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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);…

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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 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: [email protected]
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Industry Research, Installation Business Report IBR, Research - Security STATS, Systems Integrator Study

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