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BOREAL SERVICES: DECIDING WHICH INTERNATIONAL MARKETS TO ENTER
Case
This case was written by Albena Pergelova (MacEwan University) solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The case was compiled from field research.
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BOREAL SERVICES: DECIDING WHICH INTERNATIONAL MARKETS TO ENTER
It was April 2018, and Deidra Helmig, president of Boreal Services Group Inc. (an occupational health and safety consulting firm headquartered in Edmonton, Alberta), was preparing for the upcoming trade mission in the US, where she was scheduled to pitch her company’s services to businesses as big and varied as MGM, United Airlines, and Home Depot. Deidra was reflecting on the path that had led her from serving mainly small and medium-sized businesses in Alberta’s oil and gas industry to the moment of embarking on international expansion and considering a variety of different new services for new markets.
With stricter health and safety regulations coming into effect in many countries, the occupational health and safety (OHS) market was growing internationally. Boreal had built extensive experience with clients working in locations that have some of the highest safety standards in the world. Helmig wanted to take the knowledge and experience gained from working with these clients and bring it to international markets. In addition to the US, Helmig was considering Mexico, Chile, Peru, and India. Deciding which international markets to enter first and what products/services would best fit the needs of those markets was an important strategic decision for the future of the company.
Occupational health and safety: overview
The occupational health and safety industry was concerned with the mental, physical, and emotional well-being of employees1. Consultants in this industry developed policies and programs to ensure safe workplace environment for a variety of organizations. Large economic and social costs were associated with not managing work conditions effectively. For instance, mentally and/or physically exhausted workers typically had a poor-quality work performance and a larger rate of absenteeism2.
According to the International Labour Organization (ILO) there were approximately 337 million fatal and non-fatal work-related accidents per year worldwide. In addition to the human suffering resulting from those accidents, according to ILO about 4% of the world’s annual GDP was lost as a consequence of occupational diseases and accidents. In many countries, efforts were made to improve the OHS situation by introducing policy and legislative rules3. While it was recognized that a healthy workforce is an essential prerequisite for productivity and economic development, only a small proportion of the global workforce had access to occupational health services for primary prevention and control of occupational and work-related diseases and injuries.4
1 Sánchez, Fabián Alberto Suárez, Gloria Isabel Carvajal Peláez, and Joaquín Catalá Alís. "Occupational Safety and Health in Construction: A Review of Applications and Trends." Industrial Health 55, no. 3 (February 7, 2017): 210-18. Accessed May 7, 2018. doi:10.2486/indhealth.2016-0108. https://www.jstage.jst.go.jp/article/indhealth/55/3/55_2016- 0108/_article 2 Oviedo-Trespalacios, Oscar, Laura Patricia Martínez-Buelvas, José David Hernández-Kligman, and Jaime Andrés Escobar-Osorio. "Work Conditions Assessment in Manufacturing Organizations in the Colombian Caribbean Region." Revista Facultad De Ingeniería Universidad De Antioquia, no. 81 (2016): 73-80. Accessed May 6, 2018. http://aprendeenlinea.udea.edu.co/revistas/index.php/ingenieria/article/view/23208 3 “International Labour Standards on Occupational Safety and Health.” Danger at Sea - Working in the Fishing Sector. 2018. Accessed April 24, 2018. http://www.ilo.org/global/standards/subjects-covered-by-international-labour- standards/occupational-safety-and-health/lang--en/index.htm. 4 Ivan Ivanov, Rokho Kim, Said Arnoat, Hisashi Ogawa, Thebe Pule, Habib Saiyed, Mauritza Tennassee., Caitlin Annatoyn, Jessica Kelberger, Margaret Harris, Elaine Fletcher, Vallaurie Crawford. World Health Organization. “WHO Global Plan of Action on Worker’s Health (2008-2017): Baseline for Implementation” Global Country Survey
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Country-specific issues related to OHS
