Security Dealers/Integrators Are Cautiously Optimistic A slowing economy and construction activity can negatively affect the security industry as there are fewer new residential and commercial structures to protect, but also have a positive effect, as existing homeowners and business owners want secure properties. The more robust economy of 2018 seems to have been very good for security integrators, as those responding to the SDM 2019 Industry Forecast Study said their total annual revenues increased an average of 15%. Security Sales & Integration’s Gold Book 2019 reported a 7% average revenue increase during 2018 for security dealers and integrators, which was less than the projected 9.7% increase; however, industry revenues are forecast to increase 12% for 2019.

Security Needs Persist, Despite Reductions in Property Crime According to the latest (2017) FBI Uniform Crime Report, property crime decreased 2.6% and burglary decreased 6.9% from 2016. Many analysts attributed the multi-year declines to the increase of security-system installations and the addition of cameras. Robberies and larceny-theft also declined, or -3.8% and -2.0%, respectively, but motor vehicle theft increased 0.4% and all violent crimes 0.1%, with murder, +1.6%; rape +3.9%; and aggravated assault, +1.3%. Industry experts strongly recommend security dealers and integrators be current with the newest technologies, as the increasing sophistication of security systems and devices will motivate more consumers to add equipment and services.

Competition Is Brisk in Residential Sector According to a roundtable discussion at the Honeywell Connect 2018 event, the participants cited increased competition from cable companies bundling security systems, Amazon selling DIY equipment and even locksmiths installing video. The J.D. Power 2018 Home Security Satisfaction StudySM revealed “peace of mind,” 60%, and “protect property,” 56%, were the top two reasons consumers purchased home-security systems. Brink’s Home Security received the highest score (852) in the J.D. Power study, followed by AT&T Digital Life (847), Vivint Smart Home (839), ADT (833) and Xfinity Home Security (821), based on a 1,000-point scale.

Consumers Want Smart-Home Security Technology The J.D. Power study found residential customers were more satisfied with their security-system provider when smart-home features were part of their total security system, and 49% of them had those features, a 5-point increase from 2017. According to Security Sales & Integration’s 2018 Residential Security Market Report, 35% of participating dealers said they sold interactive service with smart-home products during Q3 2018, compared to 30% who sold traditional security systems. Parks Associates reports that 9% of US broadband households owned an IP camera during 2018 as part of their security systems, but easier installation and other factors are expected to increase purchases of IP cameras.

A Multitude of Commercial Prospects According to Security Sales & Integration’s 2018 Operations & Opportunities Report, participating security dealers identified commercial offices, at 43.9%, as their top market to generate more non- recurring, project-based revenues. The Security Sales & Integration’s Gold Book 2019 reported security dealers averaged 51 commercial installations and 12 large industrial installations per month. The survey of dealers that is the basis of the Gold Book revealed 18% of companies said they derived 41% to 50% of their recurring revenue from commercial/industrial clients; 16% said 21% to 30%; and 12%, more than 75%.

Being Tech-Savvy Is the Key to Future Success According to a survey Capital One conducted at the security-industry event Honeywell Connect 2018, 34% of the security professionals surveyed said remaining current with technological changes/innovations was their biggest challenge for 2019. Video surveillance and managed video monitoring was first, at 34%; followed by interconnected devices, 32%; and DIY and self-monitored systems, 22%. Survey results from The Security Industry Association 2019 Security Megatrends report indicated cybersecurity would be the top 2019 trend, and was almost 30 percentage points more than #2 on the list: Internet of Things (IoT) and the Big Data Effect.

Advertising Strategies With so many older homeowners remaining in their homes, local security dealers should consider a “Remain in Your Home Safe and Secure” promotion, with a special, limited-time offer on equipment and services related to older homeowners’ needs. Local security dealers could also target homeowners who are thinking of selling their homes with a free home security check, with the aim of selling or updating security systems, so homeowners’ properties are more attractive to buyers. Smaller, local dealers who may not be able to afford a TV advertising investment could possibly place ads on your station’s news pages next to local property-crime stories, using a headline, such as “Don’t Be the Next Victim of Property Crime.”

New Media Strategies Profiler, with an emphasis on maximizing security in the home or a business despite the decreases in property crimes. To counter the increasing purchases of DIY security equipment and non-security dealers installing equipment, social media posts can explain why these “alternatives” may not secure a home or business thoroughly, and the need for a security professional. Use Facebook to reach parents of children 11 years of age and older and create a post for each of the parent profiles on page 2 of the Profiler, with a title, such as “Are You a Smart Home Savant Parent?,” explaining the profile and marketing smart locks, specifically.