44 July 2018 SDM EXCLUSIVE In the security systems integration industry, while factors such as a great economy and stimulation of buyers by continued security threats are contributing to growth, it’s the morphing of security technology into broader business applications that is starting to drive noticeable demand. By Laura Stepanek, SDM Editor Top Systems Integrators were asked, “How do you expect revenues in 2018 to compare with revenues in 2017?” Integrators Predict Stupendous Performance for 2018 *percentage of Top Systems Integrators indicating each answer; based on 94 responses Source: SDM Top Systems Integrators Report, July 2018 5% Stay the same 1% Decrease Increase 94 %* More than nine of 10 Top Systems Integrators (94 percent) expect their 2018 revenues to exceed 2017’s, which is even higher than the prior year’s 86 percent of integrators who thought the same. S ecurity integrators are benefiting from vital technology innovations that are far greater than just simple upgrades. One is the continu- ing gradual shift among end users to cloud- based platforms, which continues to boost new sales. But a more significant transformation is the evolution of security systems into business intelligence solu- tions — and that is vastly changing the function that security integrators perform for their clients and creat- ing new business opportunities for integrators. The 2018 Top Systems Integrators Report proves this trend. The report ranks security integrator compa- nies by their North American systems integration rev- enue, which includes solutions such as design, project management, product, installation, programming, start-up, and training sold directly to an end-user customer or through a tier of contractors. Total North American systems integration revenue — which is different from total annual gross revenue — reached $3.31 billion in 2017. A comparison between the top 100 companies ranked this year and the top 100 ranked last year shows a 48 percent decrease in systems integration revenue. However, this is attributed to the fact that several of A Security TRANSFORMATION Is Underway
Transcript
44 July 2018
SDM EXCLUSIVE
In the security systems integration industry, while factors such as a great economy and stimulation of buyers by continued security threats are contributing to growth, it’s the morphing of security technology into broader business applications that is starting to drive noticeable demand.By Laura Stepanek, SDM Editor
Top Systems Integrators were asked, “How do you expect revenues in 2018 to compare with revenues in 2017?”
Integrators Predict Stupendous Performance for 2018
*percentage of Top Systems Integrators indicating each answer; based on 94 responses
Source: SDM Top Systems Integrators Report, July 2018
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More than nine of 10 Top Systems Integrators (94 percent) expect their 2018 revenues to exceed 2017’s, which is even higher than the prior year’s 86 percent of integrators who thought the same.
Security integrators are benefiting from vital technology innovations that are far greater than just simple upgrades. One is the continu-ing gradual shift among end users to cloud-
based platforms, which continues to boost new sales. But a more significant transformation is the evolution of security systems into business intelligence solu-tions — and that is vastly changing the function that security integrators perform for their clients and creat-ing new business opportunities for integrators.
The 2018 Top Systems Integrators Report proves this trend. The report ranks security integrator compa-nies by their North American systems integration rev-enue, which includes solutions such as design, project management, product, installation, programming, start-up, and training sold directly to an end-user customer or through a tier of contractors. Total North American systems integration revenue — which is different from total annual gross revenue — reached $3.31 billion in 2017.
A comparison between the top 100 companies ranked this year and the top 100 ranked last year shows a 48 percent decrease in systems integration revenue. However, this is attributed to the fact that several of
$31,957,762 775 $2,878,000 $195 industrial, utilities, entertainment
110 3
20 22 Security CorporationNovi, Mich.
$29,819,818 1,460 na na utilities, financial, education
113 2
e = SDM estimate. na = not available. Abbreviations to markets: airport = airports; corp = corporate office space; correctional = correctional; education = education/campuses; entertainment = entertainment/sports venues; financial = financial/banking; gaming = casinos/gaming; govt = government; health = healthcare; hotel = hotels/hospitality; industrial = industrial; law = law enforcement; retail = retail/restaurants; transport = transportation/distribution; utilities = utilities/critical infrastructure.