United States
In the US, the Occupational Health & Workplace Safety Services industry provided training, education and assistance in the form of worksite evaluations, hazard assessments, facility design reviews and compliance audits5. The US Occupational Health & Workplace Safety Services industry was estimated at $6.2 billion in 2016, with annualized growth of 3.3% during 2011-2016. According to IBIS World, from 2017 to 2021, revenue for the Occupational Health and Workplace Safety Services industry was projected to grow an annualized 1.5% to $6.6 billion. Growing demand was expected from the construction sector which was recovering from the housing crisis. Another important sector was consumer goods manufacturers (e.g., fast moving consumer goods, such as food, beverages, household and personal care products) which was the largest market for the industry with 23% of industry revenue in 2016. The mining sector was expected to expand too, and the risk of injury and illness was substantially higher in mining compared to other industries. Significant growth was coming also from the healthcare markets, where OHS consultants ensured that hazardous waste and pharmaceuticals in hospitals were properly handled. Aging US population was expected to further increase the need for medical care, and thus demand for OHS consultants to train new healthcare employees. In addition, chemical manufacturers and oil and gas companies were forecast to expand, and to increasingly require OHS services to ensure the safety of their workers. It was projected that by 2021, the number of companies operating in this industry would reach 35,226.6
Adding to the traditional occupational hazards, research was increasingly focused on psychological health and safety. Mental health problems were found to impact employee performance, absenteeism, and accidents, as well as significantly affected companies’ bottom line. It was estimated that yearly, in the US, approximately one in ten adults suffered a depressive disorder, and that mental health issues costs the US between $30 and $44 billion7.
The Latin American market: focus on Mexico, Peru, and Chile
The Latin American market looked promising. The growth in Latin America and the Caribbean was estimated at 0.9 percent in 20178. Inflation was low with a downward trend in most countries in the region. Regional growth was expected to rise to 2.0 percent in 2018 and 2.6 percent in 2019. Chile, Brazil, Peru, and Colombia were expected to see the biggest growth thanks to rising exports and price increase of commodities such as oil and minerals9.
2008/2009 Executive Summary and Summary Findings (April, 2013): 1-44 http://www.who.int/occupational_health/who_workers_health_web.pdf?ua=1 5 IBISWorld Industry Report OD5319, “Occupational Health & Workplace Safety Services in the US”, accessed April 12, 2018. 6 Ibid 7 Phyllis Gabriel, “Mental Health in the Workplace Situation Analysis United States.” International Labour Organization, (2000): 1-88, accessed April 22, 2018, http://www.ilo.org/wcmsp5/groups/public/@ed_emp/@ifp_skills/documents/publication/wcms_108227.pdf 8 Dana Vorisek, Shituo Sun. “Global Economic Prospects.” Latin America and The Caribbean, Chapter 2.3 (January, 2018): 105-156. Accessed April 22nd, 2018. http://pubdocs.worldbank.org/en/125721512062602134/Global-Economic- Prospects-Jan-2018-Latin-America-and-Caribbean-analysis.pdf 9 Elizabeth Gonzalez, “Chart: Latin America's 2018 Economic Outlook.” AS/COA. January 08, 2018. Accessed April 05, 2018. https://www.as-coa.org/articles/chart-latin-americas-2018-economic-outlook.
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Mexico
Growth in Mexico in 2017 was estimated to have been 1.9 % and was projected to be slightly higher in 2019 and 2020. Mexico had the ninth-largest economy in the world. Its main industries were food and beverages, tobacco, chemicals, iron and steel, petroleum, clothing, motor vehicles, consumer durables, and tourism10. Despite recent economic growth, issues related to OHS in Mexico were becoming an increasing concern. For instance, a study found that agrochemical poisoning in Yucatan, Mexico, costs approximately US$ 3 million per year to the economy of that region, and that occupational exposure to pesticides explained 40% of the annual demand for health care11. Furthermore, in Mexico, only 35.6% of workers had access to health institutions and 28.6% worked in the informal sector12.
