Conference Focuses on Opportunities, Sales Leaders
First Alert Professional Security Systems convened in Phoenix in mid-November for its 13th annual conference of authorized dealers, uniting under the theme of "The New Frontier – Take the High Road to Success.""There are some new things we're bringing to you that we want you to bring to your customers," said Kevin O'Connor, president of First Alert Professional Security Systems. "We're bringing the power of Honeywell – the additional resources of the Honeywell name. We recently added FutureSmart to our family – the product that we needed to compete better."
This is First Alert Professional's fifth year as part of Honeywell, and security "is one of its most profitable businesses," said Roger Fraydon, president, Honeywell Automation & Control Products. "This is Pittway on steroids – being part of Honeywell," Fraydon said.
Indeed, the cross-marketing opportunities between the Honeywell known by consumers and the Honeywell known to this industry was a chief focus of this year's conference – both in the presentations by Honeywell executives, as well as in the educational sessions.
"FutureSmart was a missing product for us," Fraydon said. "Structured wiring can help leverage the security and the environmental sides of Honeywell. One plus one will equal three. When there's a fire alarm, the security system will shut down the HVAC. When CO is detected, the security system will turn on the ventilation. It's one of the many ideas we have that will help you leverage what Honeywell does."
Several dozen companies were recognized for their status as five-year and 10-year dealers with First Alert Professional Security Systems. Others were presented with Community Service Awards for their contributions to their local communities in the areas of child safety or life safety assistance for the elderly, for example.
"We are the leader in the electronic security systems business. We believe in the independent dealer model, and we have the legacy leadership in place to bring you the product," Fraydon said.
More than 650 people (representing more than 150 dealer companies) attended the convention, which featured guest speakers, including Dan Clark (author and former professional football player), Clyde Fessler (former director of business development for Harley Davidson), and Marc Klaas of KlaasKids Foundation.
The conference culminated in an awards dinner at which First Alert Professional Security Systems presented its Medal of Honor Award to Matson Alarm Co., Fresno, Calif.
Commercial End User Market Growing Steadily
Post Sept. 11, the U. S. commercial security market grew at a healthy, double-digit rate, according to a new study by Frost & Sullivan. "The U.S. Commercial End User Security Market" found that the market generated $14.5 billion in 2002.While this is good growth, it is still off of what was expected. "The market is growing, especially after Sept. 11, but it has not grown as much as one would assume it to have grown," says Deepak Shetty, senior industry analyst for Auto ID and Security, Frost & Sullivan. "Everyone thought it would open up the floodgates to spending on security."
Instead, what has happened is that end users are being more cautious in their spending, Shetty says. They are evaluating what they already have, and figuring out how best to use those systems, as well as determining what they really need.
"Most of the commercial establishments are looking at integrating security systems," Shetty says. "Right now there is so much awareness. People are trying to see how they can consolidate all these systems they already have installed and how to integrate all these things."
The study forecasts, however, that the most growth will come between 2002 and 2004, ultimately reaching $29.36 billion in 2009.
"The market is out there, no doubt," Shetty says. "But you need to have a product or system that caters to end users and offers technology that integrates into their legacy systems. Some commercial end users have invested a lot on security in the past. They already have some form of security systems. They don't need to start from scratch. Also, they want to know how the security system can add to their bottom line. End users are particularly interested in this given the current economic conditions."
For more information on the growth of the electronic security industry in 2003, also see SDM's 2004 Forecast, on page 36 of this issue.
Estimates of 2002 Civilian Fire Deaths by Property Type
Since 1977, civilian deaths related to home fires have been cut in half. In fact, 2002 showed the lowest number the National Fire Protection Association (NFPA) has ever recorded. Still, among the structure fires, three out of four happened in homes – one- and two-family dwellings and apartments. Home fires were also responsible for 79 percent of total civilian fire deaths. Fewer people were injured in civilian fires, as well. There were 18,425 civilian fire injuries (also the lowest number since 1977), a decrease of 9.2 percent from 2001.
Source: NFPA’s Survey of Fire Departments for 2002 U.S. Fire Experience.
