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LEGACYFRANK VOISIN HAS TAKEN“FAMILY BUSINESS” TO NEW LEVELS

PLUS:• Hands On, Fingers Out

• Working Notice & Just Cause

• Tax Efficient Investing

LEGACYFRANK VOISIN HAS TAKEN“FAMILY BUSINESS” TO NEW LEVELS

PLUS:• Hands On, Fingers Out

• Working Notice & Just Cause

• Tax Efficient Investing

THE FIRST THING THAT A VISITOR ENCOUNTERS at Marhaven Furniture is the work-shop. You will see craftsmen intent on their craft, and solid wood furniture in various stagesof construction. You will hear saws and drills in operation, and smell the heady, rich scentsof cedar, cherry and maple.

The second place a visitor is likely to see is the showroom – a quiet setting filled tocapacity with beautiful, hand-crafted solid wood furniture – dining room suites, bedroomsuites, office furniture, stretching through the entire upper floor of the Marhaven building.

But Mr. Martin, owner of Marhaven (who uses his last name only in publication, for rea-sons of modesty), will insist that neither of these experiences are at the heart of his business.At the centre, he says, is an intense dedication to satisfying his customers. And he and his

staff will go to almost any length to make that a reality.Three words can encompass the entire mis-

sion at Marhaven: creativity, craftsmanship,and communication.

Creativity is clearly apropos, since 90% ofMarhaven’s furniture is now custom designed forclients.

Craftsmanship almost goes without saying,since all furniture from Marhaven is solid woodand hand-crafted with quality details like dove-tailed joints (front and back in all drawers), fullextension ball bearing drawer slides, and floor lev-ellers.

Communication? Martin insists that customersbe involved throughout the process of the design

and building of their furniture.The Marhaven approach has produced remarkable

success in a short period of time.

FIVE-YEAR HISTORYMr. Martin founded Marhaven Furniture five years ago. He says that this particular busi-

ness appealed to him for a number of reasons – it provided an opportunity to launch hisown business; he enjoys “the satisfaction of cre-

ating something”; and it allows him to meetthe needs of his customers.

Marhaven Furniture is a family businesslocated in farm country, on Buehler Line,north-east of Linwood. In fact, visitors –and Martin strongly encourages visitors –might think they are driving up a farm lane... because they are. But Marhaven is wellsigned from all main roads, and this is afarm lane with a difference – there is ahigh-quality, creative furniture factory inwhat first appears to simply be a barn.

Martin clearly enjoys the contrasts; evenwhen he talks about his high-quality furni-ture, he insists that his story be told plainand simply – “straight from the horse’s

mouth.” A buggy parked in what might be thepresidential parking space gives credibility to

the metaphor.Martin now has a staff of six working on site, including his

brother who is the point man for custom design. But when askedhow six people, including himself, produce the quantity of quality fur-

niture, Martin points to at least half a dozen other farm-based busi-nesses who are contractors for Marhaven, including another

Time-honoured traditionMARHAVEN FURNITURE SPECIALIZES

IN MAKING HANDCRAFTED HEIRLOOMS

brother who is a sawmill operator. Components and parts forMarhaven furniture are made by local, farm-based businesses,and then quality checked and assembled at Marhaven’s facili-ty. As well, since “we don’t drive,” Marhaven also sub-con-tracts delivery.

That is actually a major contract, since Marhaven hasattracted customers from as far afield as Montréal andWinnipeg.

Overall, says Martin, Marhaven’s business has more thandoubled in the last two years or so.

PERSONAL CONTACTOne thing that has not changed is Martin’s approach to cus-

tomer satisfaction. Marhaven doesn’t have a website; theybelieve designing and buying furniture is a tactile, hands-onexperience, and they strongly encourage all customers andpotential clients to visit their facility. “We prefer a direct rela-tionship with the customer,” says Marhaven’s owner. “We highlyencourage them to come out. We like to meet the people, drawthem out about what they’re looking for, work with them on their design.”

They ask clients to bring photos, sketches, ideas of any kind about what they want thefurniture to look like – then the craftsmen will take over and produce the custom design,in consultation with the client. “People are welcome to bring any design, any sketch, anyidea ... all we need are ideas, and then, off we go.”

Martin insists this has been the key to Marhaven’s success: “We listen to our customers.”And the communication does not stop after the first design meeting – Martin notes that cus-tomers will be asked for their home phone numbers, their businessnumber, their cell number, because ongoing consultation is expect-ed.

He also believes integrity is built into every piece of furniture.“It’s all solid wood when we say it’s all solid wood. There are noveneers, no particle board, no laminates.”

The Martins believe their focus on quality allows them to offer aperfect combination of quality and price. As Martin says, “we offerexceptional quality for a good price.”

