VeriChip - Competitors

VeriChip Competition

Now Viewing VeriChip's competition in: Security System Services (primary)

Recent Developments

Columbus Considers Verified Response Policy - Columbus, Ohio, is the latest US city to consider a policy called verified response, which requires confirmation that police are required at the scene of an alarm before they're dispatched. According to The Columbus Dispatch, 30 US cities have similar policies. Columbus police are concerned about overtime costs that pile up quickly when officers respond to multiple false alarm calls.

Experts Concerned About Retail Losses - Security experts are concerned that the sour US economy may contribute to increased theft at retail stores. While retail theft fell in 2007, capping a six-year downward trend, some industry experts suggest that current economic circumstances may mean that the trend stops in 2008. Security company-sponsored research, such as that by ADT, combined with increasing anecdotal evidence of rising retail thefts, may boost interest in retail security system installation.

Realtor Organization Predicts Mixed Market - The National Association of Realtors (NAR) predicts a return to growth for existing home sales in 2009, but continued declines in the sales of new homes and housing starts. Security system companies rely on a healthy housing market, as new customers often sign up for services when buying a home or when a home is first built. According to NAR, existing home sales will rise 5 percent in 2009 compared to 2008, housing starts will fall 9 percent, and new home sales will fall 3.4 percent. The 2009 numbers for housing starts and new home sales follow significant 2008 declines.

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.

Full Industry Overview For Security System Services

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.