Mexico’s energy industry was one of the sectors where OHS could see an increase in demand. Mexico’s oil sector was witnessing an important transformation. It had been dominated by state- owned Pemex since its nationalisation in 1938, but ongoing energy liberalisation were expected to change the market through the introduction of private capital13. Mexico possessed the third largest proven oil reserves in Latin America, after Venezuela and Brazil. The new liberalised regulatory regime was expected to encourage more exploratory investment into the sector.14 Mexico was also an attractive mining destination. The country’s regulations were largely favourable for mining, with a focus on precious metals and copper15. Another major industry – the auto industry - was expected to grow. According to Business Monitor International, for the 2018 to 2021 forecast period the Mexican autos industry would experience average annual vehicle production growth of 3.3%, reaching annual production volumes of 4.5mn units by 202116. The mining industry and the auto industry were potentially important customers for OHS services.
Data from Mexico suggested that recent occupational safety improvements have been concentrated in predominantly male occupations. An increased number of muscular-skeletal disorders were observed among women in factories because of the repetitive tasks of the jobs they do. Pregnant women exposed to occupational hazards (e.g., chemicals) were especially vulnerable. Low-skill female manufacturing work, especially in Maquiladoras, were the result of Mexico’s liberalization in the 1980’s and 1990’s17. Indeed, Mexico’s labour market offered advantages to investors – it had an ample supply of workers for labour-intensive manufacturing activities, coupled with competitive wage costs. In addition, Mexico’s productivity relative to the minimum wage was among the highest in the world. Important for Mexico’s regional competitiveness, its score in the
10 Front Line World. “Mexico- The Ballad of Juan Quezada.” PBS. May 2005. Accessed April 19th, 2018. http://www.pbs.org/frontlineworld/stories/mexico403/facts.html. 11 Roberto Fontes Iunes, “Occupational Safety and Health in Latin America and Caribbean: Overview, Issues and Policy Recommendations” Operational Department 3, Inter-American Development Bank. (2001): 1-25. Accessed on April 18th, 2018. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.198.515&rep=rep1&type=pdf 12 Mery Gonzalez-Delgado, Héctor Gómez-Dantés, Julián Alfredo Fernández-Niño, Eduardo Robles, Víctor H. Borja, and Miriam Aguilar, “Factors Associated with Fatal Occupational Accidents among Mexican Workers: A National Analysis.” Plos One 10, no. 3 (March 19, 2015): 1-19. Accessed April 19, 2018. doi:10.1371/journal.pone.0121490. http://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0121490&type=printable 13 BMI, Mexico Oil & Gas Report, 2018, accessed May 29, 2018. 14 BMI, Oil & Gas Report Upstream Exploration - Mexico - Q2 2016 - Industry Forecast, 2016, accessed May 29, 2018. 15 BMI, Mining Report, Mexico, 2017, accessed May 29, 2018. 16 BMI, Autos Report, Mexico, 2018, accessed May 29, 2018. 17 David Atkin, “Working for the Future: Female Factory Work and Child Health in Mexico”. Princeton, NJ: Department of Economics Princeton University. (April, 2009): 1-48. Accessed on April 25th, 2018. http://www.mit.edu/~atkin/Women%20in%20Manufacturing_old.pdf
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Labour Market Risk Index was 57. 9 out of 100, placing it third in Central and South America, after Chile and Peru18.
Peru
GDP growth for Peru was calculated at 2.6% in 2017 and was expected to grow to 4% by 2020. Mining accounted for an estimated 60% of Peru’s total exports. Because of the importance of mining for its economy, Peru’s government had positive business environment and open investment framework for the sector. Peru possessed large mineral reserves and its mining sector was diversified, producing gold, silver, copper, tin, lead and zinc. Various multinational firms maintained active mines and were expected to invest in new capacity over the next 10 years19. The Peruvian mining industry was competitive regionally, and there was an increase in foreign direct investment, a substantial portion of which was coming from Chinese firms, according to the Ministry of Energy and Mines. Several Canadian-based firms also maintained active presence, among which Teck Resources, Trevali Mining Corp, and Sierra Metals. Business Monitor International (BMI) forecasted the sector’s value to climb from USD30.4bn in 2018 to USD43.8bn by 2022, averaging 10% annual growth.