NATURAL PRODUCTMartin delights in the Marhaven process, which their brochure

describes as “From Forest to Final Form.” They actually buy muchof their wood as standing timber in woodlots. They harvest thewood, have it cut by their sawmill, kiln dry it, and eventually, shipit to customers throughout Canada as beautifully-crafted furniture– bedrooms, dining rooms, entertainment units, office suites, chinacabinets ... anything the customer orders.

All Marhaven furniture contains some locally-grown wood, cho-sen by Martin, sawed by his brother, and cured and crafted by theexperts at Marhaven.

GROWTH POTENTIALMarhaven furniture can be found in homes, offices, businesses,

institutions and hotels across Ontario. Martin hopes to see growthin all of these markets, and is especially interested in the potentialfor the commercial and institutional customer. Marhaven hasserved customers in all of these categories, and is actively seekingmore.

Martin says that he has taken an “aggressive” approach to pro-moting his business, but he is pleased that “we’re now at the pointwhere there’s a lot of word of mouth” advertising.

Historic Waterloo County furniture is prized by antique collec-tors, and Marhaven, with its emphasis on hand-crafted quality, is a worthy successor to thatheritage. Although Martin is reluctant to boast, he will smile and say, “We’re at the heart ofWaterloo County/” Geographically, yes ... but Marhaven has also captured the heartbeat ofcreativity, craftsmanship, and customer satisfaction.

Or, as Martin says, “We specialize in making handcrafted heirlooms.” It’s a time-hon-oured tradition, now carried on by the expert, dedicated craftsmen and designers atMarhaven Furniture.

5000 Buehler Line, WallensteinVisit our showroom or give us a call.

519-698-1103Hours: Tues-Fri: 9-12 &1-5; Sat: 10-4

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DEPARTMENTS

9 PUBLISHER’S NOTE

10 BUSINESS MONITOROur community mourns the loss of Com Dev’s Val O’Donovan and Klaus Woerner of ATS; Manufacturers facing market shifts; Quarterly Report;

25 WATERCOOLER

FEATURES

13 LEGACYBY PAUL KNOWLESFrank Voisin has taken “family business” to new levels

30 MAKING A DIFFERENCEBY BRIAN HUNSBERGERGoing From Good to GreatThe Prosperity Council of Waterloo Region is providing community leadership

COLUMNS

19 TAXWISEBY TERRY WICHMANTax Efficient Investing

21 BUILDING BETTER BOARDSBY JIM BROWNHands On, Fingers Out

22 BUSINESS & THE LAWBY MELANIE REISTWorking Notice & Just Cause

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P.O. Box 41030, Waterloo ON N2K 3K0 • Tel: (519) 886-2831 • Fax: (519) 886-6409email: editor@exchangemagazine.com

ExchangeCONTENTS

Volume 22, Number 5 MAY 2005

Publisher/Editor: Jon RohrAssociate Editor: Paul Knowles

Feature Writers: Brian Hunsberger,Paul Knowles, Jon Rohr

Advertising Sales: Brian LyonTMR (519) 886-1946

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Exchange

On the cover: Frank Voisin

John Bell, left and John Doherty of the Prosperity Council

EXCHANGE magazine is a regional business publication pub-lished by Exchange Business Communication Inc. President,Jon Rohr. Eight issues per year are distributed to each companyin Kitchener, Waterloo, Cambridge, Guelph, and Fergus asdetermined by Canada Post Business Postal Walks.Subscriptions are available for $29.90. Send cheque ormoney order to Exchange, P.O. Box 41030, Waterloo, ON N2K3K0. Attn: Circulation Department. Back issues are available for$8 per copy. Phone: (519) 886-9953. Fax: (519) 886-6409. ISSN0824-457X Copyright, 2005. No part of this magazine may bereproduced without written permission from the publisher.

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Less Agreeable in anAgreeable WayHow can anyone agree with these decisions?

BY JON ROHR

Iheard somewhere that turning 40 is supposed to make aperson more agreeable. Well, I’m turning 40 and I wouldlike to point out that I’m no more agreeable now than I

was last year at this time. In fact, suffice it to say that as abusiness owner operating in Ontario,Canada, I’m less agreeable than ever.Which doesn’t make me unique, at anystretch.

Now don’t get me wrong. I’ll be easy toget along with – just don’t ask me toagree on anything. You see, much to thechagrin of researchers and scholars, I’mgoing to prove them wrong. I’m going tobe less agreeable, more often. It’s humannature to be agreeable when everyoneelse appears to be. The challenge comes when everyoneappears to be in agreement and you are not.

