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.

“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).

 

About the Author

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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.

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