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Experience and perspective_of_security_installation
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 ofSecurity 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 • ESSOutline – 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
- 6. Business Opportunity CCTV and Access Controlmaking strides toward topping burglar alarms as the electronic security industry’s No 1 source of revenue Source: SecuritySales.com
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- 8. Business Opportunity Homeland security efforts appearto 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
- 9. Business Opportunity Electronic security contractors continue therecent trend of making more at the front end as paid-in- full installations remained at 58%. Source: SecuritySales.com
- 10. Security Installation Statistics • Average numberof 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 profitmargins 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