Interlogix to Shut Down in U.S. & Canada; Dealers Express Disappointment
Interlogix, a provider of commercial and residential security solutions, announced it will close its businesses in the U.S. and Canada after a “thorough portfolio review” of its security business. A company spokesperson wrote in an emailed statement to SDM that this will allow them to focus on growth opportunities for LenelS2 and its other fire and security businesses.
The statement went on to say that Interlogix products will be manufactured and orders will be fulfilled through 2019. Products will be available for purchase from the company’s distributors and dealers during a transition period.
“We will continue to provide customer support related to product technical services, timely fulfillment and comprehensive product warranty into 2020 and beyond,” read the statement. “Dealers can continue to purchase, install, register and service Interlogix products with complete confidence.”
Justin Owen, president of Owen Security Solutions, a dealer of Interlogix products, said he was surprised to learn of the security behemoth’s closing on Friday, at the same time as the general public.
“I’m still making sense of [Interlogix’s closing] at this time,” Owen said to SDM on Sept. 23. “It certainly is short notice and out of the blue.”
Kirk MacDowell, president of MacGuard Security Advisors and former Interlogix employee, said he was not surprised by Interlogix’s closing.
“I didn’t know [about the closing ahead of time], but I was not blindsided — anybody who was watching UTC over the last couple of years saw they had lost touch with dealers and the product road map,” MacDowell said. “It was pretty telling that something like this was going to happen.”
Over the years, MacDowell said he noticed the security companies he consults for had started to lose interest in offering Interlogix products. He really knew Interlogix was in trouble, though, when they cancelled their annual dealer trip about a month ago — an event he was supposed to speak at.
“The frustrating part is that the problem isn't the Interlogix leadership — they’re great people — it’s the people who work at UTC corporate that are not close to the customer, not close to the business . . . It’s very frustrating for the dealers and myself.”
Jake Voll, president of SS&Si Dealer Network, a security and smart home products distributor that stocks a limited number of Interlogix products, expressed sympathy for Interlogix’s approximately 70 employees.
“This is obviously a difficult time for the many employees at Interlogix,” Voll said. “My heart goes out to them and their families. And frankly, a well-established contender in the home security market shutting down should rattle us, and I think it has. But I’ll continue to stay focused on people first and products second.
“Products will come and go and the manufacturers that make them may go with them. Make no mistake though . . . the fine folks at Interlogix will find new and better opportunities; the dealers will find new and better products; and this industry will continue to evolve and to grow.”
Interlogix sent an email to its distributors on Sept. 20, as well, telling them of the company’s closing.
“While we may be winding down Interlogix, we are committed to ensuring that you have the products necessary to support your dealers during this transition,” the email read. “In the days ahead, our sales team will reach out to you to review your inventory position and facilitate last-time buys. Together, we will work closely to ensure you have the products necessary on your shelves to meet your dealers’ needs. Given our significant installed base, we anticipate increased demand at this time and will build and fulfill orders in the order in which they are received.”
Security Equipment Supply (SES), a distributor in the low-voltage industry since 1982, released a statement promising to assist security dealers with a vendor transition in the wake of Interlogix’s closing.
“We are committed to the success of our customers,” said Derek Hagenhoff, vice president and treasurer of SES. “SES offers security equipment from a broad portfolio of security equipment manufacturers. Our employees are well versed on the vendors and capabilities of this equipment, and we are ready to consult with dealers about their security equipment requirements moving forward.”
Jorgia Wooten, vice president of Crime Prevention Security Systems, is optimistic about a future without Interlogix.
“We were disappointed to learn that Interlogix is ceasing operations this year," Wooten said. "However, our distribution partners and other manufacturing partners have been wonderful in reaching out to provide alternatives moving forward. Change is inevitable in life, business and especially technology. While we hadn’t planned to move away from Interlogix, we are embracing the change and the possible opportunities that opens up for us.”
Interlogix has very deep roots in the security industry. In 2000, Interactive Technologies Inc. (ITI) and SLC Technologies merged, and the combined company was named Interlogix.
ITI had been a dealer favorite. The Minneapolis-based business produced a reliable wireless alarm system in an era of not-so-reliable RF signal transmission. This forever changed the security installation business, as over time it propelled security dealers to think of using wireless first before hardwired alarm systems, due to their ease of installation.
In addition, ITI was first in the industry to peg the actual penetration rate of residential alarm systems. Through a research partnership with SDM in 1998 and again in 2000, ITI determined that 18 percent of U.S. households in 2000 owned a home security system. The study was done through the National Family Opinion (NFO) panel across 20,000 households, and was the first of its kind.
In 2002, General Electric purchased Interlogix and subsequently renamed it GE Security. Then in early 2010, United Technologies Corp. (UTC) acquired GE Security for $1.82 billion.
In February 2011, SDM reported that UTC Fire & Security had announced the reintroduction of the Interlogix name for its security and life safety business. The new Interlogix under UTC would target residential and small- to medium-sized commercial enterprises by offering a comprehensive product portfolio that included intrusion, video surveillance, fire and life safety, access control and transmission systems. Bob Haskins, vice president and general manager of the business at that time, said, “We reintroduced the Interlogix name because of its exceptional equity in the security marketplace, and this move builds on the promise of investing in the future with the strength of past performance.
“Continuing the legacy of some of the most recognized names in security, Interlogix is an affirmation of our long-standing commitment to the brands that are the foundation of our success. GE TruVision, IFS and Guardall are examples of great brands, known for quality and reliability,” Haskins added.
Just this past April during ISC West, the company announced it had re-launched its Interlogix Security Pro program, which it described as “a premier national channel partner program offering Interlogix dealers a wide array of resources and incentives designed to help them successfully grow their businesses.” This was a strong connection to the company’s roots with ITI’s successful Security Pro dealer program.
“The Interlogix Security Pro program is back and better than ever,” said Warren Hill, vice president, partner solutions, North America, Interlogix, in that announcement.
Interlogix products are currently sold through distributors such as Accu Tech Corp., Alarmax, Anixter, Security Equipment Supply and WESCO/CSC among others.
In addition, Interlogix products are a staple of dealers who belong to AiN (Authorized Integrator Network), a “private buying family” comprised of more than 300 dealers representing 330-plus locations in the U.S. AiN also operates a significant builder program for its dealers. SDM reached out to AiN, but they declined to comment on the closure.
Security systems integrators on SDM's 2019 Top Systems Integrators Report, when asked to name their top manufacturers in order of volume purchased from them, collectively ranked UTC Fire & Securing (including the brands of Interlogix, as well as Edwards Systems Technology/Kidde and LenelS2) as the second most popular brand they use.
This is a developing story.