Local Security Alarm Dealers Declining, Shows Barnes Stats
Once a cornerstone of the security industry, smaller local alarm dealers are declining significantly, new statistics from Barnes Associates show.
We spoke to its Founding Director, Michael Barnes, about their statistics and the factors that they view are driving this trend.
*** ****** ***** ***** ***** * 10-year ***** ** ********, ****, *** DIY ********* ******* ***** ** *** expense ** ******** *** ***** *******, most ******* ***** ******* *** **** ten ********** ****** **** **% ** 2014 ** **** **% ** ****:
****** ********* **** *** ***** **** are ******* ** ********* ** * single ****** **** *** **** **** $100,000 (*.*., * $*.* ******* ****** subscription ********):
****/******** ********* ************* ** *** *****, with *** **** ********* ** ******* local ******* ****** *****. ***** ********* are ******* ** ********* ********* ** a ****** ********** ******, *** ****** less **** $*** ******** ** ***.
**** ******* *** ***** ****** ** these ******* ** *********, *** ***** the ***** ******* ** *** ***** is *******, ** ** ************* ***** than *** ******* ****** ****:
********** **** ******** ** ** ********** that *** ******** ****** ** ******* players ** **********, ****** **** ** a ***** ****** ** ***** ********. The **** ** ***** ** **** group ** * ******** ** ***** players ******** **** * ****** ****** rate ***** ***** ********* ******. **** is, **** ***** ** *******, *** at * **** ***** *** ******** growth ****, ***** ******* ** * decreasing ***** ** *** ******* ******.
****** ********* ********** **** ** ****** approaching ** ******** ********** ******** ** be ******** ** ****** *********:
*** ******* ** *** ****** ** players ** *** ******** ** *** in ***** **** ** ***** *****acquired ** ****** *******. Many companies in this size category were founded in the 1980’s and 1990’s during an expansion phase supported by better equipment distribution and the broader availability and use of wholesale monitoring. This ownership ***** ** ***** *** and increasingly receptive to being acquired. The loss of these players impacts the overall growth rate of the group, but even absent this activity, these smaller players appear to be growing at a rate slower than the overall industry. Our take is that this is due to an increase ** ******* ********* ********** and an increasing conservatism among many of the players due in part to the aging dynamic discussed above.
***************, *** ******* **** ** ******* equity ***** ******* ******* ******* *** helped ********** **** *****.
*******, ****** ******** **** ******* ******* can ***** ** *********** *** **** it ** *** * *********** ******:
** **** *** ****** ** ** due ** ** ******** ***** ** the ******* ** ******* ******* ** be ***********. ****** *** ******* ***** there *** **** ***** **** *** very **** *******, **** ********* ********* metrics. ** **** ********, ***** ** still ********* ** ** **** *** being ***** *** ******, ************ ** they *** ******* ** *** ** the ****** ******* *******/******* ********.
*******
**** ******, ***** *** ****** ** tough ** ******** *******, ** ******* the ****** ** ******** *** ***** commercial ******** *********** ** ******* ***** than ** *** * ****** ***. Between, **********, *** **********,*** ******'* *** *** ******, *********, **** ** **** * ***, over *** ***** *** ******** ******** integrators **** **** ********. ***** *********, new *********** *** ********, **** ***** integrators **** ******* ***** ~$* ******* in ******* ** *** **** ******, far ************ *** ****** **** ** the ******* ********.
*** ******** ******** / ****** **** be *** *********** *** "*********" ** increasingly **** ************* *********** *** **** the **** ******. ** *** **** they *** *****, **** ***** ******* consolidate *** ****** *** **** *** also **** ********* ** ***** *****, leading ** * *********** ** ******* independent *********.