IPSS

IPSS

IPSS

IPSS Expanding

Beyond Security PRODUCTION: Karl Pietersen

Dylan Meyrick of IPSS tells Enterprise Africa that his company is moving beyond the traditional ‘armed guarding’ security model and is now offering medical rescue and soon, firefighting services. The security company is also investing in a new set of vehicles to ensure its people are at the very forefront of the industry.

//

The private security industry in South Africa is worth an estimated R45 billion. It is responsible for around 490,000 jobs, and it employs around double that of the SANDF and SAPS. There is a vast landscape to play in and it has attracted some of the world’s biggest names. But that doesn’t stop security firms looking to break the boundaries and test new services that could be added to their portfolios with ease. Take iSithebe-based IPSS – the company was started in the late 80s, but since Dylan Meyrick took the reins in 2001, he has continuously been looking to add services and technology to the company’s offering.

“We are currently able to provide our industrial clients with security, medical, and health and safety services,” says Meyrick. “This is proving a game-changer as currently this is a unique service and more and more clients, new and old, are making use of this. We are in the process of preparing to add firefighting to the services provided as we have had numerous requests to do so.”

Alongside its regular security activities, IPSS also oversees an antipoaching unit, protective services, strike teams, specialised guarding operations,

2 / www.enterprise-africa.net

alarm response services, occupational risk management, CCTV, alarms and electronics.

Adding new but related services to the fold has allowed IPSS to become of greater value to clients without major incremental costs increases.

“Technology is changing almost daily,” he says. “Our medical services provide pre-hospital care and transport, mainly resulting from trauma. Our response vehicles are equipped with the latest equipment available and we are about to equip our paramedics with ultrasound scanners to improve diagnosis on the road. This will be a first in South Africa for paramedics.”

In the traditional security sphere, tech is also disrupting the industry and Meyrick is finding it all too common that jobs are being lost to tech.

“Drones have become an invaluable tool. We currently use drones for search and rescue, security patrols looking for suspects, monitoring crowds during civil unrest, and rhino anti-poaching operations. Unfortunately, as drones are imported, the really useful ones are far too expensive due to current exchange rates.

“Physical security is being replaced by technology which is more reliable and

cheaper in the medium-term. I believe this trend will gain momentum and the number of security officers employed will be reduced significantly,” he says.

Nevertheless, IPSS will look to grow its footprint across South Africa and subSaharan Africa and Meyrick, a man who thrives on the personal connections that he makes, has just invested into 45 new vehicles so that his people are given the best tools possible.

“Security vehicles operate 24/7 often in harsh conditions and use multiple drivers. The result is that vehicles deteriorate very quickly and we replace them as soon as it becomes apparent that maintenance costs approach the remuneration received for that vehicle.

We are currently moving our fleet onto a ‘full maintenance lease’ option from Avis.

This gives us a fixed cost for the life of the vehicle making budgeting much easier,” he says.

“Currently, our main operation is in KZN, but we have offices in Johannesburg, Nelspruit and Cape Town. We will increase this countrywide footprint significantly in the near future.

“We currently operate separate businesses in Zimbabwe, DRC and Liberia. Due to local requirements, these

C

INDUSTRY FOCUS: SECURITY

businesses have local partners. We, together with our partners, constantly explore new opportunities throughout Africa. I believe that these are endless,” Meyrick adds.

Right now, there are around 7500 registered security firms in South Africa but few can offer the breadth of services that make up the IPSS stable. And although IPSS is now a large organisation, Meyrick remains on first names terms with all of his clients. It is this ability to offer a range of services but to be able to do it without the feel of a corporate monster that drives IPSS. AHEAD OF THE REST? “We are currently without doubt the industry leader in providing multi-linked services,” says Meyrick. “This has been tried by numerous companies but always unsuccessfully. No one else is equipped to provide the full spectrum of security services, medical services (pre-hospital and site clinic facilities) and health and safety services. As mentioned, we will soon add firefighting services to the package. The financial benefit for large industry of using a ‘one stop shop’ is enormous.”

The time is right for further expansion. With the company operating successfully around KZN, and affiliates working successfully in Africa, IPSS

4 / www.enterprise-africa.net

is feeling that very rare of things – success in a dull market. The security business has an unusual connection with the typical peaks and troughs in the economy and often works in reverse to the traditional models. When times are tough, during a recessionary period, jobs are lost and people turn to crime. This in turn forces people who can afford it to beef up their security offerings, bringing a wave of new and increased business through to security companies like IPSS. “We are in an industry that thrives in difficult times,” admits Meyrick.

“This is unfortunate but a reality. As unemployment rises, so does crime and businesses have to invest more in security.”

He says that, even though the official cost of security is rising, many organisations out there simply do not follow industry norms and are allowed to get away with bad practice.

“The rising cost of security has opened the door for cheap ‘fly by night’ service providers that offer substandard security at vastly reduced rates. They do this by not being legally compliant and not paying security officers the correct rate. Although regulations are in place to prevent this, the body tasked to police the industry fails dismally.”

However, one area where regular

cost considerations to fall in line is with variable costs, like fuel and technology.