e e e
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n No. 1 – Integrated and assimilated seven unique acquisitions in 2017. SDM’s 2007 and 2012 Systems Integrator of the Year. n No. 3 – Held ribbon-cutting ceremony and open house in April 2017, for new headquarters in Uniontown, Ohio, which houses company’s monitoring and business operations center. SDM’s 2011 Systems Integrator of the Year as Diebold Security, acquired later by Securitas ES. n No. 4 – Acquired ATCi in Florida, DPSI in California, and TTM in Maryland. These acquisitions are part of company’s four-part corporate strategy of organic growth, mergers and acquisitions, national accounts, and upsell/cross-sells. (Initial Electronics, eventually acquired by Red Hawk Fire & Security, was SDM’s 2006 Systems Integrator of the Year.) n No. 5 – Acquired Urban Alarm to expand into high-end residential security; hit highest level of RMR to date. SDM’s 2015 Systems Integrator of the Year. n No. 6 – Integrated National Accounts Division with Industry Retail Group, company’s acquired managed services business, under one brand. n No. 7 – SDM’s 2013 Systems Integrator of the Year (and 2008 as Adesta LLC). n No. 8 – SDM’s 2016 Systems Integrator of the Year. n No. 9 – SDM’s 2004 Systems Integrator of the Year. n No. 10 – Deployed Exero, a cloud- based security device management and health management software, in order to provide predictive analytics to company’s new and existing customers. SDM’s 2014 Systems Integrator of the Year. n No. 12 – In 2017, hit highest revenue in company history. n No. 13 – Increased service and project delivery experience through increased staffing and leveraging mobile platform. n No. 14 – Re-branded, including a name change, to allow company to bring all offices and disciplines under one brand name. n No. 16 – Received the Axis Communications Federal VAR of the Year and Milestone Integration of the Year. n No. 17 – Company introduced another layer of management within its sales and service functions to ensure it provides the best service and solutions to customers. Continued to invest in training, including sending three managers to an executive development program.
e = SDM estimate. na = not available. Abbreviations to markets: airport = airports; corp = corporate office space; correctional = correctional; education = education/campuses; entertainment = entertainment/sports venues; financial = financial/banking; gaming = casinos/gaming; govt = government; health = healthcare; hotel = hotels/hospitality; industrial = industrial; law = law enforcement; retail = retail/restaurants; transport = transportation/distribution; utilities = utilities/critical infrastructure.
n No. 22 – Opened a Ft. Smith, Ark., office (company’s sixth location) and completed a software conversion within accounting department. n No. 23 – Over 23 percent growth in revenues; broke the 100-employee mark. n No. 24 – 2017 marked company’s 25th anniversary and a record year fueled by customer loyalty and staff performance. n No. 26 – Completed a recapi-talization in 2017, raising substantial growth capital. Completed a major expansion of company’s Special Purpose Interactive Video Monitoring Center in Plano, Texas, more than tripling customer capacity and integrating new video and two-way audio capabilities. n No. 28 – Grew over $100,000 of RMR organically. n No. 29 – Major retrofit and upgrade for an 86-story office building in Chicago and a major security installation for a professional sports team in Chicago.n No. 30 – Expanded into five new states, opened three new branch offices, acquired one company, and developed a wireless video surveillance product for the transportation industry. n No. 31 – Renewed all large-scale maintenance agreements for multiple years. n No. 32 – Focus on commercial market led to subsequent growth, some of which was driven by company’s expansion into engineered fire systems.
The SDM 2018 Top Systems Integrators Report ranks North American compa-nies by their security systems integra-tion revenue. This ranking is based on data provided to or, in a few cases, estimated by SDM. Ranked companies were asked to submit either an audited or reviewed financial statement, or a copy of their income tax return showing total gross receipts for the stated period. The vast majority of the firms ranked are privately held.
The main table, which begins on page 45, ranks 100 companies by their North American revenue in 2017 from their security system integration projects. Integration includes solutions such as design, project management, product, installation, programming, start-up, training, and time-and-materials-based service sold directly to an end-user cus-tomer or through a tier of contractors. This includes revenue related to secu-rity, such as: access control, ID/badging,
video surveillance/analytics, intrusion alarms, perimeter security, electronic gate entry, intercom/communications, fire protection, IT/networks, etc. It does not include recurring monthly revenue (RMR), as that is counted toward rank-ing on the SDM 100 (www.SDMmag.com/SDM100Report).
Note: an e following the figure indi-cates it is an SDM estimate.
To find a company by name, use the alphabetical index on page 60.
About the SDM Top Systems Integrators Report
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the largest systems integrators among the top 25 that were ranked in 2017 are not ranked in 2018, such as Johnson Controls (due to lack of publicly available information on its systems integration business), Kratos Public Safety & Security Solu-tions Inc. (acquired by Securitas ES), and others.
(See “Dashboard: Top Systems Inte-grators Totals” at right for greater detail on this). Among compa-nies for which a year-to-year com-parison could be made, security system integration revenue actually increased 10.9 percent in 2017 — a significant increase, although still three percent-age points below 2016’s 14 percent growth.
“The market remained relative-ly consistent in all areas, but there was an obvious uptick in custom-ers’ desire for an integrated securi-ty solutions model where technology integrates into other asset-pro-tection related services. Physical and operational security situation-
al awareness and harnessing the intelligence for predictive analysis is becoming a key expecta-tion, as we have the ability to influence more of our clients’ portfolio,” describes Allied Universal Security Systems, ranked No. 11, of the business climate last year.
