Industry Associations’ Joint Survey Results Reveal COVID’s Impact

In the last few weeks, TMA joined with ESA and SIA to conduct a nationwide survey of members in order to better gauge the impact COVID-19 has had on electronic security and life safety businesses. This survey confirms the electronic security and life safety is being negatively impacted despite its role as an essential service in our economy.

Quick Figures:

  • 21-30% loss of revenue is the median reported for all respondents
  • Less than 4% of respondents were denied the “essential service” label in their jurisdictions
  • 31-40% denial of access to job sites for service/testing/inspections/maintenance was the median for residential integrators, compared to 21-30% for commercial integrators

A cross-section of the industry represented itself in the responses as follows:

Market Segments Responses
Residential Integration 27%
Commercial Integration 49%
Monitoring Center 11%
Manufacturer 41%
Distributor 11%
Manufacturer Representative 5.7%
Individual/Specifier/Consultant 19%
Other Security Solution Provider 19%

Impact on the Industry Overall

Across the country and in every vertical, our industry is experiencing negative effects on revenues from state and local executive orders for residents to practice social distancing. Survey respondents reported a median loss of revenue between 21 and 30% due to the executive orders. More than 60% of respondents reported losing this much or more of their revenue.

While most companies are experiencing declining revenues, some are impacted more than others; about one in five respondents reported a loss of more than half their company’s revenue.

Although revenues have dropped, most companies are not hindered from doing business due to “shelter-in-place” and business closure orders. Less than 4% of survey respondents reported that their businesses were denied access as an “essential service” in their jurisdictions.

More than 56% of respondents reported having to reduce hours or layoff less than 10% of their employees. On the other end of the scale, 13% of all respondents were forced to reduce hours, furlough or layoff more than 90% of their employees. Less than 4% of survey respondents reported that their businesses were denied access as an “essential service” in their jurisdictions.

Impact on Residential and Commercial Integrators

The median reported revenue loss due to COVID for residential and commercial integrators was 21-30%. The majority of integrators – more than 70% – lost less than half of their revenue.

The denial of access seems to contribute to income loss for most integrators, as more than 80% report some level of interrupted access.

Some business owners might wonder which verticals are faring better than others, as many companies have already pivoted into the commercial space. According to the survey results, the differences are significant but not as drastic as you might expect. The median loss of revenue reported by residential integrators was 31-40%, while the median loss of revenue reported by commercial integrators was 21-30%.

The reported levels for denial of access to job sites for service/testing/inspections/maintenance in each segment correlate with these figures, with residential integrators reporting a median denial rate of 31-40% while the median denial rate for commercial integrators was 21-30%.

Survey responses confirm the observation many have already made: gaining access to residential customers’ homes has been more difficult during this time than access to commercial properties, many of which are unoccupied due to social distancing measures. This could contribute to lower demand for residential services during the pandemic.

When asked how industry associations could continue to help businesses weather this storm, respondents most frequently expressed their desire for opportunities to connect and continued updates on the latest information related to winning business strategies, economic assistance and industry trends.

Visit TMA’s COVID-19 Resource Center. We encourage regular review of the resources we offer, and we will continue to keep members informed on all the latest developments that impact your business.

UL Revises Virtual Workplace Guidelines

Underwriter’s Laboratories (UL) has revised its March 16th Virtual Workplace Guidelines and seeks feedback from security industry practitioners prior to publication.

Since the initial release of the Guidelines, it’s become clear that health risk mitigation measures will likely be required for longer than any of us had anticipated. UL now seeks feedback from industry stakeholders that rely on UL Certifications as part of their own risk management programs to review the updated Guideline revisions, which are intended to better define virtual workplace security measures.

Please review the revised draft of the Virtual Workplace Guidelines.


Steve Schmit, Senior Staff Engineer, UL, will review the draft Guidelines TMA’s
Virtual Town Hall on Monday, April 20th at 11:00AM (EDT). You can share your questions and comments during the Virtual Town Hall and/or send your comments directly to Steve at steve.a.schmit@ul.com.

UL Seeks Feedback on Revised Guidelines

On March 16th, in response to a request from TMA, UL published a statement on Monitoring Station Certifications and continued operations as communities work to contain the impact of COVID-19. An initial set of guidelines for virtual workplaces was included for stations considering at-home operators as part of their contingency planning.

Since then, it’s become clear that health risk mitigation measures will likely be required for longer than any of us had anticipated. UL now seeks feedback  from industry stakeholders that rely on UL Certifications as part of their own risk management programs to review the updated Guideline revisions, which are intended to better define virtual workplace security measures.

Review the revised draft of Virtual Workplace Guidelines that incorporate these initial suggestions. Because this version of the Guidelines is more technically specific than the original, UL would welcome industry feedback prior to publication.

Please send any input you may have directly to Steve Schmit, Senior Staff Engineer, UL.

Steve will also discuss the revised Guidelines and UL’s direction in the COVID environment during TMA’s Virtual Town Hall on Monday, April 20th.

TMA Members Named SSI’s SAMMY Award Winners

Security Sales & Integration announced the winners of its 2020 Sales and Marketing Awards (SAMMYs). The SAMMY Awards program, now in its 25th year, is the only one of its kind in the security industry to recognize and honor dealers and integrators for their marketing, business, installation, and overall excellence.

Typically hosted as a gala affair on the eve of ISC West in Las Vegas, the coronavirus outbreak forced ISC West 2020 to be postponed, moving the SAMMYs to the safe confines of the Internet.

Please join in congratulating the TMA members who won a 2020 SAMMY Award are:

Best Website Design
AvantGuard
Ogden, Utah

Best Promotional Giveaway Item
Wayne Alarm Systems
Lynn, Mass.

Best Promotional Video or Audio
Guardian Protection Services
Pittsburgh

Best Sales Brochure
Acadian Total Security
Lafayette, La.

Best Display Advertisement (Print or Electronic)
Acadian Total Security
Lafayette, La.

Best Overall Integrated Marketing Program Large Company
STANLEY Security
Fishers, Ind.

Installer of the Year (Large Company)
Vector Security
Pittsburgh

Integrated Installation of the Year (Large Company)
ADT
Romeoville, Ill.

Attend TMA’s Weekly Virtual Town Hall Meetings

To date, TMA has hosted two Virtual Town Hall meetings and we have an additional four scheduled. Attendance has been high and the interaction between members and key subject matter experts has been open and compelling, as we had hoped.
 
We will be hosting meetings at 11:00AM [ET] on each Monday of April [6th, 13th, 20th, and 27th). We may extend the schedule based on member needs.
 
Due to the outstanding support we’ve received for these meetings, and some concerns over the bandwidth and security of the Zoom platform, we have decided to present all future meetings on GoToWebinar.
  • If you have already registered for future meetings, you don’t need to do anything. TMA staff is transferring all current registrations to the new platform and you will receive a new confirmation with login instructions from GoToWebinar shortly.
  • If you have not registered, and would like to take part in our future Virtual Town Hall meetings, please register online.