Progress House Development Corporation.
The Progress House Development Corporation (hereafter referred to as “Progress House”) represents a new direction in economic development and our response to the Pine Beetle Epidemic economic transition. Operating as a non profit corporation governed by a Board of Directors comprised of regional stakeholders and financial interests, Progress House works to find solutions to problems which provide obstacles to orderly economic growth and to preserve the structural integrity of strategic elements of the industrial base of Northern BC.
In addition to this, Progress House looks to the future and identifies gaps in service and opportunities which will continue to appear during the economic transition period we are now facing and beyond.
Progress House takes a strategic view of the economic landscape, recognizing the need to support the ongoing viability of core industries and infrastructure.
The Progress House Prototyping Incubator and Materials Testing Laboratory initiatives are examples of the direct proactive approach to economic development that Progress House represents.
These two initiatives are components of the Progress House platform. In addition to these functions, Progress House also works to develop solutions to issues such as access to finance and working capital for SMEs as well as research into viable market opportunities currently unavailable to the region’s SME base.
Progress House Prototyping Incubator
The Progress House project has evolved from its start as a small group with representation from industry, engineering and economic development identifying the obstacles currently in place to the development of regional capacity to establish a vibrant bio-fuels appliance manufacturing industry in Northern BC.
The opinion expressed by Progress House is that stakeholders in Northern BC have a vested interest in ensuring that appliances are produced domestically so that the bio-fuels production industry (such as wood pellet producers) have a stable base of domestic customers over the long term.
Progress House wishes to establish the prototyping incubator to:
Green Industry Development
Take advantage of senior government policies relating to green energy initiatives to create a sustainable boutique manufacturing base in Northern BC which has the capacity and equipment / services available to it to allow for timely and cost effective innovation.
Leverage the opportunities presented by marketing the products of the proposed bio-fuels appliance manufacturing base, namely green energy production solutions, to wider and eventually global markets in the interest of industry sustainability.
Provide a resource to Northern Communities wherein various approaches to green energy production could be offered, with an informed presentation of the pros and cons of each method, taking into account the subject region’s biomass characteristics, to assist the communities in making an informed decision of which system best suits their needs for not only electrical / heat applications, but also the larger issues of biomass use.
Ensure qualified operators and service personnel are available for the green energy industry. Bio Fuel appliances for the most part are essentially boilers and require operators that meet the applicable industry standards. Ensuring sufficient qualified employees are available is crucial for success of the green energy strategy.
Champion the development of emerging industries, such as wastewater treatment so that Northern BC becomes a lead supplier of environment inspired industrial technologies
Support to Mining, Oil and Gas
Through prototyping services and the application of CAD/CAM production by the region’s shops, Progress House will provide valuable support to the mining and oil and gas industries through access to rapid prototyping services for the design of such consumable items as valves and limiters which are essential for the continued operation of the oil and gas industry.
The Importance of Metal Trades
“Economic renewal, in its truest form, is derived through reflection of the nature and practice of work. In the context of the village or market town, the type and style of livelihood conducted in a given area to a great degree, defines the quality of life experienced by the residents. In short, the livelihood of a region will over time define its people. “
Progress House 2007.
Progress House views the development and maintenance of the metal trades in Northern BC as a capacity issue related directly to the scope and scale of success which will be experienced in the transition of the economy of Northern BC. Whether economic transition is manifested in agriculture, resource extraction or manufacturing: metal trades play a pivotal role, a building block of the Northern BC economy.
Industrial Value Chain Development
Through the introduction of the Greater Prince George Manufacturer’s Initiative, Progress House will promote the concept of collaborative advantage to the region’s metal shops, creating a value chain as follows:
Identified Need – Prototyping – Parts Making – Fitting and Assembly – Distributor / User
The various subscribers will be tied together through the use of an internet based order and specification system. Such a system will provide for rapid prototyping and production capacity in line with the emerging requirements of the region.
The subscribers will operate in a multi function / multi product environment where need and providing industrial solutions will drive the network. As the network will have prototyping capacity, it will be able to reinvent itself in terms of product offerings on an ongoing basis.
Materials Testing Laboratory
Progress House wishes to establish a materials testing laboratory to:
Bio Fuel Testing
Organically based fuels provide varying degrees of heat value and it can be anticipated that Pine Beetle affected wood fibre as it degenerates will have a range of heat values. This lack of consistency could lead to serious challenges in meeting the requirements of long term contracts for bio fuels where energy is sold by its heat values. The materials testing lab will provide the region with the ability to monitor the quality of the biofuel being produced in the area and research blending of bio fuels (such as wood and charcoal in pellets) to meet the specifications of appliance needs for a variety of applications.
Examples of differing specifications are pellet heat values for use in the production of heat versus the production of steam.
Water Testing
Water testing capabilities will represent another building block towards the emergence of
a wastewater treatment industry as well as water testing for all domestic and industrial uses.
