Security Sales & Integration

The Gold Book 2013

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.

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COMMERCIAL/INDUSTRIAL STATISTICS: PROJECTS, MONITORING & ATTRITION Average Number of Commercial Installations Per Month Average Number of Industrial Installations Per Month 148 Large companies 31 49 25 Large companies 10 M Midsize companies com mpanies 7 Small companies Midsize companies Small companies For the commercial sector, it was a very good year for small security companies, almost flat for midsize and rather rough for large enterprises. Midsize providers with $1 million to $9.9 million in annual revenues increased their average monthly workload by 1 project, or 3%. The best gain was seen by small companies earning less than $1 million annually with a rise of 7 jobs (39%). Large firms ($10 million or more in earnings) saw their schedules trimmed by 41 projects, or 22%. Still, big companies average 4.7 times more projects than midsize operators and 5.9 times more than small organizations. Security businesses of all sized companies averaged more industrial installations per month compared to the previous timeframe. Large companies saw a rise of three projects, or 7%; midsize two installations, or 25%; and small one, or 17%. Large security providers average 4.9 times as many industrial installation projects per month as midsize companies and 7 times as many as small enterprises. Leading Reasons for Commercial Accounts Attrition Moved 28% Nonpayment 25% Competitive Takeover 2% Other 18% Unsatisfed Customer 4% Death 3% 0 5 10 15 20 25 30 As a sign of ongoing economic challenges, nonpayment rose by 2 percentage points from 2011 as a leading cause of commercial attrition for security contractors. In addition, a worrisome indicator of cash-flow issues was the "other" category being comprised almost exclusively of customers going out of business. And although unsatisfied customers declined, competitive takeovers rose. On the plus side, a potential sign of rising stability was evidenced by a 5-point drop in clients moving. Average Price Charged for Commercial Alarm Monitoring 43% 27% 13% 7% Less than $20 $20-$30 $31-$40 $41-$50 3% $51-$60 7% More than $60 Those charging $41 or more for monthly commercial alarm monitoring continued to rise, heaping a 4-percentage-point gain on top of the same rise from a year ago. At the same time, those ringing up less than $30 fell by 3 points. The leading category remained $20-$30, with an average of $33 and a median of $25. Perhaps the trend of rising returns here is due to the offering of additional monitored services such as managed access control, remote video services and others. 24 / SECURITYSALES.COM / THE GOLD BOOK 2013

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