With more than a month in the books for the Trump Administration, the overall feeling in the security industry runs the gamut from “looking forward” to “very pessimistic” – with “wait and see” squarely in the middle.
In our recently closed SD&I Fast50 survey of security dealers and integrators, I specifically asked respondents – generally security business owners and high-level managers – to answer the question: What changes do you foresee with the recent leadership changes in Washington? Despite the range of knee-jerk opinions on the overall effect, when you drill down, the prevailing attitude among our industry is optimism, as industry business owners and managers see many areas that signal potential growth of our industry.
There’s very little chance that you care about my opinions of President Trump and his policies, so let’s take a look at a handful of the responses of your peers (anonymous quotes for obvious reasons), categorized to make it easy:
On General Business Benefits:
- “The key thing is the reduction in taxes and abusive regulations, including the ACA (Affordable Care Act) – which has increased the overhead of most small businesses from 5 to 15 percent.”
- “There is still much to wait and see, but we imagine there may be some changes to the corporate tax code at some point – which could have an impact on our company’s investment strategies.”
- “Less regulation and taxation can help provide opportunities to invest back into the company, such as adding staff or opening a new office. Less time working on HR and legal compliance and more time working on customer solutions should help increase sales and profits.”
On Expanding Markets:
- “Many are predicting tremendous growth for the energy, financial, industrial/manufacturing and construction sectors, to name a few – all sectors that have traditionally been good for the electronic security industry.”
- “I imagine there will be favorable changes within the real estate/builder industry. The incoming leadership has extensive involvement in this industry and will work to accommodate a current lack of available new homes.”
- “Our business is largely driven by the economy and housing market...if they react favorably to the Trump Administration, that will bode well for our business.”
- “We foresee a shift in federal spending towards infrastructure and the military.”
- “I believe federal funding for our nation’s major military facilities will increase drastically.”
- “We have a very heavy presence in the oil and gas vertical, and we are already seeing customers moving on recent decisions made by the Trump Administration.”
On Technology:
- “Although not predictably in the near future, we need to be mindful of any embargoes that the new administration may impose on foreign products relative to our industry.”
- “There is the potential for a significant impact on the import of Chinese-built security products, especially those targeting the ultra low-cost segment of the industry.”
- “We believe President Trump will invest heavily in border security initiatives, which includes IP surveillance systems, intrusion detection sensors and drones.”
On Specific Security-Related Policies:
- “We’d like to see regulation eased a bit. For example, some jurisdictions require near 15 separate steps just to get a license in their state. If the new administration could help with that, then business could be ramped up, and that’s a good thing all around.”
- “With a Republican majority in Congress, the consensus is he will use the next two years to focus on domestic issues that may ramp up building and infrastructure improvements. If so, those initiatives could translate into additional business opportunities for security firms.”
- “Police forces will have a greater focus on immigration and the threat of terrorism; and companies will find that they need to protect themselves more than ever.”
- “Trump supporters feel they will be protected by the President and their guns, and therefore do not need security systems.”
The Last Word
Whether you are optimistic or pessimistic, everyone should take this final comment to heart: “No matter who serves me in Washington, I will always embody the American spirit and never take it for granted.”
Paul Rothman is Editor in Chief of Security Dealer & Integrator (SD&I) magazine. Access the current issue, full archives and subscribe at www.secdealer.com. Pick up a free copy of SD&I at ISC West Booth #17141.
