| Investment Trends For Home Security |
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| Written by Dwayne Stoltzfus |
| Monday, 14 June 2010 20:48 |
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The residential burglar alarm and monitoring market is on track to grow 9 percent in 2010, and 27 percent over the next three years, according to Park Associates, leaders in research and analysis in digital living technologies. This is a much-needed projection for the multi-billion dollar industry that was deeply affected by the economic downturn.
The residential burglar alarm and monitoring market is on track to grow 9 percent in 2010, and 27 percent over the next three years, according to Park Associates, leaders in research and analysis in digital living technologies. This is a much-needed projection for the multi-billion dollar industry that was deeply affected by the economic downturn. Home security sales across the United States took a dive in 2008 and 2009 primarily due to the real estate market's decline. A hurt economy meant far fewer new homes were being constructed, which in turn, resulted in fewer new customers. A widespread tightening of consumer budgets also caused potential sales to slow. When an existing home with an alarm system is sold, alarm companies have the opportunity to make two new sales. First, the homebuyer is most likely going to retain the existing system and become a new customer. Second, the home seller is likely to hire the alarm company again to install a system within the new house. According to the Security Dealer Magazine (SDM), home alarm security systems continue to be a necessity in America's homes and businesses, even in these turbulent and unknown economic times. The proof is found in the solid numbers, showing a 6 percent growth in the monthly monitoring rate, and a 2 percent rise in the total annual revenue. Many companies felt the painful affects of the global recession. There was a new sharp focus on customer retention as many customers struggled to pay everyday bills. As with any industry, companies that prepared early by improving operation efficiencies and cost cutting, managed to weather the harsh economic storm. Recessions often force companies to think more critically about spending their time and money in both efficient and profitable ways. They bring new thinking and change as well. The outlook for 2010 in the alarm industry remains relatively positive. More than half of all alarm security dealers, according to the SDM, believe that after a better year in 2009, the next year holds potential for increased revenues. Parks Associates estimates the U.S. residential intrusion and monitoring market will account for more than $9 billion in 2010. Nearly 75 percent of the consumer-level spending will come from monitoring revenues ($6.7 billion), while just under 20 percent will come from hardware purchases ($1.8 billion), and only 6 percent of revenues will come from installation labor ($521 million). Ultimately, the alarm industry will continue growing and morphing as it looks to bounce back from an unusually poor year. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Looking to find the best deal on Home Security Alarm Systems, then visit www.smithmonitoring.com to find the best Dallas Home Security Alarms. |