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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 Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration, directing all editorial aspects of the magazine brand in print, electronically, online and in person. The voluminous, innovative and award-winning body of work he has distinguished himself with since joining the publication in 1998 includes groundbreaking research, landmark features, leadership roundtables, high profile case studies, and many industry exclusives. Well versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is a nationally known figure in demand as an industry presenter and subject matter expert to mainstream media. He is responsible for developing many unique products and programs, including the SSI Industry Hall of Fame, Control Panel (industry’s first E-mail newsletter), Police Dispatch Quality (PDQ), Marketing Marvel, Installers of the Year, Integrated Installation of the Year, Security Industry Census, Systems Integration Study, Installation Business Report, Operations & Opportunities Report, Commercial End-User Study and Security’s Fantastic Fleets. Recognized for his relationship building, integrity and lead-by-example ethic, Goldfine is a solutions-oriented team player who advises and collaborates with industry dealer/integrator, consultant, distributor, central station and manufacturer icons, luminaries and executive business leaders on a daily basis. He is also actively involved in several security events and organizations, including the Electronic Security Association (ESA), Security Industry Association (SIA), Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), PSA-Tec, SAMMY Awards, International Security Conference and Exhibition (ISC), Electronic Security Technology Summit (ESTS), Mission 500, Electronic Security Expo (ESX), ASIS Int’l, Honeywell CONNECT and other supplier conventions. Goldfine also serves on several boards, including the CSAA Marketing and Communications Committee and PSA Cybersecurity Advisory Council. A certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast, Goldfine graduated with honors from Cal State, Northridge with a management degree in Radio-Television-Film. His professional media endeavors have encompassed magazines, Internet, radio, TV, film, records, teletext and books. Goldfine resides in the Charlotte, N.C., area with his wife, son and three cats.
Contact Scott Goldfine: sgoldfine@ehpub.com
View More by Scott Goldfine
Industry Research, Operations & Opportunities Report OOR, Research - Security STATS




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