Economic Meltdown Rocks Security Industry

Author: John Honovich, Published on Feb 08, 2009

This is no ordinary recession. Dramatic and permanent changes have already begun. In conversations with over 30 end users, integrators and manufacturers over the last 2 weeks, the changes are happening faster and deeper than even I predicted a few months ago.  Fundamental assumptions on how to run businesses in the security industry are being permanently overturned. It is critical to understand what is changing and how to respond.

**** ** ** ******** *********. ******** *** ********* ******* **** already *****. ** ************* **** **** ** *** *****, *********** and ************* **** *** **** * *****, *** ******* *** happening ****** *** ****** **** **** * ********* * *** months ***.  *********** *********** ** *** ** *** ********** ** the ******** ******** *** ***** *********** **********. ** ** ******** to ********** **** ** ******** *** *** ** *******.

[***************]

*** *** **** ********* ****** * *** ** ** ******** and ********** ***:

  • ***cutbacks ** ******** *** ****** ********** ******* - amongst end users, integrators and manufacturers. Retail and banking are certainly the most severe with almost daily reports of security and LP managers being laid off. That may expected. However, reports are getting more common about coming or planned cuts even within state and local governments. On the manufacturer side, I would estimate almost 30% of the companies in video surveillance have already started layoffs and/or wage cuts. Amongst integrators, problems with obtaining financing and delays of projects are common-place.
  • ***economic *********** ** ****** *** **** ****** than expected. As most know, the ** *** ********** *.*% ** ** **. ** ***** **** ********** **** ******* ** *** *** inventory *******. *** ******* ** ******** ** ******** **** ******* by ** ***** ******. **** ***** ** *********** ** ****** incredible. *** ******* ********** **** **** ******* **** ** *** in ****** ******** **********. ** ****, ** *** ****** ** this ****, *** *********** **** **** *** ********* ** ***** called**********. ** ******, **** ** *** * ** **** *****. Depsite *** ********** ****** ** ***** ***** ******,************ ** ************ ** *****.

**** ** * *********** ** * *********** ****** ** *** economy ******* ***** ********* ** *** ******** ** *** **** bubble *** *********** ** *** ****** ** *** ********.

*** *******, ******** ****** *** **** ****** ** **** **** (as ******** ** ******* ******** ********). **** ** *** ************ *** ** *** **** *** elimination ** '********* ******' *** *** *** ***** ** **** lending *********. **** ** ***** ******* *** ******** ********** ** economic ******** - *** **** ** ** *** ***** ** come.

*** ***** ***** ****** ** **** ** **** *********** ********** are ***** ***********/********* ** *** ********. *************, **********, ***** *** *** **** **** *****. *******, **** industries *** ***** ****** ** **** ************* ******* ******* ** the ********. *** ********** *** ******* ********** ******* **** ***** problems. *******, * ***** **** ** ***** ******** *** ****** by *** ********.  ********* ***** **** ** **** ***** ******* for ******. *** ******** ****** **** ******** *** ***** **** to***** *** *************** ** ****** ***** **** ** ****. *** ********** ********* are ********* ** *********** ****** ******** **** ******* ****** ***** in ** *** ***** ******* *********** ** ********* **-****. ** course, ** *** **,  **** ********* **** ******** *************** **** ******* ******* ***** ** ********** **** ** *** car *********.

******* ** ***** *** *******, *** ******* **** *** ********* will ******** *** ***** *** **** ****** *** *** ******* that ******** **** ***** **.

**** *** *** * *********** ******* **** **** **** ***** to *** ******** ********:

  • ********* **** ********* *** ***** ****** *** **** ** ****** to ******** ************* **** **********
  • ****** **** ***** **** ****** ******** ******* ** ******* ***** ones
  • ***** ********* ******** **** ** ****** **********
  • ********* ********* **** ** **** **** ********* ** ********* **** now **** *** ******* ** *** *** ********

Sales ***********

***** ************* *** ** * ********* ********. *** ******* ** dropping ** ******* **** ****** *** *********** *** **** ************* need ** ** ****** *** *** ******. ** **** *** a ***** **** *******, *** ***** **** **** **** *** make ** ******* ** ***** **********. ** **** *******, *** will *** ** **** ** ******* **** ************** *** *** many ******** ** **** **** ** *** ******* ****.

* ** ********* ** *** **** ** ** ***** ** manufacturers **** ******* **** ********. *** ********* **** ** ****** out **** ** ** ***** *** *** ** **. **, for **** ********, ** ***** ** ** ************* *** ******** expectations. *** **'* *** ** ** *** ******* **** ** strong ** *** ******.

