British Columbia’s businesses are experiencing significantly less growth than they did 10 years ago, before the 2008 global financial crisis.
In 2008, the top five fastest-growing companies in the province reported an average five-year revenue growth of 31,500% between 2003 and 2007.
B.C.’s fastest-growing businesses are now posting smaller five-year revenue growth than that reported by the top-100 list in the immediate aftermath of the Great Recession. In 2009, the average five-year revenue growth fell more than half, to 14,400% for B.C.’s five fastest-growing companies. In comparison, this year the average revenue growth for the five fastest-growing B.C. businesses was 3,600%.
The slower growth rate is highlighted by the largest movement on Business in Vancouver’s Fastest-Growing Companies list: Neovasc Inc.’s (TSX:NVC) 60-position drop. The company fell 61 spots on the list since 2013, slipping to 93rd place in 2017 from 32nd four years earlier. Only 26% of companies on Business in Vancouver’s Fastest-Growing list have moved up in the ranking since 2013.
The company with the largest jump in rankings was Photon Control Inc. (TSX-V:PHO). It moved up 43 positions from 80th in 2013 to 37th this year.
Companies whose growth declined between 2013 to 2017 fell an average of 20 places on BIV’s Fastest-Growing list. Companies with growth increases over the same period gained an average of 15 places.
Revenue growth for B.C.’s 100 fastest-growing companies has slowed significantly, as shown in the growth rate of the single fastest-growing company in 2008, OneMove Technologies Inc. That company’s 2008 growth alone was almost equal to the combined growth rate of all 100 companies on the BIV list in 2017.
Eighty per cent of the companies on Business in Vancouver’s Fastest-Growing Companies list are from two sectors: the technology and service industries. Tech companies have the largest presence on the list, with 46 companies focused on everything from life sciences to software design. Service-based companies occupy 34 spots on the list, but are relatively underrepresented in the top 10, whereas tech companies like Precision NanoSystems Inc. and CRH Medical Corp. (TSX:CRH) feature prominently.
While forestry and mining companies typically dominate BIV’s list of the top 100 public companies, which is based on revenues earned, their relatively consistent revenue growth diminishes their presence on the fastest-growing list.
Jostle Corp., a Vancouver-based office communication platform developer, had the largest revenue increase of any company in B.C. The business increased its revenue by nearly 5,900%, growing to $4.4 million in 2016 from $74,000 in 2012.
While Jostle Corp. holds the No. 1 spot on BIV’s Fastest-Growing list, its 2016 revenue was overshadowed by Turquoise Hill Resources Ltd.’s (TSX:TRQ) $1.6 billion. Turquoise Hill, which ranks in fifth place on this year’s Fastest-Growing list, is the only company in the top five to report a revenue decline in 2016 from 2015. It dropped to $1.6 billion from $2.1 billion. The mining company, however, had the third-largest five-year revenue increase in terms of absolute dollars at $1.5 billion. The companies with bigger five-year revenue increases were Canfor Corp. (TSX:CFP) at $1.6 billion and Lululemon Athletica Inc. (Nasdaq:LULU) at $1.7 billion. While these companies had the largest dollar revenue increases, Lululemon placed 59th and Canfor placed 94th in terms of percentage growth over the last five-year period.
