Commercial Integrator + Security Sales Sept/Oct 2023 - 104

SSI
2023 ACCESS CONTROL
nitely a mixed bag with a roller-coaster
ride of good news, bad (or at least not so
good). For example, while access control
business growth rates are higher in the
long term, they are about flat compared
to a year ago. And although the average
number of access control installations
being performed has declined, integrators
are charging more for both residential
and commercial systems. Again,
while the average profit margin fell off,
the price integrators are getting for both
residential and commercial systems per
opening rose.
On the technology side, integrating
access control with video is red hot, with
wireless, biometrics and smart locks also
stimulating sales. But once again repAverage
Sales Price for
an Access Control System
Residential $6,067
Commercial $54,169
Industrial $41,559
Project prices rose for both residential
and commercial. Integrators passed
along rising costs to customers.
Multiplying those by installation
averages yields $64,310, $1.2M and
$602,606 residential, commercial and
industrial monthly revenue generation.
Average No. Doors/Entryways
on Typical Job
Residential 10
Commercial 30
Industrial 36
Commercial (+9) is the only category
to see a rise in the average number of
access-controlled openings. That may
be a reflection of thousands of workers
returning to offices and jobsites as the
pandemic-induced work-from-home
trend reversed or went hybrid.
NAPCO: How a Single Source Supplier
Can Share in Your Success
Average Access Control Project
Gross Profit Margin
25.8%
While many integrators raised prices,
they may need to push it even higher
as the average gross profit margin
dipped 2 percentage points after losing
almost a half-point in 2021. Multiplying
the average profit margin by the
residential, commercial and industrial
access control project revenues in the
previous graph computes to monthly
gross profits of $16,592, $309,600 and
$155,472 in residential, commercial and
industrial business.
Currently at $10 billion, with 2029 projections of $15
billion, access control is one of the fastest growing,
all-encompassing segments of today's increasingly
integrated security industry. With technology evolving
faster in a year than in decades past - driven by
advancements in computing, Internet and network availability and bandwidth -
new opportunities in hardware, software, communications and wireless solutions
have skyrocketed. Automation and coding are more accessible. Cloud-based
applications are all but the norm (adoption accelerated by COVID-19). AI programs
are growing in implementation and popularity.
Sadly, escalating violence, too, is yet another growth driver for access control
and security management systems - i.e., limiting authorized access, protecting
occupants, managing visitors and threat levels, and intelligent video processing
in real-time for directing response and forensically to tell the tale. An endless
epidemic of violence and active shooter situations in schools, office and public
spaces has heightened the demand for physical security and electronic access
control solutions.
While the lure of opportunity and subscription-based business has attracted
Average Price Charged Per Door/
Entryway for Access Control
Systems
Residential $467
Commercial $1,806
Industrial $1,154
The results again show how many
integrators have raised their prices,
with increases shown in both residential
(up $209) and commercial (up $253)
access control business. Somewhat
inexplicably, likely due to the survey
sampling, industrial fell $171.
new manufacturers and large tech players to the security marketplace, the real
litmus test is their staying power. I've heard it well said, software is software, but
hardware is hard. And the resulting churn of new proprietary products, revisions,
plus the ebb and flow of discontinued product lines can cost integrators/dealers
incalculable time and money. Not surprisingly they're continuously looking for a
single source/manufacturer that considers access control, video and security
synonymous and can reliably deliver a full range - from traditional enterprise-level
systems to the massive SMB volume - of solutions.
For 50-plus years, NAPCO Security Technologies has been 100% dedicated
to professional, long-lived security products, with expertise in labor-saving,
code-compliant designs. Recognizing there's no one-size-fits-all solution, Napco
continues to expand offerings, with integrated online access locks; embedded
software-free all-in-one Linux-based access panels; and Continental Enterprise
Systems (for which its access is best known). Recently rebranded Napco Access
Pro, it can proudly attest to offering " Every Access Solution From One Brand " and
dependably doing so for the long run.
- Judy Jones-Shand, V.P. Marketing, NAPCO Security Technologies
104 Commercial Integrator+Security Sales & Integration | Sept/Oct 2023
Commercial Integrator + Security Sales Sept/Oct 2023

Table of Contents for the Digital Edition of Commercial Integrator + Security Sales Sept/Oct 2023