No. 26, Interface Security Systems Holdings Inc., emphasizes that “commercial customers, particularly larger national accounts, are focused on upgrading to new IP-based systems and adding video analytics and other business optimization
solutions to their stores.”No. 1-ranked Convergint Technologies also
notes the transformation of security technology into business intelligence solutions. “The market for security systems sales and integrated systems continued its strong growth in 2017. Video sales continues to dominate as customers begin to look beyond traditional security applications and start
Top 3 Sectors: Office Space, Education, Healthcare
Top Systems Integrators were asked to rank the sectors that provided the most significant portion of their 2017 revenue.
2016 2017
1. Corporate office space
1. Corporate office space
2. Education/ campus
2. Education/ campus
3. Healthcare 3. Healthcare
4. Government 4. Government
5. Industrial 5. Industrial
6. Retail/restaurant 6. Retail/restaurant
7. Utilities/critical infrastructure
7. Financial/ banking
8. Financial/ banking
8. Utilities/critical infrastructure
9. Hotel/hospitality 9. Hotel/hospitality
10. Transportation/distribution
10. Transportation/ distribution
Source: SDM Top Systems Integrators Report, July 2018
These top 10 market sectors provided the most significant portion of revenues to security systems integrators in 2017 — and the top 10 list is nearly the same year-over-year. For the past several years, corporate/property management, education, and healthcare have steadfastly been among the top market sectors for integrators.
2016 2017
Total North American systems integration revenue
$6.42 billion
$3.31 billion
New systems started 120,099 104,788
Total full-time employed
52,957 38,322
Business locations operated
1,688 1,145
Dashboard: Top Systems Integrators Totals
Source: SDM Top Systems Integrators Report, July 2018
Total North American revenue from systems integration for the 100 largest integrators reached $3.31 billion in 2017 from solutions such as design, project management, product, installation, programming, start-up, and training sold directly to an end-user customer or through a tier of contractors. It does not include recurring revenue from services and monitoring, as integrators were asked to report that amount separately in order to be ranked on the SDM 100, a report based on RMR in the security industry. A comparison between the top 100 companies ranked this year and the top 100 ranked in 2017 shows a 48 percent decrease in systems integration revenue. This is attributed to the fact that several of the largest systems integrators among the top 25 that were ranked in 2017 are not ranked in 2018, including Johnson Controls (due to lack of publicly available information on its systems integration business), Kratos Public Safety & Security Solutions Inc. (acquired by Securitas ES), VTI Security (declined to participate), NextGen Security LLC (declined to participate), and Genesis Security Systems LLC (acquired by Convergint Technologies). Among companies for which a year-to-year comparison could be made, security system integration revenue actually increased 10.9 percent.
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2018 Rank
2017 Rank
Company & Headquarters LocationNorth American
Systems Integration Revenue, 2017
Number of New Projects,
2017
Largest Project Size
Smallest Project
Size
Top 3 Markets Contributing to Revenue
Full-time Employees
Business Locations
34 34 TRL Systems Inc.Rancho Cucamonga, Calif.
$17,946,735 576 $1,600,000 $1,500 industrial, corp, transport
e = SDM estimate. na = not available. Abbreviations to markets: airport = airports; corp = corporate office space; correctional = correctional; education = education/campuses; entertainment = entertainment/sports venues; financial = financial/banking; gaming = casinos/gaming; govt = government; health = healthcare; hotel = hotels/hospitality; industrial = industrial; law = law enforcement; retail = retail/restaurants; transport = transportation/distribution; utilities = utilities/critical infrastructure.
n No. 34 – Developed, designed, implemented and deployed company’s own trademarked cloud-based service offering for network health monitoring: TRL Systems AlertPro real-time health monitoring service. n No. 36 – Increased energy sector presence and improved project management processes to drive efficiency and profitability. n No. 43 – Became ISO9002 certified. n No. 44 – Received the 2017 Axis Communications Transportation Partner of the Year award. n No. 45 – Developed a sales CRM platform that is tightly integrated in company’s business operating systems. n No. 46 – Awarded the Time Warner project at 55 Hudson Yards, New York – $3.8 million. n No. 49 – Direct, multi-million dollar contract of security design for K-12 school district. n No. 51 – Company was a crucial part of the design of low-voltage systems in the Historic District Hotels of Savannah, Ga., along with the design of low-voltage systems of Pruitt Health.
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52 July 2018
looking at using video for the analytics they can provide, in order to evaluate their manufacturing, improve processes, meet regulatory compliance, and more,” the company describes.
While the most significant growth for Con-vergint Technologies came from the financial/banking and government sectors, the retail market was weak due to disruption “caused by Amazon and other online retailers … .” it and other security integrators found.
The top three market segments that provided the most significant sources of revenue in 2017 were: corporate office space, education, and healthcare. (See “Top 3 Sectors” on page 48.) These were unchanged from 2016.
