FS SYSTEMS: Modern Tech Ignites New Growth Story

Fire remains one of the biggest threats to business, property, and life. For expert South African tech business, FS Systems; even after 50 years in the game, the risks from fire are still very real. Too many commercial properties still go unprotected or under protected, and stories of fire causing misery remain too common – the reports of fire at Cape Town’s parliament buildings earlier in the year were sadly not isolated.

Insurers face enormous claims every year for fire related disruption. Whether it is destroyed stock in a warehouse, business interruption from office fire, infrastructure destruction in a hospital or school, or even burning fields in a vineyard – without proper protection, insurers will dispute claims and major business interruption is the result. According to global insurer Allianz, fire and explosion are the top cause of loss (by total value) in South Africa. Unfortunately, a report from Discovery suggests claims from fire incidents are increasing. The report cites Fire Protection Association of South Africa research, showing a 68% rise in the number of reported fires between 2011 and 2020.

For FS Systems – a growing and diversifying business – fire protection through the optimisation of technology is essential for a modern business. Bringing end-to-end life security and electronic security solutions, this Cape Town-based business is doing everything possible to protect people and assets.

Its expertise has been demonstrated at the Baxter Theatre Centre in Cape Town, on UCT campus, where an upgrade to existing infrastructure was required, in a short period of time, without interrupting rehearsals for an important upcoming international show. The goal was to meet SANS Standards with new fire detection, public address system, emergency lighting, and all associated engineering. Also, at a globally-relevant gold mine in West Africa, FS Systems was called on to install new fire detection and gas suppression systems to satisfy risk management and business continuity plans.

FAST GROWING VERTICAL

Last year, the company celebrated its 50^th anniversary while introducing an exciting new cloud-driven division – FS Connect. Alongside strong growth across the group, this digital-focussed arm is experiencing a ramp up in demand as its solutions go hand-in-hand with the modern built environment.

“FS Connect has done really well and we are seeing things return to more of a normal situation post-Covid, and that is really encouraging,” says CEO Carlo Klopper. “Through Covid and the change in how people work and engage, we have seen growth in the telecommunications industry and that is a market that FS Connect serves with innovative cloud technologies. We have been serving a fast-growing vertical in the business and it is going well. We have seen a big acceptance of cloud-based technologies from end users, and more are happy to move infrastructure, clients, and service environments into the cloud. Our solution set is very much focussed on that, so it has been good for the business. The team in FS Connect has grown and they have moved into new premises.”

FS Connect aims to lead in the electronic fire detection and security industry, fuelled by advances in cloud computing and services, Internet of Things (IoT), Artificial Intelligence, and video analytics.

“We’ve had a great year and we are definitely still going from strength to strength. We continue to bring phenomenal products to market, through great processes and people. We are solving real business problems for our client base,” says Klopper.

He adds that significant success on a recent project with a leading FMCG business highlights the range of solutions available through FS Connect and the ability of the company to deliver through pioneering tech-based systems.

“We are digitising a big part of their delivery supply chain. They have drivers that do deliveries to various locations throughout South Africa.”

In the past, for these deliveries to happen, there had to be someone on site, there were physical keys required for gates and it was a cumbersome compliance and control system.

“We have changed of the delivery depots to Bluetooth enabled digital locks. We have helped the company through change management training to get all the drivers to have a company provided smartphone and app, and they now open the delivery cages autonomously, with everything synced to route planning with audit trails and visual logs through the whole process. That was great in enabling business wins for the customer as well as enabling the drivers on a digitisation journey,” highlights Klopper.

INCREASING FOOTPRINT

As much capital investment was halted, delayed or reconsidered as a result of the pandemic, FS Systems was busy servicing clients, providing some of the world’s best solutions in unique and individual packages. As the environment returns to a more stable situation, FS Systems continues to realise positivity.

“We are growing and increasing our footprint but it has taken some time to get into that now that the market is getting back to normal,” admits Klopper. “Company size has slightly increased, we have taken on projects in some additional countries in sub-Saharan Africa, and we are looking to grow and expand on that while we wait for the continental markets to return to normal.”

The group make up consists of FS Systems in South Africa (offices in Cape Town and Johannesburg), FS Connect – centred around digital solutions, FS International which takes care of projects outside of SA (with a focus on West Africa), and a division which explores opportunities in Latin America.

“In our international business, we see continuous growth in the mining sector, especially around industrial fire detection and fire suppression solution sets. We are embarking on a few mega projects that we are excited about in that space,” smiles Klopper.

The technology market around fire and life safety products is busy and competitive. The industry is set to grow by 8.8% between 2022 and 2029. Many companies remain singular in their focus, providing only installation or only product sales. But for most businesses looking for a holistic solution, it is now essential for a partner to have knowledge up and down the value chain, and the ability to bring this complicated but vital offering under one roof. FS Systems is a turnkey solutions provider and not simply a sales business. Relationships with clients are long lasting and solutions encompass more than just one piece of technology.