Too many agreeable choices are made in a room full of

agreeable people. Take our local transportation system. Ifmore people would speak up and voice their disagreementwith the current plan, we would get a better one. Forinstance, take on one hand the proposed light rail system,take on the other, our new international airport. I’ve beentold that never the two will meet – ever. I’m not in agree-ment with that. It’s an Ontario planning error, destined torepeat itself in Waterloo Region. Pearson Airport is discon-nected from rail traffic, so too will our airport be.

Our growing tax burden is another issue I adamantly dis-agree with. Government wants to grow – so governmentdoes, at the expense of those businesses who employ peopleand drive economies. Since the year 2000, government-con-trolled payroll taxes and benefits are up 26.4%, government-controlled electricity is up 54.2%, hidden taxes are stymieingthe will of business people to innovate and grow. It doesn’t

make sense.Without belabouring the fact that I’m

a) turning 40, b) a business owner and c)take pride in participating in communityprojects, I will steadfastly continue mydisagreeableness. And with spine andbackbone intact, I reserve what agree-able notions I may possibly conceive, forfamily and friends. To my wife and dearfriends I say: from this time on I willrehearse and perfect that one little line

that for years has been absent from my vocabulary: “Iagree.”

Cheers.

PUBLISHER’S NOTE

JON ROHR IS

PUBLISHER OF

EXCHANGE MAGAZINE

FOR BUSINESSe-mail: jrohr@exchangemagazine.com

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Canadian manufacturers are to experience twomajor market shifts during the next 15 years,says a report obtained by Exchange Magazine,commenting on the February CanadianManufacturing and Exporters Summit 20/20.The CTT – Waterloo Region was instrumentalin the 20/20 summit, as it held the first of aseries of consulting sessions in October. Thesesessions were later duplicated across Canada.

The document highlights two major forcesacting on Canadian Manufacturers:1. A shift in the way value is created, from

growing, extracting and producing things,toward the specialized application of knowl-edge in fulfilling the needs of ever moredemanding customers; and

2. The emergence of a more integrated globaleconomy. The 20/20 summit was attended by CTT

Vice Chair Jorge Steiber of ODGManufacturing, John Tennant CEO CTT, andhalf a dozen area business people.

Tennant said the full report is especiallyinteresting in terms of the picture it presents ofwhat Canadian manufacturing might look likein 2020. “It aligns with the strengths ofCanada’s Technology Triangle and, I believe,validates some of the key thrusts and prioritiesof our investment attraction strategies.”

The CME 20/20 summit report sug-gests that a future competitive advantagein manufacturing will be dependent onseveral factors: Customer Success,Mastering Global Supply Chains,Knowledge Management, Specialization,Agility, Customization, Customer Valueand Time, and Product Development.

In addition to advances in electronics,information and communications tech-nologies, computing capabilities, softwareprogramming and e-business networks, thereport identifies emerging technologies

10 l exchangemagazine.com l MAY 2005

BUSINESS MONITOR

Com Dev’s Val O’Donovan a community leaderVAL O’DONOVAN, founder of Com Dev, and former Chancellor of the University ofWaterloo, died at his home in Bermuda on Saturday, February 5, at age 68.

O’Donovan founded Com Dev in Montreal in 1974, moving the company to Cambridgein 1979. Com Dev has become a global leader in satellite and wireless communicationstechnology, and became a publicly listed company in 1996; in 1998 Val retired as CEObut continued as Chairman of the Board until December 2004.

Val was widely recognized for his community involvement. He served as UW’sChancellor for six years. A member of the Order of Canada (2003), he was then namedChancellor Emeritus. He played a key role in the relocation of UW's School of Architectureto Cambridge in 2004.

“Our university community, and indeed all Waterloo Region, has lost a wonderfulfriend, innovator and leader," said UW President David Johnston. "Val was one of a kind,a true gentleman in all that implies. He was an exceptional engineer who brought his ideasand spirit of innovation to this region, building Com Dev into an international company ofhigh repute. And he used his success in industry to build a better community around him."

"He not only worked tirelessly for the advancement of UW and higher education ... healso had a strong interest in his Cambridge community as witnessed by Lisaard House, thehospice he founded with his wife Sheila.”

O’Donovan is also survived by four children, Simon, Christopher, Stephen andCaroline, and nine grandchildren.

Born in Cork, Ireland, O'Donovan earned his profession-al engineering accreditation in England. After coming toCanada in 1963, he joined RCA in Montreal and participat-ed in the engineering development of the first generation ofsatellite earth stations.

Honours included the Laurier Outstanding BusinessLeader Award; a Doctor of Engineering from UW; theMcNaughton Gold Medal from the Institution of Electricaland Electronic Engineers; and the John H. Chapman Awardfrom the Canadian Space Agency.

