As I reflect back on the recent ISC West show in Las Vegas, I am amazed at how much the industry has changed during the 25 years I have been in it — especially during the past five or so. This is particularly the case on the manufacturing side of electronic security; the industry segment that has undergone the most churn. Take a look at the graph page 8 of the May issue of the magazine for an overview of some of the major consolidation that has taken place the past few years.
By comparison, our research through the years here at SSI shows the installing dealer/systems integrator marketplace has remained relatively stable. A whopping 76 percent have been in the business for more than 11 years, with 33 percent of that number having in excess of 21 years in the security industry! These numbers used to be similar in the manufacturing sector as well, but those percentages have done an about-face. For example, this year nearly 240 of the 825 exhibitors at ISC were first-timers.
The problem is there are too many manufacturers (and industry trade magazines) fighting for the same, relatively few veteran installing dealers/systems integrators. The large conglomerates — Tyco, Honeywell, GE, Bosch and ASSA ABLOY — are getting bigger, while the newer, smaller manufacturers are struggling to find their niche. At the same time, these heavily diversified, global companies have brought a new, corporate sensibility and introduced people with little prior industry experience to a population of installers accustomed to more informal business practices and personal relationships. Manufacturing is not the only area in which the industry is changing.
More than 21,600 industry professionals attended the latest ISC show, with a healthy 50 percent of that number being installing security dealers/system integrators. Corporate end users accounted for 23 percent of the total and the remaining percentage were distributors, central stations, electrical contractors, guard services, etc. Although the number of installing companies in attendance was consistent with years past, the number of end users has grown significantly.
So, what does this trend mean? It means that end users want to know more about the products and services available to them. This development comes as no surprise to SSI. That’s why we added approximately 6,000 corporate end users (93 percent are Fortune 1,000 companies) to the roughly 25,000 installing companies we had for a total circulation of 31,000.
By reading SSI, end users can find out about the same technical and business issues as the installing dealer/integrator. We’ve enhanced our circulation to help our readers “bridge the communication gap” between those who specify, buy and/or install. After all, safety and security is everyone’s business — we’re all in this together.
