Security System Services
Competitive Landscape
Demand is driven partly by home sales, new home construction, and new commercial and office construction. The profitability of monitoring companies depends on the volume of customers, as most costs are fixed. Large companies have advantages of scale in operating monitoring centers and in national advertising and brand recognition. Small companies often compete by selling customer contracts to the large monitoring companies, or reselling the monitoring companies’ services, which they buy wholesale. The industry is labor-intensive: average annual revenue per employee is about $110,000.
Opportunities
Demographics Favor Security Growth - Senior citizens and dual-income families are proving to be attractive target demographics for security companies. As more seniors remain at home later in life, they...
Business Challenges
Demand Linked to Home Sales, New Home Construction - Homeowners are most likely to install a security system when they buy or build a home. About 20 percent of US households are protected by...