Coronavirus Hits Manufacturers, Standing Now, Worse To Come

By John Honovich and Brian Rhodes, Published Apr 06, 2020, 08:22am EDT (Info+)

Coronavirus is hitting security manufacturers, though overall modestly for now, with worse expected to come, new IPVM survey results show.

However, manufacturers are still doing better than integrators who have been hit much harder.

Inside this report, we share statistics and dozens of manufacturer comments to show what is going on right now, in the industry.

Executive *******

*** **** ******** **** *** **** 1/4th ** *********** **** **** ***** were *** **** ** ****** ******* of *********** *** **** *** ****** by * ****** ****** ****** ****** were ************* *****:

Contrast **** ***********

*******, ******* ******** ******* ***** *** **************** **** **% *** **** **** been **** ********.

*********** *** ************* ***** **** *** problem ** ***** - *********** *** much *********** ******** ** *** ***** able ** *** **-****. ** ****, integrators *** ********** ********** *********** *** nearly ********* ******** ******* ************* ******* products *** ***.

Worsening *****, ******** ********

*** ************* *** ****** ** ** soon **** **** ******* ******** ** the ********* ********. * ****** ***** was ****** ***** **** ** *** but ****** ** *** ***** ****:

  • "*** ******** *** ****** ********** **** with ******* ******** ***** ******** ** short ***** ***** ** ***** ** security *** ****** ********** ** ******* and **********. ** ****** **** ** worsen ** *** ***** ** ****."
  • "***** ********** *** ******** **** **** closed ***** ** **** ****, *** much ****** ** *******. *** ** anticipate * **** ** ** *** amount ** *** ********."
  • "** *** *****. ******** ****** ********** they **** *** **. **? ** will ** **** ***. ***** ** a **% ******* ** *****."
  • "** *** * ****** ***** *** have **** **** **** *** ******** scheduled *** ** *** ** ****. We **** ************ *** ********* *** approach ** ** ****** ** ***** the ******* ** ** *****."
  • "** ***, ** ******** ******** **** been ********, ** *** ** ****, but ***** ** ** *** ******** coming **** *** ********. ** **** feel *** **** ****** ** **** in *-* ****** **** ***."
  • "******* ******** *** ****** ******* *** April ***** **** **** *** *** and **** *** ******* ** ********. Looking ******* ** ******** ******* **** to ****! ******** *** ***** ******** and ***** ***** **********."
  • "***** ***, *** ***** **** **** fairly ****** ******* ** *** **** projects ** *** ******** *******, *** we *** ********* * ** ** 50% **** ** *** ***** ** the ****** ****** ** *** ******* keeps ****."
  • "** *** ****** **** **** ****, but **'** ****** * ******* ** the ****** ******."
  • "*** ** ** **********, ****** *** very ****! *** * **** **** we're ******* ******** ** * *******: Things *** ********* ***** ***, ** jobs **** ****** *** ******** *** nearing **********. *******, ****** *** [*********] putting *** ********* *** ** *** Q4."
  • "***** *** * ***** *****, *** the ****** ** ***** * **** card. **'* ******** ******** *** ****** to *** ******** ** ***** **** still *** * ********** ******."

Moderately ** ************* *****

**** **% ** ************* **** **** hurt ** ***********, ********** *** ********* as ******** ** ************* ***** ***** the ******** *****.

