This document discusses opportunities in the security installation industry. It provides statistics on average profit margins and sales for different security systems like access control, CCTV, and burglar alarms. It also summarizes publications and guidelines from BICSI related to electronic safety and security design. Key points covered include the growing convergence of IT and security, trends in video surveillance and access control, and factors to consider when designing and selling different security systems.
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 (gov’t, 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
13. QUESTIONS TO ASK
What is the application?
• Retail store, office, parking lot, all
How many cameras in the system?
• How many indoors & outdoors
What are the cameras viewing?
• Area, distance
• This may determine if P/T/Z is needed
14. QUESTIONS TO ASK
What is camera environment?
• Freezer, office, hot warehouse, etc.
Where or how are cameras mounted?
• Ceiling dome, outdoor pole, etc.
How will the system be used?
• Manned system, monitored
• Passive system just recorded
15. QUESTIONS TO ASK
How many monitor locations?
• View only or control
Is remote access needed?
• Remote network connection
• Internet
16. QUESTIONS TO ASK
What does user want to achieve?
• Stop internal theft
• Security from outside influences
• Shoplifting
• Vandalism issues
17. GUIDELINES
Be aware of lighting
Observe the sun
Know why customer wants cameras
1 camera will not cover a 300’ fence
20. Access
Control
• Average profit margins for Access Control
installations are 37% gross and 22% net.
• Integrators say more than 48% of their access
control installations include some sort of
integration with CCTV or other security system.
• Commercial office environment accounts for
more than 36% of all access control system
installations.
21. AC
Worksheet
Access Control System
Door Planning
Worksheet
In order to install the
proper locking
hardware, answers to
the following questions
are essential.
22. Reasons For Access Control
• Reduce Key Control Problems
• Allows Managed Access
• Provide 24/7 Security
• Management Tool
• Reduce Cost
23. Key Control Problems
• Affects all business and government
• No control of distributed keys
• Huge security risk
– Stolen/missing keys = new locks & keys
• Very labor intensive and expensive
24. Key Control Solutions
• Provide card access to all employees
• Each card is unique, assigned to user
• Absolute control
• Immediate information
• Easier to manage
• Reduced costs
25. Allow Access…Problems
• Providing security to the building
– Day vs. night
– Various levels of security
• Authorized personnel
– Time, day,entry & exit
• Doors must be locked and unlocked
• Key holder control
26. Allow Access…Solutions
• All employees are issued a card
• Demonstrates confidence to employees
• Maintains control over usage
– Time, day, schedule. Etc.
– By employee, dept., visitor
• Cards are difficult to duplicate
• Provides flexibility with security
– Secure when and where needed
27. 24/7 Security Problems
• Key systems are not secure
• Employees must feel safe
• High cost for keys, locks, guards, etc.
• Risk of internal theft and fraud
28. 24/7 Security Solutions
• Provide perimeter security
• Permit free movement of employees
– Authorized access w/o supervisor key
– Increase mobility of workers
• Reduce or eliminate guards
• Reduce opportunity for theft of fraud
29. Application for Access Control
• Need to improve or upgrade security
• Companies with key control problems
• Real or potential security risks
• Need to provide greater security
– Shift schedules
– High employee turnover
– Temp. workers
30. Application for Access Control
• Multiple levels of security
– Execs., factory, R&D, TR’s, MTER’s, etc.
• Need to record or control usage
– Charge for use, common conf. Room
• Companies offering flexible schedules
• Improve after hours security
• Need to automate security functions
31. Why Sell Access Control
• Leads to add-on sales
– CCTV
– Expansion
– Motion detectors
• Small recurring revenue in cards
– Also keeps you in touch
• Less competition than traditional alarms
32. Why Sell Access Control
• Potential for higher margins
• Leads to other sales
– Word of mouth
– Envy
33. Access Control Basics
• Who, When, Where, What
– Who uses the system
– When they use the system
– Where they use the system
– What happened
34. Access Control Components
• Controller
– Multi-reader control in a can
– Single door keypad
– All wire goes to this point
• Cards
– Each user assigned a unique card
– Usage parameters programmed in system
– Bit formats
35. Access Control Components
• Reader Technologies
– Proximity (prox)
– Magnetic Stripe
– Bar Code
– Weigand
– Radio (RF)
– Multi-Technology
36. Access Control Components
• Reader Technologies
– Biometric
• Hand
• Finger
• Face
• Voice
• Retina
– With Keypad
37. Access Control Components
• Controlled Door
– Lock
• Electric strike or magnetic lock
– One or two readers
– Door contact
– Request to exit detector (REX)
– Automatic door closer
– Optional annunciater
38. Access Control Components
• Magnetic Lock
– Must release with fire alarm, power failure
• Building not secure in power failure
– “Push To Exit” button w/ separate timer
– Automatic release (15 sec. delay max.)
• Electric Strike
– Free exit device
– Typically locked without power
– Use a locksmith
39. Access Functions & Features
• Schedules & Holidays
• Access Levels
• Monitored Inputs
• Alarm Events
• Elevator Control
• Antipassback
• Mantrap
• Time & Attendance
41. Burglary
Alarms
• Average profit
margins installing
companies realize
on burglary jobs are
42.2% gross and
25.5% net.
• 26% of burglary
installations include
wireless equipment
42. Opportunity
Average Profit Margins
Gross Net
Access Control 37% 22%
CCTV 40.3% 27.4%
Security Contractor typical Sales is $1 million to
$4.9 million in annual gross revenues.
43. Thank You
Edward J. Donelan, RCDD, NTS, TLT
President, Telecom Infrastructure Corp
Treasurer, BICSI
edonelan@BICSI.org