“Our area of expertise is bulk material handling equipment, so conveyors, apron feeders and belt feeders, and other related equipment,” explains IEM President Chuck Walls. “We design and build spile bar systems which act as isolation gates in mining operations. We also design and manufacture ball handling systems for mining operations and we build rotary de-barkers for forest product manufacturers. We build the biggest rotary de-barkers in the world.”

A spile bar system enhances safety in ore bins and transfer chutes at mines, while ball handling systems are used to store steel grinding balls for mining applications. As their name implies, de-barkers remove bark from logs. IEM has made de-barkers that can process 450 cubic meters of wood per hour or more.

The company’s main markets include mines, oil and gas operations, and forestry/wood handling. Cement and aggregate plants, port infrastructure, and grain handling facilities represent other sectors for which IEM has built products.

Forging a strong team
The business was founded in 1953 under the name Industrial Equipment Company (IECO). Half a century after the launch, John Hards and Joe Wurz purchased the machinery design and manufacturing division of IECO. The new owners changed the name of their acquisition to Industrial Equipment Manufacturing Ltd. and introduced an employee-ownership plan. At present, “maybe 95 percent,” of IEM staff own shares, Walls explains, with ownership of shares limited to employees only.

IEM has roughly 55 employees at present, up from around 50 at this time last year, and about half of these workers belong to the United Steelworkers (USW) union. The company typically hires newly graduated or junior engineers who can be trained in the company’s practices, such as its hands-on approach. “Our engineers can walk into the shop, see what they’ve designed, see how it’s being built,” says Walls. Here, shop floor staff can directly approach the engineers to refine designs or suggest ideas, a collaborative setup that gives IEM a competitive advantage over companies that perform engineering work in one country and manufacturing in another, notes Walls.

IEM is Engineering and Manufacturing ISO 9001:2015 certified and the company’s welding services are certified by the Canadian Welding Bureau (CWB) to CSA W47.1 and CSA W47.2 standards, for steel and aluminum respectively. The IEM Vice President of Manufacturing is tasked with ensuring that quality benchmarks are met, while the company’s welding supervisor, who is certified in non-destructive testing procedures, conducts extensive weld-related tests.

Safety-wise, IEM employs toolbox talks and strict hazard-avoidance procedures, says Walls. Employees also rely on the company’s close-knit spirit to keep them safe. This is “not a big operation,” so everyone knows everyone else, as well as their spouses and children, says Walls. “We believe that the most important aspect of safety in any operation is—and it sounds corny—how much you care about the people you’re working beside. We find that our senior folks are always looking out for our junior people, making sure they’re doing things right, not taking shortcuts,” he continues.

Competing on quality
The company is based out of a 50,000-square-foot facility conveniently located near both Vancouver International Airport and major ports. While many of its clients are Canadian, IEM has sold equipment to companies with operations in Mongolia, Indonesia, and South America as well. It has also done “a little bit in Europe, and the U.S. of course,” adds Walls. “We specialize in mechanical design, while anything structural or electrical, we would subcontract out.”

IEM also stocks a huge number of spare parts, primarily to provide replacements for its own equipment. For example, it designs and manufactures specialized equipment for surface mining operators in Fort McMurray, Alberta, the epicenter of that province’s oilsands industry. Among other items, IEM supplies specialty equipment including plows, belt cleaners, and pulley cleaners. IEM uses a welding robot built to create wear parts that address the challenges of working with bitumen. Spare parts for such gear might be hard to find outside of IEM.

Walls acknowledges that competition within the bulk equipment handling space can be brutal. “We compete against some very, very large companies [including some] that manufacture all over the world, where the wages are much lower and it’s much cheaper to produce equipment… We can compete with them because of the custom engineering facet of our business,” he shares.

For example, “If you want an overland conveyor, to go from A to B, you go to [the competition]. But if you want three or four kilometers of underground conveyor that’s going to be attached to the ceiling of your mineshaft, you will come to us.”

IEM’s longevity also stems from its reputation for making quality products. “We can’t afford to produce sub-par equipment,” says Walls. “Our quality standards are very high, and we provide excellent after-sales service. What we find is, once we get a customer, they keep coming back. We’re not generally the cheapest when it comes to sticker price, but we compete very well on total cost ownership.”

Wins and challenges
Clearly, clients like what IEM has to offer, as the team has taken on a number of major projects over the decades. The company was hired to build conveyors and galleries—the enclosed structures that go around conveying systems to provide protection from the elements—for a company operating in Nunavut, Canada. Construction was done in sections, which were fitted together in IEM’s shop then painstakingly shipped to the client via barge and ice highway, among other methods. “That was a pretty cool project and quite challenging,” recalls Walls.

IEM has also built cable reel structures for storing ship cables for a major maritime company in British Columbia building supply ships for the Canadian navy. IEM has also designed and manufactured massive de-barkers for a forestry business in Michigan and a pulp and paper companies in Alberta and B.C. Company engineers frequently attend mining and other industry trade shows to meet existing and potential customers face-to-face.

