Security Dealer & Integrator

NOV 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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34 Security Dealer & Integrator / www.SecurityInfoWatch.com November 2018 2018 STATE OF THE SECURITY INDUSTRY REPORT Sponsored by HID Access the full report online at www.securityinfowatch.com/12432021 Most impactful residential business threats for 2018 Respondents were asked what they expect their most impactful residential business threats in 2018 to be. They were asked to select their Top 3 threats. Here are their responses in order of priority. 1. The explosion of the Do-it-Yourself (DIY) consumer base 56.2% 2. The growing number of phone telecom providers entering the industry 34.3 3. Bundled options from cable providers 29% Increasing cybersecurity threats to home systems and IoT devices 20.4% Questionable or illegal sales/business practices of competing firms 19.5% Unpredictable construction cycles 15.7% Competing with smaller local firms 12.8% Rising cost & complexity of residential and home automation technologies 12.4% Other 11.4% Customer/account attrition 8.6% 2G sunset and customer conversion to 3G 5.7% FYI: It 's DIY The proliferation of the Do-it-Yourself (DIY ) consumer base rang the alarm bell for the second straight year with integrators. More than 56% are concerned that as the DIY market continues to grow exponentially through direct and consumer retail channel, an eventual erosion of business is something that needs to be addressed. One integrator said; "DIY is our greatest threat, and it is our job to educate and promote the quality difference." While another added; We are addressing DIY by deepening the services we offer our residential customers - strengthening the relationship we have with them and shifting the playing fi eld to one that better leverages our strengths." According to Blake Kozak, Principal Analyst for Smart Home and Security Technologies at IHS Markit, security providers will continue to comprise more than 80% of monitored systems through 2022; however, multiple-system operators (MSOs), such as cable and telcos, and DIY installations will begin to erode the market share of traditional alarm dealers shortly thereafter. Kozak's comments refl ect the feelings of more than 34% of integrator respondents who feel threatened by the growing number of phone and telecom providers entering the industry. "DIY is our greatest threat, and it is our job to educate and promote the quality difference." – Jeff Torok, Vice President, Am-Tec Total Security Inc.

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