8.14.23 – SSI – Bob Archer -DALLAS
Data released by Parks Associates provides the market with the latest information from both the business and homeowner perspectives.
Recently the research firm Parks Associates released its 10th annual Security Dealer Perspectives: Views from the Front Line survey results.
The well-known research company’s nationwide survey of installers/dealers who install security systems, including both owners and those employed by security firms conducted the study at the end of 2022, and the results of the data reveal that one-third of owners of a security dealer firm have considered selling their business, although 42% have no succession plan.
The newly announced research quantifies the dealers’ view of the security market with data compared across multiple surveys, and it analyzes competitive pressures, industry conditions and new trends, including the addition of smart home and interactive technologies.
“2022 was a difficult year for home sales after several boom years, and the years to come will be challenging for the housing market,” comments Elizabeth Parks, president and CMO, Parks Associates.
“Between inflation, increased home prices, rising mortgage rates, and general uncertainty over the health and direction of the economy, consumers are pulling back on spending and buying homes.”
Economic Impact on Security Industry Dealers
Parks Associates’ research of 10,000 internet households also found that 23% of home security system owners acquired their system by moving into a home where it was already present. Moving is among the highest triggers to purchase, alongside heads of household who are starting a family.
“A decline in the housing market is bad news for security providers. In response, many security dealers focus on reviving or increasing their sales to commercial environments, or they are looking to set the business up for sale,” adds Parks.
“To thrive, dealers must avoid high attrition, increase fees as possible, and seek additional revenue sources.”