Transcript Slide 1
Securing New Ground – 2013 2014 SECURITY INDUSTRY LANDSCAPE Laura Stepanek, SDM Editor SDM = The Security Channel Published since 1971, SDM provides management and technical professionals with a comprehensive overview of the security channel marketplace – in print, online and in person. ‘The Channel’ According to SDM Architects, engineers, consultants 4.0% Systems integrators & VARs 28.7% Security product distributors 1.6% Security installing dealers with central station 14.0% Central station services 0.5% Manufacturer reps 0.5% Security installing dealers 50.7% Percentage of circulation SDM Research SDM Subscriber Market Forecast Study Mail-out and Web-based survey conducted among SDM’s subscribers that are installing-based businesses, measuring revenue and other business conditions. Conducted annually since 1982. SDM 100 Report A ranking of the industry’s 100 largest electronic security firms in the installation, service and monitoring business, ranked by RMR and other results. Conducted annually since 1991. SDM Top Systems Integrators Report A ranking of the industry’s 100+ largest security systems integrators, ranked by North American systems integration revenue. Conducted annually since 1996. The Landscape: Top 3 Factors Affecting Sales SDM subscribers were asked: ‘Check three factors you feel will most significantly affect sales of security systems by your company in 2014.’ 78% ECONOMIC CONDITIONS (compared with 77% in 2013) 47% CAPITAL SPENDING BY BUSINESS (compared with 46% in 2013) 43% CRIME (compared with 40% in 2013) Sales up 38% in 2013 Change in sales volume 38% Mean sales per-location 2013: $2,182,678 25% of people participating in the 2014 SDM Subscriber Market Forecast Study indicated their 2013 sales would be less than $100,000. -3% 2011-2012 2012-2013 37% of people participating in the 2014 SDM Subscriber Market Forecast Study indicated their 2013 sales would be $1 million or more. The Landscape: Major Challenges to Channel Companies SDM subscribers were asked: ‘Check three factors you feel will be major challenges to your company in 2014.’ 55% INCREASING SALES (compared with 48% in 2013) 36% PROTECTING PROFIT MARGINS (compared with 39% in 2013) 29% COMPETING EFFECTIVELY (compared with 30% in 2013) Inability/difficulty obtaining credit 2012: 10% of respondents 2013: 2% of respondents Toughest Competition for the Channel Sources of competition 36% 32% 12% 11% 7% 1% 1% Google “do it yourself security” 214,000,000 results Growth Among Channel Companies 2012 Revenue Among SDM Subscriber Market: $43.6 billion This was 0.7% below 2011. Preliminary results from SDM’s Subscriber Market Forecast indicate a 9.9% increase in 2013… with projections for a 12.2% increase in 2014. Company Revenue by Type of Product Home systems other than burg/fire 7% Integrated commercial systems 11% Other 5% Video surveillance 28% Access control 12% Fire alarms 14% Burglar alarms 23% Company Revenue by Type of Service Home systems installation 7% Monitoring/lease: RESIDENTIAL 8% Monitoring/lease: NON-RESIDENTIAL 11% Hosted, managed, cloud-based services 4% Other 4% Non-residential sales/installation 36% Service & maintenance 15% Residential security sales/installation 16% RMR Performance in the Channel Survey respondents were asked: Approximately what will be your recurring monthly revenue (RMR) – generated by this location – on Dec. 31, 2013 and 2012? 2013 2012 Mean RMR: $58,986 Median RMR: $10,000 Mean RMR: $55,955 Median RMR: $9,000 Composition of SDM 100 TOP 10 SECURITY DEALER FIRMS: ADT * Tyco Integrated Security * Protection 1 Monitronics Int’l * Vivint * Stanley Security Slomin’s * Diebold Security * Vector Security Guardian Protection Services RMR range of SDM 100 firms in 2012 was $252.5 M to $191 K. Grew RMR 16% in 2012. RMR Growth Among SDM 100 RMR Dec. 31 ($ millions) $700 $641.9 $600 $510.7 $500 $409.6 $400 $300 $439.1 $348.1 $385.1 $552.3 $466.3 $413.1 $321.6 $200 $100 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average Monthly Monitoring Prices Average monthly monitoring price: RESIDENTIAL 34% Median monthly monitoring price: $25 23% 24% 12% 7% $15 or less $16 - $19 $20 - $24 $25 - $29 $30 or more Average Installation Prices: RESIDENTIAL Average installation price for traditional residential system among survey respondents 26% 25% Mean: $1,957 Median: $1,200 18% 14% 14% 2% Less than $500 $500 - $999 $1,000 $1,499 $1,500 $1,999 $2,000 $4,999 $5,000 or more Average Installation Prices: NON-RESIDENTIAL Highest system Lowest system 19% 18% 16% 17% 20% 55% 10% 18% 11% Mean: $3,474 Median: $1,100 6% 10% Mean: $395,766 Median: $25,000 Strongest Sales Potential in 2014: Video SDM subscribers were asked: How would you rate the potential for sales in 2014 in each of the following markets? (On a scale of 1 to 5, where 1 = poor and 5 = excellent) 3.61 3.14 3.14 2.8 2.66 Average rating on a scale of 1 to 5 2.43 Equipment Spending Outlook These are the top 5 equipment categories in which dealers and integrators expect to increase their spending in 2014. 1. 2. 3. 4. 5. Video surveillance/CCTV DVRs/NVRs IP-network-based video equipment Monitoring Intrusion alarm systems Note that 4 in 10 survey respondents expect their spending on video surveillance to increase by more than 10 percent. Markets Expected to Offer the Best Growth Top 3 Residential: 1. 2. 3. Middle-market homes (existing) – 47% High-end homes (existing) – 20% New construction (custom-built) – 18% Markets Expected to Offer the Best Growth Top 5 Non-Residential: 1 2 3 4 5 6 Education: schools, colleges, universities Commercial office space Retail Hospitals, healthcare Government facilities Industrial, manufacturing, distribution 2014 SDM Subscriber Market Forecast The new SDM 2014 Subscriber Market Forecast contains much more detail including installation pricing, service pricing, operational practices, expected spending on products and more. Please watch for SDM’s January 2014 issue for the full report. Renewathon Results in Donation to AIREF SDM magazine launched our first ever Summer of 2013 Renewathon this past June. Through a series of ads in the magazine, email renewal reminders, e-newsletter links and cooperative efforts with outside partners, we guaranteed a donation of $0.50 to the Alarm Industry Research & Educational Foundation for each renewal or new subscription processed as part of the Renewathon. We’re pleased to announce that we will be presenting a check to AIREF for more than $1,200 later this month at ISC East. SDM Congratulates 2013 Systems Integrator of the Year G4S Technology