Whereas a global player maybe able to afford these luxuries as soon as they become available, IPSS isn’t always able to supply first-class tech to customers because of costings.

“The exchange rate hurts,” says Meyrick. “One of our biggest expenses, fuel, is affected by this and increases on average 20% per annum. We are often prevented from buying and supplying the latest technology because of the prohibitive costs in SA.” But despite these woes, the industry remains in a strong place, and looks set to get even stronger if the proposed rules surrounding foreign ownership are brought into play.

“The SA security industry is very strong,” enthuses Meyrick. “The threats of government to prevent foreign ownership of security companies will change the playing field if it is implemented. We believe that many clients are unhappy with the service level provided by the very large security companies, and are now exploring alternatives. We are a provider of multilinked services and we are uniquely positioned to take advantage of this.”

HISTORIC IN SECURITY IPSS has a long and diverse history in the security business. Originally, the business was founded by Rob Howard and was developed to provide security services to the then KwaZulu Finance Corporation (now Ithala) industrial hubs at iSithebe and Ezakheni. At that time, the business was called IPSS (Industrial Park Security Specialists).

“In July 2001, I purchased the iSithebe branch and in 2012 the Ezakheni branch. I changed the name to IPSS Security Operations,” says Meyrick.

“The main change made was that the business became owner managed and I was available 24/7 to address clients’ needs and concerns. This made a huge difference to the service level as our staff believed that management was there to support them and not just

IPSS

to send them to earn money for the company.”

When Meyrick took over, the company was home to 70 people with a handful of small clients. Today, IPSS employs 2000 and the ethos remains the same. “I know each and every client personally and they can contact me 24/7 if they need to. We now service clients, including blue chip companies and parastatals, throughout the country.

“IPSS has now become a threat to the major players in the industry and they see us as fair competition. We will grow that threat as our target market is now national contracts which we have proved that we can service at a much higher level than the big guys where clients are just a number on the bottom line,” he says.

SKILLED PEOPLE Growth from 70 to around 2000 employees in 16 years is remarkable, and Meyrick is planning to keep the doors open for new staff. He says that, for some time, the size of the business meant that finding employees with suitable skills was a challenge. Those that were highly skilled were too expensive and would often choose big-name international organisations ahead of IPSS. Today, IPSS a recognised industry leader and Meyrick says that recruitment has become easier.

“Up until a few years ago, it was extremely difficult to attract competent, qualified staff. The outcome was that we had to train our existing staff. The result has been amazing. The members have seized the new challenges with both hands. The loyalty generated will benefit the company in the long-term and we will continue with this policy where ever possible,” he says. “That being said, as we have grown and become a player in the industry, we now would have no problem sourcing competent staff as we are a desirable employer.

“As mentioned above, we spend a large amount of money training and upskilling our current staff. The skills gap is noticeable and technical persons

are especially in short supply. As a result, the cost of these skills is not in proportion to the work provided.”

And, on the 1st of September, South Africa’s private security industry payment terms will change and individuals in Grade A and B in Area A will gain a 6.4% increase in their pay packets.

But the remuneration that security officers claim is not the primary concern for Meyrick. He is about whether people can deliver a service that clients demand. Whether it’s from an armed security patrol, emergency medical rescue service, CCTV services, or soon, firefighting capabilities, this is the one company that can encompass all services with a uniquely South African view on the industry.

Importantly, demand remains.

Companies will only supply into a certain market if there is demand to fuel

the provision of services. Today, as South Africa sits in technical recession and its international credit rating lays in pieces, the demand for a high-quality security provider is greater than ever. The demand for medical rescue is massive, and the demand for a provider that can deliver firefighting is also significant.

It seems IPSS has positioned itself perfectly for the future, using its 30+ years’ experience in the industry, and making the most of opportunities that crop up, this is one company that will have its share and will not be going away anytime soon.

IPSS 0860 32 4777 enquiries@ipss.co.za www.ipss.co.za

YOUR BUSINESS

DESERVES A GREAT SIGN

LET OUR COMMUNITY OF 1.19M DESIGNERS CREATE DOZENS OF DESIGNS FOR YOU! GET A FREE DESIGN CONSULTATION, GET A DESIGN YOU’LL LOVE — GUARANTEED VISIT: WWW.SCPSONLINE.CO.ZA/PAGES/NEED-A-DESIGN

PROUD SUPPLIER AND FRIEND TO

IPSS

33 Mahathma Ghandi Street Stanger - 4450 Tel: +27 32 551 1664 Fax: +27 32 552 3844 email: platesigns@telkomsa.net Whatsapp: + 27 82 786 3245 + 27 81 708 7688 www.scpsonline.co.za

www.enterprise-africa.net / 5

CMB Multimedia does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved.

No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Multimedia Ltd 2017

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

Published by CMB Multimedia Chris Bolderstone – General Manager E. chris@cmb-multimedia.com Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-multimedia.com www.cmb-multimedia.com

Issue No.62

www.enterprise-africa.net

G4S DEPOSITA:

When Cash

is King

ALSO IN THIS ISSUE:

Van Schaik Bookstore / Zoona / IPSS / Safire Insurance

A S F E AT U R E D I N

ENTERPRISE AFRICA

SEPTEMBER 2017