How is the recession affecting the security industry?

I used to be quite fond of saying that the security industry was relatively recession proof. My rationale was that when businesses have plenty of money they don’t mind spending it on security and when they don’t have plenty of money they must spend it on security just to keep what they have. I’m not sure I am going to say that any more.

Several electronic security equipment manufacturing firms that I am familiar with have had record low sales over the last quarter. Until about November of last year I hadn’t heard much in the way of negative news from these manufacturers, but then it seems that the bottom just dropped out. More correctly I think is that they never recovered from the usual holiday slow down that manufacturers often encounter.

I decided to run my own unscientific survey to see if I could identify any trends or patterns. First I contacted all the Southern California security systems service providers that I have close relationships with and asked them how their business was getting along in this economical climate. By far the majority responded in a positive manner and cited examples of how and why their business was not being hurt by the economical down turn. This encouraged me so I decided to expand my survey. I contacted all of the service providers I have relationships with in the Colorado market. Wouldn’t you guess, the response was almost exactly opposite. Each and every one told me tales of how their business had come to a standstill. They were just hoping against hope that things would turn around soon so they can hold on. Many had decided to skip this years ISC West Conference to save the expense of travel and the cost of being out of the office.

Admittedly, my survey was very anecdotal and subjective. There was a period of about one month between my Southern California survey and my Colorado survey. This may account for some of the difference in response. Also, one region may very well be suffering more than another.

I would be very interested to hear from you. What part of the security industry do you work in and where geographically are you located? How is, what is being called the biggest economical slow down since the great depression, affecting your business? Are you hopeful or just hunkered down for the long haul?

Let us know how you’re doing.

Thanks
Steve Bowcut, CPP