As a result of Covid-19 virus entering our country and compromising the health of our communities, we as a nation went into Level 4 Lockdown on March 26 and remained that way for six weeks. As a result, the vast majority of New Zealand businesses were forced to close their doors. Not only was the possibility of social interaction compromised, but the economy has been placed under severe pressure, with the likelihood of a recession increasing by the day. During this time, small business including cafes, restaurants, and retail stores as well as non-profit organisations including charities, op-shops, and volunteer programs shut down. Without the continuity of business, local businesses have suffered and their viability to continue operating will be tested.
During the lockdown the Government has injected substantial funds into the economy in an effort to offset the impact of the lockdown. Despite these efforts, some small and medium scale businesses have filed for bankruptcy, gone into administration or closed completely. This has resulted in widespread redundancies. This pause on the economy not only inflicted financial strain on business-owners, but also introduced the criminal advantage of vacated buildings and residential properties. As a response, Recon Security provided essential Security Services that gave owners peace-of-mind while their worksites were empty.
The move to Level 3 provided the opportunity for not only essential services to remain open, but also businesses that could conduct their services on a safe and traceable level. This move to Level 3 helped our country restart the economy. As we move to Level 2, we will see more businesses of different sizes and services open back up. Hopefully, moving back to a more normative society will enable businesses to recover and survive. As we come out of the lockdown we will need to rebuild consumer confidence. This confidence does not happen overnight, but it does begin at the front door. We have recently adapted our Concierge service to provide contact tracing for our client’s buildings and properties so that if needed, our clients can easily pin-point when and where an infected individual made contact with a particular location.
The initiative to support local business is deeply instilled within New Zealand culture, and should not waiver even in times such as these. Now more than ever, we need to be collectively supporting local businesses so that the cash-flow remains in New Zealand and the multiplier effect of every dollar spent locally stays local and isn’t distributed to overseas entities. The multiplier effect refers to the proportional amount of increase in final income that results from an injection of spending. By trading goods and services with companies that have their headquarters overseas, dollars spent with those companies have the potential to be repatriated as profits to an overseas parent company, thus reducing the full economic benefit of that spending for New Zealand. Being in support of local businesses allows for more opportunity and growth for all sectors of our market, including Security.
Several security companies operating in New Zealand that have overseas ownership are;
- Simply Security – Chinese owned,
- Platform 4 – majority owned by SIS Australia,
- First Security – owned by Wilsons Parking, owned in Singapore,
- and Armourguard – owned by American investors.
If we apply the multiplier effect to New Zealand’s economy, by supporting local and spending our money with Kiwi-owned businesses, we are ensuring that any money spent, stays within and helps build back our economy. Above all, it is about supporting local. Kiwi-owned businesses rely on our local patronage and support.
Recon Security is proud to be a 100% New Zealand owned business for over 25 years. With over 200 personnel and 5000 clients around the country, we have been dedicated to ensuring the safety and peace of mind of our communities. We believe that during these times, it is imperative that we action that intangible quality all Kiwis have, and support those around us.