IC Realtime Moving Away From China Manufacturing

By Joey Walter, Published Jul 23, 2020, 08:56am EDT (Info+)

IC Realtime is promising "real change". The company historically has sold hundreds of tons of OEMed Dahua products, but with sanctions and bans, IC Realtime has declared that it "is officially moving away from manufacturing goods in China".

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** ***** **** ** ******** ******* *********** *** ****** ** *** *******'* strategy *** ***** ** ************* ** Korea.

Background ** ********

** ******** ** * ~**-**** *** company **** ********* ***** ** ****-*** automation (*.*., ****** *****) *** ** traditional ********, ********* ***. *** ******* is ********* **** ******* ** ~$** million *** ***** *** **** *** "difficult" *****.

*** ******* *** **** ***** ******* until ~****, ****** *****, *** ********* in *** **** *** ***** ** Dahua ******** ******* *** ** ******, and **** ******** ** ***** ******** intensified.

***, ** ******** ** ****** ** be ********** *** ** ***** ** next ****, ********* *** ************ **** Korean ****************** ******, *** ** ******** **** ** has ** ********* ********* **** *** the ********.

Background ***** ******

** ********'* *** **** ** ***** worked ************* ** *** ** ********* ******** *** ***** *****. ***** ** started **** ****, ** ******** *** relationship **** *****.

******** *** **** *** **** *****, with ** ******** ****** *****. ** the **** *** *****, *******, *** Chinese ******* *** **** "*********" *** it ****** ********** *********** ******* **** the ******* ************.

Challenges **** - ****

** **** *** *** ********* *** American ****, ****** *** **** *********** for ** ******** ** *** ***** 2010s. ** ******** ***** **** *** rapid ***** ******** (*.*.,*** **** ** *** ******) *** ***** ******* ** * USA ******* ******** **** ******** ******** with ** ******** *** **** ***** Dahua ********.

****, **** ****'****** ******** *****, ****'* ****, ****'* ***** ****** sanctions, ******** ***********. **** ****** ******* declines ** ** ********'* ********.

IC **** **** *** *******

******** ***** ** ***** **********, *** IC ******** *** ******** **** ****, ******* $** ******* in ****, ** ** ***** *** ******** market ********* ******* ** *** *** retail. ****** **** **** ** **** Tech ** *** "*******" – *** debt **** ***, *** ********** ******* separate ** ** ********.

Korean "****** *******" *************

** ******** ****** ** ********* ********* with *****'* ******** **** ********** ******* ** *** **, ******, and ***** ********. **** *-**** ********* renews ***** ** ******** ***** ***********, which ** **** ** ** ******* dwarfing.

** ********'* ******* ************ **** ********** *** ****** *****:

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** *** ******* ** * ******* titled "******** ******* *** **** ** CHINA":

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*** ** ******** *** ******* *** manufacturing, ***** ******* ******* *** ***** RMA ******** ** *****, ****** ***** attention ** ****** ** *** ******** even ** ****** ****** ********** ** 2020.

Not **** ***, ******* ** ** ****

** ********'* ****** **** ******** *** not *** **** *********, ****** *** IC ******** *** ******* **** *** "next *****" **** **, ***** ******-********** Intel ***** ******* ** **** ****** Huawei ********* *****.

*** ******* **** **** *** ******* labeling *****"*** *********" ****** **** ****************** ** *** ******* **** *** China **** ******.

Product ************ *******, ***** ** ******

** ******** *********** ****** **** (*.*., *** ********) products:

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**** **** ** *** **** **** products ** *** ****** *****, ** the ****** ******* ***** **.

********* ** *** ** ******** ***, this ******** *** **** ****** ***** their ****** **** *****, ** **** lacked "******** ********" ** ******* **** other **********.

Pricing ***** ** *****

** ******** ***'* ********* * ***** increase ** ~**% *** ***** "*** compliant" ****** **** **** ** *** short ****, ****** **** ****** **** to ******** ** **** ***** *******.

Tariffs *** ** ******

** ****, ** ********'* *** **** they ***** "********" ** **% ***** tariffs *** ***** *****-**** *****.

***, ** **** ****** ** ***** made ********, **** **** **** ********* of *********** ***** *******, ******* *** impact ** ** *******.

** ********'* *** **** **** ****** to *** *** ~**% ***** ******** in *** ****** ****, ** ***** goal ** ** *** ******** ***** based ** ****** ***** **********.

PPP **** "***** ***** *****"

*********** *** ** ******** ****, ****** a ****** **% **** ****** *** peak ******. *** ** ******** *** said ****** **** ** $***,***-* *******"***** ***** *****", ******* ***** ** would **** *** ** *** *** a *********** ******* ** ***** *****.

No ***** *******

** ******** *** *** ***** ********* of *** ***** ****** ******, **** the *** ****** ** *******, ****** that ** ********* **** ***** *** set **** ** ********** *** ******* e.g. **** **** ****** ****** *** of ******** ** ******* *** ****.

** **** **** **** ***’* ****, are **********, *.*. *** **** ****** in ******* ***** **** *** *****, and *** ************ ********* ******* "*** consistent" ** ***** ***** ********.