IVM Technology Helps Businesses Fight Back
Industry experts have estimated CCTV’s market potential at $16 billion, of which IVM (Interactive Video Monitoring) is projected to be a growing segment. To address this growth market, NACC (National Alarm Computer Center), Irvine, Calif., has increased its focus on turnkey IVM programs for dealers and hired industry veteran Patrick Hart as IVM manager.“For a business owner, incorporating IVM can reduce dependence on on-site personnel to monitor, report and respond to security issues,†said Steve Baker, president of NACC. “Our new IVM programs are designed to help enhance a dealer’s effectiveness in being able to monitor the field, potentially resulting in stronger margins and increased customer retention.â€
NACC’s IVM services include:
Reactive Monitoring: When an alarm signal is received at NACC’s central station in Irvine, automated software can initiate a live video feed, alerting NACC’s IVM operators to begin monitoring events as they unfold. The operators can make audible announcements, notifying patrons the situation is being watched. Or they can request on-site personnel, potentially saving precious time.
Virtual Guard Tours: Virtual guard tours can help eliminate the need for around-the-clock security personnel. Via strategically placed CCTV cameras, IVM operators can monitor an area that guards would normally cover on their rounds.
Escorts (Opening/Closing): An NACC IVM operator can call a facility at a designated time and conduct an escort, watching via live feed as employees/owners leave the facility, get into their vehicles and drive away safely.
Timed Viewing: Targeted for after-hours inventory delivery and pick-up situations, an IVM operator can monitor activity at a remote location for a specified period of time to help ensure that no foul play takes place.
Video Verification: Once an alarm signal is received at NACC’s central station, a video unit can capture recorded images or real-time video of a suspect. Images are transmitted via the Internet or a land-based line (ISDN or phone line) to an IVM operator who can determine the status and notify the appropriate authorities.
Passcode Maintenance: A service where NACC maintains, issues and deletes passcodes for clients who want access to their locations via the Internet, helping ensure there is no unauthorized access to the system.
“We’re offering dealers a fully integrated, turnkey IVM solution for their customers, including financing and training,†said Patrick Hart. “Each of our IVM services can be packaged and customized to help meet customers’ needs while helping to reduce overall costs.â€
Contact NACC at (800) 482-9800, or visit www.nacchq.com.
CEUT Acquires Mallon Associates
C.E. Unterberg, Towbin (CEUT), New York, the investment bank focused on middle market growth companies in tech and healthcare, announced the acquisition of Mallon Associates to provide investment banking services to the global security, crime control and anti-terrorism industry. Mallon, now a division of Unterberg, specializes in financial advisory, including mergers and acquisitions, to the security industry.Jack Mallon, Robert Rutkowski, and Jon Mallon, who co-founded Mallon Associates in 1999, lead the effort at C.E. Unterberg, Towbin.
Additonal information on CEUT can be found on its web site, www.unterberg.com.
New National Board Named at CANASA’s Annual Meeting
The new Canadian Alarm and Security Association (CANASA) National Board of Directors was announced at CANASA’s annual general meeting in October. The board consists of an Executive Committee and members that represent each province. All members serve on the board for a period of two years (2003-2005). The following individuals are among those who have been officially appointed to the board:- National president: Steve Kelly, Securco Services Inc.
- National vice president: Angelo Bucciarelli, Counterforce Inc.
- National past president: Sandy Hislop, A.M. Business Enterprises
- National secretary: Kim Schellenberg, AAA Alarm Systems Ltd.
- National treasurer: Irv Fisher, API Alarm Inc.
- SIA seat: Ivan Spector, Sentinel Alarm Co.
- National associate representative: Peter Garnham, PG Security Associates
- National associate representative: Frank Pietrobono, Digital Security Controls (DSC)
Panasonic Opens Demo Facility at N.J. Hq.
Panasonic Security Systems has opened a new demonstration and training facility at its headquarters in Secaucus, N.J. The new facility features the latest advancements in video security and surveillance technology and showcases Panasonic’s extensive systems integration capabilities including the new CCTV, cellular, point of sale and medical systems products offered by the company. The facility also will be used for Panasonic’s ongoing professional education programs, conferences, and a lab for testing new and emerging technologies in a true working systems environment.The demonstration facility was officially opened at a ribbon-cutting ceremony conducted by Frank DeFina, president, Panasonic Digital Communications & Systems Co. Don Iwatani, chairman and CEO of Matsushita Electric Corp. of America, Panasonic’s parent company, participated in the ribbon-cutting ceremony with DeFina.
For more information contact Panasonic Security Systems at (866) PAN-CCTV or visit www.panasonic.com/cctv.
Indala Celebrates Record Growth at 2-Year Birthday Party
After being acquired by the ASSA ABLOY Identification Technology Group (ITG) in 2001, Indala, San Jose, Calif., celebrated two years of market growth and new product introductions.In just two years, Indala has introduced a number of new programs and products to better meet customer requirements. Examples include: two-day express production and shipping, custom card manufacturing, FlexKey, contact and contactless smart cards and readers, and CASI compatible products.
