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Systems Integrator Study — Integrators Bagging Bigger Bucks

What’s the profile of a typical electronic security systems integration business? If you’re in that line of work, the odds are your company is 20 years old or less (73 percent); has 25 or fewer full-time employees (64 percent); has in excess of $1 million in annual gross revenue (62 percent); derives most of its business from the commercial and industrial markets (81 percent); and specializes in CCTV and access control (59 percent).



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What’s the profile of a typical electronic security systems integration business? If you’re in that line of work, the odds are your company is 20 years old or less (73 percent); has 25 or fewer full-time employees (64 percent); has in excess of $1 million in annual gross revenue (62 percent); derives most of its business from the commercial and industrial markets (81 percent); and specializes in CCTV and access control (59 percent).

These were among the figures tabulated from Security Sales & Integration’s second annual Systems Integration Study. The findings are the result of pulling out responses from systems integrators who participated in SSI’s 2005 Installation Business Report. As usual, the overall statistics from that study can be found in the 2006 Top 500 Resource Guide (formerly known as the Buyers Guide & Fact Book).

About a fourth of the Installation Business Report’s 400 respondents were classified as systems integrators, as opposed to traditional security dealers. This was differentiated by categorizing integrators as those using a business model based on installation and service sales as opposed to recurring monthly monitoring revenue.

When this study was first published last year, it created a particularly high level of interest because there had been precious little data compiled on the security systems integration business. Now, with the accumulation of multiple years’ worth of results, it is even more meaningful because comparisons can be made and trends can begin to be discerned.

For example, the data shows that although still predominant, the growth of commercial business is lagging behind that of industrial and residential. In addition, CCTV is continuing to increase its margin of dominance as the No. 1 revenue source. Furthermore, and very encouraging for systems integrators, the scale and typical price of installation projects, as well as the gross and net profit margins, rose across the board in 2005.

Please refer to the print version of Security Sales & Integration magazine for graphs, charts and captions that crystallize where the systems integration business is today. Also included in the print version is a pair of leading integrators further analyzing those findings and speculating where the industry will be tomorrow.

Other systems integrator studies available for download include:

2008: Integrators Design Profitable Plan

2007: Integrators Contend With the Effects Of Consolidation

2005: Identifying the Integrator


Article Topics
Video Surveillance · Access Control · Fire/Life Safety · Intrusion · Systems Integration · Other · Fire/Life Safety 2 · Research · Industry Research · Installation Business Report IBR · Research - Security STATS · Systems Integrator Study · 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.
Contact Scott Goldfine: sgoldfine@ehpub.com
View More by Scott Goldfine
Industry Research, Installation Business Report IBR, Research - Security STATS, Systems Integrator Study


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