As with anything challenging, there are things to be gained. In security in 2012, it’s going to be addressing the ‘bright spots’ or opportunities that present themselves during this slow recovery.
Flat is a four-letter word when it comes to the economic performance of the security installation channel in 2011. Despite predictions last year for a meager, yet optimistic 1 percent uptick in 2011, expectations did not materialize and total industry revenue neither grew nor fell — keeping at $43.9 billion. Perhaps because of this, integrators and security dealers are now ultra cautious, offering flat projections for 2012. But if, indeed, it is only caution speaking, then there may be improvement in 2012 regardless of the flat prediction. There are some positive indicators in employment levels within the security industry and signs that residential markets may be coming to life, based on results of SDM’s annual Industry Forecast Study.
As for how the security installation channel compares with the economy in general, it is slightly under par. The U.S. economy is expected to grow 2 percent in 2012, matching the rate of 2011. This is thought to be enough to keep the nation from falling into another recession, but probably not enough to make a difference in unemployment. Jobs are key because fewer jobless people leads to greater consumer spending, which leads to greater consumer confidence, which leads to greater business confidence — and more spending on security products and services.