A Commitment to Service, Technology and Planning has Kept Business Booming at BLAST-OFF Fireworks #BusinessEvolved

In 2020, RBC featured the story of BLAST-OFF Fireworks – Western Canada’s largest fireworks company. At the time, owners Matt and Brandi Bialek were managing well through the disruption caused by the pandemic thanks to long-standing commitments to smart business planning and personal customer service. Four years later, BLAST-OFF continues to light up the market, applying lessons learned during COVID, adapting to changes in the workforce and leveraging advances in technology to thrive. And their dedication to service and rigorous planning continues to pay off, providing long-term stability in an explosive industry.

We recently caught up with Matt Bialek to find out what’s new with BLAST-OFF and whether the pandemic changed either his business or the fireworks industry.

Q: When we last talked, it was the heart of the pandemic. Did COVID change the way you did business?

Bialek: One of the main outcomes of COVID was the increased demand for personal service. Our business has always offered a very high-touch approach, both in retail and distribution. Emerging from the pandemic, I noticed that this personalized service became even more sought after than before.

I have been in business 25 years and the relationships with our customers have very much deepened – to the point where we’ll talk about everything except for fireworks until the last two minutes of our conversation. COVID really reinforced the connections we have with our customers, and I feel they’re more important now more than ever.

Q: How are you balancing high-touch service with advancements in technology?

Bialek: We are using technology in ways we had not envisioned four years ago. We’re using a lot of automation and AI, but in areas that aren’t high touch – where technology can improve the customer experience behind the scenes or in the online environment.

On the retail front, customers love personalized attention – when you go above and beyond to do something unexpected. Technology can help you do that. On the wholesale level, the use of technology can deepen relationships and connections.

Q: What kind of technology have you introduced to enhance the way you do business?

Bialek: We have a lot of irons in the fire, from new website features and backend warehouse management to building automation and in-field merchandising solutions. This fall, we will start using AI to develop customized firing orders and firing sequences for fireworks shows. We have also invested heavily in CRM software customization and ERP software to help make sure we have a seamless start-to-finish pipeline system for our customers.

Q: Have you noticed a shift in the workforce since COVID – and if so, how have you adapted?

Bialek: Post COVID, we have noticed that the workforce has definitely changed. Some of the skills we had taken for granted are no longer in ample supply. For instance, there is a shortage of people who have a detailed knowledge of what fireworks do, how they perform, and where they would fit into a show. This is one area where we are using AI to fill the gap.

AI will develop a custom firing sequence for our retail or our display customers. It will take all the data that is generated from a particular order and custom sequence these fireworks shows without the intervention of a human. It’s never been done before, but we’re doing it specifically because of the challenges with personnel coming out of COVID.

We are also finding that positions that require a customer-centric skill set have been problematic to fill. Everything from the ability to chat one-on-one and hold an in-depth discussion with a customer to HR, accounting or sales. So again, we’re filling some of these gaps with technology and systems automation.

Q: I know your industry was significantly disrupted during the pandemic because most fireworks come from overseas in China and Cambodia. What does your supply chain look like today?

Bialek: Our supply chain today is totally different than five-to-ten years ago. We used to take inventory availability for granted within our business model. While production lead times have always been long within our industry, we could place orders before COVID and expect those shipments to arrive on-time, usually within a 4-month window.  Now this is not the case. We continue to dramatically increase our storage capacity here in Canada, simply because we just don’t have a firm handle on when our goods may arrive. We have some goods on order that we’re waiting on from early 2020.

We have learned that a lot can happen very quickly, so you have to build the unexpected into your business model. What may have once seemed impossible is now entirely possible – and you have to factor those impossibilities into your business planning.

Q: How have you adapted to this changing supply chain?

Bialek: We have added a lot more capacity and licensed heavier with the federal government. Since we last spoke, we added two additional properties to our campus of buildings in Selkirk, and we’re still in the market to expand. While my inventory carrying costs have gone up, it’s simply a new cost of doing business, and this strategy has worked well for us.

Q: Has the competitive market changed for you at all?

Bialek: We are unique in that we have a big swath of the product pipeline with fireworks. We do everything from importation to distribution to retail – so that puts us in a strong position.  If competition pops up in one space, we’re able to rapidly put resources in place to protect our business.

The good thing about our industry is we don’t see a lot of new entrants. The barriers to entry are absolutely astronomical and the licensing requirements are prohibitive. Every step of the game, from transportation to storage to handling to packing to shipping, it’s all very heavily regulated. If anything, we’re seeing more consolidation versus new entrants.

Q: Has BLAST-OFF done any consolidation or acquisition?

Bialek: We purchased a distributor in British Columbia over the past couple of years. They were servicing Western Canada, and their insurance and licensing requirements became very prohibitive – hence their decision to sell their fireworks operations. We purchased this portion of their business and their book of clients.  This allowed us to expand quickly, and gain market share that would have otherwise been outside of our reach.

Q: With the industry being rather ‘explosive,’ how do you manage the risks?

Bialek: We have really diversified our operations. When we looked at our business model a few years ago, we realized we had a couple of big challenges. Fireworks are both seasonal and heavily regulated – one day we could wake up, and the fireworks landscape could completely change… without any advance warning.  We looked for ways to mitigate this risk and we entered the real estate market. Our organization branched out and began purchasing commercial and industrial leasable units. Today, we use the leasehold income derived from these investments as a hedge against the ‘what-ifs’ of our industry.

Q: How has RBC supported the evolution of your business?

Bialek: Our RBC account manager Josh deserves a lot of credit. I was surprised with how open RBC was to our vision of expanding into real estate and expanding our inventory footprint here in Canada.  This is especially true when considering the current interest rate environment and our uncertain economic times. But we had a firm vision, and RBC agreed that our plan was a good idea. Their support has helped us tremendously – they helped make our vision come to fruition.

Fireworks have the power to delight and surprise. But Matt Bialek takes the element of surprise out of his business operations – he plans for the unexpected, ensure his customers are well taken care of, and leverages technology solutions to fill any emerging gaps.

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