Notwithstanding the growth of the sector, income inequality, poverty and environmental degradation continued to drive social protests in Peru, and there was rising local opposition on environmental grounds. For both workers and the local communities, it was important to have acceptable working conditions and environmental protection that could prevent health problems. According to the International Labour Organization (ILO) a large issue with regards to Peruvian workers was asbestos-related diseases and pneumoconiosis such as silicosis. As a response to this issue the country had launched a national program for the elimination of silicosis and prevention of other pneumoconiosis20.
An important development related to OHS occurred in August 2011, when Law 29783 on Safety and Health at Work was promulgated in Peru. The law paved the way for building a culture of prevention of occupational hazards in the country, and companies have been adapting OHS management systems to comply with the law21.
Chile
Chile’s GDP growth was 1.7% in 2017 and was expected to grow to 2.8% in 2020. The country had one of the most highly developed economies in the region, partly because of its copper production; however, Chile was progressively moving towards more consumer-based growth. Exports of minerals, wood, fruit, seafood, and wine were driving GDP growth. Mining was an important industry for the country. It was stated that approximately 9% of the world’s silver was mined in Chile, and 60% of this production was extracted from copper mines. Chile was the largest copper producer in the world, and owned 4.3% of the world’s gold reserves22. Chile’s mining industry value was expected to post robust growth over the coming years, increasing from
18 BMI, Labour Market Risk Report, Mexico, 2018, accessed May 29, 2018. 19 BMI, Mining Report, Peru, 2018, accessed May 29, 2018. 20 ILO, “Safety and Health at Work: A Vision for Sustainable Prevention” International Labour Organization 13.04.2, World Congress on Safety and Health at Work (August, 2014): 1-48. Assessed on April 25th, 2018. http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/ safework/documents/publication/wcms_301214.pdf 21 Ismael Cruz, Raul Huerta-Mercado, “Occupational Safety and Health in Peru,” Annals of Global Health 81, no. 4 (2015): 568-75. doi:10.1016/j.aogh.2015.08.027. Accessed on April 20th, 2018. https://www.sciencedirect.com/science/article/pii/S2214999615012436/pdfft?md5=62c37ef843c5a16c22793eeb685c4 238&pid=1-s2.0-S2214999615012436-main.pdf 22 Kaj Elgstrand, Eva Vingard, “Occupational Safety and Health in Mining: Anthology on the situation in 16 mining countries,” University of Gothburg 3.47.2 (2013). 1-86. Accessed on April 19th, 2018. https://gupea.ub.gu.se/bitstream/2077/32882/1/gupea_2077_32882_1.pdf
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USD25.3bn in 2018 to USD30.3bn by 2021.23. State-owned copper producer Codelco had a dominant position in Chile’s copper sector. Several major international mining companies were also present in Chile.
In August 2010, thirty-three Chilean miners were trapped 700 meters underground after a cave-in at the San José copper pit. While they were all rescued, due to the accident, occupational safety and health became a national priority. Among workers in the mining sector in Chile, the occupational diseases identified were mostly silicosis and noise-induced hearing loss. Both diseases, however, take a long time to become symptomatic, leading to under-diagnosis and under- reporting. Another important health challenge for Chilean mining was work at high altitude - many mining sites were over 3,000 meters over sea level and workers had to adjust to conditions with low oxygen.
Notwithstanding the importance of the mining industry, in Chile the construction industry had the country’s highest occupational risk, according to data from the Asociación Chilena de Seguridad24. The most common types of accidents observed in the industry were caused by falls from ladders, lifts, and scaffolds, the use of defective or negligently operated cranes, hoists and derricks, use of dangerous equipment, tools and machines and the use of explosive, corrosive and poisonous gas.
