PSA Security Network’s Bill Bozeman Shares His 2012 Industry Forecast
PSA Security Network President and CEO Bill Bozeman.
What does 2012 hold in store for your business and the industry? Find out with the many insights offered in SSI‘s annual Industry Forecast, which is featured in our January issue. This year, more than 25 of the industry’s most prominent research firms, trade associations, business and finance specialists, systems integrators, manufacturers, consultants, and alarm companies rendered a deep and sweeping portrait of the impending security landscape. The participants addressed the most significant changes, challenges and opportunities they anticipate taking place during the next 12 months in seven critical areas. They are: security technology; security markets; security industry; business and operations; politics and legislation; risks and threats; and ongoing challenges. With the boundaries of print being too constrained to present all of the fascinating and valuable assessments, each of the respondents’ complete, edited interviews are being offered exclusively online. Happy New Year!
Bill Bozeman, CPP
President and CEO
PSA Security Network
Security Technology
Bill Bozeman: The integration of various platforms is still a challenge. PSIM is in its infancy. Eventually we will get there as this is what the end user is demanding. But it will take time, money and commitment.
Security Business and Operations
Bozeman: The integrator community will struggle with maintaining respectable profitability, say around 5%-10% EBDITDA, with a pure contractor model. Integrators who are well financed or have a recurring revenues stream will have a huge advantage over those with the pure contractor model. Financing the contractor model will continue to be unattractive to the banking and investment community.
Security Industry
Bozeman: Similar to U.S. demographics, the haves and the have not’s in the physical security integration space will clash for positioning with the end user. Will the 100K -300K project go to the local integrator with ties to the community or will the end user choose the big national as a safer option regardless of performance considerations? I envision more cutthroat sales tactics and reduced cooperation between the big internationals and the local integration community. The business dynamics between the larger plays and the smaller local integrators has for the most part not worked to the benefit of the local, smaller integrator. The giants have chosen to team with the independents as an installer and not share the margin on equipment or RMR. Of course the risk is in the installation and deployment, and herein lies the problem for the smaller integrator teaming with the big guys.
Politics and Legislation
Bozeman: The lack of faith in our political system and politicians in general is crippling our country and consequently a significant percentage of business opportunities are lost or put on hold.
Risks and Threats
Bozeman: Some of the larger independents who have operated as an independent for decades and have stated that they will never sell to the competition will, in fact, do just that.
Ongoing Challenges
Bozeman: Low margins on hardware sales, difficulty financing smaller companies and difficulty financing construction projects.
Projecting 2012
Bozeman: Moderate growth for PSA and the industry in general. The elections will have a big impact on consumer confidence and this impacts all business opportunities.
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About the Author
Scott Goldfine
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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