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

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

  • Survey: 48 Percent of Worshippers Feel Less Safe Attending In-Person Services

    Almost half (48%) of those who attend religious services say they feel less safe attending in-person due to rising acts of violence at places of worship. In fact, 39% report these safety concerns have led them to change how often they attend in-person services, according to new research from Verkada conducted online by The Harris Poll among 1,123 U.S. adults who attend a religious service or event at least once a month. Read Now

  • AI Used as Part of Sophisticated Espionage Campaign

    A cybersecurity inflection point has been reached in which AI models has become genuinely useful in cybersecurity operation. But to no surprise, they can used for both good works and ill will. Systemic evaluations show cyber capabilities double in six months, and they have been tracking real-world cyberattacks showing how malicious actors were using AI capabilities. These capabilities were predicted and are expected to evolve, but what stood out for researchers was how quickly they have done so, at scale. Read Now

  • Why the Future of Video Security Is Happening Outside the Cloud

    For years, the cloud has captivated the physical security industry. And for good reasons. Remote access, elastic scalability and simplified maintenance reshaped how we think about deploying and managing systems. Read Now

Most   Popular

New Products

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • 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.