Blog - Cambridge Chamber of Commerce

When the first students arrive for class in September at Conestoga College’s skilled trades campus, they will quickly discover a unique learning environment.

 

“It’s going to be a living lab,” says Suzanne Moyer, Conestoga Dean of Trades and Apprenticeships, describing the 322,000-square-foot state-of-the art learning facility taking shape at the former site of motorhome manufacturer Erwin Hymer on Reuter Drive. “The infrastructure is such that areas are exposed so that students can see how the building was built. You can walk into a classroom and actually see the duct work.”

 

Suzanne says the building, the first part of a multi-phase plan for the campus to house all of Conestoga’s skilled trades programs, has been designed with a very ‘open and visible’ concept towards learning with 150,000-square-feet of space dedicated to shops and labs.

 

“There are lots of windows so if you’re walking through the building, you can see what’s happening in the shops and other students can also see what’s going on,” she says, noting the campus will heighten the college’s successful approach of providing hands-on and practical learning. “Conestoga College has always been an advocate for skilled trades and in the last 15 years or so, we’ve really grown the amount of programming we have in the skilled trades.”

 

The timing for this major move couldn’t be more critical since the need for skilled trade workers only continues to increase in Canada, with a potential shortage of 60,000 workers expected by 2025. Currently, an analysis of 56 high-demand trade sectors nationwide indicates a shortage of approximately 10,000 skilled trades workers – which could be as high as 100,000 if all 250 regulated trades in Canada are considered. As well, the federal government says approximately 700,000 trade workers in Canada are likely to be retired by 2028.

 

“In part, we’re definitely responding and aware of that need both regionally, provincially and federally,” says Suzanne, noting a key goal was to consolidate the programs currently offered among the college’s seven campuses at one central location. “With that you get more efficiencies, and you also get all the students in different trades working more closely together. There are many positive things that will come out of this by having everyone located in one area.”

 

She admits there have been hurdles, including the pandemic, supply chain issues and labour disruptions, that delayed the project after Conestoga College purchased the site in 2019.

 

“But we’ve continued to adjust and amend the schedule and work our way through,” says Suzanne. “For example, our HVAC, millwrighting and electro-mechanical programs were supposed to move into the building in September but now they are going to move in next spring and be ready for students in September 2023.”

 

However, this September the new campus will become home to several of Conestoga College’s many skilled trades programs, including electrical, plumbing, machining, carpentry apprenticeship, as well as its one-year multi-trade program which allows students to sample four trades.

 

“The students are very excited because it will be a new and full-service campus,” says Suzanne, referring to the features provided which include a library, food services, counselling services, academic supports, and student success advisors.

 

She says the timeline for when the rest of the campus will be developed depends on funding. The first phase has come with a price-tag of $110 million.

 

“A lot of factors play in to all that. But we definitely have the space to grow,” says Suzanne, referring to the 42-acre site.

 

She notes the reaction from the business community has also been very positive and says Conestoga College welcomes any opportunity for partnerships.

 

“We have all kinds of opportunities to partner together. We work with organizations to make sure it is a good partnership,” says Suzanne, adding financial and in-kind donations are important but there are other ways businesses can be involved. “For those not in the financial position to donate, we have program advisory committees for every one of our programs where members of industry provide us with guidance in terms of what’s needed in industry from our graduates.”

 

She says these committees meet twice a year and provide valuable input to ensure Conestoga College is offering the best programming possible.

 

“We’re always looking for volunteers to serve on our advisory committees and work with us to ensure our graduates are industry ready.”

 

To find out more, visit Conestoga College Skilled Trade Campus.

 

Drawing supplied by WalterFedy/Moriyama & Teshima Architects

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Canada is facing a competitiveness problem. Inflation, supply chain constraints, and labour shortages risk undermining a swift and robust economic recovery. Meanwhile, recent domestic and international events have renewed the spotlight on energy security and affordability.  

 

The Cambridge Chamber of Commerce and the Ontario Chamber of Commerce (OCC) has released the 2022 Federal Budget Submission focused on public policies that increase Canada’s economic resilience to ongoing and future threats. 

