The January edition of SSI includes our annual industry forecast as a cornerstone of our special 2015 Industry Forecast Issue. For the piece, I interviewed more than 20 of the industry’s most knowledgeable market analysts, business experts, security dealers, systems integrators, supplier representatives and trade association directors. Some of their perspectives can be found in the magazine article, with the balance of their assessments appearing in separate blog posts.
Featured in this installment: Richard Ginsburg, president & CEO, Central Security Group
What do you expect to be the major security technology and market shifts for 2015?
Richard Ginsburg: The industry’s technology will continue to evolve both in residential and commercial, with more and more Web-based control and monitoring focus. I believe a rebounding U.S. economy, lower oil prices and the perception of crime are all strong tailwinds for the industry.
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What do you expect to be the major security business and operations catalysts?
Ginsburg: Suppliers will have to innovate more to give end users better-designed and more robust equipment. Suppliers will have to deal with an increased threat of manufacturing from the Far East. For dealers, the capital outlay for new systems continues to increase, so more than ever they need to have strong liquidity themselves or a strong dealer partner to fund their installations. On the monitoring side, lower cost won’t continue to cut it. Providers will need to continue to invest in infrastructure and better technology.
What type of year in 2015 are you anticipating throughout the channel?
Ginsburg: We are bullish on the security industry and believe it will continue to outpace GDP growth. I anticipate a strong year for our manufacturers and suppliers, on the tailwinds of increased home automation offerings and demand. In the new year, dealers and integrators will be challenged by new industry entrants and increasing costs of installations. For monitoring providers, I anticipate continued pricing pressure from dealers.
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What are some pressing security industry issues you expect to remain unresolved?
Ginsburg: The industry continues to face challenges and issues related to false alarms, unscrupulous sales tactics, and poor installation standards. I believe there needs to be more acceptance of next-generation products, and that new industry entrants will prompt many to step up their games to compete effectively.
