coronavirus illustration

Joint Survey From Security Organizations Reveals Pandemic's Impact

Industry associations keeping members informed about how the coronavirus crisis is affecting security businesses.

In the last few weeks, the Electronic Security Association (ESA), the Security Industry Association (SIA) and The Monitoring Association (TMA) conducted a nationwide survey of members in order to better gauge the impact COVID-19 has had on electronic security and life safety businesses. This survey confirms the electronic security and life safety industry is being negatively impacted despite its role as an essential service in our economy.

Quick Facts

A 21-30 percent loss of revenue is the median reported for all respondents.

Less than 4 percent of respondents were denied the “essential service” label in their jurisdictions.

Thirty-one to 40 percent denial of access to job sites for service/testing/inspections/maintenance was the median for residential integrators, compared to 21-30 percent for commercial integrators.

A cross-section off the industry represented itself in the responses as follows: 

  • Residential Integration: 27%
  • Commercial Integration: 49%
  • Monitoring Center: 11%
  • Manufacturer: 41%
  • Distributor: 11%
  • Manufacturer Representative: 5.7%
  • Individual/Specifier/Consultant: 19%
  • Other Security Solution Provider: 19%

Impact on the Industry Overall

Across the country and in every vertical, our industry is experiencing negative effects on revenues from state and local executive orders for residents to practice social distancing. Survey respondents reported a median loss of revenue between 21 and 30 percent due to the executive orders. More than 60 percent of respondents reported losing this much or more of their revenue.

While most companies are experiencing declining revenues, some are impacted more than others; about one in five respondents reported a loss of more than half their company’s revenue.

Although revenues have dropped, most companies are not hindered from doing business due to “shelter-in-place” and business closure orders. Less than 4 percent of survey respondents reported that their businesses were denied access as an “essential service” in their jurisdictions.

More than 56 percent of respondents reported having to reduce hours or lay off less than 10 percent of their employees. On the other end of the scale, 13 percent of all respondents were forced to reduce hours or furlough or lay off more than 90 percent of their employees.

Less than 4 percent of survey respondents reported that their businesses were denied access as an “essential service” in their jurisdictions.

Impact on Residential and Commercial Integrators

The median reported revenue loss due to COVID-19 for residential and commercial integrators was 21-30 percent. The majority of integrators – more than 70 percent – lost less than half of their revenue.

The denial of access seems to contribute to income loss for most integrators, as more than 80 percent report some level of interrupted access.

Some business owners might wonder which verticals are faring better than others, as many companies have already pivoted into the commercial space. According to the survey results, the differences are significant but not as drastic as you might expect. The median loss of revenue reported by residential integrators was 31-40 percent, while the median loss of revenue reported by commercial integrators was 21-30 percent.

The reported levels for denial of access to job sites for service/testing/inspections/maintenance in each segment correlate with these figures, with residential integrators reporting a median denial rate of 31-40 percent, while the median denial rate for commercial integrators was 21-30 percent.

Survey responses confirm the observation many have already made: gaining access to residential customers’ homes has been more difficult during this time than access to commercial properties, many of which are unoccupied due to social distancing measures. This could contribute to lower demand for residential services during the pandemic.

When asked how industry associations could continue to help businesses weather this storm, respondents most frequently expressed their desire for opportunities to connect and continued updates on the latest information related to winning business strategies, economic assistance and industry trends.

Featured

  • NOLA: The Crescent City

    Twenty years later we finds ourselves in New Orleans. Twenty years ago the aftermath of Hurricane Katrina forced exhibitors and attendees to look elsewhere for tradeshow floor space. Read Now

    • Industry Events
    • GSX
  • Nothing Artificial About this Intelligence

    I have been looking forward to this year’s GSX show in New Orleans, the Cresent City, or if you prefer The Big Easy. It seems like quite a while since we’ve been here. Twenty years ago, ASIS, as it was known then was literally washed out of the city by someone known as Katrina. It is a good thing to come back to NOLA. Read Now

  • From Monitors to Mission Control

    Security Operations Centers (SOC) were once defined by rows of static monitors, each displaying a single feed with operators quietly watching for issues. That model has become obsolete. Incidents evolve too quickly, data comes from multiple locations, and decisions must be made in seconds—not minutes. Read Now

  • New Gas Monkey Garage Venue Uses AI-Enhanced Video Technology

    Gas Monkey Garage, the automotive custom shop and entertainment brand founded by Richard Rawlings of Fast N’ Loud TV fame, has opened a vibrant new restaurant and bar in South Dakota, equipped with advanced, AI-enhanced video tech from IDIS Americas. Read Now

  • Data Driven, Proactive Response

    As cities face rising demands for smarter policing and faster emergency response, Real Time Crime Centers (RTCCs) are emerging as essential hubs for data-driven public safety. In this interview, two experts with deep field experience — Ross Bourgeois of New Orleans and Dean Cunningham of Axis Communications — draw on decades of operational, leadership and technology expertise to share how RTCCs are transforming public safety through innovation, interagency collaboration and a relentless focus on community impact. Read Now

New Products

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge.

  • Luma x20

    Luma x20

    Snap One has announced its popular Luma x20 family of surveillance products now offers even greater security and privacy for home and business owners across the globe by giving them full control over integrators’ system access to view live and recorded video. According to Snap One Product Manager Derek Webb, the new “customer handoff” feature provides enhanced user control after initial installation, allowing the owners to have total privacy while also making it easy to reinstate integrator access when maintenance or assistance is required. This new feature is now available to all Luma x20 users globally. “The Luma x20 family of surveillance solutions provides excellent image and audio capture, and with the new customer handoff feature, it now offers absolute privacy for camera feeds and recordings,” Webb said. “With notifications and integrator access controlled through the powerful OvrC remote system management platform, it’s easy for integrators to give their clients full control of their footage and then to get temporary access from the client for any troubleshooting needs.”

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area.