 

“Businesses across Waterloo Region are continuing to feel the effect of the pandemic,” said Cambridge Chamber of Commerce President & CEO Greg Durocher.  “Budget 2022 must lay the groundwork for a strong, inclusive recovery with policies that support the sectors and demographics hardest hit by the pandemic, building the infrastructure and workforce of the future, and modernizing regulation to ensure Canada can attract investment and nurture entrepreneurship.” 

 

Some key highlights from the budget submission include recommendations for the Government of Canada to: 

  • Promote Canada’s energy sector on the global stage and recognize nuclear power as a clean and necessary energy resource in the fight against climate change. 
  • Expand immigration and express entry of skilled workers to address labour shortages.  
  • Increase the Canada Health Transfer Payment to meet the current and future pressures facing Ontario’s health-care system.
  • Modernize transportation infrastructure to address bottlenecks along supply chains and facilitate the decarbonization of the transportation sector.
  • Reform the federal tax system to attract foreign direct investment, drive domestic business growth and innovation. 
  • Develop a sustainable path to reduce the federal debt-to-GDP ratio and wind down other pandemic-related supports to ensure long-term fiscal balance and the capacity to address future economic shocks. 

The OCC’s 2022 Ontario Economic Report found that a staggering 62% of sectors face labour shortages in Ontario and expect to continue facing them over the next year. Together with supply chain disruptions, these shortages impact the cost of living, service delivery, and product availability. 

 

“As the indispensable partner of business, we call on the government to resolve long-standing structural issues, including barriers to interprovincial trade and skilled labour shortages, to drive entrepreneurship, investment and long-term economic growth,” added Rocco Rossi, President and CEO of the OCC. 

 

The recommendations outlined in the budget submission were developed together with businesses, associations, post-secondary institutions, chambers of commerce, and boards of trade from across the province.  

 

See budget recommendations: http://bit.ly/3uRp9Bl

 

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From food and clothing to automotive parts and medical supplies, the list of freight transported by truckers to keep our supply chain operating is practically endless.

 

But keeping those trucks rolling since the start of the COVID-19 pandemic continues to pose a major challenge to those who make their living in this sector.

 

“This has definitely created the greatest turmoil in the industry,” says Rena Hawkins, President of Cambridge-based H-Four Logistics Inc. “But there have certainly been other challenges.”

 

Part of the transportation sector since 1994, she has seen many changes in her industry, including a growing shortage of drivers which has continued to worsen for the last decade as many choose retirement. According to the Ontario Chamber of Commerce, Canada is currently facing a shortage of 20,000 drivers.

 

“Being a truck driver is not an easy job and it’s not an attractive job for someone with a young family,” admits Rena, noting good wages can be made but that restrictions regarding hours of service and flexibility makes it tough to earn a higher salary.

 

“They’re not working 40 hours a week; they’re working 60 to 70 hours a week to make that money which makes it hard for young people to want to get into this industry.”

 

Factor in the pandemic, and she says the situation has only grown more difficult, especially in the beginning when carriers she booked travelled to the United States only to discover shipping and receiving facilities closed due to COVID-19 outbreaks.

 

“The driver could wind up sitting there for 24 hours waiting to offload or upload. Who’s going to pay that driver? Is it me, my customer, or the shipper?” says Rena, noting a lot of negotiating and understanding was needed on all sides to find solutions. “Everybody really had to pitch in and help cover those costs for the drivers, so they weren’t out of pocket because obviously it wasn’t their fault.” 

 

She says that issue sorted itself out once the summer months arrived and transmission levels lowered.

 

“Now, the biggest challenge of course is the vaccination mandate, which means there are now 10% of drivers who are not in the market and can’t cross the Canada/U.S. border,” says Rena, adding even though that number doesn’t appear to be high it will impact the supply chain. “Imagine if you have a company with 100 employees and are relying on those people to make sure your operation is running smoothly. Even if you lose 10 of those people, you’re going to have glitches in that operation,” she says. “It’s a very fragile balance.”

 

Rena says a possible solution could surface in which non-vaccinated truckers deliver to the border where they upload or unload to vaccinated Canadian drivers in the U.S., noting a premium rate of pay could be offered as compensation to the drivers who must spend more time south of the border. 

