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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GOLD BOOK SHOWS INDUSTRY REGAINING MIDAS TOUCH Between Us Pros by Scott Goldfine Editor-in-Chief Scott Goldfine has spent more than 14 years with SECURITY SALES & INTEGRATION. He can be reached at (704) 663-7125 or scott.goldfine@securitysales.com. scott.goldfine@securitysales.com T he latest industry research supports the assertion that what doesn't kill you makes you stronger. Installing security companies that have hunkered down like those in Hurricane Sandy's path to ride out recent years' economic storm and whirlwind of shifting technologies and customer preferences are beginning to see a calmer business climate on the horizon. Te forecast from a year ago — ironically in part stimulated by 'the cloud' — has panned out better than anticipated to create an atmosphere of renewed optimism. With the air clearing, company owners and managers can fnally breathe a sigh of relief and focus on thriving as opposed to surviving. Of course, security companies are not entirely out of the woods as the recovery will be incremental rather than explosive. Tus, letting your guard down now and forgetting the invaluable lessons of optimizing limited resources, maximizing efciencies and strictly adhering to proven principles of business success learned during the downturn would be more foolhardy than surfng a tsunami. Tat said looking at the results of SECURITY SALES & INTEGRATION's 2012 Installation Business Report (IBR) contained in this special annual Gold Book edition may make it difcult for industry stakeholders to keep their eyes from widening, lips from smiling and mouth from salivating. In fact, you may want to view it in private, lest bystanders fear work stress has fnally driven you over the edge. What would warrant such a reaction? Try higher levels of activity, growth, revenues and proftability almost everywhere. Survey respondents indicate 2012 will see installing security companies average a 6% increase in gross revenues, this as compared to an 8% decline the previous year and a 24% drop from 2009-11. Even better, small- (annual revenues less than $1 million) and medium-sized ($1 million to $4.99 million) frms report they will realize a 39% rise. Tose providers are also tending to more projects and accordingly expanding their workforces while stabilizing attrition. Drilling down further into specifc technology markets lends insights into the sources of this industry revival. Although overshadowed in recent times by sexier oferings such as video surveillance, access control and automation controls, reports of alarm business' demise appear to have been grossly exaggerated. Te average number of intrusion projects rose 29% and percentage of overall business revenues by 8% to lead all markets, with increases also seen in gross proft and amount charged per system as well as monthly monitoring. Fire alarms posted an even more dramatic 63% rise in projects, along with substantial increases in prices charged for both commercial and residential systems. Video continued its robust growth with a 9% uptick in average projects, 4% gain in overall company revenues, 13% bump in price charged for systems, 26% jump in IP camera sales and 19% rise in cloud-based services. Of the four major technology areas, access control posted the most modest gains. Te segment grew by 8% in average number of projects while also experiencing a 3% upswing in the price charged per system. Additionally underscoring future demand for what the security industry ofers are a reversal in the downward trend of burglaries (up 0.4% in 2011), recovery of the housing market and increases in the incidence of fres. All this without taking into account major positive currents like security solutions enhancing both commercial end-user efciencies and consumer lifestyles. While there are several less encouraging fgures among the IBR data, the overall trend is undeniably upbeat. Te Gold Book ofers a wealth of information to help ensure your prosperity throughout 2013 — SSI's 35th year. In addition to revealing research, it includes expert trends analyses, contacts and profles for hundreds of suppliers, instructional how-to's, trade associations directory, events calendar, and much more. The results of SSI's 2012 Installation Business Report may make it difficult for industry stakeholders to keep their eyes from widening, lips from smiling and mouth from salivating. 6 / SECURITYSALES.COM / THE GOLD BOOK 2013