******* ******** **** *** ******** ** future ****** ** *****, ******* *** difficulty *** ** ****** ** *** worse:

  • "******* *** *********, ********** **** **** a ****** *********, *** ******* ******* projects ** **** *** (**** ****) projects **** *** **** ******** ** put ** ****."
  • "**** ** *** ********* *** ******** to ****** ** ******** *********. **** little *** ********. ****** ********** ** break-fix ** ******* ****."
  • "*** **** ******** ** *** ***** American ********* *** ******** *** *********** 70%+ ** ***** *****. ******** *** being *** ** ********** **** ** pushed *** *-** ******. "
  • "** *** *********** *** ***** **** by *********, **** ******** ****** *** being ********."
  • "********-****** *** ********** **** ***** **** cashflow ******** ***** ** ******** ***** capacity ** ******** ******-**** ******* *** opportunities."
  • "******** *** ***** *******."
  • "******* ******** ******* ********, *** *** pipeline *** *+ ****** ** ******** unclear ** *** *********** *** ***. As ** ** ******* ******* ** exports *** ************* *******, **'** ********* from ****** ****. ****, ********* ********** now **** ******** ***** **, ** worst *****, ********** ******."
  • "**** **** ** *** ******** *** accounts *******."
  • "*** * **** ***** ** *****. We **** ***** ****** * ***** dip ** ***** **** ******** ***** put ** **** ** ******** ***** further ******."
  • "*** ***** *** ******* ** ******** and *********** ***** **** **** ***** offices ****** **** *** ********."
  • "******* ******** ***** ****** *** *-* months. *********** **** ******** ******** *** to ****** ******** *** ***** **********."
  • "** *** *** **** ** ****** to *** *********. ****** *** *** quiet."
  • "***** ** ***** *** *** **** most ********** ******, ***** *** ********."
  • "***-***** *** *********** ******* ***** ***** today **** ** ********* **** ** tomorrow. *********** *** *********** ***/** ******* staff."
  • "** **** **** ***** **** **** (appropriately) **** **** *** *** ******** for ***** ** ** * **** month. ********** ******* ** **** *** new ****** ***** **** *** **** building ****** *** ******* ****** ** start ********* ** ****** ***** ********* ready *** **** *** ******."
  • "***** **** ********* ******* **** ******* in **** ****** *** **** *** weeks ********** *** ***** *********** *** on-site ******* ***** *** *********** *******."
  • "** *****."
  • "****** ******** *******."
  • "*** **** ******** ** *** ********** projects *** ** ***** *** **** expect **** ** ****** **********."
  • "**** ******** *** ** **** ** canceled.
  • "** *** **** ********* *** ***-*******. So ***** ** ***'* **** * revenue ******** ** ******** *******, ** do *** **** ******** ********** *** focus ** *** *****-**** ******** ****. Resulting ** **** **** **** *********** and **** *********** *******."
  • "** *** *************."
  • "*********** ***** ***** (** ***** ******) to ****** ******* ********* **** ************. Then *** ********* **** ****."
  • "** *** ****** ** ****** *** systems ** ****** *** *** *********. On-going ******** ** ******* ****** *** also *********** *** ** ****."
  • "***** *** ** **% ** ****** levels *** ***** *** ********** ** 65% ** ******* *** *** *** June. ****** ***** ** ** **** and * ****** ******* **. *********** are *********** *****. *** ***** ** going **** ***********."
  • "**** ************ **** [******* **], **** manufacturer *****."

About *** **** ** ****** ***********

******* ~**% ******** **** *********** ******* have *** **** * ***** ******* so ***, **** ****** **** *** increase ** **** ********* **** ******** out * **** ** ******:

  • "** ***, ** *****'* **** *** significant ****** ***** **** **** ***** not ******* ** ******* ** **** should ****, *** ** ****** ** see * *** ** *** ****** month(s). **** ****, ** ***'* ***** it'll ** * ***** ***...****** **** some ******* ****."
  • "** *** ******* *** **** ***** lined ** ** ***** *** ***** before *** *********** ******** **** ***********. To **** *****, ***** ******* **** not **** ******** ** ************* ** delays."
  • "********* ** *** * ********- *** last **** ** ***** *** ****, with *** ***** ****** **** * small ****** ** ****** ***. ********** work ***** ** ** ** * standstill. ***** ****** ** *********** ******* work - **********, *****, **** **** home *******. ***** ****** *** *** up ***** ***** ****** *** ** lower ******* *******."
  • "** ************* ***, *******, ** **** had **** ******** ******* ********* *********. The ****** ***** ** ****** ****, however, ** **** ***** ********* ** protect ********* **** ******."
  • "**** *** ****** ***** ***** **** way ***; ******* ****** - ********* communications, ****** & ********* ******* ** particular - *** ****** ****** ** building & ******** ****** ******* ** implement ******* ******** ****** *** ******* lockdown. ** *** ********, ******* *** ability ** **** ****** ******, *** opportunities (*** ****) ** ****** ** productive ******* ******** ** *******. **** we *** ** *** ***** **** of ****, ** **** *** ****** smarter *** * *** **** ********** in *** **** ** **** ****** with *********."
  • "** **** ***** **** ***** ****** for * *** ** *** *****, so ********* ** *** *** *** a ***** ******. ** ***** ** the ****** ** ******* *** *********** from ******** ** ***** *****."

