Editors Angle: Are Integrators Gains Really Modest?

Once again, SDM is presenting its Top Systems Integrators Report. This report ranks by revenue the firms that sell, design and install multi-technology electronic security systems. This year is the 10th annual, and it bodes well for the industry. Revenue is up, as are employment and the number of business locations.

Several companies, such as Antar-Com and Security One Systems, that were acquired over the last year have had their revenues combined with their parent companies. Others are new to the report this year, namely SST, CompuDyne Corp., Convergint Technologies LLC, and Hamilton Pacific L.P.

Despite the report’s respect within the industry, some major integrators are not participating in it fully. They maintain they are constrained from breaking out their system integration totals from their overall revenues by reporting requirements. Some have cited new legislation that has changed their ability to report detailed revenue figures.

Unfortunately, because of the size of these companies, their non-participation may be having a noticeable effect on the report. The overall revenue increase for SDM’s Top Systems Integrators Report, 12 percent, was more modest this year than it had been in previous years. Is this the actual situation in the systems integration industry, or is it the result of several leviathans estimating the same income as last year?

SDM’s Top Systems Integrators Report is used year-round as a resource by those inside and outside the industry. Stock analysts consult it. Figures from it are quoted in their inch-thick reports. The SDM report can affect the investing climate and the economy for systems integrators. A fast-growing industry attracts more investment. A slow-growing one does not.

Of course, many of the top 10 systems integrators are only parts of massive multinational corporations. The integration portions of their businesses in some cases are small in comparison with the corporation’s total revenue. Changing policy for all divisions of a massive international concern or making an exception for one division may not be popular in the executive offices.

But it should be feasible. SDM’s Top Systems Integrators Report can only be as complete as you make it. It is your report on your industry. The more complete it is, the more accurate the security systems integration industry can be portrayed, and everyone in the industry will benefit.

Next year, when you receive that application in the mail, please convince your managers of the importance of the report to the industry and to your company. Tell them it is better for the industry to know the accurate answers to the few questions asked than to have people guess at them. Without the proper information, the industry is left to assume the worst. With complete information, they can know the best. It is up to you.

Russ Gager, Managing Editor

IN THIS ISSUE

Pressure is mounting in Congress to legislate chemical plant safety. Although many leading chemical, petrochemical, pharmaceutical and paint and pigment companies already have upgraded security voluntarily, those companies that have not been required yet to match these companies’ expenditures may necessitate legislation.
Russ Gager is Senior Editor for SDM magazine.

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