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Report: 35% of Integrators Concerned About Maintaining Quality Installations

After several years of internal austerity and resignation to pricing erosion, security integrators are looking externally to turn their fortunes. The third annual Operations & Opportunities Report (OOR) shows company managers are eager to negotiate better deals on the goods they acquire and sell to curtail margin squeeze. The 2011 OOR also exposes the best technologies, services and markets to exploit.

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“I’m as mad as hell and I’m not going to take this anymore!” That famous line from the classic 1976 film “Network” exemplifies the palpable change in attitude among owners and operators of installing security companies. In this case, the cause of the ire is contending with shrinking margins further inflamed by an extended recessionary period that in many cases also necessitated extensive cost-cutting. According to new research, managers have apparently hit the wall and are becoming weary of doing more, and more, and more (add infinitum) with less.

To improve their lot, many of these security professionals are looking to negotiate better wholesale arrangements with their suppliers as well as pass along pricing hikes to their customers. That’s just a hint of the abundance of business intelligence unearthed from SECURITY SALES & INTEGRATION‘s third annual Operations & Opportunity Report (OOR). This unique, original data identifies security integration and dealer companies’ top money-making and cost-saving ideas, leading growth opportunities, and surveys operational metrics.

Nearly 200 executives, managers and others from across the nation, representative of all sizes of companies, were asked a host of questions targeting not only the best ways to boost profits and reduce expenses, but also the implications of implementation. Further, respondents were asked to identify the most promising new technologies and service offerings, as well as the most viable vertical markets. Several financial and operational questions were also included.

Among the key changes from a year ago: profit margins are 9 percentage points below projections and down 7 points from a year ago; general access control and wireless networks are the most appealing technology areas; residential and elderly homes/facilities are rising markets; Internet/Web-based monitoring is gaining tracking as a recurring revenue opportunity; vehicle fuel costs is cited as an increasing drain on the bottom line; and reputation/referrals continues upward as the leading boost to the bottom line.

Read the 2011 Operations & Opportunity Report (OOR).


Article Topics
Business Management · Research · Industry Research · Operations & Opportunities Report OOR · Research - Security STATS · All Topics

About the Author
Scott Goldfine
Scott joined SECURITY SALES & INTEGRATION in October 1998 and has distinguished himself by producing award-winning, exemplary work. His editorial achievements have included blockbuster articles featuring major industry executives, such as Tyco Electronic Products Group Managing Director Gerry Head; Protection One President/CEO Richard Ginsburg; former Brink’s Home Security President/CEO Peter Michel; GE Interlogix President/CEO Ken Boyda; Bosch Security Systems President/CEO Peter Ribinski; and former SecurityLink President/CEO Jim Covert. Scott, who is an NTS Certified alarm technician, has become a respected and in-demand speaker at security industry events, including presentations at the Central Station Alarm Association (CSAA) Annual Meeting; California Alarm Association (CAA) Summer and Winter Conferences; PSA Security Network Conference; International Security Conference and Exhibition (ISC); and Security Industry Association (SIA) Forum. Scott often acts as an ambassador to mainstream media and is a participant in several industry associations. His previous experience as a cable-TV technician/installer and running his own audio company -- along with a lifelong fascination with electronics and computers -- prepared Scott well for his current position. Since graduating in 1986 with honors from California State University, Northridge with a degree in Radio-Television- Film, his professional endeavors have encompassed magazines, radio, TV, film, records, teletext, books, the Internet and more. In 2005, Scott captured the prestigious Western Publisher Maggie Award for Best Interview/Profile Trade for "9/11 Hero Tells Tale of Loses, Lessons," his October 2004 interview with former FDNY Commander Richard Picciotto, the last man to escape the Ground Zero destruction alive.
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Industry Research, Operations & Opportunities Report OOR, Research - Security STATS