Exacq Shutting Down US Manufacturing

By: John Honovich, Published on Feb 13, 2017

Just weeks after Exacq's 3 co-founders resigned, JCI / Tyco is shutting down Exacq's US manufacturing and laying off employees.

Inside this note, we share Tyco Security Product's response, examine what is happening and what this means for the company.

**** ***** **********'* * **-******** ********, *** / **** is ******** **** *****'* US ************* *** ****** off *********.

****** **** ****, ** share **** ******** *******'* response, ******* **** ** happening *** **** **** means *** *** *******.

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

Shutting ****

***** ** ******** **** all ** ************* ********** this ******, ****** *** ~30 ** *******. ********** will ** ***** ** Toronto ***** ****** **** Security ******** ********** ************* ***** ********.

**** ******** ******** ******** us *** ********* *********:

“*** ******** ** **** Exacq ********** ** *** Bridgeland [*******] ******** *** made ** **** ********* of *** ****’* ************ and ******** *** ******* for ********* ******* ** needed. ***** ******** **** be ************ ********* ***** Tyco ******** ******* ******,” said **** *******, **** President, ****** ****** *****, Tyco ******** ******** [**** no ****** *********]. “************* manufacturing ********** ** **********, recognized *** *** ** time ******** ************ *** excellent ****** ******, ****** clear ******** ** *** customers *** ********* *** related ************ *** ********* operations ** ****.”

***** ***** ** ***** expressed ******** **** *** ***** time ***** ** **** manufacturing ***** ******* ********** and ****, ** *** long ****, ***** **** Exacq's ******* ******** **** and ****** ******** ************ given *** ******** ******** between *****'* *********** ****, still (** ***** ***) in ******* *** ************* in ******.

** *** ******** ****, other ******* ******** **** the ******* ***** ** larger, ******* ******** ***** **** NVRs *** *** ************* / *********** ** ********* that *****'* ******** *** not.

Never ******** *******

***** *** ***** ******* marketed *** '**** ** the ***' ***** *** has ********* **** ******* large ** ********* ***** in-country ********** ********. ** addition, ** ***** ***** page, ***** **** ******* about ***** **** ** the ***.

Trump ******

**** ** *** *** has ****** **** ********* recently **** ** *** for **** ***** **** Trump ******** *********. ***** could **** ***** ********* of **** *********. ** the ***** ****, *** comparative ***** **** ** this **** ** ***** mid ******* ************* ** unlikely ** ***** **** issue ** *** ***** / *** ***********.

What ** ****?

**** *****'* **-******** **** and ************* ******** **** Exacq's **, ***** ** significant ******* ***** **** is ****. *** ********, people ***** ** *** company *** *** ********* about ******* **** ******* or ***** ********* **** be ***** / ******* from *** **.

Comments (33)

Anyone in Indy finding themselves without a job that can translate their skills over to an integrator... ahem.

Hoosier Security Celebrates New HQ

Many talented people in Fishers that I would hire in a minute if I could.  I wish them luck.

absolutely, everyone Ive met has been fantastic to work with.

Question to all: How much operational efficiencies does one need to achieve to justify / offset the cost and disruption of laying off people at Exacq HQ?

Exacq seems to be doing quite well and growing faster than TSP overall, so does it make sense to 'mess' with that?

Disclaimer:  I worked for Exacq pre and post acquisition.  It's big company mentality.  Buy something, squeeze the juice out of it, then move on to the next.  The people making the decisions have likely spent little if any time in Fishers.  Just line item stuff to them. This is not a knock, because I am sure from where they sit it is a smart move, and for a Quarter or so, upper management will earn a bonus.  It is just sad that the people that made the product and company what it is will be gone.

Agreed on all accounts. I'm curious to see what the release notes will be on future versions of Exacq. I remember as a rep how many new features they pumped into the releases. It was exciting to represent them. This is an all too familiar story in the industry of what happens after big companies buy out smaller ones. 

My experience has been that once Tyco buys a company, it's curtains. We stopped using them shortly after that happened.

