In 2017, Which Is A Better Business - Manufacturer Or Integrator?

If you can create a good dependable product you will have no problem staying in business as a manufacturer, but getting started is very difficult and expensive. Integrators can start quickly and benefit from returning revenue with monthly monitoring fees. Which, if done properly can be very profitable and highly desirable to sell in the long run.

Every Job, Project, Discipline has its own challenges. 

Its how many resources you have at your disposal or on hand to complete them. 

Bigger the project , more resources needed and better management needed , but also more to gain in the end product. 

low investment , low return 

high investment , High Gain

as an integrator I see only the whole as a project 

but talking to manufacturers , it get s more complicated 

concept, design, engineering, manufacturing, distribution and so on. 

while I can make up mistakes , cover my self with fixes 

a manufacturer can make or brake on penny's or reputation 

more to loose , more to be responsible for . More people and resources needed to deliver the end product and have success.

Integrator s can resolve conflict quickly , make changes quickly, make snap decision s that only affect them . 

While manufactures can loose on public opinion or perception or faulty product due to no fault of their own . 

I would say their is more Risk in manufacturing and more lives on the table to take care of in the process.

IMO, the higher up in the integrator-distributor-manufacturer food chain, the better. 

A manufacturer's risk/reward is distributed across many distributors and integrators. A distributor somewhat less so across many integrators. Integrators by far are subject to much more risk from their efforts, talents, and territory.

From a consultant's perspective:

Becoming a manufacturer requires much more capital and there is a much longer lead time between start-up and profitability. Unless you have something really unique in the way of a product, trying to distinguish yourself in an already crowded market is extremely challenging. The channel is already so stuffed that the last thing the major distributors and integrators want to see is another "me-too" video surveillance or access control product. It's also very difficult for manufacturers to make changes quickly - once investments in product design and tooling are made, there is a strong reluctance to throw things away and start over. 

Becoming an integrator can in most cases be done quickly and with relatively little capital (when compared to manufacturing). In my opinion, there are still many niches in the integration business that are under-served and ripe for the picking. Most of the small to medium sized integrators that I work with are terrible at proactive sales and marketing. I feel that security integrators that listen to what customers are asking for and have an aggressive marketing approach can do very well. Yes, margins on equipment sales are being driven down, but opportunities to provide services (consultation, design, systems administration, proactive maintenance and upgrades, etc.) have never been greater. Systems integrators can also make changes to their business model fairly quickly, allowing them to shed product lines and services that aren't working to take on new ones that customers are asking for.

However, the potential upside for manufacturers is much greater. While a successful integrator can earn a very good living, the likelihood of striking it rich is small. On the other hand, if a manufacturer can come up with a truly unique product that takes the market by a storm (similar to what the iPhone did to the cell phone industry when it was first introduced), there is a huge potential for upside.

Hacker

I hope manufacturers have it better because being an integrator can sure suck.  There is a lot of risk in contracting particularly when GCs and consultants are involved... and it is far worse when either of those parties are incompetent.  The manufacturer is shielded from those risks.

I can also see where working for a manufacturer would be difficult in light of the race to the bottom and the growing cyber threats.

Sooo True 

Limit the Risk , Do the due diligence on the GC and Subs you work for. 

Limit the Risk by pre paper work , 

Know the background for who you work for !

Its ok not to take all Jobs or work for scoundrels 

Pre liens, Liens , More contracts, and make sure who is really the RMO 

or authorized Signature 

Lots of pre authorization and contractual agreements and Change Order Paper trails before completion. 

Too many incompetent PM's and GCs who want the incompetant so they can transfer accountability and not be responsible. 

I had a National Account s Account which Contractor went out , during Project , Attorneys had to take over the Job , and after this was finished , it took 6 months to get paid and that s only because I had a strong contract , and Held the keys to Life Safety over thier heads ,

I had to threaten and start Process to shut down business,

That s when heads turned and resultants happen.

when fear of loss arises then action happens 

I'm going to say manufacturer, but it really depends on what you manufacture.  I wouldn't want to be in, say, robotic security guards, for example.

so if you see the vulnerability, are you a solution or a Pain in the managements A---

or is it your responsibility to pt out deficiencies or say nothing ? 

what level of responsibility is yours and what is theirs 

who takes the fall for not doing what is right. 

I see these kind of scenarios all the time in public places. 

But not my place to pt out . 

and if those in charge pt out , their job is in jeoperty. 

Delima is Right vs Wrong, Who is ? who is not ? 

In security and Fire I have Codes, Ahj's, teams to back me up 

most other areas i am on my own and usually looked at like a sore, problem, or another pain 

not an easy solution as so many involved and public is always on the witch hunt to prosecute someone . 

Worst is the media,

who is always looking for the next one to try in the media and

let the public opinion Prosecute the case before trial. 

All things being equal, an integrator with a professional culture and solid sales process should have an advantage over the manufacturer.  Manufacturers are limited to offering only their products in order to resolve a customer’s issue.  The customer knows this and by using technology, most organizations employ professional procurement departments that research all product features and costs.  The sale becomes simply a commodity. 

On the other hand, because integrators can offer a vast array of products, if they have a knowledgeable and professional sales team, they can lead their sales approach as a professional problem solver.  Such a “trusted advisor”, can add that unique value that so many customers badly want.