The leading OHS law in Chile was the Law No. 16744 which regulated the work accidents and occupational diseases. The Labour Code, reformed in 2012, completed the rules established by Law No. 16744 and set out a number of other labour provisions on child labour, pregnant workers, duration of the working day and other working conditions25.
The Asian market: focus on India
Over 2018-22, Emerging Asia – Southeast Asia, China and India – was expected to grow by an average 6.3% per year on the assumption that trade momentum holds, and domestic reforms continue26. India’s growth was expected to rise to about 7.3% between FY 2018-19 and FY 2022- 23, from the 6.8% average from FY 2011-12 to FY 2015-16. Increasing innovative activities in India were projected to contribute significantly to continued growth, and could also be directed to help address inequalities in growth and development26.
In India, the construction industry was the second largest employer after agriculture. The industry was expected to grow at an annual average of 6.3% between 2018 and 2026, with growth driven by the needs of urbanisation and industrial development trends. India’s construction and infrastructure industry remained dominated by domestic firms, while state-owned companies and government agencies were the primary financiers of projects. Moves to encourage foreign investment was promising for increased international competition in the future.27. Throughout the world, the construction area of civil engineering was one of the most hazardous industries28. The
23 BMI, Mining Report, Chile, 2018, accessed May 29, 2018. 24 Asociación Chilena De Seguridad (ACHS). Achs.cl. April 2015. Accessed June 13, 2018. http://www.achs.cl/portal/ACHS-Corporativo/Paginas/Estadisticas.aspx 25 ILO, Occupational safety and health, Chile, accessed May 2, 2018, http://www.ilo.org/safework/countries/americas/chile/lang--en/index.htm 26 OECD, Economic Outlook for Southeast Asia, China and India 2018: Fostering Growth Through Digitalisation, OECD Publishing, Paris, http://dx.doi.org/9789264286184-en. Accessed on April 20th, 2018, https://www.oecd.org/dev/SAEO2018_Preliminary_version.pdf 27 BMI, Infrastructure Report India, 2018, accessed May 12, 2018. 28 S. Kanchana, P. Sivaprakash, Sebastian Joseph. “Studies on Labour Safety in Construction Sites,” The Scientific World Journal 2015 (December 6, 2015): 1-6. doi:10.1155/2015/590810. Accessed April 17th, 2018. https://www.hindawi.com/journals/tswj/2015/590810/
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Indian construction labour force was 7.5% of the total world labour force in this industry and it contributed to 16.4% of fatal global occupational accidents. In the construction industry the possibility of a fatality was five times more likely than in a manufacturing industry.
The metal and mining industry of India had recorded a strong expansion in the recent past, with the expectation that India was to become the second-largest steel producer from 2015. Production volumes had also grown steadily during the period 2007- 201529. The mining industry presented many health and safety concerns for workers. Unsafe acts of worker were found to be the most critical factor in the development of accidents in mining sites, pointing to the need for training on OHS. A study on the occupational heat stress in the steel industry in Southern India affirmed that heat was a major physical hazard and that inappropriate thermal conditions can impact the health and productivity of workers30.
An OHS issue that was gaining increasing importance was the state of woman safety at the workplace in India. Episodes of harassment at workplace had led to nationwide debate on the issue.31. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, was enacted to ensure a safe working environment for women employees with all the necessary mechanisms for safety and security in place. Thus, it was important that the Act was implemented effectively.
Competitive Landscape32
The level of industry concentration for the Occupational Health and Safety Services was low, owing to the range of services provided, the diversity of markets served and the presence of many small companies within each service area. The four largest companies in the industry accounted for less than 10.0% of the total industry revenue in 2016. Companies in this industry competed on technical knowledge, skills and expertise for the right price. Although price was an important determinant of customer acquisition, reputation sometimes weighed heavier, as clients relied heavily on the quality of advice. A big portion of revenue was generated through referrals from past clients; thus, establishing high-quality reputation was of primary importance for the industry’s players. The many small-scale operators in the Occupational Health and Safety Services industry usually concentrated their activities in a narrow geographic market. Nevertheless, some of the industry’s largest operators, such as DuPont and Bureau Veritas, were multinational corporations.
