SDM's 2014 Top Systems Integrators Report
While challenges persist, great improvement was seen between 2012 and 2013, and it continues into 2014.
SDM’s Top Systems Integrators — a report that ranks companies by their North American Systems integration revenue — collectively grew revenue by 17 percent in 2013 to reach $7.36 billion. This marks the first year for positive growth since 2009. While some of the growth can be attributed to upward estimates for several of the largest integrators (Tyco Integrated Security and Stanley Security), the rest stems from the fact that almost every single integrator in the top 25, as well as many lower-ranked integrators, moved forward. Some improved significantly: Convergint Technologies, for example, grew from $278 million in 2012 to $328 million in 2013.
“The petrochemical market continues to be strong, along with the healthcare market. Data centers also continue to be a strong growing market for us,” describes Convergint, ranked No. 6. The company added, however, that K-12 education and state colleges and universities exhibited slower growth last year.
Systems integrators largely described the 2013 market as strong. The rebounding of new construction, the expansion of businesses, and a continued awareness of the need for protecting people and property were the major growth factors.
“The markets TSI serves created a strong year for 2013 security volumes. We participated in many new projects as well as long-term system upgrades and systems remediation,” comments Tech Systems Inc., No. 18.
MidCo Inc., No. 34, noticed more opportunities. “Companies are spending more for new projects and new buildings,” the company observes.
“We found the market just a little stronger than average. Corporate spending loosened up and money was budgeted for security upgrades at some Corporate 100 sites,” notes Koorsen Security Technology, ranked No. 40.
In addition to a higher level of new construction market and business expansion observed by the integrators, another prime factor continues to be the push from analog to IP, and convergence. According to No. 19, SDI, “We see a few things driving the demand: Certainly, the slow migration from analog to IP for video and access controls is continuing to move along. More meaningfully, however, we see a significant increase in the convergence of the traditional IT and physical security worlds — adding project scope.”
Revenue classified as North American systems integration revenue rose from $6.29 billion in 2012 to $7.36 billion in 2013 — even though seven fewer companies are included in the report. However, for comparison purposes, SDMmeasures the top 100 companies’ 2012 integration revenue ($6.25 billion) against the top 100’s 2013 integration revenue ($7.33 billion). Several larger-sized systems integrators did not report their earnings this year and were omitted from the report; including BCI Technologies, Northland Control Systems, and Securityhunter. However, the report has been re-energized by the addition of several dynamic systems integrators that are new to the report this year, including ISI Security, Universal Protection Security Systems LP, Dakota Security Systems Inc., Electric Guard Dog, TRL Systems, Utah Yamas Controls, and several others.
“We saw just under 10 percent growth in 2013,” reports Dakota Security Systems, ranked No. 23. “We cover a number of geographies and saw broad economic recovery across all of our customer demographics.”
Within certain vertical sectors, the Top Systems Integrators noticed varying degrees of opportunity. Noted growth areas were transportation, energy, warehouses, industrial/manufacturing, education, healthcare, financial institutions, construction/equipment rental, and even government.
The integrators were divided about two of three top market sectors in 2013: education and healthcare. On the one hand, “healthcare exhibited growth through a need to enhance the patient experience and reduce the number of hospital-acquired infectious disease re-admissions,” shares Johnson Controls Inc., No. 5. On the other hand, “the healthcare market is showing caution over the Affordable Care Act,” notes Universal Protection Security Systems, ranked No. 21.
The challenges that systems integrators face continue to be greater competition and tighter profit margins. “We found significantly more work in the security sphere in 2013 versus 2012, though the margins were tighter,” reports No. 113, Protex Central Inc.
“There was an increased competitive profile due to more entries into the market from the IT side of the business,” observes No. 31-ranked Genesis Security Systems.
And while most integrators found video surveillance to be the strongest technology in demand, others are seeing video turning softer due to a bigger supply of integrators. “The camera business has slowed down due to technology companies entering the market,” notes Habitec Security, No. 109.
While challenges persist, there is no doubt that great improvement was seen between 2012 and 2013, and it continues into 2014. “We started to see companies release planned budgets in 2013 that were pent up in 2012 due to weaker financial markets,” relates Protection 1, ranked No. 9.
“The general market for security was marginally improved over 2012. The lack of economic growth kept us from seeing larger improvements, but overall the market seems favorable,” says Electric Guard Dog, ranked No. 28.
Among SDM’s Top Systems Integrators, 80 percent expect revenues to increase in 2014 compared with last year.
How to Read the Top Systems Integrators Report
The 2014 Top Systems Integrators Report ranks North American companies by their security systems integration revenue. This ranking is based on data provided to or, in a few cases, estimated by SDM. Ranked companies were asked to submit either an audited or reviewed financial statement, or a copy of their income tax return showing total gross receipts for the stated period. The vast majority of the firms ranked are privately held.
