Security Product Sales To Hit $17B by 2014
Security Sales and Integration magazine cites a report in its September issue by the Fredonia Group that predicts the U.S. demand for security products and systems will increase 9.3% per year to $17B in 2014.
Apparently, this forecast is based on the anticipation of a cyclical rebound in construction and capital investment coming off a low 2009 base.
What This Means for the Design Team
What we are seeing with the stimulus spending in construction, while slow to gain a foothold on the political front, is a revival of sorts for design and construction companies.
The specifications I read on a daily basis, even from some of the best architectural firms in the U.S., do not reflect the full capabilities of the security industry.
Architects want to give their customers what they want…and a little more. But, they must use professionals in industries such as ours to gain product knowledge and to offer end-user support.
Putting Ourselves in the Discussion…With a Smile!
Positioning ourselves to take advantage of this swell of capital spending requires smart problem-solvers.
It also means that technology companies must adapt to the culture of the “hard” design industry. We can’t be like the “know-it-all” techie and get hung up in our egos while we watch the customer drift away because of technology intimidation.
Simple solutions are those which are elegant in technology but which are operated by least geek among us.
Report: Retail sales year-over-year up 2%
Sign, sign, everywhere a sign. As retailers head into the final quarter of 2010, a recent report ShopperTrak shows that year-over-year GAFO retail sales increased 0.2 percent for the week ending Oct. 2, while sales jumped 2.3 percent versus the previous week ending Sept. 25. GAFO includes general merchandise, apparel, furniture, sporting goods, electronics, hobby, books and other related store sales. The report – ShopperTrak’s National Retail Sales Estimate – calculated retail sales on a yearly level, showing a slight increase compared with last year. The numbers come despite the slightly higher week-over-week rise. Retail performance continued at the expected seasonal low pace between Labor Day and Columbus Day. ShopperTrak reported GAFO retail sales have increased 34 weeks out of 39 weeks so far this year compared with 2009.
What this means for the security business is greater opportunity to upgrade the retail sector, if the trend holds. Holiday sales may dictate whether or not this market is waking up.
Being early in finding security solutions is the key to earning confidence from those with new funds on their hands. Timing is critical, but listening first is the key!
ASIS International is having their exhibits and annual conference in Dallas this week. I will be visiting the Dallas Convention Center toward the end of the week and am excited about seeing all the latest development firsthand. Here’s a little blurb from the ASIS International website, explaining who they are and what they do:
ASIS International is the preeminent organization for security professionals. Founded in 1955, ASIS is dedicated to increasing the effectiveness and productivity of security professionals by developing educational programs and materials that address broad security interests, such as the ASIS Annual Seminar and Exhibits, as well as specific security topics.
By providing members and the security community with access to a full range of programs and services, and by publishing the industry’s No. 1 magazine—Security Management—ASIS leads the way for advanced and improved security performance.
The Security Industry Window in a Bleak Economy
As the U.S. economy struggles to gain footing for a more permanent and comprehensive rise, the construction sector continued to struggle in September. Today’s release by the U.S. Bureau of Labor Statistics says that the construction industry lost 21,000 jobs in September alone.
Here’s a brief excerpt from the Economist:
Aside from government employment, payrolls in good producing sectors had a rough month, and construction in particular was hard hit, shedding 21,000 jobs. Private services did better across the board, especially the leisure and hospitality sector, which added 38,000 employees. There is indeed a lot more leisure to go around in America these days.
Read more
For the security industry a focus on the leisure and hospitality sector may be the bright spot, judging by the 38,000 jobs added there.
What are some target areas for security providers in the leisure and hospitality sector?
- Hotels and casinos, while assumed to be running state-of-the-art technology already, would benefit from reviewing their existing surveillance system. If they are stuck in analog, yet wishing they had more analytics and greater controls, introducing hybrid or IP systems may be a good marketing move. They may be surprised to find how much sense it makes.
- Personal GPS Trackers — Think about amusement parks! Children as well as the elderly want independence, and many parents and caregivers recognize the need to have safe places for families to enjoy leisure time. Personal GPS tracking can relieve some of this worry. Though the technology is still evolving, uses for GPS trackers will grow dramatically as people find out how convenient they are.
- Consider marketing access control as a convenience and not just a security measure. One of the distinct advantages of using access control is that of being able to turn off/on access for individuals who no longer need it. Hotels have used the technology for many years instead of handing out keys. But there are other possibilities as well. Consider the convenience of biometric readers when a card or fob are not necessary.
- Mobile surveillance systems are a good fit for tour buses, trains, and taxi cabs. Make them affordable, and they will be bought by the dozens, or hundreds, for fleets.
This is a short list that a creative marketing department can run away with. The economics of security make good sense, and applications for this booming technology are unlimited.
Links:
U.S. Bureau of Labor Statistics
The Economist
