DALLAS – The integrators, suppliers and other industry stakeholders who make up the PSA Security Network descended on the Hyatt Regency in Dallas this week for a spirited four days of networking, education, keynote speeches, and more.
The event’s annual headliner is its State of the Industry panel, which again this year provided some unique insights into some of the top challenges that security integrators are navigating during the course of their travels on the path to greater profits.
This year’s panel, moderated by PSA CEO Matt Barnette, featured Security Industry Association CEO Don Erickson, Imperial Capital’s John Mack, Sage Integration’s John Nemerofsky, and Kumar Sokka, the President and General Manager of LenelS2.
Two hot-button topics were discussed at length during the State of the Industry – the growth of artificial intelligence and workforce development. These are obviously two topics that many integrators are struggling with from adaptation and business standpoints.
In the area of workforce development, the big news was Erickson and Barnette announcing a formal partnership between PSA and SIA on a college outreach program designed to inform students of the potential value of working in this industry.
“To me, it comes down to one, simple approach – although it takes a lot of resources. That is the college outreach piece,” Erickson explained. “We are not penetrating college campuses enough with the value of working in this industry. That’s why we are happy to announce today that PSA and SIA are joining to invest in a serious and rigorous effort to prioritize certain college campuses, community colleges, vocational schools, and perhaps even high school campuses to talk about the value of the industry and why it is a compelling place to work, because as you all know, we are competing against every other industry. PSA and SIA coming together to move this forward is an important piece.”
“No one organization can do this,” Barnette added. “That’s why we have collaborative efforts with SIA, ESA (Electronic Security Association), and NSCA (National Security Contractors Association) because we need to pool our resources in order to make change happen in this industry.”
Erickson concluded that details on the partnership and how the outreach program would work are still being hammered out, and more information will be available soon.
Update on Honeywell’s Acquisition of LenelS2
The technology and workforce development talk was in plentiful supply, but thankfully, Barnette snuck in a final question to Sokka during the State of the Industry, noting that with many LenelS2 partners in the audience, many were eager for an update on Honeywell’s acquisition of the company from Carrier.
“Obviously, I get asked this question all the time, and I think it's good for all of us if we take a step back and look at [how the acquisition], it is a really positive thing for the industry,” Sokka said. “This industry has had a lot of success, it has a lot of potential, and there is a lot more that can happen. Honeywell has carved out about a $25 billion investment to go after and really drive growth in three sectors: building automation, energy efficiency, and aerospace. Its largest and first acquisition was Carrier’s access control businesses. Think about that – it is like doubling down not only on what our industry can accomplish but also more beyond security…I think it is a good thing for our industry.”
Sokka went on to explain that the two organizations coming together can create a more complete understanding of the data created by the many systems in buildings, including fire, lighting, HVAC, and access control. “When you look at things like megatrends, sustainability, efficiency, you are trying to leverage more information,” he explained. “The race to this AI concept is a race to how much data and information can you actually get. Bringing two organizations together, when you look at buildings across the world – the two organizations have a fair amount of buildings – you get a lot of data. And what you can do with that data is solve a lot of problems.”
When pressed to provide a timeline for the completion of LenelS2’s move into Honeywell, Sokka could not provide specifics, but he did note that all indications from Carrier most recent earnings call indicate the unification will be completed in the next few months. “The focus right now is to make sure our community of integrators and users don’t feel a difference on day one,” he said.
Top Partners, Integrators Honored
In addition to its annual honoring of its top suppliers and vendors, PSA announced the winners of its top integrator awards at TEC.
Sage Integration was named the Bill Bozeman Integrator of the Year. In 2023, Sage grew revenue by 14.6%, EBITDA by 11%, RMR revenue by 16.7% year, and added 35 employees. The company is extremely involved in the industry, with active roles in SIA, the Foundation for Advancing Security Talent (FAST), ESA, PSA, Mission 500, and others. Sage Integration COO John Nemerofsky was joined by 13 members of the Sage team on stage to accept the award.
Additionally, in the small systems integrator category, AK Technologies of Austin, Texas, was honored after experiencing 32% year-over-year growth in 2023. After more than doubling its year-over-year revenue in FY 2024, Alscan Inc., of Atlanta, was named the medium systems integrator of the year; and Tech Systems Inc., also of Atlanta, was named the large systems integrator of the year.
Paul Rothman is Editor-in-Chief of Security Business magazine. Email him your comments and questions at [email protected]. Access the current issue, archives, and apply for a free subscription at www.securitybusinessmag.com.