“Security systems sales and integrated system projects represent the primary focus for Red Hawk due to the market size and growth potential. We see the market as strong, especially in education, office buildings, hospitality, healthcare, sports venues and casinos,” notes Red Hawk Fire & Security, No. 4. Nearly half of the company’s sales revenue originates from commercial fire alarm work.
Other security integrators concur that the edu-cation market — and other segments that feature similar open access, such as houses of worship —
2018 Rank
2017 Rank
Company & Headquarters LocationNorth American
Systems Integration Revenue, 2017
Number of New Projects,
2017
Largest Project Size
Smallest Project
Size
Top 3 Markets Contributing to Revenue
Full-time Employees
Business Locations
56 82Bates Security / Sonitrol of LexingtonLexington, Ky.
$7,561,634 893 $234,689 $0 corp, education, health
70 2
57 88 Will ElectronicsSt. Louis, Mo.
$7,129,491 325 $186,155 $350 utilities, govt, health 33 1
$6,521,282 90 $244,293 $170 govt, education, health
36 1
63 62 Ackerman Security SystemsAtlanta, Ga.
$6,408,660 800 na na retail, corp, education
259 2
e = SDM estimate. na = not available. Abbreviations to markets: airport = airports; corp = corporate office space; correctional = correctional; education = education/campuses; entertainment = entertainment/sports venues; financial = financial/banking; gaming = casinos/gaming; govt = government; health = healthcare; hotel = hotels/hospitality; industrial = industrial; law = law enforcement; retail = retail/restaurants; transport = transportation/distribution; utilities = utilities/critical infrastructure.
n No. 56 – Acquired ABCO Security; implemented the Sonitrol Standard, an operational paradigm shift to implement and improve efficiencies and profitability of the operations of the entire company. n No. 57 – Completed the O’Fallon Justice Center project. n No. 59 – Launched new digital marketing campaign. n No. 60 – Established Managed Services Division. n No. 61 – Ownership change: Jay Slaughterbeck purchased Strategic Security Solutions outright from parent company. n No. 62 – Improved national account program, resulted in signifi-cant increase in sales revenue.
Top Systems Integrators were asked, “Do you think funding for security projects was generally better, worse, or about the same in 2017 as it was in 2016?”
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High Confidence in Security Project Funding
*percentage of Top Systems Integrators indicating each answer; based on 92 responses
Source: SDM Top Systems Integrators Report, July 2018
Top Systems Integrators have a very positive outlook on the state of funding for their clients’ security projects, with 57 percent of integrators stating funding was better in 2017 compared with 2016 — up from 51 percent the prior year.
e = SDM estimate. na = not available. Abbreviations to markets: airport = airports; corp = corporate office space; correctional = correctional; education = education/campuses; entertainment = entertainment/sports venues; financial = financial/banking; gaming = casinos/gaming; govt = government; health = healthcare; hotel = hotels/hospitality; industrial = industrial; law = law enforcement; retail = retail/restaurants; transport = transportation/distribution; utilities = utilities/critical infrastructure.
n No. 65 – Opened Las Vegas office. n No. 66 – Opened first branch office in Omaha, Neb. n No. 67 – Able to navigate the year with consistent revenues and profits, due to a new operat-ing system called EOS/TractionSome, some components of which concerned data and accountability. Exceeded profit margin budget and rewarded all staff with profit-sharing bonuses in 2017. n No. 69 – With new leadership at the helm, Ener-Tel Services increased footprint in other markets; in addition to diving deeper into Abilene, Texas, market, company also expanded into the Brownwood area. n No. 70 – Engineering expertise and service orientation helped land another global manufacturer. n No. 73 – 2-million-sq.-ft. building with a full fire alarm re-placement, 200 cameras, 220 card readers, optical turnstiles, and command center was one of many projects in 2017. n No. 74 – Recruited talented team members and grew new branch location in Knoxville, Tenn. n No. 75 – Secured a contract with local county law enforcement agency to upgrade all of the cameras through multiple phases to a network-based system, all 1080p and higher with three years of video retention. Helped the county establish video standards. n No. 77 – First security integration project over $1 million in company’s history. n No. 80 – Completed very large project for the Army Corps of Engineers; aside from general electrical it was build for fire, CCTV, and voice evac along with voice intelligibility, testing and certification. n No. 83 – Activated new online employee payroll and benefits portal for employees. Cloud-based systems allow employees to log work time by work type, allowing for much better tracking of expense and management of overtime. Expanded customer financing options for new activations. Completed negotiations with two new electric service cooperative partners that will launch in 2018.
