Concerned, as always, with helping installation companies to identify new profitable areas, Security Installer has carried out a readership survey into one of the ‘hottest’ peripheral sectors – the door entry market.
We aimed to find out the latest market trends in this sector of the industry, establish the potential business opportunities for installers and reveal where the new business exists in the door entry sector. As part of the survey, installers were asked to indicate the size of their company and involvement in installing door entry systems, and whether or not they are optimistic for the future about this part of their businesses. Readers were asked how manufacturers could improve all areas of the business. We include your answers below.
Survey methodology
A questionnaire was included in Security Installer, and additional copies were available from our stand at IFSEC. The survey contained 23 questions relating to the door entry market. Respondents were invited to complete the questionnaire and return it to the magazine’s offices by fax or post. 82 replies were received, of which 80 respondents were directly involved with installing door entry systems and two were involved in the design of security systems.
Who responded ? Size and type of installation company
Of the installers who responded to the survey, most companies are small independents with 50 per cent employing between 1-5 people. 12 per cent employ between 6-10 people, 12 per cent between 11-20, 8 per cent between 21-50 people, and 15per cent more than 50 people. (3 per cent did not answer this question.)
Installers were also asked how many engineers and sales people their companies employ. In the responses 65 per cent employ fewer than 10 engineers, 14 per cent employ between 11 and 60 engineers and just 3 per cent more than 150 engineers. (18 per cent did not answer this question.)
Numbers of sales staff were in line with the above figures with just over half the respondents (51 per cent) employing between 0 and 3 sales staff, 11 per cent employing between 4 and 12 sales staff and 3 per cent saying they employ over 30 sales staff. (35 per cent did not answer.)
How many systems are installed each month?
According to the survey, the majority of installers (75 per cent) said they install between 1 to 10 systems a month. The figures probably accurately reflect activities in the market among smaller installation companies. 16 per cent of respondents install between 11-20 and 4 per cent install 20 or more systems a month.
When asked if they thought they would be installing more, fewer or the same number of systems during 2001, it is encouraging that 60 per cent of respondents anticipated installing more systems, and 30 per cent thought they would be installing the same amount of door entry systems.
Types of system installed
Video door entry systems are, not surprisingly, the most frequently installed types of door entry systems, installed by 46 per cent of respondents. This result is not unexpected as audio and video door entry systems (which provides two way audio communication with video, enabling the user to see and speak to the visitor before allowing them to enter) are widely spread throughout all types of installations. Colour video entry systems are being more widely installed than black and white with 24 per cent installing colour and 20 per cent more frequently installing black and white.
This result tells us that colour video is becoming increasingly popular. Just a few years ago when colour systems were entering the market, they were branded as being ‘too expensive’ and there was speculation that customers wouldn’t go for colour. As prices have come down, it seems that customers are showing a preference for colour video systems. Only 11 per cent of respondents said that audio-only systems are the most frequently installed. This type is still popular in housing apartment door entry installations and multi-tenant office buildings. However, as the figures suggest, video dominates the market.
Where do installers buy systems?
The majority of installers purchase door entry systems from one or more of the leading security wholesalers/distributors such as A&A, Gardiner Technology, Gardiner Security, Norbain or CSD, as well as from electrical wholesalers including Newey and Eyre and City Electrical, or direct from the manufacturer. A quarter of all respondents are loyal to just one supplier, either manufacturer, distributor or electrical wholesaler, for purchasing.
Among the others who are presumably shopping around for the best deals, 9 per cent buy directly from the manufacturer, 24 per cent buy from electrical wholesalers, and 67 per cent purchase from security distributors/ wholesalers. Most of the respondents who named the manufacturer they purchased from also stated that this was, in their opinion, the best brand available.
Their preferred types of system
In this question our respondents were asked to choose a preferred type of door entry system. Respondents could chose more than one type of system, which gave us 134 replies.
Where is the equipment being installed?
Installers were asked where door entry equipment is mainly being installed.
From a total of 207 answers, the responses show an almost even spread across the main sectors of commercial premises (22 per cent) and industrial sites (17 per cent). The housing sector shows some room for growth: 15 per cent most regularly install at private apartments, 14 per cent at private houses and 11 per cent in local authority housing.
Installations at government premises are carried out by just 8 per cent of respondents. Surprisingly, few of our respondents carry out door entry installations at schools and hospitals (8 and 5 per cent respectively). These figures are lower than we expected given all that we hear about security being increased in schools and hospitals throughout the country. Schools and hospitals have been identified as a potential growth area for installers and, undoubtedly, offer future profitable opportunities as more and more public/health authorities grasp the importance of this type of security.
Other areas of business
All the respondents are involved in other areas of security installation, whether it be access control, CCTV, intruder alarms or fire systems. A total of 80 per cent of respondents said they regularly specify the type of door entry system to be installed for a customer, and 86 per cent said they offer maintenance. From the responses regarding annual spend on door entry we can assume that door entry installation is a peripheral part of the overall business, an add-on to a larger system.
Brands
The survey listed the16 different brands most widely available in the UK door entry market: Acet, Aiphone, AmplyVox, Bell Systems, Bitron, BPT, Comelit, Elvox, Farfisa, Fermax, Ritto, Selti, Siedle, Terraneo, Urmet and Videx, and installers were asked to identify the brands they install most regularly. Every brand was selected at least once, however, of the 16 brands the most popular and most regularly installed, according to our survey, were Aiphone, BPT, Fermax and Videx.
It is worth noting that 38 per cent did not answer this question, which might imply that they have no preference over which brand they use. However, nearly all respondents answered the next question about why they chose a particular brand. In order of importance, the reasons for choosing a particular brand were equally voted with 25 per cent each for quality and reliability. Followed by 19 per cent who rated price as the most important feature, 11per cent rated brand availability, 9 per cent chose ease of installation of the brand and 8 per cent chose a particular brand because it is the ‘best product for the job’. (3 per cent did not answer.)
Product Information
When asked how installers find out about new products, the most popular method for 32 per cent is to receive information direct from the manufacturer. Compared to 28 per cent who obtain information from the trade press, 17 per cent from trade counters, and 10 per cent by word of mouth. 6 per cent said they hear about new products as specified by the customer.
Assistance from the manufacturer
When asked to list different areas where manufacturers could be of more help and support to installers, the most important area was recorded as being to ‘Improve equipment reliability’.
The next action installers wanted to see was manufacturers sell to ‘trade only’ followed by: Improve the quality of the advice given about products; Offer regular product training; and Make equipment easier to install. Lower prices came at the end of this list.
Optimism for the future
The research shows that the door entry market is a significant sector of the security industry and is generally well known among installers. It is encouraging to see that more than half the installers in our survey are confident that they will be installing more systems this year, and thus anticipating some growth in this sector.
Not surprisingly, quality and reliability are the most valued features in door entry equipment, so as long as manufacturers take heed of the requests of installers we should continue to see growth in this sector. Of the different areas where products are installed, it would appear that schools and hospitals present good areas for business growth, as it becomes more important to implement security in these public areas.
Upgrading black and white to colour door entry could also be another potential area for new business. As colour video entry systems are increasing in popularity and use there may be many existing black and white systems that would benefit from upgrading to colour video.
Overall, our survey shows that door entry installation is more of an add-on to a larger security installation than an individual installation in its own right. This is fairly typical of the market because of the nature of door entry equipment. So, at least for the foreseeable future, we would expect the market to carry on much as it is, with steady growth year on year.