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

*** ~**% ******** ******** *** ****** stronger, ********** ** ****** ********* **** anticipated ***** *********** *** ****** ***** or ** ****** ****** ********* ** empty ********** ** *** **** ****:

  • "********** *** *-** ******** *** ***** fast-tracked, **** ******** ******** *** ********** and/or **** **** ***** ********* ***********. I ** **** ****** ** ********* of *********** **** ******** ****** *****."
  • "****** *** ***** *** ************* ********* due ** *** ********. ****** ** looks **** **** ** *** ********* (especially **** *** **, ***** *** the ***) *** ******* ** ******** the ******** ***** *** *** ** the **********. "
  • "******** **** ****** ****** *** ********** is **** **** **** ***** ****-**** requirements. **** ** ****** ** *** lost ******** ** ***** *********."
  • "** **** **** ** ******* ** panic ****** (***********) **** ******** ******** Infrastructure *** ********** ******** (***** ** make ** * ***** ******* ** our ******* *****) ***** ** * real ******** *** *** ******** ** we **** **** **** *** *** risk *** *** ******** (** **** be ****) *** ****** *** ** a ********** ***** ** **** *** storm *** ******* ******"
  • "** *** * ****** ******** *** home ****** *** *** ****** ********** purpose."
  • "******** ***** ****** ***, ****** *** some ** *** ****** **** ********. These **** ********* ** **** **** accelerated."
  • "******* ******** ******* *** ****** **** ever *** ******** * **** ******. "
  • "***** *** ***** ** ********** ***** because *** ***** **** ** ****** up ******** **** **** ******* ******* and ************ ***** ** ***** *******. The **** ******** ** *** ******* is **** ***** ******** *** ********* businesses. *** ******** ** ***** *** our ******** **** ** ****** *********** in ***** ** ********** ****** *** vertical. "

Thermal ****

** ***** *********** *********** ****** **** ******* *******, *** ****** *** ******* ******* to **** ****** ****** *** *********** as *********** ******* ****** *** *****.

******* *********** ******** ***** *** ********** they ****, ************* **** ****** ****** for ***** *******:

  • "****** ******* ** ******* *********** ***** systems."
  • "**** ***** ** ******* ******."
  • "**** **** ** ******* *******."
  • "******* ****** ****** ** ******* ***"

*** ********** **** **** ***** ****** about ******* ****** *****:

*** ***** ***** ******** ********** **** Coronavirus ** *** ******* ** **** Temperature ****** ******** *** *****. ** currently ***** ***** *** ** ******* to **** **** ** '**** ** a *****' ** *****-***** ********* ** people **** ******** ************. *** ***** caveat ****, *** * ***** *******, is **** *****-** *** ** ********** weeks ****** *** **** ***** ******* manifests ********. ** ****, ***** *** some ********** ***** ** ****** **** had ********** ****** **** ** ********. In **** **** *** **** **** cameras **** *** ***** *** *** well ****** ** *** ******** **** proceed **** * ***** ***** ** safety. *** *** **** ******* * scenario ** ***** ** ************ ******* causes * ***** ******** ** * building **** ******** **** ** *****. In ** *******, *** ******* ******** in *** **** (**** ************ ** distributor, ** ********** **********) ****** **** carefully **** **** **** ******* ** 'Indicators' ** ********** ***** ***** ******** to *** '********* ** ******' ** any ***** ********** ******* *******. *** it ** ********* ** ********, ******* speaking, **** *** ***** ******** ** what ***** ** ********** ************* ** a ****** ***** **** ** ******** as ******** ** *** ********'* ** cloud's ********* ***/***. ** ** *** a *** **** ** ******* * note ** **** ********* **** ********** that **** **** ******* *** * useful ****, *** *** *********.

** ******** *******, *********** ****** **** agree:

  • "**** ******* ****** ****** **** *** private *********."
  • "** **** ** ***** *** ******* to ****, ****** ** ** ******."
  • "[***** **] **** ****** *** ******* but ******** ** ********** ."

