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
RESIDENTIAL STATISTICS: INSTALLATIONS, SYSTEM PENETRATION & APPLICATIONS Average Number of Residential Installations Per Month 251 Large companies 41 Midsize companies Small companies • Home automation and home theater account for 2% of all security contractors' revenues. Percentage of Residential Sales by Business Type 38% 19 For the third consecutive year the residential market notched increases in monthly installations almost across the board. Large companies ($10 million or more per year in revenues) improved by 24 106 projects, or 11%; midsize (revenues between $1 million and $9.9 million) by 12 projects, or 41%; small (revenues less than $1 million) remained unchanged. Some of the upswing may be attributable to ongoing consolidation that has potentially inflated the numbers due to acquired accounts. More than six in 10 respondents (66%) average 24 or fewer residential installations. The average for these projects is 38 per month, the median 13. New Privately Owned Housing Units Started (2002-2011, in thousands of units) YEAR TOTAL NORTHEAST MIDWEST SOUTH WEST 2002 1,747.7 173.7 352.4 790.7 430.9 2003 1,889.2 182.4 371 849.3 486.5 2004 2,070.1 197 370.5 960.8 2,155.3 203.8 353.9 1,039 1,838.9 174.6 279.4 929.7 1,398.4 150.6 211.7 692.2 343.9 2008 905.4 119 137.7 451.9 196.7 2009 583 68.5 100.3 297.4 116.7 2010 604.6 73.8 103.5 299.1 128.2 2011 624.1 68.5 102.7 320.7 132.2 Alarms, whether intrusion or fire, are the leading residential systems markets for installing security contractors. However, intrusion in particular soared during the period, more than doubling its 18% placing from a year ago. Fire/ life safety was the only category not to see an increase from 2011. Small companies (less than $1 million in revenues) rely on residential customers for 37% of all their business, midsize 50% and large operators 56%. NOTE: graph not intended to add up to 100 percent. 455.2 2007 10% 558.6 2006 16% 541.9 2005 18% Access control • Average total sales price that a company charges • Moving is the No. 1 reason residential accounts are lost at 48%, while Video surveillance • Average residential net account attrition rate is 6%. • The residential sector makes up 34% of the entire installing electronic security industry's business. • Dealers/integrators say the residential market accounts for 16% of their video surveillance sales revenue. SMALL: 26% MEDIUM: 6% LARGE: 1% Fire/Life safety FAST FACTS for a residential alarm system is $1,167. SMALL: $1,080 MEDIUM: $1,319 LARGE: $1,550 Intrusion detection Residential • Dealers/integrators say 10% of their revenue is derived from residential access control sales. SMALL: 15% MEDIUM: 3% LARGE: 2% nonpayment leads to attrition 24% of the time. SMALL: 47% Moved; 26% Nonpayment MEDIUM: 52% Moved; 18% Nonpayment LARGE: 46% Moved; 20% Nonpayment Consistent with residential security business picking up, the housing market exhibited its second year in a row of rising levels of new construction. That reverses a downtrend that ran from 2005 to a low in 2009. Despite the continued overall gain, dips were still recorded in the Northeast and Midwest regions. Still, the overall market remains at less than one-third of what it was six years ago. By a more than 2-1 margin, the South continues to be the most active market. Source: U.S. Census Bureau THE GOLD BOOK 2013 / SECURITYSALES.COM / 23