Tech and resources continue to duel for supremacy when it comes to high-growth businesses based in B.C.
Combined, the two sectors accounted for nine out of the top 10 spots on Business in Vancouver’s annual list of fastest-growing companies.
Nevsun Resources (TSX:NSU) moved from second to first this year – the sixth consecutive year a mining company has topped the list.
The gold and copper mining company grew by an explosive 40,000% over the past five years, earning revenue of $160 million in 2013 and $565 million in 2012.
Four other spots on the list went to B.C. mining companies focused on gold and silver.
But the dominance of those companies could be in question next year as the price of precious metals declined sharply in 2013.
Furthermore, No. 4 on the list, Veris Gold, filed for creditor protection in 2014 after a 2013 fire at its primary asset in Nevada shut down operations unexpectedly while the price of gold was dropping. The company, which had revenue of $200 million and experienced five-year growth of 1,683% in 2013, has four other projects but only one active mining operation.
Tech still managed to outdo resources on the overall list, with 24 out of the top 100 companies getting representation. In 2012, 32 tech companies made the list.
Resources wasn’t far behind, with 22 companies making the list – down from 27 a year ago.
But the service sector was the clear winner after 35 companies, ranging from private security firms (Paladin Security) to restaurant chains (Famoso Neapolitan Pizzeria), were represented in the top 100. That’s up from 28 companies last year.
Despite that strong showing, Pure Industrial Real Estate Trust (TSX:AAR.UN) was the only service-oriented company to make the top 10.
Construction rounded out the top 100 after 20 companies from that sector made the list.
In terms of growth, the highest-ranking tech company was No. 6 on this year’s list.
Renewable energy company Alterra Power Corp.(TSX:AXY) had 1,144% growth over the past five years and even managed to push past perennial tech favourite Avigilon (TSX:AVO).
The high-definition surveillance system company dropped slightly from fifth to eighth with 956% growth the past five years while bringing in $178 million in revenue in 2013.
Avigilon founder and CEO Alexander Fernandes told Business in Vancouver the company is aiming for revenue of $500 million by 2016.
He said Avigilon has been able to sustain such growth by expanding sales, investing in research and development and boosting brand awareness through marketing and an increased presence at trade shows.
“I don’t really see growth ever going away,” Fernandes said.
“Anywhere there’s a population of one million or more, we either have people on the ground or we’re in the process of hiring people. And so we truly are a global operation.”
The tech startup, which had an initial public offering in 2011, was also in the business of acquisitions last year, purchasing RedCloud Security and VideoIQ. But the CEO said most of the company’s growth going forward would come from internal innovations.
