Security Systems News

OCT 2017

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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www.securitysystemsnews.com Oct O ber 2017 S ec U r I t Y SYS te MS N e WS Guest Commentary 10 few years. The good news is this momentum is likely to persist, driven by sustained regulatory mandates, positive demographic trends, and a favorable macroeco- nomic environment. State and national building codes mandate that all new buildings have appropriate fire and life safety equipment and require inspection of that equipment annually. With no disruptive regulatory changes on the horizon and a continued focus on safety and protecting building occupants' assets and lives, build- ing codes should continue to have a positive impact on market growth. Over three-fourths of the U.S. population lives in urban areas and that percentage has been steadily increasing, according to the U.S. Census Bureau. The market should benefit from this trend toward urbanization, as it requires more By Terry Heath W hether you are a product or technology supplier or distributor, as a par- ticipant in the $10 billion North American fire safety and security industry, your business has likely enjoyed steady growth the last Fire safety and security businesses expected to see continued growth Private capital provides an alternative approach to help companies increase their market share sophisticated and multi-level con- struction with stricter safety codes in order to serve denser popula- tions. Urbanization also requires higher security standards to address not only physical building com- plexities, but also the increasing threat from cybersecurity. Finally, favorable macroeconom- ic trends, including positive GDP g ro w t h a n d low unemploy- ment, positive- ly affect com- mercial devel- opment, driv- ing increased demand for, and mainte- nance of new fire and security systems, while at the same time driving the need for safer communities and protection of information. Despite these industry tailwinds, market challenges do exist. For example, product manufactur- ers face increased competition and downward pressure on price resulting in reduced profit mar- gins. Additionally, the introduc- tion of new technologies promotes greater reliability, performance, and a longer product life, which could hinder growth of the replacement market. Lastly, while in the short- term economic conditions remain stable, construction activity can be cyclical and may decline during the next economic downturn, hamper- ing demand for new and replace- ment equipment. If you are an independent dealer or distributor, you may be confront- ing another set of challenges. While equipment manufacturers are con- centrated among a few large OEMs, the services side remains very frag- mented, comprised of hundreds of smaller, independent local players. According to former president and CEO of Honeywell Life Safety, Mark Levy, "Despite industry savvy and a high quality local service model, most distributors are unable to ser- vice major corporate accounts due to a limited geographic service area and limitations on product range and capabilities." Which is why, Levy explains, that in recent years "this dynamic has attracted the attention of pri- vate capital who see an opportu- nity to build a national platform via acquisition that can respond to the growing needs of diverse clients wherein local service is as important as regional and national service." One such investor is Detroit- based Huron Capital, who through its national platform, Sciens Build- ing Solutions, recently made invest- ments in three service companies: Two in Florida, including Boca Raton-based WSA Systems and The Right Access Control Changes Everything Learn One. Know All. • One common database for e3 Tele Entry and Access control • Common programming interface to e3 • All software upgradeable to enhanced features. (LTG) • Upgrade via cloud, PC or USB • Remote Management Consoles for development of services to drive higher RMR Linear e3 systems are designed for a new generation of customers looking for cutting edge physical access control systems Connect with us today — linear-solutions.com or 1.800.421.1587. Everything changes so fast. And so do I. Terry Heath capital see page 11

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