******* ********* ***** *** ** ** ***** ** ****** *********** that *** ******* ** ******* ***** ********, ***** ************* *** going ** ** *** *******. **** ** ******* (*) *** numbers *** *** ***** *** (*) *** ******* **** *** be ******* ****** *** * ****** ** ******** ** ****. Furthermore, ******* ** *** *********** ** *** *******, ********* **** be *********** ******* ****** *** ***** ****** ******* ** *** time ** ***** *** ***** ****** ** **** **.

*** ** **** **** **** **** ********* **-***** *** **** organize ***** *** *********. *** ******** ** ***** *****, ******** contact, ****** *** *** **** ** **** ******** **** **** significantly. 

** *** *** ** ****, * ******* ****sales ****** **** ** ******* ** **% ******** ** **** ******. Growing companies will hire less, shrinking companies will either cut back to reduce costs or be driven out of business because they were not aggressive enough to cut costs.

***************:

  • **** **** **** ** ***** ****** ****** **** *****. ***** is ** ********* ******** ** ****** **** *** ******* ***** around ** * *** ****** ** *********. 
  • ********* ***** ********** *** ******* ********* ** *** ***** *** the **** *** ***** ********* ***** **** **:
  • ** **** ******** ** ********** *********. ***** ****** **** ** have ***** ****. **** ** ***** ** **** ***** *** can *** *** *** ** ******** ** * *********.
  • *** **** ** ******** ******. * ** *** ********** *** to ** ** ******* *** ** ******* ***** *** ********** you **** ** *****. *** *** ************ ** ** ***********.
  • ******* ****** ****** ** **** ***** *** **** ********. **** it **** **** *** ********* *** ********* ** ***** ** much ** ******** ******* *** ****** ** ******** **** ******. A * ****** ***** ******* **** *** ******** *** **** you **** ** ********* ** ***** **** ******** *** ***** deliver **** *** *******. ******** ****** *** ******* ***** ******** visits *** ****** ******** ******* *****.
  • *** *** ******** *** **** ******* ** ** ***********. **** my ******** *************** ** *** ********* **** ****** *********.

**** **** ********* ******* ******* **** ** ***** *** *** economy ***** *********, ********* **** ** ** **** ******* ***** how **** ******** ***** *** **** ******* **** **** ** make.

Importance ** **** ******

*** ******* ** *** ****** ***********, ******** ****** ****** ** security *** ************* ********. ********* *** *** ******* ** ***** off **** **** ******* ** ******* ****** *** **** ****** quality ** *** ******.

* *** **** ********* ** *** *** ******* **** *** happening. ***** * *** ******* *******, * ******* *** ** ******** ******* *** ************* ** see *** ***** *** ******* *** **** ****** **. *** themes * ***:

  • ****** *************' ****** **** ******* **** ******** **** ****
  • ******* *** ************ **** ******* ****** ******** *** ******** ****** out ** **** ********* ********

** ****** ** ******* **** **** ***** **** ******** *** grow **** *** ****** ** **** ****. **** *** **** to *** ******** ** *** **** **** ***** ****** ** 2010 *** ****?  ** * ****** ** *** ******* ** this ******, * ***** **** ***** **** ******** *** *** will *** ******* *** ****** **** **** ** ****** ******* products. 

** ***** **** *** ****** ** ****** ** *** *********. The ****** **** *****, *** **** **** **** ****** ********* emotionally ** **** ** ***********. ** ********* (*** ******) *** emotionally **** *******, **** **** ********* *** ************** ** ****** price, **** ****** ********.

***************:
  • ********* ****** ** *** *** *** ******** ** ***** *** of **** ******** **** ********* ** *** ****** *****
  • ** ******** ***** *********** ******** **** ***-****, **** **** *** features 
  • ***** ** ******** **** ****** *****
  • ***** ** ********** ******** ** ****** ***** *** (*** **** point)

Customer ******** ** ***** ********* ********

****** ******* *** ******* * *********** **-********** ** ***** ********. A ******** ***** * **** ** *** ******** *** ******* remaining ********* ** ** ******** **** *** *** ************* *** no ****** ****** *** ***** ** ******** **** ********** ***. Moreover, *** ********* ************ ** *** ************ ** ******** ** rise ************* **** ****. ****, ********* *** ****** ********* ** hire **** **** *** ******* ****** ** *******. ** ****, the ******** *** ********* ********* ** ** **** **** **** grow *** **** **** *** *****.

** ************* ******** *** ********, ** ********* ****** ***** **** be *** **** ******** ***** *** **** **** *** ******* hold. *** ********, *** **** ** ***** ** ** ******** in * ******** *******, *** **** ****** *** ******** ******* will ** ****. ****** *** **** ** * *******, ******** will ** ************ ** **** ******* *** **** ******** *********. This ** * ***** ********** ** ** ********** ******** **** **** * ********.

***************:

  • *** ***** *** *********** ****** ** **** ******* ***** *** level ** ********** *** **** **** ******** ** ******* ******.
  • ******** **** *** ********* *** ****** ************, ******* ***** *** maintenance **** ** *******.

