This document discusses the experience and perspective of Edward Donelan on security installation opportunities. It provides statistics on the security industry such as CCTV and access control becoming the top sources of revenue. It also notes that homeland security efforts have substantially impacted large industrial security installations. The "sweet spot" for security contractors is $1-4.9 million in annual revenues with average gross profit margins of 40.3% on CCTV installations. Remote video and networked video are in high demand.
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Experience and perspective_of_security_installation
1. Experience and Perspective
of Security Installation
Opportunities
Edward J. Donelan, RCDD/NTS, TLT
President, Telecom Infrastructure Corp
2. BICSI Publications
NDRM (Network Design Reference) 6th
Edition
November 2005
ESS (Electronic Safety and Security Design) 1st
Edition
January 2006
CO-OSP (Customer Owned Outside Plant) 4th
Edition
January 2007
PAVDRM (Principles of AV Design) 1st
Edition
June 2006 (ICIA Partnership)
3. BICSI UPDATE
ESS (Electronic Safety and Security) Designer
Designation Direction
The ESS designer is the person who understands vulnerability,
risk, and threat, designs a complete and functional security
system, oversees the implementation and verifies / validates
system performance.
SIA Javits Center, NYC
August 24 25, 2005
Security Industry Association
www.isceast.com
4. BICSI UPDATE
ESS Outline
Threat Legal, liability, ethic
Asset Protection
Intercom / Annunciators
Biometrics / Intrusion
Detection
CCTV Access Control
Monitoring - training
Fire Detection & Alarm
Sensors / Integrated
System
Mobile Security /
Wireless / Data
Security
Doors, locks, safes and
seals
5. Business
Opportunity
In 2004 47% said their
company is listed on a
GSA Schedule,
compared to just 12% in
2003.
The convergence of IT
and computer
networking with
electronic security is
becoming reality.
A true indicator that
separates an alarm dealer
from a serious systems
integrator is if the company
has its own CAD/CAM
plotter equipment.
Source: SecuritySales.com
8. Business
Opportunity
Homeland security
efforts appear to be
substantially impacting
the electronic security
industry as large
industrial (govt, utilities,
airports, stadiums, etc.)
swiped 6 percentage
points from both
commercial and
residential installations in
2004.
Source: SecuritySales.com
10. Security
Installation
Statistics
Average number of installed accounts in
2004 is 550
Average number of monitored accounts in
2004 is 300
76% use a third-party contract central
monitoring station
47% of integrators have access to the
internet from the field.
11. Security Business Opportunities
The sweet spot for
the typical security
contractor is $1
million to $4.9 million
in annual gross
revenues.
Source: SecuritySales.com
12. Security
Average gross profit margins
40.3% and 27.4% net profit
on CCTV installations
Remote video is one of the most
in-demand features with
networked video on the rise.
Source: SecuritySales.com