Tyco Competition
Now Viewing Tyco's competition in: Security System Services
Recent Developments
Nonresidential Construction Growth may Slow - Growth in US nonresidential construction spending, a driver of demand for security systems, may slow in 2008 due to a possible excess supply of shopping malls and office buildings, according to <em>Commercial Property News</em>. The amount of office space sold fell 42 percent year-over-year in fourth quarter 2007; large retail property sales dropped 31 percent. Demand drove 36 percent of the space built in 2007, but will account for only 15.7 percent of the space planned for 2008.
Interest in Health Monitoring Solutions Increasing - Demand is increasing in the US for home health monitoring solutions, according to ASMAG.com. Technology such as the Personal Emergency Response System (PERS) - an electronic device designed to summon help in an emergency - is in demand, especially among the elderly who wish to stay at home rather than enter assisted care facilities. Security system services are likely to benefit as aging baby boomers adopt health monitoring solutions.
Legislation may Increase Business at Universities - </strong>The House passed a bill in February 2008 that promotes the professional installation of fire prevention technologies in university buildings. The College Life Safety and Fire Prevention Act would establish a demonstration incentive program within the Department of Education to promote installation of fire alarm detection systems, or other fire prevention technologies, in qualified student housing, dormitories, and other university buildings. Security system services are likely to benefit if the bill advances through the Senate and is signed into law.
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.
Security System Services Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US investigation and security services is forecast to grow at an annual compounded rate of 3 percent between 2007 and 2012.
Security Services Growth Steadies
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Driven by home sales
- Need expertise, good marketing
- Risk: Housing slump lasts years
Industries Where Tyco Competes
- Security Products & Services
- Security Products (primary)
- Industrial Manufacturing
- Fluid Control Equipment, Pump, Seal & Valve Manufacturing
- Rubber & Plastic Product Manufacturing
- Wire & Cable Manufacturing
