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

  • ASIS International and SIA Release “Complexities in the Global Security Market: 2024 Through 2026”

    ASIS International and the Security Industry Association (SIA) – the leading security associations for the security industry – have released ”Complexities in the Global Security Market: 2024 Through 2026”, a new research report that provides insights into the equipment, technologies, and employment of the global security industry, including regional market breakouts. SIA and ASIS partnered with global analytics and advisory firm Omdia to complete the research. Read Now

  • President Biden Issues Executive Order to Bolster U.S Port Cybersecurity

    On Wednesday, President Biden issued an Executive Order to bolster the security of the nation’s ports, alongside a series of additional actions that will strengthen maritime cybersecurity and more Read Now

  • Report: 15 Percent of All Emails Sent in 2023 Were Malicious

    VIPRE Security Group recently released its report titled “Email Security in 2024: An Expert Look at Email-Based Threats”. The 2024 predictions for email security in this report are based on an analysis of over 7 billion emails processed by VIPRE worldwide during 2023. This equates to almost one email for everyone on the planet. Of those, roughly 1 billion (or 15%) were malicious. Read Now

  • ASIS Announces ANSI-Approved Cannabis Security Standard

    ASIS International, a leading authority in security standards and guidelines, proudly announces the release of a pioneering American National Standards Institute (ANSI)-approved standard dedicated to cannabis security. This best-in-class standard, meticulously developed by industry experts, sets a new benchmark by providing comprehensive requirements and guidance for the design, implementation, monitoring, evaluation, and maintenance of a cannabis security program. Read Now

Featured Cybersecurity

Whitepapers

New Products

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis. 3

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols. 3

  • 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. 3