Financial Services
Progress House acknowledges the challenges faced in accessing investment capital and work in progress financing and will work with stakeholders to develop progressive financing options for innovators, manufacturers and their products.
Production Backed Investments
Progress House promotes the concept of the development of Production Backed Investments. These investment vehicles, in various forms based on application, provide funds to complete projects and produce goods to order. The essential purpose of this family of investments is to provide work in progress funding to empower SMEs to participate in value chain production and collaborative projects.
On a discount system, value is paid upon the individual SME's completion of their portion of the work, providing liquidity for work completed. As capital is not pooled in net trade accounts, it flows directly in proportion to the rate of production / completion. Such a discount flow system will amplify the effectiveness of capital deployed as once the project is finished and the interim funding repatriated, it can be redeployed to the next task.
Utilizing this method will achieve an additional benefit in as much as the financing institution/ investor will achieve increased yields as the efficiency of the value chain is improved, hence "finance" has a direct stake in assisting the participants in becoming more efficient.
Financing options in development currently are:
Research into the unregulated use (under 50 subscribers) of limited partnerships
as a value chain project financing vehicle.
One of the challenges facing successful value chain development is the equitable distribution of the profits of the project. Why would a businessperson participate in a collaborative project if there was not an expectation of equitable return? Trying to achieve this through price negotiation will lead to disparities for the participants as value added multiples increase with the components which are more specialized.
An example of this is the differring value multiples for the participants in the current lumber industry; and the resultant margins experienced from log harvester to moulder /finisher.
Utilization of limited partnerships as an investment vehicle or production backed investment may provide a solution to this problem in some instances.
As this concept is in the reasearch stage, the role played by Progress House in the ongoing operation of any resultant program is undetermined.
Assist SMEs in getting access to public finance
A recent development in public financing opportunities is the development of the CNQ national exchange. This junior stock exchange is well suited for small cap projects,in which category most green industrial opportunities lie.
Progress House's role will be in the compliance area, assisting companies in becoming "market ready".
As an economic development corporation, Progress House will not express any opinion on the relative merits or investment viability of a given SME.
The establishment of a delivery agent network for community bond issues
A review of the offerrings of the Municipal Finance Authority reveal that community bond issues can be developed and used as an alternative source of financing for civic projects.The obstacle is the lack of a delivery agency system to distribute the bond offerrings.
Progress House will work with non profit economic development groups to create a delivery agency network for Community Bond issues
Market Support
While global opportunities to take advantage of the cumulative economic assets of Northern BC are evident, the region is left without the capacity to develop the value chains that would be required to take maximum advantage.
Consider these recent scenarios;
Due to the uncertainty caused by volitile oil prices, a barge towing operation on the Mississippi River would like to convert a number of its tugs to bio fuel power as long as the system is sustainable.
Could we take advantage of this?
The United Nations has a program to subsidize the production of cooking fuel for the third world. Currently the dominant cooking fuel is charcoal. Their reasoning for this program is their wish to take the pressure off areas of the world that face desertification due to the scavenging for organic material to be used as fuel.
Could we use our forest residue to make cooking fuel for the third world and could we build a sustainable value chain for this project in negotiation with the UN?
Carbon composite textile manufacturing is an emerging industry of the 21st Century. Used currently in aircraft production, there is growing interest in utilizing these composites in automobile production to reduce the weight of vehicles.
Can we create a value chain from wood residue to carbon composite production in concert with the auto industry to provide more fuel efficient cars?
A third world country has need of a gasifier or other technology to utilize rice husks in the production of rotary power for irrigation pumps.
Can we design a solution to this problem?
These are examples of some projects where Progress House may work in concert with local stakeholders to fill identified needs and work to build a value chain of the appropriate scale to meet the need.
Progress House will earn commissions paid on the resultant revenues of the projects it brings to fruition.
Government Procurement
Progress House views strategic use of government procurement as an economic development tool as one of the necessary aspects of an effective economic transition. Government contracts and orders provide a base for SME development and expansion that is reliable and certain, the conditions required for business to confidently move into new fields. Progress House will promote this view and will work to ensure that Northern BC receives its proportionate share.
Trust as it relates to the health of the economy
Recent academic writings on supply management have identified Trust as part of the components which are required to develop a sustainable and efficient value chain. Progress House will promote the principles of collaborative advantage and will provide relevant examples in its efforts to nurture and develop Trust in the economic landscape of Northern BC.
The Future
In the future Progress House will work in partnership with its clients and subscribers in value chain development related to other industrial categories.
Progress House will become a technology transfer centre where new technologies and methods are made available to SMEs and communities in the most cost effective manner possible. Progress House will operate as the R&D department of many SMEs located in Northern BC providing consultation and prototyping services in the interests of maintaining a competitive edge.