 

“However, that is just going to inflate the transportation rates right across the board, not even factoring in the cost of fuel,” she says, noting the recent protest in Ottawa has clearly put a spotlight on the whole industry.

 

“I feel whatever side of the fence you sit on regarding the mandate issue, there seems to be a lot of appreciation now for the drivers and the work they do,” says Rena. “I think people are really seeing the impact they have on our daily lives.”

 

She hopes a ‘silver lining’ could emerge from this turmoil by inspiring a new generation of drivers to enter the industry. 

 

“They seem so excited about these truck drivers and I’m hoping new drivers will start looking to get into the market.”

 

In terms of the future, Rena remains optimistic of what’s down the road for her sector.

“We’re pretty creative people and will find solutions that will keep things moving,” she says, adding examples of ‘pivoting’ seen in the hospitality and restaurant sectors early in the pandemic is something her industry can take to heart. “They kind of laid the groundwork on how to get creative and make changes to have a sustainable business so our industry can look at what they’ve done and try to apply that kind of thinking to our business.”

 

Learn more about  H-Four Logistics.

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Providing the necessary supports to businesses is vital, especially as work continues to rebuild our economy in wake of the COVID-19 pandemic by getting people back to work. 

 

One way to ensure the economic development of Canada is well positioned is by creating more opportunities for entrepreneurial newcomers who can not only help fill existing labour shortage gaps but work towards reshaping our business landscape by opening new businesses and assisting existing ones in need of solid succession plans as aging business owners look towards retirement. 

 

With that in mind, the Cambridge Chamber of Commerce has developed a policy through consultations with Members via its MasterMind series entitled ‘Promoting the need for Entrepreneurship Immigration’ which calls for the Federal government to examine ways to ensure that a percentage of the 1.2 million immigrants slated to be brought to Canada by our government over the course of the next three years be linked to the entrepreneurship stream.

 

The policy won approval at the recent 2021 Canadian Chamber AGM & Convention which attracted more than 250 Chamber policymakers and officials nationwide virtually over a two-day period. The approved policy now becomes part of the Canadian Chamber of Commerce’s mandate when it lobbies at the legislative level with the Federal government.

 

“This policy will target individuals who are entrepreneurs and business builders who come to Canada with money in their pockets to not only invest in this country, but more importantly to invest in their own businesses here that will create opportunities for other Canadians,” says Cambridge Chamber President and CEO Greg Durocher. “We’re always looking for companies that want to expand into Canada, but why don’t we look for people who want to bring their businesses and business ideas here? It’s a market that’s been left untapped and we hope this policy receives serious consideration at the Federal level.”

 

An estimated 181,000 of small business owners according to a Canadian Federation of Independent Business (CFIB) survey conducted last year said they were seriously considering closing due to the pandemic and at least 200,000 were facing closure. Coupled with the fact many small business owners on the verge of retirement have not created viable succession plans – a CFIB survey conducted in 2018 indicated more than $1.5 trillion in business assets will be in play over the next decade as 72% of small business owners leave their business – there exists many potential opportunities for new immigrants with an entrepreneurial spirit.  

 

A current shortage of workers, especially in the construction, manufacturing, and hospitality industries, has set the stage for skilled immigrants in these fields to enter the market and possibly use their entrepreneurial know-how and practical work experiences to create new opportunities in these sectors. 

 

The Federal government has been attempting to make strides in addressing the ongoing shortage of skilled workers in Canada which has been only amplified by the pandemic. 

 

In February of this year, it announced an invitation to approximately 27,300 workers with Canadian experience to apply for permanent residence. This followed on an earlier federal announcement in the fall of 2020 to bring to Canada an additional 1.2 million immigrants over the course of the next three years: 401,000 in 2021; 411,000 in 2022; and 421,000 in 2023. 

 

While this influx of newcomers is welcomed and needed considering there are growing concerns centred on Canada’s falling birth rate, a more focused approach to create an ‘economic immigration policy’ that not only provides ample assistance to newcomers but also ensures the needs of existing Canadian groups, including Indigenous entrepreneurs seeking their own opportunities, are not negatively impacted, would be beneficial.

