Good news, bad news: what’s better and what’s worse in the security industry in 2022
Seeking to weather another tough year, experts offer their thoughts on the good (consumer awareness, interoperability) and the bad (pandemic issues, fuel costs).
As part of ISS‘s 2022 Security Industry Forecast, we spoke to more than two dozen experts to get their thoughts on what 2021 has in store for the security industry. Here, 14 of them also share what they think are the best and worst in the industry.
Here’s what they had to say…
Pierre Giacalone | Giacalone Associates
WELL: Consumer awareness and education continue to grow. This leads to a more informed and engaged subscriber while expanding the market to include new channels of educated prospects who may not have considered a system in the past.
WRONG: Labor! Companies that increase compensation for market entry will likely experience pressure on their margins. To make matters worse, supply chain shortages will likely last at least another year.
Mitch Reitman | Reitman Group
WELL: As we emerge from the pandemic, people will patronize businesses, leading to an increased need for business systems. Since they will no longer be locked up in their homes, residential systems will also be needed.
WRONG: Wage inflation and a tight labor force could wreak havoc on small freelancers.
Clint Choate | SnapOne
WELL: Interoperability and cloud services are more reliable. Additionally, the increased demand for connectivity and the wealth cycle generated over the past 12-18 months will drive homeowners to spend to improve and protect their homes and families.
WRONG: Supply chain and inflation. The demand has led to higher costs combined with increased production costs. With labor shortages, we have to pay employees more. These higher costs are then passed on to the consumer.
Richard Brent | Louroe
WELL: The industry talks to each other more than ever. We are seeing a collaboration that brings innovative new ideas to the table.
WRONG: Not having the quality and experiential value to lead the industry is a sure way to fall behind. The rise of cheap manufacturing has undoubtedly hurt the industry.
Morgan Hertel | Quick response
WELL: The level of security need and awareness has never been higher before, if you can focus and enforce good customer service it would be hard to fail.
WRONG: pandemic issues; hiring is much more difficult than before; supply chain woes.
John Mac | Imperial Capital
WELL: Increased post-pandemic awareness of security solutions across industries and interest in room control solutions. In addition, the entry price is falling, opening up opportunities in new segments.
WRONG: Supply chain issues can linger longer than expected and even good planning cannot mitigate the impact. Inflationary pressure could dampen security system upgrades or reduce end-user spending.
Aaron Saks | Hanwa
WELL: Most people now recognize the importance of cybersecurity. Additionally, AI-based analytics have fundamentally changed the value proposition of security systems with operational insights beyond anything imaginable a few years ago. High megapixel cameras with incredible imaging are more affordable.
WRONG: A price race to the bottom in some markets. We are also seeing fallout due to the NDAA and FCC ban. Some of those customers who bought on price alone are in a position where they will have to buy twice. Additionally, supply chain effects have ramifications.
Fredrick Nilsson | Axis
WELL: More innovative, sophisticated and flexible technologies offer more creative and efficient solutions. And they are multi-dimensional: they address security challenges, provide business intelligence and improve the customer experience. And today’s integrators and security practitioners have better online tools to help with project planning, design, installation, and offer remote maintenance and cyber hardening.
WRONG: The pandemic-induced virtual environment has hampered us, preventing industry professionals from accessing important meetings, essential on-site work and key events at trade shows. Similarly, our highly technical industry requires hands-on, in-person and often on-the-job training.
Kirk McDowell | MacGuard
WELL: The industry is resilient. The laws of nature have once again come true. The weak sold at a steep discount and the strong got stronger. If you’ve made it so far, you can survive 2022 and beyond.
WRONG: The industry has been so focused on sunset that dealerships haven’t focused on what their business should be in 2022. Businesses need to learn from the pandemic to reconnect with consumers and sell services to added value.
Eddie Reynolds | illuminated
WELL: People started thinking outside the box. For example, the hard realization of not leaving our fate to offshore manufacturing has caused a resurgence of solutions and ideas within our community. And remote work has allowed for a better work/life balance.
WRONG: The creation of remote/virtual businesses is a barrier to forming new trusted partnerships. As we continue to implement social distancing measures to keep us safe, we are losing an important human connection in person.
John Brady | ORR
WELL: We weathered the impact of the early onset of the pandemic well. Once again, the industry has confirmed the “rigidity” of our services to the residential and commercial markets in very difficult times. New vendors continue to enter the market.
WRONG: Fuel costs won’t return to 2020 levels any time soon, and talent will become harder to find and train.
Andrew Elvish | Genetec
WELL: The government has taken long-needed steps to ban untrusted devices to keep infrastructure technology safe. Additionally, with the rapid changes created by digital transformation, the true value of unified security solutions is underscored.
WRONG: End users don’t ask enough questions about the risks of closed proprietary systems. This “hostage as a service” trend can be very dangerous for small end users who find themselves locked into a system that they will have to tear down and replace.
Brian Wiser | Bosch
WELL: Video analytics improves with AI capabilities, and new AIoT software supports informed decision-making by consolidating and augmenting data from multiple cameras. Users can establish a decision center using software, giving them a single, clear dashboard for assessment.
WRONG: The pandemic has created the fear of being around other people. Adoption of new technologies often depends on integrators and end users seeing the technology in action, which could slow down acceptance and innovation.
George DeMarco | DECO
WELL: The industry remains resilient, proving that security services are important to end users, whether individuals, businesses or government agencies. Additionally, consumers and businesses now have a higher degree of interaction and engagement with our technologies and services.
WRONG: Due to supply chain and labor shortages, dealers and integrators will experience a profit squeeze unless price increases for products and services are implemented. And as cities and municipalities implement or consider budget cuts for police departments, the fallout may result in more limited alarm response capacity.