Project ********* *** **********

******** ************* ***** *** ******* ***** to ***** ******** ** *** *** virus ******; *** ****** *** ******* of ***-**** ***** **** **** **** integrators *** ***** ******** **** ***** installed:

  • "** **** **** *** **** **** to **** **** **** *** **** week ** *********** *** ***** ******* entry ** ***** ***/** *** ******* themselves ****."
  • "********* *** ******** *********** ** ********, and ******** ** ******** ** **** down, ********** **** ** ********."
  • "*.*. *** ***-**** *** ***** ****/******* to *** *** *********. ********** ********** buildings. **** ******* * **** ** installing *** ******** * ********* **** down ** ********."
  • "************ ***** ***** ******. ********** *********** from ********** ********, ** ******** *** ones. ****** ********* ****** ****** *** and ******* ***** *****. (********* ***********)"
  • "****** *** ****** ******** **** ***** good ******* ***** ***-***** *** ******* off ************* *** **** * *****. Tech ******* ***** **** **** ******* to ***** **% ** ******, ***** could ** *** ** *** *********** being **** **** ***/** *** ********* being ******"
  • "********/ ****-**-**** ****** *** ******** ** closing ****** ** ********** *** **********. Thus, **** ****** ** * ****."
  • "*** ******** *** ********* **** ********* from ***** **** ** *****."
  • "***** ** ***** *** *** **** most ********** ******, ***** *** ********"
  • "***** **** ** *** ****** (*****, France, ****, ********) *** ********** *** closed ****** ***** ********* **** ************, pharmacies, *** *********, *********, ** ******, hospitals *** ******* ********** *** ******* stores. *********, ** ******** *** ***** deployed."

Concerns ***** **** ****

******* ************* ************ ********* **** ******* of **** ******* *** **** ** collection ***** ** **, ***** ********* are ****** ** **** ********* ********:

  • "***, **** **** ****, ***** *********** have ** ** **** ** **** with *** "** **** ** *** paid" ****-*** **** ** *** ******* process. **** ******* *** ** *** figuring ******* **** ** *** ************ will **** **** *** ********* ******* will ** ****** *******. **** * risk ***********, * ******* ** **** seems **** * **** *** *** turn **** * ********** ***** **** the ****. ** *** ******* ******* with ****** ********* ** *********** ****** terms ** ***** **** ** **** back ** **** **** ****."
  • "* *** **** **** ******* **** be ********. ** ** *** ***** to **** *****, ** ** ******* to *** *** ****** ******* ****** to **** ****** ******. *** ******** of *** **** **** **** **** likely **** **** ** ******* *** the ****** ** ********/*********. ** * result, ** *** *** *** *** changes **** ******* ** ** ***** summer, **** ** ****** **** **** opened **** **."
  • "******* ********"
  • "******* ***** ********: - ***** ** projects ** *** ******* - ***** of ******** **** *** ******* ( system ********** *** ************ ) - no ************* ********** **** *** ******* that **** ** ********* ** **** things ****."

*******

** ***** **** *** **** ************* who ****** ********** ** ****** *** them. ***** ***** ******** ** *** channel *** **** ******** **** ********* from ***** *******, ** *** ** this *********, ************* *** ****** ** be ******** ******** ** ****.

Comments (17)

Do you think the startups or the legacy leaders that were recapitalized in the last year or so will make it through this? Do you think this will force under-performing manufacturers out of the market?

Agree
Disagree
Informative
Unhelpful
Funny: 1

Drew, Great questions. I do expect that companies that are largely VC funded will have a hard time making it out of this unscathed. The principles from the VC side will be there to protect what is left of their investment as sales decrease. That will result in layoffs and an overall halt to non-essential spending. Most will not have the appetite to continue to spend money with little return for a long period of time. These relationships are built on quarterly evaluations and without acceptable results there will certainly be some uncomfortable conversations.

Agree: 3
Disagree
Informative
Unhelpful
Funny

Independent MR rep here. Oddly, 2 market segments are doing well for me. The first is multi-family. I have had some properties that I had quoted with integrators two years ago they have just closed. These properties had no working entry panels for two years and they finally replaced them. The other is the healthcare market. I have had numerous calls from both A&E's and integrators on cameras, access, etc for hospitals. I have talked to some reps at Allegion and from what they are saying and I am seeing the security in hospitals will forever change.

Agree
Disagree
Informative: 1
Unhelpful
Funny

I have talked to some reps at Allegion and from what they are saying and I am seeing the security in hospitals will forever change.

