, then we might also see some further growth in Canada’s relatively small manufacturing base.

Given that investment portfolios have recovered from the 2008 recession, we are seeing a rise in the Boomer retiree population which will create demand for highly skilled resources.  With Canada’s overall unemployment rate at 7%, we can deduce that the unemployment rate for trades and skilled workers to be much lower, perhaps even approaching skill shortage levels.  Even in these uncertain times, we see shortages in many niche skill areas.

There are definitely still opportunities created because of those retiring Boomers and the need for companies to remain competitive.  We see opportunity in the construction industry, the financial sector, the telecommunications sector and the insurance sector.  We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal.  Ottawa is showing promise and could pick up if new projects are initiated by the federal government.  Government spending will also provide a temporary boost to employment as the stimulus money becomes available.

That was my look at the Canadian job market for the third quarter in 2016 and some of its influences.
——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

September Tech News

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for September 2016.

What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of September in previous years …
Five years ago in September 2011 Broadcom paid $3.7 Billion for NetLogic.  Google was busy, buying restaurant reviewer Google signZagat plus acquiring 1,000 patents from IBM.  Ottawa’s Zarlink was bought by Microsemi for $525 million.  SAP bought Crossgate, Twitter bought Julpan and CSC bought Indian software testing company AppLabs, and Hitachi Data Systems continued the consolidation in the storage industry with the acquisition of BlueArc.  September 2012 was a quiet month in M&A deals.  Infosys increased its management consultancy capability with the $330 million purchase of Lodestone.  Lenovo bought Stoneware, a software company focused on the cloud, and Ericsson bought ConceptWave.  A couple of interesting investment moves saw Microsoft invest in Klout and Silicon Valley VC Chameth Palihapitiya invest in Xtreme Labs. Three years ago in September 2013 Blackberry announced a quarterly loss of almost $1 million and laid off 4,500 people. Microsoft bought Nokia’s devices and services unit for more than $7 billion. Ebay paid $800 million for payment platform Braintree; Synnex bought IBM’s customer care division for $505 million; Rogers added to its data centre capacity with the $161 million purchase of Pivot Data Centres; Extreme Networks bought Entersys Networks for $180 million; and Manitoba Telephone Microsoft logoSystems bought Epic Information Systems.  September 2014 saw some big deals announced, including Microsoft’s $2.5 billion purchase of gaming company Minecraft, Lenovo’s $2.1 billion purchase of IBM’s x86 server business and Cognizant’s $2.7 billion purchase of healthcare company, Trizetto Corp.  Hootsuite had an injection of cash and bought two companies, social telephony company Zeetl and social media marketing platform Brightkit.  Google also made two acquisitions, biotech company Lift Labs and desktop polling company Polar. There were plenty more deals announced, including Yahoo’s $8 million purchase of cloud based document hosting company Bookpad; Cisco’s purchase of private cloud company Metacloud; SAP’s purchase of expense software company Concur; Blackberry’s purchase of virtual identity software startup Movirtu and Red Hat’s purchase of mobile app company FeedHenry.  Last year in September 2015 there was a fair bit of M&A activity but no blockbuster deals.  Microsoft was very active, closing three deals, IBM logoAdxstudio which provides web based solutions for Dynamics CRM; app developer Double Labs; and cloud security firm Adallom.  Accenture picked up the cloud services company Cloud Sherpas; IBM added cloud software startup StrongLoop; Netsuite paid $200 million for cloud based marketing company Bronto Software; and Blackberry paid $425 million for competitor Good Technology.  Hardware company Konica Minolta bought IT Weapons; Qualcomm bought medical device and data management company Capsule Technologie; Networking and storage company Barracuda Networks bought online backup and disaster recovery company Intronis; and Compugen bought some of the assets of another Canadian company Metafore.

Which brings us back to the present …

HP new log 2016September 2016 was a slow month for M&A but there were a couple of large deals.  Tech Data paid $2.6 Billion for the technology solutions group of Avnet, and HP made the biggest printer acquisition to date, paying $1.05 Billion for Samsung’s printer business.  Other deals saw Google pay $625 million for Apogee, and restaurant company Subway bought online order taking software company Avanti Commerce.  One investment that caught my eye, in the staffing world saw Accenture invest in crowdtesting company Applause.

Economic news was generally positive around the world with a few exceptions, Brazil being the most obvious having had 17 straight months of job losses.  The US was, surprisingly to me, fairly positive in most indicators despite the upcoming election and their “interesting” potential presidents.  The Canadian outlook seemed generally positive, of course these reports were prior to announcements of carbon taxes.  The economy certainly doesn’t “feel” positive.

Yahoo logoYahoo had some more bad press, this time for a security breach that happened two years ago affecting 500 million accounts and Blackberry announced that it was getting out of the hardware business.

A couple of studies looking at emerging technologies saw increasing investment in big data analytics and IoT in the manufacturing sector and a suggestion that robots might only replace 6% of jobs in the future.  (I wonder if a robot could become President? Or Prime Minister? OR Premiere?  Pretty sure right now I might vote for them!))

That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the October 2016 tech news in just about a month’s time.

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————