$1,500,000 na $299,900 $99 retail, corp, financial 151 7
100 GHS Interactive Security LLCWoodland Hills, Calif.
$1,375,300 390 $3,250 $99 corp, retail, entertainment
178 12
e = SDM estimate. na = not available. Abbreviations to markets: airport = airports; corp = corporate office space; correctional = correctional; education = education/campuses; entertainment = entertainment/sports venues; financial = financial/banking; gaming = casinos/gaming; govt = government; health = healthcare; hotel = hotels/hospitality; industrial = industrial; law = law enforcement; retail = retail/restaurants; transport = transportation/distribution; utilities = utilities/critical infrastructure.
n No. 85 – Gutted existing monitoring station and replaced everything with state-of-the-art equipment and technology. Project took close to four months to complete, totaling approximately $300,000. n No. 86 – Acquired a branch in Tucson, Ariz. n No. 89 – Obtained a city and state contract with the largest health and hospital facilities in New York City, as a vendor for all security-related service and installation for many of their locations. n No. 98 – Completed three significant acquisitions and increased RMR 12 percent.
are producing gainful opportunities.“Market about the same, but very competitive.
New growth verticals opportunities strong. We are finding success in a lot of markets such as church-es, private educational facilities, and industrial segments. The ability to offer a verified solution has definitely helped us in a competitive market,” reports Sonitrol SW Ohio, No. 47.
“School security systems, such as lock-down systems and surveillance cameras, along with shooter detection systems, will be in high demand,” notes APL Access & Security Inc., No. 54 on the
SDM Top Systems Integrators Report.“The school shootings are creating a big demand
for our products and services,” says No. 49-ranked 3Sixty Integrated.
“The construction market is the largest driver of our business. In addition, we are seeing that more money is being allocated in the education segment to lock down campuses,” observes RedRock Secu-rity & Cabling Inc., ranked No. 42.
“Mitigating active-shooter threats, standard-izing and upgrading access control systems, and determining how IoT technology fits into their
