Siemens Canada establishes presence in Saskatchewan.

The team of people at Enterprise Saskatchewan whose goal is to transform the province's opportunities into economic successes are smiling these days; they've helped convince Siemens Canada to establish a presence in Saskatchewan.

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"In 2010, we attended a Canadian Institute of Metallurgy and Mining tradeshow in Vancouver with the intent of meeting with leading companies that could be part of the supply chain for our growing mining industry in the province," explains Kim Lansdale, the Director of Resources Sector Development at Enterprise Saskatchewan.

"One of the companies was Siemens Canada. We met with them, and within 30 days Robert Hardt, then-head of Siemens Canada-Industry Sector, came to Saskatchewan to meet with a number of senior representatives of mining companies and the Minister responsible for Saskatchewan Enterprise at the ti rile.

"We basically convinced him Saskatchewan was worth a hard look."

Coincidentally, about the same time, Siemens Canada was approached by a Regina company that had grown into one of the largest electrical service organizations in the province specializing in engineering solutions for the utility, industrial, commercial and institutional electrical markets: Prairie West Technical Services (PWTS), which was interested in acquiring some of Siemens facilities in Canada so it could expand the company. PWTS already had a presence in Saskatoon and Sudbury, but was ready for more.

Michael Gross, current head of Siemens Canada-Industry Sector, remembers it well.

"We thought these guys had a bit of courage--we're a $3-billion company in Canada, and internationally more than $100 billion, and they're just a fraction of our. Canadian operations," he chuckles.

"So we started discussions with the owners Lee Eady and Jim Mayhew and realized soon that they had a very good sense of business, they were very respected in the market, they had very close ties to customers--including some of our key customers--and they were active as a distributor for our motors. When we looked closer at the company, we found they were extremely successful and showed extremely good performance."

In November 2011, Siemens acquired PWTS. "Our interest in Saskatchewan was already a couple of years old. With Saskatchewan being the front runner for growth rates for all of Canada, we wanted a presence there to capitalize on co-markets like the mining industry," says Gross.

"Then comes the chicken-and-egg question: do you grow organically, or from an acquisition? We knew the most important thing is to get good people, which we realized can be a challenge in Saskatchewan, so we started looking for a company that would be a good nucleus and that would help us cluster or improve our footprint and activities in the mining industry."

Siemens secured all key employees-60 in all--and because business is already growing, it's already looking to add another 2.5 per cent to its labour force. To make the deal a guaranteed success for everyone, Siemens kept the former owners on board. "We really bought an asset there," says Gross of the former owners.

Lee Eady will not only continue to run the Regina operations, but he now has responsibility to oversee Siemens' other five motor repair centres across Canada with a mandate to implement best practices from the Regina benchmark shop. Jim Mayhew will run the service operations for all of Western Canada now. "Why fix it if it's not broken and proves successful?" says Gross of the decision to keep the business under the same management regime.

In a few short months, Siemens has already seen sales increase as a result of the merger. "We are also pleased to have acquired land adjacent to the Regina location to accommodate the growth," says Gross. "This acquisition has enabled us to get a strong foothold right in the heart of potash mining. We have gone from zero to a hundred in a few seconds."

The service and relationship PWTS developed with its customers will continue to be a priority, but driven by discussions with mining customers, Siemens is now rolling out its innovative electrical gear such as power sleds--mobile power substations for underground mining--and the capability for mining customers to acquire complete electrification of their operations, from conveyor belts to complex drive systems and applications.

Siemens Canada is also working closely with Siemens' German headquarters to plot out a growth plan that will enable the company to expand its operations outside Saskatchewan, across the country and beyond. The Saskatchewan location makes a solid hub for growth.

Known worldwide for its good corporate citizenship, Siemens has plans to implement its community programs in Saskatchewan, too. It will soon establish its Caring Hands program to co-ordinate and bundle social responsibility activities including donations, volunteerism, disaster relief and sponsorships, including support to Siemens' charity of record (Cystic Fibrosis Canada) and other humanitarian and environmental nonprofit organizations.

To counteract the shortage of skilled labour, Siemens has already begun looking at the possibility of providing scholarships to Saskatchewan technical institutes and engaging First Nations communities to become part of the workforce of the future. "It's still in the think-tank stage," says Gross, "but we will see what we can do in the area of training and education.

Gross believes strongly that the Saskatchewan-Siemens partnership will be a good one.

"There is a very positive feeling and environment in Saskatchewan, and people are looking positively towards the future. That's the attitude you need in today's market."

Siemens Canada will mark its 100th anniversary in Canada in August 2012. Since it was federally chartered in August of 1912, Siemens has stood for technical achievements, innovation, quality and reliability. The company has 61 offices and 13 manufacturing/assembly facilities across Canada. Further information is available at www.siemens.ca.

Siemens Worldwide is active in around 190 regions, occupying leading market and technology positions worldwide with its business activities. It has 360,000 employees around the world. In addition to the more than 285 manufacturing locations around the world, Siemens also has office buildings, warehouses, research and development facilities, or sales offices in nearly every country around the globe.

RELATED ARTICLE: STEP Trade Conference 2012

September 25-26,2012, Radisson Hotel, Saskatoon, Sask.

Saskatchewan Trade and Export Partnership (STEP) is very pleased to host the 2012 Trade Conference, which has grown to be a marquee forum for the provincial exporting community to gather, exchange ideas and network with like-minded enterprises. A strong program is currently being developed to bring together some of the most successful leaders in global business and to provide conference delegates with focused, relevant information pertaining to the trends and obstacles confronting Saskatchewan exporters.

For ongoing conference updates, please visit the STEP website at www.sasktrade.sk.ca.