While I agree overall with the statement, they have NOT screwed up the Kantech access control line, nor the DSC line...........both of which remain extremely reliable, with good tech support and product improvements.

Then again, there is Amercian Dynamics................ :(

And Proximex...

Paul, as of the 20th of January, Proximex is in Maintenance so no more development.

Every business is someones hopes and dreams.

Canada seems to have a robust security manufacturing sector. US-based companies and their government regulatory torturers may want to study it and find out how a first-world country like Canada is able to do it - Avigilon, DSC, Mircom, Keyscan, Viscount, etc. 

Canada seems to have a robust security manufacturing sector... Avigilon, DSC, Mircom, Keyscan, Viscount

I am with you in general, but not so sure about Viscount.

Here is Viscount's most recent Q3 2016 financial results and its a bloodbath:

Nasdaq lists Viscount's stock price at ~0.

Small thing but I've always wondered about Viscount's big claims despite their bad financials.

Nasdaq lists Viscount's stock price at ~0.

Pure upside there!

they are a 50-year old company that had a sizable legacy intercom installed base in North America and I think their problems may stem more from getting with the program too late in the game rather than regulatory/labor costs. But thats just based on my own anecdotal experience with their products and the company..

Any idea how much of Exacq sales is just software?

 That is a great question. I rarely sell the Exacq NVR hardware. If the software quality keeps pace, this move does not bother me…  except of course for my friends in Indiana. 

Great to see your new Administration "making America great again".

Wow Neville,  two weeks on the job and your complaing.  How is it to work 4 you?

This is not a place for your politics Snowflake. 

I disagree. Since the Trump effect was mentioned in the article, this is on topic. The fact you don't like it doesn't mean he is off base. 

Neville,

Since you brought in the politics, the DOW is at a higher rate since PRESIDENT Trumps election (now is 20775) more of an increase than in many many, years. You might stop watching the Canadian Baloney Corporation or the Communist News Network and try to get some REAL news, not you leftist propaganda and emotional invective.

Short term I see this as a positive. Being from Canada this move puts Exacq manufacturing in my back yard so should cut down the 3 to 4 week wait we typically see for an Exacq server. Might even see a price break too given the currency situation.

 

Long term, I have concerns about Tyco/JCI's ability to keep a great product great. I'll be keeping a close eye on what the departed Exacq founders are up to in the coming months/years.

There goes Donald, making Canada great again!

Not to get too political, but Mr. President only made Saturday Night Live great again. :-)

I only consider the @POTUS tweets as serious.... ¯\_(ツ)_/¯

thats one of the funniest things Ive seen in a loooong time

It was only a matter of time that Tyco would screw the pooch. Besides exacqVision being a great product and providing American jobs that was one of the reasons why we specified and installed exaqVision on many of our projects. 

~30 people are losing their jobs in Fishers.

is this a result of the exacq founders leaving Tyco - or is this simply part of what the exacq founders set in place before they left?

i.e. i doubt this news is a shock to them - because maybe it was part of their plan.

Based on the history of 'the founders', and the fact that ~30 people's livelihoods are in jeopardy, I would expect that any new ventures that the founders launch will be quick to occur - as these are ~30 others whom they've worked alongside for many years - or they will finally hang it up, frame their two gold records and just go play golf.

It won't be a 'couple years' - it will be ~immediate or not at all.

We have seen interest locally in positions from soon to be former exacq employees. It's my understanding they were not expecting it. Also, I wouldn't assume that the timing of this is coincidental, the founders, who I know from personal experience to be shrewd business people who also care about the people they work with and freaking brilliant problem solvers, may have seen this as a possibility when the terms of the agreement ran out. When you sell, you only have so much control over what happens after you're no longer the boss.

that's sad to hear....

not the you maybe getting some good talent part - but the end of a family kinda thing for them part. :(

 

 

Haven't hired anyone yet, but we are eager to talk.

 

It is sad. Tom, et al set up a very good company. But behemoths don't have feelings.

Change is inevitable. Exacq works as a simple appliance.

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