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58 July 2018
Rank by Project
SizeCompany
Value of Largest Project
2018 Rank
1 Convergint Technologies $8,700,000 1
2 Interface Security Systems Holdings Inc.
$6,700,000 26
3 Unlimited Technology Inc. $6,500,000 10
4 Advanced Electronic Solutions $6,100,000 27
5 Security Integrations $5,000,000 24
6 3Sixty Integrated $4,300,000 49
7 Security By Design Wire Works Business Systems Inc.
$3,747,000 46
8 Securityhunter Inc. $3,137,026 16
9 Integrated Security Technologies $3,117,285 23
10 ACT $3,045,000 31
11 PASS Security $2,900,000 48
12 GSI $2,878,000 19
13 Allied Universal Security Systems $2,600,000 11
14 Red Hawk Fire & Security $2,200,000 4
15 Advanced Cabling Systems $2,150,000 22
16 Tech Systems Inc. $2,000,000 9
17 Mountain Alarm $2,000,000 28
18 SIGNET Electronic Systems Inc. $2,000,000 41
19 RedRock Security & Cabling Inc. $1,750,000 42
20 MidCo Inc. $1,650,000 29
21 TRL Systems Inc. $1,600,000 34
22 Entech Sales and Service LLC $1,547,320 18
23 LVC Companies Inc. $1,485,000 14
24 Wilson Fire $1,400,000 77
25 RFI Communications & Security Systems
$1,300,000 13
26 APL Access & Security Inc. $1,300,000 54
27 Engineered Security Systems $1,260,000 73
28 Firstline Security Systems Inc. $1,240,000 33
29 The Protection Bureau $1,238,014 38
30 Sonitrol of Buffalo, Rochester, Toronto
$1,200,000 87
31 A3 Communications Inc. $1,181,326 12
32 Access Systems Integration $1,150,000 36
33 Ener-Tel Services I LLC $1,000,000 69
34 AFA Protective Systems Inc. $900,000 15
35 Sentry Communications & Security $875,000 58
36 Minuteman Security Technologies Inc.
$863,000 30
37 Electronic Security Concepts LLC $830,000 65
38 Stone Security $778,133 44
Rank by Project
SizeCompany
Value of Largest Project
2018 Rank
39 Intertech Ci $723,441 21
40 Scarsdale Security Systems Inc. $675,000 71
41 Ollivier Corporation $659,098 60
42 Vector Security Inc. $577,000 6
43 SCI Inc. $560,000 79
44 Per Mar Security Services $545,000 25
45 Dallas Security Systems Inc. & DSS Fire Inc.
$500,000 39
46 Vision Security Technologies $500,000 59
47 Apex Integrated Security Solutions Inc.
$487,000 78
48 CGL Electronic Security Inc. $465,000 53
49 Life Safety Engineered Systems Inc. $450,000 93
50 Titan Alarm Inc. $430,000 86
51 American Alarm & Communications $429,239 35
52 New York Security Solutions $421,000 89
53 Sonitrol New England $374,138 82
54 EMC Security $340,000 83
55 Rapid Security Solutions LLC $325,000 72
56 Atronic Alarms Inc. $305,000 66
57 Habitec Security $300,000 96
58 General Security Inc. $299,900 99
59 T&R Alarm Systems Inc. $280,000 80
60 D/A Central Inc. $270,000 70
61 Security Equipment Inc. $264,972 37
62 Custom Alarm $249,226 67
63 Southeastern Security Professionals LLC
$244,293 62
64 Bates Security / Sonitrol of Lexington
$234,689 56
65 Guardian Protection Services $222,203 52
66 Moon Security Services Inc. $220,000 84
67 Sonitrol SW Ohio $202,000 47
68 Strategic Security Solutions $199,000 61
69 FE Moran Security Solutions $195,663 45
70 ADS Security L.P. $189,597 32
71 Will Electronics $186,155 57
72 Post Alarm Systems $175,000 92
73 Valley Alarm $173,557 98
74 Acadiana Security Plus $160,000 94
75 Sonitrol Pacific $125,964 91
76 Sonitrol of Sacramento & Orange County, Cybex Security Solutions
$110,150 75
These 76 security systems integrators reported having the highest-value security projects started in 2017. Note: Five of the top 10 companies did not report their largest project size, as requested by SDM. Projects below $100,000 are not ranked here. Find out more about the largest project, underway by Convergint Technologies, on SDM’s website at www.SDMmag.com/Top-Systems-Integrators-Report.SOURCE: SDM TOP SYSTEMS INTEGRATORS REPORT, JULY 2018
Company 2018 Rank Company 2018 Rank Company 2018 Rank
Alphabetical Index to Companies
To gain additional information beyond that published in this issue and online, the complete SDM Top Systems Integrators Report and Database is available in Excel for-mat. Included are mailing addresses, telephone numbers, website URLs, targeted vertical markets, branch office locations, and much more. SDM’s Top Systems Integrators
Report and Database contains the information needed to target products and services to the systems integration market.
The cost of the report is $595. It may be ordered by contacting Heidi Fusaro at 630-518-5470 or by emailing [email protected].
More From the Report
July 2018 61
security portfolio are top-of-mind for many of our customers and will continue to drive our business growth in 2018,” describes Access Systems Inte-gration, No. 36.
American Alarm & Communications, a company that also ranks on the SDM 100 Report of recurring monthly revenue businesses, points out that active-shooter threats don’t just impact the educational market. “Active-shooter threats are leading to state government wanting city-wide integrated security with cities and towns,” the company says. In addi-tion, “legalization of marijuana in Massachusetts is providing opportunities for integrated security solutions at dispensaries.”
Most of the Top Systems Integrators describe vast opportunities for sales, due to many factors including the robust economy and state of new construction; continued security threats to people, property and assets; and the ability of security technology such as video analytics to morph into business intelligence solutions. All of this gears up
the security integration industry for solid growth in 2018.
More than nine of 10 Top Systems Integrators (94 percent) expect their 2018 revenues to exceed 2017’s, which is even higher than the prior year’s 86 percent of security integrators who thought the same. The average expected revenue increase is 12 percent in 2018.
“We believe the security market is very strong and the evolving technology solutions the industry continues to make available to us makes that pos-sible,” says No. 75-ranked Sonitrol of Sacramento & Orange County, Cybex Security Solutions. n
MORE ONLINETo find this article online, as well as pre-
vious years’ editions of the Top Systems Integrators Reports, visit www .SDMmag .com/Top-Systems-Integrators-Report .
23rd Annual Report
Company Total Revenue
ADT $4,315,502,000
Convergint Technologies $842,460,787
Securitas Electronic Security
$375,000,000
Vector Security Inc. $296,262,172
Red Hawk Fire & Security $264,000,000
Guardian Protection Services
$213,319,598
Interface Security Systems Holdings Inc.
$164,978,340
G4S Secure Integration $158,721,000
Entech Sales and Service LLC
$105,495,381
Kastle Systems International
$100,000,000
Source: SDM Top Systems Integrators Report, July 2018
Top 10 Integrators by Total Revenue
Among companies ranked on the Top Systems Integrators Report, these businesses reported (or were estimated by SDM) the highest total revenue in 2017: ADT, Convergint Technologies, and Securitas Electronic Security are the top three. (Note: Revenue for G4S Secure Integration is estimated by SDM.)
e
*average percentage distribution of staff titles among systems integrators; based on 93 responses
Source: SDM Top Systems Integrators Report, July 2018
This chart, which you can use to compare job titles in your own company with industry averages, shows the average percentage distribution of job titles among Top Systems Integrator companies. Approximately one-third of jobs (34 percent) are comprised of installation and technical service positions.