Indala’s second birthday was celebrated with a barbecue. Ice cream sundaes were served to the team by Marc Freundlich, president of Indala, and ITG president and CEO, Joe Grillo. “Without question, Indala has been a great contributor to the success of the Identification Technology Group,†Grillo said.
Child Kidnappers Are Parents’ No. 2 Concern
A new national survey commissioned by Honeywell, Morris Township, N.J., and the National Center for Missing & Exploited Children (NCMEC) shows abductions and kidnappings are the No. 2 safety concern among parents and grandparents, but reveals an alarming lack of information about child safety resources and prevention strategies.In response to the urgent need for more prevention information, Honeywell and NCMEC announced a new partnership to aggressively promote abduction prevention in communities throughout the United States.
A cornerstone of the partnership is Honeywell and NCMEC’s “Got 2B Safe! Think Smart and Take Charge!†child safety education program. The program, produced in association with Weekly Reader, was delivered to more than 25,000 third-grade teachers across the U.S. at the beginning of this school year. “Got 2B Safe!†contains safety tips, hands-on activities and valuable strategies for helping children be safer at school, at home and at play.
For more information, visit www.honeywell.com.
Experience Bosch’s New Web Site
The new version of Bosch Security Systems’ web site, www.boschsecurity.us, features streamlined navigation, product view pages, and keyword searches, which make finding information easier than ever.The header navigation includes a refined search engine, My Bosch, which allows users to customize the site to their needs. Dealer contact information for Bosch product lines is also located in the header bar.
In addition to providing quick links to products, making literature easier to find and simplifying product searches, Bosch has expanded its PhotoGallery to include product images from all product lines. Using PhotoGallery is easy, and registering is quick. Once images have been selected, users can place them in the cart and follow the trouble-free check-out process.
Visit www.boschsecurity.us.
Currie, Pesner Receive President’s Awards
The Canadian Alarm and Security Association (CANASA), Toronto, presented its President’s Award to Dave Currie, president, Security Response Center, Sarnia, Ontario, and Malcolm Pesner, vice president of operations, Sentinel Alarm Co., Montréal.This award was introduced for the first time in 1999 to recognize an association member who voluntarily demonstrates an unmatched level of commitment to the Canadian alarm and security industry and to the growth of CANASA.
In related news, Sandy Hislop, president of A.M. Business Enterprises, Hammonds Plains, Nova Scotia, and CANASA’s national president for the past two years, has been awarded the prestigious R.A. Henderson Award. The award is presented to a member of CANASA who has demonstrated extraordinary achievements within the alarm industry, and who has made significant contributions to the advancement of the interests of the entire industry.
The awards were presented during the Security Canada Central 2003 show in Toronto.
GBFAA Names Member of the Year
Bonnie Bradley, vice president and general manager of Bowman Security Systems in Augusta, Ga., was recently named Member of the Year by the Georgia Burglar & Fire Alarm Association (GBFAA). Bradley is the first woman ever to receive this award from GBFAA. She was presented a trophy in recognition of her honor during the GBFAA annual meeting held at St. Simons Island, Ga., in late October.
Bradley is chair of the False Alarm Dispatch Reduction Committee of GBFAA. In this role, she travels across Georgia working with police chiefs, sheriffs, 911 call centers, and other public safety and emergency officials to address the problems caused by false alarms and to discuss how the alarm industry is working to assist officials with this issue.
Three Companies Join ASSA ABLOY ITG
ASSA ABLOY AB has completed the acquisitions of Sokymat S.A., the Identification Technology Business of ACG (Advanced Component Group AG), and the majority position in OMNIKEY AG. All three acquisitions will become part of the ASSA ABLOY Identification Technology Group (ITG) with headquarters in Irvine, Calif.Sokymat, based in Granges, Switzerland, develops, manufactures, and markets transponders for access control cards, animal and food identification, industry logistics solutions, and other important applications for radio frequency identification (RFID).
ACG, based in Wiesbaden, Germany, is an independent distributor and technology provider in the market for RFID technology and smart cards.
OMNIKEY AG, also based in Wiesbaden, is a manufacturer of smart card readers used primarily for IT applications such as PC/network secure log-on, and authentication.
Per Mar Acquires Feel Safe
In December, Per Mar Security Services, Davenport, Iowa, acquired the accounts of Feel Safe Security Systems Inc. in Des Moines, Iowa. Feel Safe has served the security needs of a wide variety of alarm customers in the Des Moines area for more than six years. Feel Safe’s operation has merged with Per Mar’s branch office in Des Moines, where Pat Rabbitt is serving as the acting general manager. The addition of this business to Per Mar’s long-established operations in the Des Moines area increases the company’s presence and will enable Per Mar to provide even better service in western Iowa.
