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SMART IP VIDEO, Video Surveillance

The Security Industry Takes Bold Steps to Activate All Business Opportunities

Source: Thanks: ASMAG/Allan McHale, Director of Memoori

The broad analysis from Memoori “Executive Brief on Business Opportunities in the Security Industry”, during the first six months of 2010, proves that this industry is in good shape despite the battering it has had over the last two years. It will need to be, because during this month the prospects of the world economy returning to stable growth have taken a hit. It cannot therefore expect relief delivered through a more buoyant economy. The emerging markets of China, India and Brazil look set to continue growing but will not fill the gap for western based manufactures. It will therefore need suppliers to grind more out of fewer prospects. This means a continuing focus on all aspects of the product mix, but particularly delivering more benefits to customers and ones that reduce their operating costs and provide a healthy return on their investment. Nothing less will ensure a profitable growing business for suppliers.
The last six months have shown that security suppliers are working hard on all those strategies that can deliver new business opportunities. This has ranged from buying companies and assets, to forming alliances with other suppliers and getting new finance to implement product development and marketing and promotion.Memoori‘s reports show that all these activities are well up on the same period in 2009. It is a real credit to this industry that despite some of the worst trading conditions and tight money supply in the last ten years, it has performed so well.

Nine merger and acquisition transactions in June were more than double last month and 50 percent up on the same period in 2009. Consolidation activity has regained its momentum this month and the aggregate for the first six months of 2010 is still ahead on the same period last year. However the A&E Business which security has a lot in common with, is still down on 2009 so by comparison the security industry is performing well. There are two mergers of note this month which stand out for different reasons. Nice Systems because of completing four strategic buys in 10 months and the sale of Protection One for US$828 million at a very healthy exit price confirming that nothing is being given away yet.

Read more: http://www.asmag.com/showpost/9886.aspx

Thanks: ASMAG/Allan McHale, Director of Memoori



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