2018 Year in Review: The 10 most read stories of 2018

As we get ready to turn the page on another year, it’s time once again to take a look back at the events that shaped our industry throughout the course of 2018. There has certainly been no shortage of significant news over these past 12 months, ranging from the continued consolidation of manufacturers and systems integrators to the emergence of new market entrants and technologies. Beyond the typical M&A maneuvering and tech trends, 2018 will also likely be remembered by many in the industry for the impact that politics and government regulation had on the market.

In what has become an annual tradition here at SecurityInfoWatch.com (SIW), here are the top 10 most read stories of 2018:

1. Congress bans federal purchases of products from Hikvision and Dahua: Citing cybersecurity concerns, Congress over the summer banned federal agencies from purchasing video surveillance products from two of the industry’s largest manufacturers – Hikvision and Dahua. A third company, Hytera Communications, was also included in the ban. The ban was initially introduced as an amendment to the National Defense Authorization Act in the House that was later also approved by the Senate and signed by President Donald Trump. For their part, each of the companies named in the ban has defended the cybersecurity of their products and has even offered to work with lawmakers to allay their concerns. For now, however, the ban remains in place and its long-term impact on the market will likely be significant.

2. Year of the rebrand: Reviving one the home security industry’s most well-known brands, MONI Smart Security and LiveWatch, the company’s DIY subsidiary, announced in February that it had reached a licensing agreement with The Brink’s Company to rebrand the entire organization as “BRINKS Home Security.” Click here to listen to our podcast with BRINKS Home Security President and CEO Jeff Gardner at ISC West, where he discussed the decision to bring back the BRINKS name.

Of course, the Moni rebrand was just one of several major name changes that occurred in the security this year. The Honeywell Homes product portfolio and ADI distribution business, which was spun-off from Honeywell late last year, officially became an independent company in 2018 and took on a new name as well: Resideo. Also in the residential security sector, the recently merged Resolution Products and ipDatatel were rebranded as Alula, reflecting the name of their parent organization, Alula Holdings. Among distributors, Anixter put the finishing touches on its rebrand of the former Tri-Ed and Clark business names.

In addition, one of the industry’s premier events, the ASIS International Seminar & Exhibits, officially became the Global Security Exchange (GSX); and our very own Security Dealer & Integrator (SD&I) magazine announced this month that it will officially become Security Business magazine, effective with the January 2019 issue.

3. Amazon’s shadow looms large over residential security market: The online retail giant continued to make waves in the home security market this year with several significant moves. The company further expanded its technology footprint in the space by acquiring video doorbell maker Ring in February and the proceeded to launch five new residential security packages in late April. Paul Rothman, Editor-in-Chief of Security Dealer & Integrator (SD&I) magazine, also took an in-depth look at “The Amazon Effect” in his August issue cover story.

4. UTC announces major reorganization: Late last month, UTC announced it will split into three independent companies following the closing of its $30 billion acquisition of aerospace firm Rockwell Collins. The company’s Climate, Controls & Security (CCS) business – home to such security industry stalwart brands as Lenel, Interlogix and S2 – will be spun off and renamed as Carrier. Greg Hayes, UTC’s Chairman and CEO, also confirmed that the company is looking to sell the Chubb Fire & Security Field Services businesses. Additionally, UTC garnered headlines earlier this year with the S2 acquisition. Read SecurityInfoWatch’s Q&A with Alex Housten, the VP and GM for Fire & Security Products at UTC Climate, Controls & Security, who discussed the strategy behind the acquisition.

5. The U.S.-China trade war: While the full ramifications of the Trump Administration’s tariffs on Chinese goods have yet to be determined, you can rest assured they will have an impact on security manufacturers and systems integrators. In the June issue of SD&I, Paul Rothman and SIW/SD&I contributor Steve Surfaro took an exhaustive look at the number of security products covered under the White House’s initial list of tariffed goods and the effect it could have on the industry. Surfaro has also written several follow-up articles as the Trump administration has updated the list of covered products, including:

Following a recent meeting between President Trump and China President Xi Jinping at the G20 summit in which the two leaders declared a truce in the trade war, some are hopeful that the countries can come to a formalized agreement that puts an end to the tariffs once and for all – but it remains to be seen what, if any, deal will actually come to fruition.

6. SD&I’s annual Fast50 Awards: Now in its eighth year, the SD&I Fast50 brings recognition to the fastest growing security integrators in North America. In addition to the annual rankings, the aforementioned Paul Rothman spoke with several of this year’s honorees to discuss the trends impacting their businesses and to learn about the strategies they have used to accelerate growth. Additionally, Derek Radoski’s acceptance speech at ISC West for top-ranked integrator TIC was must-see TV.

7. Integrators continue to consolidate: The security industry is certainly no stranger to consolidation; however, 2018 saw a number of significant M&A deals among some of the major players in the systems integration space. Convergint Technologies, which entered into a new financial partnership with Ares Management in February, substantially increased its geographic footprint both in the U.S. and globally as it acquired nine different companies this year, including; AlphaCorp, Astrec Security, Integrators Australia, Access Control Technologies, Commercial Systems Group, Integrated Security Solutions, SI Technologies, and Firstline Security Integration.

Not to be outdone, ADT also made a number of acquisitions in 2018 to strengthen their expertise in the space. By far the largest was the acquisition of Red Hawk Fire & Security in October, which is expected to bring ADT’s total commercial business to 25% of the company’s revenue. The company’s March purchases of Washington-based systems integrator Aronson Security Group, Inc. (ASG) and ACME Security Systems were among its other commercial acquisitions.

In another major move in March, Securitas Electronic Security acquired the Kratos Public Safety and Security division from Kratos Defense & Security Solutions in a deal reportedly worth approximately $70 million, creating the fourth-largest security systems integrator in the world.

8.GDPR takes hold: Cyber and physical security professionals alike have been gearing up over the past several years for the European Union’s General Data Protection Regulation that went into effect this past May, and the ramifications of the new law are already being felt by a number of organizations. Earlier this summer, a shareholder of Nielsen Holdings, the market research firm best known for tracking television show ratings, filed a lawsuit against the company claiming that its senior leadership intentionally misled investors about their preparedness for GDPR. If you are still unsure about how GDPR impacts U.S.-based companies, check out this article from the May issue of Security Dealer & Integrator magazine that explains why GDPR matters in America.

9. Dahua expands in consumer surveillance; Motorola breaks into commercial surveillance: In February, FLIR Systems exited the consumer video space by selling Lorex and its SMB security products business to Dahua for $29 million. Together, these businesses – whose products are sold globally to both consumers and SMBs through various distribution channels – generated $140 million in revenue in 2017. In April, Motorola officially entered the video surveillance market when it finalized its acquisition of Avigilon.

10. Arecont files for Chapter 11, gets acquired by Costar: In yet another major reorganization from 2018, megapixel camera pioneer Arecont Vision in May filed for Chapter 11 bankruptcy protection as part of an effort to restructure the company and reorganize and clear debt from their balance sheet. The company was later acquired by Costar, makers of the CohuHD, Innotech and IVS Imaging brands, and renamed Arecont Vision Costar. To read more about how the company weathered the storm, read our recent Q&A with Arecont Vision Costar President Raul Calderon.

Joel Griffin is the Editor-in-Chief of SecurityInfoWatch.com and a veteran security journalist. You can reach him at [email protected].

2018 Year in Review: The 10 most read stories of 2018

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