ADT Participates in Seaport Security Project
ADT Security Services Inc., Boca Raton, Fla., a unit of Tyco Fire & Security, announced that it has been selected as a major participant in a pilot project funded by the federal Department of Homeland Security to help design and develop comprehensive security solutions for cargo containers entering the Port of New York/New Jersey.Operation Safe Commerce will test and assess a variety of technical approaches for enhancing container security. The approach ADT and its team will demonstrate at the Port of New York/New Jersey is the capability to accurately monitor the end-to-end movement of cargo and containers throughout the global supply chain.
ADT will work in conjunction with other project team members to design and test an integrated security and communications platform that provides real-time, in-transit container information.
ADT will offer its expertise in video surveillance, access control, radio frequency identification (RFID) and intrusion detection systems in designing this comprehensive solution.
These and other security techniques that prove successful then will be recommended for implementation throughout the maritime commerce industry.
Annual Barnes-Buchanan Conference Set to Start
The Ninth Annual Barnes-Buchanan Conference for the security alarm industry will be held at The Breakers in Palm Beach, Fla., on February 19-21. The conference’s format will consist of a combination of panel discussions and presentations, with an emphasis on exploring new trends and opportunities within the industry.Hightlights will include Mike Barnes industry overview on Friday and Saturday’s golf and tennis tournaments.
For more information, contact Lisa Edelen-Barnes, at (636) 519-1905 or ledelen@barnesassociates.com.
20 Years of Great Ideas
Ron Davis, managing partner of Davis Marketing Group and a frequent keynote speaker at various industry events, has developed a new presentation, featuring some of the industry’s greatest thinkers and their greatest ideas over the last 20 years.Incorporated into a 45-min. presentation, Davis’ talk highlights the ideas of such industry notables as Peder Kolind, founder of Brinks; Leo Guthardt, one-time vice chairman of Pittway Corp; and Bruce Scott, founder of the “Scott Free sales program,†which became a model for hundreds of sales operations.
“This presentation is an exciting opportunity to share ideas with dealers of the great thoughts that have transcended the history of the industry,†Davis said.
Availability for Davis as a speaker and presenter at industry events is limited. Contact Davis Marketing Group at (847) 328-3690.
CANASA Announces 6th Annual Dealer’s Choice Award Winners
The Canadian Alarm and Security Association (CANASA), Toronto, announced the winners of the 6th Annual Dealer’s Choice Awards at the Security Canada International Security Conference and Exposition. The Dealer’s Choice Awards honor a selection of the industry’s best new products, which are judged by an industry panel.This years’ winners are:
- In the access control category: Rutherford Controls (RCI) - 6 Series Strike
- In the burglary category: GE Interlogix - Allegro
- In the specialty category: S.I.C. Biometrics - Cougar Fingerprint Reader
CPA, Financial Consulting Converge
Sobel & Co. LLC, Livingston, N.J., a CPA and consulting firm, and RAM Capital Corp., Bay Head, N.J., a banking and financial consulting firm, have combined their industry-specific services to provide security dealers, integrators, and investors with a bevy of solutions regarding acquisitions, financing, growth strategies, and more. The combined effort aims to aid owners and management with problems related to accounting, tax, finance and reporting issues and thereby help to increase profits.Assistance is available in financial analysis, liquidity/solvency analysis, company valuation, exit strategy, and more. Further, Sobel & Co., and RAM Capital offer acquisition management, post-acquisition services, and support services, including forensic accounting and litigation support.
For additional information, contact Sobel & Co., at (973)994-9494 or RAM Capital at (732)295-3300.
Security and the Law: Liquidated Damage Clause Upheld
In a recent decision, the Court of Appeals for the Sixth Appellate District affirmed a lower court judgment, which held that the company’s responsibilities did not extend beyond the four corners of the contract.In the case at hand, the plaintiff entered into an agreement with the alarm company to purchase and install an alarm system. The contract stated in bold provision, “Attention is directed to the warranty and other conditions on reverse side.†The reverse side of the contract contained a liquidated damage clause.
The alarm company received a low battery signal from plaintiff’s residence. As a result of storm conditions that night, the low battery signals were put on a lower priority than intruder alarms. The plaintiff’s home was broken into and the alarm company did not attempt to contact the plaintiff. The plaintiff filed the action against the alarm company for negligence and breach of contract. The lower court found the alarm company breached its contract for failure to inform plaintiff of the low battery, but limited the damages to the amount of the liquidated damage clause. The plaintiff appealed.
