SSI serves security installing contractors providing systems and services; surveillance, access control, biometrics, fire alarm and home control/automation. Coverage in commercial and residential product applications, designs, techniques, operations.
Issue link: https://securitysales.epubxp.com/i/97698
INSTALLATION COMPANY STATISTICS: REVENUES, EXPERIENCE & ACCOUNT BASES Companies' Years in Business 23% 21% 23% 13% 8% 1-10 11-20 21-30 31-40 41-50 2011 Company Gross Revenues REVENUES PERCENTAGE 12% This graph shows a substantial increase in more established companies as 31 years or more in business rose 3 percentage points to a third of the total (33%). Small companies tend to be younger, with the average years in business being fewer than 20; medium size firms average 36 percent in the 1-10 range, while large firms average more than 31 years. On average, companies reside at the 25-year mark — 2 years older than in 2010. 50+ Estimated 2012 Company Gross Revenues Less than $100,000 18% REVENUES $100,000-$499,999 26% Less than $100,000 18% $500,000-$999,999 11% $100,000-$499,999 23% $1M - $4.99M 22% $500,000-$999,999 13% $5M - $9.99M 7% $1M - $4.99M 21% $10M - $49.99M 7% $5M - $9.99M 9% $50M - $99.99M 2% $10M - $49.99M 8% $100M+ 7% $50M - $99.99M 1% $100M+ 7% Once again rose-colored glasses prevailed as many operators substantially overstated their projected gross revenues a year ago, apparently thinking the recession would be but a memory rather than an ongoing daily grind. Those reporting revenues of less than a half-million dollars rose 7 percentage points versus initial expectations, meaning all those owners and operators thought they would earn more than that in 2011. More than one in five providers banked $100,000 to $499,999, but the average gross revenue was $11.2 million, the median $750,000. PERCENTAGE Assuming a more guarded (or perhaps simply more accurate) assessment of projections, respondents anticipating revenues of at least $500,000 are 3 percentage points fewer (41%) than they were a year ago and more in line with how the final 2011 figures panned out. However, those looking to make $5 million or more came in at 2 points higher (25%) than in 2011. Any way you slice it, it appears the industry is yet to break free of the economic doldrums. The average estimated total gross sales for 2012 is $11.9 million (6% growth vs. 2011). The median is flat at $750,000. Installation Company FAST FACTS • Average number of installed accounts in 2012 is 424. • Annual residential net account attrition rate is 6%. • Annual commercial net account attrition rate is 5.5%. • Large companies average 148 commercial installations per month, midsize frms average 31 and small frms perform 25. 16 • Large companies average 251 residential installations per month, midsize frms 41 and small frms 19. • Large companies ($10 million+ in annual revenues) average 49 large industrial installations per month; midsize frms ($1 million to $9.99 million) 10; and small frms (less than $1 million) 7. / SECURITYSALES.COM / THE GOLD BOOK 2013 • Overall, 75% use a third-party central monitoring station; for small companies the percentage is 88%, midsize companies 61%; and large frms 47%. • Overall, 17% of operators own and operate their own central monitoring stations (6% for small frms; 25% for midsize; 47% for large).