Terrorism *********

*** **** ** *** **** ******, ********* ******* ********* *** been *** ******* ***** ** *** ******** ********. ** ** essentially * ******* *** ** **** ************* ********** ****** * single ****** ** ******.

*************, *** ******* *** ******** ********* ** ***** #* *** most ** *** *****. ******* ** ****, ***** ** *****, the ********** ** *** ***** ** ********* ***** **** ** replaced ** *** ********** ** ******* ** *** ******** ******. Most ****** **** *** *** ********* ***** ** ****** **** or ******** ** ************* **** *********** **** *** ********** **** abstract ***** ** * ********* ******.

**************: ******* *** *** * ******** ******* *********** *** ******** ******* or * ******* ******* ********, *** **** ** ********* **-***** your ********* ****** *********. **** ******* ******** ** ******** ***** are *** **** ****** ** ** ******** ** *********.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

'Clowns' Allege Ubiquiti 'Completely Fraudulent' on Sep 20, 2017
A short seller has alleged Ubiquiti is 'completely fraudulent'. Ubiquiti's CEO has responded calling them 'clowns'. Here is the short...
Avigilon 'Blue' Cloud Entry Examined on Sep 19, 2017
Avigilon is moving to the cloud. The company announced their Avigilon Blue platform, designed to be a web-managed surveillance system, utilizing...
Avigilon Touting 'Made In America' on Sep 18, 2017
Canadian manufacturer Avigilon, who completed a US manufacturing facility in 2015, is now running a marketing campaign touting 'Made In America',...
Forgotten Password Problem Importance on Sep 15, 2017
Forgotten passwords has become a major industry topic. For example, Hikvision has been emailing admin passwords in plain text until IPVM's...
Hikvision Launching Ezviz Pro on Sep 14, 2017
Hikvision is launching Ezviz Pro. In 2015, Hikvision expanded Ezviz, a direct to consumer offering, to North America. Now, Ezviz 'Pro' is...
Genetec Launches Community Connect Examined on Sep 14, 2017
Genetec has done best in large-scale, enterprise systems and relatively worse in smaller systems such as SMB. Now, Genetec is launching...
Dedicated Vs Converged IP Video Networks Statistics on Sep 12, 2017
'Convergence' has been a major industry theme for many years. All organizations have IP networks today with laptops, tablets, phones and more...
Favorite Network Termination Tools on Sep 06, 2017
Thomas Carlyle said "Man is a tool-using animal. Without tools he is nothing, with tools he is all." For security integrators, their tools are...
LTS Hikvision Sales Challenge ADI on Sep 06, 2017
ADI is clearly #1 at running sales. But long-time Hikvision OEM and new Hikvision distributor LTS is coming on strong here. In this note, we...
CNL PSIM Profile on Sep 06, 2017
CNL has been one of the strongest advocates for PSIM, as one of the earliest entrants into the market releasing their command and control software...

Most Recent Industry Reports

Genetec Launches Cloud Access Control (Synergis SaaS) on Sep 21, 2017
Genetec's cloud everything expansion continues, with their announcement of Synergis SaaS edition, joining their cloud video offering Stratocast,...
Genetec CEO Warns Against Insider Threats on Sep 21, 2017
With Dahua and Hikvision cybersecurity issues becoming indisputable, a new counter has emerged. Just put them behind a firewall, buy cheap...
Automatic Door Operators For Access Tutorial on Sep 20, 2017
Opening and closing doors might sound simple, but it takes a high-tech piece of door hardware to pull it off. Integrating automatic door operators...
'Clowns' Allege Ubiquiti 'Completely Fraudulent' on Sep 20, 2017
A short seller has alleged Ubiquiti is 'completely fraudulent'. Ubiquiti's CEO has responded calling them 'clowns'. Here is the short...
Avigilon 'Blue' Cloud Entry Examined on Sep 19, 2017
Avigilon is moving to the cloud. The company announced their Avigilon Blue platform, designed to be a web-managed surveillance system, utilizing...
HID Buys Mercury Security on Sep 19, 2017
One of the biggest access control deals in years. Mercury Security, the most widely used access hardware OEM, and partner to 20+ manufacturers,...
Hikvision Backdoor Exploit on Sep 18, 2017
Full disclosure to the Hikvision backdoor has been released, allowing easy exploit of vulnerable Hikvision IP cameras. As the researcher, Monte...
Avigilon Touting 'Made In America' on Sep 18, 2017
Canadian manufacturer Avigilon, who completed a US manufacturing facility in 2015, is now running a marketing campaign touting 'Made In America',...
Cloud Guy Prints Book, Misses Irony on Sep 15, 2017
On-premise security systems are dead. But $75 print books are alive and well. Such are the lessons from Brivo's CEO new book "The Five...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact