Powered by this acquisition spree, Convergint is projecting $750 million in revenue for 2017.
How tough of a competitor is Convergint? 110+ integrator responses show Convergint is a growing competitive force with a mix of compliments and criticism.
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Note: this is our second in a 9 part series on large integrators, first one was Competing Against ADT, future ones will cover JCI / Tyco, G4S, Siemens, etc.
Thanks John .. was just curious because this is generally true of most large national integrators, i.e. they have some strong branches and some weak branches, with the strongest ones often being the "original 13 colonies" ones .....
Not looking for dirt, just wondering out loud how this is playing out for Convergint since they are so aggressively growing via acquisition (and organically, no doubt). Looks like they are buying companies with good market presence, but the challenge is always melding the new companies into the mother ship's business culture without losing the elements that made the acquisitions attractive in the first place, right?
Since service is usually a higher margin side of the business with recurring revenue aspects and repeat installation opportunities, it piqued my interest that respondents to your survey commented on the weak service aspect they have observed in their particular cases .....
just wondering out loud how this is playing out for Convergint since they are so aggressively growing via acquisition
It's a good question. I don't know enough to say. Part of the challenge will be how those new acquisitions (11 in 18 months or so) work over the next few years as they get more 'Convergint-ized'.
In my experience National Companies have their place in the market, mostly with Fortune 100 companies that want one Integrator to handle all of their sites.
However, when one of these National Players buys a solid Regional Business, there is opportunity for other dealers to get new customers. Most Regional Customers do not like to deal with Nationals as they do not feel the same love as they do with a local dealer.
This is why some owners sell there business and wait out there five year non-compete and steal back there customers again.
I couldn't agree more. In fact, I was just about to say what you said.
There is an inverse relationship that exists between small/large customers and large/small integrators.
Small customers are generally owner-led, detest bureaucracy, contract complications, drawn-out business processes, and impersonal service. So small/medium businesses are predisposed to want to seek out and choose small/medium integrators to work with.
inversely, large customers and their contracts dept, compliance officers, project managers, administrators, etc love bureaucracy, complexity and process. Small integrators are not built to interact with that kind of process and quickly get buried by it.
Logistics and presence is another factor - the small integrator doesn't possess the logistical infrastructure to support a large multi-state company and most of the time is not even going to get past the front door. Likewise, a large national integrator isnt going to work very hard to get the business of that ten-person law firm that needs an electric strike and four cameras - they need bigger fish to pay for all their overhead.
So, the big guys compete with other big guys and the little guys compete with other little guys. For the most part.
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Comments (10)
John Honovich
Note: this is our second in a 9 part series on large integrators, first one was Competing Against ADT, future ones will cover JCI / Tyco, G4S, Siemens, etc.
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Damon Tarquinio
Can anyone comment on which offices are strong in performance and which ones may be lacking or not on par with the rest?
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Luis Carmona
IPVMU Certified | 07/24/17 06:51pm
I'm sure there are growing pains with any sized company that is growing, and not to be unexpected.
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Undisclosed Manufacturer #1
In my experience National Companies have their place in the market, mostly with Fortune 100 companies that want one Integrator to handle all of their sites.
However, when one of these National Players buys a solid Regional Business, there is opportunity for other dealers to get new customers. Most Regional Customers do not like to deal with Nationals as they do not feel the same love as they do with a local dealer.
This is why some owners sell there business and wait out there five year non-compete and steal back there customers again.
Create New Topic