 

“We have an immigration policy that is geared towards our economy. It’s a point system, largely generated on the skills newcomers bring to the table,” says Greg, referring to education and various qualifications. “The problem is there are holes within the economic system that are not being filled.”

 

He says the current system often seems to focus on professionals, such as doctors, lawyers and engineers but needs to be widened. 

 

“We need to look at people who have businesses and would like to move them here have business ideas and the skills to develop those ideas in Canada,” says Greg.

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The Cambridge Chamber of Commerce has a brand-new online look.

 

The Chamber’s new website offers visitors a fresh and vivid digital experience as they access information on the many learning programs, incentives and events we offer that benefit our local business community.

 

“We’re thrilled to be able to offer a new site that is easy to navigate and still provides our Members with the valuable information they’ve come to expect,” says Chamber President and CEO Greg Durocher.

 

With a click of a button on the home page or from the ‘events’ page, Members will be able to easily access and manage their own accounts using a simple username system. They will not only be able to update their profiles to add or delete employees but will also be able to pay bills online.

 

“This feature will be a huge benefit to our Members and streamline our operation so we can concentrate on what we do best: helping businesses grow and prosper,” says Durocher.

 

The site itself is much brighter and colourful and contains fewer links which in turn will make using it a far more engaging experience for visitors.

 

As well, a new mobile site is included which means much clearer access on all digital devices.

 

“We have no doubt users will find this feature a huge bonus,” says Durocher, noting how much communication is conducted on smartphones.  “It’s important for all businesses to adapt to the latest trends.”

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Leading tax practitioners say that business owners with income as low as $50K will be affected

 

Ottawa, September 27, 2017 – The Coalition for Small Business Tax Fairness, a unified voice of more than 70 organizations representing hundreds of thousands of business owners across the country, has written a new letter to Finance Minister Bill Morneau with professional analysis confirming that Ottawa’s tax proposals will affect middle-class business owners, resulting in higher tax rates than other Canadians with similar income levels.  

 

“We are alarmed by the huge gap between the government’s statements about the impact of their proposals and the detailed analysis by Canada’s tax professionals,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Tax practitioners are united in the view that these changes have the potential to affect all small business taxpayers, no matter their income.”

 

"It is the farmers, mom and pop shops, and entrepreneurs, who invested everything into their businesses, that will be most affected by these changes, instead of targeting the real problem. The government needs to go back to the drawing board, hold a real consultation and listen to what tax professionals, provincial governments and the business owners who fuel the growth of our communities are saying," added Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.

 

The government has claimed that these proposals would not affect business owners with incomes under $150,000. Tax practitioners disagree.

 

One of the new rules introduced by the government would restrict small business owners from sharing income with family members. Tax practitioners say that this can affect business owners with incomes as modest as $50,000. Also, as two-thirds of Canadian incorporated businesses are majority owned by men, the restrictions on sharing income with a spouse are likely to remove a disproportionately higher number of women from benefiting from their family’s business.

 

The government is also proposing changes that would discourage small business owners from holding certain types of investments in the incorporated company. According to tax practitioners, business owners retain business earnings in the corporation to safeguard against economic downturns, secure bank financing and invest in other start-up companies.

 

Tax practitioners have confirmed that the proposed tax changes would result in higher combined corporate and personal taxes for business owners across the board and in many cases, small business owners would incur tax rates far greater than what an employee with a similar level of income would pay. 

 

The Coalition, which has doubled in size since August 31, is asking the federal government to review carefully the analyses of tax professionals across the country, take these proposals off of the table, and launch meaningful consultations with the business community to address any shortcomings in tax policy.

 

The Coalition for Small Business Tax Fairness is encouraging business owners and other concerned Canadians to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media. For the full list of Coalition members, please visit smallbiztaxfairness.ca.  

