BIV reporters examined British Columbia's frugality reality – and how local businesses are navigating skills shortages, inflation, chronic COVID complications and supply chain dysfunction.
This is one of eight articles that capture acute corporate concerns. Read on to explore different business owners' survival plans and strategies.
Provident Security Corp.
The company’s main business is installing sophisticated security systems in homes on the west side of Vancouver, and responding to alarms within five minutes.
Marketplace cost challenges
Provident Security Corp. owner Mike Jagger used to pride himself on following lean-manufacturing principles and receiving just-in-time inventory at his security-system installation business.
His system worked well pre-pandemic. He did not have excess product to warehouse nor did he run short of needed parts. But global supply-chain glitches in the past year have meant that he has had to grapple with shortages for needed alarm-system components and other parts.
“We’ve had clients saying, ‘How quickly can you get this done? Here’s our money, please take it,’” he said.
“We’re having to say, ‘We’d love to take your money, but we’re going to have to wait because we can’t get some components.’”
Finding qualified staff has been an ongoing concern.
Provident also finds itself rare as an independent security company that has about 150 employees. Deep-pocketed telecom giant Telus Corp. (TSX:T) has swallowed up competitor ADT.
Marketplace frugality solutions
With customer satisfaction being central to Provident’s corporate success, Jagger said he has had to spend more time communicating with suppliers as well as new and prospective clients to manage expectations.
If a supplier is not able to supply parts and there are competitors who can, Jagger pivots and buys from new suppliers. In many cases, however, that is impossible.
“The more specialized the equipment, the less likely it is that there are viable alternatives,” he said.
Jagger has shifted his business to high-end security systems, many of which have thermal imaging that can show human forms through light shrubbery and detect fire.
That focus helps him attract employees, who want to work with more sophisticated equipment and not simpler motion-detection home alarms.
Jagger’s company provides some security-guard work, but he has shifted away from those contracts in part because he finds it challenging to find those workers.
He employs people to drive around and respond quickly to tripped security alarms.
“We’re hyper-focused on the market west of Oak Street, and residential is our prime market,” he said.
“We have a five-minute guarantee, which is just in Vancouver’s Westside.”
That geographic specialization means that Provident turns down business in other cities.
“In order to deliver that unique service we have, we have to turn down business opportunities because we’re just not a strategic fit,” he said.
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