The main table, which begins on page 62, ranks 117 companies by their North American revenue in 2013 from their security system integration projects. Integration includes solutions such as design, project management, product, installation, programming, start-up, training, and time-and-materials-based service sold directly to an end-user customer or through a tier of contractors. This includes revenue related to security, such as: access control, ID/badging, video surveillance/analytics, intrusion alarms, perimeter security, electronic gate entry, intercom/communications, fire protection, etc. It does not include recurring revenue, as that is counted towards ranking on the SDM 100 Report.
Note: an e following the figure indicates it is an SDM estimate.
More from the Report
To gain additional information beyond that published in this issue and online, the complete SDM Top Systems Integrators Report and Database is available in Excel format. Included are contact names, mailing addresses, telephone numbers, website URLs, targeted vertical markets, branch office locations, and much more. SDM’s Top Systems Integrators Report and Database contains the information needed to target products and services to the systems integration market.
The cost of the report is $595. It may be ordered by contacting Heidi Fusaro at 630-518-5470 or by emailing firstname.lastname@example.org.
|Company & Headquarters Location||North American Systems Integration Revenue 2013||Number of New Projects||Full-time Employees|
Tyco Integrated Security
Boca Raton, Fla.
Siemens Industry Inc., Building Technologies
Buffalo Grove, Ill.
|4||Stanley Convergent Security Solutions Indianapolis, Ind.||$500,000,000e||na||8300e|
Johnson Controls Inc.
|6||Convergint Technologies LLC Schaumburg, Ill.||$328,436,189||875||1,600|
Kratos Public Safety & Security Solutions Inc.
San Diego, Calif.
G4S Technology LLC
Vector Security Inc.
|13||Securadyne Systems LLC Carrollton, Texas||$69,000,000||na||311|
|15||AFA Protective Systems Inc. Syosset, N.Y.||$44,274,656||6,500||443|
RFI Communications & Security Systems
San Jose, Calif.
Tech Systems Inc.
Tri-Signal Integration Inc.
Universal Protection Security Systems LP
Santa Ana, Calif.
|22||Entech Sales & Service Inc. Dallas, Texas||$25,422,645||100||201|
Dakota Security Systems Inc.
Sioux Falls, S.D.
Los Angeles, Calif.
|25||MSA Systems Integration Eatontown, N.J.||$23,200,000||250||96|
Electric Guard Dog
|29||Security Equipment Inc. Omaha, Neb.||$21,564,036||864||147|
|30||Unlimited Technology Inc. Chester Springs, Pa.||$20,500,000||680||71|
|31||Genesis Security Systems LLC Germantown, Md.||$20,500,000||75||51|
Allied Fire & Security
Burr Ridge, Ill.
|35||Advanced Electronic Solutions College Point, N.Y.||$17,854,202||na||64|
SSD Alarm Systems / Kern Security & Fire / McNeill Security & Alpha Alarm
North Little Rock, Ark.
|38||Integrated Security Technologies Herndon, Va.||$16,859,573||422||70|
|39||TRL Systems Rancho Cucamonga, Calif.||$15,900,000||350||96|
|40||Koorsen Security Technology Indianapolis, Ind.||$15,502,155||100||53|
ARK Systems Inc.
The Protection Bureau
American Alarm & Communications
New York, N.Y.
Dallas Security Systems Inc. & DSS Fire Inc.
|52||Firstline Security Systems Inc. Anaheim, Calif.||$11,690,000||114||49|
|54||F.E. Moran Inc. Alarm and Monitoring Services Champaign, Ill.||$11,300,058||5,910||171|
Utah Yamas Controls
ADS Security L.P.
Midstate Security Company
Scarsdale Security Systems Inc.
Operational Security Systems Inc.
ArCom Systems Inc.
North Little Rock, Ark.
Minuteman Security Technologies Inc.
Ferndale Electric Systems Integration Division
Sonitrol SW Ohio
Sonitrol New England
Rocky Hill, Conn.
Fairview Heights, Ill.
Advance Technology Inc.
Guardian Protection Services
Enterprise Security Inc.
Ackerman Security Systems
Sentry Communications & Security
APL Access & Security Inc.
St. Louis, Mo.
Per Mar Security Services
CGL Electronic Security Inc.
Bates Security LLC / Sonitrol of Lexington
Access Control Consultants
SecurAlarm Systems Inc.
Grand Rapids, Mich.
Tele Tector of Maryland
Electronic Security Concepts LLC
Electronic Security Systems
Sonitrol of Sacramento & Orange County, Cybex Security
Salt Lake City, Utah
Grand Rapids, Mich.
Atlantic Coast Alarm Inc.
Mays Landing, N.J.
American Security Systems Inc.
Long Island City, N.Y.
Redrock Security & Cabling Inc.
Custom Security Systems
Matson Alarm Co. Inc.
Fleenor Security Systems
Johnson City, Tenn.
Redwire / Sonitrol of Tallahassee, Bay, NW FL, EC FL
Triad Protective Service
Atronic Alarms Inc.
Strategic Security Solutions
All Systems Designed Solutions Inc.
Kansas City, Kansas
Sonitrol of Buffalo, Rochester, Toronto
Engineered Security Systems
Gillmore Security Systems Inc.
Telenet VoIP Inc.