Manufacturers facing market shifts

that will revolutionize future manufacturingcapabilities. These include biotechnology andgenetics, nanotechnology, micro-machining,metrology, mechatronics, new materials, smartmaterials, fuel cells and alternative energy andintegrated technologies.

Summit participants included the President

of the US National Association ofManufacturers, John Engler. While the sum-mit focused on Canadian Manufacturing,Canada and the US share many commoninterests, says Tennant. The summit highlightsthat there are two costs which impose a uniquecompetitive disadvantage to US manufactur-

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MAY 2005 l exchangemagazine.com l 11

ers: 1) legal costs (representing 2.4% of USGDP), and 2) high and still escalating cost ofhealth care. Given this relative disadvantageof locating in US jurisdictions, challengescontinue to face the Canadian and localmanufacturing sector.

Tennant commented on the dramatic costsqueeze enterprises have recently experienced.The report compares the first quarter of 2000with last quarter of 2004:

Prices – Down 2.5%; Wage Rates – Up17.5%; Raw Materials – Up 45.4%; PayrollTaxes & Benefits – Up 26.4%; Electricity – Up54.2%; Industrial Fuels – Up 138.5%.

Top challenges, according to CanadianManufacturers & Exporters Association:1. Competition from China; 2. Impact of Dollar Appreciation;3. Problems & Delays at the Border;4. Skills Shortages;5. Rising Business Costs (notably materials,

energy, insurance and shipping);6. Global Sourcing;7. Image of Manufacturing;8. Costly, Slow and Uncompetitive Tax

and Regulatory Structure;9. Infrastructure;10. Reliability & Cost of Energy.

• Canadian manufacturing plants haveincreased product specialization and improvedthe length of production runs following theCanada-US Free Trade Agreement (FTA),according to a Stats Can study, which lookedat the level of product diversification and spe-cialization in the manufacturing sector from1980-1997. Diversification is a strategy man-ufacturers may choose in order to enlargeplants and exploit the economies of largescale production. However, while this strategycan reduce average production costs, thosecosts may still be uncompetitive by interna-tional standards if diversification leads toshort production runs per product.

• The composite index was unchanged inFebruary, when advances of .1% from Decemberto January were reported. The stock marketremained the strongest source of growth, invest-ment spending plans improved, the averageworkweek shrank.

• For a second consecutive year, consumers wenton a buying spree in January. December sales fellin the last two years, as the popularity of gift cardsmay have pushed purchases into the new year.

Klaus Woerner

XQuoteMIKE LAZARIDIS has some advice for thoseBlackberry users suffering from complaintsfrom loved ones. “The person that means alot to me, that complains the most loudlyabout my BlackBerry use is my wife," hetold CNN. "I realized a lot of executiveswere having the same problem so I cameup with the perfect solution. I gave her onetoo, and I suggested they do the same."

Klaus Woerner was Canadian Entrepreneur of the YearKLAUS WOERNER, a leading Waterloo Region businessman, and a former CanadianEntrepreneur of the Year, died February 7 at age 65. Woerner was founder, President and CEOof ATS Automation Tooling Systems Inc. of Cambridge. Woerner had also been honoured asBusiness Leader of the Year (Kitchener-Waterloo Chamber of Commerce).

Woerner was born in Germany, and came to Canada in 1960, first stopping in Montreal,where he studied at Concordia University. He then moved toToronto, where he completed a degree in industrial engi-neering at Ryerson. In 1978, he founded the company thatwas to become ATS-Automation Tooling Systems.

Klaus was married to Anna, father of Astrid and Michaeland grandfather of three.

Lawrence G. Tapp, Non-Executive Chairman of the Boardof ATS, highlighted Woerner’s contributions in a statementfollowing his death: “Klaus was a gifted engineer, entrepre-neur and business leader who made a significant and lastingcontribution to the global automation industry, to the Regionof Waterloo where he chose to found ATS more than 25 yearsago and to thousands of young engineers and tradespeoplearound the world who benefited from his commitment toapprenticeship training.

“His sharp intellect, dedication to adding value through innovation, global insight, and pas-sion to succeed made him one of Canada’s great entrepreneurs.”

John Tibbits, a good friend and business associate, recognized Woerner at the ConestogaCollege Donor recognition breakfast, praising Klaus for making "a major impact on Conestoga,”and commenting on a “great relationship” with a man who “easily donated over $10 millionto the College over the past years."

ATS employs approximately 4,000 people at 26 facilities in Canada, the United States,Europe and Asia-Pacific. The company is a leading designer and producer of turn-key automat-ed manufacturing and test systems.

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