E.I. duPont de Nemours and Co.
E.I. du Pont de Nemours and Company (DuPont) was headquartered in Wilmington, DE, and operated in more than 90 countries, employing 52,000 workers worldwide. The company had a
29 Shikha Verma, Sharad Chaudhari, “Safety of Workers in Indian Mines: Study, Analysis, and Prediction,” Safety and Health at Work 8, no. 3 (January 4, 2017): 267-75. Accessed April 15, 2018. doi:10.1016/j.shaw.2017.01.001. https://www.sciencedirect.com/science/article/pii/S2093791116302062 30 Manikandan Krishnamurthy, Paramesh Ramalingam, Kumaravel Perumal, Latha Perumal Kamalakannan, Jeremiah Chinnadurai, Rekha Shanmugam, Krishnan Srinivasan, and Vidhya Venugopal, “Occupational Heat Stress Impacts on Health and Productivity in a Steel Industry in Southern India,” Safety and Health at Work 8, no. 1 (November 3, 2016): 99-104. Accessed April 16, 2018. doi:10.1016/j.shaw.2016.08.005. https://ac.els-cdn.com/S2093791116302220/1-s2.0- S2093791116302220-main.pdf?_tid=e4cfbebd-d178-45b0-9fa3- 8c049d037d1a&acdnat=1528854896_42c03fa710a4cefb80c84d2610b1d94c 31 Arpinder Singh, Didar Singh, “Reflections on the state of women safety at the workplace in India: A report by Fraud Investigation & Dispute Services,” FICCI. (2017): 1-12. Accessed April 28th, 2018. http://www.ey.com/Publication/vwLUAssets/EY-reflections-on-the-state-of-women-safety-at-the-workplace-in- india/$FILE/EY-reflections-on-the-state-of-women-safety-at-the-workplace-in-india.pdf 32 This section draws on IBISWorld Industry Report OD5319, “Occupational Health & Workplace Safety Services in the US”, accessed April 12, 2018.
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diverse product portfolio, including products and services in multiple sectors such as agricultural, industrial biosciences, performance chemicals and materials, electronics and communications, and safety and protection sectors. The United States accounted for approximately 40.0% of the company’s revenue. The DuPont Sustainable Solutions (DSS) arm of the company operated in the Occupational Health and Workplace Safety Services industry. DDS sold training products and consulting services globally across 129 countries.
Bureau Veritas
Bureau Veritas was based in France and had more than 66,000 employees and 1,400 offices in 140 countries. Bureau Veritas was one of the world’s biggest companies in the field of conformity assessment and certification services in the areas of quality, health, safety, the environment and social responsibility. A major development over the past five years was the launch of a series of inspection services, including Bureau Veritas’ global key account strategy. This new offering provided quality, health, safety and environmental services for large multinational corporations looking to meet standards such as ISO 9001, ISO 14001 and OHSAS 18001 certifications. Such international health and safety standards were especially important to large companies, specifically those operating in the aerospace, agribusiness, automotive and transport industries.
Boreal Services Group: The Company
Boreal Safety Inc. was formed in 2013 in Edmonton, Alberta (Canada), and was renamed Boreal Services Group Inc. in 2014. The typical size of Boreal’s clients was 5-50 employees. The majority of Boreal’s clients were local (Alberta based) and many of them worked in the energy or construction industries with some of the highest safety standards in the world. Many of those clients worked for the big companies in their industry, such as Shell, CNRL or Suncor. They needed very strong safety programs in order to be able to bid on a job or to get onto their job sites. Often a safety program was part of their reputation and an important determinant of their ability to provide services to the big players in their field.
