A move to Calgary was never supposed to be permanent. Stephen Smith and his wife, Patti, left the Maritimes after university, planning to make some money out west for three years before settling back in PEI. That was 42 years ago, and while he makes frequent trips east, he is now a Western Canadian through and through and has spent the past several decades supporting the region’s economic growth.
Smith’s 20-year career with Flint Canada Inc. culminated in him becoming president, and he left the company shortly after it went public, seeking a new challenge and the opportunity to build something of his own. Over the next few years, Smith kept returning to an idea that had been marinating for a while: creating a locally owned and operated infrastructure construction business serving oil and gas companies across the west.
“Our ambition was to establish a Canadian company offering construction services. We had the vision to do it for ourselves, to build this thing one piece at a time,” says Stephen Smith, CEO of Strike Group. “We had put together a business plan several years before with input from some others, so we dusted that off and on January 4, 2004, we came out of the gate, incorporated and started up Strike Energy Services.”
Smith and founding partner Ron Shannon hatched a plan for Strike Energy Services (which later became Strike Group) that they dubbed the Triple 5: in five years they’d have five business units with a revenue of $50 million. Within two years, the company had surpassed that goal, and by year 10, Strike had reached $200 million with its sights set higher still. The company continued to grow organically and through acquisition, opening opportunities for broader services in new markets that catered to clients in energy and a range of industries.
What started primarily as an upstream oil and gas construction company with project and field service divisions soon diversified to offer clients a one-stop option for their projects. Early on, Strike acquired a small electrical firm to create an electrical and instrumentation division, a small fusion pipeline company to facilitate Strike’s pipeline construction, repair and inspection and in 2014 added Bob Dale Oilfield Services to the Group. Strike also has five fabrication centres across Alberta and Saskatchewan with a combined 70 acres of modular construction yard space.
“We are really a general contractor. We self-perform the project management, fabrication, modularization, mechanical, electrical and some civil works, and then we general contract all other services to complete the project as a whole. We try to sell ourselves as an all-in suite of services that can manage the project from everything after engineering to commission,” says Tyler Pawsey, President and COO of Strike Group.
And the industry is buying what they are selling. Long-time clients are increasingly looking for Strike to provide services in all areas within their own businesses, from facility construction and module assembly to measurement programs and integrity work all the way to commission, maintenance and asset retirement. Clients know that no matter the project, be it a $1,000 job or a $250 million contract, Strike will bring its high standards to complete it. And with 25 branches spanning from Fort St. John, B.C., to Virden, Manitoba, Strike is strategically located where clients need them most. Being within an hour of their clients’ production areas allows them to keep their finger on the pulse of the industry and provide quick service.
The company has diversified significantly to ensure they can handle virtually any energy and industrial infrastructure construction and maintenance need that clients have. Their wide range of services and markets has also helped Strike ride out the economic ups and downs over the decades and even grow in downturns. To further strengthen the business in the face of industry volatility, Strike partnered with TriWest Capital in 2015.
“It’s been a really good thing. Since that time, we’ve doubled the business, made four or five other acquisitions or start-ups that required a lot of capital, and it’s helped get us to the position we’re in today with $425 million revenue,” says Smith.
To achieve its BHAG of being a billion-dollar company, Strike continues to adapt and lead in sustainability and the energy transition. Its expanded portfolio of diversified markets includes bioenergy projects creating sustainable fuel, as well as waste heat recovery projects allowing power and processing plants to harness their heat to generate electricity. Also, Strike is proud to be the largest carbon capture constructor in Western Canada with more than $100 million in carbon capture pipelines so far.
“We’ve been very active in alternate energy and clean tech and have established ourselves with a strong resumé in this space,” he says.
The diversification strategy encapsulates its end markets as well, and while it continues to provide exceptional service to clients in traditional oil and gas markets, Strike is branching out beyond it to become a major player in other industries. The team is building a presence in mining with its first potash mining project in Saskatchewan as well as establishing expertise in agriculture throughout the West. The company entered the municipal arena with its first wastewater treatment plant and is expanding into commercial and industrial projects after constructing conveyor belts for Amazon warehouses. With the addition of a Cranbrook location earlier this year, Strike is not only able to provide quality service on oil and LNG projects but is also diversifying its B.C. operations to support mining and forestry in the province.
The company has become best-in-class in the midstream and transportation sector as well. Since its first compressor station in 2008, Strike has successfully executed 16 different compressor station projects, with its most recent being the largest to date.
“The latest compressor station supports an Indigenous-led LNG project, which is the first of its kind in Canada and possibly the world. This facility will handle approximately 0.5 billion cubic feet of gas per day, contributing significant resources to the market. The project is a joint venture with a First Nation partner that will own and operate the facility. It represents a major step forward for reconciliation, and it’s a significant win for local Indigenous communities, the provincial and federal governments, and for Canada as a whole,” says Pawsey.
Forging strong relationships with Indigenous communities is a definite priority, and Strike has more than 25 of these relationships across the region. Strike donates to their initiatives, participates in community events and collaborates with Indigenous businesses and subcontractors on projects. Since inception, the community focus has created the foundation on which Strike was built, and the team strives to take care of the communities where they live and work.
To that end, each location has an annual donation budget that employees can increase by completing safety observation cards, and these funds can then be allocated to the areas of need in their communities. Strike has donated more than $2 million to worthy causes, and its 20th anniversary presents another opportunity to give back; the company is hosting an event that features a silent auction with all proceeds going to Young Adult Cancer Canada to support that underserved group. Over the years the company has also participated in programs like Brown Bagging for Calgary’s Kids, preparing Christmas hampers for families, filling backpacks for school kids in need and supporting food banks. Giving back is essential and Strike’s culture of community is something that attracts clients as well as employees to the company.
Since the beginning, Smith has focused on building a stellar team that lives Strike’s values of making a difference through quality, safety, continual improvement and community. Diversity is just as important in the workforce as it is in the market, so the Strike team of between 1,300 and 1,600 dedicated professionals consists of both men and women in trades and technology and people with a range of cultural backgrounds. Strike offers motivated employees incredible management training programs to pave the road to advancement, and a large percentage of employees are long-time team members who have moved into new roles via this route.
“We’re our own leadership engine. Our management training program is great for the company to identify the next generation of leaders and also great for people in the program to identify what they want to do,” says Pawsey.
With a focus on development and culture, it’s no surprise that Strike, among its numerous safety and top contractor awards, has been celebrated as one of Canada’s Best Managed Companies for 15 straight years. This accolade is one that Smith and Pawsey are particularly proud of as it’s a reflection of the strong team that’s contributed so much to the company’s success. While only 20 per cent of companies reach the 20-year milestone, thanks to a great business plan and an amazing team, Strike has managed to thrive. By continuing to develop solid relationships with staff, suppliers and clients, providing quality service and further diversifying its offerings and markets, Strike Group will lead the way into the next 20 years, too.
403-232-8448 • sales@strikegroup.ca
www.strikegroup.ca