Average Percentage of Jobs on an Integrator’s Staff
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Technical service
21%Administrative/Customer service/ Finance
13%Other
10%Sales/Marketing
10%Project management/ Engineering/ Design/IT
6%Central Station
6%Executive management/
General management
Top Systems Integrators: 8-Year Performance*In the 2010 report, several notable companies did not participate, including SAIC, Red Hawk Security, North American Video, and National Security Systems Inc., which skewed the results. Among systems integrators for which a year-to-year comparison could be made, there was actually only a 4.4 percent decrease in performance between 2009 and 2010.†Two major factors contributed to the decrease in systems integration revenue; ADT was not ranked, and Siemens Industry Inc. systems integration revenue was adjusted downward by an SDM estimate.
**Siemens Industry Inc., which had been ranked in 2014 using estimated systems integration revenue, was not ranked in 2015. On the surface, it appears that Top Systems Integrators revenue declined 7.1 percent in 2014. When Siemens is removed from this calculation for comparison purposes, however, systems integration revenue for the top 100 companies grew very slightly, at 0.35 percent year-over-year.††A 17.34 percent decrease in systems integration revenue is attributable to the fact that several of the largest systems integrators either did not reply to SDM’s requests for information, could not comply due to restrictions of being publicly held, or were omitted due to acquisition (includes Diebold Security – will report in 2017 as Securitas Electronic Security Inc.; Stanley Convergent Security Solutions; Protection 1; Schneider Electric; SDI; DTT; and Dakota Security Systems, among the top 25).
***The 14 percent increase in systems integration revenue is attributed to the fact that several of the largest systems integrators that did not participate in 2016 are now ranked in 2017, including ADT, Securitas Electronic Security, and the combined entity of Johnson Controls/Tyco Integrated Security.†††The 48 percent decrease in systems integration revenue is attributed to the fact that several of the largest systems integrators among the top 25 that were ranked in 2017 are not ranked in 2018, including Johnson Controls (due to lack of publicly available information on its systems integration business), Kratos Public Safety & Security Solutions Inc. (acquired by Securitas ES), VTI Security (declined to participate), NextGen Security LLC (declined to participate), and Genesis Security Systems LLC (acquired by Convergint Technologies).
North American systems integration revenue (as reported to or estimated by SDM) reached $3.31 billion in 2017, based on reporting from 100 Top Systems Integrators. This amount registers a 48 percent decrease, which is attributed to the elimination of several large integrators on the report (see footnotes above). For integrators whose revenue could be compared year-over-year, total systems integration revenue actually increased 10.9 percent.
Rev
enue
in b
illio
ns $
(%
cha
nge)
2009
$8.05top 100 only
(2.4) $7.14*
top 100 only
(-11.3)$6.91
top 100 only
(-3.2) $6.31†
top 100 only
(-9)
$7.36top 100 only
(17.5)
$6.42***
(14)
$3.31†††
(-48)
$6.81**
top 100 only
(-7.1)
$5.63††
top 100 only
(-17.3)
2012 20152010 2013 20162011 2014 2017
8
6
4
2
Source: SDM Top Systems Integrators Report, July 2018
Online only
*percentage of Top Systems Integrators’ 2017 service revenue cat-egorized by type of service provided; based on 94 responses.
Source: SDM Top Systems Integrators Report, July 2018
Top Systems Integrators were asked to break out their 2017 revenue by type of service. The single largest category of revenue is from “system sales and installation,” comprising 54 percent of total revenue, followed by monitoring, at 21 percent, and then service contracts, at 11 percent.
Integrators’ Sales Revenue by Service Category
Sales/installation54%*
Monitoring21%
Service contracts11%
Non-contracted service7%
Test and inspection3%
Hosted/managed services2%
Equipment leases1%
Other1%
*percentage of Top Systems Integrators’ 2017 sales revenue catego-rized by type of product provided; based on 85 responses.
Source: SDM Top Systems Integrators Report, July 2018
Integrators’ Sales Revenue by Product Category
Top Systems Integrators were asked to break out their 2017 sales revenue by type of product. The single largest category of revenue from products is from “integrated non-residential systems” that combine two or more different technology solutions, comprising 34 percent of total sales revenue. This is followed by video surveillance, at 19 percent, and access control, at 14 percent of sales revenue.