 

For media enquiries or interviews, please contact:

Andy Radia
Media Relations Specialist
647-464-2814

 

What some are saying:

 

“The agriculture equipment manufacturing sector represents 12,000 Canadians and their families predominantly in rural areas; as entrepreneurs who have put their lives on the line to invest in and grow their family business, the sector consistently exports more than $1.8 billion of farm equipment to over 150 countries. The scope and complexity of the proposed tax changes puts a lot of this at stake, and we must fight to ensure that fairness prevails for our members.” — Leah Olson, President, Agricultural Manufacturers of Canada

 

“Franchisees are the backbone of the communities they serve, by employing people of all backgrounds, supporting local initiatives, and helping grow the economy. As business owners, they assume significant risk, but have been able to achieve success through hard work and support from family members. Simply stated, CFA believes the changes being proposed by the Minister will hurt Canadian franchisees.” — Ryan J. Eickmeier, Vice President, Government Relations & Public Policy, Canadian Franchise Association

 

“The residential construction and renovation industry has always largely consisted of family-run businesses that help build the communities they operate and live in, many over several generations. These are hard-working Canadians trying to earn a middle-class living, hire local workers, and create a future for their families. The government’s proposed tax changes threaten the very existence of these businesses, posing a threat to small local companies in every community and the jobs they create.” —Kevin Lee, CEO, Canadian Home Builders’ Association

 

“We look forward to working with the Minister of Finance to ensure that any changes help secure the future of agriculture and not hinder it.” — Mark Wales, Chair of the Canadian Horticultural Council’s Business Risk Management Committee

 

“We are fully supportive of the government’s pledge to advance evidence-based policy-making. Our members are concerned that the government’s proposed changes to small business taxes are not sufficiently informed by the level of research, analysis and consultation required to ensure a full appreciation of the impacts this will have on Canadians - not just entrepreneurs and small business owners but also on the overall health of the Canadian economy and competitiveness in the short and long term.” — Leigh Harris, Vice Chair (Interim) National Board of Directors, CMC-Canada

 

“Canadian business families are scared, confused, and demoralized. Years of planning for business succession will potentially go up in smoke! And we’re being called tax cheats along the way. Canada can do better, we must do better—our economy depends on it.”— Allen S. Taylor, Chair, Family Enterprise Xchange

 

“These egregious proposed tax changes would negatively impact the family farm in ways that are both profound and complex. The federal government needs to reverse course on their ill-advised tax hike attack on our middle-class family farms. — Levi Wood, President of the Western Canadian Wheat Growers Association, grain farmer

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Poor Europe! She suffered years of economic stagnation and austerity. Costly government bailouts and a drawn-out banking crisis sapped her confidence. Terrorism and an unprecedented surge of migrants poisoned political debate and encouraged extremists. The final insult came when the British voted to leave her.

 

By the end of 2016, popular wisdom was that Europe’s politics were so shattered and her people so fed up, that upcoming elections would see right-wing extremists swept to power from France to the Netherlands, Austria and Italy. Even the gentle Scandinavians were eager to elect loons!

 

Except that didn’t happen. The elections came and went. The Austrians and the Dutch elected moderates by healthy margins. The Trudeau-like French centrist Mr. Macron won the French presidency by a staggering 30%, in a victory so crushing that his opponent Mme. Le Pen announced her intention to change the name of her political party. Far from a wave of Trumps, Europe is governed by sensible moderates (with the exception of Orban in Hungary).

 

And recently Europe’s economy has gone from strength to strength. All 28 members of the EU saw growth last year, and this will continue through 2017 and 2018.

 

In the first quarter of 2017, the European Union’s economy grew at a healthy 1.9%, more than double the U.S. quarterly growth of 0.7%. European business confidence is near an all-time high for manufacturers and services. More importantly, business is spending – European investment will grow by 3% this year and 3.5% next year. And best of all: European consumers are a happy bunch with low debt levels and money to burn. Last week, consumer confidence hit the highest level since June 2007. Happy days are here again!

 

Canadian businesses see the opportunities. Hudson’s Bay will invest $570 million in Europe this year and are targeting sales growth of 20%. The CEO Jerry Storch says profits will grow even faster than sales.