El Segundo, Calif.
Sonitrol Security Systems of the Triangle
Protex Central Inc.
Washington Alarm Inc.
Las Vegas, Nev.
Acadiana Security Plus
e= SDM estimate n/a= not available
No. 2 – SDM’s 2010 Systems Integrator of the Year.
No. 3 – SDM’s 2011 Systems Integrator of the Year.
No. 4 – SDM’s 2009 Dealer of the Year.
No. 5 – New release of the P2000 security management system with Mercury integration, “makes our platform more open which enables us to deliver on the customer’s need for flexibility and their choice of hardware provider and implementation,” according to the company. SDM’s 2009 Systems Integrator of the Year.
No. 6 – Recognized as the No. 1 systems integrator (by volume) by UTC/Lenel, Axis & Milestone. SDM’s 2012 & 2007 Systems Integrator of the Year.
No. 8 – SDM’s 2013 Systems Integrator of the Year (and 2008 Systems Integrator of the Year as Adesta).
No. 9 – National Account division grew 813 percent from 2010 to 2013, which the company attributes to how it has established its National Account Operations Center and customer-centric account management teams. Recorded 8.4 percent net attrition. SDM’s 2012 Dealer of the Year.
No. 12 – First-time ranking on Top Systems Integrators Report. Completed project for the California Health Care Facility, Stockton, Calif.
No. 15 – Following Hurricane Sandy, overhauled disaster recovery system and increased redundancies throughout the organization.
No. 18 – In 2013 received 18,644 service calls from FOCUS clients; missed only 22 for response time of either 4 or 8 hours (99.88%) and 19 for full functionality at the end of the site visit (99.90%). Through ISO 9001 Certification, company is continually analyzing its processes and procedures. SDM’s 2004 Systems Integrator of the Year.
No. 21 – Acquired Thrive Intelligence (2013) and City-Wide Electronic Systems (2014).
No. 23 – Passed $25 million for the first time in 38-year history.
No. 25 – Completing a $1.3 million access and video system deployment in 30 days. Providing services for the New York Marathon: video, mass notification systems, bomb dogs, security consulting, screening runners.
No. 28 – Tripled sales force with an additional 14 sales reps across the country.
No. 29 – Deployed new central station automation software that offers extensive online tools for customers.
No. 31 – Moved to a new headquarters, doubling size to 13,000 sq. ft. Completed a $5.5 million highly integrated and complex project.
No. 32 – Purchased own facility in Seattle.
No. 34 – Landing and expanding two new national accounts, Ace Hardware and Catamaran.
No. 37 – Opening two additional branches in Oklahoma.
No. 40 – Installation of video, access and intercom at a new ground-up hospital, Eskenazi Health, in Indianapolis.
No. 44 – Acquired a competitor that was an offshoot from company in the 1960s.
No. 51 – Implemented video verification of alarm signals.
No. 56 – Instituting new company mission statement and Raving Fan Index company-wide.
No. 63 – Integration, testing and turn-on of the NEA Baptist Memorial hospital in Jonesboro, Ark.
No. 64 – MBTA Bus project installing more than 1,200 cameras with an IP video system using LTE wireless platform.
No. 66 – Nominated for the Cincinnati BBB Torch Award for business practices and ethics.
No. 71 – Integrated managed services into company offerings.
No. 72 – SDM’s 2013 Dealer of the Year & 1999 Dealer of the Year. Expanded dealer program value proposition to include a financing option for qualified dealers.
No. 76 – Awarded the City of Tucson’s City Wide 5 year contract.
No. 79 – Celebrated 15th consecutive year in business, achieving positive annual revenue growth each year.
No. 80 – Awarded Lexington’s local chamber Small Business of the Year Award.
No. 83 – Deployed gun-shot recognition system onto existing CCTV system.
No. 85 – Purchased a new 10,000 sq. ft. facility with planned move in May 2014.
No. 86 – Upgrading central station platform and IT infrastructure.
No. 92 – Launching a version of Video Doorman into affordable-housing buildings. To date, this has accounted for 65 installations, $845,000 installation revenue and $45,000 in new RMR.
No. 94 – Doubled installation backlog from the previous year-end.
No. 96 – Installed new accounting and monitoring software.
No. 97 – Upgraded operations and monitoring software.
No. 102 – Implemented Sedona Office for backend software.
No. 103 – Moved into new headquarters facility.
No. 104 – Deployed iPads to every salesperson and installation/service personnel. Company is almost entirely paperless.
No. 108 – Completing a new central station build out.
No. 109 – Securing a large integration project with $8,000 RMR.
No. 111 – Completed a $2 million structured cabling project for Martin Luther King Jr. Hospital in Los Angeles County.
No. 113 – Completing one of the largest networked fire protection projects in the country at Offutt Air Force Base near Omaha, Neb.
No. 114 – Company is upgrading its MAStermind software.
No. 115 – Completing a complete conversion from STUs to AES radios for more than 250 customers.
No. 117 – Partnering with companies such as Astute Financial, OPT Business Services and ACH Payments for data mining, critical flash reporting, etc.