Integrated non-residential systems34%*
Video surveillance19%
Access control14%
Fire protection11%
Intrusion alarms10%
Integrated residential systems7%
Other (including IT hardware/software, perimeter security, badging)
3%
Intercom/communications2%
Online only
Rank by Project
SizeCompany
Value of Largest Project
2018 Rank
1 Convergint Technologies $8,700,000 1
2 Interface Security Systems Holdings Inc.
$6,700,000 26
3 Unlimited Technology Inc. $6,500,000 10
4 Advanced Electronic Solutions $6,100,000 27
5 Security Integrations $5,000,000 24
6 3Sixty Integrated $4,300,000 49
7 Security By Design Wire Works Business Systems Inc.
$3,747,000 46
8 Securityhunter Inc. $3,137,026 16
9 Integrated Security Technologies $3,117,285 23
10 ACT $3,045,000 31
11 PASS Security $2,900,000 48
12 GSI $2,878,000 19
13 Allied Universal Security Systems $2,600,000 11
14 Red Hawk Fire & Security $2,200,000 4
15 Advanced Cabling Systems $2,150,000 22
16 Tech Systems Inc. $2,000,000 9
17 Mountain Alarm $2,000,000 28
18 SIGNET Electronic Systems Inc. $2,000,000 41
19 RedRock Security & Cabling Inc. $1,750,000 42
20 MidCo Inc. $1,650,000 29
21 TRL Systems Inc. $1,600,000 34
22 Entech Sales and Service LLC $1,547,320 18
23 LVC Companies Inc. $1,485,000 14
24 Wilson Fire $1,400,000 77
25 RFI Communications & Security Systems
$1,300,000 13
26 APL Access & Security Inc. $1,300,000 54
27 Engineered Security Systems $1,260,000 73
28 Firstline Security Systems Inc. $1,240,000 33
29 The Protection Bureau $1,238,014 38
Rank by Project
SizeCompany
Value of Largest Project
2018 Rank
30 Sonitrol of Buffalo, Rochester, Toronto
$1,200,000 87
31 A3 Communications Inc. $1,181,326 12
32 Access Systems Integration $1,150,000 36
33 Ener-Tel Services I LLC $1,000,000 69
34 AFA Protective Systems Inc. $900,000 15
35 Sentry Communications & Security $875,000 58
36 Minuteman Security Technologies Inc.
$863,000 30
37 Electronic Security Concepts LLC $830,000 65
38 Stone Security $778,133 44
39 Intertech Ci $723,441 21
40 Scarsdale Security Systems Inc. $675,000 71
41 Ollivier Corporation $659,098 60
42 Vector Security Inc. $577,000 6
43 SCI Inc. $560,000 79
44 Per Mar Security Services $545,000 25
45 Dallas Security Systems Inc. & DSS Fire Inc.
$500,000 39
46 Vision Security Technologies $500,000 59
47 Apex Integrated Security Solutions Inc.
$487,000 78
48 CGL Electronic Security Inc. $465,000 53
49 Life Safety Engineered Systems Inc. $450,000 93
50 Titan Alarm Inc. $430,000 86
51 American Alarm & Communications $429,239 35
52 New York Security Solutions $421,000 89
53 Sonitrol New England $374,138 82
54 EMC Security $340,000 83
55 Rapid Security Solutions LLC $325,000 72
56 Atronic Alarms Inc. $305,000 66
57 Habitec Security $300,000 96
58 General Security Inc. $299,900 99
59 T&R Alarm Systems Inc. $280,000 80
60 D/A Central Inc. $270,000 70
61 Security Equipment Inc. $264,972 37
62 Custom Alarm $249,226 67
63 Southeastern Security Professionals LLC
$244,293 62
64 Bates Security / Sonitrol of Lexington
$234,689 56
65 Guardian Protection Services $222,203 52
66 Moon Security Services Inc. $220,000 84
67 Sonitrol SW Ohio $202,000 47
68 Strategic Security Solutions $199,000 61
69 FE Moran Security Solutions $195,663 45
70 ADS Security L.P. $189,597 32
71 Will Electronics $186,155 57
72 Post Alarm Systems $175,000 92
73 Valley Alarm $173,557 98
74 Acadiana Security Plus $160,000 94
75 Sonitrol Pacific $125,964 91
76 Sonitrol of Sacramento & Orange County, Cybex Security Solutions
$110,150 75
Largest Project in 2017: $8.7 Million
CONVERGINT TECHNOLOGIES’ $8.7 M PROJECTIn 2017, Convergint Technologies executed the first year of a multi-year agreement in which it provided comprehensive operations and maintenance services for a large producer in the Cana-dian oil sands. Convergint pro-vides day-to-day operation of facility management systems, scheduled and break-in maintenance, and 24/7 support and response services. Dedicated specialists execute new construction as well as upgrades and project support, providing a full range of services that sustain the client’s security and building auto-mation systems. Convergint’s innovative solutions reduce operating costs, enhance environmental responsiveness, increase operational efficiencies, and positively impact this client’s business on a daily basis.
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These 76 security systems integrators reported having the highest-value security projects started in 2017. Note: Five of the top 10 companies did not report their largest project size, as requested by SDM. Projects below $100,000 are not ranked here.SOURCE: SDM TOP SYSTEMS INTEGRATORS REPORT, JULY 2018
