PSA-TEC Panel: Mergers & Acquisitions Surge ‘Here to Stay’; Building Automation, IoT a Wild Card

A pair of industry- and integrator-focused presentations highlighted this year’s PSA-TEC event, where participants spoke to the fallout from the recent M&A activity, subscription-based security and much more.

The State of the Integrator presentation featured SSI Editorial Advisory Board member Carey Boethel of Securadyne; United Technology’s Brent Franklin; Mike Meredith of SEi; and Integrated Security Systems’ Jeff Nunberg. Interjecting incisive analysis and addendums throughout was moderator and SSI Business Fitness columnist Paul Boucherle of Matterhorn Consulting.

To make it more interesting, Boucherle asked everyone for their input on a handful of key topics. When asked what they were most excited about, some of the leading responses the panel offered were mobility and the ability to virtually run a command center remotely on the go, and managed services and cloud-based solutions. The flipside was what they were most worried about, with answers there ranging from pricing erosion to cybersecurity to commoditization.

When asked about the recent rash of M&A activity and consolidation on both the integrator and manufacturer side, it was just about unanimous that it is positive for the former but negative for the latter. “As an integrator you have to emphasize and deliver quality services, and in doing so you can take some business away from the larger companies,” said Franklin. “However, consolidation is a negative on the manufacturer side because you lose those important relationships and they don’t seem to uphold their service.”

As an integrator you have to emphasize and deliver quality services, and in doing so you can take some business away from the larger companies. However, consolidation is a negative on the manufacturer side because you lose those important relationships and they don’t seem to uphold their service. – Brent Franklin, United Technology

Boethel added, “Consolidation creates lift for integrators; that is it allows smaller independent integrators the opening to move up to the next tier.” Nunberg said it often pulls stronger competitors out his market. Boucherle added that consolidation often broadens the talent pool as people are flushed out of the merged companies, creating a recruitment opportunity.

The panel had a similar take on competition, in that they welcome it and could almost care less what others do because first and foremost they make sure their business is doing everything it can to be the very best it can be.

“We really focus on building and maintaining a very strong relationship with the manufacturers,” said Franklin. “We then show and leverage t
hat partnership with the customer, which goes a long way.”

“I actually love competition because I have complete faith in our people and what we do, plus it reflects this is a growing industry attracting newcomers,” said Meredith.

When asked specifically about pricing transparency and margin erosion, the group espoused the virtues of bringing real, unquestionable value to customers that all but obliterates price objections. They emphasized the importance of working with vendors that value, honor and support the channel, and that the loyalty then becomes a two-way street. They all said they bail on manufacturers that sell direct, although Franklin voiced concern about that increasingly becoming an issue as consolidated suppliers become more desperate for higher volume. Each panelist said they would not hesitate to walk from price-only customers. “We don’t want customers looking to only pay $5 margins on cameras,” said Meredith.

The closing topic was establishing and maintaining a healthy and productive company culture. Each panelist said you have to invest in your people, offer them career development and allow them a say in what they do, and that quality customer care flows out of that. Employees need to feel involved and like what they are doing is important.

“High turnover means a more unstable customer base, that’s just a fact,” said Franklin.

All conceded that although very challenging to maintain, frequent and open communications are essential to a positive company culture. Meredith closed by speaking to the invaluable experience of visiting other security integration companies to see how they handle their business. “I have visited probably 25 other companies, and I always learn something. I highly recommend it.”

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Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].

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