Early Birds, May 19th, 2022

Gentlemen,

I’m trapped in Toronto at Pearson for the second time in 5 days, which provided me with the opportunity I needed to clean up and send these minutes out.

My tip to anyone traveling is configure your trip to avoid Toronto. It’s actually worth more money to go around. The staff her are doing their best with what they have, but they’re badly understaffed, delays are literally happening from every direction inbound and outbound, security is inconsistent and a nightmarish, Orwellian delay on your way to a gate.

I had one flight canceled on the way out which I learned about upon landing (COVID-related, so sorry, we won’t pay for your hotel…), and another delayed flight yesterday on the way home, causing me to miss my flight to Calgary last night by minutes, and on today’s flight, they’ll have no room for carry on if you’re boarding in Zone 5, so you’ll have to trust them with your luggage.

I know you’ve heard the advice before, but it’s never been more relevant, avoid using Pearson as a pivot in your travel plans if at all possible.

Early Birds Minutes May 19, 2022

Dan Kennelly - away June 2nd for a one-week customer visit in Victoria/Esquimalt. Inspecting a new shipment for new ice breakers for DND.

Then in June, more shipbuilding inspections, etc.

Working with CSpan to coordinate the logistics, including traceability, fabrication, storage, etc. Warehousing in Edmonton and then shipping back to the coast for building the ships.

Tony Fisher - reported that at the Winston golf course, a new hybrid F150 was stolen and caught on camera. They just climbed in and stole it, knew the codes and drove away.

Don Davis - talked about how companies come up with great ideas. He used to lead strategic retreats where the whole team, all levels of people within the company who were present contributed. There’s no such thing as a bad idea. One of Don’s main goals was to learn things he didn’t know.

He also recalled that among the inspirations he drew from, P&G had a “wall of failure” to honour ideas and attempts, since they all led forward.

Brad Pachal - when done his full-time job - this Reno project he’s been working on, he goes to his son’s place - Tyson- to help with a basement Reno. Father of the year reward program points for that one!

Then again, there’s no lack of incentive since his son’s family is living at his place, complete with 2-year-old twins and a 7-year-old.

Reflecting on supply chain issues again this week, Benjamin Moore paint, pure white. Not in stock. They’re having to mix pigments to come up with pure white.

Sean Baylis - markets zigging and zagging, yesterday (May 18th) a zag! 

Walmart and target - both took a hit yesterday. Employees and logistics costs.

Not a good day for retail, retail index down 5% yesterday. 

Consumer spending patterns changing. More experience-based than goods-based.

Lower income folks impacted first and hardest. Middle class still spending money, especially the savings accumulated during the pandemic. In Canada it’s mostly being spent on their houses.

Probably another 50-basis point coming from the central bank (that prediction came true!), but they may ease off after that.

Just back from San Francisco, which was hopping! The economy there still seems to be full blast.

Dwayne Vinck - congrats to Rachel Notley on winning the battle of Alberta! 

It was almost unimaginable that the ruling party stripped down a sitting premier. Oh wait, Alison Redford. Oh Wait, Ed Stelmach…Oh wait….

Wayne mentioned a junior that was undervalued but seeing good things, BUT they lack an institutional following, so he was working on that to help elevate their profile to help them gain value and a reputation.

Also, since I’m posting the minutes a week later, we know how this turned out….