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Is the Security Industry Really Recession-Proof?
Eighty percent of surveyed security dealers say businesses haven’t been affected.
The security industry was vibrant at the Northeast Security & Systems Contractors Expo in Marlborough, Mass.
The old adage is that security business isn't affected by recessions.
But is that trend holding true during the current economic downturn, which has taken its toll on the custom electronics installation industry as a whole? CE pros suffered a 9.1 percent revenue decline in 2008, according to the CE Pro Readership Study.
The numbers don't seem to tell the entire story.
A recent Parks Associates study shows that home security account attrition has only been nominally affected by the recession with a 4 percent to 8 percent increase in residential account cancellations.
The security industry, meanwhile, appears to be focusing on hiring as opposed to downsizing. The Central Station Alarm Association and the National Burglar & Fire Alarm Association recently launched an online job recruiting source, the Security Industry Recruiting Center.
A look at CE Pro 100 companies with strong security focuses, however, shows that most saw drops in 2008 revenue. (See chart below.)
CE Pro tried to find out more by talking to security dealers at the Northeast Security & Systems Contractors Expo in Marlborough, Mass. We asked: Security is traditionally regarded as a recession-proof industry. Has this held true for your company during the current recession?
Eighty percent said "yes." Their positive assessments of the security industry were reinforced by their surroundings. The tradeshow was lively. Manufacturers including Honeywell, Russound and ADI had particularly crowded booths.
See security dealers' takes on the recession.
But is that trend holding true during the current economic downturn, which has taken its toll on the custom electronics installation industry as a whole? CE pros suffered a 9.1 percent revenue decline in 2008, according to the CE Pro Readership Study.
The numbers don't seem to tell the entire story.
A recent Parks Associates study shows that home security account attrition has only been nominally affected by the recession with a 4 percent to 8 percent increase in residential account cancellations.
The security industry, meanwhile, appears to be focusing on hiring as opposed to downsizing. The Central Station Alarm Association and the National Burglar & Fire Alarm Association recently launched an online job recruiting source, the Security Industry Recruiting Center.
A look at CE Pro 100 companies with strong security focuses, however, shows that most saw drops in 2008 revenue. (See chart below.)
CE Pro tried to find out more by talking to security dealers at the Northeast Security & Systems Contractors Expo in Marlborough, Mass. We asked: Security is traditionally regarded as a recession-proof industry. Has this held true for your company during the current recession?
Eighty percent said "yes." Their positive assessments of the security industry were reinforced by their surroundings. The tradeshow was lively. Manufacturers including Honeywell, Russound and ADI had particularly crowded booths.
See security dealers' takes on the recession.
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About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.
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