Commercial Integrator and NSCA’s annual State of the Industry study primarily explores what’s ahead in the next 12 months and beyond for the commercial AV space. However, one section of the annual report focuses specifically on the security industry, looking at how that sector could bear financial fruit.
This section of the annual outlook by SSI’s sister publication and its AV industry partner praises the security industry for its leveraging of recurring monthly revenue. Indeed, the author argues that the commercial AV space needs to more completely embrace RMR and its vast potential.
Read on for a security-focused excerpt from the report….
Deeper and Wider With Commercial Clients
Going deeper and wider with commercial clients could well mean dipping a toe in the physical and electronic security world.
“We’re seeing a huge integration opportunity between AV, digital signage and security now,” NSCA CEO Chuck Wilson observes, “because the systems are all interoperable and working together.
Thus, especially at a time when active-shooter situations are tragically frequent, it’s only natural to pair discussions about campus signage and mass notification, for example, with conversations about video surveillance, access control, intrusion detection and other security measures.
And with commercial clients increasingly recognizing that AV is likewise mission-critical, they’re primed to assign high value to what AV integrators have to offer.
Already, we see 18% of survey respondents reporting that they have physical security projects in their backlog for 2024. This just reinforces Wilson’s perspective.
“Our sweet spot isn’t [in residential],” he says. “It’s in industrial manufacturing, education, healthcare, government — that’s where we belong.”
CI and NSCA Report: Security Industry a Model on RMR
One thing that AV integrators perhaps could learn from physical and electronic security specialists is the importance of selling services and earning recurring monthly revenue (RMR). At present, our research study shows relative stagnancy in terms of integrators shifting to a services-driven business model. Some 47% of respondents say that service contracts made up less than 5% of their revenue last year.
Another 28% peg the number at 5% to 10% of 2023 revenue. And although 79% of survey takers report selling service contracts, the percentages associated with more robust service offerings are comparatively weaker: managed services (44%), AV-as-a-Service/AV-as-a-Subscription (16%) and security monitoring/video storage (14%).
Meanwhile, a surprising 9% of survey takers report that they don’t sell any services at all.
Click here to read the full 2024 State of the Industry study, which was jointly created by Commercial Integrator and NSCA.
