The concern factors that may negatively affect dealer and integrator sales over the next few years have remained nearly constant from year to year. The state of the economy continues to cause the most concern.
“Security is very sexy right now,” according to Bill Bozeman, president and CEO of PSA Security. Headlines on Homeland Security and terrorism encourage businesses to invest in security, he told attendees at the recent Barnes Buchanan Mallon Conference. Integrators are ready.

“Now that we’re at the front end of the planning cycle, we’re attracting new competition. That’s just the way business works.”

Over the last two years, the entry of more IT integrators, electrical contractors, structured cable installers, and other contractors has increased pressure for quality and service, Bozeman said.

“Business now is good and getting better. Margins have dropped, but have stabilized,” he said. Still, “you have to sell a lot more competitively than you did a few years ago. Keeping up with technology is a challenge. Competition is fierce out there at this point. Find a way to cope.”

For Michael May at Videominex, the way to compete and win is clear: “You’ve got to have one great concept you can deliver to the marketplace.” The company has extended the use of remote video beyond security, using proprietary software and highly trained employees at the monitoring center.

“Remote can be turned into information people are willing to pay for,” May said.

A common use of video, for example in a retail setting, is to confirm that the store is free of crime and its employees and customers are safe and secure. Videominex enhances the video monitoring to provide management with data on customer count or store conditions.

“Every time a signal comes in, it’s a transaction that means more revenue,” May said.