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Things Are Looking Up for Security Integrators

SSI’s latest research indicates that although integrators may not have yet returned to the golden days of wine and roses, they have turned the corner on more recent days of whine and losses. The ninth annual Systems Integration Study shows encouraging trends in new business, access control and video surveillance that have providers feeling better about their lot.



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As a businessperson and given the recent and present economic climate, how would you view the opportunity to purchase or invest in an enterprise where the average annual revenues are nearly $15 million and firms earning between $10 million to $49.9 million grew 6 percentage points in 2012? How about an opportunity in which nearly a third of like businesses experienced significant revenue increases as compared to the prior year? What if almost a fifth of those were also seeing significant rises in gross margins in an industry still not yet close to being fully mature? Sounds pretty sweet, right? Welcome to the security systems integration business circa 2013.

That assessment is based on data culled from SSI’s ninth annual Systems Integration Study, which makes a compelling case that security integrators are if not entirely out of the recessionary woods then certainly near the forest’s edge. In other words, integrators still have much wood to chop but are at least wielding sharper axes. In fact, the research shows companies adversely affected to a significant degree by ongoing effects of the recession dropped almost 24% in 2012, and those expressing an outlook of either optimistic or outstanding rose from 65% to 73%.

Some of the reasons for that sentiment include: a 27% gain in new systems installations; reversing a steady decline in access control profit margins; larger access control projects; expansion of managed access services; 31% growth in IP camera sales, with 47% of that being megapixel models; 20% growth in digital video encoder sales; and 40% of video surveillance installations including either video management systems (VMS) or physical information security management (PSIM) solutions.

Conducted in cooperation with PSA Security Network, the International Security Conference (ISC), Security-Net and the National Systems Contractors Association (NSCA), SSI’s 2013 Systems Integration Study was distributed to thousands of security integrators nationwide. Of the 374 completed surveys submitted, 204 met the systems integrator criteria as installing primarily integrated video surveillance and/or access control systems, and the majority of accounts not being monitored burglary/fire alarm systems. Continue on for the full lowdown.

Click here to view SSI’s ninth annual Systems Integration Study.


Article Topics
Systems Integration · Research · Industry Research · National Systems Contractors Association NSCA · Research - Security STATS · Security-Net · Systems Integrator Study · All Topics

About the Author
Scott Goldfine
Scott Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration. Well-versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is nationally recognized as an industry expert and speaker. Goldfine is 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), ASIS Int'l and more. Goldfine also serves on several boards, including the SIA Marketing Committee, CSAA Marketing and Communications Committee, PSA Cybersecurity Advisory Council and Robolliance. He is a certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast. Goldfine joined Security Sales & Integration in 1998.
Contact Scott Goldfine: [email protected]
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Industry Research, National Systems Contractors Association NSCA, Research - Security STATS, Security-Net, Systems Integrator Study


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