Industrial Sector

Sectors We Serve

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Industrial and Manufacturing Sector

We invest the time and energy while applying our expertise to understand the relationship between your business and the physical assets that are required to effectively compete in the market. With thirty eight years under our belt, the experiences and situations that we have effectively resolved provide a unique perspective on what worked yesterday vs what is required to compete in today’s global and increasingly competitive environment. Our ability to connect the past with the present results in a fresh perspective that produces superior outcomes.

The level of detail that we go into is un-surpassed and drastically boosts our credibility and our reputation in solving complex problems.

We believe in doing things right the first time and this requires a level of commitment and adherence to standards that most others simply pass-by. Whether we are supporting the annual filing of Vacancy Applications or inspecting a facility to develop alternative valuation methodologies, we un-cover as many stones as feasibly possible to support the delivery of the big RED red easy button for all stakeholders.

The ultimate test of our success is the company that we keep. We pride ourselves on long standing relationships with the world’s leading manufacturing and industrial clients, most of which have enjoyed working relationships with AEC that pre-date the internet, VHS and the fax machine.


Case Studies

Receivership divests M&E, while attempting to recover value for a built-to-suit property

Role of Obsolescence in a Declining Industry

Sample Clients

Ford Motor Company
Toyota Motors
Domtar Inc.
Ciment Saint-Laurent
Imperial Tobacco
Cangro Foods
Studios of America
Smart Technologies
Breconridge (former Nortel)
Cott Corporation
Hiram Walker & Sons


Case Study 1: Recovering Value for a Built-to-Suit Property


Receiver apointed to wind down and sell assets associated w former tool and die facility including real and personal property.

Receiver initiated assignment by selling machinery + equipment to liquidator who occupied premises for purposes of cataloguing, marketing and eventually auctioning off equipment.


Subject property was purpose built by previous occupant which intrinsically suggests that value in use will not be recovered in "exchange" of market place.

In parallel, real property is listed for sale where subject represents

- largest available industrial property in municipality
- design build property within manufacturing sector that is struggling within economy
- numerous offers over 18-24 month period, all significantly below replacement cost


AEC was able to develop the best case scenario for the client wherein their objectives of selling their machinery & equipment to utilize the real estate with appropriate valuation.

Client Success

Subject sells for 50% of replacement cost to owner / user where subject is going to be altered for retail distribution.

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Case Study 2: Role of Obsolescence in a Declining Industry


As a result of the economic changes in the Canadian forest industry by 2008 only a portion of the entire facility was used to produce pulp, the remainder of the sawmill and paper mill buildings either sat vacant or were significantly under utilized.

After a myriad of attempts to reach a mutual agreement on the correct assessed value failed and the appeal was set for hearing.


For the 2008 base year, the assessor stated that the significant number of machine and mill closures, if anything increased the value of those mills still in operations and that none of the sales of mills in Canada could be relied upon because they were sales of properties in distress.

The Assessor was not persuaded that the so-called crisis in the Canadian forest industry was anything more than a typical cycle and therefore did not warrant any adjustments to value beyond those contained in their standard guidelines for the valuation of industrial properties.


AEC provided a team of expert appraisers, engineers, assessors and tax consultants that worked closely with the client and their legal team. The Board agreed with AEC's appraisal and valuation expert that noone would pay more to purchase a property than the cost to replace it with a modern mill of like utility. Our AEC engineer created a "model mill" that considered only what would be required to produce the same amount of pulp capacity. The model was based upon a modern US mill modified to the Canadian climate. The model reduced the reproduction cost by 75% and this served as the correct starting point from which other depreciation needs to be deducted. After this, AEC deducted the same percentage of physical depreciation from the model as was found in the existing mill. The Board disagreed with the Assessor that a property cannot be old and new at the same time. The Board agreed with AEC that a buyer is not getting the new model, but instead a replica of the model that is the same age as the existing plant.

Reductions like this require a broad range of expertise and a partnership between the client, the consultant and the legal counsel. They also require persistence and determination. The AEC team has applied the model approach across Canada to determine the correct assessed values of unique and special purpose properties from a wide range of industries. As demonstrated in the attached full case study and decision, the AEC team has the experience, background and ability to tackle these difficult assignments.

Client Success

The Assessment Review Board reduced the assessment from $50,334,000 to $14,041,000 or a 72% reduction -- a landmark case in Canadian property tax and valuation.

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