Given the nature of IEM’s work, it is no surprise that Walls cites “the cyclical nature of the natural resources business,” as the company’s biggest challenge while, interestingly, tariffs imposed by the White House have benefitted IEM in some ways. The company has taken on some non-American customers that are eager to find suppliers elsewhere. “We just signed a contract with a small company that builds water treatment systems. They were looking for an alternative tank supplier [to their normal U.S. supplier], because they sell both into the U.S. and Canada, and it’s much simpler for them to have [their systems for Canadian customers] built in Canada,” says Walls.

Embracing the future
Going forward, the company is looking into using artificial intelligence (AI) in its operations. Design work is currently performed with 3D design software, and IEM is open to new technology. “We’ve contracted an AI expert to come in this summer and train some of our people,” Walls shares. “They will look at some of our manufacturing processes and our drafting to see if there are some opportunities to improve quality and efficiency.”

As for the business itself, he personally would like to see the company grow over the next five years, perhaps through acquisitions. One plan would be to buy a fabrication firm, then incorporate IEM’s engineering methodologies into the work practises of the new purchase. Vertical integration is another possibility under consideration. “We spend a lot of money on painting, for instance. As the company starts to build some capital, I wouldn’t mind seeing us invest in a paint company or another kind of supplier to us, and running the companies separately, but owned by IEM.”

Given the company ownership model, any decisions regarding the future must be endorsed by an employee-run board. Naturally, the board is averse to risky ventures that might jeopardize the future of the business if things do not go as planned, notes Walls—and he is fine with this, viewing employee-ownership as a strength.

“It’s nice to work for a company where, when we succeed, all the employees succeed with us—not on a figurative level, but on a very real financial level.”

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Pucci, before becoming Lands & Economic Development Manager at the City of Terrace, built a reputation for strategic engagement in business development. A skilled and passionate negotiator, his résumé includes work with government and Indigenous partners, serving as CEO of Prince Rupert International Airport, and working at Prince Rupert’s Port, Canada’s fastest-growing container terminal. His current role is generating municipal revenue and acquiring and developing municipal lands for the City of Terrace.

A prime location
“We are the Fort McMurray of the 1990s,” says Pucci, referring to the Albertan city which became legendary for its powerful petroleum sector. To Michael Pucci, and many others, the City of Terrace is similarly on the brink of overwhelming success, for a variety of reasons. The city’s population of just 13,000 is small, but its economic and service draw is closer to 40,000. The business, investment, and growth potential of the area is enormous.

When discussing Terrace, a word frequently used is “hub.” The city is easily accessible by the Skeena River and multiple highways (16, 113, and 37) and is just 144 km east of Prince Rupert. Terrace is also linked to passenger rail, bus service, the CN mainline—the only rail line in northern British Columbia—and the Northwest Regional Airport Terrace-Kitimat. Annually, the CN rail line moves about $65 billion worth of Canadian economic value to and from the Port of Prince Rupert through the City of Terrace.

Northern BC is sparsely populated, with about 100,000 residents in a 1,000 km range from Prince Rupert to Prince George. However, Terrace lies along the Trans-Canada corridor, making it a centre for shopping, healthcare, financial services, and other amenities that many similar communities lack. People drive hundreds of kilometres to visit Terrace. In 2024, a study showed that 1,000 regional inhabitants visit the city in any given week, year-round, because of its hub status.

“Tourism accounts for about $84 to $86 million worth of our economy,” says Pucci, “and that includes local tourists who come to see their doctor or optometrist, or go to the grocery store, those kinds of things.” Every year, millions of additional dollars flow into the city thanks to its year-round tourism market. In summer, many are drawn by ocean fishing, boating, and fly-fishing for trout and salmon. In winter, with some of the deepest snowpacks in Canada, they flock to Terrace for skiing and heli-skiing.

Despite its many attractions, the City of Terrace knows success doesn’t happen overnight, and understands that local government must also make an effort at every level. Pucci and his team have exchanged views with Prime Minister Mark Carney three times in the past few months concerning development initiatives. And despite comparisons of Terrace’s emergence with that of Fort McMurray in the 1990s, Pucci understands the importance of proceeding strategically.

“We know from lessons learned where we need to jump over the puddle instead of walking through, and we may need help doing that,” he says. “But we have that type of opportunity here that’s outside of our taxable jurisdiction to the same level of federal economic mover and shaker in a small town. And again, 15 or 20 years from now, we will hopefully have done it better.” He notes that in the ’90s, owing to the oil industry, Fort McMurray’s high local wages also created inflated prices for everything from housing to groceries, and he says measures need to be put in place to ensure this doesn’t happen in Terrace.

