Norbain CEO - Recession Forcing Radical Changes

Author: John Honovich, Published on Dec 24, 2008

In the best security executive interview I have ever seen, Alun John, the CEO of leading UK manufacturer, Norbain, examines the severe impact of the recession on the industry.

I strongly encourage you to read the extensive interview in its entirety.

Focused in the UK, Norbain is a very large manufacturer/distributor (over $175M USD revenue). By comparison: For US readers, Norbain is equivalent in reach to Pelco and Northern Video combined. Or for Asian readers, Norbain is similar in size and power to Hikvision.

Here are some key quotes:

  • "The idea that any industry is not going to be affected by the world crisis is stupid."
  • "We're seeing a lot of downward pressures for people to get things cheaper."
  • "We are aggressively launching a new low cost product range called Xeno"
  • "We're scaling back our plans for the future and our expectations for the market."
  • "The mid market for analogue CCTV I do not see changing rapidly"
  • On IP cameras: "The reality is there's going be a lot less built to stick [IP cameras] into in two or three years time."

Again, I strongly encourage you to read the extensive interview as it is an excellent and thorough examination of the state of the security industry.

The Industry Needs His Honesty

I am thrilled that a CEO has publicly delivered this truth. In a world where most CEOs hide and distort, this is what we need now - a frank and honest assesment of what is happening.

It's Not Just the Traditional Players

Amongst the IP video providers, the immediate reaction is that this is an issue simply for the legacy CCTV players.

I disagree and think the entire industry is being affected. Notice last week, Axis' stunning admission of a weakening market.

The High End and Expensive Products Are Most at Risk

Economically, this is obvious. However, our industry's focus on IP is making us lose sight of this fundamental issue. With far less new construction, IP growth has to slow significantly.

Scale Back and Offer Lower Cost Solutions

This is in line with what I have been recommending in the Industry Guide. Everyone has to accept this new world and focus on providing greater value at lower cost.  Delaying or ignoring this will only cause more problems.

It's too bad this interview was released on Christmas Eve, as most people will not see it. However, do share and let's discuss.

1 report cite this report:

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