Comments?
The Progress House Development Corporation (hereafter referred to as “Progress House”) represents a new direction in economic development and our response to the Pine Beetle Epidemic economic transition. Operating as a non profit corporation governed by a Board of Directors comprised of regional stakeholders and financial interests, Progress House works to find solutions to problems which provide obstacles to orderly economic growth and to preserve the structural integrity of strategic elements of the industrial base of Northern BC.
In addition to this, Progress House looks to the future and identifies gaps in service and opportunities which will continue to appear during the economic transition period we are now facing and beyond.
Progress House takes a strategic view of the economic landscape, recognizing the need to support the ongoing viability of core industries and infrastructure.
The Progress House Prototyping Incubator and Materials Testing Laboratory initiatives are examples of the direct proactive approach to economic development that Progress House represents.
These two initiatives are components of the Progress House platform. In addition to these functions, Progress House also works to develop solutions to issues such as access to finance and working capital for SMEs as well as research into viable market opportunities currently unavailable to the region’s SME base.
Progress House Prototyping Incubator
The Progress House project has evolved from its start as a small group with representation from industry, engineering and economic development identifying the obstacles currently in place to the development of regional capacity to establish a vibrant bio-fuels appliance manufacturing industry in Northern BC.
The opinion expressed by Progress House is that stakeholders in Northern BC have a vested interest in ensuring that appliances are produced domestically so that the bio-fuels production industry (such as wood pellet producers) have a stable base of domestic customers over the long term.
Progress House wishes to establish the prototyping incubator to:
Green Industry Development
Take advantage of senior government policies relating to green energy initiatives to create a sustainable boutique manufacturing base in Northern BC which has the capacity and equipment / services available to it to allow for timely and cost effective innovation.
Leverage the opportunities presented by marketing the products of the proposed bio-fuels appliance manufacturing base, namely green energy production solutions, to wider and eventually global markets in the interest of industry sustainability.
Provide a resource to Northern Communities wherein various approaches to green energy production could be offered, with an informed presentation of the pros and cons of each method, taking into account the subject region’s biomass characteristics, to assist the communities in making an informed decision of which system best suits their needs for not only electrical / heat applications, but also the larger issues of biomass use.
Ensure qualified operators and service personnel are available for the green energy industry. Bio Fuel appliances for the most part are essentially boilers and require operators that meet the applicable industry standards. Ensuring sufficient qualified employees are available is crucial for success of the green energy strategy.
Champion the development of emerging industries, such as wastewater treatment so that Northern BC becomes a lead supplier of environment inspired industrial technologies
Support to Mining, Oil and Gas
Through prototyping services and the application of CAD/CAM production by the region’s shops, Progress House will provide valuable support to the mining and oil and gas industries through access to rapid prototyping services for the design of such consumable items as valves and limiters which are essential for the continued operation of the oil and gas industry.
The Importance of Metal Trades
“Economic renewal, in its truest form, is derived through reflection of the nature and practice of work. In the context of the village or market town, the type and style of livelihood conducted in a given area to a great degree, defines the quality of life experienced by the residents. In short, the livelihood of a region will over time define its people. “
Progress House 2007.
Progress House views the development and maintenance of the metal trades in Northern BC as a capacity issue related directly to the scope and scale of success which will be experienced in the transition of the economy of Northern BC. Whether economic transition is manifested in agriculture, resource extraction or manufacturing: metal trades play a pivotal role, a building block of the Northern BC economy.
Industrial Value Chain Development
Through the introduction of the Greater Prince George Manufacturer’s Initiative, Progress House will promote the concept of collaborative advantage to the region’s metal shops, creating a value chain as follows:
Identified Need – Prototyping – Parts Making – Fitting and Assembly – Distributor / User
The various subscribers will be tied together through the use of an internet based order and specification system. Such a system will provide for rapid prototyping and production capacity in line with the emerging requirements of the region.
The subscribers will operate in a multi function / multi product environment where need and providing industrial solutions will drive the network. As the network will have prototyping capacity, it will be able to reinvent itself in terms of product offerings on an ongoing basis.
Materials Testing Laboratory
Progress House wishes to establish a materials testing laboratory to:
Bio Fuel Testing
Organically based fuels provide varying degrees of heat value and it can be anticipated that Pine Beetle affected wood fibre as it degenerates will have a range of heat values. This lack of consistency could lead to serious challenges in meeting the requirements of long term contracts for bio fuels where energy is sold by its heat values. The materials testing lab will provide the region with the ability to monitor the quality of the biofuel being produced in the area and research blending of bio fuels (such as wood and charcoal in pellets) to meet the specifications of appliance needs for a variety of applications.
Examples of differing specifications are pellet heat values for use in the production of heat versus the production of steam.
Water Testing
Water testing capabilities will represent another building block towards the emergence of
a wastewater treatment industry as well as water testing for all domestic and industrial uses.