 

So far in 2017, some of Canada’s fastest growing export markets can be found in Europe. Exports to Germany are up 9%, sales to France are up 14% and the Netherlands are up 10%. And Canada’s investments in Europe are even larger. The total sales by Canadianowned companies operating in Europe exceeds $100 billion. That’s more than triple the value of Canada’s direct exports to the region.

 

Investors have noticed that Europe has her confidence back, and she’s even got a bit of swagger. When Mr. Trump promoted Brexit to other EU countries, the President of the European Commission Jean-Claude Juncker said “I’m going to promote the independence of Ohio and Texas.” Europe has also started flexing her muscles and is about to embark on a new defence spending spree.

 

And thanks to far-sighted trade ministers, Ed Fast and Chrystia Freeland, the Comprehensive Economic and Trade Agreement (CETA) will come into force soon. We’ve all been so focused on the NAFTA renegotiation and those fabulous 3 a.m. tweets. Let’s not lose sight of a spectacular opportunity for Canadian business. With 500 million people and GDP of $18.5 trillion, the EU is the world’s largest economy, so a return to stability and growth will have a stimulating effect on the whole global economy. Welcome back Europe!

 

For more information, please contact :

 

Hendrik Brakel Senior Director, Economic, Financial & Tax Policy

613.238.4000 (284) | [email protected]

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In this edition ofthis weeks V-Blog Greg discusses why it will not only keep the heritage aspect intact but also put a new spin on the area for our futures. Not only our futures though. It will benefit our grandchildren's future as well. This will be a district unlike any in Ontario. So check out this video and support the Gaslight District.

 

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Canadian business is about to go through an era of unprecedented upheaval. Is it an economic crisis? A climate calamity? A Trump presidency? It’s much worse: a mass-retirement of business owners!

 

A staggering 75% of small business owners will retire over the next decade, and $1 trillion in business assets will change hands. Are we ready?

 

The answer is a resounding no. Less than half of small business owners have succession plans and only 9% have a formal written plan. We often hear that owners don’t like talking about retirement. They’ve been leading their business for decades and it’s part of their identity. Many just assume that they will be able to sell the business or pass it along to kids when the time comes. And because it’s years away, the awkward discussion can always be put off to another day.

 

There are huge implications. For starters, inadequate planning will lead to a big tax hit. Many family businesses have concerns that they are treated unfairly. If an individual sells a business to an unrelated person, it’s considered a capital gain and subject to a significant exemption. However, when an individual sells a business to a family member, the disposal is taxed as a dividend at the top marginal rate. That’s because the Crown sees the cash remaining within the family unit and wants to avoid creating a costly loophole. It’s a tough issue—there is an issue of discrimination against family business. In fact, NDP Deputy Finance Critic Guy Caron has prepared the private member’s bill C-274 to address the “unfair treatment” of family transfers.

 

But financial planners tell us that Canada’s tax code is actually quite generous. If you set up a family trust, an estate freeze or other tax strategies, it’s possible to minimize your tax bill substantially. The problem is that this must be done years in advance.

 

The second big challenge is financing the succession. It can take years to find the right buyer with deep pockets to buy-out the retiring owner. Again, a lack of planning can force owners into a fire sale situation, and potential buyers need time to raise funds.

 

The Canadian Chamber recently passed a resolution asking that government small business financing programs be expanded so that potential buyers can access the funds to buy-out a retiring owner. It’s a great idea.

 

We sometimes focus exclusively on supporting startups, but it’s just as important to ensure the continued success of existing businesses. Consider the perspective of an entrepreneur: you could create a new idea from scratch, seek out customers who have never heard of you and hope against the odds to turn a profit. Or, you could take over a company that has been in business for decades, with a loyal customer base and a track record of profitability.

 

The point is that it takes years to plan, finance and implement a successful exit strategy—on top of the training and mentoring to prepare the business itself for transition.

 

That is why chambers and business associations must do more to encourage members to start early and create robust succession plans. Financial institutions and government agencies also must help fund the next generation of managers and owners. But it’s a big challenge for business and for the Canadian Chamber. If you have views on succession planning and/or on bill C-274, please email or give me a call.

 

Hendrik Brakel Senior Director,

Economic, Financial & Tax Policy

Canadian Chamber of Commerce

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