SDM 100 Dealers on Trends
There are more outside influences affecting the top security companies and how they go to market than ever before.
This issue highlights the performance and accomplishments of 100 largest security companies in the industry — the SDM 100. I’m always astonished by my review of the applications that are submitted for the SDM 100. In addition to the dealers telling us about their accomplishments, they also convey their outlook on the industry. For example, one of the questions asked of SDM 100 dealers this year was, “What issues and trends do you think will have the greatest impact on your business in 2016?”
As leaders of the industry, their answers can be thought of not only as barometers of change, but as leading indicators of the future. Here are some of their answers.
No. 98 – Fleenor Security Systems:I believe the combining of ADT, Protection 1, and ASG Security will change the landscape for competition in many markets. I see the DIY market continuing to grow, causing ripples in the industry because more young people are willing to try their own security system installation. Self-monitoring will cut into RMR for many. I think home automation has a long way to go; but I do see Amazon’s Echo making some inroads to linking many manufacturers’ products and picking up steam.
No. 78 – Valley Alarm: Cybersecurity is an important developing issue. It may not have a huge impact in 2016, but certainly it will have a large impact in the coming years. I expect that DIY providers will actually help increase market penetration for full-service dealers in the long run, but may damage the industry’s reputation through increased false alarms and poor quality.
No. 22 – Electric Guard Dog: Terrorism may have the biggest impact as the supply chain that we serve acts to harden targets against potential threats.
No. 17 – Johnson Controls Inc.:The concern of continued terrorist activity will continue to drive the need for improved security solutions, which will drive increased funding. The demand for more building-wide integrated solutions will also continue to be a trend, and the growth of smart buildings will continue to gain adopters, requiring integrators to develop more specific programs for city-wide solutions.
No. 36 – EMC Security: Expansion of telco and cable companies will continue to drive down system prices and make it more expensive to compete with these entities. Advertising and marketing spend will continue to increase to keep the message heard above the noise of these new entrants. Some increase in connected homes will require re-selling the existing customer base to keep customers from moving to these companies offering inexpensive interactive technologies. DIY will continue to grow share of market; we will be releasing a DIY product after first-quarter 2016. Crime and threats of terrorism will keep security in the minds of potential customers, driving growth for the industry in commercial and residential sectors.
No. 66 – Electronix Systems Central Station Alarms:New laws in New York have increased business due to mandatory carbon monoxide detectors for commercial businesses. The DIY market has increased awareness to the otherwise non-buyer; however, this hasn’t affected us dramatically. The 2G sunset is creating a lot of work that otherwise would not be there.
No. 41 – Sonitrol of Sacramento & Orange County, Cybex Security: Overall the greatest impact I can identify would be staying current with all of the emerging technologies in the security market and keeping up-to-date on the best solutions in a very competitive marketplace.
No. 28 – American Alarm & Communications: Speed of change is faster than ever. The challenge is to keep up with new technology and changing needs of the marketplace while balancing security concerns, both physical and virtual.
No. 87 – Briscoe Protective Systems Inc.: Marked changes in security technology provide for a challenging company environment to remain ahead of the changing technological marketplace. Maintaining new-age technology inventory, continual training of staff including programmers, technicians and IT personnel are a few of the specific challenges.
No. 74 – Washington Alarm: One of our biggest challenges for 2016 is finding technicians, especially licensed journeyman and NICET-certified technicians.
For more comments from the dealers about alarm communications/upcoming technologies, the Internet of Things/connected homes, competition and the DIY market, as well as a blog from one SDM 100 company, visit www.SDMmag.com.