Financial Services
Progress House acknowledges the challenges faced in accessing investment capital and work in progress financing and will work with stakeholders to develop progressive financing options for innovators, manufacturers and their products.
Production Backed Investments
Progress House promotes the concept of the development of Production Backed Investments. These investment vehicles, in various forms based on application, provide funds to complete projects and produce goods to order. The essential purpose of this family of investments is to provide work in progress funding to empower SMEs to participate in value chain production and collaborative projects.
On a discount system, value is paid upon the individual SME's completion of their portion of the work, providing liquidity for work completed. As capital is not pooled in net trade accounts, it flows directly in proportion to the rate of production / completion. Such a discount flow system will amplify the effectiveness of capital deployed as once the project is finished and the interim funding repatriated, it can be redeployed to the next task.
Utilizing this method will achieve an additional benefit in as much as the financing institution/ investor will achieve increased yields as the efficiency of the value chain is improved, hence "finance" has a direct stake in assisting the participants in becoming more efficient.
Financing options in development currently are:
Research into the unregulated use (under 50 subscribers) of limited partnerships
as a value chain project financing vehicle.
One of the challenges facing successful value chain development is the equitable distribution of the profits of the project. Why would a businessperson participate in a collaborative project if there was not an expectation of equitable return? Trying to achieve this through price negotiation will lead to disparities for the participants as value added multiples increase with the components which are more specialized.
An example of this is the differring value multiples for the participants in the current lumber industry; and the resultant margins experienced from log harvester to moulder /finisher.
Utilization of limited partnerships as an investment vehicle or production backed investment may provide a solution to this problem in some instances.
As this concept is in the reasearch stage, the role played by Progress House in the ongoing operation of any resultant program is undetermined.
Assist SMEs in getting access to public finance
A recent development in public financing opportunities is the development of the CNQ national exchange. This junior stock exchange is well suited for small cap projects,in which category most green industrial opportunities lie.
Progress House's role will be in the compliance area, assisting companies in becoming "market ready".
As an economic development corporation, Progress House will not express any opinion on the relative merits or investment viability of a given SME.
The establishment of a delivery agent network for community bond issues
A review of the offerrings of the Municipal Finance Authority reveal that community bond issues can be developed and used as an alternative source of financing for civic projects.The obstacle is the lack of a delivery agency system to distribute the bond offerrings.
Progress House will work with non profit economic development groups to create a delivery agency network for Community Bond issues
Market Support
While global opportunities to take advantage of the cumulative economic assets of Northern BC are evident, the region is left without the capacity to develop the value chains that would be required to take maximum advantage.
Consider these recent scenarios;
Due to the uncertainty caused by volitile oil prices, a barge towing operation on the Mississippi River would like to convert a number of its tugs to bio fuel power as long as the system is sustainable.
Could we take advantage of this?
The United Nations has a program to subsidize the production of cooking fuel for the third world. Currently the dominant cooking fuel is charcoal. Their reasoning for this program is their wish to take the pressure off areas of the world that face desertification due to the scavenging for organic material to be used as fuel.
Could we use our forest residue to make cooking fuel for the third world and could we build a sustainable value chain for this project in negotiation with the UN?
Carbon composite textile manufacturing is an emerging industry of the 21st Century. Used currently in aircraft production, there is growing interest in utilizing these composites in automobile production to reduce the weight of vehicles.
Can we create a value chain from wood residue to carbon composite production in concert with the auto industry to provide more fuel efficient cars?
A third world country has need of a gasifier or other technology to utilize rice husks in the production of rotary power for irrigation pumps.
Can we design a solution to this problem?
These are examples of some projects where Progress House may work in concert with local stakeholders to fill identified needs and work to build a value chain of the appropriate scale to meet the need.
Progress House will earn commissions paid on the resultant revenues of the projects it brings to fruition.
Government Procurement
Progress House views strategic use of government procurement as an economic development tool as one of the necessary aspects of an effective economic transition. Government contracts and orders provide a base for SME development and expansion that is reliable and certain, the conditions required for business to confidently move into new fields. Progress House will promote this view and will work to ensure that Northern BC receives its proportionate share.
Trust as it relates to the health of the economy
Recent academic writings on supply management have identified Trust as part of the components which are required to develop a sustainable and efficient value chain. Progress House will promote the principles of collaborative advantage and will provide relevant examples in its efforts to nurture and develop Trust in the economic landscape of Northern BC.
The Future
In the future Progress House will work in partnership with its clients and subscribers in value chain development related to other industrial categories.
Progress House will become a technology transfer centre where new technologies and methods are made available to SMEs and communities in the most cost effective manner possible. Progress House will operate as the R&D department of many SMEs located in Northern BC providing consultation and prototyping services in the interests of maintaining a competitive edge.
Comments?