Boreal’s competitive advantage was in their personalized approach and one-on-one relationship with every client. Boreal prided themselves with word-of-mouth as the primary new customers acquisition method, as existing clients would happily recommend the company. Deidra Helmig, Boreal’s president and senior safety consultant, had a designation of Canadian Registered Safety Professional. She had also received training and certificate in psychological health and safety.
Boreal had three primary areas of services: safety consulting, safety engineering, and psychological health and safety. Within the safety consulting area, Boreal collaborated with the client’s team to build them a custom Safety Management System including a manual, forms and orientations. Boreal made sure the system was developed specifically for the client’s business, their industry, and their needs, but also that it was well within compliance of the province’s OHS legislation. Boreal also helped clients obtain or maintain their Certificate of Recognition (COR) or Small Employer Certificate of Recognition (SECOR) that proves the safety standards of the company, and ensured the client’s team had all the safety training they require. The safety engineering arm of the company helped clients whenever a temporary design, or engineering approval was required for a project. The Boreal team did a lot of inspections, such as ladder inspections or critical lifts, as they looked after areas such as fall protection, crane and rigging studies, engineered scaffold design, or design and analysis of temporary structures for construction.
Psychological health and safety was the newest addition to Boreal’s services. It was focused on promoting worker psychological well-being and to prevent harm to worker psychological health in
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negligent, reckless, or intentional ways. Boreal emphasized that psychological health and safety was embedded in the way people interact with one another on a daily basis, as it was part of the way working conditions and management practices are structured, and the way decisions are made and communicated. Boreal helped clients strengthen their psychological health and safety program through program development and implementation, gap analysis and evaluation of current programs, and coaching and training of management and supervisors. Boreal’s team looked at an array of factors inherent to a psychologically positive workplace, such as organizational culture, psychological and social support, civility and respect, growth and development, workload management, and psychological protection, among others.
The decision to diversify
While Helmig loved the work she did, she was also realizing that it was important for the long- term sustainability of Boreal to diversify its offerings. Alberta’s economy was highly dependent on the price of oil, and the majority of Boreal’s clients worked in the oil and gas industry. Helmig had already started to diversify the type of industry Boreal was serving and was currently working with clients in the not-for-profit sector, as well as the construction industry. Recently, the Alberta government had done a big revision of the OHS legislation. With the new Bill 30, it was legislated that any organization that has over 20 employees should have a written safety program. This was opening up a big new market locally for Boreal. But Helmig believed Boreal had something to offer beyond Alberta’s borders as well. Helmig had already taken a few steps to enter the international market. Recently she achieved certification as a Women’s Business Enterprise with WeConnect International, an organization that connects women-owned businesses to buyers around the world (specifically those that have supplier diversity programs). Helmig also attended a trade mission with Business Women in International Trade in 2017, where she made contact with potential clients in India, South Africa, and the US. Additionally, she had made contact with Trade Commissioners in Latin America (Mexico, Chile, Peru, Columbia).
Helmig was also in the process of designing new models for safety services. For instance, she was developing an online model of training and working with companies to have them develop a psychological health and safety program within their own company. With this new model, Boreal wouldn’t be doing the safety program for the clients, but would provide the steps the clients would follow to develop a policy and all of the safety procedures they may need. There would be five different modules that covered diverse range of topics - from harassment and discrimination to issues related to employees’ opportunities for growth and movement within the organization.
For Boreal’s international expansion, Helmig was also considering working with larger corporations in developing their contractor safety management expectations and providing resources for their contractors in building their program and meeting the requirements of their clients. This was a different model compared to the one-on-one local model used to deliver their current safety services, but Helmig thought this might be a more viable option internationally. In developing Boreal’s international strategy, Helmig needed to find answers to the following questions: What industry should we approach first? What country should we approach first? What are the occupational health and safety challenges that workers in these countries face, and how can we build a product/service that might bring resolution to these challenges?
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