“We see ourselves helping with the solution set up, product sourcing, importation, distribution, implementation, support, and by taking the whole value chain, there are a lot of ways to deliver those solutions quite efficiently,” says Klopper, an industry veteran, formerly of UTC Fire & Security and GE Security.

“We believe we bring the best products and we spend a lot of time on R&D, evaluating solutions, and forming deep partnerships around the products we bring to market.

“We have a deep focus on expertise and a lot of credibility being in business for more than 50 years. We also have that depth of expertise that allows us to understand client’s needs and bring solutions versus just bringing product – that sets us apart as we bring value.”

VERTICAL FOCUS

Centred around key vertical markets, FS Systems has built a strong knowledge base in key sectors including education, mining, hospitality, healthcare, logistics, and banking. The company has proven case studies where the correct technical solution has been applied in a way that suits the environment, ultimately resulting in efficiency but overall, protection.

“We are focussing on a few fast-growing vertical markets including mining, telecoms, and logistics which we see as industries in which we can provide solutions that aid businesses in becoming more efficient, safer, and smarter.

“We have some legacy customers that we continue servicing but we see our customers evolving. They keep the legacy products but they are migrating to more digital, cloud-based solutions and that is great that we can take those customers on that journey. We have multi-year relationships and customers are looking more for value and a solutions partner that can help them on this journey rather than just someone who sources products,” states Klopper.

Cathrine Herwill, Marketing & Sales Enablement Manager at FS Systems reiterates the importance of understanding customer requirements to create a relevant solution.

“A lot of what we do right now with presales is digital and involves working with clients to understand what arrangements they have in place currently and what we can offer to add value,” she says. “A lot of the fire and life safety solutions that we offer are custom designed so there is not a one-size fits all. This is where a face-to-face visit is important, and we can then begin to understand more about the compliancy and laws in each country. There is a lot of interaction but it is all about looking at where we can add value.”

Ensuring the absolute peak performance from products is essential in such an important sector. FS Systems takes no risks and partners only with the world’s finest organisations including Gallagher – which recently launched a new HALO Smart Sensor and Command Centre software – and many more. The cornerstone in these relationships is quality above price.

“We see our relationship with our key product suppliers equal in importance to the relationships we have with our clients,” details Klopper. “It is a very important part of our business and we are very selective when bringing new products onboard. We spend a lot of time understanding the synergies between how we operate and how the OEMs operate. We make sure there is ability for longevity in the relationship and we focus on those that have a big spend on R&D so that we can be innovative together.”

Asked if the cost of bringing the world’s best tech results in pricing that is unattractive to customers, Klopper is keen to highlight value and the company’s turnkey solution provision.

“We need to provide value first and foremost. When we bring value, efficiency, and optimisation, the input cost becomes less important as the net result is positive. If we can drive big efficiency but at higher cost, our clients are likely to accept that. We see the industry moving more into vertical value chain integration. We are taking more of that value chain and that allows us to bring a more holistic product set to market at a value price without thousands of intermediaries in the process.”

Partnering with industry-leading tech providers is not about progress for the sake of progress. FS Systems is keen on products that solve problems in a more efficient manner than before – for example with the Motorola Solutions Safety Reimagined portfolio – and this can be through automation or connectivity. Products must be flexible enough to be utilised across FS Systems’ different verticals, but must remain high-performing in any situation.

“Our core product sets are there – how we take them to market is dependent on the vertical. How we customise the product and applications is also very vertical specific. We bring a broad solution as we learn more, but the product set is something we are very focused on as we are very selective over who we partner with,” explains Klopper.

CHANGE IS CONSTANT

Going forward, Klopper has always been clear on the future goal of FS Systems. During the 50-year anniversary celebrations he was steadfast in his commitment to further growth but always with quality delivery as a catalyst. This message remains the same today and ambition for ongoing improvement has not diminished.

“We want to be the leader in protecting lives and assets through technology. We want to be the industry leader in sub-Saharan Africa and other emerging markets. We are on a good journey and we see ourselves as the industry leader in the verticals that we play in,” he says.

Despite global and local economic uncertainty and supply chain challenges, the ongoing threat of fire and security incidents is incessant and requires new ideas to shield against negative fallout. FS Systems stands tall and strong in this battle and will continue to serve clients with the highest quality products and service, industry-leading knowledge, and robust foundations.

“We remain positive,” states Klopper. “The one thing we have all taken from the past two years is that change is a constant. In a business environment, there is no such thing as certainty. We are adaptive and the team has shown tremendous resilience through Covid and through the uncertainty. We take a lot of pride and confidence in the fact that our team is resilient, confident, innovative, and adaptive. We see more and more need for the type of solutions we bring to the market and we see great technology advances through AI, biometrics, deep learning, cloud computing – these are all innovations that spill into our industry and what we take to market. We have a great client-base, great supplier base, and we are very positive.

“We are doing the right things and we are growing, so that is great, especially in this environment. We have done well in difficult environments so I am very proud,” he concludes.

There is no tool to completely eliminate fire or security hazards from a company risk profile but partnering with FS Systems is a definite and obvious action that can protect people, property and assets.