The Appellate Court indicated that while some jurisdictions have rejected such contract provisions on policy grounds, clauses in contracts providing for reasonable liquidated damages are recognized in Ohio as valid and enforceable.
The court concluded that the contract was consistent with the conclusion that it was the intention of the parties that the damages in the amount of $250.00 should follow the breach thereof. The plaintiff could have negotiated for a greater amount pursuant to the express terms of the contract, and chose not to do so.
The Appellate Court therefore upheld the judgment of the lower court.
Technology at Work: RFID Moves to the Head of the Class
Enterprise Charter School, Buffalo, N.Y, is taking a fresh approach to learning and school administration. They sought a solution that could utilize RFID to streamline the school’s processes while also testing the leading edge of technology in education.RFID automates the identification of people and assets. By implementing an RFID-enabled, universal ID card, the school’s attendance has been streamlined.
“Barcode, smartcard, and magstripe were reviewed. In all cases it lacked the security and universal capabilities of RFID,†says David M. Straitiff, president and CEO of Intuitek, the Buffalo, N.Y.-based systems integration and product development company.
“By using the next generation beyond mag stripe for access control and security, the school can make the investment in a single technology and use one card to keep track of everything from attendance records, library books and cafeteria purchases,†says Kelly Stark, access control business unit manager, TI-RFid Systems, New Orleans.
The client was interested in streamlining attendance-taking, but the fact that RFID could couple student, faculty and staff time and attendance with building access control was exceptionally interesting to the client. In addition, they were looking for a solution that could address their immediate needs, but remain scalable and flexible enough grow into other functions within the school. The idea of a universal ID card that could carry a unique identification really struck a chord with this client.
What was the ultimate solution?
“One of our initial challenges of providing a universal card solution at Enterprise Charter School was the integration with the existing access control system. The Texas Instruments (TI) S6400 access control readers and vicinity cards became the key to our solution by providing a seamless integration with the security system while giving us the flexibility of an ISO15693 compliant card,†Stratiff says.
First was issuing students and staff a Texas Instruments RFID card compliant with the ISO15693 standard. These cards are printed on a DataCard printer customized by Intuitek to support RFID reading and writing. This printer is coupled with Intuitek’s ID Card generating software that prints, indexes, and encodes an RFID card in one step.
In practice, the cards can be used in multiple applications with a range of ISO15693 compliant devices, such as building entrances and two Intuitek kiosks, which are RFID-enabled. The latter runs the attendance application, where students wave their ID card to be checked into school. They also serve a second purpose as a general information kiosk when not used for RFID applications.
The client is considering plans to add readers in the cafeteria for lunch programs, in the library for book check-out, and in the computer lab for access control using the same universal ID card.
“We feel this technology allows us to streamline our attendance and building security needs while reducing our administrative time,†says Gary Stillman, principal of Enterprise Charter School.
CDOT Keeps Video Images, Text Messages Moving
The continental divide that runs through the Rocky Mountains is the heart of Colorado’s highway system and one of the country’s major crossroads for ground transportation. This, combined with a continually growing population and the extreme weather conditions that can occur simultaneously on any given day, make it easy to see why traffic control is a major issue in Colorado.The Colorado Transportation Resource and Information Partnership (TRIP) set out to centralize the vast amount of traffic, airport, public transportation and incident reports - plus weather data from Colorado’s 13 separate transportation communication centers across the state - so that information would be disseminated from the Colorado Transportation Management Center (CTMC).
The CTMC utilizes a highly sophisticated network of surveillance cameras and switchers employing American Fibertek Inc.’s (Somerset, N.J.) fiber optic transmission systems to monitor and manage Colorado’s roadways. The system also includes programmable message boards, highway advisory radio stations, information kiosks, weather stations, loop detectors, vehicle location systems, phone recordings, fax and TV.
News Brief
International Electronics Inc. announced the hiring of Peter Demakis as chief operating officer. In addition to his operational responsibilities, IEI expects Demakis to play a leading role in the development and execution of its industrial product strategy.
In order to meet the growing demand for transmitting CCTV signals via standard phone wire, Network Video Technologies (NVT) has relocated to a newly expanded, former IBM facility in Menlo Park, Calif. NVT also announced that it has hired Richard Ott as manager of government and Southeastern district sales.
Cansec Systems Ltd., has contracted Rodkin Sales Agency to develop distribution partnerships across North America. The initial focus will be on security and locksmith distributors in Canada. Entry into the U.S. market will follow in early 2004.