Welcoming diverse industries
Many years ago, people and goods such as logs were transported along the Skeena River. In time, this led to the development of railways, roads, and a strong forestry industry. And then, to meet the needs of forestry companies, Terrace transformed itself into a service hub as truck-servicing facilities and heavy industrial groups, like Caterpillar, established themselves in the area. Every day, about 200 Class A forestry trucks roll through.

In the past few years, intent on not focusing too narrowly, Terrace has modernized, invested, and expanded wherever opportunities arise, and sees a future serving multiple industries. Truck drivers need places to sleep and eat, prompting investment in new hotels. And while the forestry industry is growing and evolving, Pucci says Terrace is well-suited to helping related businesses expand locally. Wood mills need forklifts to move product, and manufacturers to make forklifts.

“There are many different industries, but the idea is to look at the core things we do well and ask, ‘How do we participate in those industries?’” he says. “That’s an important reason why we’re able to create and maintain our hub status.”

Together with forestry, the City of Terrace is promoting itself to the mining industry. After Northern Ontario, Northern BC is the hottest mining hub in North America. One of the world’s largest gold deposits was uncovered nearby, and 60 percent of BC’s critical minerals are found within a few hours of Terrace. Some mines are at the permitting stage, while others are in operation, and as these mines develop, they will need more equipment and local labour.

“It’s very top-of-mind right now, and the federal government has highlighted that area as a key revenue source for the Canadian economy,” Pucci shares. “That is beyond the fact that it means a lot to the local economy, because mineral extraction provides a lot of royalties to the federal government. It’s an important component.”

One mine in BC’s Golden Triangle, Red Chris, is on Canada’s Major Projects Office list, and Terrace is well-equipped to meet the logistical needs of this mine site and many others across BC. These sites, along with other major energy projects such as wind, oil, gas, and ports, are estimated to bring $230 billion in affordability, security, and diversification.

Indeed, Northern British Columbia is known as the powerhouse of the province’s mining industry, and it is projected that the construction of 24 mines in the area could realize $69 billion in economic activity for British Columbians from gold, copper, silver, zinc, and other minerals. More mines, of course, mean greater opportunities for related businesses, like depots to serve trucks, commercial vehicle inspection stations, food services, and accommodation.

“We might not see Caterpillar making new diggers here, but will they have a service shop?” asks Pucci. “It makes a lot of sense to have some sort of service depot or affiliation. Will they need certain styles of flatbed trucks to move equipment in the area? One hundred percent.”

Industrial opportunities
When he became Lands & Economic Development Manager, Michael Pucci was intrigued by one of Terrace’s key assets, the Skeena Industrial Development Park (SIDP). The park is remarkable for many reasons, including its size. With over 1,200 acres of continuous greenfield industrial-zoned land, SIDP is larger than Vancouver’s 1,000-acre Stanley Park.

Representing a joint venture and revenue-sharing partnership with Kitselas First Nation, SIDP is ideal for operations large and small. It is close to the Port of Prince Rupert, which is Canada’s third-largest container terminal and the home of the nation’s newest liquefied petroleum gas (LPG) terminal.

“The involvement of First Nations in British Columbia’s economic development, and where that’s going, is something that large and global companies don’t have the strongest understanding of,” says Pucci. “And so, this is a fantastic way to put industry at comfort; that there’s a way to positively engage, as well as contribute to the overall benefit of our region.”

On the highway and adjacent to the Northwest Regional Airport, SIDP is accessible to every part of British Columbia. And with both the transmission and distribution of natural gas and electricity, it has all the base assets for petroleum, manufacturing, logistics, and transportation businesses. Just 10 minutes from nearby communities, it’s conveniently placed. “It is the future of Terrace,” says Pucci, “and it doesn’t have that urbanization concern.”

The Skeena Industrial Development Park may be the clearest expression yet of Terrace’s ambitions. With its scale, strategic location, infrastructure, and partnership with Kitselas First Nation, it offers the city an opportunity to attract investment while building on the strengths that have made Terrace a regional hub. More importantly, it reflects a broader vision that is not dependent on any single industry or project.

For Pucci and the City of Terrace, the goal is not simply to capitalize on a moment of economic momentum, but to build an economy capable of sustaining that momentum for decades to come. Forestry, mining, energy, transportation, tourism, manufacturing, and logistics all present opportunities, but the real advantage lies in the connections between them—and in the businesses and services that emerge around them. By identifying what Terrace does well and positioning itself to support a diverse range of industries, the city is working to turn its geographic and infrastructural advantages into lasting economic value.

That approach also means learning from the experiences of other resource-driven communities. Terrace has an opportunity to welcome major investment without losing sight of affordability, livability, Indigenous partnership, or the needs of the residents and businesses that already call the region home. The ambition is considerable, but so is the opportunity: to grow strategically rather than simply quickly. Terrace has the chance to chart its own course—one that embraces its role as a northern hub, welcomes diverse industries, and creates prosperity that extends well beyond any single boom.

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