Acquisitions *********

** ********'* *** **** **** ************ are ***** ********* *** *** ***** this ****, ****** ********* ** ******* on ******** *******. *******, ** ** Realtime *** ******* **** **** ** software, ******* ***, ***** ** ***** analytics, ** ***** ******* **** ** differentiate ********** ******* ***** ******** *********.

*******

***** ** ** *** ********** **** IC ******** ********* **** *** **** few *****, *** ******** *********** ******** the ******* **** * ****** ** re-establish ****** **** ****** **** ******** and *********** ************* ********.

Update #*: ***** **********

** ********'* *** *** **** ****, in ****** ** "***% ** ***-****" Korea **********:

* ***** *** **% **** ** will ** ****** **** **** *** transition ** *** ****. **** ************* by *** *** ** **** *** migration **** *** **** ** ********.

Vote / ****

Comments (17)

How bold. My opinion, this is just virtue signaling and posturing. IC Realtime was forced into this position after years of batting for PRC.

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While I think it's fair to say, inadvertently or not, they were 'batting for the PRC' for years, I think this is more than virtue signaling since shifting away and publicly negating their long-term business partner carries real cost and risk.

On the other hand, it's not like fighting to the end with Dahua is a great business move either but Honeywell has not publicly disclaimed its similar long-term Dahua relationship.

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Knowing Matt personally, I've never seen him do much by way of virtue signalling... He's a good dude, generally pretty straight forward, and has built a hell of a business by differentiating everywhere he could and bringing in talent often. He sure beat me at the niche distribution game back in the day with nearly the same product line! I think this is a genuine move for them born out of the same frustration all other niche distributors have been facing for years, it just took them longer because they're bigger.

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Then my follow up would be why doesn't he invest an equal amount of energy by focusing on US made product? By virtue signaling, I mean there wasn't much of a choice in the matter, because he waited until buying Chinese became a problem. how bold.

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Update #1: Korea Production

IC Realtime's CEO has told IPVM, in regard to the stated goal of "100% by mid-2021" Korea production:

I would say 75% that we will be mostly done with the transition by mid 2021. More realistically by the end of 2021 our migration will for sure be complete.

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This is good news and I wish them well.

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Great read!! Ima IC Realtime Installer can likely attest to every bit of it.

My only complaint is that the 10 Year Equipment Warranty is gone. It was free but now it's over. Sad face.

Don't learn the tricks of the trade, learn the trade.

Your new friend

Chris

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WHAT WILL NEVER CHANGE AT IC REALTIME

  • Dealer Protected Pricing
  • 10-year Warranty
  • Lifetime Support
  • UL Listed Products
  • No Licensing Fees
  • Account Management

IC Realtime products integrate with Savant, Crestron, Control4, RTI, URC, and other home automation platforms - an infusion of video surveillance and smart home technology like no other.

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IC Realtime's website says this about warranty:

"Any product sold by IC Realtime but not manufactured by IC Realtime is warranted only by the original manufacturer's warranty, no other warranties of any kind is offered or implied."

It seems unless Dahua offers a 10-year warranty (I believe it's only 5 years), IC Realtime's OEM'd cameras won't have a 10-year warranty.

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Hi Chris,

The 10 year warranty is still in play. We also released the Edge line and that has a 7 year warranty. Hopefully that put's a smile back on your face.

Stay Well,

Regards,

Frank

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What will never change at IC Realtime:

-Investing in foreign unfair labor production facilities versus investing in America.

Sorry, but I can't force myself to be a cheerleader for more foreign product-dumping.

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Sorry, but I can't force myself to be a cheerleader for more foreign product-dumping.

In fairness to IC Real-time they are not the broken system. The broken system existed before IC Real-time joined it. IC Real-time was just ahead of the curve. It is fair to say they are slow to booting the line so late in the game. There are much larger companies that should be the focus of outrage.

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This is a good move, but about a year too late for them to be competitive outside of AV companies who use them. I know a couple of companies that use them and they fit the exact market described (small business and luxury homes) via AV companies who resell them. Not surprisingly, those companies have almost no idea about the government sanctions and were obliviously when I mentioned that they were using Dahua as rebranded equipment. I think they'll remain pretty much where they are in the market place.

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I was skeptical about using IC Realtime but a client insisted that I install them simply because of the warranty they offer. I was pleasantly surprised by their top notch customer service and sales team. I will use them in the future!!

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That is funny because that is the EXACT same way I discovered them nearly 6 years ago.

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Update from IC Realtime now that 2021 is almost over:

The transition is happening slower than we would like but we are making good progress. Currently we have migrated about 60% of business to our Korean partners. Between supply chain disruptions, chip shortages and shipping, it's been a tough go. If it wasn't for the current environment we would be close to 85% switched.

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So basically they are no where near out of China. It’s easy to keep saying “just a little longer” over and over.

let’s be honest, we all have had those girlfriends/wives in the past who just keep saying ……….” I’ll change I promise. I just need more time”……..years later still no change. 😆

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