According to the most recent Security Market Index survey conducted by the Security Industry Association (SIA) for September-October, optimism within the security sector is notably strong among industry leaders.
When asked about their forecasts for the next three months, 78 percent of survey participants projected growth, with one out of five expecting things to get “much better” and 58 percent saying they are likely to get “a little better.”
The survey was conducted before the Federal Reserve announced that it would reduce interest rates by a half-point.
As for current conditions, 71 percent of survey participants had a positive outlook, including 28 percent who said that current business conditions are “excellent” and 43 percent who described them as “good.” Among just integrators, 88 percent characterized conditions as better than average.
The September-October Security Market Index, a measure of industry confidence that is calculated using a proprietary formula based on three-month projections related to five key business components, increased seven points — the largest jump in more than a year — from two months earlier to 55. That is two points above the 12-month average of 53.
The Index’s goal is to provide a macro-view of confidence levels in the security industry every two months while closely examining six specific business measures:
- Number of employees or hours worked
- Marketing spending
- Product production or service output
- Capital equipment spending
- R&D spending
- Product or service sales
Special focuses of SIA’s September/October 2024 SMI include:
- A large growth forecast for the next three months
- Insights following the Federal Reserve’s interest rate cut for the first time since COVID-19 struck
- Perspectives on which Election Day outcome(s) would be best for security industry businesses
“This month’s results show the resilience of the security industry,” SIA Board of Directors Chair Scott Dunn of Axis Communications said. “Even amid challenging economic conditions and uncertainty caused by political strife, manufacturers and integrators continue to grow and prosper.”