Which hospital areas/zones do you see adding or tightening security?

Agree
Disagree
Informative
Unhelpful
Funny

First, free access throughout a hospital will come to an end even after they are open to visitors. Second, it is more on the type of doors and door hardware side. There will be more automatic doors and more hands free entry. I was shocked to hear that a hospital in Missouri had numerous fingerprint readers which were all promptly disconnected.

Agree
Disagree
Informative: 3
Unhelpful
Funny

I have published an article on Linkedin here on a similar subject some readers might find interesting - Robin's Rant – Help protect our SMEs!!

Agree: 1
Disagree
Informative: 1
Unhelpful: 1
Funny

Regarding item#2 in Robin's Rant....So as a Global Enterprise End User I should sacrifice things so I can help an independant out? What about things like good cyber hygiene/practices, negotiated MSA's for products for their liability and all of that other cost consuming stuff that comes with introducing another product (sourced, tested, maintained/patched, managed). Where is the trade off, just help the independent ride out tough times? Sorry that does not work in my domain

2. Think seriously about those components on a system you could switch from a global corporate to a small independent, these orders will be invaluable at the other end.

Agree
Disagree
Informative
Unhelpful
Funny

In my opinion:

Solvent global manufacturers that cater to the general industry and sell through a variety of channels are better positioned to weather the storm: (Hanwha, Axis, Bosch, Vivotek)

Manufacturers that sell products into niche markets or verticals will either do really well (healthcare, critical infrastructure) or very poorly (hospitality, sporting events).

Manufacturers with limited channel exposure might suffer more than those mentioned above (Avigilon, Verkada)

Anyone who had previous financial\reputation issues will be struggling to survive (Arecont, Panasonic, Pelco)

Manufacturers that manufacture in North America might have huge supply issues now (Avigilon)

Agree: 1
Disagree: 3
Informative: 2
Unhelpful
Funny

We are the Australian distributor for Avigilon and we have not seen any delays in shipment.

Agree
Disagree
Informative
Unhelpful
Funny

I would say that this was all unavoidable. In the business that I am in, casinos and integrated resorts, almost every operator worldwide is currently closed. Or, at best, operating at absolute skeleton levels. It is very unlikely that there will be much in the way of capital [or even operational] expenditure for the foreseeable future.

Agree
Disagree
Informative: 1
Unhelpful
Funny

I'm betting Honeywell was no comment on this one... What a disaster they are right now.

Agree
Disagree
Informative
Unhelpful
Funny

Notifier products are showing 7+ weeks delay on NFS2-3030 products (CPU for most large installs) up from a few days. Impacting several government jobs now.

Agree
Disagree
Informative
Unhelpful
Funny

Notifier has once again increased their prices twice in the past we months. 8% tomorrow and 6% a very short time ago. I really don't believe that manufacturers have to increase their prices this much. This is all speculative and also greedy!!

Agree
Disagree
Informative
Unhelpful
Funny

IC Component shortage is real..We today were notified that a flash memory chip that we use on our CPU boards has been discontinued. We found a direct replacement but with the current market conditions we are being expected to pay a higher rate. Normally this would be a $8 chip x 4 per board = $32 per board...Now we are looking at $18 per chip resulting in a $50 increase in my raw manufacturing cost..What should I do, increase the cost to the dealer or take the cut in margin....These are things that I'm facing all to often these days.

Agree: 1
Disagree
Informative
Unhelpful
Funny

And how long to rework the board or update software? And what is the lead time to get the new chips. I am hearing that some networking gear is on a 3+ months lead time with no local stock.

Agree
Disagree
Informative
Unhelpful
Funny

We can re-layout a board in about a week. It would take some prototype development and testing before we hit production and that could take 30-45 days. Software would be minor adjustments to flash and could take a week or so..In a redesign, we would use chips that are readily available in the design and would buy in advance to maintain the ability to produce.

Agree
Disagree
Informative
Unhelpful
Funny

FWIW -

Steel Roof Trusses are 52 weeks out

Precast Wall Panles are 52 weeks out

Stainless Steel Piping/Conduit is going up 50% this coming week.

HP Network Switches - 40-52 weeks out

Agree
Disagree
Informative
Unhelpful
Funny
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports