Newfoundland Company Says 90 Percent of Work Now Comes From Halifax Office
HALIFAX – When Terry Hussey opened a Halifax location for his construction consulting firm ‘Vigilant’, he figured the work would come in gradually since they were new in town. Headquartered and founded in St. John’s, Vigilant was expecting the new Halifax office to take three years before equaling the revenue generated by the Newfoundland one.
But less than a year after setting up shop in the booming Nova Scotia capital city, 90 percent of the work being done by Vigilant comes out of the Halifax-based office. It’s a result that has blown away Vigilant CEO and founder Terry Hussey.
“What’s happened has been partially because the majority of our sales efforts are focused on the Maritimes because that’s where we’re getting the best reception,” said Hussey in an interview.
“We’re finding people are spending money; the economic activity is certainly much more prevalent than what exists in our home province of Newfoundland and Labrador.”
The economic contrast between Halifax and St. John’s is very much a tale of two cities situations – twas the best of times and worst of times.
Halifax has a booming economy and rapidly growing population. Construction can barely keep up with the demand for housing and commercial space. Even the pandemic didn’t keep people from moving to the city, or from new businesses and building popping up across the HRM.
Meanwhile, Newfoundland is in a state of fiscal crisis, with mounting public debt and an aging, shrinking population. A recent report on the province’s dire economic situation called for a “big reset” to prevent an economic collapse. Covid-19 also hit St. John’s at a municipal level, with the city forced to deal with a projected $10-$12 million deficit in 2021.
In 2018, a multi-year forecast of construction trends in NL by Build Force Canada also painted a less than stellar picture for the industry.
“Project completions coupled with a prolonged decline in new residential and non-residential ICI (industrial, commercial, institutional) building construction is likely to reduce the workforce by 20 percent, or 1,600 workers, by 2021,” states the report.
Hussey says the economic situation in Newfoundland has caused “panic or resignation” among local business owners. And the economic downturn has meant fewer construction projects on the horizon.
“They look to the local market and realize that it is an increasingly dwindling pie,” says Hussey.
There are so few projects on the horizon in Newfoundland that, following October 2021, Vigilant only has one project on the books for the area-everything else is work obtained through the Halifax office. Pre-Covid-19, there were 35 projects.
In its first year in the Maritimes, Vigilant has been a consultant for car dealerships, healthcare facilities, local municipalities, and government agencies, to name a few. The first-ever contract they obtained in Nova Scotia was working on a new fire hall for Mahone Bay.
Hussey has been amazed by the connections and contracts he’s obtained through setting up an office in Halifax. Vigilant has been able to obtain work, not just throughout the Maritimes, but into Ontario as well. Even when companies don’t want Vigilant’s services, they will often give the consulting firm leads and contacts.
It’s been heartwarming for Hussey to see a business environment where people are collaborative and welcoming.
“And they’re helping us make connections. And these people don’t know us at all, but they’re just so interested in helping others succeed,” explains Hussey.
“That’s just a refreshingly different tune from what you’ll hear amongst business owners in Newfoundland and Labrador where it’s just struggle and a lot of frustration.”
Hussey believes the business community in Halifax, and elsewhere, has been receptive to Vigilant because of its idealistic view of construction and development. Hussey has long felt that the construction industry is filled with too much conflict and lawsuits.
“We have an aspirational mission as a company to create a construction industry without any lawsuits,” explains Hussey.
“Construction doesn’t need to feel chaotic; it doesn’t need to feel like a war. It shouldn’t be like that in 2021. And people are responding to that.”
There’s so much work coming in through the Halifax location that Vigilant is continuously hiring. The job market is so hot in the city that Hussey has been amazed to see people willing to move to Nova Scotia for the work
“We have made hires from Alberta and Ontario who are moving to Nova Scotia to work in our office. I mean, how wild is that?” Exclaims Hussey.
“I think four out of every five people I hire in the next two years are going to be based in the Maritimes.”
Meanwhile, Hussey says there are empty desks in his St John’s office from the number of people who transferred to Halifax over the past year.
Despite the contrast in economic activity, Hussey believes Vigilant will always have a presence in St. John’s. He is proud to be a Newfoundlander and proud of the fact he founded Vigilant in his home province. But, as the construction consulting company looks to expand nationwide within the next 20 years, Vigilant may have to choose a new location for its headquarters.
“We’re always going to be based here,” claims Hussey. “Whether or not our headquarters remain based here, of course, depends entirely on the logistics of the company.”